New leaders picked for Empire State Development
Nominations begin 'new chapter' for state

By Sharon Linstedt
The Buffalo News, N.Y.
Aug. 23--A Manhattan banker with a background in urban development and a Rochester food executive-turned-business- advocate have been picked to lead statewide economic revival.
Marisa Lago, who most recently served as Global Head of Compliance at New York-based Citigroup Markets & Banking, has been nominated to serve as chief executive officer of the Empire State Development Corp.
Dennis Mullen, 54, current president and chief executive of Greater Rochester Enterprise, and former chairman of Birds Eye Foods, was named upstate president.
Gov. David A. Paterson and ESD Chairman Robert G. Wilmers announced the selections in New York Friday morning, ending weeks of speculation over who will assist Wilmers in leading the restructured ESD.
"These two appointments will begin a new chapter for New York State," Paterson said Friday in Manhattan. "Along with the appointment of Robert Wilmers, the naming of Marisa Lago and Dennis Mullen will bring new vitality to our economic development mission."
In June, Paterson turned heads when he announced Wilmers, the chairman and CEO of Buffalobased M&T Bank, would head the development agency on a part-time basis for a token $1-a-year salary. Wilmers recently said his search for an agency CEO was a broad one, evaluating candidates from across the United States.
Lago, who would earn $215,000 a year, and Mullen, who would earn $200,000 annually, would both report to Wilmers. A downstate ESD president has yet to be named.
The nominations begin to give shape to the state government infrastructure that will be used to retain and attract jobs and investment across New York. Under former Gov. Eliot Spitzer, a bifurcated system, with separate upstate and downstate development czars, was in place.
While Paterson's approach reduces the direct power of the upstate ESD chief, the governor said it doesn't de-emphasize hopes for an upstate rebound.
"It is crucial for us to understand how to make the upstate region -- and all of New York -- attractive to business," Paterson said.
"Dennis Mullen's business and economic development acumen, paired with his deep appreciation for and understanding of upstate New York, will be vital as we bolster out growth strategy for the upstate economy," the governor added.
Mullen, who could not be reached to comment following his nomination Friday, was initially critical of Paterson's elimination of higher profile upstate ESD post, saying it gave the region "an individual as emotionally attached to our region as we are," Mullen said at the time.
During Friday's announcement, Mullen made the point he is "very much attached" to the Rochester area and upstate, and is living there "by choice."
The choice of Mullen to carry the banner for upstate's economic well-being sits well with Buffalo Niagara Partnership President Andrew J. Rudnick.
"This is someone we know from his development efforts in Rochester, and we know his colleagues there hold him in high regard," Rudnick said. "In many ways, he's the absolutely right next step because he brings his experience from both the client's side and the marketing side."
The Partnership chief also said he isn't concerned that Mullen will be based in Rochester, not Buffalo.
Mullen has spent most of his professional life in the food industry, most recently as chairman and CEO of Penfield-based frozen vegetable giant Birds Eye. That company employs some 3,000 people around the United States, including about 700 in the Rochester area.
The Rockaway, N. J., native has worked for several food companies. He landed in Rochester in 1991, as an executive for the Curtice Burns food firm, which later became Agrilink Foods.
As chief executive, he led Agrilink's acquisition of Birds Eye, doubling the size of the business which now operates under the Birds Eye name.
But by 2005, as returns on investments dwindled, Mullen was fired.
"There's no shame in being let go from a company. It was clearly time for a change," he said in a 2007 interview.
He continues to work as a consultant to Birds Eye, earning $1.8 million a year in salary and stock options.
Mullen became interim chief executive of Greater Rochester Enterprise, a regional development advocacy entity a few months after losing his private- sector post, and was named its permanent leader in late 2006.
As GRE chief, his successes include luring Barilla America to build a $96 million pasta plant in Avon, creating 121 jobs.
But he has also had an interest in taking on a larger role in regional development. He was interviewed by Spitzer in late 2006 for the upstate ESD job that was eventually given to Daniel Gundersen.
Lago, who resigned her Citigroup post in late June, is a Harvard University Law School graduate who formerly served as director of international affairs at the federal Securities and Exchange Commission and the city of Boston's chief economic development officer. She is also a former general counsel for New York City's Economic Development Corp.
Lago faces State Senate confirmation before joining the agency. Mullen's confirmation will come from the ESD board of directors.
slinstedt@buffnews.com
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