• The Rochesterian in Your Inbox:

    Join 643 other subscribers

start-up nyStart-Up NY was pitched as a way for companies to locate on or near college campuses and grow their businesses. The companies don’t have to pay any state and local taxes for 10 years. Their workers don’t have to pay state income tax for 10 years.

The governor believes this will attract jobs. Though the program will cost the state $323 million through 2017 and cost localities untold millions, supporters say Start-Up will pay for itself through increased economic activity.

There are tremendous issues with fairness with this program. The first company to be announced in Rochester, Datto, does not appear to provide services not offered by other local companies, which have to pay full taxes. Datto is not even a start-up, having been founded in 2007. But despite Start-Up NY’s name, relocations and expansions of established firms are permissible.

We are getting some troubling evidence Start-Up does not have such a narrow focus on college campuses. The board overseeing the program approved the University of Rochester’s request for two StartUp locations. They are located at Eastman Business Park and Lennox Tech Center.


The Start-Up website says: 

Note that if a piece of property is not currently part of an academic institution’s campus, it may be possible under special circumstances for that property to become affiliated with a sponsoring academic institution…

I am considering a move to a location in New York that is not located near a college or university. Should I still consider this state and/or the START-UP NY program?

Yes. Participation in START-UP NY does not necessarily require that your business be on or next to a campus, but it must be located on property affiliated with a university.

There’s your loophole.

Here’s what’s going to happen: Start-Up locations “affiliated” with colleges will be dispersed around the area. Colleges will be the pass-through agencies to get them approved. You want to use our labs every now and then? Cool! Can you take on some of our students as interns? Cool! You’re good to go. Eventually, you’ll Start-Up locations in pockets across the county.



Stats of the Day:






Links of the Day:


– Texas A&M could sue a Buffalo Bills fan over trademark issues. The fan is a double amputee and cancer survivor.

– A judge ordered Lyft and Uber to shut down in Pittsburgh. Lyft is now operating in Rochester, but city officials have not yet taken action.

– I’m really glad I wasn’t in the same room as this guy! What a sexist jerk.

– A peregrine falcon’s first flight in downtown Rochester was scary!


Tweet of the Day:

12 Responses to Start-Up Smells

  1. Rachel-
    Uber and Lyft —- pro or con?

  2. Who’s on the board to make the decisions about which companies get money? Also the sentence “Datto, does not appear to provide services not offered by other local companies,” contains too many negatives for my simple brain.

  3. July 2, 2014 at 11:37 am Orielly responds:

    “The governor believes this will attract jobs. Though the program will cost the state $323 million through 2017 and cost localities untold millions, supporters say ”

    BUNK! It will not cost the “state” a dime, nor will localities pay millions. Taxpayers on the other hand will pay through the nose.

    Will any of the state or local govt. entities cut back spending etc. to have the money to support this in their budget? NO. IT will result in tax increases somewhere.

    Like we are seeing with the President, it is wrong when government picks the winners and losers as is being done here.

    OBTW did any report challenge the Governor about DATTO.. nope .. they just report the story never challenge the plan as the lie that it is. There are multiple “Datto” competitors in this area and many started here by local folks.

    Don’t reporters have the responsibility to NOT report a lie when its being told by a government leader? And when they are told one, shouldn’t they challenge the liar? Afraid the Governor won’t like them?

  4. July 2, 2014 at 12:19 pm theodore kumlander responds:

    Start- up NY is just the pipe dream of supply side economics that the Republicans just love peddle, because it serves the cause of the their corporate masters.

    I did not work for Ronald Reagan and it is not going to work for Brother Andrew Cuomo who to me is Democrat in name only. Now the welfare queens wear expensive suits and call them selves consultants and business professionals.

  5. July 2, 2014 at 12:20 pm theodore kumlander responds:

    Dom Deluica who conned Mayor Johnson on the fast ferry would love Start – up NY .

  6. July 2, 2014 at 12:33 pm Bob Lewis responds:

    Regarding the Bills Trademark article – Why does the guy’s medical history have any bearing on the case.

  7. This is a mess for the average tax payer. We are the poor schmoos who get no breaks and just pay, pay and pay some more.

    • You’re absolutely right Mary! Too many people believe the government should pay for all sorts of things and don’t realize that the government just gets the money from those of us who pay taxes.

  8. Don’t confuse trickle-down economics with the Cuomo economic voodoo.

    There was at least some semblance of consistency and even-handed tax cutting in Reagan’s plan — cut taxes for all businesses to presumably accelerate growth.

    Cuomo’s policy hand-picks winners and losers by heaping added tax burden upon existing businesses at the same time “new” businesses play for free even if they’re direct competitors.

  9. START-UP is a great program if you’re a new business wanting to move to NY. How many new businesses have actually moved from other states to NY? Doubt that many. It’s a great deal… for them. No state income taxes, no business taxes… the rest of us subsidize them. Where do I sign up?

  10. Pingback: Cynical…or Right? » The Rochesterian

Leave a Reply to John Moriello Cancel reply

Your email address will not be published. Required fields are marked *