Spitzer appointees reviewing Empire Zones, Javits Center deals

BYLINE: By MICHAEL GORMLEY, Associated Press Writer

DATELINE: ALBANY N.Y.

The economic revival point men appointed by Gov. Eliot Spitzer are reviewing Pataki-era aid packages to businesses as well as the planned $1.8 billion Javits Center expansion in Manhattan.

Spitzer's economic development chiefs said 30 percent of job creation and retention targets weren't met by companies that received state economic development assistance.

"If there's an indication of abuse, we certainly would want to look at that," said Dan Gundersen, the upstate chairman of the Empire State Development Corp.

"I think we are primarily looking at it to learn from the past," said Pat Foye, the downstate chairman of the economic development agency. "As I understand it, about 70 percent of job commitments have been reached. We're verifying that number. But it's really a question of learning and to be able to go forward to get the highest return from the dollars that taxpayers entrust in us."

During his campaign for governor, Spitzer criticized Gov. George Pataki's economic development effort as too often providing tax breaks and aid to politically connected businesses that didn't create enough jobs.

But while the agency under Spitzer is reviewing all of its current economic development projects, Foye and Gundersen said the objective isn't to recover aid provided to companies that failed to meet job commitments.

"While jobs are important, jobs alone are not the only indicator of the successful use of the assistance we provide to companies," said the agency's spokesman, Errol Cockfield.

E.J. McMahon of the Empire Center for New York State Policy agrees job creation isn't the only or best measure.

"It shows how complicated this is and why I think Foye and Gundersen were so careful in answering that question," McMahon said. "I don't blame them, because I think as they reconsider the way they do business, they have to reconsider the use of jobs, per se, or employment as the main measure, only because it fluctuates ... but 'jobs' is the politically tangible tool."

Foye is also reviewing the massive Javits project.

Last year, before Spitzer was elected, Pataki and Republican Mayor Michael Bloomberg agreed on a $1.8 billion project to expand and improve the 20-year-old Jacob K. Javits Center, which covers five midtown blocks in Manhattan. The project would increase exhibition and meeting space from 790,000 square feet to more than 1.3 million square feet. The plan also calls for a new hotel and loading facility.

"We're taking a serious look at it," Foye said, denying the project was being reconsidered. "What we're doing is getting our arms around an incredibly important project that involves the expenditure of $1.8 billion and is an incredibly important economic engine for the city and the state. Frankly, it would be irresponsible to do anything different."

The issues came up in a legislative budget hearing.

"It's the right thing to do," said Assemblyman Richard Brodsky, a Westchester Democrat. "We will be doing all we can to support them."

Brodsky, who had been critical of Pataki-era jobs programs, also pushed Foye and Gundersen to review employment promises of businesses that received aid.

"We should be recovering money from welfare cheats, whether they are individuals or corporations," Brodsky said.

A Pataki spokesman didn't immediately respond to a request for comment.