"Our tax-free Empire Zones are one of New York's most powerful and effective tools to fuel additional job creation and economic growth," said Pataki. "The addition of this zone will spark new job creation and private-sector investment in Sullivan County, and represents another key step in our aggressive efforts to further strengthen New York's economy."

New York State has already offered Kohl's a $1.7 million Empire State Development Grant earmarked for construction costs and employee training programs. Kohl's will now also be eligible to apply for Empire State Development Zone benefits.

Other major development projects in Sullivan County that could benefit from the designation include the proposed Yukiguni Maitake Company, a $32-million manufacturing project from Japan that would create 150 jobs; Concord Equities, a $237-million redevelopment of the Concord Resort that would create 600 jobs and the Eagle Mountain Resort, a $100-million resort complex with three hotels, 27 holes of golf, a conference center, a baseball training camp and a vineyard that would bring about 1,000 new jobs. Additional projects include Calpine Energy's proposed $300-million electrical plant project and the Shawanga Lodge Resort - a $40-million hotel and entertainment complex that would create 300 jobs.