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FOR IMMEDIATE RELEASE:
June 26, 2008 

GOVERNOR PATERSON ENDORSES SELECTION OF PAUL T. WILLIAMS AS EXECUTIVE DIRECTOR OF THE DORMITORY AUTHORITY

Governor Signs Executive Order to Increase Utilization of MWBE Underwriters for State Debt Offerings

Creates Task Force to Develop Guidelines and Performance Measures

Governor David A. Paterson today endorsed the appointment of Paul T. Williams, Jr., as the new Executive Director of the New York State Dormitory Authority. Mr. Williams is an accomplished attorney, investment banker and civic leader who was appointed Wednesday to his new position.

 

As Executive Director of the Dormitory Authority, Williams will serve as the chief administrative and operating officer of one of the leading public finance and construction management agencies in the nation. The Authority annually ranks among the top five issuers of tax-exempt bonds in the nation. In 2007, the Authority sold $4.6 billion in bonds (third in the nation) and had a portfolio of $35 billion in outstanding bonds.

 

The Governor used the occasion of William’s appointment to sign an executive order that will increase the utilization of Minority and Women-Owned Business Enterprise (MWBE) underwriters for the State’s debt offerings sold on a negotiated basis, and develop transparent performance measures to govern the selection of underwriters for these transactions.

 

“Although New York State has made significant strides towards increasing the participation of MWBE firms in construction projects, the same is not true in the financial industry,” said Governor Paterson. “As we welcome Paul to his new position overseeing the construction and financing of major state projects, I want to make a fundamental improvement to how the state chooses its underwriters. Billions of dollars of State-supported debt are issued each year, but MWBE underwriters serve as senior managers in only about 5 percent of those transactions. That is an appallingly low percentage, and we need to take steps to address this inequity. I applaud the Black, Puerto Rican, Hispanic and Asian Legislative Caucus for their hearing earlier this year on this important issue.”

 

Currently, up to 75 percent of the State’s bonds are sold on a negotiated basis. For these negotiated bond sales, a Request for Proposal (RFP) process is used to qualify underwriters eligible to take on senior management roles. Since 2004, MWBE firms served in the role of senior manager (or co-senior manager) on 4 percent of the State’s bond transactions overall and 5 percent of those sold on a negotiated basis.

 

The Executive Order creates a Task Force comprised of the heads of the major public authorities that issue State-supported debt – the Dormitory Authority, Environmental Facilities Corporation, Housing Finance Agency, Thruway Authority, and Empire State Development Corporation – plus three other gubernatorial appointees. The Task Force will:

  • review the current practices of public authorities that issue debt to gain a full understanding of the processes used to select underwriters for State-supported bonds sold on a negotiated basis;
  • develop recommended procurement guidelines to be used for the development and issuance of new solicitations for underwriting services, and improve the RFP process;
  • develop recommended performance measures to evaluate all investment banks awarded bond underwriting contracts;
  • issue a preliminary report on April 15, 2009 and a final report on January 31, 2010, evaluating each State-supported debt issuer’s performance practices based on information that State-supported debt issuers will be required to submit to the Task Force.
  • implement the Task Force's recommended new practices for selecting MWBE underwriters by October 15, 2008. The task force will also issue a preliminary report on April 15, 2009 and a final report on January 31, 2010, evaluating each State-supported debt issuer’s performance practices based on information that State-supported debt issuers will be required to submit to the Task Force.

 

By directing the creation of procurement guidelines and performance measures, the Governor’s Executive Order will help eliminate inappropriate barriers to entry, level the playing field for MWBE investment firms and qualified firms in general, increase opportunities for MWBE firms to be senior managers on State debt issuances, and increase MWBE firms participation in government contracts.

 

“The State has a strong interest in increasing the pool of qualified investment banking firms for State debt offerings,” said Governor Paterson. “By developing transparent performance metrics used to govern the selection of lead underwriters for State debt, the Task Force will help ensure all qualified investment banks have an opportunity to fairly compete for the State’s underwriting business.”

 

Paul T. Williams, Jr., Executive Director of the Dormitory Authority of the State of New York, said: “I am honored and proud to serve as a member of Governor Paterson’s task force. Our goal of creating and expanding avenues of opportunity is both timely and worthy. Under my leadership, the Dormitory Authority will do all it can to ensure that this initiative results in resounding success. New York and New Yorkers deserve nothing less.”

 

“The Dormitory Authority will benefit from the strong leadership and vision that Paul Williams will bring,” said Governor Paterson. “The Authority provides critical public finance and construction project management services that help government agencies and not-for-profit institutions across the state develop and deliver important services to the higher education, health care and not-for-profit sectors. With Paul Williams’ experience and dedication, the Authority will continue as a leader providing capital, construction and other professional services to important public and private institutions across New York State.”

 

NYS Senators Andrea Stewart-Cousins (Downstate Co-Chair for the NYS Senate Democratic Minority MWBE Task Force) and Ruth Hassell-Thompson (Ranking Member of the Senate Consumer Protection Committee), said: “Minority and Women-owned Business Enterprises (MWBEs) are the fastest-growing business segment in the United States, with almost a million in New York State alone. We are proud to have been at the forefront of ensuring that economic expansion opportunities have become more accessible and streamlined for expedited certification for MWBEs across the State. Governor Paterson has a long and distinguished track record for improving opportunities for MWBEs to obtain State contracts, which has not only diversified the business world, but has also been a revitalizing factor for New York's economy. Small businesses are a signature for our local communities and serve as the backbone for our local economies. Today's announcement opens a promising new chapter in the Governor's ongoing effort to enhance job creation, and increases the level of access by MWBE's to the financial sector, while ensuring transparency, competitive standards and equal access to opportunity. It is imperative that we do everything in our power to facilitate growth in this arena, so that the next generation of entrepreneurs views New York State as an incubator for small business growth and opportunity. When properly nurtured, programs like MWBE continue to yield prosperity, particularly in communities that have been devastated by job loss and business decline. We commend Governor Paterson for his demonstrated commitment to opportunity, accountability and efficiency.”

 

The Authority currently has 685 projects statewide in its construction book valued at $6.3 billion including hospitals, courthouses, residence halls, research facilities, nursing homes, psychiatric centers and public libraries. The Authority has a workforce of 593 and an annual operating budget of $86 million. With its “All Green - Only Green” initiative that took effect January 1, 2008, the Authority is poised to become a national leader in the financing and construction management of highly energy efficient and environmentally sustainable public purpose buildings.

 

Williams joined the Dormitory Authority from the law firm Nixon Peabody LLP, where he served as senior counsel. He was formerly President at Toussaint Capital Partners LLC, was a partner at Bryan Cave LLP, and was a founding partner of Williams & Harris LLP (formerly Wood, Williams, Rafalsky & Harris LLP).

 

As a civic leader, Williams is known for his work with 100 Black Men, Inc. in New York City, a charitable organization with a focus on education and community empowerment. He served as President of 100 Black Men for five years. He currently serves on a number of boards, including the Eagle Academy Foundation and City Parks Foundation. Past board service includes One Hundred Black Men of America, Greater Harlem Chamber of Commerce, and the Association for a Better New York.

 

Williams succeeds former Executive Director David D. Brown IV who served from April 2007 through May 2008.