Crains New York - June 3, 2013 - (Page 11)

KATHRYN WYLDE AND STUART APPELBAUM Bring our airports into the 21st century O ur two organizations represent constituencies— business and labor—that have often been at odds. But we have joined together on the board of a new airport improvement advocacy group— the Global Gateway Alliance,founded by Joe Sitt of Thor Equities—because our region’s airports have gone from first to worst. Returning New York City’s airports to pre-eminence starts with modern terminals, a higher priority from the Federal Aviation Administration on delay-reduction policies,and better customer service. The terminal experience is the first and last impression travelers have of our region, and right now they could be forgiven for believing it is the 1960s. The Port Authority is spending billions and partnering with the airlines to overhaul four major terminals, but these are multiyear, multigovernor projects that need advocacy to make sure they don’t lose out when tough budget choices are made. In addition, these are only four of 14 terminals at the three major airports. The public-private partnership being undertaken to redevelop LaGuardia’s Central Terminal should be replicated to modernize the remaining major terminals. Second, NextGen, the GPS-style air-traffic technology that is finally starting to replace the 1950s radar blips,should be deployed first at New York-area airports, where delays are the worst and have a cascading effect on air traffic nationwide.Continuing delays would cost our region $79 billion in lost productivity and wages by 2025, a study by the Partnership for New York City has found. But so far, the FAA won’t commit. We all must speak up—loudly—and get the agency to do the smart thing before it makes a bad decision that has consequences for decades. Third, everyone responsible for airport operations has to provide SUNY tax-free zones flunk the history test G ov. Andrew Cuomo and anyone who is anybody in his administration spent last week rushing around the state to sell his Tax-Free NY plan for State University of New York campuses to boost the downtrodden state economy. It seems like a no-brainer. Upstate needs help. SUNY campuses are the key economic force in many communities. Offering a 10-year exemption from all state and local taxes for companies that expand at the campuses will create economic activity and diversify the economy. Right? Plus, the main opponent to the plan—the state Civil Service Employees union—is suspect because it is mostly trying to block it in retribution for Mr. Cuomo’s hard line in negotiations. As with so many things with the governor these days, there is a much different tale to be told here. Let’s start with the amount of money New York state spends on economic development, broadly defined. It’s about $7 billion annually, reports the Citizens Budget Commission, a figure that was increased by hundreds of millions of dollars in the just-approved budget. That’s a lot of money any way you count it. Worse, says the business-backed group, there are simply no data to GREG DAVID show that the money actually produces anything. Even the competitive contest in which regional economic councils hand out $150 million in grants is completely subjective. It will be the same story with much better customer service. Departing travelers cope with inadequate signs, few customer-service agents, time-consuming screening and frequently incorrect flight-delay information at the gates. Overseas passengers suffer interminable lines at customs, and all arriving travelers encounter difficult-to-decipher signs, long waits in depressing baggage-claim areas, taxi hustlers and arduous mass-transit commutes or long taxi lines for expensive rides. This is the customer experience of a Third World economy, not the world’s leading metropolis and, for many, the gateway to the United States. So many measures should be taken to improve airport services, starting with simple fixes like better signs and private-sector-led customer-service training for TSA agents. We stand ready to assist. Building better airports is no easy task, and we appreciate that the Port Authority, airlines and federal government are making improvements. But it’s not enough. Without a full and sustained commitment from all stakeholders, the largest airport system in the country can’t become the vital transportation and commerce link we need to keep up with the economy of the 21st century. Kathryn Wylde is president of the Partnership for New York City. Stuart Appelbaum is president of the Retail, Wholesale and Department Store Union. these tax-free zones.The companies to be located in these zones must have some relationship to the university, although no one knows what that means. A so-far undefined council in Albany will rule on who qualifies and who doesn’t. This means the companies—and maybe the universities—will have to spend lots of money on politically connected lobbyists to maneuver them through the process. Politics will play a role—and probably a bigger one than a smaller one. By the way, history tells us these kinds of strategies don’t work. During the Pataki administration, the state created Empire Zones in supposedly depressed areas, with special tax breaks and incentives. The decisions on which areas were named Empire Zones were completely political. No area ever showed any real economic gains. They were eventually phased out when it became clear they had achieved virtually nothing. As Mr. Cuomo plans to run for a triumphant re-election (his object isn’t about winning, which is almost assured, but achieving some sort of universal acclaim), he knows that upstate voters are restive. He won’t allow fracking because it isn’t a clear political winner. Gambling will help some politically and economically. Tax-Free NY is good politics but not good economic development policy. To be fair, the governors who preceded Mr. Cuomo didn’t tackle the upstate problem, either. So far, he’s shown to be only a little better. June 3, 2013 | Crain’s New York Business | 11 http://www.mogil.com http://www.mogil.com

Table of Contents for the Digital Edition of Crains New York - June 3, 2013

Crains New York - June 3, 2013
IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
REAL ESTATE DEALS
OPINION
GREG DAVID
FOR THE RECORD
TOP ENTREPRENEURS
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE COFFEE
OUT AND ABOUT
SNAPS

Crains New York - June 3, 2013