October 21, 2014
Albany

Governor Cuomo Announces 17 More Businesses Choose to Expand or Locate in New York State Under Start-Up NY

TOP Governor Cuomo Announces 17 More Businesses...

Since Launch, 41 Businesses Expanded or Located in NYS Under START-UP NY, Supporting 1,750 New Jobs and $77 Million in Investment

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Governor Andrew M. Cuomo today announced that 17 businesses will expand or locate across New York State as a result of START-UP NY, representing the latest wave of companies participating in the new initiative that creates tax-free areas associated with colleges and universities across the state.

The 17 businesses are projected to invest more than $14 million and have committed to creating at least 464 new jobs in tax-free areas sponsored by the University at Albany, University at Buffalo, Cornell University, SUNY Downstate Medical Center, University of Rochester and Stony Brook University. This group of companies admitted to the program brings the total number of businesses participating in START-UP NY to 41, representing 1,750 new jobs and approximately $77 million in investment across the state.

"Building on the State's success in cutting taxes for New York businesses and families, we created START-UP NY to continue our efforts to reduce the cost of creating jobs and bringing new economic development to the Empire State," Governor Cuomo said. "Less than 11 months after the program first took effect, START-UP NY is off to a great start, attracting 41 new businesses, nearly 1,800 new jobs, and $77 million in investment to communities all across New York State. With the State's unemployment rate at its lowest mark since 2008, and more than 500,000 new jobs created over the past four years, it is clear that our strategy is working to revitalize and rebuild New York's economy."

The START-UP NY businesses expanding in or locating to the Empire State will create jobs in several key industries, including high-tech and advanced manufacturing, biotechnology research and development, medical equipment and healthcare services, and computer programming and systems design. The following businesses were recently approved for START-UP NY: ClassBook.com; PharmAdva, LLC; Xallent, LLC; EHR Console; Innovimmune Biotherapeutics Holding, LLC; CMP Scientific Corp.; Mitigate Injury Management, Inc.; You First Services, Inc.; HarkerBIO, LLC; ZeptoMetrix Corporation; Robb Surgical Devices, LLC; Guided Interventions, Inc.; Saniteq; GridBridge, Inc.; Killer Content, Inc.; Jasmine Universe, LLC; and Polynova Cardiovascular, Inc.

Empire State Development President, CEO & Commissioner Kenneth Adams said, “START-UP NY’s unbeatable business climate is driving the growth of New York’s innovation economy by drawing significant investments and hundreds of new jobs to the Empire State. Today’s announcement that 17 more businesses will join START-UP NY nearly doubles the ranks of the program and serves as evidence of the broad appeal the initiative carries for businesses, investors and entrepreneurs.”

SUNY Chancellor Nancy L. Zimpher said, “Nowhere in the country do new businesses and entrepreneurs stand to benefit more by partnering with higher education than in New York State, thanks to the widespread success of Governor Cuomo’s START-UP NY program. With interest and investment coming in from around the globe and new jobs being created in every region, START-UP NY has provided a spark for our economy and for SUNY, making New York State a more competitive place to do business and lifting the value of teaching, learning, and conducting research at our colleges and universities. SUNY campuses in every region are proud to be implementing this transformative initiative.”

Additional details about the latest businesses approved for START-UP NY follow:

University at Albany – 72 net new jobs

ClassBook.com is an existing cloud-based and multi-platform business providing an efficient process for making eBooks and print books available through an online ordering and management system. They are the first and only company to offer K-12 schools the ability to outsource and automate their eBook and print textbook ordering and fulfillment. ClassBook will locate in downtown Albany at 418 Broadway and create 72 net new jobs while investing $227,600.

Senator Neil Breslin said, "The recent inflow of jobs to the area is proof that Governor Cuomo is delivering on his efforts to foster economic development for upstate New York. Thanks to START-UP NY, upstate is transforming itself into a lucrative business environment that not many could have imagined years ago. I commend the governor for spearheading this program and for helping upstate regions get back on their feet.”

Assemblyman John McDonald said, "Today’s announcement marks an important milestone for New York State’s business climate. Governor Cuomo recognizes the importance of investing in upstate, especially in Albany, and has helped New York reclaim its reputation as a business-friendly environment. START-UP NY has delivered new technology and new jobs to the region and will continue to prove itself as a vital catalyst to boosting the economy all over New York State.”

Assemblywoman Pat Fahy said, "Our public universities have repeatedly demonstrated their ability to be tremendous economic engines for growth, especially right here in the Capital Region. START-UP NY truly has the potential to accelerate much-needed job creation in Upstate. I applaud Governor Cuomo for continuing to focus efforts in drawing businesses to New York and keeping them right here within the Empire State."

County Executive Daniel P. McCoy said, "Amid the entrepreneurial challenges that were prevalent in Upstate New York for so many decades, START-UP NY has proven itself as an aggressive initiative that continues to lure startup businesses. I am proud that Albany County has seen significant growth across a variety of growing industries, and thank the Governor for leading this transformation. I look forward to this continued development and applaud Governor Cuomo’s START-UP NY program for its game-changing capacity.”

Mayor Kathy Sheehan said “I commend the efforts of the Governor, the legislature, and the partners at SUNY for bringing together this multi-faceted initiative that will continue to bring jobs to the City and the region. I look forward to continue working with Governor Cuomo to grow Albany’s economy.”

University at Buffalo – 123 net new jobs

Mitigate Injury Management, Inc. is a new enterprise level management consulting business that will provide an array of services to Fortune 1000 companies to improve their safety records and lower their worker compensation costs. The company will locate to the Gateway Building to develop proprietary software to provide consultative services in a more cost-effective manner and create 81 net new jobs while investing $115,000.

You First Services, Inc. is an existing New York State business that seeks to commercialize technologies that have been created in the laboratory setting, but have not been supported by the resources necessary to get to the market. The company performs the necessary research and development to determine commercialization potential and bring new technologies to market, such as FDA approval for a product. You First Services will be expanding its administrative, business development, and R&D staff to allow for more simultaneous commercialization projects. The company will expand to the Baird Research Park and create seven net new jobs while investing $110,000.

HarkerBIO, LLC is a new biotechnology business that provides services to rapidly advance the development of pharmaceuticals. Based on technologies developed at the world-renowned Hauptman-Woodward Medical Research Institute, HarkerBIO determines the near atomic-resolution, three-dimensional structures of drug target and drug target – therapeutic agent complexes, to greatly accelerate the drug design process. Through industry partnerships, they are developing the next generation of therapeutics for a broad spectrum of diseases and health conditions. The company will locate to 700 Elicott Street, Buffalo, and create 10 net new jobs while investing $500,000.

ZeptoMetrix Corporation is an existing biotechnology company expanding to the Innovation Center Annex on the University at Buffalo campus. ZeptoMetrix specializes in products and services for the global infectious disease diagnostic market, offering developers support from initial test kit design to commercial manufacture and launch of the diagnostic products. The company will create 10 net new jobs and invest $575,000.

Robb Surgical Devices, LLC is a new surgical device company that has secured the rights to manufacture a novel, patented, laparoscopic sponge. The business will locate in the Center of Excellence in Bioinformatics Building and create 15 net new jobs while investing $1.87 million.

Senator Tim Kennedy said, "START-UP New York is creating the jobs that we need here in Western New York. These new jobs are just the beginning, with even more to come in the near future. START-UP is playing a big part in Buffalo's economic resurgence and our city is on the move again thanks to Governor Cuomo's leadership on the Buffalo Billion and START-UP New York. I was proud to vote in support of START-UP, and am thrilled to see it already paying dividends for Buffalo and Western New York."

Assemblywoman Crystal Peoples-Stokes said, “START –UP NY is continuing to bring new jobs and retain existing jobs right here in downtown Buffalo. Buffalo has world-class colleges and universities, combining that with a tax-free environment for businesses continues to spur growth in Buffalo and across Western New York. ZeptoMetrix, provides services to the Diagnostic and Pharmaceutical Research industries. Adding ten new jobs and retaining forty five jobs highlights their commitment to Buffalo and the growing corridor along Main Street. I applaud Governor Cuomo for making START-UP NY a reality and continuing his efforts to revive the economy for Western New York.”

Assemblyman Raymond Walter said, "Bringing in new, good paying jobs to our community is of the upmost importance and bringing in a tech company like You First Services will go a long way in achieving that goal. I look forward seeing what this new partnership between this Start-Up company and the University of Buffalo can create. It's an exciting time in our community and I hope more small businesses will choose to set up shop in our area."

Erie County Executive Mark Poloncarz said, “Thanks to Governor Cuomo and the START-UP NY Initiative, five companies have found the business climate and world-class workforce they need to expand their operations right here in Erie County. The synergies between higher education and business under START-UP NY continue to strengthen locally, as these businesses are growing their footprints by adding 123 new jobs in total while investing over $3 million. This news will add to Erie County’s growing reputation as a great place to live, work, and do business.”

City of Buffalo Mayor Byron Brown said, “This is an incredibly exciting time as Buffalo experiences a record amount of economic development activity resulting in new jobs and other investment. Today’s announcement is further proof that businesses and entrepreneurs around the world are taking notice of Buffalo and Governor Cuomo’s START-UP NY program. Buffalo is a great place to start, build and grow a business and I look forward to partnering with these new companies, bringing more prosperity to Buffalo while creating rewarding new career opportunities for city residents.”

Cornell University – 8 net new jobs

Xallent, LLC is a small high tech company based in Ithaca that will be commercializing a multiple tip scanning probe technology from Cornell University. The founder of Xallent, Dr. Kwame Amponsah, developed this technology as part of his PhD work at Cornell and the company is currently contracting for the Department of Defense in a key national security area, integrated circuit forensics. Xallent will create eight net new jobs and invest $2.06 million.

Senator Michael Nozzolio said, "It is great news that the START-UP NY program continues to encourage the development of new businesses, and in turn, grow jobs in the Finger Lakes region. Our colleges and universities are the appropriate engines for new high tech companies, such as Xallent, and I am pleased the Governor continues to encourage new companies to invest and provide career opportunities in the Finger Lakes."

Assemblywoman Barbara Lifton said, "I appreciate Governor Cuomo’s leadership in this critical area. The business community is finally taking notice that New York is the place to do business in the 21st Century economy, and I am so excited that the Finger Lakes can play such an important role.”

Mayor Svante Myrick said, “This is excellent news for Ithaca, and the new investment will be a welcome addition to the town’s robust entrepreneurial ecosystem that is truly the heartbeat of our community. START-UP NY’s innovative approach is boosting Ithaca’s economy in a completely different way than we’ve ever experienced, and I am looking forward to continuing to work with Governor Cuomo to keep this momentum going in the time to come.”

SUNY Downstate Medical Center – 39 net new jobs

EHR Console, Inc. is a developer of HIPAA compliant healthcare provider productivity suite of applications with principle customers such as hospitals, clinics, individual healthcare providers, patients and others who manage or use healthcare information. EHR is a new start-up company that will locate in the Downstate Biotechnology Incubator and create 10 net new jobs while investing $5,000.

Innovimmune Biotherapeutics Holding, LLC is an existing biotechnology research
company that specializes in the development of drugs for the treatment of autoimmune and immuno-inflammatory diseases. The company will locate at Downstate Biotechnology Center in Brooklyn and create seven net new jobs while investing $45,000.

CMP Scientific, Corp. is a new biotechnology research company developing and manufacturing analytical instruments and specialized software for use by analytical labs and institutions in biotechnology research. The company will locate in the Downstate Biotechnology Center in Brooklyn and create 22 net new jobs while investing $4.25 million.

Assemblyman Karim Camara said, “By utilizing SUNY Downstate under Governor Cuomo’s START-UP NY initiative, new jobs are being created in high-tech industries that will continue to grow, expand, and have significant impacts on the local economy. I thank the Governor for his vision in this program, and look forward to more companies choosing Brooklyn as a place to do business."

University of Rochester – 132 net new jobs

PharmAdva, LLC, an existing New York State business, is a University of Rochester Medical Center healthcare technology spin-off that is expanding operations to facilitate growth of manufacturing, distribution and support. The company is launching a medication adherence SAAS system designed to extend the independence of elderly patients on multiple medications, and reduce medical claims costs. PharmAdva will create 132 net new jobs and invest $1.789 million.

Assembly Majority Leader Joseph D. Morelle said: “Thanks to STARTUP-New York we are celebrating yet another step forward for Rochester’s economy. The PharmAdva and University of Rochester partnership will continue to build on the economic momentum we have worked so hard to create by further positioning our region as a global leader in healthcare technology. I applaud Governor Andrew Cuomo, the University of Rochester, and my colleagues on the Finger Lakes Regional Economic Development Council for coming together behind a unified vision for our community that paved the way for this exciting announcement.”

Senator Patrick Gallivan said, “I applaud PharAdva for investing and expanding operations locally. This is another example of how the medical technology industry continues to grow in Rochester and Western New York, creating new jobs and new opportunities for our residents. I support their efforts and wish them great success."

Assemblymember Harry Bronson said, "When START-UP New York was purposed, PharmAdva was just the kind of company I envisioned would expand into our community. PharmAdva will provide a tremendous opportunity for our families and for our state's economic future. This expansion will continue the exciting growth of high-skilled employment in our region."

Stony Brook University – 90 net new jobs

Guided Interventions, Inc. was founded in 2011 with the vision to create a medical device company developing enabling technologies designed to maximize efficacy, minimize risk and reduce the cost of interventional procedures. The company is currently pursuing two product developments: Fractional Flow Reserve (FFR) guide wire and Bronchial Thermoplasty with a worldwide customer base. The company is new to New York State, expanding to Long Island from Ohio, and will create five net new jobs while investing $300,000.

Saniteq is a new business focused on the research, design, and manufacture of embedded computer-based industrial and commercial products targeted at worldwide markets. The company’s initial product is a novel clamp-on transit time ultrasonic flow meter to address public safety, environmental and economic needs for thousands of miles of oil and gas pipelines around the world. Saniteq will locate at the Advanced Energy Research and Technology Center and create 28 net new jobs while investing $600,000.

GridBridge, Inc. is a developer and enabler of breakthrough power delivery systems. Its applications are extremely broad, covering the vehicle, military, aerospace, and electrical grid markets. START-UP NY will enable the company to enhance its energy router platform through linkages with regional utilities, national labs, and universities. GridBridge will create five net new jobs and invest $150,000.

Killer Content, Inc. is an existing business that is a merger of Killer Films, an independent film company in New York City, and Glass Elevator Media, a media production incubator that develops, finances, produces and monetizes content across multiple platforms. Killer Content will establish a media facility at Stony Brook University to operate the business, investing in building renovations for a digital suite to prepare content for delivery and to purchase new media software to optimize the content for multiple media platforms. The company will create 18 net new jobs and invest $1.48 million.

Jasmine Universe, LLC is a new high technology company developing a home energy management system, which will include an electronic console and related software, and will be sold through trade channels (utilities/energy markets), with a planned introduction into the consumer market after the trade channels are developed and successfully launched. The introduction of this product is closely aligned with the advancement of Smart Grid technology. Jasmine will create 17 net new jobs and invest $273,400.

Polynova Cardiovascular, Inc. is a start-up medical device manufacturer, initially developing prosthetic heart valves for the treatment of aortic stenosis using synthetic biomaterials. Polynova intends to produce FDA Class III devices using proprietary synthetic biomaterials. The company is commercializing technologies based in part on research performed at Stony Brook University, and the global markets for the products the company intends to produce aggregate to multi-billions of dollars. Polynova Cardiovascular will create 17 net new jobs and invest $314,000.

Senator John Flanagan said, “By helping businesses throughout our state grow and succeed, the START-UP New York program has been and continues to be essential to creating the jobs our residents need. By focusing that growth in areas that surround our college campuses, the program promotes job opportunities to our region’s young people and provides an incentive for them to remain in our state. I thank the businesses that have made the decision to invest in our communities and in our state’s economic future.”

Assemblyman Steve Englebright said, "Start-up New York's job-creating promise is beginning to take root in our Stony Brook University community. This is proof positive that our universities are critical to New York State's economic growth and are a launching pad for innovation that produces quality jobs."

Suffolk County Executive Steve Bellone said, “It is a tremendous pleasure to welcome new businesses to Suffolk County, bringing with them jobs and added opportunity for our residents. However, it is no surprise; we have some of the best resources in the nation to start and grow a business, including some of the brightest talent – and START-UP NY takes this to a new level by providing unprecedented access to infrastructure that businesses need to succeed in today’s global economy. I applaud Governor Cuomo for being a true entrepreneurial governor, encouraging investment and growth in New York in a way that works.”

Brookhaven Town Supervisor Ed Romaine said, “The announcement of this investment in these businesses is good news which will hopefully spur the economy and create jobs in our region. SUNY Stony Brook is a national research asset, and these funds will help companies here in Brookhaven to grow. I appreciate the work START-UP NY and the Governor's office is doing to improve Long Island’s economy.”

About START-UP NY

START-UP NY seeks to accelerate entrepreneurialism and job creation across the state on a large scale, with a particular focus on Upstate New York. The State University of New York (SUNY) campus system, City University of New York (CUNY), and private university and college communities serve as the framework of the START-UP NY program to attract high-tech and other start-ups, venture capital, new business and investments from across the globe. Under the program, businesses have the opportunity to operate tax-free for 10 years on eligible land and space. Businesses partner with the higher education institutions and are able to access industry experts and advanced research laboratories.

Under START-UP NY, interested colleges and universities draft campus plans that identify their goals for the program and the space that they are proposing to designate as tax-free, as well as the types of businesses and industries that they are seeking to attract through the initiative. Public colleges and universities, including SUNY, provide their plans to community stakeholders for a 30-day comment period before submitting the plans to ESD, which, in consultation with the SUNY Chancellor, reviews the plans for final approval and designation of tax-free areas. CUNY plans, after a 30-day comment period, also are reviewed and approved by ESD. Plans submitted by private schools are reviewed by ESD and presented to the START-UP NY Approval Board for final approval and tax-free designation.

Once a school is admitted to START-UP NY, interested businesses may begin to apply to the program through the sponsoring college or university. After a thorough and comprehensive review of an application by the sponsoring college or university and ESD, approved businesses that create net new jobs will operate 100 percent tax-free for 10 years, paying no state income tax, business or corporate state or local taxes, sales tax, property tax or franchise fees.

To date, 57 schools have been approved for START-UP NY, establishing more than 310 tax-free areas for new or expanding businesses to operate on or near campus. Each school’s approved START-UP NY plan is available at www.startup-ny.com.

START-UP NY includes strong provisions to protect against fraud. Businesses are required to submit certification to ESD, and falsifying certifications is a felony. The program also includes strict provisions to guard against abuses such as shifting jobs among related entities or “shirtchanging,” when a company simply reincorporates under a new name and claims its existing employees are now new jobs. In addition, START-UP NY includes measures to prevent self-dealing and conflicts of interest. In cases of fraud, the State is empowered to claw-back benefits granted to the business. Companies that do not meet the terms of the program – including meeting their job creation targets – may have their benefits reduced, suspended or terminated. ESD has the authority to review company data to ensure that jobs have been created and maintained, and to end participation by companies that have not created net new jobs. ESD is required to publish a comprehensive annual report to enable the public to evaluate the program’s impact.

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