Hood - Cuomo Q&A RAW.mp3


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Everybody knows commissioner. Howard Stansky from the parsed development corporation and commits commissioner Richard Ball State commissioner of agriculture. It's an exciting day. This is really a great development. For all of Western New York on a couple of levels it's a great job generator. This is a 200 million dollar investment by ago who would corporation. 500 construction jobs to build out and change this facility and then 230 permanent jobs. So in and of itself just this facility is great job generator. And then it helps us. Develop our dairy market which is so important especially in the frequently. People forget but the Finger Lakes is a great dairy production region. If it worse they it would produce more milk. Then. All but fourteen other states which is really unbelievable. On top of everything else that we have going on in the Finger Lakes and warm and beer industry is tourism that tactics are so. It's a good day all good news. And I wanna thank you commissioner of empires that development. Commission and commissioner bowl with the great work commitment to their reality. What's that things. So. It. Well. You know if you play baseball. When you get in the batter's box. You should. Assume. That not every pitch is thrown obvious right. Well that's negative. Consequence you know it's not it's the game. If you do economic development. You have to understand the reality of economic development. Which people who. Or in this business know. For every. Ten businesses that start. By the end of five years have Favre gone. By the time you get to ten years only affair or. That is the natural. Business cycle. That happens. You want to bring businesses to New York you wanna start paying businesses. Well then you better be ready at the end of five years to see a 50% drop off. And then be ready to re purpose those facilities it's better. This facility for example. Was originally designed and built by the Pepsi company. Not a small company. And Mueller which was a yogurt producer. That ventured did not work out. We have re purpose. The facility. Now for quoted. Which is actually going to spend more money on the facility and a 100000 square foot refrigeration. Unit. Another 500. Construction jobs. And then 230 permanent jobs. So would actually at the end of the day. Was sorry for what happened to Pepsi Mueller. But it's actually. A net positive for the region and for economic development so you want it and if you for the. I would say look gave the it it highlights how competitive. The industry is meaning that a company like. You learn Pepsi. There are no guarantees she got a lot of competition that every. Business venture works out. One of the reasons we do these width pixels are tax credits is. You know you get the tax credit if you perform. They only got us very small percentage of the tax credits originally announced because. You know they didn't the deal didn't play out and consequently. The only got a program a portion of the tax credits that was. So you know that's fair. But it highlights that there are no guarantees these industries are very competitive. But we you know have a ton of confidence obviously and hood mrs. extremely successful dairy company. We're thrilled that they're you know expanding there. Footprint in upstate New York is going to be great for dairy farmers and industry. Kind of milk here they're gonna invest 200 million dollars refocusing what was the over facility to mostly of fluid milk facility. So I think it's you know what that is all a lot of reasons to believe this will be successful. We got to you know huge consumer market with them just a few hundred miles of here. You've got a huge raw materials supply of no obviously in this region. I don't have all the elements of success in the company it's not a new venture for this company through very well established company if you're gonna Bennett any scary. Venture to succeed this would via. Normal. We don't want certain is really commissioners to report the way the excelsior tax credits work. Is. You only get the credit to the extent to perform so it's for the jobs that are created. For the period of time they are created. And once those jobs are not created then the state subsidies stops right. Which is. I think the most intelligent way to do. And then as I said you know look if Europe is gonna step into the batter's box expecting only to be. Pitch strikes. You know it's our car. And don't get in the batter's box if you wanted. Develop jobs in your going to partner with companies you have to expect some of those companies to fail. That is how the economy works and you're not going to the far right the overall outcome. Don't you talk about the way now what it would look you know. What they want them once you do best and can taxpayers be through it you know Wednesday him look like you made things in here and accounting maker. An investment knowing them. It's earning well. I'll let you let the commissioner addressed this but just think of this. The difference with the venture capital firm shorter answers yes. Would list the is bait does impart to them corporation. It's basically an investment banker for the State of New York. And every state is in the business. That's what you have to remember. If you don't attract code to come to New York some other state wanna attract put 3COM the next day. We have businesses in New York who you just get calls at their desk from other states. Come to mark stated we won't have you pay any taxes and we'll send the plane and we'll bring you and your wife for the week it is amazing the competition. So if you said. Well I'm not gonna try to do economic development. You would just be sitting there is a target for every other state and one by one they would pick off your company's. And in a relatively short period of time you'd be sitting here alone. Losing jobs losing people. Which is what happened to upstate New York right that was the story tips of upstate New York for four years. We learn the last. Get aggressive. Getting in the game lower taxes being pro business. Market upstate new Yorker has tremendous. Advantages. But when empire state development corporation does is basically what an investment bank would do. Look at the company owed is in good company doesn't fit will it work. But then the belt and suspenders is they get that credit only that the extent they perform. And when you stop producing a job. For the job it's terminated. The credit is terminated. And that's the safety mechanism. I mean. Look the dairy industry of its talk about this deal in particular anything about the spectrum of industries out there. On the one hand you've got relatively low risk industries I would consider fluid milk to be a pretty stable. You know we're not figuring out of consumers like no we're not you know breaking new ground in producing milk. So milk as a pretty low risk investment and the whole spectrum of things and on the other side you've got you know ship for apps. Or really you know next generation. Industry so. You know we do take some calculated risk I'd say this is very low on the scale of calculated risk. You know you would sleep very well at night thinking about the prospect of this plan going forward to produce milk. But in all cases we're dealing with the companies were dealing with their balance sheets we've got a lot of confidential information we're doing industry research. We're understanding you know the direction of the industry. The trajectory of the business they're competitive position and yet with all that there of course no guarantees as industry is extremely competitive but. To your point yes we're to a lot of due diligence on the businesses and the industry. And we deal with industries all across the state across a very wide spectrum this would be a low risk industry. We deal with some higher risk and followed. I don't like would be great look at those procedures before phone company in New York State resident. That's number avail bottom line is because it was. Red event ever on exactly. Yeah I mean we have I would consider I would say. Extraordinarily high return on investment in terms of the state dollars what the state does is it basically through these excels here tax credits. Really rolls. In that it's like six point 85%. Payroll tax and it rolls that back for the company in order to help them invest in the business so. We're putting in relatively small percent the leverages grade the statements and acts this is. You know seven million dollars paid investment over many years the company is investing 200 million dollars. Right from the get go. I mean calculate the return on that and mean. It's a no brainer. There you know when the state gets involved especially in deals like so. This is gonna pay great dividends that we don't even generally calculate the impact of indirect jobs and all the residences. Huge for the dairy farmers. It's huge for the whole footprint of the area industry. The returns are media. Fifteen million to bar the plan about a 150 million to read purpose. 250. Jobs that's more than was here. At the peak when it was you know you were so. Yup there's always reasons to be. Cautious and you know make sure we're doing our due diligence but certainly we are and I think in this and most every case it's. It's a good investment for the state house.