Open Letter to NYS Empire State Development
Closed-system decisions on taxpayer money and how to better think about the CNY economy.
This letter was sent to Howard Zemsky (and the article author) in response to an article written by Tim Knauss about the new Film Hub located in Syracuse.
Tim,
Great article today on the “film hub” project that’s been sitting dormant, unoccupied since it opened.
I hope it’s ok, but I wanted to offer some personal insights and suggestions for ESD.
- This project started with no demand, and no supply. From an economics standpoint, it’s very difficult to understand how it could have gotten through due diligence to the point of assigning $15M of taxpayer money to it. See below about decisions happening in a well-connected, closed-system.
- When I came back in 2009 from Boston (I’m from the Syracuse area originally), I was excited about the opportunities that might be available in a city that had room to grow. I was excited to contribute. What I quickly learned was that innovation was almost completely stifled, largely due to closed-system, often government-led “initiatives” that are inefficient and self-centered, and well-connected groups that have no problem spending and then wasting money to recreate wheels that already exist.
- Example 1: My understanding is that no one on this project visited (really visited) SU campus, or strolled through the Newhouse School — asked a few questions. In my opinion, that would have been a great start. There, you would have seen an already remarkable facility, global leaders in the film space, and, at a minimum, a well-informed set of feedback that could be used as guidance. How many other people weren’t consulted?
- Examples 2: Didn’t we already go through this with the Center for Excellence? It’s close to impossible to build something, release a mission statement and think people are going to show up for work. Nothing works this way. Yet we keep doing it.
- On that note, how did the group responsible for this project envision revenues being generated? Jobs created? Did they line these projections up before they spent $15m? Was there a business plan in place for all of these goals? Or were they operating on “hope” and a handshake?
- I’ve spoken to several people who were at the “Grand Opening” and one of the most telling descriptors I heard used was “eerie”. To me, this says (really) bad planning and, more seriously, someone’s being taken for a ride. Where were the set of brakes? This is baffling to me, especially when it keeps happening.
This city doesn’t need a film hub that’s built on hope and a handshake behind closed doors. This city doesn’t need inefficient government money that gets handed out by and to a select few and can’t get accessed by 95% of the people trying to do real things.
[Sidenote: when 95% of the people try to access this money, they’re asked for things like business plans, projections, economic impact…and then we have to fight tooth-and-nail to have anything land, and many of us haven’t after repeated efforts….. I find it hard to believe these things were truly researched and on the table during the approval part of this project. Please walk the walk].
Last summer, I acquired a large, decade-old brand out of Silicon Valley (Women 2.0). I could have left it there, but I wanted the address to be here. I wanted what that brand was and will be to make our region a better place. But I haven’t thought once about going to the government for anything, because I know it either won’t come, won’t be valuable, or will come with too many strings attached.
Think about the people out there who are really making money, creating jobs, driving the economy and changing the city. It’s not the group that makes big, empty buildings multiple times over. It’s not the group that convenes “community brainstorming sessions” and proceeds to do nothing with the feedback they received from a room full of the city’s movers and shakers (I’ve been to my fair share of these…I was warned at my first one that this would happen, but didn’t want to believe it. It ended up being true.)
Can you imagine what would have happened if you took that $15m, split it up 15 ways and instead gave it to 15 of those movers or shakers?
- Eric Hinman has already started to change the face of downtown — visibly, economically and emotionally. Imagine what he could do with a $1m? ENERGY.
- Sean Branagan has a number of things going on (always!), not least of which involves a national competition for student-run startups, that’s quickly gaining international attention. Imagine what he could do with $1m? INNOVATION.
- Chris Fowler has intensely worked on making our community a self-focused and self-sustainable one, therefore making us self-loving. Imagine what he could do with $1m? PRIDE.
- Chedy Hampson has already built an economic bull from scratch that’s one of the best employers in the country, and has remarkable diversity stats and an amazing story. Imagine what he could do with $1m? RECOGNITION.
- Mitchell Patterson and Doug Crescenzi built an awesome Hackathon for Upstate (we need more of this!) and have spent countless hours trying to breath life into the tech scene here (and are both building awesome new things now). Imagine what they could do with $1m? IDEAS.
- There’s a remarkable agro-tourism business brewing in Cazenovia, with some amazingly motivated people behind it. Imagine what they could do with $1m? HERITAGE.
- I won’t be shy. I brought a major Silicon Valley brand here with the intent to grow it and impact the local economy as it gets bigger….It’s bringing in outside money and has a global presence. Imagine what I could do with $1m? STRENGTH.
- Did someone say craft beer? I know a guy… and I can imagine what he could do with $1m. BEER (enough said!).
I could go on, and easily fill up the rest of those 15 spots.
The end result?
MUCH MORE REVENUE GENERATION AND JOB CREATION POTENTIAL than that film hub could dream of, and no empty building on your hands. Now….. now there’s nothing. Nothing but more work.
As a taxpayer, I want our sweat fed into things that will really drive long-term economic growth and jobs. That will put us on the map in multiple ways. That will open doors….. Especially if the alternative is a $15m sunk cost and a building with no lights on.
The powers that be need to stop wasting time. Think. Wake up to what’s happening outside the walls of your department, outside the walls of Albany. TALK to people and commit to LISTENING to them. Understand where the value is, where the economic potential really is. People messed up this time around, and they messed up many other times before. Rethink what you’re doing. Rethink how you’re doing it.
As for that building? Make it an innovation hub. Put those people I mentioned above (and more) in that building. Give them no-strings-attached funding and let them make our next economy.
Cheers,
Kate
PS By all means, forward this along to Governor Cuomo. I didn’t have his email address :-)
