A copy of the letter sent to Anita Laremont, after receiving the Gargano letter sent to Vince Lodato telling him to effectively leave the state. This letter was sent to a number of people see the CC and is a summary of all the events with the State of New York. The State officials were pressured by IBM and others to stop the sale to BBE.
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Anita W. Laremont
Senior Vice President
Legal and General Counsel
Empire State Development Corporation
633 Third Ave
New York, New York April 7,1996
Dear Ms. Laremont,
Thank you for your letter dated April 5, 1996. On behalf of Bizzy Bee we are sad to see a state corporation act in such a manner when confronted with the truth and the economic health of our great Empire State. Our past involvement with the officials of the Job Development Authority (JDA) and what is now called the Empire State Development Corporation (ESDC) concerning the acquisition of the remnants of the technology and equipment of Hampshire Instruments which the State acquired via a default on the loan guarantee and the manner in which BBE has been treated clearly demonstrated that this is not a political issue, i.e. Democratic or Republican but raises very serious concerns has the officials of this part of state government protects and insure the best for New York and its residents.
The Story of BBE and the present ESDC has been documented in the following news articles:
Daily Freeman March 20, 1995
Daily Freeman September 22 1995
Hudson Valley Business Journal May 1 1995
Rochester Business Journal Nov 1, 1995 etc.
Endorsements have come from all the major local and state politicians whether being from Democrats and/or Republicans. Senator Joe Bruno, the Senate majority leader asked the new Governor at the time for the State to "honor the contract", (Letter dated Jan 6, 1995 to Gov. elect Pataki) The Mayor of Kingston T.R. Gallo, who is a democrat, asked Lee Webb who was from the past democratic administration to honor the contract. (Letter dated Dec 12 1994 to Lee Webb) Anita our first meeting with you, Garry Ryan, Lee Webb, Bob Dederich of BBE and myself was at your offices in Dec of 1994 where the contract was changed from $125K plus royalties to over $1M. This was your first change.
Recently when I was in Albany concerning the ESDC-BBE matter I spoke to an attorney in the criminal division of the state Government, she told me to convey the given information to you. I sent it to you and I informed you of an initial FBI probe concerning the Tom Doyle incident and also conveyed this information to senior officials of the ESDC, (the Doyle-ESDC affair) again the ESDC became mute.
The present contract which BBE now has went from 100K plus royalties from Bob Northrop your initial sole sales agent to the present contract for the price of $2.5M and the demand to have all your funds within six months which by the way BBE is prepared to sign and give the State $10K for the Option to Purchase this technology. You will also recall one of your attorney's misrepresented via the phone "after our meeting in Kingston" that the ESDC was going to sell the laser, but when BBE received the contract it was a lease agreement for the laser. This stopped the purchase of the Semi Films building and precipitated my letter of Now 1995 to Chairman Garano. Again later BBE capitulated with regards to your contract of November 1995. Please excuse me for being redundant with the english grammar, and "again", BBE is willing to sign the last contract, you now say that
you will not deal with BBE for the good of the Corporation and the State
even though you have not sold this technology. (It is costing the State over $100K in outside legal, patent and licensing fees.) and it is growing stale and it is useless without the "original BBE stepper technology".
You are well aware that Kingston, New York is a disaster area caused by the loss of 6000 IBM jobs
You are also aware of the fact that BBE has a $3.5M IDA bond issue endorsed by local officials.
You are aware of the Semi Films Building we could purchase for $454K worth well over a $1M. This is a very real manufacturing site for our stepper.
You are aware of the 350 jobs, "real manufacturing jobs" that would come to our community-(see business plan)
You are aware of over $70M that would enter Ulster county via spending capital-(see business plan)
You are aware of the millions of dollars in sales tax that would be generated.
You are aware that BBE ask of no money but is willing to give money ($10K) to the State to help New York via signing the Option to Purchase.
You are aware of the facts that some major manufacturers are desperate and do not want to see this BBE/Hampshire technology in the market place i.e. the BBE stepper coupled to the Hampshire point source for the following reasons. First they will not obtain an ROI in their proposed capital expenditure for their 256mb DRAM manufacturing facilities. Our technology will decrease their active manufacturing life by at least five years. Secondly, and an important fact, the smaller and medium size chip manufacturers can enter the 256 mb and the next 1 gigabit DRAM chip market. Therefore the cartel will not have control of the world market. Also within a five year period BBE would be doing over $350M in business and within a ten year period BBE will be the world's largest semiconductor equipment maker. This would take place in New York State with major facilities in the Hudson Valley. This is great for New York and America and bad for the Cartel!
You are aware of BBE's 100 page business plan that has been favorably received from a technical and business approach. The BBE philosophy is stated on page three of our business plan. This was personally given to the ESDC by Sandy Treadwell, our Secretary of State and was in the ESDC possession for at least four months.
You are aware of the key employees of BBE who will make this project a success. Garry Ryan and Fred Einsenstein meet them at our Kingston meeting.
You are aware of IBM's failure to succeed in stepper technology and its many failures in X-ray lithography and Lee Webb's failure to sell this technology to IBM. (See Rochester Business Journal "JDA hopes pay back from HAMPSHIRE" Nov 1994)
You are aware of our dedication to New York. Time has shown this fact.
You are aware of the $1.5M bribe personally offered to me by an alleged agent of a multinational corporation to walk away from the success of this project via not pursuing the acquisition of Hampshire Technology. The FBI has the evidence and documentation.
You know that my colleague Dr. Moshe Lubin committed suicide over this work. He gave his life for the success of this technology. He built the Laboratory for Laser Energetic at the University of Rochester. He had a Chair at the University when he was in his thirties; he was a VP of a multinational corporation before he founded Hampshire. He could have taken the easy way out years ago, but was a builder and a visionary ahead of his times, finally gave his life for his beliefs. BBE's intentions are to continue his work and make it a reality.
Finally you are aware of my dedication, honor and commitment to BBE and the success of this project. The greatest sadness I have is to see an outstanding group of BBE employees be disbanded; our community devastated financially by the IBM job loss, and my young grand daughter not being able to experience the quality of life she deserves as a resident of the Hudson Valley in the State in which I was born (you know I'm a Brooklyn boy). I love New York and this is why I am fighting so hard.
Anita, again please reconsider BBE's request to purchase the Hampshire technology after reading this letter. If the ESDC does not allow BBE to purchase the Option to Purchase the Hampshire Technology then BBE Inc. cannot exist or have an opportunity for infant life. On behalf of BBE we wish all the personnel of the ESDC the blessing of Jesus Christ on this Easter day, and personally you are in my prayers, Anita
Sincerely,
Vincent a Lodato Ph.D.
President of BBE
CC to Gov. Pataki, Sen. Joe Bruno, Assemblyman Silver, Sen Larkin, Assemblyman Guerin, Members of the NY Senate Committe on Commerce, Economic Development and Small Business, Members of the Assemly Small Business Committe, Members of the Assembly Economic Development, Job Creation, Commerce and Industry Committee, Hon. Sandy Treadwell, Hon. Carl McCall, Hon. Maurice Hinchey, Amabasssador Charles Gargano, Frank Mahoney, Mayor Gallo, David and Kathy L, Daniel B Walsh, Brian McMahon, David Quist, etc etc