When David Anderson moved from California to Buffalo a couple of years ago, local business leaders recall their first conversation with him about how to improve the region’s economy.
“He said to buy a ticket and get on a plane to California and say to people there, ‘We have water,’ ” recalled Dottie Gallagher-Cohen, president of the Buffalo Niagara Partnership, the area’s biggest business promotion group.


As disruptive droughts rage in the West and around the world, Anderson is someone who has lived through water shortages. Now as a resident of a Great Lakes state, he sees the economic development possibilities available to places such as Western New York, thanks to its abundant access to water.
The Buffalo area’s economic ties to water are, of course, long ones. Among the key celebrations of the 1901 Pan American Exposition was electricity generated by the region’s hydropower.


Yet many watercentric companies have shuttered, and there are some who believe the region is not doing enough to tap into its proximity to an abundant supply of water and bring back jobs and people.
Anderson spent 38 years in southern California, and at least 30 of those years were spent in some level of drought.
“The single biggest issue in southern California, all of that time I was there, was water,” said Anderson, now the president and chief executive officer of HealthNow New York, the Buffalo-based parent of BlueCross BlueShield of WNY and BlueShield of Northeastern New York.
When Anderson moved to Buffalo two years ago, he recalls the first couple of meetings with representatives from the Buffalo Niagara Partnership and the Buffalo Niagara Enterprise.
“Everybody was excited because there were four cranes in Buffalo," Anderson said. “From my office in south Los Angeles, I could probably count 34 cranes. So I started scratching my head. … I thought four cranes in Buffalo is a failure.”
The health care executive, whose business growth relies on a growing population, was immediately struck by one big difference between California and New York: water.
Lake Erie hits him in the face every day as the dominating view from his eighth-floor office on West Genesee Street.
“What are you doing about that? How are you marketing that?” Anderson recalled asking local economic development officials about Lake Erie. “You have an abundance of power and water here. You don’t have a more regulated (business) environment than California. And you’re happy with four cranes?”
The Buffalo News over the past several months interviewed dozens of government officials, water scientists, environmentalists, economic development advocates and key industry executives about whether the Great Lakes and its huge fresh water reservoir present communities on its shores with an opportunity to add jobs and people.
Based on those interviews, Western New York executives and officials appear hesitant or unsure about how to promote the region’s water supplies to people and companies in drought regions of the country or world.
There is still a bit of a learning curve, acknowledged Gallagher-Cohen, of the Buffalo business advocacy group.
“We sort of get it, but maybe we don’t understand the business pains of people who don’t have water,” she said.

No signs yet

At Buffalo Niagara Enterprise, another local business development group, officials have heard the talk about drought and economic development possibilities for the Great Lakes.
But Paul Pfeiffer, the group’s director of investor and public relations, said local officials have not picked up signs yet of companies wanting to leave drought-stricken areas for the Great Lakes.
“We consistently monitor and track the primary factors that drive location decisions for companies, and while our abundant freshwater access is a plus in the form of generation of low-cost hydropower and waterways that provide access for goods and products, existing droughts or water rationing have not produced an increase in potential attraction opportunities,” Pfeiffer said.
But he said that could change.
“We would certainly assess the potential and seek to mobilize our efforts around it, if it was deemed to be feasible or potentially beneficial to our local economy,” he said.
Still, there are those talking about Western New York initiating efforts to promote its water-based location.

A formal push

While water availability is pitched to companies eyeing expansions or relocations, it might be time for New York to launch a more formal marketing program, Lt. Gov. Kathy Hochul said. For instance, New York could reach out to water-dependent companies and people who moved from upstate Great Lakes communities to places such as Arizona and California.
“I’ve seen it firsthand. The grass is no longer greener elsewhere,” she said of dead lawns and companies worried about water supplies in places such as California. “It’s greener here.”
Rep. Brian Higgins, a Buffalo Democrat, sees the same opportunity. He has been a longtime promoter of cleaning up and restoring Buffalo’s water and the city’s waterfront areas.
“Buffalo really has an opportunity to sustain its economic momentum by positioning itself and marketing itself as a Great Lakes community that has an abundance of water that can be used for a variety of purposes,” he said.
But Higgins said nothing should be undertaken that upsets the renewal of the area’s waters – such as the Buffalo River, declared biologically dead nearly 50 years ago – that are now recreational meccas for kayakers and anglers.
Higgins pointed to an effort several years ago by Ohio business interests within the Great Lakes basin to sharply increase the amount of water taken out of Lake Erie. It failed, but it served as a wake-up call about water diversion despite a rigorous binational compact restricting water taken from the basin.
“Buffalo and Western New York should be aggressive pursuing new international and national positions to realize the full economic benefit of being situated where we are on the Great Lakes and an abundance of rivers,” he said.

Delicate balancing game

But attracting big water users, especially those who do not clean and recycle water back to the Great Lakes, has its own set of risks, he warned.
“It’s a two-edged sword,” Higgins cautioned. “It’s good to use the natural resource as a marketing tool, but in a responsible way.”
Other states are developing plans to marry Great Lakes economic development with water protection. Officials in some states point to the Michigan Office of the Great Lakes as one of the leading government voices on protecting and promoting the basin.
It released in July a 30-year strategy for the state’s major waterways, including the Great Lakes that surround Michigan. It envisions, for instance, a 40 percent reduction in phosphorus in the western Lake Erie basin.
Attitudes have changed in the basin states about the stewardship of water, said Jon Allan, director of the Michigan office.
Part of it is recognition by both government and industry that communities are still paying a price for decades of pollution dumped into the Great Lakes.
Part of it comes from new technologies that make it easier and more profitable for companies to conserve and protect the water supplies they use.
And part of it comes from many Great Lakes communities “turning their faces to the water,” which has led to new development and restoration projects. Milwaukee and Buffalo are among those communities.
Such projects have proven to be important drivers of community pride.
“Buffalo looks better if Buffalo is in the business of taking good care of its water,” said John Austin, who has studied Great Lakes economic issues and heads the Michigan Economic Center.
One way the Great Lakes states convinced Congress to approve the basin-protecting Great Lakes Compact, which then-President George W. Bush signed in 2008, was recognition by the eight Great Lakes states and two Canadian provinces that basin water resources needed to be more effectively managed.
“The Great Lakes states realized they needed to approach with clean hands that they would use the water of the Great Lakes efficiently,” said Edward Osann, senior policy analyst at the Natural Resources Defense Council.
Officials from Great Lakes states always have known of the water assets, Osann said, but were guided in the past by shipping, heavy manufacturing, iron ore facilities and power facilities.
“New York has probably the clearest, long-term economic interest in keeping clean the water in the Great Lakes basin because everything leaving the basin goes through those turbines in Niagara Falls,” he said.
Water experts say the lakes are no doubt cleaner now than a generation ago and that per capita consumption by residential users is declining. Help has come from technologies that have made for more efficient showers and washing machines. Some appliance makers have made efforts toward “net zero” water collection systems.
But residences aren’t the biggest users of water, and as California has seen, much of the water used by farms, for instance, ends up being wasted.

Spotty conservation efforts

Moreover, researchers say water-conservation efforts in many Great Lakes communities have been spotty since the implementation of the Great Lakes Compact less than a decade ago. Some blame turnover in state administrations.
Others say the compact’s efficiency standards should have been made compulsory for the states and not voluntary.
“There are many communities in the Great Lakes basin with wonderful quality of life and water access and that should be attractive for lots of people. I think the industry piece remains to be seen,” Osann said of the region’s trying to attract larger water-using companies.
Whether or not Buffalo and New York get in on the action, officials in other Great Lakes states say a pitch about abundant clean water will be made to drought-based companies and residents.
But there will limits, they insist.
“We’re not going to put an ad in the L.A. Times saying we have all this water and come use it however you want. The ‘however’ is conditional,” said Allan of the Michigan Office of the Great Lakes.
The Great Lakes states are facing what Allan called a “deeply important question” over how to use the abundant water supplies to promote their economies.
“We have this ubiquity, a tremendous volume and capacity of water,” he said. “But, historically, we’ve not treated it as well as we should.”
As evidence of what’s to come, the Great Lakes marketing terms are well underway: Blue Economy, Fourth Coast, Fresh Coast.
Anderson, the health care executive in Buffalo, believes Western New York’s Great Lakes water resources need to be better developed for job creation. He said he understands the region’s long tradition in attracting and retaining companies – and recent efforts such as SolarCity’s future manufacturing facility in Buffalo – through the availability of cheap and reliable hydropower.
But the region can do more.
“This is a sustainable, long-term solution,” he said of the water he sees every day outside his office windows. “You don’t ever have to worry about it again. That’s not the case in California, and it won’t ever be.”
Taken on its own, water could be a major driver. But businesses don’t locate somewhere based on a single criterion, and New York still has a sour business climate reputation, thanks in part to high taxes and a regulation-heavy environment.
Still, economic development officials in other Great Lakes states say someone is going to act first in a major way to shout out about the region’s water resources. Anderson believes that Buffalo needs not wait.
“I think the time is now, and I do think we have to have a better message about the water availability. It isn’t the only issue, but it’s an important piece,” he said.
email: tprecious@buffnews.com

   

The University of Wisconsin-Milwaukee's School of Freshwater sciences conducts research on the water in the Great Lakes.

Lake Powell Colorado River drought

A year ago, things were looking grim on the Colorado River. After more than a decade of drought, the reservoir system was only about half full and water managers were expecting another dry year. Arizona and Nevada faced the prospect of cuts in water deliveries.
Instead, it just kept on snowing and raining in the upper basin last winter and spring. June flows into Lake Powell, which stores water for release to Lake Mead, were 176% of average. July flows were 280% of average.
Powell hasn't been this high in a decade and the level of Mead, the biggest reservoir in the country, is shooting up. Although it's too soon to tell whether Colorado's stubborn drought is over, talk of shortages has been put off for at least several years.