New York State Forum/Town Hall Roundtable Discussion "Route 219: Road to Our Future" Completion of Route 219/Continental 1 Trade Corridor

1 NEW YORK STATE JOINTLY HELD CONFERENCE

------------------------------------------------------ 2 NEW YORK STATE FORUM/TOWN HALL 3 ROUNDTABLE DISCUSSION

"ROUTE 219: ROAD TO OUR FUTURE" 4 COMPLETION OF ROUTE 219/CONTINENTAL 1 TRADE CORRIDOR 5 ------------------------------------------------------ 6 Mahoney State Office Building

65 Court Street 7 Buffalo, New York 8 October 20, 2011

10:00 a.m. to 1:00 p.m. 9 10 PRESIDING: 11 Senator Catherine M. Young

Chair 12 13 SENATE MEMBERS PRESENT: 14 Senator Mark Grisanti 15 Senator Patrick M. Gallivan 16 Senator Timothy Kennedy 17 Senator George D. Maziarz 18

ASSEMBLY MEMBERS PRESENT:19

Assemblyman Dennis Gabryszak 20

Assemblyman Joseph Giglio 21

Assemblyman Robin Schimminger 22 23 24 25 1

SPEAKERS:PAGE QUESTIONS 2

Meg C. Lauerman 12 18 3 Project Manager

Continental 1 4

James Manno, Jr. 23 27 5 Vice President, Sales and Marketing

Sonwil Distribution Center, Inc. 6

Alan Pero 36 7 International Supervisor

Int'l Union of Operating Engineers, 8 Local No. 17 9 Kathryn Friedman, Ph.D., Esq. 42 46

Deputy Director 10 University of Buffalo Regional Institute 11 Stephen F. Mayer, Ph.D., P.E. 47

Assistant Professor, College of Business 12 Administration; Director, Technology

Commercialization Clinic 13 Niagara University 14 John L. Manzella 54 65

President 15 Manzella Trade Communications, Inc. 16 Dennis A. Eshbaugh 68

President, General Manager 17 Holiday Valley Mountain Resort &

Conference Center 18

Art Hile 74 19 Finance Director, Americas & Asia-Pacific

Dresser-Rand Group, Inc. 20

Richard Forrestel, Sr. 82 85 21 Member of the FAIR Committee

Coldspring Construction Company 22 23 24 25 1

SPEAKERS, Continued: PAGE QUESTIONS 2

Thomas Buttafarro, Jr. 87 91 3 Director of Operations, Office of

the President 4 St. Bonaventure University

Reading letter by, and on behalf of 5 President Sister Margaret Carney

St. Bonaventure University 6

Patrick J. Whalen 93 98 7 Chief Operating Officer

Buffalo Niagara Medical Center 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 SENATOR YOUNG: Welcome to our roundtable 2 discussion on the completion of Route 219, our 3 "roadway to our future." 4 I welcome you; I thank you for being here 5 today. 6 And, I also want to thank my colleagues who 7 have joined us. 8 First we have, Senator Mark Grisanti. 9 SENATOR GRISANTI: Good morning, everybody. 10 SENATOR YOUNG: We have 11 Senator Patrick Gallivan. 12 SENATOR GALLIVAN: Good morning. 13 SENATOR YOUNG: Senator Tim Kennedy. 14 SENATOR KENNEDY: Good morning. 15 SENATOR YOUNG: And my assemblyman, 16 Senator -- or, Assemblyman Joe Giglio. 17 ASSEMBLYMAN GIGLIO: Good morning. 18 SENATOR YOUNG: So, good morning, and I thank 19 all of you for joining us. 20 We felt this was extremely important to hold 21 today, for a number of reasons. 22 There's no more urgent need in our community, 23 in our state, in our country, right now, than 24 growing the economy and growing more jobs. 25 And, this project would accomplish those 1 goals. 2 I've been involved with the completion of 3 Route 219 since the mid-1990s, when I was a 4 Cattaraugus County legislator. 5 And, it's been a long battle. It's actually 6 spanned more than 40 years. 7 And I have to tell you that, in the last 8 10 years, we've made more progress on the completion 9 of Route 219 than any other time during that 10 40-year time period. So, I believe that we're on a 11 roll. 12 Last fall, I was very happy to open another 13 4.2-mile section of 219 that goes down to Ashford in 14 Cattaraugus County. 15 Unfortunately, in 2009, however, 16 Governor Paterson and DOT announced that they would 17 be delaying the next section. We need to do an 18 environmental impact statement, costing about 19 $6 million, and, that was suspended indefinitely. 20 We need to get that back on track. And I 21 believe, very strongly, that Governor Cuomo 22 understands how critical this is to our economic 23 future; that this would bring jobs, opportunities, 24 commerce to Western New York. It's a 1,500-mile 25 stretch of road that goes all the way, from Toronto, 1 down to Florida. 2 Think of the opportunities that that would 3 open for our region, because access, transportation, 4 and infrastructure are some of the key elements that 5 we need. 6 So, I'm very pleased that we have so many 7 stakeholders from our community here today: business 8 leaders, labor leaders, people from academia, and so 9 on, who understand that this is a crucial issue for 10 Western New York, and for our future. 11 So, I'd like to welcome you again. 12 And I'd also like to invite some of my 13 colleagues, if they would like to make an opening 14 statement. 15 SENATOR GRISANTI: Thank you. 16 SENATOR YOUNG: Senator Grisanti. 17 SENATOR GRISANTI: Yes, thank you, 18 Senator Young. 19 First of all: Welcome; good morning. 20 I want to thank our staffs, especially 21 Catherine, for putting this together, and making 22 sure that everybody was properly notified. I think 23 they've done a terrific job. 24 You know, if I had a $6 million check I could 25 write right now, I would absolutely do it, because 1 this is something that's not only vital for the 2 economic growth of the -- this community, but 3 regions going south. 4 But having the north-south connector is 5 vital. Everything's east-west, and takes you, 6 pretty much, out of your way. I've driven that road 7 many, many times. And I've said, just recently, in 8 my travels, that you need a faster and better route 9 to complete the north-south connector. 10 And this is absolutely something that must be 11 done. It's linking communities. As I said, it's 12 less time. 13 It's something that, as you -- you know, you 14 may have known, I have a pretty loud voice in the 15 New York State Senate. I don't shut up. People 16 were telling me that they were sick and tired of 17 hearing "UB 2020" coming out of my mouth every time 18 I spoke. 19 UB 2020 passed. 20 So, maybe this -- well, not maybe. Maybe 21 this legislative session, "219 expansion" will come 22 out of my mouth every single time, because, what's 23 important here is the creation of jobs, and it's 24 vital for our transportation, and for economic 25 growth. 1 So, I'm going to fight, and do everything I 2 can. 3 And I'm sure that our Western New York 4 delegation also understands how important it is, and 5 we're all going to be on board with this project. 6 So, thank you again for being here, and for 7 the testimony. 8 And we have now, the infamous 9 Senator George Maziarz, who is now entering the 10 room. 11 Don't everybody stand at once. 12 And, we'll continue on from there. 13 So, I don't know if Senator Gallivan would 14 like to make a comment, but, the floor is yours. 15 SENATOR YOUNG: Thank you. 16 Thank you, Senator Grisanti. 17 Welcome, Senator Maziarz. We're glad to have 18 you here. 19 SENATOR MAZIARZ: Thank you very much. 20 Thank you, Senator. 21 SENATOR YOUNG: Senator Gallivan, would you 22 like to say something? 23 SENATOR GALLIVAN: Thank you, Senator Young. 24 Good morning, everybody, and thanks for being 25 here today. 1 Last November, shortly after I was elected, I 2 was -- I was honored to be invited to the opening of 3 the 4.2-mile stretch of 219. And, I jumped in the 4 car with Senator Young, and took a ride down the 5 road, with no cars in front of us. 6 It was beautiful. 7 Reminded me of my trooper days, when we were 8 doing presidential protection, but, that's beside 9 the point. 10 I was around all the people who had been 11 involved for so many years, and around the 12 excitement of the day, and the importance of the 13 day. 14 And I recognize the importance of us 15 continuing to realize this project, so that we have 16 that connection from Toronto to Miami, and remain 17 committed to working towards that end. 18 So, I look forward to hearing the speakers 19 today; and as we move into the next session, trying 20 to work to make it a reality. 21 Thank you. 22 SENATOR YOUNG: Thank you, Senator. 23 Senator Maziarz, would you like to say 24 something? 25 SENATOR MAZIARZ: I'm sorry I'm late. 1 [Laughter.] 2 SENATOR MAZIARZ: I'm sorry. 3 No, I just want to thank Senator Young for 4 convening this meeting. 5 This, obviously, is very important to the 6 economy of all of New York State, really; obviously, 7 particularly the western part of the state. 8 And, I'm just happy to be here, and working 9 closely with Senator Young, and my colleagues, to 10 make this a reality. 11 Thank you. 12 SENATOR YOUNG: Thank you, Senator. 13 Senator Kennedy? 14 SENATOR KENNEDY: Yes, thank you very much. 15 And, again, to those that helped to put this 16 together, thank you very much. 17 Obviously, we all in this room understand the 18 importance of realizing the 219 expansion. 19 I look forward to hearing your remarks. 20 And, I welcome you all to the 58th State 21 Senate District. 22 SENATOR YOUNG: Thank you, Senator. 23 Thank you for letting us come here. 24 [Laughter.] 25 SENATOR YOUNG: We appreciate it. 1 Right now, we have the sole representative of 2 the New York State Assembly, and that's Joe Giglio. 3 Joe, Assemblyman, would you like to say 4 something? 5 ASSEMBLYMAN GIGLIO: Just a few things. 6 As you can see how lonely it is in the 7 Assembly Minority. 8 But besides that, living in 9 Cattaraugus County, and being that next part of the 10 connector, and seeing all my friends and neighbors, 11 from where we're from in the 149th here, makes me 12 believe, even stronger, that we're on our way. 13 And, with your help, we can get there. 14 And we're here today to listen, and I look 15 forward to the testimony. 16 Thank you. 17 SENATOR YOUNG: Thank you, Assemblyman. 18 I misspoke, because now we've just by joined 19 by another Assembly member, and that's 20 Dennis Gabryszak. 21 Would you like to say something this morning? 22 We kind of caught you off guard. 23 ASSEMBLYMAN GABRYSZAK: Good morning. 24 And, that's fine. I'm just ready to get the 25 input. 1 As my colleagues said, I think it's very 2 important that we do what we can to push 219 3 through, so, I'm just looking forward to hearing 4 what you have to say. 5 SENATOR YOUNG: Appreciate it. 6 I would ask the people giving testimony to go 7 to the "hot seats," over there. That's the table 8 where we have the microphones. 9 And, I do want to mention before we call our 10 first speaker, we've talked a lot about the economy 11 and infrastructure this morning, so far, and we'll 12 talk some more about it. 13 I do want to stress, however, that completion 14 of Route 219 is a safety issue too, because, 15 unfortunately, we've had a lot of accidents, a lot 16 of deaths and injuries, along that stretch, 17 especially in Cattaraugus County. 18 So, a lot of people from the community are 19 committed to this project, also for those reasons. 20 So, with that being said, I would like to 21 welcome our first speaker. 22 She's a real dynamo. She has been putting 23 her heart and soul into completing 219; and that's, 24 Meg Lauerman. She's project manager of 25 Continental 1, which is a bi-national coalition 1 dedicated to developing a trade and travel corridor 2 from Toronto to Miami. 3 So, thank you, Meg, for coming here today, 4 and for being a driving force behind this project, 5 and also today. 6 MEG LAUERMAN: Thank you so much. Really, I 7 appreciate that. 8 Good morning to everyone. 9 Thank you to everyone for being here today. 10 I'm Meg Lauerman, project manager. 11 And, I'm on the board -- also on the board of 12 the Route 219 Association. 13 So, I -- I'm very honored to do double-duty 14 there. 15 I really appreciate the opportunity that 16 Senator Young has given us today to explore the 17 issues around completing Route 219, and the 18 Continental 1 trade corridor. 19 Thanks, too, Senator Grisanti, as well as, 20 Kennedy, Maziarz, Gallivan; and, of course, 21 Assemblymen Gabryszak and Giglio. 22 I really appreciate, not only the work you've 23 done today, but everything that you've done, uhm, 24 listened to, and supported us with, in the past 25 couple of years, as we push to get the SEIS 1 reinstated. 2 I want to turn your attention this morning to 3 a really transformational project: the completion of 4 Route 219. 5 This has been an exciting week for Route 219. 6 This roundtable has drawn speakers and 7 experts from labor and industry, from education, 8 a really astute group of witnesses, and the 9 legislators interested in leading Western New York 10 to a prosperous future. 11 Additionally, as later speakers will expand 12 on, the Western New York Regional Economic 13 Development Council's bi-national logistics working 14 group has in -- concluded, the $6 million needed for 15 the SEIS as a top priority phase one -- for 16 phase one funding. 17 This three-year study needs to be completed 18 in order to start up with the next phase of 19 construction. 20 I'm going to give you a little bit of 21 background. 22 Continental 1, as Senator Young said, is a 23 bi-national multi-state coalition. We're dedicated 24 to the development of, not just Route 219 in 25 New York, but the entire corridor. 1 Most of that is complete. We have just 2 167 miles to go, only 20 of that in New York. The 3 vast majority of the miles to be completed are in 4 Pennsylvania. 5 Our primary objective is to act as an 6 economic development catalyst in the region. 7 We believe this most critical ingredient for 8 our future economic development is the completion of 9 a safe and fuel-efficient limited-access highway, 10 from Toronto, all the way down to Miami. 11 We've raised over $600,000 in Continental 1 12 in the past, and that's been -- that's just through 13 private donors, mostly in New York and Pennsylvania. 14 While improved safety and increased 15 efficiency of transportation are important, our 16 supporters' main goal is, support economic 17 development. 18 Connection is the key to our economic future. 19 Western New York will benefit from the new 20 jobs in logistics, higher education, manufacturing, 21 high-tech innovation, healthcare, tourism, 22 construction, and the service sector. Their 23 employment will be our economic development. 24 We've had a lot of good news lately: Over 25 84 percent of those in Western New York and 1 Western Pennsylvania support the completion of 2 Continental 1. 3 84 percent is a huge number. And I don't 4 know of any other initiative in Western New York 5 that can really have that kind of support. 6 Really, there's -- it's -- we are always 7 honored to have those who disagree, but the vast 8 majority of us really want the jobs that are going 9 to come with the completion of 219. 10 In Pennsylvania, that section is moving 11 forward as well. 12 The northern portion, Bradford has just 13 completed an over $100 million project, to 14 resurface, and change, their section of 219. 15 In the southern half, a $350 million project 16 is about to go back online, that was also pulled, 17 like ours, when the economy went bad. 18 So, I also want to mention, that the 19 Marcellus Shale drilling that's going on in 20 Western Pennsylvania, is really a game-changer for 21 Continental 1. 22 The heavy trucks that are used to haul water, 23 really degrade the roads. So, a four-lane 24 interstate is definitely going to be a better way to 25 carry that heavy water. 1 Whether or not we have drilling in 2 Western New York, those trucks are going to affect 3 our roads as well. 4 So, completing 219 is a safety issue, and 5 it's an issue for long-term planning. 6 In order to resume construction with -- let's 7 say, in five years, we need to plan now for this 8 transformational project. 9 We're fortunate that Senator Young has asked 10 several innovative experts to share their thoughts 11 on funding. 12 It's a complex and challenging issues, and we 13 have some of, really, the best minds in the region 14 today, to really share what they think is the best 15 way to go forward. 16 We're also really fortunate that 17 Senators Maziarz and Young were nice enough to 18 introduce myself and a couple members of our board 19 to State Senator Fuschillo. 20 I'm very honored to say, that he has pledged 21 his support for the 219 project, and, he's pledged 22 to support inclusion of funding in the next capital 23 plan. And, we look forward to testifying at the 24 budget hearings in January. 25 Once again, I urge you to support allocation 1 for the $6 million. 2 And, I would be honored to have any 3 questions. 4 Thank you. 5 SENATOR YOUNG: Thank you, Meg. 6 I just have a couple of questions, and then 7 I'll turn it over to my colleagues. 8 I do want to clarify, too, Senator Fuschillo 9 is chair of the Senate Transportation Committee; 10 recently, in Western New York, to talk about key 11 transportation projects. And, we're very happy to 12 have his support also. So -- especially, as we 13 start the new session and the new budget in January. 14 SENATOR GRISANTI: Yes. 15 SENATOR YOUNG: I was wondering what the 16 commitment -- you touched on it, but what's the 17 commitment from the other states, as you go 18 throughout the 1,500-mile route? 19 MEG LAUERMAN: Well, Continental 1 is, 20 Toronto to Miami. Most of the states have 21 Continental 1. 22 It's Route 95, you know, down in Florida. 23 Toronto, the QEW is being expanded. 24 Our commitment is extraordinarily high. 25 If you think it's important here, go to 1 Southern Pennsylvania. That is their everyday 2 front-page issue: completing Route 219. 3 Pennsylvania, West Virginia, and Maryland are 4 all really working together, in a consortium, to 5 complete their section of 219. And, it's really the 6 top issue in that area. 7 So, we're not in it alone. Other states are 8 working just as hard, if not harder, than we are. 9 SENATOR YOUNG: And you see a renewed 10 commitment in Pennsylvania? 11 MEG LAUERMAN: Absolutely. 12 SENATOR YOUNG: Okay. 13 MEG LAUERMAN: A northern, and southern, that 14 would be two different projects. 15 SENATOR YOUNG: So that's why it's really 16 important that New York State renews its commitment 17 also? 18 MEG LAUERMAN: Right. 19 Everyone really looks to us to be the 20 leaders. 21 Right now, we're following a little bit, but 22 any movement we have here in New York is really 23 going to spur them to move on their sections. 24 SENATOR YOUNG: Thanks, Meg. 25 Could you be a little bit more specific about 1 the economic benefits to Western New York? 2 Are there a number of jobs that could be 3 associated with the project, for example? 4 MEG LAUERMAN: Yes. This an issue, I think 5 we can all agree, that's been studied to death. 6 There would be at least 7,000 direct jobs, 7 just in New York, with the completed Route 219. 8 And that's -- that's an old figure from 2003, 9 but -- and it's also part of a national study. 10 So, in my mind, that's a bare minimum. 11 SENATOR YOUNG: That's a bare minimum. 12 And, then, on top of that, there are, for 13 example, Holiday Valley, some tourism 14 destinations -- 15 MEG LAUERMAN: Right. 16 SENATOR YOUNG: -- that would benefit also? 17 MEG LAUERMAN: But that doesn't -- yeah, that 18 7,000 really doesn't begin to touch on the jobs that 19 would be brought in, because, more students would be 20 able to attend our colleges, let's say. 21 Or, that their local hospitals would have a 22 wider reach on who they would bring in to work here, 23 because, doctors want to work in Olean, but they 24 also want to be able to go up to Toronto for the 25 weekend. 1 Route 219 would really make Olean a more 2 attractive place. 3 SENATOR YOUNG: And other places all around 4 New York -- 5 MEG LAUERMAN: That's right. 6 SENATOR YOUNG: -- and Western New York? 7 MEG LAUERMAN: Yes. 8 SENATOR YOUNG: Thank you. 9 Senator Grisanti, did you have some 10 questions? 11 SENATOR GRISANTI: I have no questions. 12 I just thank you for being here. 13 And, I thank you for being a strong advocate, 14 and pushing this forward, and keeping it on the 15 radar screen. 16 Thank you. 17 MEG LAUERMAN: Thank you. 18 SENATOR YOUNG: Any of my colleagues? 19 SENATOR GALLIVAN: I do. 20 SENATOR YOUNG: Okay, Pat; Senator Gallivan. 21 SENATOR GALLIVAN: Meg, could you just 22 clarify the 7,000 jobs? 23 Is that after construction, or it includes 24 construction jobs, so they would be 7,000 permanent 25 jobs? 1 MEG LAUERMAN: Those are 7,000 permanent 2 jobs. 3 SENATOR GALLIVAN: With the economic 4 development that would -- 5 MEG LAUERMAN: Right. 6 SENATOR GALLIVAN: -- come about as a result? 7 MEG LAUERMAN: That's right. 8 SENATOR GALLIVAN: Okay, thank you. 9 SENATOR YOUNG: Thank you. 10 Senator Kennedy? 11 SENATOR KENNEDY: Ah, yes. 12 Meg, thank you very much. 13 I just wanted to take this opportunity to 14 thank you for your advocacy. I know you've been 15 working on this for a long time. And, it's great to 16 see that we're finally get something movement in the 17 Senate, with the commitment from the Chair of the 18 Transportation Committee. 19 I've worked with you on this issue, back to 20 my days in the Erie County Legislature, so I know 21 you've been on the forefront of this. And, I just 22 wanted to extend my gratitude. 23 MEG LAUERMAN: Well, you know, not to echo 24 your own words back you to, Senator, but, 25 Western New York, for the last several years, as you 1 have been saying very strongly, has not gotten our 2 fair share of construction funding. 3 And, it would -- it would bring some equity 4 to the table for, at the very least, to get the SEIS 5 on board. 6 SENATOR YOUNG: Thank you. 7 MEG LAUERMAN: Thank you. 8 SENATOR YOUNG: Our next speaker is 9 Mr. James Manno, Jr., vice president of sales and 10 marketing with Sonwil Distribution Center, 11 Incorporated. 12 Thank you so much for being here. 13 JAMES MANNO, JR.: Good morning. 14 SENATOR GRISANTI: Good morning. 15 JAMES MANNO, JR.: Thank you for the 16 opportunity to be here to represent, what I will 17 call, a very important constituent to this whole 18 effort; and that would be, the private sector, and 19 the ability to move goods and services throughout 20 Western New York, and on, down. 21 As you've commented, there's a lot of route, 22 east and west; not much going north and south. And, 23 yet, we all know that this part of the world is 24 where the vast majority of population of consumers 25 are, not to mention, Southern Ontario and Toronto. 1 I'd like to speak on a couple of fronts. 2 I represent Sonwil Distribution, and we are a 3 logistics provider, a family-owned business. Been 4 in Western New York for over 60 years. 5 We've had the opportunity to see the growth 6 of a lot of our current customers, who are very 7 large, national, international, customers, as well 8 as local. 9 But, recently, a significant amount of 10 interest from the northern part of the border, with 11 companies that are wanting to move into the U.S. to 12 tap into the consumer base, and actually get a 13 foothold on what is, still, you know, the largest 14 economic opportunity that they'll have. 15 And, with the border, and the opportunity to 16 have the 219 going from Toronto, significant 17 advantage for those businesses that are trying to 18 get a foothold in the U.S. 19 The border and the border crossing aside, the 20 other opportunity is, that, if we look at, Sonwil 21 made an investment about three years ago at the 22 Lakeside Commerce Park. 23 Why is that important? It's in the backyard 24 of the CSX intermodal yard. 25 CSX is a huge provider of rail service 1 throughout the United States, but significant growth 2 in the Ohio, and New York State, into Canada, over 3 this past three or four years. 4 We strategically located there because we do 5 utilize CSX and rail for a significant amount of our 6 customer base. 7 That Ship Canal Parkway facility has, on a 8 daily basis, anywhere from 100 to 175 trucks, in and 9 out, 24 hours a day, 6 days a week. 10 Our ability to be able to utilize a route 11 that would take customers, and their products and 12 services -- 13 Thank you, Meg, I'm going to do you a little 14 more justice now. 15 [Laughter.] 16 JAMES MANNO, JR.: -- their products and 17 services, north and south, is important. 18 To be able to bring product up from the ports 19 of New York and New Jersey, to Buffalo, as a 20 stopping point for intermodal, is in the very near 21 future. 22 So, our ability to take those containers off 23 of that rail, put them on trucks and move them 24 north-south, and specifically, into the Toronto 25 marketplace, is something that the rail is actually 1 counting on. 2 So, they're very interested in knowing what's 3 going on with road improvements, and connections or 4 links, to major metropolitan and consumer areas. 5 I also represent the Buffalo Niagara 6 Enterprise, and Buffalo Niagara Partnership 7 Logistics Council. 8 Jack Ampuja, who's in the audience, myself, 9 co-chair of that. 10 That's made up of a number of logistic 11 professionals from companies in Western New York. 12 This is our number one topic: How do we 13 become more cost-effective and efficient in moving 14 goods and services, from where they're produced, to 15 the end user? 16 So, that supply chain, and the ability to 17 utilize road, is very, very important. 18 Those of you who understand what's going on 19 at the transportation industry, realize that it's 20 important to take fewer -- less time to get products 21 to market, reduce the number of trucks that are on 22 the road; which means, make sure that they only have 23 a shorter distance to go, or more direct route. 24 And, the number of drivers is shrinking 25 dramatically, for those of who want to drive 1 over-the-road long-haul. 2 So, anything you can do to shorten that 3 connection between the manufacturer of the goods and 4 the user of that consumer product, is going to only 5 add to the ability to still make sure you can get 6 your product to market. 7 With all the growth we're talking about, 8 economically, from bringing in manufacturing here, 9 you have to have -- it's a "chicken and egg." You 10 have to have the ability for them to be able to 11 produce -- and, yes, energy, low-cost labor, 12 education of the work force -- but if they can't get 13 their products, from where they're manufactured or 14 warehoused, to the consumer, you know, a low-cost, 15 efficient way, they'll go where they can. 16 So, it's one of those critical elements in 17 the whole equation to establishing Western New York 18 as, truly, an opportunity for people to grow their 19 businesses, stay here, and to bring new businesses 20 here. 21 SENATOR YOUNG: Great. 22 Any questions? 23 Yes, Mr. -- 24 SENATOR KENNEDY: Jim, thank you very much 25 for your leadership on this issue, for your 1 leadership in the community, and in the business 2 sector especially. 3 Sonwil is right in the heart of the 4 58th District that I represent. I've had an 5 opportunity, as you know, to tour the facility. 6 It's an extraordinary example of how the 7 expansion of the 219 could have a direct impact on 8 creating jobs here, not just in the infrastructure, 9 and the expansion of the infrastructure, but, 10 rather, in the logistical nature of your business, 11 in the distribution business. And it is a business, 12 and it's a growing business. And Sonwil is a 13 perfect example of the distribution business 14 growing. 15 It's my understanding that the footprint of 16 Sonwil is going to double in the course of the next 17 couple of years, if not sooner. 18 And, so, with that, there are jobs; with 19 that, we need to make sure that we're doing our part 20 to ensure the viability of your business, and other 21 businesses like it. 22 And so, again, I appreciate your commitment 23 to this work. 24 And I guess, getting to my question, it is, 25 if you could, just further explain, rather than I, 1 the -- where we are in history, as it pertains to 2 the expansion of the Panama Canal, the New York 3 Harbor, the infrastructure that we have here in 4 Buffalo and Western New York; how that's going to 5 impact the distribution industry, your business, and 6 other businesses like yours, and help create jobs; 7 again, not just in the infrastructure expansion, but 8 also in what comes after that expansion. 9 JAMES MANNO, JR.: I would be glad to, and, 10 thank you. 11 And, thank you. Sonwil is very proud to be a 12 part of what's been a community that's been, 13 probably, shortchanged, as far as what it has as 14 opportunities and assets to help with the whole 15 development of manufacturing and distribution. 16 But, more importantly, and I'm not sure how 17 many of you in the room know, five or six years ago, 18 the decision was made for CSX to put an investment 19 in the intermodal yard. 20 At that point in time, there was a strategy 21 that was put in place, bringing some partners 22 together: the Port of New York/New Jersey, CSX, the 23 legislative groups here in Western New York, the 24 mayor's office, the county executive, and the 25 private sector; which is one of the reasons why, 1 again, we located where we did, our warehouse, at 2 Ship Canal Parkway. 3 What was coming, was the expansion of the 4 canal. And with that, was going to come the ability 5 for something that's very important to global 6 economics, and that's the ability to move product: 7 more product, per vessel, shorter period of time, 8 globally, from anywhere in Asia, to China, to 9 South America. 10 These ships are being built as we speak, in 11 anticipation of being able to move through the 12 canal, which has to be widened and deepened in order 13 to do that. That work is almost done. 14 What that's going to do, is increase the 15 amount of products and services that are going to be 16 imported and exported via the canal, and the 17 East Coast. The Port of New York/New Jersey, 18 Carolinas, are going to be the beneficiaries of 19 that. 20 Beneficiaries, in what respect? What it 21 means is, that, while some would look at the Port of 22 New York and New Jersey, and say, very congested, 23 very difficult to determine how you could grow those 24 areas, Port of New York and New Jersey decided with 25 CSX, that if they could find a way to move those 1 products as they come on shore, in the port, and 2 move them north, to a location as strategically 3 positioned to shorten the distribution of those 4 products and services; to be able to bring products, 5 by container, to a port, to a destination, to a 6 distribution facility, where they can be broken 7 down, re-sorted, put on trucks, and distributed, 8 would be very advantageous. 9 We've been chosen to be one of those 10 destinations, if not, the destination for that to 11 happen. 12 So, increased traffic through the channel, 13 increased opportunity through the Ports of New York 14 and New Jersey, opportunities for CSX to move goods 15 and services via rail and container, to Buffalo, to 16 the intermodal yard, increased opportunity for 17 distribution out of Western New York. 18 What's going to come with that, is going to 19 be the opportunity for growth in jobs in the 20 logistics area; in evaluated-services area, where 21 you're doing fulfillment, repackaging, light 22 assembly. 23 And, in addition to that, and in the room, we 24 do have some people that are very familiar with 25 foreign-trade zone, and what that advantage is to 1 bringing goods and services in. 2 Sonwil is in the very final stages of being 3 foreign-trade-zone certified. 4 What will that bring? Lower-cost 5 opportunities to bring goods and services from 6 offshore into the U.S., reducing the cost of tariffs 7 and duties, and the opportunity to reassemble or 8 distribute, just in time; which is critical today in 9 the world of consumer purchasing. 10 So, yeah, a significant opportunity. 11 And it's probably, spring of next year, that 12 we're going be sitting down with CSX, and their 13 intermodal team, to talk about how we further that 14 strategy. 15 Something else that's sort of, uhm -- uhm, 16 quietly below the radar, CSX has just has been 17 contracted by Maersk, the largest ship line in the 18 world, to be their dedicated rail source for the 19 United States. 20 So we're looking at the opportunity to talk 21 about this with Maersk, who controls where large 22 international companies move their goods and 23 services internationally. 24 So, there are a number of pieces that are 25 coming together. It's sort of the puzzle, and it's 1 starting to formulate, but, with that, is going to 2 increase the opportunity. 3 And, the importance of Western New York is, 4 the close proximity of Toronto and Southern Ontario. 5 So, I hope that answers sort of where you 6 were looking for -- 7 SENATOR KENNEDY: Perfectly. Thank you. 8 SENATOR YOUNG: Anyone else? 9 SENATOR GRISANTI: Jim, just a comment; and 10 I'd flip this in reverse, and see if you agree with 11 me. 12 There has been talk, considering that 13 Niagara Falls Airport has the third largest runway 14 in the world, and it's underutilized; 15 And, Pearson Airport in Toronto, as you were 16 just saying, and in New York, those particular ports 17 are extremely congested. 18 With the expansion of 219, you know, there's 19 not a problem with us bringing goods. There are 20 people that want to bring goods into Niagara Falls. 21 JAMES MANNO, JR.: Uh-huh. 22 SENATOR GRISANTI: The problem is, the plane 23 does not want to leave empty. 24 So, you can bring, whether it's perishable, 25 or whatever the products, or whatever they are, we 1 can get it in here, but the plane doesn't want to 2 leave empty. 3 So, with your particular distribution site, 4 and the completion of 219, and goods that you have 5 coming in, on rail, or what have you, would probably 6 make it more advantageous than to ship it, faster, 7 to fill those planes. 8 I mean, you can have -- there's -- in other 9 words: There's not one large manufacturing company 10 that can fill a plane to leave the airport. But 11 there are probably several businesses that have 12 products, that if there's some sort of a 13 conglomeration, where you're together, on moving 14 those products out; or, because you have the 219, 15 and you're talking about the rail bringing in, you 16 could probably bring products up to the airport, and 17 ship it out through Niagara Falls. 18 Wouldn't that be the case? 19 JAMES MANNO, JR.: Very much so. 20 I mean, it's one of those: We want to 21 increase exports. In order to increase exports, you 22 have to have imports. -- because, you have to have 23 the equipment that moves both ways. 24 SENATOR GRISANTI: Right. 25 JAMES MANNO, JR.: So, in respect to that, 1 the cost of moving empty, versus full, is a 2 deterrent to bringing in anything in the first 3 place. 4 So, the access to that route, the ability to 5 move from, Toronto, Southern Ontario, to a location 6 where that product can be stored, co-mingled, and 7 ultimately shipped out in bulk, or in large 8 quantity, certainly would be advantageous. 9 SENATOR GRISANTI: Okay. 10 JAMES MANNO, JR.: And the key is, everybody 11 who ever comes to Western New York, you tell them: 12 It's only 20 minutes. 13 Literally, it's only 20 minutes, to get from 14 any part of Buffalo, or Western New York, the eight 15 counties, you know, to other side. 16 SENATOR GRISANTI: Right. 17 JAMES MANNO, JR.: So the key is going be, to 18 be able to have infrastructure to support that, at 19 the Niagara Falls International Airport, and tieing 20 that into 219 shouldn't be difficult, because you've 21 got the main route. Now you just need to have the, 22 sort of the offshoots, to able to tie into that. 23 SENATOR GRISANTI: Right. 24 All right, appreciate it. 25 Thanks, Jim. 1 SENATOR YOUNG: Anyone else? 2 Thank you, Mr. Manno. 3 JAMES MANNO, JR.: You're welcome. 4 Thank you. 5 SENATOR YOUNG: Our next speaker is 6 Alan Pero. He's international supervisor of the 7 International Union of Operating Engineers, No. 17. 8 Work on all kinds of large road and bridge projects; 9 and, also, high-profile construction projects across 10 Western New York. 11 Welcome. 12 ALAN PERO: Senator Young; Senators Grisanti, 13 Kennedy, Maziarz, Gallivan; Assemblymen: 14 I thank you for the opportunity to represent 15 my organization, and present to you our concerns in 16 what we believe to be the value that would be added, 17 to not only our membership, but to the community, as 18 a result of the Continental 1 continuing to be 19 constructed. 20 By way of background: 21 My name is Alan Pero. I am the international 22 supervisor for the International Union of Operating 23 Engineers, Local No. 17, located in Lakeview, 24 New York. 25 The geographical jurisdiction of Local 17 1 includes counties of Erie, Genesee, Orleans, 2 Wyoming, Cattaraugus, and Chautauqua. 3 Our craft jurisdiction includes two-fold: 4 One, as boiler technicians in buildings, such 5 as the one we're in today; 6 But in addition to that, we are 7 heavy-equipment operators. We build roads, bridges, 8 buildings, and do significant work within the 9 quarries in Western New York. 10 As many of you know, in the previous 11 three years, it's been the most difficult financial 12 times since, I understand, the Great Depression. 13 I recently heard a statistic, relative to the 14 unemployment, that suggested, there hasn't been a 15 period of time in which there have been consecutive 16 years of 10 percent of unemployment since the 17 '30s. 18 The members that I represent, on average, in 19 a good employment season, perhaps work 1,400 hours 20 per year. 21 In the last three years, many have only 22 averaged 1,100. 23 But I think more importantly, it's better to 24 understand, those brothers and sisters that have 25 averaged less than 100 hours of employment 1 opportunity. Less than 100 hours of opportunity 2 certainly has had a drastic impact on their 3 earnings, but more importantly, it affects other 4 items, such as health-and-welfare benefits. 5 Compounding this downturn of employment 6 opportunities for our membership, Region 5, the 7 region that covers Buffalo Niagara, has been 8 impacted by the loss of revenue of $167 million, 9 plus or minus. 10 In addition, this year alone, the 11 Buffalo Niagara region for the New York State 12 Thruway Authority has lost $183 million of 13 employment opportunity. 14 So, in totality, we've lost the opportunity 15 for $350 million worth construction in the Western 16 region, while our roads and bridges continue to 17 deteriorate and create safety concerns, for our 18 families; our families that reside in this 19 community. 20 In the construction industry, manpower 21 generally runs, approximately, 35 percent of the 22 overall cost. So when you look at the impact lost 23 of 350 million, it equates to about $122 million of 24 employment opportunity. 25 When you give consideration to the 1 compounding effect of the construction dollar in the 2 community, there are billions of dollars of impact 3 as a result of this in Western New York. 4 So while I recognize we were here to talk 5 about the value of the 219, I think that highlights 6 the significance of a project, such of this 7 magnitude, being approved. There's a great need for 8 employment opportunities here. 9 My last sentence, I put: What would it mean 10 to the local community? Simply, the economic engine 11 that has been missing in Western New York since the 12 demise of big steel. 13 I witnessed it in a city I once resided in: 14 Pittsburgh. 15 There was a street called "East Street," and 16 our northwestern community could not make it into 17 the city. 18 The local community responded to that by 19 building the bypass for the 279. 20 As a result of that, you know, Pittsburgh is 21 an outstanding economic -- outstanding city as a 22 result of the economic opportunity resultant of the 23 construction of that particular roadway. 24 I see the same occurring here with the 219. 25 Let's give consideration to, a few weeks ago, 1 in the town of Ellicottville, what a fantastic 2 festival for the community in Western New York. 3 But, I like to ask, if you may, 4 Senator Gallivan, in your prior years of law 5 enforcement, give consideration to, not the negative 6 impact to this city, or the town, by improving the 7 ingress and egress of those that are visiting the 8 city; imagine, at least, as I stammer, excuse me, a 9 different scenario, where, you know, if anyone has 10 ever attended that event, you have parking up to 11 two miles away, just to go in and enjoy the 12 festivities. 13 Imagine, on that small narrow two-lane 14 stretch of highway, those tens of thousands of 15 automobiles trying to get in and out of 16 Ellicottville. 17 So it's not that the extension of the 219 18 would have a negative impact on the town and its 19 festivities, it would provide value to that 20 community, by bringing safety: safety for ingress, 21 safety for egress. 22 Perhaps increased economic opportunity, as 23 those folks that are turned off, because of the 24 difficult nature in attending the event, will now 25 perhaps see it's a great event to continue to go to. 1 I want to talk a little bit about, at least 2 from my perspective, the value of the 4.2 miles that 3 recently was completed. 4 I understand that the value of that project 5 was about $130 million. 6 So, again, utilizing my calculations, at 7 35 percent, at $130 million, is representative of 8 the employment costs for that particular project, 9 that project represented $45 million for labor. 10 Operating engineers, labors, iron workers, 11 heavy carpenters; members of our local community. 12 Members that reside here. Members that pay taxes 13 here. Members that are concerned, just as we are, 14 of the safety for our loved ones as they travel. 15 I included an example given by 16 Dr. Michael Waldren. He's a professor from 17 North Carolina. And I certainly am not going to 18 bore you by reading all of it. I just want to read 19 one small paragraph on page 2, if I may. 20 "When workers with new dollars spend some of 21 those new dollars in local restaurants, 22 supermarkets, local malls, department stores, those 23 dollars become income to the owners and workers in 24 those enterprises. Likewise, these owners, workers, 25 and local restaurants, supermarkets, and other 1 shops, will, in turn, spend some of their new 2 dollars on locally produced goods and services; so, 3 those dollars become income a third time, to the 4 local citizens." 5 So, earlier, we heard Ms. Lauman -- 6 Lauerman, excuse me, testify, that the construction, 7 or the completion, of this roadway would create 8 7,000 new jobs. 9 In addition to the construction jobs, 10 7,000 individuals, to spend new dollars, on a 11 continued basis, in our community. 12 Why wouldn't we want to build this? 13 I thank you again. 14 SENATOR YOUNG: Thank you, Mr. Pero. 15 Any questions? 16 Okay. 17 Thank you so much. 18 ALAN PERO: Thank you, again. 19 SENATOR GRISANTI: Thank you. 20 SENATOR YOUNG: Next speaker, 21 Ms. Kathryn Friedman, Ph.D., Esquire, 22 deputy director, University at Buffalo Regional 23 Institute. 24 Thank you so much for being here. 25 DR. KATHRYN FRIEDMAN: Thank you. 1 Well, good morning. 2 First, I'd like to thank you, Senator Young, 3 for inviting me to speak to you today. 4 I'm going to take the next five minutes to 5 present a North American overview of why 6 Continental 1 represents an opportunity for growth 7 to Western New York. 8 And, although my remarks are big picture, and 9 my two slides are quite simple, I hope that these 10 demonstrate the practical consequences for the 11 Buffalo Niagara region. 12 In today's globalized economy, we often hear 13 about the importance of the Canada-U.S. 14 relationship, which is often characterized as one 15 where we make "stuff" together. 16 This "stuff" flows over the international 17 border via complex continental intermodal 18 transportation patterns and linkages, which are the 19 crux of the twenty-first century economic exchange. 20 These intermodal transportation patterns can 21 cut both ways for Western New York. 22 Let me see what I've got here. 23 Hang on. 24 I just have two slides. 25 (Slide being shown.) 1 Okay, on the one hand, you have initiatives, 2 like North America's Super-Corridor Coalition, 3 commonly referred to as "NASCO." 4 NASCO is a tri-national non-profit coalition 5 that is lobbying to create a 2,400-mile multi-modal 6 transportation network, stretching, from Canada, 7 through the United States, and deep into Mexico. 8 NASCO is comprised of both public and private 9 stakeholders, including departments of 10 transportation from state and local governments, and 11 private enterprises, such as freight forwarders and 12 trucking companies. 13 This coalition has drafted plans for an 14 intermodal trade route strategically linking ports 15 in Mexico with intermodal rail hubs and inland ports 16 through the use of Interstate Highways 35, 29, and 17 94. 18 This proposed trade route would direct the 19 flow of trafficking goods from Canada, south, 20 through the Ambassador Bridge in Detroit-Windsor, 21 bypassing Buffalo Niagara, and then through the 22 midwest to Laredo, Texas, and then across the 23 Mexican border. 24 It is being pitched as a means to spur 25 increased commercial activity along the routes 1 slicing through the Midwest, but also as a means to 2 facilitate the use of the Mexican-Pacific coastal 3 ports as an alternative to the overburdened Ports of 4 Long Beach and Los Angeles. 5 As you can see in my slide, the bi-national 6 Buffalo Niagara ports of entry are cut out of this 7 system. 8 (New slide being shown.) 9 Continental 1 is a counter to NASCO that 10 presents opportunity for the regional economy. 11 Establishing a four-lane trade-and-travel 12 corridor, stretching from Miami, Florida, in the 13 U.S., to Toronto, Ontario, in Canada, would, first, 14 ensure that the bi-national region maintains its 15 place as a critical link in Canada-U.S. trade flows; 16 And, second, secure access and mobility for 17 businesses engaged in cross-border trade in the 18 Buffalo Niagara region, and beyond. 19 This positioning is vital to maintaining and 20 strengthening the region's strategic location in 21 global and continental trade. 22 With close to $645 billion worth of goods 23 annually flowing across the Canada-U.S. border, 24 30 percent of which crosses here in the bi-national 25 Buffalo Niagara region, this is a position, in my 1 view, that we want to leverage. 2 Thank you. 3 SENATOR YOUNG: Thank you so much, 4 Dr. Friedman. 5 Does anyone have any questions? 6 SENATOR GRISANTI: I would just say, Doctor, 7 that what I just saw there, pictures do speak a 8 thousand words; and, that NASCO would definitely not 9 be good for our area whatsoever. 10 So, by just seeing that, you know, was proof 11 that you need to get this project moving, because, 12 and to tie in with the other things, I mean, you're 13 talking about, with the canal expansions, and 14 everything else, that will be beneficial, as we just 15 heard from our other speakers, for this corridor. 16 But, the other corridor that you showed, with 17 NASCO, not -- not something to be good for this area 18 whatsoever. 19 So -- 20 DR. KATHRYN FRIEDMAN: That's correct. 21 SENATOR GRISANTI: And that's underway I, 22 take it? 23 DR. KATHRYN FRIEDMAN: Yes, yes. 24 SENATOR GRISANTI: Okay. 25 Thank you. 1 DR. KATHRYN FRIEDMAN: Thank you. 2 SENATOR YOUNG: I would like to point out, 3 that we've been joined by our colleague, 4 Assemblyman Robin Schimminger. 5 Thank you for being here today. 6 ASSEMBLYMAN SCHIMMINGER: Thank you, Cathy. 7 SENATOR YOUNG: Okay, thank you very much, 8 Dr. Friedman. 9 Our next speaker is Dr. Steven F. Mayer, 10 assistant professor, College of Business 11 Administration, and, director of technology, 12 Commercialization Clinic, at Niagara University. 13 Welcome very much, Dr. Mayer. 14 DR. STEPHEN F. MAYER: Well, thank you very 15 much. 16 And, I would like to thank the Senators and 17 the Assembly members for hosting this meeting this 18 morning. 19 I wanted to take -- I have some written 20 testimony, but I've entered that into the record, 21 and you'll have all of that. 22 I'd like to take a little bit different tact 23 with you, if I might, this morning; maybe a, sort of 24 a bigger-picture tact. And, I would like to talk to 25 each one of you on the dais, about what it is, as 1 legislators, and as policymakers, what it is you can 2 do to help move this along. 3 I've been involved with Continental 1 since 4 early 1990s. 5 I am the former general manager of the 6 Peace Bridge, for 10 1/2 years. So, not only am I 7 battle-scared by that experience, I'm also like to 8 think that I'm battle-hardened by that. 9 As a -- I've spent 35 years in the 10 infrastructure business, working all over the world. 11 And I still do; travel about 2,000 miles a week, 12 throughout North America, Middle East, and different 13 places. 14 I had the distinct pleasure, a few years ago, 15 of speaking to then-Governor Paterson's SAM 16 Commission -- the State Asset Maximization 17 Commission -- looking at public-private 18 partnerships. 19 The genesis of that, of course, is the 20 Tappan Zee Bridge, which is a strategic asset of 21 New York State, and something that really, 22 obviously, has to be dealt with. 23 The -- and at Niagara University, of course, 24 I'm a college professor, but I also work in a 25 technology commercialization clinic, so I get to see 1 how businesses with trying to commercialize existing 2 or new technologies in new ways, and grow this area. 3 So here's what I'd just like to focus on; 4 here's what I'd like to focus on with you today: 5 We've done a lot of studies in this area. 6 We've done a lot of studies. 7 Peace bridge alone, probably 35 to 45 million 8 dollars worth of environmental studies, engineering 9 work. 10 It's all good stuff. 11 The technical issues are rock solid. The 12 environmental issues are sound. Good work has been 13 done. 14 Think about, broadly, for a minute, and where 15 we stand in New York State: New York State is a -- 16 has a tremendous strategic tapestry for 17 international trade, tourism, and travel. 18 If you work from the eastern part of the 19 state, say, from the Plattsburg Crossing, they're 20 served by I-87. 21 The crossings over the St. Lawrence are 22 served by Interstate 81. 23 We, here, don't have a real north-south 24 route, an efficient one. We have an east-west 25 route. 1 So, for many years, 219's been on our radar 2 screen. In fact, you know, and everyone in this 3 audience knows, that this has been the lifelong 4 passion for a lot of people. The 219 associations 5 have been in existence for over 50 years. 6 So, we're soldiering on, and you've got to 7 give people a lot of credit for having, you know, 8 the dedication, and the willingness, to -- that sort 9 of stick-to-it-ness. 10 I have a chance, I work a lot, as I said, 11 throughout North America; and, in particular, 12 especially in Canada, the U.S., and, again, 13 overseas, and I work on public-private partnerships. 14 And I was thinking, when I commented back in 15 '08, I looked at: What is really stopping, or 16 creating problems for, these projects to move 17 forward? 18 Again, it's not about the engineering work. 19 It's not about the studies. And I'm not saying that 20 because I'm also a professional engineer. 21 At the end of the day, it comes down to very 22 tough decision-making. 23 And I will tell you the commonalties that I 24 see, and what my recommendations are for the State 25 of New York. 1 First, they start with institutional issues, 2 the legal framework. 3 So, for example: Do we have public-private 4 partnership legislation in New York State? 5 The answer is: No. 6 30 other states -- "30 other states" -- do, 7 as of the spring of this year. 8 Design-build legislation: The whole area of 9 alternative project delivery, do we have that? 10 Not very well. 11 Maybe we're testing it, but it's not 12 engrained in the legal, you know, in law, and it's 13 not used. It's used in most other cases. 14 The other is, the right organizational 15 structure: Who should deliver this project? 16 New York State DOT. 17 If there's anybody here from the 18 Thruway Authority, they'll probably shoot me. 19 Maybe the New York State Thruway Authority 20 should be here. 21 Maybe part of 219 should be tolling. 22 I know tolling's anathema to talk about, but 23 I will tell you this: Worldwide, major 24 infrastructure projects are being built with user 25 fees, because the public recognizes that, okay, you 1 have to pay for this infrastructure. 2 They really care about two things, by the 3 way: 4 I don't want to stop to pay a toll. 5 Mobility's important to me; 6 And, anything I'm paying for any piece of 7 infrastructure, I want the money to go back into 8 that infrastructure. 9 Study after study after study, has 10 demonstrated that. 11 The -- so, those are important things. 12 Here's where I'll conclude: 13 We have this toolbox. This toolbox is not as 14 big as it could be. 15 You, as legislators, and policymakers, have 16 to figure out a way to expand that toolbox: 17 alternative project delivery, public-private 18 partnerships. 19 I used to work with a fellow who used a 20 quote, that I steal from him all the time: We're 21 talking, now, about the art of the possible. 22 We need to be creative; we need to get on 23 with these issues, and not find refuge in study 24 after study after study, but, get on with it, and 25 get on with the policies, and the -- because it's 1 important to our region, it's critical to our 2 region. 3 I see it all over the world. 4 People look at pieces of infrastructure, like 5 Continental 1, 219, and they view it in a strategic 6 trade context. It's part of that whole mosaic, if 7 you will, of what we need to do, to improve our 8 competitiveness. 9 On that note, I'll shut up, and take any 10 questions or comments you might have. 11 SENATOR YOUNG: Thank you, Dr. Mayer. 12 I just want to comment: You mentioned the 13 Tappan Zee Bridge. And Meg Lauerman mentioned that 14 Senator Fuschillo, Chair of the Senate 15 Transportation Committee, was here recently; and I 16 serve on that committee too. 17 And I want to assure that you we're looking 18 at creative ways to find solutions. And, the 19 public-private partnerships are an area that we've 20 identified as a real opportunity to advance 21 transportation needs in the state. 22 So, I appreciate, very much, you brought that 23 up. 24 DR. STEPHEN F. MAYER: Thank you. 25 SENATOR YOUNG: Good. 1 Anyone else? 2 Thank you very much. 3 ALAN PERO: Thank you. 4 SENATOR YOUNG: Very beneficial. 5 Our next speaker is Mr. John Manzella, 6 president of Manzella Trade Communications, 7 Incorporated. 8 Thank you for being here. 9 JOHN L. MANZELLA: Senator Young, thank you 10 very much for the invitation. 11 Distinguished Senators and Assembly members, 12 thank you very much. 13 What I'd like to do, is provide a bit more 14 background, looking at our competitive advantage, 15 and how 219 enhances that competitive advantage. 16 We have some real assets here in 17 Western New York that sometimes go overlooked. 18 Since the building of the canal in 1825, 19 we've acquired the assets, the infrastructure, and 20 the efficiencies to become a world-class logistics 21 center, or a logistics hub. 22 And I think, if developed correctly, this can 23 generate sustainable economic growth, and create 24 well-paying jobs for this region, well into the 25 future. 1 Now, when I want to talk about the assets and 2 infrastructure, I'm talking about the major 3 railroads; the international bridge crossings; the 4 federal and state highway system, which we're 5 talking about; two international airports; one port; 6 et cetera, et cetera, et cetera. 7 Now, these facts are well documented by 8 statistics and reports put out by the 9 Greater Buffalo Niagara Regional Transportation 10 Council, the World Trade Center Buffalo Niagara; 11 there's a number of studies that all confirm and 12 document these facts. 13 There's also a very, very important point 14 here that's been brought up on a couple occasions 15 now, and that's our proximity to Canada, and our 16 role as an international gateway. 17 As a result of this combination of factors, 18 we've attracted custom brokers, consultants, 19 lawyers, accountants, bankers, who all understand 20 international business. 21 So, right within the confines of 22 Western New York, we've got a knowledge base of 23 people that understand international business very, 24 very well, unlike many other places. 25 We've also got, of course, the freight 1 forwarders, the warehousing, and fulfillment 2 operations. 3 So the question comes up: How are we 4 different than other logistics hubs? 5 How are we different than SmartPort in 6 Kansas? 7 How are we different? 8 And we have, here, a unique value proposition 9 that I don't believe any other region has; and that 10 is, we could offer companies -- whether they're 11 domestic companies, Canadian companies, foreign 12 companies, Chinese companies -- we could offer them 13 the ability to establish one location to penetrate 14 two markets. 15 So, if a company's interested in reaching 16 half the U.S. population and half the Canadian 17 population within a one-day truck drive, 18 Western New York is an ideal location. 19 Now, this can further be developed to support 20 light manufacturing and assembly operations, sort of 21 like a northern Maquiladora. 22 My first book was on U.S.-Canada free trade, 23 in '89. And since then, I wrote two books on NAFTA. 24 And, we've seen the development of the 25 North American Free Trade Agreement, and we've seen 1 the development of the Maquiladoras. 2 I'm talking about a more sophisticated 3 Maquiladora. 4 So there's -- when you talk about logistics, 5 you begin adding light manufacturing, you began 6 adding assembly. You then incorporate the benefits 7 of foreign trade zones. You then incorporate more 8 back-office services. 9 And when say "back-office services," I'm 10 talking about services -- sales, support, 11 fulfillment -- jobs that do not require face-to-face 12 contact with the customer. 13 This is an ideal location. 14 So I think, overall, this is a very, very 15 attractive value proposition to domestic and foreign 16 investors; and more so, if it's developed properly. 17 Now, the question will be -- it has been 18 raised often -- is: Why now? Why today? 19 Why not, 5 years ago? Why not, 10 years ago? 20 We've always had this competitive advantage, 21 but there's a series of new trends that are 22 recurring today that didn't exist, five years ago, 23 four years ago, three years ago. 24 I'm just going to touch on a number of those, 25 and we can go into detail later if you'd like. 1 I spend a good deal of time in China, in 2 Jiangsu Province. And what I've seen, is that 3 Chinese companies are beginning to follow the 4 Japanese model -- although I never use the "J" word 5 when I'm in China -- but, they're beginning to 6 invest in brick-and-mortar. 7 For the last decade or two, they've been 8 investing in long-term secure contracts for energy 9 and minerals in Africa, Latin America, and 10 elsewhere. 11 Now they're beginning to invest in 12 brick-and-mortar in the U.S., just as the Japanese 13 had done in the '80s. 14 So, establishing this as a logistics hub, a 15 very competitive logistics hub, I think we could 16 attract Chinese dollars to this area, in addition to 17 other Asian dollars. 18 Number one. 19 Number two, this is mentioned earlier: The 20 expansion of the Panama Canal is expected to be 21 completed in 2014. 22 So what does this mean? Larger post-Panamax 23 ships can pass through the canal with three times 24 more capacity. 25 That's three times more containers. That's 1 12,500 twenty-foot containers. It's absolutely 2 huge. 3 And as we all know, the Long Beach and 4 LA ports are always congested. When there's an 5 issue of a strike, business is held up for weeks or 6 months. 7 By traversing the Panama Canal, and coming 8 around to the East Coast, as Jim had mentioned, this 9 provides another opportunity. 10 There's only three ports on the East Coast 11 with 50-foot depths which allow for these heavy 12 post-Panamax ships. 13 I know the Port of Miami has been lobbying 14 federal members of Congress for funds, to dig, and 15 they haven't received it. 16 But there's only three ports on the 17 East Coast that can handle this traffic; and the 18 Port of New York/New Jersey is one of those. And 19 they're one of the biggest beneficiaries of this 20 change of behavior. 21 So, instead of going to California, you come 22 around. And it's, many cases, it's quicker. 23 So this means, we're talking about an excess 24 flow, additional business, for the 25 New York/New Jersey Authority -- Port Authority. 1 And we've met with them, and we've met with 2 CSX; and we've talked about, perhaps, taking that 3 excess, and processing that up here. 4 So, again, another tremendous advantage. 5 In addition, because of the 6 hyper-competitiveness, especially since the 7 post-recession ended here -- I mean, we're, 8 actually, probably still in it -- but companies have 9 been forced to specialize to a much greater and 10 greater extent, and just focus on their core 11 competencies. 12 So, what does this mean? 13 This means, if you're an engine manufacturer, 14 you just focus on engines, and you contract out 15 things that you don't have a core expertise in. 16 You core -- you focus out -- or, you contract 17 out warehousing, you contract out distribution, you 18 contract out logistics, because that's not your 19 expertise. You stick within your core competency, 20 because of the competition. 21 And this is the trend of businesses. 22 So, what does this mean? 23 This means, a logistics center, for example, 24 has become a whole business unto itself. Extremely 25 technically designed. It's amazing what you can do 1 now with some of these logistic centers. 2 We have that right here. We've got that at 3 Sonwil. We've got that at many companies locally. 4 So the key is, to take advantage of this 5 opportunity to continue to specialize and attract 6 these types of companies. 7 Additionally, I mentioned China. 8 Chinese labor rates have increased about 9 18 percent annually. 10 Now, when you take this and combine it with 11 the slow appreciation of the Chinese currency, the 12 overall employment costs in China have increased 13 20 to 25 percent. 14 So, what does this mean? 15 It's not the haven for manufacturing as it 16 was at one point. 17 So, for example: If your primary market is 18 the U.S., and you manufacture in China, that's 19 becoming a less-attractive incentive, to move to 20 China to manufacture, to ship back here. 21 Now, if you're business is primarily focused 22 on supplying the Chinese market, consumers in China, 23 consumers in Asia, then that's still a valuable and 24 attractive approach. 25 But if you're looking to manufacture 1 primarily for the U.S. market, the Chinese 2 manufacturing and infrastructure is becoming less 3 and less attractive. 4 Now, you take that, and you add increasing 5 fuel costs. So we know, once the global economy 6 really begins to take off, fuel is going to 7 skyrocket. 8 Once you take those -- that into 9 consideration, and other expenses related to 10 long-distance-applied chain management, it's already 11 been projected that manufacturing in the U.S. should 12 increase as a result of this. 13 So, in other words: Companies will begin to 14 back-shore products back to the U.S. So those 15 companies that previously offshored products are 16 likely to back-shore those. 17 If we have a very competitive logistics 18 center here, and we're connected north, south, east, 19 and west, we become a more attractive destination 20 for that manufacturing. 21 And then, of course, the President, in 2010, 22 announced the National Export Initiative; and the 23 goal, of course, to double exports within 24 five years. 25 So, we've got an effort here to double 1 exports in five years. This all plays in to our 2 international gateway, our logistics center. 3 So when you talk about 219, we're connecting, 4 much more efficiently, Western New York with points 5 south. And this enhances our position to a much 6 greater extent. 7 Now, Meg had mentioned that studies indicate, 8 that we're looking at 7,000 jobs from this project. 9 Western New York has about 570,000 workers. 10 About 520,000 are employed right now. 11 So, our unemployment rate is about the same 12 as the national average, maybe slightly less. I 13 haven't looked at the most recent statistics. 14 But when you combine all of these factors, 15 and we're talking about pitching foreign companies 16 to invest here, one location/two markets, it's a 17 very attractive value proposition. 18 219 attracts investment, on both sides, but 19 that's just one piece of a much larger picture, but 20 a very, very important piece to make this all a 21 reality. 22 So the 7,000 jobs, really, is a very small 23 conservative factor. 24 I would estimate much larger. 25 Now, how do you apply metrics? How do you 1 come up with numbers? 2 It's sort of like pulling a rabbit out of a 3 hat. You could ask three economists and get four or 4 five different answers. 5 But the bottom line is: We're talking about 6 providing an attractive environment to attract U.S., 7 Canadian, and third-country investment. 8 And this really takes advantages of our 9 competitive situation that we've had, again, 10 since -- since the 1800s. 11 One more point here; and that is, that the 12 U.S. and Canada no longer really produce goods for 13 each other. We've teamed up, years ago, to produce 14 goods for the world. 15 So, we have a nature of integrated 16 manufacturing like no other two countries. 17 So, we work together. We have intracompany 18 transferees crossing the border. 19 We've got products in the auto industry, for 20 example, that may cross the border three times. 21 You may begin the production here, it may go 22 to Canada for some sort of processing, it may come 23 back here for something else, and then shipped off 24 to an Asian customer. 25 So we don't really produce goods for each 1 other. We combine our qualities and our strengths, 2 and produce goods for the world. This makes us much 3 more competitive, as a region, against China, Asia, 4 the European Union. 5 So, we're really talking about enhancing 6 North American competitiveness when we talk about 7 lengthening 219. 8 So, Western New York becomes the center of 9 the universe when we're talking about enhancing 10 North American competitiveness. 11 There's a number of other factors, but I've 12 probably used up my five minutes. 13 SENATOR YOUNG: Thank you very much. 14 And, you touched on the fact that Meg's 15 projections for 7,000 jobs may be a bit on the 16 conservative side. 17 If it -- what's your opinion on that? How 18 many -- do you think that's just a starting point? 19 JOHN L. MANZELLA: I do. I do. 20 And I think it's very difficult. 21 You can come up with methodologies and 22 models, and, it's sort of like pulling a rabbit out 23 of a hat. You've got so many variables that you 24 really can't account for. 25 We can come out and make a statement, and 1 sound great. And then, in five years, look a little 2 foolish. 3 I can't really say. 4 But I do know that, international investment 5 flows, they become hyper-competitive. Companies no 6 longer invest in a location because, they like the 7 weather, or the people are nice, or they've got a 8 great sports team. They invest for a very strategic 9 competitive advantage. 10 And we have that very strategic competitive 11 advantage in a logistics center. 12 And we've always had this advantage: We've 13 got the assets, we've got the infrastructure, and we 14 have the efficiencies. 15 The key is, to tell the rest of the world 16 about this, and begin that cycle of development. 17 SENATOR YOUNG: Great. 18 Comments? Questions? 19 ASSEMBLYMAN SCHIMMINGER: Yeah, I've got one. 20 You've always got your eye on the future, and 21 you mentioned the new expanded Panama Canal, and you 22 mentioned Eastern Seaboard ports, which will benefit 23 from the travel of the super-large container ships 24 directly to those Eastern Seaboard ports. You 25 mentioned Miami, you mentioned New York. 1 Up in Canada, up in Nova Scotia, there's a 2 port called "Halifax." 3 JOHN L. MANZELLA: Right. 4 ASSEMBLYMAN SCHIMMINGER: Will there be an 5 increase there? And would that increase into 6 Halifax, also, in turn, come down and benefit our 7 center? 8 JOHN L. MANZELLA: Halifax has had some 9 issues, from what I understand, in the past. 10 They actually are the closest point between 11 Europe and North America. So, if you're shipping 12 goods from Europe, it makes a great deal of sense to 13 ship right to Halifax. 14 ASSEMBLYMAN SCHIMMINGER: Uh-huh. 15 JOHN L. MANZELLA: So my guess is, that the 16 very -- the majority of business going into Halifax 17 is probably European trade. 18 So, I really can't comment. I wouldn't know 19 if they would benefit. 20 I do know that New York/New Jersey is one of 21 the prime beneficiaries of the expansion of the 22 Panama Canal. 23 SENATOR YOUNG: Thank you. 24 Thank you very much. 25 JOHN L. MANZELLA: Thank you. 1 SENATOR GRISANTI: I myself am going to have 2 to take leave. I've got to go to a matter in 3 Niagara Falls; but, I look forward to receiving the 4 materials from the other speakers that have yet to 5 speak. 6 And I look forward to helping you, and with 7 the help of our colleagues, moving forward, to get 8 this expansion completed. 9 I just wanted to say, thank you, though, for 10 coming here this morning. 11 Appreciate it. 12 SENATOR YOUNG: And I want to thank 13 Senator Grisanti, and his office, because they took 14 a leading role, leadership role, in helping put this 15 together today. 16 SENATOR GRISANTI: Thanks. 17 SENATOR YOUNG: So, thank you, Senator. 18 SENATOR GRISANTI: Thank you. 19 SENATOR YOUNG: Our next speaker is 20 Dennis Eshbaugh, president, and general manager, of 21 Holiday Valley Mountain Resort & Conference Center. 22 DENNIS ESHBAUGH: I've been asked to narrow 23 my comments relative to tourism, today; although, I 24 do want to -- to make note of the point, that, in my 25 involvement with Route 219 association, I tend to 1 look at Route 219 far greater than just its impact 2 in tourism, albeit that Holiday Valley, of course, 3 is in the tourism sector, and our primary work. 4 The first thing that I would like to do is, 5 if we could maybe bring the lights down? 6 And I hate to do this to you, and put you in 7 the dark, but -- but I think it's important to focus 8 on what we have. 9 (Slide being shown.) 10 As Senator Young talked in her opening 11 remarks, about having some momentum; and I think 12 this photo is indicative of that, from last 13 November. 14 And I think the photo credit should probably 15 go to Rick Miller, who I saw earlier in this room. 16 But that was the opening of Section 5. 17 You'll see, actually, Senator Young in the 18 center, and Senator Gallivan, and 19 Assemblyman Giglio, with us, among many others. 20 But it was a great opportunity to open that 21 4.2-mile section, to recognize some significant 22 accomplishments that took place, and it had to do, 23 of course, with the first step of moving towards 24 I-86. 25 (New slide being shown.) 1 It was -- it was a time, where, I think, the 2 gentleman here from the New York State Department of 3 Transportation, where they -- they engineered a 4 marvelous twin span over a sure valley. They also 5 dealt with some significant engineering challenges 6 that probably made Section 5 one of the most 7 difficult, and, hopefully, the hardest part behind 8 us. 9 But, nonetheless, we can see we still have a 10 long ways to go, in the dotted lines that are down 11 here, between, just south of Springville, and 12 reaching 86, and, ultimately, the Pennsylvania Line. 13 (New slide being shown.) 14 When we talk about tourism, and I will try to 15 concentrate on that, we know that there are 16 significant impacts. We know that, in terms of the 17 Salamanca, or Seneca, Casino, that has had a huge 18 economic impact in the Southern Tier. 19 We know that Holiday Valley, and 20 Ellicottville, New York, attract about a million and 21 a half visitors. 22 And while I'm proud to say that the core and 23 the engine of that train is skiing, and almost half 24 of those are skiers, I'm more proud to acknowledge 25 that over half are not. 1 And I think that's a huge part of our 2 success, in that we have moved beyond, of course, 3 just a rather narrow winter-only business, but 4 expanded the role of tourism in our community of 5 Ellicottville, and all the things that go around it, 6 beyond just skiing. 7 We also have some other huge sources of 8 recreational access and importance with the 9 state park and the significant number of visitors. 10 And probably something that maybe we lose 11 sight of, as New York residents, our access to the 12 Pennsylvania wilds. 13 I think the important part of tie-in to 14 Pennsylvania is that it truly works both ways, and 15 it is a north-south opportunity; that we have an 16 equal opportunity for our people in New York State 17 moving, of course, into PA, visiting some of those 18 wonderful regions and wilds, as well as bringing 19 their people to Western New York. 20 (New slide being shown.) 21 Economically, there is some things that are 22 important. 23 We know from the Convention Business Bureau 24 here, that they say, an average expenditure per 25 sporting-event day is $120. 1 We know from the studies in New York State 2 skiing, that an overnight visitor generates almost 3 $250. 4 Probably more important is the overall 5 impact. And the preliminary Tourism Economics 6 Report, which is soon to be completed for 2010, 7 shows, Western New York, the tourism value, being at 8 $2,418,188,000. 9 A huge number; a significant number. 10 Probably equally important, although, I am 11 from Cattaraugus County, and truly, the 12 Southern Tier, that over half of that, 57 percent of 13 that, is actually generated here in Erie County. 14 And we certainly recognize the importance relative 15 to tourism, and the ability, again, to move people 16 north and south. 17 (New slide being shown.) 18 Now, again, I'll go back to our myopic view, 19 and what we're best at Holiday Valley, which is 20 skiing. 21 A picture, of course, that's close to my 22 heart, if I've got the right photo up, and we did. 23 Skiing: To us, of course, snow, lake-effect 24 snow, is great stuff. When we have 240 inches of 25 snow in the course of a winter, it provides for 1 great skiing. It also provides for challenging 2 driving. 3 (New slide being shown.) 4 We measure, ultimately, not so much by 5 mileage, but time on the road. Safety, clearly, is 6 critical. 7 I want to thank Ron Hayes and 8 Frank Belletier (ph.) from the DOT for being here 9 with us today. 10 And, also, I would be remiss not to 11 acknowledge Pete Nixon, who we worked with, and, 12 although, retired a year or two ago, still continues 13 to be a supporter of this project. And it's great 14 to have him here with us today. 15 Clearly, what the DOT has done, the 16 challenges that they have overcome relative to 17 engineering, the creation of a marvelous twin span 18 bridge, that they did such a great job in safety and 19 sight lines, you don't even know you cross it. 20 Although, that's somewhat disappointing to me 21 because it's a truly marvelous structure. From a 22 safety and engineering standpoint, it makes perfect 23 sense. 24 (New slide shown.) 25 And then, finally, I will just close by 1 saying, that I think it's important for us to 2 recognize what we have, to create a future brighter 3 than maybe what we enjoy today, for the future of 4 our children, for our community. 5 And, ultimately, that I hope that we can all 6 work together, to fund the SEIS, and the future of 7 219. 8 Thank you. 9 SENATOR YOUNG: Thank you, Dennis. 10 And I want to personally thank you, because 11 you have been a driving force behind 219 for many, 12 many years. And it was a real pleasure to stand 13 with you on the new bridge last November and be able 14 to cut that ribbon. 15 So, thank you for all that you do. 16 DENNIS A. ESHBAUGH: Thank you. 17 Our next speaker is Art Hile, finance 18 director, Americas and Asia-Pacific, from 19 Dresser-Rand Group. 20 Welcome, Mr. Hile. 21 ART HILE: Good morning. 22 SENATOR YOUNG: Thank you for coming. 23 ART HILE: Thank you. 24 Thank you for the opportunity to talk to you 25 today a little bit about what the potential 1 opportunities are for 219 to business. And 2 particularly to industry; and Dresser-Rand in 3 particular. 4 I do have a short presentation I want to walk 5 through. 6 Thank you. 7 (Slide being shown.) 8 First, I want to give you a little bit of 9 background about Dresser-Rand, for any of you who 10 are not familiar. 11 Dresser-Rand is one of the largest global 12 suppliers of specialized and customized rotating 13 equipment in the globe. We serve a lot of the oil, 14 the gas, petrochemical, and the process industries. 15 Worldwide client base stretches to 16 140 countries, and that's expanding with the recent 17 acquisition of a company in Spain. 18 We operate 12 manufacturing facilities in 19 7 countries, and 39 service centers in 22 countries, 20 all with numerous sales offices across the globe. 21 Three of our largest manufacturing 22 facilities, probably about 50 percent of the 23 manufacturing capacity today, are in the 24 Southern Tier of New York and Olean and Wellsville 25 and in the Painted Post. We have over 1 2,300 employees in those locations. 2 (New slide being shown.) 3 And in terms of Route 219, and what that 4 means for industry, particularly in the Olean and 5 Western New York area, there's three areas that I 6 really wanted to point out. 7 First one is, is, and several others have 8 talked about, logistics, but, getting product or 9 materials into the facility. 10 Dresser-Rand manufactures very large items, 11 and there's a lot of materials and supplies that 12 have to come in today. And getting that there in 13 the most cost-effective manner, understanding our 14 competition is across the globe, and remain 15 competitive, we need that cost-effective 16 transportation and logistics. 17 Beyond just the cost, though, there's also a 18 question of timing. 19 There's a cycle time involved with our 20 product. Our product is customized. It's 21 specifically engineered, and the cycle time is very 22 important. 23 So, transit times, getting things around, is 24 also extremely important. 25 Today, we're very tied in. If Route 86 does 1 not operate, we would be in a lot of trouble in 2 terms of getting materials in and out. 3 So, reducing some transit times, which 219 4 would do for us, would increase our competitiveness, 5 as well as the other local industry, in both 6 directions. 7 It also opens new opportunities for 8 Western New York companies. 9 Today, if I have a large item that requires 10 an oversized load, and I need to move that to a 11 supplier, if I wanted to send that to Buffalo -- to 12 Buffalo for -- to a supplier, today it would have to 13 go to Erie and turn the corner at 90, and then come 14 all the way back. There is no way to get it quickly 15 there. 16 So, it does -- it will open other 17 opportunities in both directions, for suppliers to 18 work with businesses in Olean, to Buffalo, to 19 Bradford, all the way along. 20 (New slide being shown.) 21 The other area is, also, going out. 22 We talked about inbound freight. 23 Outbound freight, our -- this is, I think, a 24 20-axle trailer, going out. 25 We ship out 12 oversized shipments every 1 month. That's 3 a week, and about 150 per year. 2 Today, those all have to go out over 3 Route 86. 4 If we're going to Canada, it doesn't matter. 5 Then, once again, you're going to Erie and turning 6 the corner; or going down to 390 and coming up, uhm, 7 it's -- and, which makes it a real challenge in 8 terms of moving freight in and out. 9 And should, from a risk-mitigation standpoint 10 as well, if route -- if something happens and 11 Route 86 is closed, or something like that, our 12 freight doesn't go out. 13 It's going to definitely decrease transit 14 times, avoiding the two-lanes road. 15 Like I says, our large equipment can't even 16 go over the -- can't even go over any other roads, 17 other than Route 86. But, getting stuff in quicker, 18 and getting stuff out quicker to our customers, we 19 do do, about 50 percent of the businesses is in 20 parts. And it's critical, when a machine is down, 21 to be able to get that back out to our customers. 22 And those go across the globe from 23 Western New York. 24 It's, also, as we talked about, an 25 alternative to the limited highway system we have 1 today. 2 (New slide being shown.) 3 And then, in another area, I'm -- I've heard 4 a little bit touched on -- upon today, is that, 5 we -- of those 2,300 employees, 700 of ours are 6 professionals. 7 We do research and development in Olean, 8 New York. 9 We have -- our product, because it is so 10 engineered, we have lots of engineers. 11 Our sales group is located, as well, in 12 Olean, and across the Southern Tier. 13 So, we have a lot of professionals in that 14 area; and part of it's recruiting. 15 You know, we talk about 219, and we're 16 talking about logistics and moving things; and, 17 that's great. But, today, I can't -- I don't have 18 access to those -- those individuals who want to 19 live closer to Buffalo, but would be willing -- but 20 are the right skill set, to come and work for a 21 Dresser-Rand in Olean; because, today it takes too 22 long for them to transit down to the Olean area for 23 a job. 24 So, as a result, a lot of times, those jobs 25 are going -- we have to go out, and we have to spend 1 more money, higher cost to Dresser-Rand, to recruit 2 outside of the state of New York, outside of the 3 general area. 4 So, I'm -- we're relocating people from 5 across the U.S. 6 And, the other thing is, as an international 7 company, we have customers coming in from across the 8 globe. We have other employees from other locations 9 coming in for training. And they don't -- today, 10 they don't have that easy access to airports, and 11 including, even Buffalo. You can get to Buffalo, 12 but it is not the best route, having driven that 13 this morning myself, from Bradford today, to here. 14 Also, the employees that we do have, you 15 know, when you're trying to recruit someone to the 16 Olean area, quick access to Buffalo, to the cultural 17 amenities at Buffalo, and some of these other areas, 18 would be served by Route 219. 19 (New slide being shown.) 20 And, last, expanding global business and 21 trade. 22 We are a global company, and it will become 23 more so. 24 We work across the globe, whether it's 25 South America, Asia-Pacific, Europe, and most 1 recently, in Russia as well. 2 And as -- our equipment runs for 50 years, so 3 that's a lot of parts that have to move over the 4 years, and we have to get those out. 5 And getting access to; I'm glad to hear some 6 of the logistics plans today that are with Buffalo, 7 because that -- all that serves better what we're 8 trying to do in terms of getting things out. 9 So, reducing those costs helps us to be 10 competitive with the rest of the globe. 11 Large cities and access to the airports -- 12 Buffalo, Toronto, Pittsburgh, Cleveland -- those 13 become a lot more accessible with Route 219's 14 completion. 15 Today, people, they drive; they'll drive to 16 Buffalo, they'll drive to Elmira, they'll drive to 17 Cleveland, they'll drive Pittsburgh, but, it's not 18 the quick access. And it certainly isn't the -- 19 when you bring a customer down, it takes them 20 two extra days to navigate down to Olean. 21 SENATOR YOUNG: Okay, any questions? 22 I want to thank you, Mr. Hile. I know it's 23 not an easy trip. I made it myself. 24 And, so, we really appreciate you coming 25 today; and, also, for Dresser-Rand's investment in 1 the Olean area. 2 As you know, it's part of the life blood of 3 that community. So, we really want to thank you for 4 everything that you do. 5 ART HILE: Thank you. 6 SENATOR YOUNG: Our next speaker is 7 Mr. Richard Forrestel, Sr. He's from 8 Coldspring Construction Company, a member of the 9 FAIR Committee. 10 And I want to welcome him, and especially 11 remark on that magnificent engineering and 12 construction feat of the twin spans. 13 RICHARD FORRESTEL, SR.: Thank you. 14 I guess I'm supposed to be in the hot seat 15 here. 16 Good morning, everybody. 17 My name is, as Cathy said -- 18 Pardon? 19 SENATOR YOUNG: Good morning. 20 RICHARD FORRESTEL, SR.: Good morning. 21 My name is Richard Forrestel, and I have been 22 involved in this for a very long time. And I am 23 pinch-hitting for son Steve, who is on a combination 24 business-and-pleasure trip in Asheville, 25 North Carolina. And I found out last night, that -- 1 that I would have this opportunity to speak to you. 2 And, I'm very happy to do so. 3 I also -- I ought to comment on the fact that 4 I look like I've been through a wreck, and I really 5 have. It's six -- it was 51 years ago, and with 6 complications. And I'm recently a product of 7 Roswell and ECMC, but, I'm just healing up, so I'm 8 good. 9 I apologize in a way; this is self-serving. 10 Steve said to me, when he talked to me last 11 night, he said, you know: This is self-serving. 12 And I thought, well, sure it's self-serving. 13 It certainly is. We've been involved in the 14 business, and we've done two sections of 219. But, 15 it's self-serving to every single person in this 16 room; and to all of the people that are in this 17 room, in this whole area. 18 This is a self-serving thing that -- function 19 that we are doing, to have 219 built. 20 And it's -- we built this section, first, in 21 '80, and '81 and '2, across the top of the hill, 22 north of Genesee Road. And then, of course, more 23 recently, the infamous section at Springville, with 24 all of the resultant complications that were there. 25 But, as I sat at the ribbon-cutting, it's a 1 tribute to the Department of Transportation that 2 that job was done, done correctly, and it's 3 certainly not done the way it was designed, because 4 they changed on the fly, many, many times. 5 And it was the most difficult project that we 6 ever did, but the proof is in the pudding. 7 And, the result, to me is, although it was 8 expensive for the taxpayers, it's, by far, the most 9 difficult piece of the road, and in the whole of 10 New York's section of 219. 11 And it's a wonderful thing to have that out 12 of the way, because, to have that in the future, to 13 have, would have been a disaster. 14 And, so, whoever made the decision, well, 15 let's tackle -- maybe they just did it 16 geographically, going south, but, whatever -- it was 17 a brilliant move to tackle that job, and get it done 18 with all of the resultant difficulties, because, it 19 is done, and it is done right, and it will be there 20 for a very long time. 21 I would be happy to answer anybody's 22 questions about 219, and about either of the 23 portions that -- that we did. 24 And, I can't stress the importance of 219, as 25 the other presenters have done, because, well, for 1 one thing, I'm a skier; and I've been skiing, now, 2 for 70 years. And I've used 219, going back and 3 forth. 4 And it, just, the income that's generated, as 5 was mentioned in Ellicottville, where there were a 6 thousand people there last weekend, or the weekend 7 before. And, it's a wonderful income producer for 8 Western New York. 9 And it's a really, really bright spot for -- 10 in the development here, and in Western New York. 11 So, anyways, I said I'd be happy to answer 12 anybody's questions. 13 SENATOR YOUNG: Mr. Forrestel, how many 14 people do you employ at your company? 15 RICHARD FORRESTEL, SR.: About 150. 16 SENATOR YOUNG: About 115? (sic) 17 So, when you talk about a self-serving, it 18 benefits your company, but, your company provides 19 jobs, and sustains families, and -- who go out and 20 spend that money in the community and support other 21 businesses. 22 Correct? 23 RICHARD FORRESTEL, SR.: That's -- 24 SENATOR YOUNG: And pay a lot of taxes. 25 RICHARD FORRESTEL, SR.: -- a lot of jobs. 1 And they are good paying jobs too. 2 And, of course, it's all great work, 3 Davis-Bacon work, but's it's -- so that they are 4 good paying jobs. 5 And we've been in business, we just 6 celebrated our 100th anniversary a few months ago. 7 And, we've -- I thought, sometime, I ought to 8 add up what the economic impact has been, if all the 9 180, or whatever it is, jobs that we have done in 10 100 years. And, it would be a huge number. 11 SENATOR YOUNG: Uh-huh. 12 RICHARD FORRESTEL, SR.: I do know that; that 13 we funded, to calculate it. But... 14 SENATOR YOUNG: Well, thank you. 15 Thanks, Mr. Forrestel. 16 And, again, congratulations. It was a very 17 difficult endeavor to finish that section of 219, 18 but, you did it. 19 And we really appreciate the fact that you 20 could come today. 21 RICHARD FORRESTEL, SR.: Well, thank you. 22 SENATOR YOUNG: Tell Steve we said "Hi." 23 RICHARD FORRESTEL, SR.: And, let's hope that 24 Section 6 comes. 25 SENATOR YOUNG: I'm very optimistic. 1 RICHARD FORRESTEL, SR.: Thank you. 2 SENATOR YOUNG: Thank you. 3 Our next speaker is Tom Buttafarro, and he's 4 director of operations for the Office of the 5 President at St. Bonaventure University. 6 So, he's reading a letter on behalf of 7 President Sister Margaret Carney from 8 St. Bonaventure. 9 THOMAS BUTTAFARRO, JR.: Senator Young, thank 10 you for having me. 11 Sister Margaret had wanted to be here. This 12 is a -- this has been a very important subject for 13 her, but, unfortunately, her schedule didn't allow 14 it. 15 So, she drafted some brief remarks and wanted 16 me to represent them. 17 "Dear Legislators, and special guests: 18 "Route 219 is the lifeline between the 19 Southern Tier and Buffalo. For too many years, this 20 project has gone uncompleted, and it is time to take 21 action and make Route 219 a four-lane highway, from 22 Interstate 90 to Interstate 86. 23 "It is vital to the economics of, not only 24 St. Bonaventure University and the Southern Tier, 25 but to all of Western New York. 1 "I have broken down my comments into 2 three important areas as they relate to 3 St. Bonaventure University and the local 4 community. 5 "SAFETY: 6 "In January, 2011, a freshman, excited to 7 start a new semester at St. Bonaventure University, 8 traveled with his family on Route 219. This young 9 man's mind was filled with the idea of rejoining his 10 new friends, and continuing his education at the 11 school he loved. However, this excitement turned 12 into a nightmare in a matter of seconds. 13 "The weather was bad that day, with frequent 14 whiteouts, resulting in very poor driving 15 conditions. 16 "At 1:30 p.m., a northbound vehicle lost 17 control, slid on ice, while attempting to pass 18 another vehicle, and collided head-on with the 19 freshman's southbound vehicle. 20 "The freshman and his mother came out of the 21 accident with only minor injuries, but his father 22 died. 23 "Furthermore, according to the 24 Cattaraugus County Sheriff's Department, there have 25 been over 375 accidents on Route 219 since 2000. 1 Many of these accidents, like the one that took this 2 father's life, could have been avoided if Route 219 3 was a divided four-lane highway. 4 "ACCESS: 5 "Tens of thousands of vehicles transport 6 people between St. Bonaventure and Buffalo on 7 Route 219 each year. 8 Students, families, faculty, staff, vendors, 9 and others, use this main thoroughfare regularly for 10 multiple services, including access to the 11 Buffalo Niagara Airport. 12 "Also, as a Division I NCAA institution, 13 there are multiple buses of athletes, and carloads 14 of fans, that travel back and forth almost daily. 15 "Route 219 connects the rural Southern Tier 16 with urban Buffalo, and, ultimately, the world. 17 "A four-lane highway would increase this 18 access, making it easier, faster, and more 19 importantly, safer. Vehicles would no longer have 20 to travel on what many consider back-country roads, 21 and would never be stuck behind slow-moving traffic 22 or oversized trucks. 23 "A divided highway would solve this problem, 24 and make passing safer for all vehicles, unlike the 25 sad example of the freshman and his family. 1 "ECONOMICS: 2 "Western New York has long been one of the 3 most economically depressed parts of the state due 4 to declining population, negative economic growth, 5 and a diminishing tax base. 6 "Completion of Route 219" -- 7 "Completion of Route 219 would generate 8 economic growth, by preserving and expanding 9 existing industries through efficient access to 10 markets and suppliers, and by making Southern Tier 11 communities more competitive in attracting new 12 industries. 13 "St. Bonaventure would also benefit 14 economically from a four-lane highway from the 15 Buffalo Niagara Airport. This faster and safer 16 connection would be a great asset in attracting new 17 students and retaining current ones. 18 "Increased economic growth for 19 St. Bonaventure University will directly impact the 20 economic stability of Cattaraugus County, the 21 Southern Tier, and all of Western New York. 22 "The completion of Route 219 will be the 23 New York State's portion of Continental 1, a 24 multi-state and bi-national effort that will provide 25 a trade corridor from Toronto to Miami. 1 "Finishing New York State's 20 miles of 2 highways could lead to potential economic 3 development for St. Bonaventure, the Southern Tier, 4 and all of Western New York. 5 "CONCLUSION: 6 "Bad weather and poor driving conditions are 7 part of living in Western New York; however, we can 8 make Route 219 safer for all vehicles. 9 "A four-lane highway would also increase the 10 economic possibilities for 11 St. Bonaventure University, and Western New York. 12 "Now is the time to take action, fight for 13 the funding, and make Route 219 a four-lane highway. 14 "Thank you." 15 SENATOR YOUNG: Thank you, Mr. Buttafarro. 16 THOMAS BUTTAFARRO, JR.: If you have any 17 questions, I can -- 18 SENATOR YOUNG: I think 19 Assemblyman Schimminger wants to remark about 20 Canisius College, or no? 21 ASSEMBLYMAN SCHIMMINGER: Well, you know, 22 Canisius has the light-rail rapid transit; 23 Niagara has the power plant; 24 And, darn it, St. Bonaventure needs 25 Route 219. 1 THOMAS BUTTAFARRO, JR.: Correct. 2 [Laughter.] 3 THOMAS BUTTAFARRO, JR.: Correct. 4 And this would definitely -- this would, 5 obviously, be an economic stimulus for all higher 6 education in all of Western New York, not just the 7 Southern Tier as well. 8 SENATOR YOUNG: Exactly. 9 Very good, Mr. Buttafarro; thank you so 10 much. 11 THOMAS BUTTAFARRO, JR.: Tom, I have a gift 12 for Sister. 13 SENATOR YOUNG: We have one more speaker, 14 Patrick Whalen. 15 And, the parking situation outside is 16 extremely challenging today. 17 So, Meg, did you want to take a quick break, 18 and -- or -- 19 MEG LAUERMAN: (inaudible.) 20 SENATOR YOUNG: Okay. 21 So, why don't we -- is there -- there's not 22 coffee out there anymore; right? 23 So, why don't we just take a really quick 24 breather, and, Mr. Whalen, I'm sure will be here 25 momentarily. 1 I'm hoping my own car is not towed away at 2 this point. But, we'll have some lunch, and then 3 we'll get back to our final speaker. 4 (A recess was taken.) 5 (The Roundtable resumed, as follows:) 6 SENATOR YOUNG: At this point, I would like 7 to reconvene for our final speaker. 8 And it's, Patrick J. Whalen, chief operating 9 officer from Buffalo Niagara Medical Center. 10 Thank you so much for coming. Thank you for 11 combating the parking situation. And -- 12 PATRICK J. WHALEN: Thanks for having me 13 here. 14 SENATOR YOUNG: -- glad to have you here. 15 PATRICK J. WHALEN: I'm sorry I was late, but 16 I did get a lunch. I was promised a lunch if I 17 came, and I got it. So -- 18 [Laughter.] 19 PATRICK J. WHALEN: Well, I guess I would 20 like to start, by saying: My -- most of my life, my 21 previous career, I was in the logistics business. 22 So, I know that you heard from Jim Manno, and 23 I know Jim well. And I'm sure that I would concur 24 with what he told you about the importance of 25 Route 219. 1 It's critical to the continuation, really, of 2 what we have in Western New York; and that is, that 3 this is a center for global trade and logistics. 4 And, obviously, a key component of that is a 5 north-south link. That's one of the -- there's -- 6 one of the things that's missing is a good 7 north-south highway for truck traffic. 8 So, I know there was some questions. I 9 heard, anyways, that there was some questions about 10 logistics, and I'd be happy to offer my insight into 11 what I know about logistics, after I talk about the 12 medical campus. 13 So, I've changed careers completely. 14 Don't ask me how a guy in logistics gets to 15 be a chief operating officer of a medical campus, 16 but I'm sure glad it happened to me. It's a fun 17 job. 18 The medical campus is a consortium of 19 nine life-science industries, or organizations; the 20 big three being, Kalida, Roswell, and the 21 University of Buffalo, but there's six smaller ones 22 that are very important, including the 23 Buffalo Medical Group. 24 And Buffalo Medical Group I mentioned, 25 because all -- probably, Buffalo Medical Group, 1 Roswell, and Kalida in particular, see patients. 2 And those patients, the number of patients they can 3 see, is a dwindling number, because our population 4 continues to decline in Western New York. But, 5 there's a lot of people in the Southern Tier in 6 particular, that are underserved, and could be 7 treated in Buffalo. A lot of them tend to go to 8 Pittsburgh. 9 So, the completion of 219, I think, is very 10 important. 11 As the medical campus develops -- in fact, I 12 just left a meeting; the reason I'm late, and I 13 apologize for that -- is, I was at a meeting, where 14 we talked about a machine. There are six of them in 15 the world, and we're considering, we're trying to 16 figure out, how to bring the seventh to Buffalo. 17 And the six places that they already exist are all 18 household names. But, this machine focuses 19 ultrasound and MRI, or combines ultrasound and MRI. 20 It's another example of things that are going 21 on in Buffalo, such as robotic surgery. There are 22 things being done in Buffalo today, in the medical 23 field, that can't be done other places. Or not too 24 many other places. 25 So, one notable thing would be, the 1 Global Vascular Institute that's about to open on 2 the medical campus. And that will house of the -- 3 the stroke functions that are, today, at 4 Gates Hospital. But, the combination of those 5 things on the medical campus allows for some 6 critical mass. 7 Kalida has a plan to treat stroke victims, 8 with a hub-and-spoke theory; so, that, if someone 9 had a stroke in the Southern Tier, they might go to 10 their local hospital. There wouldn't be time, 11 perhaps, to get them to Buffalo. 12 But, the world-class surgeons now are coming 13 to Buffalo, to practice medicine, because of the 14 cutting-edge technology here. 15 So, if someone's at a hospital in the 16 Southern Tier, and that's discovered, between the 17 two doctors -- the doctor in the Southern Tier and 18 the doctor at the Global Vascular Center in 19 Buffalo -- that that patient needs to get to 20 Buffalo, because he needs access to that world-class 21 surgeon that's in Buffalo, it's pretty important to 22 get them here efficiently. 23 And a completion of 219 would be very 24 important to that. 25 So, I think that, the Southern Tier, 1 obviously, in most parts of the country, world-class 2 people don't exist just everywhere. And they are 3 existing now in Buffalo, and we need to provide 4 access to those people; and, at the same time, the 5 world-class people that we're recruiting to Buffalo 6 need to see patients. 7 That's the whole idea behind the medical 8 campus, is to consolidate all of that stuff, so that 9 there's enough volume there so that the people can 10 get good at what they do. We don't need brain 11 surgeries taking place in eight different hospitals 12 in Buffalo. 13 If we have it happening in two hospitals, 14 then the surgeons that do it in those two hospitals 15 get better at it. 16 So, that's what we're trying to do at -- in 17 the medical campus. 18 And access to those patient on the 19 Southern Tier is critical. 20 SENATOR YOUNG: Uh-huh. 21 PATRICK J. WHALEN: That's really all I have, 22 in terms of remarks. 23 I'd be happy to answer any questions, on the 24 medical campus, or on my previous life in logistics. 25 1 SENATOR YOUNG: When you recruit healthcare 2 professionals, you know, is access to places, like 3 Toronto, for example, is that something in the 4 equation that they look at, those quality-of-life -- 5 PATRICK J. WHALEN: Oh, absolutely. 6 SENATOR YOUNG: -- issues? 7 PATRICK J. WHALEN: Quality of life is 8 especially important to doctors, and, uhm -- you 9 know, on the medical campus, there's about 10 9,000 people that work on the medical campus now. 11 And, everybody talks about the world-class surgeons. 12 And there are, certainly, plenty of them, or not -- 13 not plenty of them, but, there's a lot of them. 14 But, there's a lot of jobs on the medical 15 campus, for all types of people. 16 The world-class people, though, that are 17 being recruited by Roswell and the University of 18 Buffalo and by Kalida, are extremely concerned about 19 quality of life. That seems to be one of their 20 number one things. 21 Really, as an aside to this hearing, we've 22 talked with the people that do the recruiting at 23 Kalida and Roswell -- I'm sorry, University of 24 Buffalo, and Roswell in particular; and they have 25 mentioned the lack of traffic congestion in Buffalo 1 as major tool in recruiting people here. 2 These doctors don't want to spend a half an 3 hour in a traffic jam. And they do that in most of 4 the places that we compete with. 5 So, large medical centers happen to be, 6 usually, located in large cities that are -- have 7 congestion, and, the docs spend a lot of time in 8 traffic, and they hate. 9 So, quality of life is top of the list, 10 really. 11 SENATOR YOUNG: Uh-huh. 12 Thank you. 13 Any questions? 14 ASSEMBLYMAN SCHIMMINGER: There's 15 something -- you mentioned, you would take questions 16 about the medical corridor. 17 Cleveland Biolabs, I think, was in the paper 18 just in the last day or so -- 19 PATRICK J. WHALEN: Yes. 20 ASSEMBLYMAN SCHIMMINGER: -- announcing their 21 study; clinical study. 22 That's huge news, I take it; that they're on 23 to the next step now? 24 PATRICK J. WHALEN: Yes, it is. 25 Cleveland Biolabs is an interesting story. 1 It's another recruiting story. 2 So, Roswell Park had an interest in 3 recruiting a scientist -- his name is 4 Andrei Gudkov -- to Buffalo. 5 Andrei worked at the Cleveland Clinic. 6 He said: I'd like to come to Roswell. The 7 things you're working on are interesting to me. You 8 seem to have more of a focus on it than the 9 Cleveland Clinic does. However, I've started a 10 company, and I'm not going go to Buffalo and work at 11 Roswell, and leave my company behind in Cleveland. 12 So, Hauptman-Woodward had built their new 13 building. Their old building was empty. 14 The Buffalo Niagara Medical Campus, Inc., the 15 organization I work for, we bought the old 16 Hauptman-Woodward building; spent $2 1/2 million of 17 it, thanks to the State of New York, on that 18 building. 19 And, Andrei now works at Roswell, and his 20 company, Cleveland Biolabs, is located in Buffalo. 21 And, they moved about 30 people here. I 22 think they're up to about 100 now. 23 And you're right, Robin; they are now 24 entering, using humans to test their products. 25 So, they're -- it's an anti-radiation drug. 1 It shows great promise. 2 One of my fears, frankly, is that they get 3 through this process, and some large corporation 4 buys them, and they leave Buffalo. 5 But, in the meantime, it's -- they're a 6 strong part of our campus. 7 ASSEMBLYMAN SCHIMMINGER: Keeping a company 8 like that here is easier if they have 9 ready-transportation routes going in every which 10 direction -- 11 RICHARD FORRESTEL, SR.: Absolutely. 12 ASSEMBLYMAN SCHIMMINGER: -- especially, 13 south, 219. 14 RICHARD FORRESTEL, SR.: Absolutely. 15 And, uhm -- you know, there's a finite number 16 of people that are candidates for their tests. And 17 I'm imagining that some of those people are in 18 Bradford or Olean, or other places along 219. And 19 to get the easy access for those patients to get up 20 here, to go to Roswell and be treated with the new 21 technology that Cleveland Biolabs has developed, is 22 important. 23 So, again, we have a shrinking population in 24 Western New York. So, if we're going to -- if we're 25 going to feed the engine, we have the medical 1 campus. We need access to farther and farther 2 places. 3 That's a good point. 4 SENATOR YOUNG: Any other questions? 5 Thank you, Mr. Whalen, for joining us 6 today. 7 RICHARD FORRESTEL, SR.: Thank you. 8 SENATOR YOUNG: Really appreciate it. 9 And I also want to thank everyone who came. 10 This was an excellent turnout; a lot of 11 participation. 12 But, I think what we've heard today is a very 13 compelling case as to why we need to get the SEIS -- 14 the environmental impact study -- underway; that we 15 need to allocate the $6 million from New York State 16 to make sure that that happens. 17 So, again, I want to thank everyone for being 18 with us today. 19 20 (Whereupon, the Roundtable discussion concluded.) 21 22 ---oOo--- 23 24 25