Community and Local Government Capacity Overview

Local government and community institutions are critical in developing “bottom-up” approaches to € 1
economic development. However, the Southern Tier varies tremendously in its communities’ capacity
to access resources, explore alternatives, and manage change. The effectiveness of the NYS ARC i
Program and its LDDs in a given community are highly: influenced ¢ by the administrative and local j
government setting within the region. |

The NYS Constitution guarantees "Home Rule” rights to local governments that are independent of |
state government.’ Four types of multi-purpose loge governments possess “Home Rule” authority: |
counties, cities, towns, ‘and villages, While NYS is Committed to preserving the'autonomy of these |
governments, it has been long recognized. that inter-municipal cooperation is a key to preserving
service capabilities while generating economies ‘of scale that increase government efficiency.

1 NYS Local Government Handbook, 6th Ed. Reprinted 2011; Chapter 4: Local Govetnment Home Rule Power, pp. 29-38,
available at: httpy/ww.dos state ny.us/\g/publications/Local_Government_Handbook. pdf

Seo E Appalachian New York i
Municipal i :

Type:
Counties* 62 : 6 i _ “1,066,421
Towns" 932 a: 835,812
Villages | 551°" v0" |. 183,505

Cities ‘

eee 61 2,235,187 12 230,608
NYC 1 8,175,133 a} =
Total 1,607 19,378,102 404- | 1,066,421

* Note! Counties are administrative municipalities that include cities, towns and villages, except in the case of NYC, which
is composed of 5 additional counties.

** Note: Villages are independent sub-units of towns: population figures for towns afe town-wide, inclusive of village
populations.

%#* Note: On 1/1/2012 the following villages were dissolved into their surrounding towns: Perrysburg, Randolph, East
Randolph, and Seneca Falls.

Source: NYS Office of the State Comptroller

The Local Government Environment

An important indicator of capacity building needs is the number and relative size of local governments in
the region. Roughly 25% of New York's 1,607 genera! purpose municipalities are located in Appalachian
NYS. (Table 2). While this matches the region’s portion of the state population, the Southern Tier

has a large number of relatively small governments, with part-timé leadership, and therefore fewer |
staffing and administrative resources to manage and support decision-making by local governing board
members, highlighting the need to continue capacity-building efforts across the region.

Each of the Southern Tier’s 404 general purpose municipal units of local government (comprising 14
counties, 268 towns, 110 villages and 12 cities) has varying “Home Rule” powers. In addition, the
local government picture includes various corporate entities that serve single purposes. Appalachian

18 Wt New York State Appalachian Region Development Plan 2011-2014


Map 20: Intermodal Connections Map; Airports, Highways and Rail Links

[ ; New York State’s ADHS Aviation Links

Ontario : v ae

‘Tratispéitation Resources ee

{6 connec Apert Irs Daslan Changes

4+ Moptaspat ene cn Pennsylvania

— fines pad Rt 918
am pes in 80449 ee

| fi
/ We Josey

° 2 50 100 hes take

and dependable access to worldwide suppliers and markets. All transportation networks including

highways, rail systems, inland waterways, aviation, local roads and transit systems, aré potential
resources to facilitate regional commerce.

Although the conversion of NYS Route 17 to I-86 greatly improved regional mobility and the
attractiveness of the Southern Tier for commercial purposes, further transportation enharicements
are needed to fully leverage the ADHS improvernénts, These include the improvement Of north-
south highways, such as NYS Route 60 and U.S. Rotite 219, to better connéct 16 I-90 and the Buffalo
region. Local roads and bridges are also integral to fobility within the region t6 foster iftlustrial
growth and tourism and provide residents with access to services. While mariy of the region’s bridges
and roads are in working condition, any type of economic expansion, particularly natural gas drilling,
has the potential to result in considerable wear-and-tear on this infrastructure. In preparation for the
potential influx of heavy vehicles associated with natural gas exploration, the LDDs are using ARC
grants to parther with thelr conistituent countiés ahd fnunicipalities to establish a baseline analysis of
local roads and bridges for use In monitoring céndition changes over tire.

The air service in the Southern Tier is characterized by low frequency flight departures and arrivals
and high fares at the commercial airports in Jamestown, Elrhira, Ithaca and Binghamton, increasing
the importance of access to larger airports such as Syracuse and Buffalo. Businesses, colleges and
universities along the I-86 Corridor have expressed a need for improved access to these airports

New York State Appalachian Region Development Plan 2011-2014 39



Mean Waste Water Treatment Plant
attaraugus County

General Goal 3
Develop and Improve Appalachia’s infrastructure to Make the Région
; Economically Competitive

Affordable and efficient physical infrastructure is necéssary for effective community development and
competingin the global economy. Such infrastructuré includes moderh telecormunications systems,
upgraded or néw Waterand. wastewater systems, and efficient connections to global trahsportation
networks.” Hilly terrain, low population density, and constrained municipal finanicés present obstacles
to modernizing basic infrastructure in Appalachian New York. The NYS ARC Program will seek

to prioritize infrastructure investments that leverage federal, state, private, and local capital for

construction that directly supports regionally significant economic development or addresses public
health concerns. ,

Infrastructure Overview

Many state infrastructure funding programs focus on implementing projects that modernize the
infrastructure of the state’s rural and financially distressed areas. For example, the NYS Environmental
Facilities Corporation (EFC) Clean Water and Drinking Water Revolving Loan Furids include a funding
metric based upon affordability and community wealth. The state Department of Transportation
works with county and local highway departments to help maintain roads anid bridges statewide, and
provides local highway funding assistance to rural communities. The NYS Office for Technology (OFT),
now the Office of Information Technolégy Services (ITS), has worked to expand Universal broadband
access to affordable, high speed Internet service to upstate cities arid rural towns.

Despite these partnerships, the Southern Tier shares common problems with rural America and
other parts of Appalachia. Many of the région’s communities that are most in heed of critical
infrastructure upgrades are those that afe least able to pay for thetti. Ih low tax base communities,
deferred maintenance of infrastructure is a growing concern. The NYS ARC Program works to inform
potential Southern Tier project sponsors about funding streams that can help facilitate infrastructure
modernization projects.

Due to the high-cost nature of infrastructure projects, the NYS ARC Program is adopting a policy

‘ that favors regional infrastructure planning projects over specific infrastructure construction projects

except in the most dramatic cases where such projects. are regionally significant, and where the ARC's

New York State Appalachian Region Development Plan 2011-2014 En 35



investments in Southern Tier locations in recent years, underlining their commitment to remain
and expand within the region.

Health and Education: Due to the ADHS expansion, both of these social services have become
more accessibie. Major new healthcare facilities are being built on sites immediately adjacent to
the interstate, and educational institutions are expanding in similar locations as well.

ADHS Development Priorities: : : i

* Completion of the ADHS: Looking ahead, the NYS ARC Program wil if work with state
DOT to complete the ADHS corridors within NYS in a timely manner. Corridor T is expected to

be completed in:2013. The eligible portions of Corridor U in NYS are now completed; however
an appropriate connection between Corridor U and Corridor T in the Horseheads ‘area will
eventually be made with non-ADHS funds. This work and other improvements to the non-ADHS-
eligible miles of the NYS portion of Corridor U (now NY Route 328) will be done when the .
economic development potential warrants or when Pennsylvania’s DOT. begins corresponding
improvements. Corridor U-1’s pavement portion is expected to be completed by fall of 2012, and
the bridge portion is expected to be completed in the winter of 2015. Finally, Corridor U-1'Srest
area portion is expected to be completed during the fall of 2018. Corridor:U-1's planned Rest
Area Travel Information Center (RATIC), currently estimated to cost between $15 and $20 million
is a key aspect of bors vision for the corridor and the final project on the ADHS in NYS.

* Promote Transportation-Related Economic Development: The NYS ARC Program

will continue to advocate the expansion of entrepreneurial initiatives that leverage the increased
access provided by the ADHS, as wll as opportunities for revitalization of the region’s downtowns
and neighborhoods. €

* Promote Intermodal Transportation Linkages: The NYS DOT's 2009 Statewide Rail
Plan, along with its 2008 Rail Needs Survey, identifies tens of millions in investments needed

to keep short-line freight operations functional in the Southern Tier. Freight movement is also
congested in the Binghamton area. Capital projects funded by NYS DOT have begun to address
these challenges, funding the construction.of new crossovers, relocation of existing track
connections, and the addition, of more yard tracks for assembling trains. In.addition, planned
upgrades and expansion of Stewart Airport in the, Hudson Valley create added potential for
economic development in areas linked to the Southern Tier by the ADHS and [I-86 projects. Where
such intermodal strategies are consistent with the NYS ARC:Program, projects will be supported
under other ARC Strategic Objectives.

General Goal 4 Summary

The ARC's strategic objectives related to ARC General Goal 4 are accompanied by an underlying need
for a transportation-based development approach that preserves the cultural and natural resources

of the region and supports the region's environmental health while enhancing economic opportunity. i
The NYS ARC Program will work to both promote the completion of the ADHS network in NYS and
to ensure that the economic development impact of the highway is maximized.

44 ra New York State Appalachian Region Development Plan 2011-2014


Map 9: Southern Ti

Each region is directly supported by a Local Development District (LDD) that operates as a Regional
Planning and Development Board, a special purpose unit of government created under the NYS
General Municipal Law. as a joint Undertaking by member counties. LDD members are typically locally
elected public officials and representatives from the business, education and the community service

Thé STE region, supported by! the Southern Tier East Regional Planning and Development Board
(STERPDB), i isan eight: -county hat covers 6,159 square miles, making it larger than the states
of Rhode Island and ‘Connect Delaware County, with a lard area of just under 1,450 square

, miles, makes up nearly a quarter of
the region's territory. While comprising

Southern Tier East Region of New York State | mainly large wooded hills and rural

agricultural areas, the region contains
significant urban’ concentrations, © ~
including the Binghamton and Ithaca
‘Metropolitan Statistical Areas (MSAs),
the stnaller cities of Cortland, Oneonta,
and Norwich and the larger-villages of
Cobleskill, Delhi, and Cooperstown.

In 2010, the STE region had a

population of 596,090, of which

Broome County accounted for.‘
approximately one-third, with just. ;
over 200,000 residents. Countering * €
thé previous trend; the region's total

population has increased. modestly since

Source: Southern Ter fos teil raga Deielorient Board a 2000, Tompkins and Schoharie counties

- modest growth'in Otsego, Broome | and Cortland counties. Chenango, Delawai

grew more rapidly, followed by more
ind Toga counties

rienced slight declines in total population.,

The region lies at the headwaters of two major river systems, the Delaware and the sustuehanna:
Delaware and Schohatie counties are:also’home to a partion of the New York Clty Watershed,
including'the Schoharie, Pepacton ‘and Cannonsville Reservolrs. Thi S Watershed is the world’s largest
unfiltered drinking water-supply, serving over 9 million people | (fa metropolitan New York.

Over the last few decades, the economy. of the STE region has been marked by. the decline of.
traditional agricultural and manufacturing employment, and the rapid expansion of, the service sector.
The. transformation of the aerospace and electronics industries has had especially strong repercussions

’ for the Binghamton metropolitan area, The downsizing or departure of IBM, CAE-Link and other

major high-technology employers has forced much of the region's economy into a state of transition.

By contrast, Cornell University’s continuing role as a nationally recognized research center has helped

to sustain Ithaca’s economic position. in the smaller cities of the region, development has been,
supported either by local colleges (Oneonta), a group of nationally focused industries (Norwich) or a
combination of college and industry (Cortland). Locally-based enterprises are an important part of the
economic landscape in the more rural portions of STE, as are agriculture, forestry arid fisheries. The

STE region also benefits from a substantial secondary and post-secondary educational infrastructure €
and numerous recreation and tourist attractions. .

12 eo New York State Appalachian Region Development Plan 2011-2014



New York State
Appalachian Regiofi
Development Plain.
2011-2014 fe

ra
NEW YORK STATE Ee DEPARTMENT OF STATE
x

Appalachian Regional Development Program

One Commerce Plaza, 10th Floor
99 Washington Avenue, Albany, NY 12231
Telephone: (518) 473-3355
_ Toll-Free Local Government Helpline: (800) 367-8488
www.dos.fy.gov
E-mail: LGEProgram@dos.ny.gov

Andrew M. Cuomo Cesar A. Perales
Governor Secretary of State

Dierdre Scozzafava
Alternate, Deputy Secretary of State for Local Government

100% Post-Consumer Fiber

12.21.12



Notes

52 va New York State Appalachian Region Development Plan 2011-2014



2. The project must already have.heen approved by DOS and transmitted by the Secretary of
State to ARC with a recommendation for approval.

3. Approval of the project by ARC must be held up beyond normal ARC processing time (at
least 45 days) because of circumstances beyond the project sponsor's control. (Such as a delay
in required action by the State Legislature, or a State or “federal agency. The project sponsor
must have done all that is possible to obtain the required action by the other entity).

4. There must be written assurance from the appropriate.federal (and state, it applicable)
basic agency of support or no objection to the granting of the waiver.

if all four conditions are met, waivers may be granted:by the ARC Program Manager in a letter
to the requesting LDD. The grant of a waiver in no way obligates DOS to continue to support the
project or ARC to fund the project. The project sponsor therefore proceeds with contract letting
or other actions at its own risk.

IV. New York State’s Energy Policy For Commercial Construction Projects

In accordarice with ARC Resolution Number 718 of November 30, 2009, all applications for ARC-
assisted construction projects will include a discussion of any efforts that may have been made to
improve the energy efficiency of the project. In addition, the State’s ARC Program will support programs
designed to improve the understanding of energy efficiency strategies, programs, arid technologies

by providing outreach, education and training, as well as cértification programs to community leaders,
elected officials, ‘plariners, developers, contractors, educational institutions, and LDDs.

The Energy Conservation Construction Code of New York State, based on International. Energy
Conservation Code 2009 and referencing ASHRAE 90.1-2007, became effective on December €
28, 2010, and is more stringent than prior codes. DOS's Division of Code 'Enforcemént and i
Administration is responsible for administering the code and providing technical support related to

code interpretations and variances. By legislative authofity, the Secretary of State may promulgate
regulations to amend the code. In addition, NYSERDA provides a number centives to promote

energy efficiency in construction projects. DOS and the LDDs will’continue to work with NYSERDA to
assist project coordinators with exceeding energy.efficiency codes for‘ARC projects.

‘Cayuga Lake at night

| New York State Appalachian Region Development Plan 2011-2014


priorities to match the conditions and opportunities present within the Council's local.region. The
REDCs will meet throughout 2012 and beyond to implement and update their strategic plans, which
have set a tone for development that builds on local assets, including the ADHS and other Interstate
corridors, leveraging the industria! presence of the regions, developing their strengths in health care,
higher education, and technology, revitalizing the agriculturally based economy, and strengthening
the economic development backbone. The REDCs have also focused on implementing overarching
development policies to stimulate the economy in the desired directions. These include:

1.Job Growth and. Job Readiness - ensuring that each strategy is focused on job creation and
retention, preparing the ‘residents of the state with the appropriate skills for employment, and
strengthening the connections between the "P-12" system, higher education, and business.

2.Smart Growth — urging investments in the underlying strengths of NYS, including existing
communities, urban centers, brownfields, neighborhoods and rura! places, to make them
attractive to people and businesses.

3.Ehtrepreneurship ~ nurturing business development through innovation and risk’ taking by
providing better access to venture capital, granting relief: from | regulations that‘can limit business
creation anid expansion, and offering a range of practical services that new businesses need.

The General Goals of ARC are consistent with the development approach of the REDCS that considers
the health ofa region to-bé a function of promoting local economies, developing a workforce that

is healthy and well educated, and modernizing the region's basic infrastructure to attract people

and businesses. As the REDCs proceed to implement their strategies, the NYS ARC Program is well
positioned to leverage the regional orientation of the LDDs to assist the REDCs work to transform
their regions through identification and delivery of. regionally significant projects.

Defining Regional Significance

In prior years, the ARC identified a limited number of regional priorities for additional emphasis,
such, as.asset based development, telecommunications and entrepreneurship: While the ARG has

i¢ pu alte In corijunction with building ee capacity, the process
ignificance and prioritizing resional significant projects is‘core stated:

the ARC program have in assisting the tegion’s plan for Sout and economic development i is highly
important to. setting | priorities and determining Where the ARC's modest financial support may have
thé greatest ‘positive economic effect and future benefits, In t is sense, the program can produce
greater ‘benefits by providirig technical assistance and bringing together the region’s interested parties
than its funding stream might suggest. In addition, The NYS ARC Program must define; promote:and
assist regionally significant projects to ensure that it plays the role needed to overcome -parochialism
and local government inefficiencies.

Regional significance is to be broadly defined. A project could be regionally significant because it
has a sizeable and /or sustained benefit to a large sub-region, such as a water or sewer infrastructure
project that enables further economic development in a county subarea or links two or more areas.

4
22 ea New York State Appalachian Region Development Plan 2011-2014

his

€

€



to support their operations. Local airports, such as the Elmira Corning (Horseheads) Regional

Airport, support private industry aircraft, and should be considered as potential hubs for intermodal €
development. Map 20 shows the location of the Southern Tier’s primary commercial and local

airports, and their relation to major highways and rail links across the region.

The region, like the rest of upstate New York, has a great need to expand, upgrade and repair rail
systerns, particularly the short-line freight rail systems that have been instrumental in attracting and
retaining commercial enterprises. It is important to note that the region lacks intercity or commuter
passenger rail service to connect it with other key regions of the state, and bus service within the
region is also limited. While the addition of commuter rail service seerns’ impractical due to the
high costs and low demand, the development of an “inland port” for moving freight from ports
to an inland customs and distribution location is a planning concept that has worked elsewhere in
Appalachia, particularly in Virginia, and has had some appeal within the region.

Intermodalism also involves linking communities and commerce by other means. In the Southern Tier,
waterways have been historically important paths of transportation. Most notably, communities with
accéss to Seneca, Cayuga and Keuka Lakes are tied to an inland waterway network: that links to the
Erie Canal and the Great Lakes and Hudson River. The Southern Tier also has an extensive network

of recreational trails that provide pedestrian linkages throughout the region by foot, bicycle and
snowmobile. From a tourism perspective, these trails serve a distinct asset-based economic niche.

As the ADHS approaches completion in Appalachian New York, the NYS ARC Program will work with

the LDDs and REDCs to support enhancements to intermodal connectivity throughout the region.

While these are important and often costly projects, the NYS ARC Program will seek to compile a

current prioritized inventory of “regionally significant” intermodal transportation projects that are
supported by the counties, the LDDs and the REDCs and will facilitate commerce within and beyond €
the region. The NYS ARC Program will support projects that have significant positive impacts on the
regional economy and where such support is essential to the completion of the project.

Environmental Assets

The pristine nature of Appalachian New York is a strong quality-of-life asset for the region.

The Allegany and Catskill highlands in the west and east, respectively, are recreational lands of
considerable envirorimental value. The Finger Lakes region in STC and part of STE provide an
important economic and tourism asset. The region is also home to significant forests and well-
tended agricultural tracts, and possesses a dramatic natural environment that draws tourists from

all over the world. . Further, the aquifers and headwaters of the region provide fresh drinking water
to a significant number of New Yorkers, and the rivers and creeks that start in the NYS Appalachian
Region are major players in the environment of some of the Northeast’s most critical watersheds. The
health of these waterways affects the lives of millions who live beyond the borders of NYS. According
to the NYS DEC, which is responsible for monitoring these waters, the condition of these watersheds
is good, and protecting these resources from potential harm and fostering responsible stewardship is
a high priority for the NYS Program.

General Goal 3 Summary

Although infrastructure projects can have a valuable impact on a region ’s growth potential, they

tend to be costly to local governments. The NYS ARC Program and the LDDs have been ardent
proponents of infrastructure modernization throughout the Southern Tier. But rather than focusing

on physical construction projects for infrastructure improvement, the NYS ARC Program will continue

to emphasize infrastructure planning-type projects, readying communities to seek larger investments, €
Construction projects are more likely to be financially supported when they are consistent with NYS's

Smart Growth Act and identified as “regionally significant.”

40 ee New York State Appalachian Region Development Plan 2011-2014


>

Enchanted Mountains
Cattaraugus County

: Preface

Since its inception, the NYS Appalachian Regiotial Development Program has played a key role ir

1 eople of Appalachia build a better future by creating jobs, fostering busiriess growth,
community Capacity, linking thé Southérh Tier with national and international markets,

ng the developtnent of ah educated, healthy workforce, atid contiiButing 6 the findntihg of
pflotity infrastructure projécts throughout the region:

‘ ee ;
Appalachian New York's fourtéen counties are éach classified by the ARC as “transitional” and
ate Curténtly performing in either the 2hd of 3rd quartilé of US counties when thes
Zed set of economit metries related to erployrriaht; poverty and per eapita m
f global compatition and techn | advancements dérhand that Southern Tier
communities Work collaboratively to revelse thé economic stagnation and decline that have impacted

many key Appalachian ihdusttiés.

Governor Andrew M. Cudmo has charged Naw York Stata agencies with the task oF rebuilding
the NYS.ecohomy and énétgizing job creation and appointed ten Regional Ecohiomic Development
Councils (REDCs) ini the Summer. of 2041 to function as the cornerstone of statewide economic
development efforts. These public-private partnerships, Compised of local éxpétts and stakéholders
from business, academia, local government, and HOA-governmehtal organizations, are charged with
developing long-term, locally-driven strategic plans and regional investment ptlorities for each region.
NYS agencies are key partners in this effort that seeks to better align limited state resources, prioritize
regionally significant projects, and identify and eliminate obstacles to economic development.

The NYS Appalachian Regional Development Prograrh (or ARC Program) is coordinated by the NYS
Department of State’s Division of Local Government and works in conjunction with the ARC, other state
agencies, county and local governments, and regional planning organizations to help achieve the ARC's
General Goals. The NYS Program focuses on ensuring that the region's ledders and citizens have the
capacity, capability, and resourcés they need to build and Strerigthéni their local economies. The ARC's
structure as a federal-state-local partnership and regional development agency makes it uniquely suited
to help guide and foster the local efforts required to improve and sustain the economy of the region.

New York State Appalachian Region Development Plan 2011-2014

ARC)



Program is also concerned with a shortage of dental care providers and ensuring that the region's
students are receiving adequate dental care before they become part of the workforce.

Regional Workforce, Education and Health Priorities:

1. Increase Employei-Oriented Workforce Development and Education
for 21st Century Careers

Many Southern Tier employers report that the region's job-seekers often lack the skills required for
available job openings. Regionally relevant workforce development efforts should be tied to the
region's écononilc opportunities and needs. Training initiatives that build skills for the jobs where
employers need workers, especially in targeted industry tlusters like advanced Manufacturing,
electronics, high technology, green technology, and Health care services, afe esseiitial. The NYS ARC
Program will coordinate efforts With the REDCs, Workforce lnvestrhent Boards, arid the LDDS to
implement strategies that support this priority.

The NYS ARC Program has long been comiitted to collaborating with the NYS Education
Department (NYSED) to increase educational attainment. Relevant projects range from early childhood
education initiatives to technical and vocational training at all levels of education. As in the past, the
NYS ARC Program and the LDDs will seek ways to miake education at all levels relevant to the 21st
Century careers.

Asa special initiative, the NYS ARC Program will continue to work with the ARC and NYSED to
encourage participation in thé annual science and math internship for high school and middle
school students and teachers at the Oak Ridge National Laboratories (ORNL) in Tennessee. This
annual summer program provides student and teachers from across Appalachian New York with a

unique exposure to the world of applied sciences afd has the potential to spur careers and advanced
education in the sciences. rd fe Pkg :

2. Improve Access to Healthca

Rural counties like those in the
care to their residents comparéd '
long distances between medical practice:
into areas where the population densit
facilities is limited. Coordination wit
regional health issues, particularly for tho:

a health care

professional from Appalachian New York +0 Serve Of the ARC 3 Apy ith Policy ae

Council (AHPAC).

Data indicates that the NYS southgni Tier average’ SH fewer p
the entire 13-state Appalachian Region. Recruiting and ret
can be difficult where salaries tay not'be competitive, and Where werane caseloa
heavy, Exacerbating the shortage of medical practitioners. act
prospect that many physicians cutrently practicing i’tural New York are Hearing retrsment age.
addition, the financial challenges of the Southérti Ter rural hospitals reflect & atior
a crucial need to support cooperative health care hetworks that can generat

health care access for the region’ § und red residents economically Viable.

NYS has incorporated several strategies i iherdase the availablity Of aff able, high quality
health care throughout Appalachian. New York; Where physician practices are unevenly. distributed.
Mobile medical and dental resources’and télemedicine and tele-heaith technologies have also bee

New York State Appalachian Region Development Plan 2011-2014 ra 33



_.. New York has 130 school districts and 168 fire districts, accounting for only a portion of the
1 fegion’s 1,170 “special purpose units” of local government. This number of auténomous and semi-
autonomous units of local govetriments represents a sizeable pool bf sponsors for ated Uévelopment

projects but also.presents a challenge for-idéntifying trué regional prloritiase ~~ - --

Effective cooperation among local seivice providers is vital to developing 4 coordinated approach to
community developmieht. To facilitate cooperation and coordination among the communities, county
governments can bé important partners. They have the potential to address sdtrie of the capacity
néeds of the communities within their bordérs. However, a county's capability to facilitate community
capacity depends on a number of factors, including its size, relative wealth, aiid commitment to this
role. County planning and other departrnents vary in their capacity to assist citlés, towns and villages,
leading to an urieven landscape for the LDDs.

NYS.couinties are generally limited to an advisory role in regional planning, as only towns, villages and
cities generally have land use regulatory powers. Counties have fiscal capacity for and authority over

a limited ranigé of Services, including law énfotcémetit, public safety, highway maintenance, social and
health services (such ds Medicaid), and education (special needs and community colleges).

Further, the authority and form of county govethmentt varies from county to courity within NYS,

and more céntralized forms of county governments can lead to a greater level of inter-thunicipal
cooperation within such counties and facilitate intra-county project prioritization, For example,
within Appalachian New York, the counties of Broome, Chautauqua, Chemung, and Tompkins have
approved charters that grant greater authority to county government for intefthunicipal planning and
coordination. Voters in the first three of these counties have opted to have an élected executive as
the primary focal point for coordinating county government. In other counties, thé county legislature
or the board of supervisors has chosen @ county adrhinistrator of manader té help manage the routine
operations of county government; Cattaraugus, Allegany, Cortland, Schuyler, and Steuben counties
have done so arid, in all but Cortland and Schuyler counties, thé County Adiiiistrator sérves as the
chief county administrative official. in Cortland and Schuyler counts, thé Chair of the Legislature

is designated the chief adrhinistrative Official. Tablé 3 summarizes the range of types anid forris of
county governments within The NYS Southern Tier.

The relationship between counties and their autonomous constituent municipalitiés is ah inportant
Consideration for The NYS LDBS, Even though the LDbs aré regiorial hubs for county arid inter-municipal
planning and prioritization, the capacity and functions of their constituéht counties variés, These
differences are evident in the approaches taken to regional issues and planning articulated in each

LDD's CEDS and in the projects that are solicited and approved by each district board. Part of The NYS
Baseline Goal is to help the LDDs leverage their regional focus to hélp county and local govérriments
better and more economically serve their communities and identify fégionally significant projécts.

New York State Appalachian Region Development Plan 2011-2014 }



including forest products, natural Ma
' gas, oil, gravel, soi! and water, i

also present opportunities

for economic development.

The Southern Tier’s location is

particularly advantageous for

the manufacturing, tourism,

and distribution industries, with

good access to the Northeast, the

Midwest, and Ontario (a center

of Canadian economic activity).

More than a century of
manufacturing expertise across
the region has imbued the local
workforce with a strong work
ethic and skills for a variety of
industries. Additionally, while

thé labor force is génerally well-
educated and highly skilled, labor
costs in the region ate lower
than those in larger metropolitan
areas.

As ranked by the ARC’s
comparative economic metrics
on unemployment, per-capita
market income, and poverty,
all of 14 Appalachian New
York counties are corisidered
“transitional” and are ranked
in the middle 50% of the

nation’s counties in ecoriomic
strength (Map 13). Despite this,
7.6%, of more than 76,000 of
Appalachian New York’s residents
live in distressed census tracts
distributed among the countiés
as follows: Broome, 25,725;

Chautauqua, 21,915; Chemung,

19,007; Steuben, 5,216;
Cattaraugus, 3,243; Tompkins,

1,214. These “pockets of
distress” are largely found in the
region's mote densely populated
areas, (See Table 4).

Another concern is the general trend toward population decline ot, at best, slow population growth.
Most counties have experienced a net population outflow that coincides with the long-term decline
in manufacturing jobs. While the region's out-migration was approximately proportionate to other

Source: wiww.arc.gov

inking inthe

New York State Appalachian Region Development Plan 2011-2014 i 25



~. , Significant projects and meet regional needs. The NYS ARC Program can help improve the capacity of
} Southern Tier municipalities thtough funding GIs Projects for communities that would ordinarily riot
be able to'afford or appropriately Utilize these services alone.

Given the sparse population of many of Appalachian New York's municipalities, single-municipality
approaches to common local challenges are often inefficient. Approaches involving regional planning,
however, better leverage the talents and resources of multiple municipalities toward common tasks
and purposes. Such cooperation can be between a limited number of local governments or across
many municipalities. The NYS ARC program will support the earnest efforts of local govérnménts to
plan across municipal boundaries to make public servicés and solutions more efficient. Similarly, when
multiple governments convene to identify projects of régional sighificancé, the NYS ARC Program will
support expanded funding as a priority for the region’s future growth and development. In addition,
DOSS Local Government Efficiency grants program will be leveragéd to foster regional planning and
cooperation, and to provide technical assistance and training of leaders across the region.

The CEDS drafting process, is also one of the NYS ARC Program's opportunities to convene county
leadership to strategically assess the stréngths, weaknesses, opportunities and challenges facing
multiple county districts within Appalachian NYS. While the ARC Program cannot fund all projects
that the CEDS process identifies, it can help the LDDs work with other agencies across NYS and at
other levels to bring resources to bear on the region's issues. As DOS and the LDDs becorfie aware of
Major projects that are in need of support from other agencies, or that are benefiting from other state
programs, the NYS ARC Program will work to support such inter-agency cooperation.

Supporting the Regional Economic Development Councils

As mentioned earlier, the NYS commitment to a bottom-up approach to econorhic development has
been demonstrated by the creation of ten REDCs in 2011. The REDCs are new parties to the regional
planning process that can help
identify paths to economic
growth and employment at each
regional level. These public-
private boards were established
to develop regional strategies
and implementation actions to
revitalize the statewide economy
and increase employment. The
NYS ARC Region spans four
REDCGs, but lies predominately
within two (See Map 13). DOS
and NYS‘s ARC Program are
partners with the REDCs, as are
the LDDs, whith Have key roles
on REDC work groups.

Map 13: New York State Regional Economic Development Councils

Itis expected that there will

be considerable overlap in the
LDD's CEDS and opportunities to
support REDCs’ priorities.

In the Fail of 2011, each REDC
submitted strategic plans,
setting out strategies and

Source: Courtesy Phote / Empire State Development

New York State Appalachian Region Development Plan 2011-2014 )



supported. Building on these efforts, the NYS ARC Program will continue working with the LDDs to

find ways to help the region's health care providers reach into the most rural and underserved parts of ¢

the region.

The NYS ARC program has also supported health practitioner training courses at the state’s
educational institutions; with a particular emphasis on training’and re-training residents for careers in
nursing. This field is not only a means to help reduce health care discrepancies in the Region, but also
an opportunity for.the development of a productive career for students.

ARC's J-1 Visa waiver program, which helps reduce health care isolation, is also.an opportunity to
increase the number of physicians. J-1 visas are given to students to attend school in the United
States for a period of time and require them to return to their home countries after completion of
their studies. As a federal agency, the ARC can submit requests for waivers of the home residency
requirement that, if granted, allow foreign physicians who haye been training in the U.S. on J-1.visas
to remain in the U.S., provided they agree to practice for a set period of time in an HPSA in an ARC
state. The NYS ARC Program will continue to, work with NYSDOH to coordinate the placement of
primary care physicians on J-1 visas in HPSAs in Appalachian New York (see Maps 17 and 18).

General Goal 2 Summary

ARC's General Goal 2 is highly correlated to Appalachian New York’s own economic development
plans. Given the importance of a well educated and healthy workforce, each of the region’s REDCs
are emphasizing workforce development as a key strategy for economic development. The NYS ARC
Program will collaborate with the LDDs, relevant state agencies and the REDCs to meet prospective
employer workforce needs and to créate Opportunities to make all Southern Tier residents productive
participants in the diol

‘Coming Museum of Glass
‘Steuben County

34 we New York State Appalachian Region Development Plan 2011-2014

€



* Over two-thirds of the residents in Appalachian New York and Upstate New York expressed
satisfaction with community environmental preservation.

© Residents within Appalachian New York expressed a slightly lower level of satisfaction with
community health care than citizens from Upstate New York. Less than half of respondents in the
ARC region (47%) expressed some level of satisfaction, compared with just over half (52%) of all
Upstate respondents. This is generally in line with expected survey results on the matter since the
Southern, Tier has a significant number of federally-designated health professional shortage areas
dué to its relative geographic isolation.

« By a two-to-one margin, Upstate respondents and those in Appalachian New York believe their
local leaders are either prepared or very prepared to serve the local community.

Overview Summary

Appalachian New York is a region of diverse geography, urban influence, economic opportunity,
population dynamics and civic capacity. Its citizens support a balanced approach to development that
focuses on job creation and improving the quality of life while alleviating poverty and enhancing the
local employment base. New job creation and attention to efficient local goverriment are important to
fosteriig growth within the region. Looking ahead, the NYS ARC program needs to help local leaders
develop solutions to their cornmon challenges and capitalize on the region's indigenous strengths to
improve and sustain their communities. : .

Elmira, NY
‘Chemung County €

16 et New York State Appalachian Region Development Plan 2011-2014



The NYS Appalachian Region

Overview of Appalachian
New York State

Plane towing a glider at Big Flats
Chemung County

The federally-defined Appalachian region is a 205,000-square-mile region. that follows the spine

of the Appalachian Mountains from the foothills of northern Mississippi and Alabama through the
Appalachian portions of Georgia, Tennessee, South Carolina, North Carolina, Kentucky, Virginia, West
Virginia, Ohio, Maryland and Pennsylvania before terminating i in the 14- '4-county Southern Tier of NYS.

(Map (1) shows the Appalachian Region.)

Map 1; US ARC Re:

PENNSYLPANIA

The NYS federally-designated Appalachian region is

an 11,681 sqUare-mile portion of NYS that contains

the northern portion of the Appalachian Plateau. This
represents 24.8 percent ( %) of the state’ s total land area.
it is comprises the following fourteen’ counties: Allegany,
Broome, Cattaraugus, Chautauqua, Chemung, Chenango,
Cortland, Delaware, Otsego, Schoharie, Schuyler, Steuben,
Tioga and Tompkins. The region’stretches 285 miles from
east to west, from the Town of Esperance in northeastern
Schoharie County to the Town of Clymer at the
southwestern corner of Chautauqua Countylt spans nearly
the entire New York/Pennsylvania border and extends on
average about 50 miles northward from the state line.

Sparsely populated, with just over 1 million residents,
Appalachian New York is influenced by other larger
population centers across NYS. Map (2) depicts the region's
14 counties and the main metropolitan areas in upstate
New York including Buffalo, Rochester, Syracuse, Albany,
and Binghamton (in the ARC region). In addition, New York

City has a great impact on development and resource use in the easternmost portion of the region.
The region is also strategically located for international commerce with Canada and its major industrial

presence in proximity to Toronto.

8 er New York State Appalachian Region Development Plan 2011-2014

om

€

i
{
{



{

are all focused on reversing the Map 16: Educatinal Attaianment

} downward trend of manufacturing Educational Attainment in Appalachia, 2000
(High School Cornpletion Rates)

jobs in the region. Statewide, the

regional economic development
plans issued by the REDCs focus

on the foliowing workforce
development priorities: improving
the science, technology, engineering,
and mathematics components of
education in the regions, creating
educational collaborations bétween
workforce training agehciés and
employers, and taking steps to stem

. tank This map shows

the out-migration of the region’s of eaten 2 yous or
adi _ ! ‘atleast

well-educated secondary and post ; | | er agn school depen.

secondary graduates.

"Data source: U.S, Census Bureau,
2000 Consus SF3

Educational Attaiiinient:

The status Of educational attainment eS : :
across the Southern Tier is generally good. Comparedto the rast of Appalachia, Appalachian New
York ranks toward the top in educational attaintrient and high school ¢émpletion tates: (Gee Map 16).
However, prospective employers séek workers who aré better prepared for current career openings,
Technology education is & priority to meet the nééds of the region's employers. in adcition, daycare
services have been cited by the LDDs and by potential employers as an important regional. concern.
Some qualified job seekers are discouraged from entering the labor force because they cannot find
adequate daycare facilities to safely care for children during working hours.

Sout: ARC

Across the secondary and post secondary spectrum, NYS educational infrastructure is geared towards
job skills training. Cornell University and Binghamton University of the State University of New York
(SUNY) rank among the nation’s top university céfitérs. SUNY also has a numbér of other highly
ranked colleges across the region, including campuses at Fredonia, Alfred, Oneonta, Delhi and
Cobleskill. in addition, there are several private colleges (including St. Bonaventure University,
Houghton College, Elmira College and ithaca College), six two-year community colleges and many
specialized technical institutés locatéd actéss the Southern Tier. Thé region's two-year community
colleges offer 4 wide array of vocational and tethnical training prograins and tend t6 focus on skills-
based education. The flexibility, conimunity focus arid partnerships with busihéss, labor arid public
schools of Community colleges give students an opportunity t6 gain the applied skills they need to
land good jobs and help ‘dispiaced workers transition to haw careers; Thase schdals havé.béen, aid
will continue to be, regular partners with the NYS ARC Prograin for workforce development traihing
projects. .

When companies relocate away from the région, many displaced fortherly working adults find it
difficult to secure new employment without significant retraining ahd education. The NYS workforce
training infrastructure is further supported by Boatds of Cooperative Educational Sérvices (BOCES)
that are formed by local public school districts t6 serve vdeational education and other special reeds
of secondary-level students arid adults.-BOCES organizations are kéy links in thé:schdol-to-work chain
for many Southern Tier New Yorkers. Appalachian New York's ‘14-Courity area is served by eleven
BOCES districts, five of which are headquattefed within theregion. Like the cofnmunity colleges, NYS
! BOCES districts have often relied on the ARC for project funding.

New York State Appalachian Region Development Plan 2011-2014 31



projects. The program, via the LDDs and the Small Business Development Centers in the Southern
Tier, has utilized ARC resources to help implement strategies that provide technical assistance on
management, marketing, technology transfer, strategy development, and other business activities. In
addition, NYS has recognized the need for capital financing for prospective business owners and has
facilitated the expansion of revolving loan funds coordinated by the LDDs.

The ARC-led Appalachian Capital Policy Initiative, which is supported by NYS, is working to increase
access to capital and credit, lack of which is one of the major factors limiting business creation,
expansion, and growth in the Appalachian region. Just 1.3% of professionally managed venture
capital is invested in Appalachia annually. To counter this low rate of capital investment, the initiative
has four objectives:

1. Attract new capital to Appalachian Community Development Financial Institutions (CDFls);

2. Build entrepreneurial ecosystems (i.e., integrated networks that spawn and encourage
entrepreneurs);

3. Expand bank lending in the region; and
4. Initiate research and ARC activities to better understand the capital and credit gaps.

* Assist Farmers and Encourage Agri-Businéss Development

Agriculture can play an important part in expanding the economy of Appalachian New York. It
generates revenues of over $4.5 billion annually, statewide, yet the family farmer faces a challenging
business climate. The NYS ARC Program has worked to support agriculture and to help farmers
become more productive and profitable. An emerging trend favors the production of locally grown
and raised food, and presents an opportunity for NYS farmers to find new markets. To build on this,
the NYS ARC Program has.supported projects that inform local farmers about new marketing and
production strategies to tap into the demand for locally grown and/or organic foods, Research and
development is an additional priority for the state's agriculture industry that has been supported by
the NYS ARC Program. Looking ahead, emerging technologies and alternative energy sources can
create new opportunities for farmers, The NYS ARC Program will work with research organizations,
entrepreneurs, the counties and other-agencies and non-profit organizations to facilitate projects that
can provide local farms with atcess to these technologies. In addition, the ARC’s infrastructure goal
supports expanding broadband.connectivity for Southern Tier farmers and other rural residents to
help speed their integration into the world economy.

An ancillary focus of the NYS ARC Program related to agriculture is ARC's “foodways” initiative.
This concept — that local food and sustainable agriculture is a strategic resource to help revitalize
local economies — coincides with an increased demand for locally grown food, especially in nearby
urban communities. The USDA indicates that this demand helps keep a greater share.of income
and wealth circulating in local economies and builds stronger linkages between consumers and
local food producers. The NYS ARG Program and the LDDs will work with diverse stakeholders —
including funding partners such as philanthropic organizations and USDA ~ to spark creative ideas
and galvanize momentum around food and agriculture programs and projects. NY$ will introduce
foodways as an economic development tool, disseminate information on best practices and
foodways research, and strengthen ‘existing successful programs. This effort is anticipated to spur
entrepreneurship, food distribution, infrastructure development, and agricultural education and
awareness throughout the region.

* Leverage the Appalachian Development Highway System for Economic Development €

The Appalachian Development Highway System (ADHS) has three corridors in NYS (J, U, and U1; see

28 a New York State Appalachian Region Development Plan 2011-2014



Lacke Family Farm
Schoharie County

Introduction

The Appalachian Regional Commission's Stratégic Plan, “Moving Appalachia Forward 2011-2016”,
articulates four general goals and 26 strategic objectives for the 13-state Appalachian Region. These
goals and objectives are prioritizéd forthe NYS ARC Program Under this four-year plan and will be
further amplified by subsequent NYS Strategy Statements filed annually with the ARC.

As one of 13 mhembet states, NYS participates in thé multi-state regional development partnership

, Teferred to as ARC, which continuously promotes community capacity and regional planning in the

economic development process. The NYS Departmerit of State, ufder thé leadership of Secretary
of State Cesar A. Perales and Deputy Secretary of State for Local Goverriment Scozzafava (NYS
Governor's ARC Alternate), is the official agency responsible for administering the Appalachian
Regional Development Progrartn in New York State.

In implementing the state's ARC program, DOS works cooperatively in planning and projéct
development with three regional Local Development Districts (LDDs):

* Southern Tier East Regional Planning & Developrfient Board (STERPDB) in Birighatnton;
* Southern Tier Central Regional Planhing & Devéldpment Board (STCRPDB) ini Corning;
* Southern Tier West Regional Planning & Development Board (STWRPD3) if Salamanca.

The LDDs are participants in the NYS Appalachian policy development process. Each LDD is governed
by a board of Jacal leaders and professionals who rheet regulatly to review devélobment priorities for
each region. The LDDs also play a major part in codrdinating economic development priorities across
the region, primarily through the drafting of an anflual Commuhity Economic Development Strategy
(CEDS), & procéss that results in an assessment of thé constituent counties’ econornic development

needs and priorities, and which serves as a baseliné for project solicitation for the NYS ARC Program.

The NYS ARC Program works with the LDDs to becéme aware of major projects that are in need

of support from othet agencies. As multi-county planning boards, the LDDs are an important
component to régional planning, local government capacity building, and intersagency coordination.
DOS's close collaboration with the LDDs and the région’s counties can help leverage the broad range
of federal, state, local and private resources.

New York State Appalachian Region Development Plan 2011-2014 Ea 5



Schoharie Valley farm from Vromans Nose
Schoharie County

4 ee New York State Appalachian Region Development Plan 2011-2014



‘

jinghammton, NY

Baseline Goal

Develop Leaders, Strengthen Community Capacity and Foster Regional
Approaches to Economic Development

Successful regional économic development is a function of several community capacity factors
including: building and sustaining effective community leadership arid organizations, leveraging the

.. critical mass provided by inter-municipal cooperation, and promoting projects of regional significance.

} Communities with & strong government structure and/or Well organized civic participation have a

greater capacity to access the community development resources available to them and are more
resilient than those that lack these intangibles. These communities are strengthened by grassroots
involvement to resolve community issues and to plan ahead to capitalize on loéal and regional assets.

The ARC encourages member states to foster broad citizen involvement and collaborations among
business, government, nonprofit, and philanthropic organizations. In keepitig with this formula, the
ARC's first strategic objective for each of its four General Goals is: "Develop Leaders and Strengthen
Community Capacity”. This commitment to developing regional approaches for common chal lenges
has helped cormmurnities leverage resources to help them compete mote effectively in thé global
economy and appropriately measure the performance of public investments.

Capacity building also supports local and county governments’ role as strategi¢ planners and/or
implementers of regional plans. It is also a too! to foster cooperation across mutiicipal boundaries,

as well as state, fedetal and local agencies to promote local goverfiment efficiéricy. Long-term
strategic planning by local and regional leaders is critical to takihg full advantage of the economic and
community-building opportunities across the region.

The NYS ARC Program aims to leverage its role and that of the LDDs in régional development to
expand community capacity programs across the Southern Tier, and to serve a8 hubs for regional
planning, common problem solving and community economic development. This baselirie goal is a
practical priority for the NYS ARC Program to leverage the modest annual ARC funding allocations
{anticipated to be about $2 million per year for NYS). By supporting broad civi¢ engagement projects,
the NYS ARC Program can help.corrimunities prepare to take advantage of economic opportunities
and to. develop home-grown cadres of visionary leaders and effective organizations that can
strategically mobilize their cornmunities toward regional goals.

New York State Appalachian Region Development Plan 2011-2014



if

_-.. Inaddition to coordinating with other agencies, the NYS ARC Program will coordinate with the four
{| state REDCs that cover Appalachian New York. This leveraging of resources and coordination of
programs is a major component in addressing the state's econotnic challenges.

Accomplishments and Challenges —

When the ARC was established ih 1965, oné If threé residents of thé U.S. Appalachian region lived

in poverty and the region's per capita income was 23% lower thai the U.S. average. Since then, the
ARC has worked with its 13 meiiber ce the regioh’s gedgraphic isolation arid to bring
the region toward economic parity with thé Hatioh. For more thah 45 years, the NYS ARC Program H
has beén rasporisiblé for facilltating the subriss| i id Complétich of more than 1,740

ARC Aréa Development projects, fi ing ori Ih ARC furids into the region's

economy and leveraging over $487 maillioh in additi nal public and private funding.

Over thé same period, NYS's Appalachian region has also received over $755 million in federal and
state funds for the ADHS. This highway prograrh has been a boost to the régién’s development. OF
the total of 272.0 ADHS miles in NYS; 222.0 milés Wete eligible for ADHS funding. As of Seotember
30, 2011, 211.6 of the eligible milés were completed.

The NYS DOS and the LDDs have beconte focal points for regional planning on a wide variety of
project types. The NYS ARC Program coordinates activities with industrial development agencies
(IDAs), county and local governments, representatives from interested state and federal agencies, and
the region's citizens to help spur job creation, economic development, and a spirit of “regionalism”
throughout the Southern Tier. In doing this, the NYS ARC Progra? Works to balaricé the intterasts of
local home rule with the advantages of régional codperation, and seaks to help lécal governments
bécome more efficient and focusdd on projécts of fégional significance.

Drafting the Regional Development Plan

in drafting this four-year regional development plan, DOS was assisted by the Center for Local
Government, College of Community and Public Affairs at Binghathton University, which reviewed over |
75 local, state and federal documents related to thé ARC program ahd interviewed 32 indivi duals,
including: LDO staff, local planning and economic development professionals, local adthinistiative
and elected officials and other participants in the ARC program in New York. The intérviews and
analysis by the Center for Local Government providéd significaht data for establishing & ground-level
view of the NYS ARC Program and helped lead to a ntimber of chahiges to make the program more
responsive to community capacity opportunities, t6 Issues that thé ARC program can address; and to
identify priority needs and strategies for the region.

New York State Appalachian Region Development Plan 2011-2014 AE



The area impacted by a project of regional significance could be as sinall as a single municipality
\ if the surrounding municipalities or sub-Fegion share the benefits or it develops a model program

that may be replicated in other areas. Similarly, projécts'that leverage the capacity of community i

particioants to broaden civic engageirient across the fegion‘in:conSensus-driven regional planning and

project funding may also be regiohally significant. Such & project; when implemented, can facilitate

the region's economic advancement by ieading fo the completion of infrastructure or programs that i

significantly benefit the régional economy.

Regionally significant projects may also be those that augment régidnal priorities advocated by other
state or federal parthers: Projects that coordinate thé efforts of fnUltiple agenci&s toward 4 common
and significant improvement afe likely to have 2 hig of Value. In the final evaluation, however,
the regional significance of a propdsal may be detéihitted by looking at its ultimate long-range
ragional benefits in rélaticn to the costs involved with the proposal,

Although the process of identifying regional significance is subjective, NYS LDDs and their local
partners already do a major part of the process in afinually compiling a potential regional and county
workplan as part of the annual CEDS drafting process. The LDDs, as active participants in the REDC’s
economic development planning process, are expected to hélp find consensus that will lead to
development of a prioritized list of steps and supporting projects to reinvigorate and stimulate the
NYS economy from the local level up.

An example of a regionally significant replicable projéct was prototyped by thé Town and Village of
Hamden in 2003. The “Harnden Wastewater Management Pilot Study” completed designis for an
alternative community wastewater treatment system for the Village and wrote generic documents to
assist other communities pursuing similar efforts. Thé project's output genetated model documents

") for other commutiities ih the NYC watershed area and beyond. This project ultimately helped the

~ regions villages and hamlets work through the procéss of determiriing néed and evaluating technical
alternatives for sewer and water infrastructure investment. The approach and materials were then
applied in other communities in Delaware Counity, further leveraging ARC funding. and program effort
actoss a large part of the region.

In northwestern Chautauqua County, a project involving nine municipalities is developing an
implementation plan for the creation of the Chadwick Bay Regional Water District to assist businesses in
these communities, including numerous grape producers, wineriés and juice makers, by addressing serious
water quality and supply problems, The project will fund the initial plafining phasé and help communities
identify additional funding sources for infrastructure investment, théreby levéraging ARC and local
government resources to improve services for residents and businesses in multiple mmunities.

Allegany County is developing a project plan for the intersectidn of I-86 and NYS Route-19, known '
as the “Cross Roads Project,” which will include tourist-oriented retail (hotels atid restaurants),
commercial and industrial elements that will have regional and multiscommunity impacts. This
project has been articulated in the county master plan, and_has lohy been suppérted as a significant
step in the economic development of Allegany County. in a sitnilar Vein, Coalition of NYS Route 7
corridor communities in Schoharie County.are seeking funding to plan for a multi-community water
infrastructure project to expand the commercial viability of the region aiid to build upon the area’s
local attractions to help it become a multi-season recreational dastination,

While not exhaustive, these examples demonstrate the types of ARC projects that have been
“regionally significant” to Appalachian New York. Looking ahead, the NYS ARC Program will

(_ } Continue to leverage the strengths of the region's people and places through technical and financial
investments to spur regional economic growth and development.

New York State Appalachian Region Development Plan 2011-2014 Rite 22



New York Department of State.
Appalachian Regional. AS

, Development Program
October 2012



c
“4

The plan includes overviews of the region, and.program.administration as well as information

on its economic and social status, development challeng general plan for development
within the region. DOS's responsibility, includes drafting the plan’ and coordinating with the
Governor's Office in reviewing:and fransmiting this to the ARC.

¢ Drafting the NYS Federal i
the ARC Code requires that
submit a Strategy Statement'd
contained in its state Dévelopmi
emphasis for. the use of ARG funds aug ty

achieving the goals and objectives
ent shall describe the areas of

or solicitation and cost sharing of

§ preparing ‘the statement and coordinatirig
with the Governor's Office in review! ing ‘and Hat mhitting of the Srinual State:Strategy Statement
to the ARC. a ‘ ed _ ;
* Preparing ‘the Nys Annual ARC ‘Investment package: The ARC's Area Development
program has been an exceptional tool for generating grassroots interest and regional support for
model projects designed to address regional concerns. DOS's responsibility is to work with each of
the three LDDs to solicit and develop applications for Area Development proposals. DOS reviews
and provides an analysis of projects and makes recommendations for funding submission by the
Governor or the Governor's Alternate.

* Preparation for ARC Meetings: Throughout the year, a number of actions need to be
taken and voted upon by the ARC. Section 3.1a of the ARC Code states, "Except as otherwise
specified, the affirmative votes of a majority of the state members and the affirmative vote of the
federal co-chairman are required for the Commission to take any action, including the rescission
of any prior action.” The ARC generally only holds one meeting each year where a quorum

of. governors is required to attend. DOS's responsibility, includes and providing an analysis.of
materials for all ARC. meetings and.coordinating with the Governor's Office regarding attendance
and _appropriate.action on agenda items. F

. Facilitating Voting and Actions of the Commission by Mail Ballot: Section 3.2b
of the ARC Code states that, “Corrimission actions shall be taken only; at) meetings; however,

the federal co-chairman or his/her alterniate and a ma jority of the governors may agree ata
Commission meeting to determine the Commission vote on-agenda items of a Commission
meeting by mail or telegraphic ballot which will be conducted by the Commission Secretary
(executive director)... Mail ballots are accompanied by a resolution approved by the ARC
Alternates for. consideration by the governors. These ballots need. to be expeditiously completed
and transmitted to the ARC. DOS's responsibility includes providing ‘analysis. of mail ballot
resolutions, making recommendations to the Governor, and coordinating transmittal of completed
ballots to the ARC.

* Expediting ARC J-1 Visa Waiver Requests: J-1 visa waivers allow foreign medical
graduates to remain’in the United States after completing residéncy/fellowship training in
exchange for a three-year commitment to provide health cate services in a Primary Care Health
Professional Shortage Area (HPSA) or Mental Health Professional Shortage Area (MHPSA):as
identified by the U.S. Public Health Service. This program has been instrumental in improving the
health care shortage in the state's Southern Tier region, arid is widely favored by local leaders.
DOS's responsibility includes coordinating with DOH and the Governor's Office in reviewing
applications, preparing responses, and transmitting the Governor's endorsement of waiver
requests to the ARC.

46

re New York State Appalachian Region Development Plan 2011-2014

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community development effects is the use of the region's natural resources. The most significant
new development relates to vast. reserves of natural gas within the region. Across most of northern
Appalachia, natural gas-laden shale deposits are stored in a tight formation of stratigraphic (blanket-
like) accumulations approximately 5,000 to 7,000 feet'below ground surface. These natural gas
reserves, once thought impossible to tap due to thé cost, have now become more accessible through
the development of horizontal drilling and hydraulic fracturing techniques. As a result, energy
extraction companies ha come interested in the northern Appalachian Tegion. °

Map 5: Major Watersheds of NYS : Currently, the most accessible layer of natural gas-

> : _— : bearing shale in northern: Appalachia is the “Marcellus
Shale.” Below that are other layers of shale that extend
further orth, which could be extracted in the future.
Map 6 shows the extent of the Marcellus deposits
in Appalachia, a geological coincidence that highly
correlates to the boundaries of Appalachia and to the
NYS Southern Tier.

NYS. DEC and NYS DOH are analyzing; environmental and
health impacts associated with high volume hydraulic
fracturing prior to issuing regarding the regulation of
regarding hydraulic fracturing in NewYork State,.The
potential impacts of drilling in the Marcellus Shale,

both positive and negative, are concerns for the local
governfnents and the. LDDs that are examining'the
subject from a number of perspectives. While the NYS
ARC Program has not taken a position’ on the subject, it
is nonetheless committed to working with communities
in the region to help them assess their ole in managing
the related community development concerns.

The Man-Made Setting

Map 7 shows the 2010 population density of all of
NYS by census tracts. The NYS Southern Tier remains
one of the least developed areas of the state, with the
most sparsely populated tracts located in’southern
Delaware County, southern Schoharie Couinty, eastern
‘Otsego County, and portions of Chenango, Steuben
and Allegany counties. Small portions. df the region are
densely populated, and these are generally surrounded
by suburban census tracts. By comparison, only the
Adirondack Region and the Tug Hill Plateau are more
sparsely’ populated. ,

Transportation

Although the Southern Tier is in relatively close driving range to major ‘urban areas in the U.S. and
Canada, its historical development pattern followed the region's waterways. Unfortunately, the Southern
Tier never experienced the economic booms that accompanied the building of the Erie Canal and, later,
“the NYS Thruway and linking communities from the Great Lakes to the Hudson River. Without convenient,
east-west transportation routes, Southern Tier communities historically became linked more strongly to

7
10 ea New York State Appalachian Region Development Plan 2011-2014

|



am Physical Features and Climate

The physical topography of Appalachian New York.is similar
to the rest of Appalachia. The western and eastern portions
of the region are marked by high hilis (the Catskills to the
east and the Allegany Highlands in the region's west). Most
of the area in the center is a plateau that has evolved over
time into a series of rolling hills and valleys. (Maps (3) and
(4) show the relative elevations and topography of NYS and
the Southern Tier.)

The Southern Tier also contains some of the prime
headwaters of major rivers of the northern Middle Atlantic
States. The New York City Watershed and the headwaters
of the Delaware River and the Susquehanna River ate
located mainly in the Southern Tiers Eastern and Central
regions. The Finger Lakes and part of the Lake Ontario
drainage basin begins in the Cental region. The Genesee
River and the Allegheny River brafich of the Ohio River
drainagé basin begins in the Western region. (Map 5 depicts
the location of the watersheds of NYS.)

A significant limitation to development in the Southérn Tier
is the relative shortness of the agriculture and construction
seasons as compared to the rest of Appalachia. While

} the summer.climate is generally mild; winter can be a
challenge to the economy. In many parts, first frost is in
mid-September and the last frost is often in mid-May. Single
digit winter low temperatures are another adverse factor.
According to the NYS Climate Office at Corheli University,
snowfall maximums of 150 to 180 inches pér yéar prevail in
the Allegany Highlands of Cattaraugus County, attracting
skiers from Southern Ontario and nearby Great Lakes
states. Seasonal snowfall of 40 to 50 inches is normal for
the Chemung and mid-Geneseée River, while the uplands of
the Eastern region (especially Cortland, Chenango, Otsego,
and Delaware countiés) averagé from 100 to 120 in¢hés of
snow per year. This climate pattern has both a positive and
negative effects on the region and requirés special attention
from the ARC and program administrators in planning
and approving projects that require outdoor construction,
In addition, the potential for severe flooding after heavy
précipitation and snow melt is an issue in the region; many
Southern Tier communities experienced major damage
due to flooding of local streams and rivers in the wake of
tropical rainstorms in 2011. The possible impact of adverse
weather on the region's infrastructure, local government
services and economy must always be considered in project

) development. ‘

Another factor with potentially significant economic and

Map 1: US ARC Région

Appalachian New York

‘Source: NYS DOS (2072)

Map 3: Typogte

pUlgSblogy.coinistati-map/new-york shim

Map 4: Elevations 6: hi¥s

Bash Bat Bask

Source: httpu/geclogy convstate-man/new york shtml

New York State Appalachian Region Development Plan 2011-2014



At Binghamton, Corridor T is linked southeastward to New York City’s metropolitan area via the
non-ADHS portion of NYS Route 17/1-86, and northeastward to the Albany-Schenectady-Troy MSA €
by I-88. To the north and south, I-86 and:-88, are linked by I-81 in Binghamton, an interstate that
provides surface access to the Canadian border via Cortland ce inty, Syracuse and The NYS Northern
Tier, and south to northeastern Perinsylvania' 5 Scranton area.

Corridor T has generated substantial commercial traffic that continués to increase. This corridor
has helped corporations already’ located within Appalachian New York remain competitive and
has encouraged the development of. new, retail and Industrial Corridor T has also opened up
the region and its attractions to travelers from metropolitan centers such as Boston, New York and
Philadelphia, providing residents of the Southern Tier with add al economic, social and cultural
opportunities. SOE ,

ADHS Corridors U and U-1

ADHS Corridors U and U-1 connect Appalachian NYS to the rest of the ADHS and interstate networks
to the south. Corridor U runs along the path of U.S. 15 from Williamsport, PA and 1-180 to U.S. 15's
junction with PA State Route 328, where it veers northward as PA State Route 328 for 13.2 miles until
it crosses the state line. In NYS, it.continues north as NYS Route 328 until it intersects with NYS Route
14, which connects with Corridor T at Horseheads, NY. Most of Corridor U is composed of U.S. Route
15 in Pennsylvania. The northern portion of Corridor U, however, veers east off U.S. Route 15 on SR
328 to the Elmira Arterial. A rerouting of the original plan brought the northern tip of the Corridor
through the center of the City of Elmira as an arterial for its last few miles, the construction of which
has resulted in positive impacts.

Corridor U-1 extends 12.5 milés as U.S. Route 15 from Pennsylvania’s SR 328 near Tioga Junction, PA,
to Corridor T in the Painted Post area near Corning. In NYS, 5.8 miles of this corridor are authorized
for ADHS funding, the first mile of which is already open to traffic from the Pennsylvania border to
Watsons Creek Road in Lindley, NY. Corridor U-1 will support the economic expansion in the Town

of Erwin and adjacent areas. Congress has recognized the importance of Corridor U and U-1 to
accommodate interstate and international travel by defining U.S.‘Route 15 as a high priority corridor
and designating it part of the future interstate system as an extension of Interstate 99, which runs
north-south through central Pennsylvania and will eventually interconnect the Pennsylvania Turnpike
with I-80 (which runs east-west through central Pennsylvania) and I-86.

Effects of the ADHS on Appalachian NYS

Conversion of NYS Route 17 to an interstate highway has increaséd mobility and tourism across the
Southern Tier, while reducing costs and expanding the labor market for the region’s businesses. As a
result of market accessibility improvements, Appalachian New York is estimated to gain $2.1 billion in
economic activity annually by 2035. The proposed linkages with Corridor U and U-1 are expected to
amplify the beneficial effects of the ADHS on the Southern Tier’s economy. Construction of the ADHS
has already had the following positive impacts on regional industries:

* Manufacturing: |-86 has allowed for development of industrial corridors that include:
ceramics and advanced materials from Alfred to Corning, rail equipment and diesel engines
from Jamestown to Elmira, and an aerospace corridor from Elmira to Binghamton that includes
helicopter manufacturing in Owego and Elmira and simulators and avionics (aircraft control
equipment) in Binghamton. Local economic development officials estimate that 25-40% of the
large manufacturers in the region would have relocated if not for the ADHS improvements.

* Tourism: As an east-west travel alternative to the NYS Thruway (I-90) to the north and I-80 me

42 ee New York State Appalachian Region Development Plan 2011-2014



Manufacturing Technology Institute
it Jamestown Community College

hautauqua County.

General Goal 2
Strengthen the Capacity of the People of Appalachia: to Compete
in the Global Economy

The NYS ARC Program is committed to working with the region's communities and LDDs to ensure

that the Appalachian New York workforce is ready to compete in the world ecoriomy. Workforce
capacity and training has also been identified as an issue by the REDCs as they work with business

and community leaders to develop a competitive labor pool. This includes enhancing skills through €
training and education, improving access to quality child care to enable parents to fully participate in “
the regional economy, working to increase educational attainment and achievement, and enhancing
access to affordable, high-quality health care. In pursuing these objectives, the NYS Appalachian...
Regional. Development Program will collaborate with a broad range.of programs, partner agencies,

and local public and private leaders. .

Workforce, Education and Health Overview
Workforce Conditions:

palachian New York's civilian labor force wa:
population, For much’ of the past century, thé Souther x
eventually many of these manufacturing jobs became obsolete
the'world. As a result, the Southern Tier's labor forcé' began tot
unionized jobs toward relatively lower-skilled, loweér-wage service ‘and cornmmercll sect
just the past 20 years, manufacturing fell from the inkirig jobs category in:th
‘largest category, employing just 9. 2% of clvillap workers. Healthcare is now the larg

category, employing. 16.6%, of. the region's workforce. Educational services ranks Second (from fourth
in2000) employing 12.9% ofthe civilian labor force, Retail trade employs 12 ; Maintaining Its
decade-long tank as the 3rd latgest dccupational category. Together, ‘thesé four jobs categories.

. (héalthcare, education, retail and manufacturing) employ just over 51% of the region's workforce.
‘Two:additional. categories, tourism and food services (7.6%) and public administration (7.1%):are also
significant industries within the region,

Among these top job categories, manufacturing and technology careers have tended to have the €
largest contribution to the regional economy. The NYS ARC Program, the LDDs and the REDCs ~

30 We New York State Appalachian Region Development Plan 2011-2014


* Legislative Outreach and Liaison: The ARC's States’ Office provides daily representation
for the ARC states and coordinates much of the outreach for the states on Capitol Hill.
However, that office occasionally requests that the State ARC program reach out to New. York's
Congressional delegates. in addition, the program's grassroots approach to area development
tequires regular interaction with local elected officials and ‘egislators at the LDD level. DOS's
responsibility includes facilitating interaction between the federal ARC programs staff arid the
State's legislators.

I. Project Application, Performance and Reporting:

All NYS ARC Program projects must address one of the four Strategic Goals for the Appalachian
Region identified in the ARC Strategic Plan and one of the NYS strategies identified in the most
tecently approved NYS ARC Program Strategy Statement. These strategies are fundamental to
tracking the success of projects and justifying expenditure of ARC résources. Potential project
sponsors must clearly show that-the activities they propose will implement one of the strategies.

Because NYS receives many more applications for ARC funding than can be approved, an extensive
review process takes place, first at the LDD level and then at the DOS program level, before projects
are recornmerded for transmittal to the ARC. Early in the solicitatiori/application drafting process,
LDDS work closely with project sponsots and determine each applicant's financial need. When the
LDDs vote on the applications and score the proposals, financial néed is one of the key parts of
the scoring rubric. Finally, when determining NYS's project recomméndations, DOS considers the
rankings of thé LDDs and then independently reviews all proposed projects, alsé following the
grant-review rubric.

In addition, all project sponsors are required to identify the outputs ahd outcomes the project will
achieve and thé dates by which these measurés will be achiéved: Output measures quantify a
project's immediate products and activities, which have béen identified in the project application.
Outcome measures assess longer-term results of project outputs by gauging project accomplishments
in quantitative terms. Sponsors must formally agree to provide the LDD with prdject performance
information during and after the project for a period of three years. The LDDs éollect performance
data for each project for use on a Semi-Annual Status Report form developed by DOS. Annually,

DOS compiles a performance report that lists aggregate outputs ahd outcomes for each ARC Goal
and NYS Strategy. It includes measures.used solely by NYS to supplement ARC's own performance
measures and provides a more complete appraisal of project performance.

1. Performance Measures

As an investor in grassroots economic development, the ARC's performance is in large measure
dependent on the achievernents of its focal, state, and regional partriers. To measure its
effectiveness, the NYS ARC Program will look at the following four areas of performance:

« Leverage. ARC will measure additional public and private fifiancial and technica! support
attracted by ARC investments.

* Jobs. ARC will gauge its involvement in job-generating programs by measuring both jobs
created and jobs retained.

* Employability. ARC will measure improvements in high school graduation rates, increases in
college attendance and graduation rates, the number of participants completing workforce
training programs, and the number of children served in early childhood education programs.

© Infrastructure Development and Connectivity. ARC will look at the number of citizens served

New York State Appalachian Region Development Plan 2011-2014 icy a7



, Map 5). ADHS Corridor T (also known. as NYS 17/ I-86), scheduled for completion in 2013, spans

} the Southern Tier from Binghamton. to Erie, Périnsylvania, and has opened up the region and its
attractions to travelers from metropolitan cefiters such as Cleveland, Toronto, Boston, New York City
and Philadelphia. ‘The near-comipletiott of I:86-has-advanced THE FEGION’s ability to Connect efficiently
to large markets, bringing renewed economic Optimism to the Southern Tier. Regional leaders are
Now promoting the region as 4 crossroads, highlighting connections to I-81 and to larger markets
nearby. In addition, the ADHS Corridors have boosted and helped rétain manufacturing in the region
and stimulated tourisin. County economic development organization’ and the LDDs have worked to
capitalize on the economic poténtial of the ADHS and Stimulate Interest in intermodal connections.
The NYS ARC Program will continue to support these efforts nd éncourage nodal development along
thé ADHS torridors that creaté few opportunities for employmerit and sustainable development.

* Foster international Export Trade

Horhe to many corporaté innovators, the NYS Southain Tier has playéd a major rolé ih inndvative
product creation that contributed to statewide merchandise exports in 2010 of $67.7 billion. The NYS
volume of international trade ranks third amorig states in exporting, behind only Texas ($206.6 billion)
and California ($143.3 billion). Still, significant competitive challenges face NYS exporters. The NYS
ARC Program is working with NYS Empire State Development (ESD, the state economic development
agency) and the ARC to help the region's iridusifial base develop efféctive international market entry
strategies. The ARC's Global Appalachia Export Initiative offers doliar-for-dollar matching funds to NYS
and the other ARC states for support of small-to-medium size businesses within the région seeking

to expand exports. The NYS ARC Program and the LDDs will work tollaborativély with ESD, the ARC,
and the REDCs to promote international commerce betwéen the région and the rest of the world.

; ') General Goal 1 Summary

All of the ARC's strategic objectives for ARC General Goal 1 aré consistent with the NYS plan for
economic development in the ARC Region. The counties, commiunitiés ahd LDDs ih Appalachian New
York are working collaboratively with their new REDCs to address the current e@conorhic coriditions
and to revitalize the région and labor markets. Looking ahead, the NY$ ARC Prograrti will continue
to leverage the region’s strengths with the resources of the ARC to hélp Southérn Tiér communities
overcome economic obstacles to attract new businesses and jobs intto the region.

} coming,
Steuben County
(Courtesy: Gaffer District & www. fingerlakeswinecountry.com)

New York State Appalachian Region Development Plan 2011-2014 Ea 29



To foster. a developmental focus on Appalachian New York, DOS cooperates closely with the following
state agencies for the benefit of the region: €

* NYS Department of Transportation (On, which administers the Appalachian Development
Highway System (ADHS) Program in NYS and collaborates with the LDDs and DOS on regional
transportation projects and policy; ::

* NYS Departments of Health (20h), which ordinates with DOS on rural and regional health
programs and policies;

ESD), which assists the NYS ARC Program by
providing representation on Al le Advisory Council (ETAC), advising on tourism
and asset-based development policies an r ojects, and providing demographic and economic
Statistics essential to assessing th condition of the. region and priovitzing its needs;

+ NYS Empire State Development Corporat

* NYS Environmental Facilities Corporation (EFC), which works with DOS and other agencies on
infrastructure issues and assists local governments to financé such projects;

© Office of Community Renewal (OCR), which works with communities on Main Street Grants and
Community Development Block Grants (CDBG) programs; and

* NYS Education Department (SED), which works closely with DOS on education issues and is
the initial point of contact for the ARC supported Math/Science/Technology Institute held every
summer at the Oak Ridge National Laboratory in Oak Ridge, Tennessee.

tn addition, the NYS ARC Program coordinates with the following other agencies on a.regular basis:
NYS Department of Environmental. Conservation (DEC), NYS Department of Labor (DOL), NYS Energy
and Research Development Authority (NYSERDA), NYS Office of Information Technology Services
(ITS), NYS Department of Parks, Recreation and Historic Preservation (OPRHP), and the Office of
State Comptroller (OSC). The program also enjoys a close working relationship with the United
States Department of Agriculture's Office of Rural Development, and with Appalachian New York's
congressional delegation.

A final key to community development efforts in the region is DOS’s ability to coordinate the use
of internal programs. The Department's Office of Local Government Services and the Office of
Communities and Waterfronts provide direct technical and financial community development
assistance to.the Southern Tier. Programs available include the:

* Local Government Efficiency program, which focuses on implementing opportunities to reduce
local government costs through cooperative efforts;

* Land Use Training and Technical Assistance program, which works with the mostly volunteer local
government land use review boards to ehsure a base level of capacity;

* Local Waterfront Revitalization (LWRP) program, which helps communities maximize the potential
of their water resources and waterfront locations; ‘

Brownfield Opportunity Areas (BOA) program, which helps communities understand and leverage
underutilized and vacant properties as resources for community development; and

* Code Enforcement and Administration (DCEA) program, which works with local governments
to help ensure the health and safety of al! New Yorkers through enforcement and management =
of the state’s Uniform Fire Prevention and Building Code and the State Energy Conservation €
Construction Code.

6 et New York State Appalachian Region Development Plan 2011-2014



Table 3: Leadership Type for Southern Tier Counties

County Executive / Admini trator

Broome* (1966) County Executive County Legislature
STE Chenango Ch Board Board of Supervisors
STE Cortland Administrator** County Legislature
STE Delaware. Chair of Board Board of Supervisors
STE Otsego Chair of Legislature County Legislature
STE Schoharie Chair of Board Board of Supervisors
STE Tioga Chair of Legislature County Legislature
STE Tompkins* (1968) Administrator County Legislature
STC Chemung* (1973) County Executive County Legislature
STC Schuyler Administrator** County Legislature
STC Steuben Administrator County Legislature
STW Allegany Administrator County Legislature
STW Cattaraugus Administrator County Legislature
STW haa County Executive County Legislature
* Charter County (year enacted)
** Cortland and Schuyler counties hired County Adsinistrators but the Chief Administrative Official is the Legislative Chair
Source: NYS DOS Local Governmerit Handbook, p,
hitp-/Awww.dos.state, iyudlgublcatonsoral Goverment Handbook.pdf

Community Capacity Development Priorities

The.NYS ARC Program has historically helped enhance community capacity through the technical
assistance provided by the LDDs.and DOS and through targeted projects to help communities leverage
ARC funds into strategic plans that can facilitate regionally significant projects.. For example, an ARC-
funded technical services project for the Watkins Glen Lakefront Redevelopment Area resulted in an
effort that has transformed the Watkins Glen lakefront into a tourism arid commercial destination. The
ARC also underwrote part of the expenses to create the Southern Tier West Development Foundation,
a non-profit organization with the capacity to partner within the region and help fund regional
projects with Contributions from civic donors. The NYS ARC Program has also supported regional

telecommunications initiatives, inte-municipal infrastructure studies, regional GIS mapping projects, and
other significant economic and community development plans and studies. These projects demonstrate

that modest corhmunity capacity efforts often reap large benefits in facilitating regional development.

New York is unique among many of the ARC states, in that it annually invests additional ARC Area
Development funds to buttress the LDDs’ administrative grants from the national ARC office. This
direct investment in LDD capability enhances local capacity-building and technical assistance to
facilitate project development and targeted area-use planning and assist communities in meeting
environmental regulations. NYS supports leveraging the ARC Program to expand community capacity
to develop leaders and strengthen community capacity.

The effective analysis of community and regional needs must be augmented through a dynamic data
collection and analysis program. This includes expanding the GIS capabilities currently offered by the
LDDs within Appalachian New York. Over the next four years, the NYS ARC Program must ensure
that these deployment efforts and strategic application of data analysis are used to create regionally

20 eat New York State Appalachian Region Development Plan 2011-2014



expected to be a catalyst for future economic development, and construction of the 235-mile optical
’ fiber backbone ring is slated to be completed by late 2013,

In the Southern Tier West (STW), the LDD has partnered with local providers to take. another
innovative approach to connecting the region by using its ARC-supported GIS capacity to help
constituent counties and municipalities effectively locate wireless broadband transmission towers to
maximize coverage. Major portions of the planning and implementation of this proposal have been
funded through the ARC. The NYS ARC Program will continue to aggressively pursue opportunities
for broadband deployment and technology use through these joint public and private efforts.

The NYS ARC Program has worked to complement the work of ITS in facilitatirig a comprehensive
broadband strategy for infrastructure build-out and digital literacy, economic development, and
expanded use of online government services within the Southern Tier. The overall strategy is to ensure
that major industrial and commercial users are connected, and that more “e-citizens” (those who

are digitally literate) have affordable Internet access so they can participate in the information age. In
addition, since agriculture and tourism are important aspects of the region's economy, the NYS ARC
Program will continue to plan for bringing affordable broadband to the region's farms and tourist
destinations. Future projects will use ARC funding to develop stratégies that use telecommunications
funding for educational excellence, community capacity and economic development.

Brownfields and Underutilized Properties

The Southern Tier possesses'a number of under-used or abandoned industrial ahd commercial sites.
The strategic restructuring of the region’s economy relies in part on presérving and: restoring obsolete
and/or abandoned properties such as brownfields.

NYS encourages local governments to implement sustainable community economic development
policies. NYS‘s Smart Growth Public Infrastructure Policy Act of 2010 (“Smart Growth Act”) requires
state agencies and authorities that approve or fund infrastructure projécts to ensure those projects
are consistent with statutory smart growth criteria. The Act promotes development in “municipal
centers,” including downtowns, main streets, central business districts, brownfield areas, local
waterfront revitalization areas, environmental justice areas, Hardship/low-income areas and transit-
oriented development areas. !n that course, it supports I development and nodal land-use, and
requires consideration of natural resource protection, mobility and transportation choices that reduce
car-dependence, and regional partnerships promoting cost-effective delivery of services.

While Southern Tier offers new employers and prospective employees a high quality of life,
companies considering relocating to the region also look for shovelready sites at intersections of
existing transportation networks, many of which aré not necessaiily located in “municipal centers”.
In many of these cases, such development aligns with the “nodal development” strategy adopted
by the Southern Tier's 86 Coalition, which has identified some of the most attractive sites for future
development along new ADHS corridor nodes linked to intermodal networks.

NYS's ARC Program aims to reconcile any potential conflicts between economic development and
smart growth priorities. All regional development construction projects proposed for funding through
NYS's ARC program will be reviewed by DOS’s Smart Growth Committee; a collaborative process
meant to ensure economic development initiatives maximize opportunities to revitalize cities, villages
and hamlets, and develop locations strategically tied to the economic development of “municipal
centers”. In addition, NYS's ARC Program encourages local collaboration with other agencies and

, Programs that foster community revitalization and the redeyelopment of obsolete and/or abandoned

’ properties into productive community assets.

New York State Appalachian Region Development Plan 2011-2014 37



The revitalization of the Southern Tier's urban and village centers is also a priority supported by the
NYS Office of Community Renewal (OCR), ‘the Environmental Facilities Corporation's Co-Funding
Initiative and by other state programs, such as the BOA program and the LWRP administered by the
Department of State. Another partner is NYSERDA, which promotes green solutions anid technology
development throughout NYS. As required by the ARC, NYS'’s ARC Program, will encourage energy
efficiency in planning, design, coordination, and construction practices for all NYS infrastructure
projects. While-not directly required by NYS's ARC Program, LDDs and local governments have been
encouraged to leverage’these funding programs to advance regionally significant revitalization
projects that support goals identified by the regional CEDS or REDCs.

Water/Wastewater Infrastructure

Economic contraction within the Southern Tier over the past 50 years has led to deterioration in the
region’s municipal tax base and a decline in resources available for maintenance and modernization
of infrastructure. The funding of costly repairs and mandated upgrades to drinking water and
wastewater treatment systems is a major challenge. Of particular concern are communities with
significant health and safety problems due to inadequate or non-ex istent water and sewer systems.
Many municipalities are forced to rely on obsolete infrastructure that must be upgraded to protect
public health or to comply with federal and state regulations.

Jn NYS, water and wastewater infrastructure is largely monitored and regulated by DOH and DEC,
while the EFC is the primary state funding agency for these infrastructure projects related to the
repair or replacement of these systems. ‘The NYS Office of Community Renewal and the United
States Department of Agriculture Rural Development (RD) also offer funding for such projects... In

the Southern Tier, the LDDs have helped communities identify funding for improvements, using ARC
resources to supplement other programs for water and sewer system upgrades and new construction.
The ARC also participates on the NYS Water and Sewer Infrastructuré‘Co-Funding Committee, which
focuses‘on improving the coordination of funding for water and sewer infrastructure projects. The
committée also includes representatives from DOH, DEC, DOS, OCR, EFC, NYSERDA, the Office of the
State Comptroller, and USDA-RD.

The NYS Drinking Water state Revolving Loan Fund (DWSRF) isan important fuinding se source for water
systems upgrades and'provides subsidized low-interest loans to municipalities for drinking water
infrastructure improvements, Financially limited communities may quality for interest-free loans or
hardship grants. Similarly, the Clean Water State Revolving Fund (CWSRF) provides subsidized low-
interest long term financing and interest-free short term loans for municipally-owned point source
and nonpoint source water pollution control ‘and | prevention projects. These programs have been a
great boost to the r Tegion. Over the past 20 years, the DWSRF and CWSRF have provided over $500
million in long term financing to 200 ¢ommunities in the 14-county Appalachian region.

The NYS ARC program can best leverage its funds through projects that provide technical assistance
for infrastructure during the planning stages. In the past, The NYS ARC Program limited ARC
investment for infrastructure construction projects to $150,000 per project, making the program's
overall impact to the total funding stream relatively minor. Looking ahead, the NYS ARC Program will
increase the funding limit for infrastructure projects cited in the CEDS or by the REDCs as regionally
significant priorities, ‘and where such a level of support is essenitial for the projéct’s completion. In
the meantime, The NYS ARC Program will work with the LDDs and project sponsors to support co-
funding arrangements to assist the municipalities finance their infrastructure investments.

Transportation and Intermodalism

Supporting improvements in intermodal transportation is another commonality between strategies
of the NYS ARC Program and the REDCs’ for providing the region's businesses with fast, efficient,

ee New York State Appalachian Region Development Plan 2011-2014

€





Table 4; Appalachian New Yo!
Southeri-TiersDistressed Cai

regions of the country, the
_ aging of the population
has led to a higher gross
mortality, and in-migration
has been insufficient to
counteract these trends.
As mentioned earlier,
Tompkins County, with
its small, university-city
‘lifestyle, has bucked the
Southern Tier's negative
or slow growth trend and
has become an example of
an environment that can
attract'in-migration from
«the. rest of the country
and world.

Although unemployment
has not hit the NYS
Southern Tier as badly

as other parts of the
country, the NYS ARC
Program seeks to mitigate
the effects of years of
economic recession. Most
severely affected has been
« Schoharie County with
over 9% unemployment,
and Cattaraugus,
Chenango; Delaware and
Steuben counties with over
».8% unemployment. These
countiés are particular’.
targets for workforce
development sirategies;:
Conversely, Tompkins and
Schuyler counties have
weathered the downturn
better, with less than: 7%
unemployment.

(See Map 15).

.. Another. regional concern is that property anid.income-taxes, energy costs, and other business expenses
(indudihg unemployment and workers compensation insurance) are comparatively higher in NYS,
posing a challenge for the Southern Tier in competing with Pennsylvania's Northern Tier and other
locations in attracting manufacturers and other new businesses. Concurrently, as the region's productive
18-to-65-year-age group shrinks, the burden on local governments to support income assistance and
health care programs increases.

26 es New York State Appalachian Region Development Plan 2011-2014

€



TABLE 1: County Economic Status, Fisca Os
Bre 2 Coinnty ==". Three-Year? -PerCapita:s Poverty “Por tapita *22POMI2 7 <5 site’ Inelex Vales “Quart:

2 Egonomle "°° ~ average. market : oT Make Pereont oF = i Ranik
“Unemployment: Income”. 2008, -Uneniployment °°" incomno, «Us Bareontof °° Value,’ (of3,a40
Rate, 2008" 2008 Raters"? Porcentat:” Average,” = US; " -FY2012 ,“countesin =
© po07-2009 = (S) S: Percentet’- U.SiAveraye,"* / Inversed,.° -verage, =
nM) ey Z US. Average, 2008-7 +: 2008 |< 2008-2008

oe eee : 5, 2007-2000. ae

United States : $34,004

ers : 68 2ae1 | 184 | 4036 TAT : 114.2 - . :

NewYork - 6a 40,904 | 138 928 1203 a4 102'8 - : -

Popelacion - 62 25,203 | 15. 944 4A. 1349 | 412.2 : : :

County

Alegary | Transitional 69 19010 | 168 | 1045 659 aeo | 1248 | 136 2,228 3

Broome | Transitional 64 26901 | 15 92.3 794 126 aia2 | 1099 | 1303 2

Cattaraugus | Transitional 66 23,579 | 157 | 1005 69.3 i442 | 1165 | 1204 | 1,757 3

Chautauqua | Transitional 64 22,003 | 163 928 647 1545 | 1209 | 1227 | 1e42 3

Chemung —_| Transitional 63 25,457 | 158 96.7 748 1336 | 1173 | 1159 | 4607 3

Chenango _ | Transitional 67 23dio | 125 | 1023 68 147d ozs | i142 | 1558 3

Cortind | ‘Transitional 69 23307 | 145 | 1054 685 aso | 4074 | toa | i724 3

Delaware | Transitional 62 23,212 | 464 952 683 wes | 1124 | 118 1674, 3

Otsego | Transitional 59 23,646 | 15.2 807 695 wage | 128 | 1154 | 1506 3
[ Schoharie | Transitional 7 26,969 | 44 108.4 764 4309") B18 | 10? | 4.270 2

Schuyier | Transitional 64 2400 | 99 74 709 1a. 736 | 1039 | 4167 2

Steuben | Transitional 7 29320 | 138 | 1068 862 116 102.3 | 1084 | 1328 2

Tioga Transitional 6 26978 | 40 81.8 793 1264 42 ora 908 2

H Tompkins Transitional AA 29,046 20.2 67.5 85.4 17.4. 150 | 415 | Ee 1446 2 €

(Source: htto://www.are.gov/reports/region_reportasp?FIPS=36999&REPORT_ID=37) : .
ARC's Mission

ARC's mission is to be a strategic partner and advocate for sustainable community and economic
development in Appalachia. 5

ARC's General Goals

General Goal 1: ‘
Increase job opportunities and per capita income in Appalachia to reach parity with the nation

General Goal 2: .
Strengthen the capacity of the people of Appalachia to compete in the global economy

General Goal 3:
i Develop and improve Appalachia’s infrastructure to make the Region economically competitive

General Goal 4:
Build the Appalachian Develapment Highway System to reduce Appalachia’s isolation



Cattaraugus County
Atish country barn

Guidelines for NYS ARC Program and
Project Development

1. ARC Program Organization And Process Overview:

The NYS Appalachian Regional Development Program is coordinated by DOS's Divi sion of Local
Government. Governor Andrew M. Cuomo’s Alternate to the ARC is Dierdre Scozzafava, Deputy
Secretary of State for Local Government. According to Article 6-B, Section 153 of NYS Executive Law
the Department of State is:

“To act as the official agency of the state for the purpose of administering, carrying out and
otherwise cooperating with the provisions of thé federal Appalachian Regional Development Act
of 1965 as heretofore and hereafter amended [40 U.S.C.A., Appéndix]; to apply for, accept, and
expend funds made available by the federal government pursuant to such federal acts and enter
into any necessary contract or compacts in conhéctioh therewith, and to take'any further action
which may be required under the terms of any sich federal act.”

In addition, several New York State and federal conrnunity development agencies assist DOS in
developing policies and priorities for the ARC Program. The program is staffed within DOS and
implemented at the local levél in concert with threé LDDs. The LDDs ae essential participants in the
policy development process, and each is governed by é board of local leaders and professionals who
keep the LDD closely tied to the local economic and municipal structure of their constituent counties.
This bottom up approach is a Key to the effectiveriess of the NYS ARC Program.

The NYS ARC Program is responsible for the following activities:

* Drafting the NYS 4-Year Appalachian Region Development Plan: According to
Section 5.3 of the ARC Code, “The governor of each Appalachian state shall submit a State
Appalachian Development Plan within 10 riionths after taking office. The plan may be made
effective for the entire term of the governor or for such shorter term as the governor deems
appropriate, except that an approved plan shall remain effective until such time as it is amended
or a new plan is approved by the Commission.”

This current version of the NYS Appalachian Region Development Plan establishes the policy
framework and provides guidance for the investment of ARC resources in Appalachian New York.

New York State Appalachian Region Development Plan 2011-2014 45

i
'
|
|



Map 21: NYS and Adjacent ADHS and interstate Corridors
‘ADHS Corridor Status
(os of930.2608)
excrimot Open to Trafic
‘emma Not Open t0-Tralfio

Source: wiwarcorg

to the south; -86 has increased through traffic and spurred travel to area attractions such as the
Chautauqua Institution (160,000 visitors per year), Peek’n Peak Resort (400,000), Allegany State
Park (1 million), Seneca Allegany Casino (over 1 million), the Holiday Valley/Ski areas (1.2 million),
Corning Glass Museum (350,000) afd the Finger Lake and Lake Erie Wineries. Jamestown’s
economic development officials describe I-86 as a boon to théir aréa and a’kéy to future plans
to redevelop the waterfront area into a major récteational facility that will attract thousands of
people annually. In addition, the Corning-Horseheads-Eimira région is seéirig increased demand
for commercial sites to capitalize on access to the ADHS.

New hotels and restaurants are being built along the I-86 Corridor to accofrimodate tourists and
increased through traffic. In addition, the ADHS has helped support tourism in other parts of the
region that are not directly within the ADHS corridors of development. Ellicottville, Cattaraugus
County's preeminent ski destination, is one such village that is experiencing 4 rise in tourism

and tourism related investment. The Village of Watkins Glen has leveraged its improved access
into the Finger Lakes region to become a vacation destination. Residénts of fietropolitan areas
such as Cleveland, Toronto and New York City no longer bypass thé Southern Tier and are now
participating in its tourism economy because of the ADHS in NYS.

* Distribution and Logistics: Corridor T's interconnection of major Eastern and Midwestern
markets has helped grow and attract several of the largest distribution companies in the United
States to the Southern Tier, as well as the logistics operations of some of the country’s best-
known retailers. This includes the distribution of food products along the entire Eastern Seaboard
and consumer electronics for the Northeast. Several of these companies have made very large

New York State Appalachian Region Development Plan 2011-2014 rit 43



2. Southern Tier Céntral (STC)

The three-county STC region is supported by the Southern Tier Central Regional Planning and
Development Board (STCRPDB), and includes the southerly portion of the Finger Lakes, extending
southward to the Pennsylvania border. Most of its 2,136 square miles are within the Chemung River
arm of the Susquehanna River Basin. The landscape Is characterized by rolling hills and steep slopes
which rise almost 2000 feet above sea level. The hilltops,-representative of the Appalachian Plateau,
are generally level and often crowned by fields or pasture. Mixed deciduous forests cover the hillsides

while the most valuable agricultural lands aré found in the valley floors and on selected hilltops. Most
urbanized areas are limited to the river valleys.

This thréé-county region is settled at a Map 10: Southern Tier Central
low to moderate average density, with a |
2010 population of 206, 163, following
a continued downwaid population trend
and out-migration pattern over the last
several decades. Since 1990, the region’s
population has fallen by 3.2%. The
principal cities in the region are Elmira, : ne :
Corning and Hornell. The Elmira area fe —— \
includes all of Chemung County as an
MSA, while Corning was designated an
MSA in 2003. There are three additional
urban centers: Watkins Glen-Montour

Southetn Tier Gentral Region of New York State ]

visa ene, e H ree i

__. Falls, Bath and Wayland. These six urban ae -
{  } areas constitute about one-third of the as = =n }
total population but cover only 2.5 % of Seal

thé total land area.

The STC region maintains a rélatively strong manufacturing base with a trend toward increased

employment in the service sector. The manufacturing sector has evolved from reliance on traditional
“bolt-on” production to technology-driven enterprises. Schuiylér and Steuben counties have mioré
agriculturally-oriented economies than

Chemung County, although Steuben Map 11: Southern Tier West

County is home to Corning Incorporated _Southern Tier West Région of New York State
and related manufacturing and research
facilities. STC’s agricultural sector includes

extensive dairy and livestock production, r = ‘

and is home to the southern portion of Sar. ior Fea won rl =] |
New York's Finger Lakes Winé Country. ponnf ow haan seu [sea i
Partially capitalizing on this attraction, the at pai) A vase ci cn atl ae -

local tourism industry remains strong. The 5 icf Yas aa ;

physical and historic aspects of STC’s region meat tea ie =,

also continue to be important economic ii Gd cee a con ne ie

resources.

3. Southern Tier West (STW) Lobel Development Distict Hondquartos |

i)

The Southern Tier West region, including [¢=g—e a me
; Chautauqua, Cattaraugus and Allegany ‘
~-' counties, is located in the far western comer of NYS. Itis supported by the STW Regional Planning |
and Development Board (STERPDB) and is bordered by the Commonwealth of Pennsylvania to the !

New York State Appalachian Region Development Plan 2011-2014 ARC Ma :


' newcomers migrate to the region.

)

however, is the rate at which Map 12: Appalachian New York Out-Migration

Not Migration
When young adults are asked peared
about regions in which they would het
like to settle, job énvironment and
local amenities are listed as highly
important factors. Tompkins County,
home to the highly regarded Cornell
University in Ithaca, a smail city with
mahy cultural and which hewcomers
migrate to the region. When young
adults are asked about regions in which they would like to settle, job environment
and local amenities are listed as highly important factors. Tompkins County, hore
to the highly regarded Cornell University in Ithaca, a small city with many cultural
and recreational amenities, does well in attracting and tetaining néwcorners. Thé
city has become a hub for growth and has experienced 4 “brain gain” that other
parts of Appalachian New York hope to emulate.

Source: Bingharnton University

Map 12 surnmarizes net migration by county between the years 2000 and

2010. During this period, the eastern most portion Of Appalachian New York and Tompkins County
experienced modest in-migration of population. In-friigration into the central portion of the region
was mixéd, while the STW région experienced higher rates of out-migration than in-tigratioh.

Appalachian New York: A Citizen Perspective . ;
Another important dimension of Appalachian New York is its civie’settirig and its residents’ views on
local economic and social Issués. In the Sprig Of 2011, the Cornmunity and Regional Development

lastituté at Corhell Universi Upstate Su

nic Issues afe on the minds of both Appalachian New York residents andl upstate |
Yorkets: Citizetis within Appalachian Néw) York cOhsider thé follawirig to be substahtive lea
issues: employment (259), economic growth (20%), municipal budgets (185%
migtation (10%). Upstate residents 4s a whiolé view the following a8 priority issude! ériployment

(25%); taxes (16%) ahd é¢ohomie growth (13%), :

*A lack OF available jobs was Ci
‘intthéir community, while the

: #5 oftén does hot Indet their requifarmahts,

“« Citizens ware askéd to rank four éeohottiic deévelopttient pnorttiés In Order of inipartahe
Thee rankings Were converted, through the creation of ah index; into dn overall faking oF
four strategies. “Creating local jobs” was harrowly deemed as the rfiost important priority

in Appalachian New York, followed by “improving quality of life,” “reducing poverty," and
“increasing the tax base.”

New York State Appalachian Region Development Plan 2011-2014 AARC] 15



New York State
Appalachian Region Development Plan
2011 — 2014

‘A Strategic Plan for Appalachian New York

Table of Contents

Baseline Goal. .2...........5 2006 DeLee eed nee e eee ne cee ntadaneeeeeeununees 7

Develop leaders, strengthen community capacity and foster regional approaches
to economic development

General Goal 1... 0... cei cece eke cece ceed deeeesededubunataecdseeaeanauneaaes 24
Increase job opportunities and per capita income in Appalachia to reach parity with the nation
General Goal 2.............0.08 eee e tented nena ene nt eee eneteeens 30

Strengthen the capacity of the people of Appalachia to compete in the global economy

General Goal 3

Develop and improve Appalachia's infrastructure to make the Region economically competitive

General Goal 4...

Build the Appalachian Development Highway System to reduce Appalachia’s isolation
Guidelines for NYS ARC Program and Project Devélopment .......... beeen een ones 45
Appendix A: Dictionary of Acronyms

New York State Appalachian Region Development Plan 2011-2014 re 1



Map 19: Broadband Connection Speeds Acr

Broadband Availa ity and Speeds
New York State

FBBBR No Broadband Availab\
BERR Uninnabitet Areas: ©

Source: NYS Ofna Ger Seay Adapted oy W¥5 DOs

contribution is essential. The NYS “ARC Program’s technical assistance and community capacity role
has its greatest leverage impact where infrastructure construction requires financial backing from
the ARC and projects have been identified by the REDCs or the LDD's CEDS as regionally significant,
Furthermore, the NYS ARC Program will place the highest emphasis on projects with an important
projected economic developrnent i irnpact. :

Telecommunications/Broadband

Appalachian New York is one of the largest parts of the state with significant pockets of slow or no
broadband availability. (See Map 19). The highest-speed conne tions are in highly traffickéd corridors
between major population areas. Sparsely populated rural areas like Appalachian New York are not
nearly as well-connected, reducing the region’s competitiveness in retaining businesses, families and
young adults. Encouraging strategic investments in’ affordable high-speed broadband infrastructure
that increases local and regional connectivity is one of the region's highest priorities. The NYS ITS.
Broadband Program Office administers the NYS Universal Broadband Initiative, which seeks to.ensure
that every New Yorker has affordable, high-speed access to the Internet.

Several telécommunications initiatives have been started through ARC assistance... For example,

after completing a needs-summary with ARC resources, the local LDD (STCRPDB) has partnered with
Corning, Inc. to build a broadband fiber backbone covering the entire 3-county subregion. Here,
Chemung, Schuyler and Steuben. counties, ECC Technologies, Inc. and Corning formed the Southern
Tier Network (STN), a partnership with the mission to address the, broadband needs of un-served
areas, to improve services in underserved areas, and to enhance-telecommunications services, STN is

36 a New York State Appalachian Region Development Plan 2011-2014

‘This niap created by the NYS Ofica of Cybar Security’ €
October 2011 I ‘



160 subway cars destined for NYC,
Ing assembled at Alstom’s

" General Goal 1

Increase Job Opportunities and Per Capita Income i in Appalachia

Approaches to Economic Developmentshifting economic conditions, continue to present challenges

to the region's traditional manufacturing and agriculture employment base. To overcome these
challenges, the NYS ARC Program works in partnership. with other agencies to help local and state
leaders build the capacity of three interdependent elements: individual leaders, organizations,

and the community as a whole, to achieve strategic readiness, to take advantage of economic
opportunities. This coordinated approach will help build prosperity and stability for Appalachian New es

Map 15: NYS Unemployment Rates by County

Unemployinent Rates by County,
New York State,
September 2011

County Unemployment Rates (not seasonally adjusted)
Rate is 10,0. percerit or greater
Rate is 9,0-9.9 percent

BB Rate is 8,0-8.9 percent

fd Rate is 7,0-7.9 percent

(_] Rate is less than 7.0 percent

Source: NYS Department of Labor

York communities by helping them to find

new business and economic opportunities that
leverage the region's strengths, develop support
for business incubators, provide entrepreneurial
training, create local: homegrown ecoriomic
opportunity, increase foteign direct investment,
encourage business partneérships-with federal
and private-sector:research labs, reseatch
universities; and other technoldgy organizations
and plan for appropriate development along
segments of the ADHS system.

Economic Conditions Overview

‘The NYS Southern Tier combines some

exceptional quality-of-life attributes (cultural

and natural) with historically strong school

systéms, a productive workforce, and a :

network of training institutions that offset some
challenges to business recruitment within the
region. The region’s competitive advantage
includes: a clean and low-crime environment,
attractive cultural.and recreational assets, and €
small-town lifestyles. Ample natural resources,

24 ee New York State Appalachian Region Development Plan 2011-2014





by new or improved infrastructure,” ‘connections made between modes of transportation,
particularly between railways and highways, and highway. miles opened to traffic.

2. Performance Goals

Assuming ARC's annual funding remains at its current level, the NYS ARC is committed to the
following four-year performance goals:

* Projects will produce a final return on ARC investments at a ratio of 3:1.

* 5,000 jobs will be created or retained,

* 5,000 households will be served with new or improved water and sewer infrastructure.
* 5,000 citizens of the Region will benefit from enhanced education and job-related skills.
* 10,000 households will have the ability to obtain low-cost broadband services.

* 30 communities will be served with enhanced local capacity.

The NYS ARC Program staff will work in conjunction with thé ARC, LDDs, other state agencies,
county and local governments and the REDCs to help achieve the ARC's General Goals and strategic
objectives. It will also work to ensure that the region's leaders and citizens have the capacity,
capability, and resources they need to build and strengthén their local economies. The ARC's structure
as a federal-state-local partnership and as a regional agency makes it uniquely suited to help guide
and foster the required local efforts.

lil. New York State Area Development Policies

This section identifies general policies established by the NYS.ARC Program to guide the preparation
of the NYS Appalachian Regional Investment Package. They were established in consultation with the
three LDDs in Appalachian NYS and cooperating NYS ‘agencies.

A. Eligible Project Activities:, All projects from New York “receiving, ARC resources under the Area
Development Program must clearly | implement one of the NYS. Strategies.

B: Ineligible Project Activities: ARC resources may fot be uséd to ‘provide assistance for (1)
relocating a business or industry, (2) recruitmént activities iplacing < a state’in competition with one
or more other states, or (3) projects promoting unfair competition between businesses within the
same immediate service area.

¢. Dollar Limits For ARC Funding:-::In order to foster. diverse projects throughout the Southern
Tier, DOS has placed a $150,000 limit on the ARC-funded portion of most projects in NYS,
EXCEPT for projects that are sponsored by a REDC or which have been. cited by.DOS and LDDs as

“regionally significant.” In this case, the ARC funding limit may be raised to $300,000 per LDD
involved. Sponsors of such projects must document that additional ARC funding i is indispensable
to project implementation and cannot be obtained from other public or private resources.

D. Matching ARC Resources: Each Federal Fiscal Year, ARC designates the economic health of
each county. The classification of each county determines the match rate for projects in the
county. For the FFY 2011. program, ARC designated all.fourteen Appalachian Counties in NYS
as “Transitional”. This designation means that projects in such counties may only request ARC
financial assistance not to exceed 50% of the total eligible project cost.

Funds used to match an ARC grant may include both cash and documented “in-kind”

48 re New York State Appalachian Region Development Plan 2011-2014

C

€



Primary Healthcare

A final component to strengthening the ability of the region's workforce is improving access to
affordable and reliable healthcare. The NYS ARC Program has worked with the NYS Department of
Health’s Office of Rural Health on healthcare issues and policies in the Southern Tier. Maps 17 and
18 show the boundaries of Federally-designated primary care Health Professionals Shortage Areas
(HPSAs) across the Southern Tier, as well as the location of hospitals within the region. The NYS ARC

Map 17: Health Professional Shortage Areas in STW and STC

F ; - —_ : _ Appalachian NewYork
| aie Southern Tier West and Central Regions
Health Professional Sho

tage Areas

Appalachian New York
‘Fas! lori
hortage Areas

Source; NY$ Department of Heaith

32 a New York State Appalachian Region Development Plan 2011-2014

€



at Cuba, NY
Wlegany County

General Goal 4
Build the Appalachian Development Highway System to Reduce
Appalachia’s Isolation

The successful completion of the ADHS in NYS is an essential step in providing the Southern Tier with
a safe and efficient transportation system connecting it to the rest of the nation. In NYS, DOT is the
primary state agency for action regarding ADHS construction. DOS collaborates through DOT and
the LDDs for planning purposes and as 4 liaison with the ARC on ADHS concerns. Most ARC Area
Development projects solicited at the local level that relate to transportation até normally submitted
under other ARC General Goais. Looking ahead, the NYS ARC Program will continue its Cooperation
with DOT and the ARC on the ADHS, and will work with the LDDs, the REDCs and other potential
local sponsors to facilitate intermodal connections bétween the ADHS and rail, waterways, and
aviation to help make the Southern Tier an important link in the global supply ehain.

Overview of the NYS ADHS Corridors:

Of the 3,090 ADHS miles eligible for ARC funding support throughout Appalachia, 222 miles are
within Appalachian NYS. As discussed previously, thre’ ADHS cotriddrs are in NYS: Cortiddr 7,
Corridor U and Corridor U-1. (See Map 21)

ADHS Corridor T

NYS Route 17/Interstate 86 (I-86, also Known as ADHS “Corridor T”, of the “Southern Tier
Expressway") is the only major east-west road that traverses the Southern Tier from Binghamton
westward. The total length of Corridor T in NYS is 245.8 miles, of which 213.5 files are authorized
for funding by the ARC. I-86 in NYS currently exists in two federally-designated segments: the longer
of the two begins at the Pennsylvania state line ahd éndé at aii Ifiterchange with NYS Route 352

in Elmira, New York, while the second extends from I-81 east of Binghamton to NY 79 in Windsor.
When projects to uograde the existing NYS Route 17 to Interstaté Highway standards are completed,
|-86 will extend from I-90 near Erie, PA, to the NYS Thruway (I-87) if Woodbuly, NY. The current and
future alignment of 1-86 is known as the Souithértt Tler Expressway’ west of I-81 in Binghamton and as
the Quickway east of |-81, The still-undesignated portions of Cortidor T's Southern Tiér Expressway
are located in Chemung and Tioga Counties and a section in Broome County at Prospect Mountain
near Binghamton.

New York State Appalachian Region Development Plan.2011-2014 ARC] 4



{

Despite these challenges, many economic Opportunities are present in Appalachian New York.

) Commiunity-backed short-line rail networks, coupled with the near-completion of the ADHS, present
Opportunities for inter-modal transportation and strategic nodal development, which encourages
concentrating any “greenfield developmentto regionially-identified areas (“nodes”) to leverage
intermodal transportation connection points and proximity to clustered development. Coordinated
transportation planning can help the region capitalize on its location and asséts, The primary industry
clusters include defense, distribution, insurance, agriculture and manufacturing. In addition, the région
has world-class research facilities for several high-technology fields, in¢luding ceramics and electronics.
Within the region, major universities drive global inhovation and produce researchers with specialized
skills, particularly in electronics and éngineering, creating a pool of home-grown, highly-skilled labor that
also attracts potential businesses.

Economic Development Priorities
* Promote Community Revitalization and Asset Based Development

The revitalization of existing communities and urban centers is a priority within Appalachian New
York. Vibrant, competitive communities are often able to create economic growth through re-
investing in their cores and maximizing the positive impacts of their indigenous assets. Over 7.6%

of the NYS Southern Tiét’s population lives in pockéts df economic distress, and most of these are
within urban communities. The NYS ARC Program will work to mitigate the causes of lower. incomes,
poverty and unemployment in these distressed census tracts and to facilitate programs that can have
Significant impacts. Though the LDDS, this will include tachinical Support to Cofimunity and local
government leaders in these afeas to eduicate anil inform them about other programs that cat lift the
economic)status of their communities,

A broad range of NYS community revitalization programs dovetail withthe ARC Program’s economic
development goals. For example, the NYS DOS Local Waterfront Redevelopment Progratti utilizes

a comprehensive land and water use planning process that reflect local conditions and ¢oordinates
State andifederal resources to assist communities in taking full advantage of their wateHronts. The
Brownfield Gpportunity Areas program, also within the NYS DOS, assists-communities In platining

for the restotation of dormant, blighted and underutilized lands to Productivé use. The NYS Srhart
Growth program seeks to emphasize infill development and walkable communities ag a way to
sustain the natural environment surrounding highet-density communities across the state. In addition,
the NYS Office of Community Renewal’s NYS Main Street program provides finaricial resources and
technical assistance to local governments, business improvement districts, and other not-for-profit

organizations to revitalize historic downtowns, mixed-use neighborhood commercial districts, and
village centers.

The Southern Tier region is also rich in history, and its agricultural, natural and cultural resources
present opportunities for economic growth. Tourism provides dual benefits by Generating both
economiciactivity and appreciation for the region's natural and historic assets afnong visitors and
residents, which also strengthens community capacity. The NYS ARC Program will work with the LDDs

and other: organizations to coordinate the use of programs that leverage local and regiotial assets to
promote economic development.

* Assist Entrepreneurs and Encourage New Business Development

Entrepreneutship is particularly important to Appalachia’s econofiic future. Locally-owned businesses
play an important role in creating sustainable local economies and improving quality of life, especially
4 in communities which are not of sufficient size to attract large major-scale operations. Small

“...” businesses make up over 75 % of all places of business in more than half of the counties in the

region. The NYS ARC Program has long encouraged entrepreneurial and managerial skills training

New York State Appalachian Region Development Plan 2011-2014

IARC:

27



} each other across the region. Te A re

i

their larger neighbors to the north and south, rather thanto Map Population Density of NYS by Census Tracts

-

Until the designation of ADHS Corridor T, vehicle transit
through the Southern Tier was limited to conventional
highways (not controlled-access and with at-grade
intersections) and local roads. The primary east-west
motor route through the Southern Tier-was State Route
17, which connected Western NYS to the New York City
metropolitan area. ADHS Corridor T (I-86/NYS Route 17)
is a limited access interstate highway from Binghamton to
the Pennsylvania border near Erié, PA that will be formally

completed in 2013. This highway has béen a boon to

the region's economy, mitigating the east-west isolation

of the region and uniting the Southern Tier's three LDDs
around regional transportation priorities. In addition, ADHS
Corridors U and U-1, which connect to Corridor T at Elmira ; . 7
and Corning, respectively, link the Southern Tier and Central Map 8: ADHS Corridors and Interconnections in NYS

|S. Census Guréau 2610 / Adapted by NYS Empira State Devélopirient

New York to the rest of the US interstate highway system via
Central Pennsylvania.

The impact of the ADHS on the region is a key component
of current and futuré economic development opportunities
in the Southern Tier. These limited access alternatives have
brought significantly more commercial and private traffic
to the region, making it considerably more convenient

and attractive for commerce and tourism. With a strong
commercial economy in Canada, ADHS Corridors T and U-1
and U have thé potential to foster international commerce
and economic. growth in the Southern Tier.

The benefit of the ADHS in the Southern Tier is amplified by

the region’s network of short-rail transportation lines that

ina Source: NYS DOT for NYS OOS
have been locally supported to encourage heavy industries

to remain in the region. Several employers have stayéd in the region because of inter-rhodal linkages
between rail and highways. Other opportunities for intermodal transportation planning exist with
respect to the region’s airports and waterways. A limited number of major passenger airlines serve
the region from commercial airports located in the Greater Binghamton area, Horseheads (a suburban
town located between Corning and Elmira), and ithaca. In addition to these, savéral smaller local
alrports are dispersed acfoss the region, serving a variety of commercial and récréationa purposes.
Finally, although most of the region's carials are no loniger functional, many of the region's waterways
are of high recréatidnal value and have potential to encourage assét-based development.

New York State Appalachian Regions
The NYS ARC Prograth is broken into three geographic regions:

1. Southern Tier East (STE): Broome, Chenango, Cortland, Delaware, Otsego,
Schoharie, Tioga, and Tompkins;

2. Southern Tier Central (STC): Chemung, Schuyler, and Steuben; and
3. Southern Tier West (STW): Allegany, Cattaraugus, and Chautauqua.

New York State Appalachian Region Development Plan 2011-2014



contributions. All match funds must directly relate to and support specific project activities, and
represent new expenditures above and beyond ongoing activities of the project sponsor (see
“Maintenance of Effort” below). In-kind contributions may involve equipment or other goods,
paid personal services, or donated office space. However, “rental” charges for the following

types of office space are NOT ACCEPTABLE as in-kind matching contributions: (1) space presently
rented by the project sponsor, (2) space in facilities constructed with any federal funds, (3) space
in any facility owned by the project sponsor or by an entity closely related to the project sponsor,
or (4) space in any public building. All in-kind matching contributions. must otherwise be‘allowable
charges to the ARC grant:

Other federal funds may be used as matching funds for ARC grants, except as specifically limited
by federal statutes. Total federal funding from all sources for infrastructure, construction and
equipment projects is limited to 80% of total project cost. Coitimunity Development Block Grant
(CDBG) funds from the U.S. Department of Housing and Urban Development are considered to
be local funds for the purposes of matching ARC projects.

E. Time Limits For ARC Funding Of Projects: Most approved projects will receive ARC funding
for one program year. In limited cases, three years of ARC funding may be permitted. In these
cases, a second or third year application will be required, and subsequent year funding will

be baséd off project progress, demonstration of continued need and the availability to NYS of
sufficient resources. Projects with an operations component are normally permitted funding for

a reasonable start-up period plus twelve months of direct operations, not to exceed eighteen
months. Start-up activities may include, for example, hiring and training staff, setting up offices,
developing administrative policies, and renovations for child care or vocational education facilities.

Sponsors of ARC-funded projects may request approval of changes to project activities, including
the project budget, and/or an extension of the period of performance. Such requests must be
fully explained and documented, and received by DOS from the formal project grantee no less
than two months prior to the expiration of the approved project period. All such requests must be
approved by the NYS and recommended to ARC for final approval.

F. Maintenance of Effort: ARC funds cannot be used for activities previously or currently
undertaken with other federal, state or local funds. Expansion 6f previous activities, however, can
be funded to the extent of the expansion.

G. Indirect Costs: Overhead:and other indirect expenses of a proj eet sponsor are generally not
eligible as project costs for opérating projécts, ‘either as part of thé ARC potion of of the match.
Exceptions are made for expenses of Local ment Districts as ARC grantées and empelies
of participants in ARC Consolidated Techni ance Program grants.

H. Overruns and Underruns: ARC funding for project cost overruns should fot be anticipated.
ARC funds are considered tobe the last ‘dollars spent on a giveri project. lf a project Is dosed out
having spent less than the originally. approved budget amount, ARE funds in. the amount of the
under run are subject to recoupment by the ARC. :

1. Waiver Policy For ConstructionvRanovation/equi jac iver of. Section 4:5 of ©
the ARC Project Guidelines to permit lating Of contracts pila to. prolact Approval will ba
considered for construction, renovation ot equipment prplers @ that meet all of the following
conditions:

1. The request for a waiver must comé to DOS directly from the appropriate LDD with a
strong recommendation for its approval.

New York State Appalachian Region Development Plan 2011-2014



i
i

>

/ Appendix A - Listing of Acronyms

ADHS Appalachian Development Highway System
ARC Appalachian Regional Commission

BOA Brownfield Opportunities Area

BOCES Boards of Cooperative Educational Services
CDBG Community Development Block Grants

CEDS Comprehensive Economic Development Strategy
CWSRF Clean Water State Revolving Fund

DEC NYS Department of Environmental Conservation
DOH NYS Department of Health

DOS NYS Department of State

DOT NYS Department of Transportation

DWSRF Drinking Water State Revolving Loan Fund

EFC NYS Environmental Facilities Corporation

EPF NYS Environmental Protection Fund

ESD NYS Empire State Development

FFY Federal Fiscal Year

FHWA Federal Highway Administration

GIS Geographic Information System

HPSA Health Professional Shortage Area

IDA

Industrial Development Agency

LDD.

Local Development District

LWRP NYS Local Waterfront Revitalization Program

MHPSA Mental Health Professional Shortage Area .
MSA Metropolitan Statistical Area

NTIA National Telecommunications and Information Administration
NYC New York City

NYS New York State

NYSERDA NYS Energy and Research Development Authority

OCR NYS Office of Community Renewal

OFT NYS Office for Technology

Osc NYS Office of the State Comptroller

PCMI Per Capita Market Income

RD U.S. Department of Agriculture = Office of Rural Development
REDC NYS Regional Economic Developttent Council

SGEIS Supplemental Generic Environmental Impact Statement

STC Southern Tier Central

STCRPDB Southern Tier Central Regional Planning & Development Board _
STE Southern Tier East

STERPDB Southern Tier East Regional Planning & Development Board
STN Southern Tier Network

STW Southern Tier West :

STWRPDB Southern Tier West Regional Planning & Development Board
WNY Wester New York

New York State Appalachian Region Development Plan 2011-2014 51



south and west, Lake Erie, metropolitan Erie County and rural Wyoming and. Livingston counties <
to the north, and by rural Steuben County to the east. The total land area of the three counties is €
approximately 3,467 square miles. ~

This three-county region is predominantly rural. In 2010, the STW region's population dropped to
264,168, a 4.5% decrease from 1990, and a 3.5% reduction from 2000. While there is variation
across the three counties, the trend of out-migration and population decline has continued into the
current decade: Allegany County, dotted with small villages and rural-agricultural towns, is the least
industrialized and developed county'in this region. Cattaraugus County is in the middle of the region,
both geographically and in the degree of infrastructure and industrial development: Two stnali cities,
Olean and Salamanca, are located in the southern part of Cattaraugus County. Chautauqua County
is the most urbanized of the threé counties and contains the region’s largest industrial center, the
City of Jamestown. The City: of Dunkirk and: Village of Fredonia, located in the northern portion of
Chautauqua County, together form another large industrial base and commercial center. There are
also reservations of the Seneca Nation of Indians in the region.

Over one-half of the STW region is covered by forests and woodlands, with less than 28% remaining
in active agriculture arid a little more than 7% in urbanized areas. The regions soil and climate help
produce several highly prized species of hardwood timber, including maple, ash; réd oak and black
chetry. This fegion also possesses a plentiful supply of surface and ground water, as Well as residual
amounts of petroleum and natural gas. Agricultural activity continues to account for a significant
portion of regional.employment, although the rolling hills and native soils of the area limit the size
and types of agricultural operations. Forestry goods, dairy and grapes are the major agricultural
products of the STW region.

The STW regional economy has long been impacted by outside forces and trends, including the loss €
of furniture industry jobs to the Southeastern U.S., the decline of the domestic steel and automobile
industries and the growing competitiveness of international markets. One of the results has been the
gradual restructuring of the regional economy away from manufacturing and toward the service and
trade sectors. . ts

Population Patterns.in Appalachian New York -.

Overall, Appalachian New York experienced a small population decline (-0.6%) over the last decade,
compared with modest growth in New York State (+2.1%), the US Appalachian Region {+6.8%) and
the total US (+9.7%). Within the region, STE experienced growth of over ot 1,0%; while STC and |
STW saw declines of 1.4% and 3.5%, respectively.

Between 1990 and2010, Appalachian New York has had population increases in a handful of

its counties: Tompkins (+7.9%); Otsego (42.9%); Schoharie (+2.8%); Delaware (+1.6%) and
Cortland.(+0.8%). The dominant population centers in these counties are influenced by colleges
and universities, while Schoharie County also benefits from being in commuting range to the City
of Albany, home of NY$ government. The counties with the greatest population loss over the past
20 years were: Chemung (-6.7%); Broome (-5.4%);, Chautauqua (-4.9%); Cattaraugus (-4.7%);
and Allegany (-3.0%). These counties are either more rural in nature or are declining urban centers
impacted by the region’s loss of manufacturing.

Net Migration

Net migration, the difference between in- and out-migration, is an important-factor in assessing
economic opportunity within the region. Recent studies have shown that the rates of out-migration €
from Upstate NYS do not differ significantly from most other areas of the country. What is different, Ss

4 1a New York State Appalachian Region Development Plan 2011-2014