STEG rolls out new development plan

ELMIRA — Juggling usually involves the simultaneous manipulation of multiple objects, such as rings or clubs. It is an activity most often associated with entertainment. Mike Krusen — president of Southern Tier Economic Growth (STEG), Inc., the economic-development agency for Chemung County — is a master juggler, although that’s not listed on his job description and he’s not doing it for entertainment.

Krusen took the reins of STEG, a public-private partnership, on Nov. 30, 2015, and still retains the title of deputy Chemung County executive — a post he has held since 2000. In this capacity, Krusen is responsible for county planning, the Elmira Corning Regional Airport, public works, sewers, solid waste, transit services, and serves as executive director for the Chemung County Industrial Development Agency.

Challenges
Krusen’s next juggling act should qualify him for the Cirque du Soleil. Chemung County and the city of Elmira are coordinating their efforts to boost economic development with STEG as the lead agency. The challenges he faces are numerous. The county’s long, economic decline parallels that of upstate New York. Once a major manufacturing region, Chemung County has seen an exodus over four decades of businesses and population, including the departure in 2012 of Sikorsky Aircraft, which employed 1,300 at its peak. Although the manufacturing base in the county is still strong, the economy’s other major drivers today are health care and social services. The county’s average annual wage for all industries was $39,073 (Bureau of Labor Statistics/2010), well below the state and national averages. In 2010, the leading wages paid by industry were oil-and-gas exploration, utilities, and telecommunications. Wages and sales-tax collections from the oil-and-gas industry have dried up, since New York instituted a ban on fracking (hydraulic fracturing).

The city of Elmira is focusing much of its economic-development efforts on a downtown-revitalization initiative (DRI) called “Elmira Refresh.” The challenges here, too, are formidable. Of a city population of approximately 29,000, the DRI has carved out three census tracts that contain 8,735 residents. The poverty rate is more than 47 percent, and the mean household income is $31,086. Only 9 percent of the residents hold a bachelor’s degree or higher, the unemployment rate is approaching 10 percent, and 10.57 percent of the tract residents have no health insurance. Many of the downtown buildings are abandoned or in distress, and much of the housing inventory is old and in need of refurbishing.

“This community cannot continue a business-as-usual attitude,” asserts Krusen. “We need to implement a plan that will transform the area back into an economic powerhouse. The good news is that those involved in economic development are on board and working together to leverage the county’s many assets. Let’s start with the workforce, which has a strong work ethic and diverse work experience including high-tech. For site selectors the number-one issue is workforce. Just in the surrounding New York state area, we have approximately 150,000 [full-time] students at 13, four-year colleges and universities. Add to this another 27,000 students at [New York] area community colleges. Collectively, this student population offers employers a steady supply of qualified graduates for high-tech positions. This is a tremendous recruiting tool. The county is also a major transportation hub located on I-86 with convenient access to east-west transportation as well as a regional airport that accounts for more than 50 percent of the passenger enplanements in the Southern Tier region.”

Krusen is also focused on the development of the I-86 Corridor, a plan designed to accelerate public/private investment, create job opportunities, advance regional competitiveness, and create the magnetism to draw and keep young, skilled workers.

“Elmira is the eastern anchor of the Corridor that stretches west to Hornell,” continues the STEG president. “The area hosts hundreds of manufacturers, large and small, of which many have been in business for more than a century. Chemung and Steuben counties; Corning, Inc.; and a number of for-profit and not-for-profit corporations joined together with municipalities to create a vision and craft a strategy to transform the area. The plan calls for creating new intellectual property through research, commercializing the research, combining governmental entities to streamline economic development and reduce taxes, new cooperative structures in the private sector to leverage the area’s research institutions, and change the region’s message and the way we communicate our brand. The key is to nurture a culture of innovation that will become our identity … The implementation of the plan will take a decade, but the return on our investment in the Corridor will generate high-paying jobs, millions in tax revenues for local governments, and a renewed sense of a vibrant community with a wonderful work/life balance.”

The retention and expansion of existing businesses, along with attracting new business is at the top of STEG’s to-do list. “Our development plan is well underway,” notes Krusen. “Chemung County has recently seen major corporate investments at Anchor Glass, the Arnot Ogden Medical Center, Cameron Manufacturing, DeMet’s Candy, Elmira College, and Envision Elmira. At the same time, government has been investing in infrastructure, such as the Chemung County Wastewater Disinfection Project and the renovation of mixed-use properties in the village of Horseheads. The catalyst for this development has been Gov. [Andrew] Cuomo’s Upstate Revitalization Initiative (URI), which provided $9.2 million to Chemung County; the governor’s $10 million grant for the revitalization of downtown Elmira called Elmira Refresh, a 596-acre area that includes the city’s central business district; and a $1 million Poverty Reduction Initiative.”

Game changers
Some of the projects Krusen calls ‘game changers.’ “The $1.5 million allocated by the URI to Elmira College leverages the private investment to create a new medical school which will be operated by the Lake Erie College of Osteopathic Medicine (LECOM),” he explains. “The school will be located at a new, downtown Elmira campus location and include classroom space, parking, and athletic facilities. LECOM expects to receive its medical-school license in August 2017 with an initial enrollment of 80 students, growing to 350 over four years plus 15 to 20 faculty positions. LECOM has committed an initial investment of $8 million to 10 million. In addition to its commitment to LECOM, Elmira College has launched an aggressive recruitment campaign and estimates that its student enrollment will increase from its current level of approximately 1,200 students to 1,800 students over the next decade. Arnot [Health] is also expanding the number of resident doctors at its Elmira facility. The projected growth from these few projects means we need to anticipate providing another 350 to 400 downtown apartments,” he says.

Krusen continues, “To meet the demand, the city and STEG have initiated discussions with local developers and contractors to determine financing requirements and timeframes for projects such as the West Water Street, in-fill development project on prime property facing the Chemung River in the heart of downtown. The project converts a vacant lot into a four-story building with 25,000 square feet of commercial space on the first floor and another 50,000 feet of residential space on the upper floors for 49 market-rate apartments. The City of Elmira is also partnering with the [Chemung County] IDA to undertake the $14 million Chemung Crossing project, which includes the rehabbing of two buildings and the construction new buildings. The planned result will be 45 high-quality, energy-efficient, and affordable residential units plus 5,500 square feet of commercial space. The new market for downtown Elmira also includes the preservation of our inventory of Victorian Houses. Jim Capriotti, a local residential developer, has led the charge here, remodeling over 200 apartments on the near Westside over the past decade.”

Coordinating business expansion, retention, the attraction of new corporations, improved infrastructure, streamlining government entities, creating a high-tech brand, and expanding housing should be enough for anyone. But Krusen has one more ball in the air — the lifestyle component.

“Downtown residents will not only create a demand for housing, retail shops, and services, but they are also looking for entertainment, leisure-time events, and cultural amenities,” states Chemung County’s premier juggler. “The ingredients for a vibrant downtown are already in place. The city is currently working on streetscape enhancements; building a campus corridor that knits the college to the city; implementing a Creative Corridor designed to promote creative arts, cultural activities, historic preservation, educational programming, and entrepreneurial cultural activities; creating recreational spaces such as pockets parks and bike lanes; building façade improvements; developing the riverfront; and creating a parking and pedestrian-friendly environment. Elmira College has pledged to play its hockey games in the downtown [First] Arena — which already attracts 150,000 people annually — to help attract more people to downtown. The college also proposes to build a field house on the campus. Another cultural attraction downtown is the Clemens Center, a concert and theater facility originally built for vaudeville and silent film, which annually draws 75,000 people to its performances. We have the … [components] to create an attractive downtown lifestyle,” he contends.

Krusen operates from the 1,400-square-foot STEG office at 400 E. Church St. in downtown Elmira. He has a support staff of two and is in the process of creating a third position. STEG will soon share the office with the two members of the Elmira Downtown Development agency as they co-locate to improve collaboration between these development groups. STEG and the Chemung County Chamber of Commerce, also located on the premises, co-own the building.

STEG’s 2016 fiscal-year budget is $630,000 allocated to business retention and expansion, new business attraction, workforce development, economic-development planning, and investor relations and development. The agency, which was founded in 1934 and is incorporated as a 501(c)(6) corporation, is just starting a five-year campaign to raise approximately $3.5 million from both the public and private sectors to fund the agency.

Krusen’s background
Krusen was born in Texas and grew up in Elmira. He received his undergraduate degree and master’s degree in public administration from SUNY Brockport. In 1987, he was the director of personnel for the City of Elmira before being promoted to the position of deputy city manager. In 1990, he joined Chemung County as the director of personnel. In 2000, Krusen was appointed the deputy county executive, while retaining his duties as the director of personnel. He joined STEG as its president last November. Krusen lives in the town of Elmira with his wife and has three adult children.

“I raised my family here, I love it here,” stresses Krusen. “I’m very enthused about the opportunities for both the county and the city. I understand STEG’s mission, I know the players, and I have spent the last 26 years immersed in economic development. I’m impressed with the cooperation of the various agencies and the business community who are aligned with the mission. I’m a realist who understands the headwinds economic developers face in Upstate, but I also see the opportunities that can make the county and city thrive again.”

Manipulating all of the elements of STEG’s development plans requires a master juggler. Krusen fits the bill perfectly. It’s time to add the title to his job description.

Contact Poltenson at npoltenson@cnybj.com