SUMMARY BACKGROUND

Summary description of the current economic development situation of the Southern Tier West region of New York State (Chautauqua, Cattaraugus, and Allegany Counties), comprised of the northern-most counties in the federally designated Appalachia region. The region’s economic situation is consistent with this designation.

Educated and skilled people and high-growth companies are mobile and can locate virtually anywhere. Other things equal (e.g., economic opportunity, presence of family, access to cultural amenities, etc.), they often choose to locate in regions that value connected, safe, convenient and healthy places to live, work, and do business. Connectivity requires basic infrastructure (e.g., strategic transportation links and information technology connections), but it also requires networks among people, that is, “civic spaces” in both the physical environment sense and the non-physical environment sense. There is an opportunity in the region for additional development of both enhanced connective infrastructure and networks.

Many communities in the region have downtown centers that continue to be idyllic small town environments for living and working. However, many communities are experiencing threats to their downtown business districts, including urban sprawl and the migration of downtown retail and service business out of downtown business districts, the entry of “big box” and other non-locally-owned competitors into local marketplace, and online commerce. Consistent with smart growth principles, the region needs to concentrate economic and community development initiatives toward preserving and enhancing the vitality and centrality of these downtown centers.

There has been a trend toward increased levels of planning at the community and county level in recent years. This process is extremely important, as it creates a shared local consensus about direction and strategies and can provide a list of priority strategic initiatives for achieving the goals of the comprehensive plan.

The region’s crime rate is low relative to that of more urban areas. However, there are public safety concerns, due to higher levels of drug use and associated crime, and higher incidence of gang activity.

Median housing prices are significantly lower than State and national median housing prices. The region has a more stable housing market than the State and nation as a whole. However, some factors indicating some weakness in the region’s housing market include low relative median housing prices, a historically slower relative housing turnover rate, an aging housing stock (older than State and national housing stocks), and lower relative new housing construction rates. Also, many residents spend more than 35%+ of their income on housing costs. Sprawl growth is an issue. The region must embrace smart growth principles to limit sprawl.

The region has a significant number of recreational and cultural assets that contribute both to quality of life and economic development, but also has underutilized these assets.

The region has significant historical and cultural assets. Historic preservation and investment in these assets will encourage economic development (tourism).

Overall, the region enjoys a positive and attractive quality of life, with an attractive small-town rural lifestyle, engaging cultural and recreational resources, low-crime rates, a relatively clean environment, stable housing markets, and relatively high quality health care. However, as a consequence of the ongoing structural changes that the region is experiencing, certain cornerstone institutions (e.g., hospitals, schools, and other community institutions) face threats from decreases in population and standard of living.

Sprawl growth is an issue. The region must embrace smart growth principles to limit sprawl.

It is to our region’s advantage to identify sources of extra-regional supply chain leakages and attempt to promote fulfillment of supply chains from internal regional sources, to the extent possible. The greatest impact will result from working with regionally significant industry clusters.

New York State remains a relatively high-cost business operating environment. The most commonly heard complaints relate to taxes, workman’s compensation, and environmental regulations. At the local level, local laws or circumstances that are impediments to business operations should be attempted to be resolved.

There is an ongoing need for increased availability of private and public equity and debt capital to support entrepreneurship and business development in the region. The financial wherewithal of municipalities to repay new debt financing historically has constrained many municipalities from undertaking community and economic development projects.

Global competition and general macroeconomic conditions have negatively impacted the region’s economy in both the longer and shorter terms, resulting in job losses, business closures, and increased absentee business ownership. Non-local business ownership contributes to less corporate commitment to local business operations within the region.