Well it has happened. Per the headline in the Times Union this morning: Kaloyeros to be arraigned Friday morning in Albany. Mr. Kaloyeros, head of SUNY Poly here in Utica, and others are accused of bid-rigging on various high profile state-sponsored economic development projects across upstate New York -- projects that are the centerpiece of the governor's economic development efforts.
Local officials have been quick to point out neither of the two large projects in the Utica area, the AMS chip fab and Quad-C, have been implicated in the wrong-doing, and that progress on same is still expected.
Don't bet on it.
First, there has been no visible progress at Quad-C for months. As noted in this blog on July 28 (a) the six-member "consortium" that was expected to occupy the building seemed to have vanished, replaced by GE without explanation; and (b) work had stopped on the GE facility in Albany that was to make the chips designated for packaging at Quad-C. Although covered in Albany media, local media has been largely silent. Until officials "come clean" on what has happened with Quad-C, we can speculate that there was never a commitment from the "consortium's" members, and that the governor strong-armed GE to step into the breech, using the state's supervision of a very expensive GE clean-up project in the Hudson River as leverage. If that is indeed what happened, GE would be a reluctant player in Quad-C, and will pull out at the first opportunity.
Second, control over the AMS project is now being transferred from SUNY Poly to Empire State Development. While some local officials claim that ESD is where the project should have been all along, they are ignoring the fact that it was SUNY-Poly -- and probably Kaloyeros' expertise -- that got the project out of federal wetland limbo by obtaining the permit that allowed construction to go forward. It is unknown whether this savvy will be required again to keep construction on track, but if so, it was SUNY Poly and Kaloyeros that had it, not ESD.