Good afternoon. I want to thank Governor Cuomo for giving us the opportunity to be here today. It is an honor and a privilege to speak with all of you.
This afternoon, you will embark on a journey to opportunity. You will hear from public and private sector leaders in the financial, accounting and legal services sectors about how to build partnerships that will bring your companies business. You will hear how New York State and its partners are building capacity among minority and women owned business enterprises to broaden opportunity.
You will hear how Governor Cuomo’s goal of 30 percent MWBE contracting participation is about more than numbers on a spreadsheet. It is about building a New York where communities are inclusive; a New York where opportunity to succeed is available to all, regardless of where they come from, the color of their skin or their gender.
At DASNY, we know a great deal about building strong communities. We are the nation’s number one issuer of low-cost, tax-exempt bonds and one of its biggest builders. We are New York State’s developer. It is our job to create the foundation for communities across New York to prosper.
For that to happen, there must be access to best-in-class health care and education. Our communities must be sustainable and resilient. And they must embrace all of their members.
There is enormous value in this work. Any business seeking a new location for their headquarters or a place to open a subsidiary examines the surrounding community. They know that in order to attract the best employees, the surrounding community must be vibrant and healthy. Increasingly, they understand the enormous value in communities where neighbors have access to the world-class social infrastructure these health care and educational institutions provide.
Equal opportunity to advance breeds unity.
Helping to create these paths for advancement was a driving force in my decision to return to public service to lead DASNY after 16 years in the private sector as an investment manager. As a business person, I also understand that the best path for DASNY to open the doors to opportunity is to grow our business. The more business DASNY does, the greater our ability to provide all of you here today with work that will grow your companies.
I have made it my priority at DASNY to put our clients first. It is paramount that we are responsive to their needs and provide best-in-class service. This is no more so true than in the work we do fulfilling the capital needs of New York’s preeminent education and health institutions such as, Columbia University, New York University, Cornell University and the state’s largest health care provider, Northwell.
Last fiscal year, our work with these institutions helped drive us to a new bond issuance record set at $8.3 billion.
These low-cost bonds have enormous impact on New York State. Columbia University is using DASNY issued bonds to fund a significant portion of its Manhattanville Campus. The 17-acre redevelopment project is bringing new life to a Harlem neighborhood that for too long has been neglected. It will build Columbia’s capacity to innovate as a leader in scientific research and education.
In June, NYU financed almost $1 billion through DASNY, the largest private client deal in DASNY’s 72 year history. This significant investment by one of the world’s leading education institutions strengthens NYU’s commitment to New York.
A $200 million portion of the financing will be used to construct the NYU Langone Medical Center Science Building. It will expand NYU’s growing footprint in biomedical research.
NYU’s science building will combine with CUNY’s Advanced Science Research Center and Columbia’s Jerome L. Greene Science Center to build New York’s research and innovation capacity. All of them are being financed through DASNY. In CUNY’s case, we built the research center, too.
All of these projects strengthen these universities’ roles as economic engines that will help drive New York’s economy for decades to come. They help solidify their roles in an increasingly competitive global market.
By bringing their business to DASNY, they are also showing their commitment to working with an organization that broadens opportunity and builds capacity among MWBE firms. Let me give you an example.
Once DASNY sells bonds, we play an important role investing the proceeds on our clients’ behalf. A substantial portion of this work is done through telephone solicitation.
Last fiscal year, we conducted $6.2 billion in these transactions. A $2.1 billion portion of those trades was handled by MWBE firms. DASNY rotates the firms we work with every month. In order to become part of this rotation, you must get registered with DASNY’s MWBE and Small Business database. It is an important tool.
We use it to reach out to MWBE’s and connect them with business opportunities.
We have instituted changes to make DASNY more responsive to clients and draw more business so that we can provide more opportunities.
We overhauled our financing guidelines and policies to provide our clients with greater speed, certainty and flexibility. These changes remove barriers to reaching the municipal bond market through DASNY for highly-rated higher education and health care institutions. They give our highest rated clients greater control over investing their own bond proceeds.
We are also responding to changes in the way higher education and health care institutions are meeting their financing needs. Increasingly, both fields are turning to private entities for financing. Colleges are adding private-sector retail to residence halls. Hospitals are bringing private practices inside their walls and also adding retail. Issuing bonds for facilities that mix for-profit and not-for-profit can be complex.
DASNY has responded with a hybrid program through which we issue taxable bonds for for-profit aspects of a project and tax-exempt bonds for the not-for-profit. It means these institutions can still rely on DASNY’s expertise for their financing needs. It means they can continue to focus their attention on providing top-level service.
These initiatives are making DASNY more competitive. They are drawing more business to DASNY and they will mean more opportunities for each and every one of you here today. We are examining every element of our business to find new ways to advance this goal. As we advance, we have also renewed focus on MWBE contract participation.
We know that forging partnerships is not an easy task. That is why I created a Resource Acquisition Unit at DASNY that combines the focus of MWBE involvement from our Opportunity Programs Group with the partnership-development know-how of our Procurement Unit. They are here today and ready to help your businesses make the connections you need.
Members of the Resource Acquisition Unit can be found at the DASNY table in the exhibit hall. I encourage you to reach out to them. They are at the ready to guide you through contracting process and will connect you directly with opportunities.
And while this work helps us fulfill the higher promise of government to create a level playing field, it also delivers direct value to your businesses.
Diversity in partnerships and among employees fosters innovation and creativity. It broadens perspective and provides access to new markets.
As we embark on the journey for opportunity this afternoon, understand that this is a moment for all of us to join together to build better businesses. It is an opportunity for us to build stronger, more inclusive communities. It is an opportunity to help make New York thrive. Thank you.