You
might not have heard of “Proceeds,” but it’s some of the best news to come to Buffalo Niagara in years.
Moving
forward, the “proceeds” from the sale of unallocated/unused EP/RP hydropower
from the Niagara Power Project will be dedicated
for economic development use within 30 miles radius of the Lewiston plant. Previously, those funds were used by the New
York Power Authority (NYPA) for discretionary projects all across New York
State. Funding decisions will be made by
a five-member WNY Power Allocations Board, with at least three of the five members
residing in the same 30 mile radius
How big of a deal is this? In addition to the ~$7 million each year, nearly $15 million is already sitting in
escrow awaiting use. This cash comes at
a time when most economic development tools (even REDC funds) are non-cash, and
there are few restrictions for using Proceeds money - funds are available to
private businesses for physical expansion, capital expenses, innovation, and R&D.
Getting here wasn’t easy. The Partnership’s efforts on
Proceeds go all the way back to 2001, when the concept was first conceived, as
part of the our NOW campaign. The
initial legislation was drafted in 2008; a 2010 bill passed the State Assembly
and Senate, and signed into law by Gov. Paterson, but was ultimately held up by
technical issues and NYPA’s former CEO.
In 2011, a bill passed the Senate, but died in the Assembly at the end
of the session. This spring, Proceeds
was finally included in the 2012-13 enacted budget.
The
Partnership organized and led a team of subject matter experts (that’s our “expertise@work”)
who worked together over multiple years.
The core group included private sector volunteers- led by Dennis Elsenbeck of National Grid, our staff-
led by AJ Wright & Hadley Horrigan, and consultants- led
by Rich Tobe, Paul Tokasz and Mark
Meyerhofer. Dennis Gabryszak was the initial legislative sponsor and continuing
champion of Proceeds, and George Maziarz,
Governors Cuomo and Paterson, the WNY Advisory Group, and Reps. Higgins and Hochul all played
important roles in seeing Proceeds through.
What did we learn?
Perseverance and expertise count
in economic development. Facing numerous
setbacks, our team stuck together to reach a long-term victory. And the dividends are huge.
