"We need to invest in the City of Syracuse and make it a place that county residents are proud to be affiliated with, a place that can attract new businesses because it offers a superb quality of life and a place that keeps recent college graduates with opportunities to build a career and a family. We need to create a city with a high quality of life for all who live in it….Rebuilding the quality of life in the city will have a direct effect on the economic prosperity of the region."
Onondaga County Citizens League, Report 20, 1999.
Introduction
Economic development is that set of activities designed to maintain, enhance and grow the underpinnings of a region’s economy for the benefit of its residents. The important characteristic to note is "region" – economic activity takes place within a "region." Our "region," or Metropolitan Statistical Area (MSA), includes four counties: Onondaga, Oswego, Madison and Cayuga.
The underpinnings of a region’s economy include its transportation system, its natural resource accessibility, the nature and quality of its workforce, the taxation structure and the system for financing public infrastructure.
The purpose of economic development is to keep the business and industry that is currently in a region, enhance those when possible and grow new business and industry outlets. Successful economic development programs increase the economic activity of the region and enhance the quality of life for its residents. Economic development programs accomplish their objectives by bringing resources into the region.
Background
The demographics of the Central New York region have changed dramatically over the past decade.
Population
Like many other large central cities nationwide, the City has experienced a declining population since 1960. The County's population peaked in 1970 and has remained below that level since that time. The Syracuse MSA has increased steadily since 1960, reflecting the migration of the urban population to the outer suburbs.
POPULATION TRENDS 1960-1998
MSA (a) |
||||
(a) Population data revised to reflect the addition of Cayuga County to the Syracuse MSA.
The following table shows that households in the City declined by about 4% between 1970 and 1990. Conversely, the rate of growth for households in the County and the Syracuse MSA, during this period of time was approximately double the rate of the entire State.
COMPARATIVE HOUSEHOLD GROWTH
1970-1980 |
||||||
| City |
67,671
|
66,961
|
65,046
|
(2,625)
|
(1.0)%
|
(2.9)%
|
| County |
145,322
|
165,677
|
177,950
|
32,628
|
14.0
|
7.4
|
| Syracuse MSA |
192,242
|
223,720
|
243,972
|
51,730
|
16.4
|
9.1
|
| State |
5,913,861
|
6,340,429
|
6,634,434
|
720,573
|
7.2
|
4.6
|
Income
The following table shows the median income of families in 1990.
MEDIAN INCOME OF FAMILIES – 1990
| City |
$28,012
|
44.8%
|
36.1%
|
13.1%
|
3.7%
|
2.3%
|
| County |
38,816
|
26.9
|
39.4
|
21.9
|
7.1
|
4.7
|
| State |
39,741
|
29.3
|
33.5
|
20.2
|
8.6
|
8.4
|
Employment
The following two tables provide information about the labor force in the City and the Syracuse MSA, respectively, while the third table provides comparative unemployment information.
EMPLOYED CIVILIAN LABOR FORCE (a)
| City |
69,806
|
69,156
|
69,197
|
(0.9)%
|
0.1%
|
| County |
226,616
|
224,506
|
224,638
|
(0.9)
|
0.1
|
| State |
7,985,000
|
8,099,983
|
8,423,843
|
1.4
|
4.0
|
(a) Annual averages.
ANNUAL AVERAGE NON-AGRICULTURAL EMPLOYMENT
SYRACUSE MSA 1994, 1995 AND 1999
(000's) (a)
1995-1999 |
||||
| Total Non-Agricultural Employment |
330.7
|
332.1
|
351.6
|
5.9%
|
| Manufacturing: |
48.7
|
49.2
|
51.9
|
5.5
|
| Durable Goods |
33.4
|
33.8
|
36.6
|
8.1
|
| Non-Durable Goods |
15.3
|
15.4
|
15.3
|
(0.6)
|
| Construction & Mining |
14.0
|
12.9
|
15.2
|
17.8
|
| Transp., Comm. & Public Utility |
19.2
|
18.9
|
20.7
|
9.5
|
| Wholesale & Retail Trade |
77.3
|
78.3
|
80.6
|
2.9
|
| Finance, Ins. & Real Estate |
19.3
|
18.3
|
18.4
|
0.5
|
| Services |
92.2
|
94.5
|
103.8
|
9.8
|
| Government |
60.0
|
59.9
|
61.0
|
1.8
|
(a) Due to rounding, detail may not add to totals.
AVERAGE UNEMPLOYMENT RATES
| 1990 |
4.3%
|
3.4%
|
4.1%
|
5.2%
|
5.5%
|
| 1991 |
6.9
|
5.6
|
6.6
|
7.2
|
6.7
|
| 1992 |
7.5
|
6.1
|
6.9
|
8.5
|
7.4
|
| 1993 |
8.5
|
5.4
|
6.0
|
7.7
|
6.8
|
| 1994 |
8.0
|
5.0
|
5.8
|
6.9
|
5.1
|
| 1995 |
7.4
|
4.6
|
5.5
|
6.3
|
5.6
|
| 1996 |
6.6
|
4.1
|
4.8
|
6.2
|
5.4
|
| 1997 |
6.2
|
3.9
|
4.7
|
6.4
|
4.9
|
| 1998 |
5.5
|
3.4
|
4.1
|
5.6
|
4.5
|
| 1999 |
5.6
|
3.5
|
4.3
|
5.2
|
4.2
|
| June 2000 |
5.2
|
3.2
|
3.7
|
4.3
|
4.2
|
This data is important because it sets the climate for economic development activities including business and workforce development.
Many public and private organizations are involved in economic development activities. In the past, many observers have criticized this situation as inefficient and ineffective. There is some duplication, and there are some counter-productive projects working at cross-purposes. But economic development is selling the region to prospective businesses. The more contacts that are being made in more areas, the greater the likelihood that the successful sale will be made. The Lewis Administration believes that the existence of many organizations can be a strength.
The Mayor must assess how the City can most effectively advance economic development. I believe that the City’s direct role in economic development is limited by the problems that face regional development objectives and the resources that the City can commit to the process. Development, economic or otherwise, that directly impacts neighborhoods, residents, and local business is the responsibility of the City. Economic development at the regional level is the prerogative of the County with the City as an active partner.
Problem Identification
Economic development is limited by several internal factors. One is the lack of "development ready" facilities. The City has many vacant commercial buildings, but none of them are ready for business use in our high-tech environment. The structures lack the modern wiring and conveniences necessary for incubating new businesses.
For buildings located in the Central Business District, parking is a major barrier. Parking spaces cost more than $500 per car per year in downtown parking garages. This is an added burden that employers must bear either directly or indirectly. It makes downtown commercial space more expensive and less attractive than space available in suburban office parks.
Several external barriers limit economic development. The effects of partisan political action have been obvious. We have all seen firsthand how some areas of the State are rewarded for having a powerful representative in Albany or Washington. However, when partisan politics does present a barrier for improving the quality of life for city or county residents, then local leadership is required to minimize or eliminate those barriers.
The same can be said of the traditional City-County rivalry that citizens have tolerated for years. In 1960, 51% of the County’s people lived in the City of Syracuse. Today, 32% of the County’s population lives in the City of Syracuse. Historically, the City played the predominant role in economic development. The responsibility for economic development fell to the City because it was the predominant government in the region. Today, County government is predominant. The responsibility and resources for economic development should reside with the County.
Resources are wasted by government itself. Developing a commercial project in the City requires a lengthy and frustrating journey through a bureaucracy designed to regulate and limit development. As Project Manager for the Valley Vista, Harrison House and Madison Manor residential developments in the City of Syracuse, I personally encountered the frustration of dealing with the regulatory agencies of the City many years ago. Today, I have been told that efforts at downtown residential development have been hampered by the same system that is clearly "developer unfriendly."
Economic development is also limited by the lack of available workforce in mid-range skilled occupations. The New York State Department of Labor claims that many jobs locally are unfilled. At the same time, many people are unemployed lacking the skills and personal work ethic required for employment.
Economic development resources of all types have become very scarce in our region. The wasteful practices that result from the kind of activity described above are no longer tolerable. Squandering resources will lead to the economic demise of the region. The City, which is in economic decline, will only suffer more of the same. This means that, in the not too distant future, the City will very likely cease to exist as we know it today unless
strategic changes are made immediately.
Objectives
The economic development policy of the Lewis Administration has two objectives:
- To improve the way in which economic development activity is administered.
- To foster business and workforce development.
Methods for Achievement
To accomplish these objectives, my administration will:
Participate actively in a forum to coordinate economic development strategies in the region
The Greater Syracuse Economic Growth Council should become the Region’s organizational focus for coordinating, developing and implementing economic policy for the City and County. The Council, organized by the Chamber of Commerce and Onondaga County in 1996, brings together organizations that are either directly or indirectly involved in economic development. The Metropolitan Development Association, the Manufacturers’ Association of Central New York, and more than 20 other stakeholder organizations participate with the City in the Council. The only major constituency missing from the Council’s roster is organized labor.
The Greater Syracuse Economic Growth Council has established itself as a vehicle for coordinating major economic development proposals for the Region as well as serving as the clearinghouse. This coordinated approach to economic development will result in the efficient use of city and county resources and an improvement in the economic success for the region that can be confirmed through the documentation of the appropriate economic indicators.
Formally adopt the MDA Vision 2010 Plan
In 1999, the Metropolitan Development Association developed an ambitious plan to guide economic development activities in the region. The Vision 2010 Plan outlines specific strategies for achieving measurable goals in the next ten years and establishes targets for future economic growth. In a report prepared by the Onondaga Citizens’ League, it was stated that, "The City and County should formally adopt the 2010 Plan. Hearings should be held to obtain additional input including the incorporation of FOCUS and TNT objectives." The Lewis Administration will present the 2010 Plan to the Common Council for consideration and will encourage public participation in setting goals for economic development.
Transfer responsibility for economic development to the County
My Administration will request that the Greater Syracuse Economic Growth Council work with the City and the County to explore the steps necessary to transfer the economic development activity of the City to the County. The City has two economic development agencies, the Syracuse Industrial Development Agency and the Syracuse Economic Development Corporation. Both have many individual projects and a mixture of assets .... and liabilities. As Mayor, I would ask for recommendations to strengthen the economic development strategy of the region by clarifying the organizational responsibility of the City.
If the Growth Council agrees to assist the City and the County, I would propose that they add representation from organized labor.
Realign the management of economic development projects
I will initiate discussions with the County Executive to determine which entity—the City or the County—should be managing the following resources:
- [a] The Syracuse Hancock International Airport
- [b] The parking garages within the Central Business District
- [c] The Syracuse Crescent as described in the Section on Downtown, and
- [d] The development of a joint venture private foundation.
Syracuse Hancock International Airport
The airport is a regional resource and should be managed as such. The City has not maintained a competitive airfare environment or access to airline options in recent years. Some part of the problem has to do with the regional economy and the capacity of business to support the airlines; however, a portion of the problem also has to do with the City’s management of the resource. The County or a County/City joint venture may achieve different results. A discussion and subsequent analysis must occur soon.
Downtown Parking Garages
The parking garages within the City’s limits are also regional resources used by city residents, county residents and people who reside throughout the Central New York region. The garages were initially developed to promote regional economic development projects. Due to a variety of factors, they have never achieved their economic potential. They are in fact operating at a loss of over $4 million annually. In addition, the parking system is simply beyond the city’s management capabilities at this time. Before the assets deteriorate further, the County should be challenged to determine whether it is capable of managing those assets in a more productive way.
Joint Venture Public Benefit Corporation
My Administration will propose forming a City/County public benefit corporation. The corporation would be organized as a not-for-profit, tax-exempt entity. The purpose of the corporation would be to attract private philanthropy for the economic development of various economic system components within the region. The foundation would create a professional, business-like approach to leveraging the City’s and the County’s assets. The general model for this type of entity is the Empire State Development Corporation.
Participate in economic development functions
Even though the primary responsibility for economic development activity will be transferred to the County, the City will still have a vital role in promoting business development. The impact of my Administration will be felt in the following areas:
- Education and Workforce Development
Workforce development is a long-term component. The number of students continuing on the Career Path Programs will be a clear indicator of success. The details of this approach are spelled out in the section on Youth Development. Having workers available who have a healthy work ethic and appropriate training is a powerful incentive for a business considering relocating to the region. Educational performance of the City’s high schools provides a measurement of success. As the dropout rate declines and achievement levels increase, prospective employers can be assured that an effective workforce will be available in future years.
The City School District spends over $5 million annually on adult education. These educational resources should be connected by establishing a "Life Link" career path planning system. Links should be created and/or strengthened between the City School District, Onondaga Community College, the Job Training Program Administration, the Regional Learning Service, private institutions such as Bryant & Stratton, and other local institutions of higher learning.
- Neighborhoods and Housing
The City can also promote business development by providing low-cost housing in attractive neighborhoods. As described in the section on Housing, my primary goal for the City is to create neighborhoods where young families choose to live. The cost of housing is a factor in determining stable wage structures. The fact that the City has a surplus of housing units can work to the advantage of economic development if that surplus is effectively linked to job creation.
- Re-Use of Existing Structures
The City has many commercial structures that have become uneconomic as a result of changes in industrial production methods. If it is consistent with the economic development strategy established by the Economic Growth Council, the City may be able to prepare blighted buildings, especially landmark and historic buildings, for preservation and re-use. Some of this work might be performed through an existing not-for-profit corporation or through the joint venture public benefit corporation described above. The construction work would create a source of jobs and job-training opportunities. Funding could be provided from social service income maintenance and job training programs, as well as from economic development sources. Such a combination would accomplish several goals simultaneously.
- Business-Friendly Regulatory Agencies and Incentives
When the City’s economic development office is metropolitanized, the City’s involvement in marketing efforts would be in response to the direction set by the County or its metropolitan agency. When a prospect is identified for a site located within the City, my Administration will cooperate in working with the Common Council to provide all available economic incentives.
The City plays a role in economic development when prospective businesses locate on property in the City. A major problem exists with the permitting and regulatory functions in City government, as described in the section on Downtown redevelopment. Upon taking office, I would immediately reorganize the City’s permit procedure. Any prospective developer will have one single contact point, a staff person reporting directly to the Mayor’s office, who is charged with bringing the development proposal through the City’s approval process. My goal will be to welcome developers and new business enterprises.
- Removal of tax and finance disincentives
As Mayor, I will support two changes that will initially lessen city revenue, but will overall enhance the City’s economic strength through new business development. First, I will redirect the mission of the Assessment Office. The Assessment Commissioner will be responsible for maintaining assessment rolls based on current market values without regard to the impact of adjustments on City revenues. Secondly, I will move to wean the City off parking meter and parking ticket revenues. Both are counterproductive and outdated in the current market. They create a major disincentive to business development in the City. By addressing them, we can increase revenue.
- Quality of Life
The City promotes business development by maintaining a vibrant core community at the heart of the region. The City must be alive with activity and welcoming venues when prospective customers contact the City. The massive cleanup described in the Downtown Redevelopment section will have an impact on achieving this goal.
- Reputation for Modern, Urban Government
Another effective action that will be taken by the City is to cooperate with the County in creating a model urban government. By creating a City where young families are sinking roots in urban neighborhoods, we will put Syracuse on the map. My Administration will be able to assure prospective and current businesses that the hard-earned dollars that they pay in taxes will be generating an effective return. Lower housing costs in desirable neighborhoods will lower the cost of attracting and retaining qualified staff. A successful education program will give employers confidence that a qualified workforce will be available.
- Contact Point for Development
The City of Syracuse provides a powerful marketing tool. Even though the City will not be directly involved in the day-to-day economic development function, the Mayor will play an important role in representing the region to the external world. The City of Syracuse has a national identity. The Mayor can gain access to important decision-makers in promoting the economic development strategy of the region. In addition, the Mayor can be an effective host for entertaining visiting prospects as part of the County’s economic development team.