NORWICH – Uncertainty surrounding New York’s Empire Development Zone program is damaging its reputation with site selectors and companies that might otherwise look favorably upon Chenango County.
Commerce Chenango President Maureen Carpenter said her agency continues to work with new businesses that may be eligible to apply for the program’s benefits, but, to date, the EDZ has changed so much that its fate is “in limbo,” she said.
Already the 17-page long application process is confusing and filled with caveats. And the program is expected to sunset on June 30. State economic development officials say they plan to create a replacement program, but nothing officially has been announced.
“One thing is clear,” Carpenter wrote in the not-for-profit agency’s annual report. “Chenango County and New York State need an economic development incentive program in order to compete with the 48 states that rank lower than ours in terms of the cost of doing business. In addition to costing less, most states also have economic development incentive programs – rendering some business environments nearly tax free.”
Another thing is clear: the money for administering the program locally is getting very tight. The 41 businesses in Chenango County (see sidebar) that are zoned to receive potential tax exemptions and other benefits will be grandfathered in after June, and some may need administrative assistance from Commerce Chenango for up to 10 years. Not all have claimed tax credits over the years, and not all will demonstrate the necessary investment and job growth required to receive the benefits, but Commerce Chenango is required to do annual reporting for them regardless.
Commerce Chenango has lost Empire Zone administrative funding. In addition, an agreement between the City of Norwich and the towns of Norwich and North Norwich that provides $50,000 to the program annually will most likely end after June.
In her annual report before the board on Feb. 8, Carpenter said Commerce Chenango was “struggling” as a result.
“I can’t say we will be able to administer the program after June. We are looking for other alternatives, possibly a loan. We still have to have an economic development person on staff that the program provided money for,” she said.
Commerce Chenango Economic Development Specialist Jennifer Tavares also serves other businesses, not just those in the Empire Zone boundaries nor just members of the Chamber, Carpenter pointed out.
“Jennifer serves every business, not just Chamber members, including all tourism, all businesses and potential businesses in the county. All of our services are offered to all. Businesses are not required to be a Chamber member to receive our services,” she said.
Carpenter reported that the agency assisted more than 80 existing business clients in 2009, representing more than 2,200 Chenango County jobs that were created or retained. In addition, of 17 prospective companies served, three were realized, resulting in 58 jobs to be created or retained. Two remaining prospects could results in 325 jobs, according to her report.
After the Commerce Chenango executive’s presentation to the board last Monday, Town of Preston Supervisor Peter C. Flanagan asked what the funding outlook for the agency would be, whether the county would be asked to support it again and for how long. Chenango County already authorized an increase in its annual contribution for administering the Greater Norwich Empire Zone this year.
“I know you don’t have a crystal ball, but how does funding look?” he asked. The Preston supervisor is not a fan of the Empire Zone program, and has repeatedly requested “more accountability” from Commerce Chenango.
Carpenter said she was “under the assumption” that no money would be coming in from the state nor the Greater Norwich Empire Zone program.
Finance Committee Vice-Chairman Dennis Brown, D-Pharsalia, said the county was committed to picking up the slack.
“We were told at the beginning of this whole program that there would be costs if the whole process failed. We are committed to pay it, if the state backs out,” he said.
Flanagan said his fundamental disapproval with Commerce Chenango’s budget reporting is that it doesn’t include the amount of exemptions given to businesses.
“All of our departments’ annual budgets have to provide for all exemptions. We (the county) contribute to economic development and forgive a lot of taxation. Those (businesses) who don’t have the exemptions, continue to support those that do,” he said.
During her speech, Carpenter repeated multiple times that supervisors who have specific questions or concerns should “pick up the phone and call me.”

Empire Development Zone companies:
Bytheway Publishing Services
Norwich Aero Products, Inc.
Sureseal Corp.
Electron Coil, Inc.
The Norwich and Sidney Pennysaver
Circulars Unlimited
Snyder Communications Corp. d/b/a The Evening Sun
Bigelow’s Pharmacy, Inc. d/b/a Service Pharmacy
Unison Industries, Inc.
Norwich Manufacturing
Chenango County Council of the Arts
Ameritek, LLC
Sun Printing, Inc.
Advanced Stores Company, Inc.
Price Chopper Operating Co., Inc.
Norwich Pharmaceuticals, Inc.
The Label Gallery, Inc.
Northeast Classic Car Museum
Westcott 2, LLC
Westcott 4, LLC
Hayes Office Products, Inc.
Cook Building, LLC
Drs. Todd & Warski
NBT Bancorp, Inc.
NBT Bank, NA
Gladding Braided Products
Golden Artist Colors, Inc.
Dodgeland, LLC d/b/a Norwich Dodge Chrysler Jeep
Mayhood’s Sporting Goods
Conklin Fashions
The Raymond Corporation
James Metz Photos
Kerry Biofunctional Ingredients Corp.
MBM Holding Company
Meeting Management Associates, Inc.
Commercial Displays & Design
CZ-USA, Inc. d/b/a Dan Wesson Firearms
Agro-Farma, Inc.
Who’s We, LLC
Chenango Union Printing
McLaughlin’s Department Store of Norwich, Inc.