By Dominique Cantelme
From the March/April 2013 issue

New York State’s 54,556 square mile geography is divided into 10 economic regions (according to Empire State Development)—Western New York, Finger Lakes, Southern Tier, Central New York, North Country, Mohawk Valley, Mid-Hudson, Capital District, New York City and Long Island. They encompass landscapes that range from farms, forests, rivers and lakes to mountains, towns and urban cities and a transportation infrastructure with airports, highways, waterways, subways, bridges and tunnels to help move its more than 19 million residents where they need to go.

Western New York provides both city and suburban living. Coverage of its 4,974 square miles is aided by I-90, I-86 and Route 219; Buffalo-Niagara International Airport; the Port of Buffalo; and four class I railroads (CSX, Norfolk Southern, Canadian National and Canadian Pacific). The region’s economy is particularly focused on manufacturing; it is home to a number of colleges, universities and professional schools such as SUNY College at Fredonia, University of Buffalo and Cornell University School of Industrial & Labor Relations; and offers attractions such as Allegany State Park and Ralph Wilson Stadium (NFL’s Buffalo Bills).

One of the largest tourism regions in the state, the Finger Lakes is located in the west-central section of Upstate New York and encompasses a pattern of 11 parallel lakes that include Cayuga, Owasco, Hemlock and Seneca.

Its nine counties (e.g., Genesee, Livingston, Ontario) provide scenery, history, farmlands, and museums over almost 5,000 square miles. The region is within a day’s travel of 10 of the largest cities in North America and navigated by I-90, I-390, the Greater Rochester International Airport and the Norfolk Southern Finger Lakes Railway.

The Southern Tier Region is located on the Pennsylvanian border of New York. Broome, Chemung, Chenango, Delaware, Schuyler, Steuben, Tioga, and Tompkins counties boast natural resources, agriculture and an educated workforce with universities that include Binghamton and Cornell and market access provided by I-81, I-86, I-88, and Route 17; three regional airports; rail service; and bus service by Greyhound, Short Line and Capitol Trailways.

The North Country is a seven county rural region that spans from the eastern shores of Lake Ontario to the western shores of Lake Champlain and houses Adirondack Park and Fort Drum. With 11,913.57 square miles, it is the largest of the regions in land area and the smallest in population. Access is provided by I-87, I-81 and Highway 401 as well as passenger air, commercial and passenger rail and port service.

The Mohawk Valley is located at the geographic center of Upstate New York and links all the major metropolitan areas together. Its 5,296.57 square miles spans six counties with numerous academic and research institutions, a highly skilled workforce and concentrations in manufacturing and IT. I-90, NYS Rt. 12 N S, I-81, I-87 and I-88 provide highway access while air service is available at the Griffiss Business and Technology Park and rail, bus and port service is available through a number of carriers and facilities.

The Mid-Hudson Region is located north of New York City and south of Albany along the Hudson River, and includes seven counties (e.g., Ulster, Dutchess, Rockland and Westchester). The 4,739.36 square miles is a mix of urban areas, waterfront cities, rural villages, farmlands and forests in the epicenter of the Boston-Washington Corridor. The region’s educated workforce, proximity to marketplace and access to water help make it a good place to do business with highways I-84, I-87, NY-17 and I-86; Stewart International Airport; the Metropolitan Transportation Authority, Amtrak, CSX and Norfolk Southern rail service; and bus and port service providing transportation options.

In the eastern part of mid-New York is the Capital Region which covers 5,199 square miles and is comprised of eight counties (e.g., Albany, Columbia, Saratoga and Schenectady). It is home to the Center for Excellence in Nanoelectronics at CNSE’s Albany NanoTech and the Center for Integrated Electronics at Rensselaer as well as Skidmore College and a number of other academic institutions. The region’s transportation network consists of the New York State Thruway, I-87 and I-88; the Albany International Airport; Albany Port Railroad Corp., Amtrak, CSX and CP rail systems; and the port of Albany Rensselaer and the New York State Canal System.

The 303.32 square miles of New York City is composed of five boroughs (Manhattan, the Bronx, Brooklyn, Queens and Staten Island) with more than 40 percent of the State’s population. Its more than 8,336,697 residents also make it the most populous city in the U.S. A tourist attraction in itself, NYC also includes major destinations such as the Empire State Building, Statue of Liberty, Ellis Island, Broadway and the Metropolitan Museum of Art and it is described as the cultural capital of the world. New York City also is the largest media market in North America and a center for the television, film, advertising, music, newspaper and book publishing industries as well as a global hub of international business and commerce.

Long Island is located at the southern tip of New York State, just east of New York City. Its 1,202.96 square miles is surrounded by Long Island Sound and the Atlantic Ocean. The region is comprised of Nassau and Suffolk counties and is known for its high quality of life as well as its geographical and industrial diversity. The Long Island Region is a magnet for commerce and industry and a world leader in technology development. Its close proximity to New York City and its access to national and international markets also make it ideal for service and manufacturing industries.

New York is home to some of the most diverse regions in the country with various people, landscapes, attractions, population sizes, land masses, and businesses. The one consistent is its propensity for economic opportunity. Banking, finance, communication, high technology, retail, manufacturing and agriculture are just some of the many industries prevalent in the Empire State. Its pro-business, pro-growth philosophy offers companies job-creating tax cuts, R&D incentives and a number of other business and financial resources along with a diverse and skilled workforce. New York provides a high quality of life for its people and offers access to various educational institutions that include public and private universities, technology colleges and graduate and professional schools for any desired trade or profession. Whether traveling by car, train, bus, boat or plane, New York can get you there.

Read on to find locations that can help your business succeed with a little bit of New York flair.

Oswego County: Active In Economic Development

Manufacturing is a strong, healthy and growing sector in Central New York’s Oswego County. Operation Oswego County, Inc. (OOC) and their partners, the County of Oswego Industrial Development Agency (COIDA), City of Oswego Community Development Office (CDO) and the Empire State Development Corporation (ESDC) have been very active in helping to finance manufacturing as well as commercial projects in Oswego County during 2012.

Some of these economic development projects which clearly demonstrate the diversity of business types that are being assisted in Oswego County by OOC, COIDA, CDO and ESDC include:

• Fulton Thermal Corporation, a global manufacturer of steam and hydronic boilers and thermal fluid heaters, constructed a 112,000-square-foot addition to their existing manufacturing and corporate headquarters in the Town of Richland. The new facility houses an 82,000-square-foot manufacturing building, a 10,000-square-foot research and development center and a 20,000-square-foot corporate office center. Primary funding assistance was provided by a $10 million tax-exempt bond issuance by the COIDA in cooperation with M&T Bank. The facility expansion was partly funded by an ESDC $1.5 million grant from the New York Upstate Regional Blueprint Fund. The $13.5 million project created 50 jobs.
• Stevedore Lofts, in the City of Oswego, was a waterfront renovation of a 42,000-square-foot warehousing facility into residential and commercial property. The property overlooks the Oswego River and is just a few blocks from downtown Oswego and Lake Ontario. The

$6.5 million project received funding assistance from the COIDA, the Oswego CDO and an ESDC Restore NY grant. The project created 15 jobs and added 29 market-rate apartments.

• The $6.9 million Seaway Lofts project in the City of Oswego received $1.5 million in funding from the New York State Housing Trust Fund/HOME and federal low income housing tax programs. In addition to state funds, financing from the city of Oswego Community Development Office, the County of Oswego Industrial Development Office and the Federal Home Loan Bank will be used to convert the 28,000-square-foot vacant building into affordable housing apartments. The project encompasses rehabilitation and adaptive reuse of the former Seaway Supply building into affordable workforce housing and will capture the historical features of the building while focusing on the use of energy-efficient construction techniques. It is being designed to contribute to the overall community vision for the neighborhood, including affordability and access for tenants with disabilities. Seaway Lofts is located directly across from the Varick Lock and Oswego River. The building was built in 1888, served as the home of the Brosemer Brewery and is listed on the National Register of Historic Places. The project will create 26 affordable-housing apartments and two jobs.
• Novelis, in the Town of Scriba, is constructing a $208 million, 180,000-square-foot expansion which adds two new high performance aluminum finishing lines for automotive industry products. These two new lines are expected to produce an additional 440 pounds of aluminum sheet per year. The project has created more than 100 new jobs and retained 651 jobs. Financing was assisted through a $5 million Empire State Development Corporation grant and funding through the County of Oswego Industrial Development Agency.
  

  United Wire Technologies in Constantia.

• Design Concepts and Enterprises, LLC, manufacturer of medical surgical sutures and suture attaching equipment, constructed a 1,634-square-foot clean room. Located in the Town of Hastings, Design Concepts sells their products in the U.S. and abroad. The $650,000 project retained six jobs and created 13 new jobs. Funding assistance was provided by the COIDA.
• After a fire destroyed their facility in the Village of Cleveland, United Wire Technologies renovated a vacant 14,000-square-foot building in the Town of Constantia. Relocating afforded them the opportunity to update and expand their facility. There is additional land adjacent to the facility onto which the company could expand further. United Wire manufactures specialty wire. The $1.4 million project retained eight jobs and will create six new jobs. Funding assistance was provided by the COIDA.

These projects represent a total investment of approximately $237 million and will create/retain 851 jobs in Oswego County. Numerous other projects are in the works and Operation Oswego County is actively engaged in assisting several manufacturing projects that are evaluating opportunities to expand in Oswego County and/or locate operations there. For more information visit www.oswegocounty.org.

Town Of Islip: A Community Of Opportunity

The Town of Islip has long been known as a leader of economic development in New York. Islip boasts the largest industrial corridor in the region, major infrastructure advantages over surrounding areas and an Industrial Development Agency (IDA) that has won renown for its continuous ability to attract new businesses. Though Islip faces many of the same challenges as other municipalities during these harsh economic times, the Town is uniquely suited for economic growth and expansion.

One of the prime reasons for Islip’s attractiveness to local, national and international businesses is the proximity these businesses have to Long Island MacArthur Airport (LIMA), which the Federal Aviation Administration has defined as being on-par with LaGuardia and John F. Kennedy Airports. Having a nationally recognized airport within Islip Town helps local companies conduct their business more effectively and efficiently. Just as MacArthur Airport helps local businesses expand, the airport itself is working to grow its presence to handle the economic demands of the future. Progress has already been made to increase the flow of business through the airport and is seen in U.S. Airway’s decision to offer daily flights to-and-from Ronald Reagan National Airport in Washington, D.C.

Just next door to Long Island MacArthur Airport is Foreign Trade Zone (FTZ) #52. FTZ #52 was created to help businesses with an international scope grow and thrive in Islip. These companies can utilize the FTZ’s singular economic status to avoid costs associated with importing and exporting goods with other countries. The FTZ sits at the intersection of a crucial transportation hub that features railways, highways and a commercial airport.

The Town of Islip has a proud tradition of business success, across a variety of industries. But special mention must be made toward three critical industries that have thrived within the town: technology, food distribution and pharmaceuticals. Many technology companies, spanning sectors from aerospace to telecommunications, have found a home in Islip. CMG Wireless, a company that produces goods for the telecommunications market, rapidly has expanded their operations to cope with the increase in demand for wireless technology. They have remained in Islip largely because the IDA was able to help them adapt and expand their facilities to ensure that business was uninterrupted. CPI Aero, a company that manufactures aircraft components, primarily for the U.S. military, was recently able to expand their operations to a new facility, and did so with the help of the Islip IDA.

Another recent success story has been the construction of a 420,000-square-foot facility to be operated by Sysco Inc., a food distribution company. Throughout the entire construction process, from planning, to building, to staffing, Sysco and the Town of Islip have worked together to address the needs of both the company and the community. The facility has been fully operational since the summer of 2012, and the demands of the facility already have created over 250 jobs with more to come. Throughout the entire recruitment process, SYSCO has placed a special focus on hiring from within the area. The distribution center boasts features such as a state-of-the-art hydrogen fuel station to power all of the forklifts in the facility. This project has been a model for how local governments, civic groups and businesses can work together and be proud of the finished product, which will keep all parties satisfied for years to come.

And most recently in 2012, Islip welcomed Ascent Pharmaceuticals, a pharmaceutical manufacturer whose operations involve research, development and the manufacture, warehousing and distribution of generic prescription medicines in a wide range of therapeutic areas. With the assistance of the Islip IDA, the company, owned by InvaGen Pharmaceuticals, purchased and renovated an existing 250,000-square-foot facility for $20 million and they expect to invest another $19 million in additional equipment and research. In return for financial assistance, Ascent has pledged to hire 100 new employees immediately, another 150 in the following three years and projects to employ a total of 350 when fully operational within five years. The story of Ascent

Pharmaceuticals is another example of how a company can grow and thrive in Islip, a community that understands the dedication and commitment necessary for projects like this to come to fruition.

Through all of these developments, the Islip IDA has continuously demonstrated its ability to work with businesses to build partnerships between government, businesses and residents. As a result of its many accomplishments, the Islip IDA was named the 2011 Suffolk County IDA of the Year by the editorial staff of the Long Island Business News. Islip Town will always be committed to exploring new ways to bring jobs and opportunities to Islip, without losing their identity as a community.

For information on how your business can grow in Islip, please visit www.islipida.com.

Buffalo Niagara: Four Billion Reasons To Relocate

Between yesterday, today and what will come tomorrow, there will be $4 billion in recent, current and planned development in Buffalo, New York. These investments reflect a new spirit of collaboration through public and private partnerships that focus on creativity, flexibility and a shared vision with strategic and attainable goals for business and community development.

In the last decade the city of Buffalo experienced more than $1.5 billion in new investment. The vision of a new Buffalo Niagara Medical Campus (BNMC) focused on bioinformatics, life sciences, emerging technologies, clinical care, entrepreneurship and research has spurred critical growth. As a result, state-of-the-art, multidisciplinary facilities like the Hauptman-Woodward Medical Research Institute; the one of a kind shared facility that boasts Kaleida Health Gates Vascular Institute, the University at Buffalo’s Clinical and Translational Research Center and the independent Jacobs Institute; and Roswell Park Cancer Institute are having a tremendous impact on the city’s economy, with more than 5,000 jobs created or relocated to this innovation hub since 2003, and another 5,000 expected in the next five years.

Today, another $1.5 billion in projects are underway on the BNMC, the central business district and Buffalo’s waterfront. These include critical components like the University at Buffalo relocating its highly ranked medical school to the BNMC. Also on the site, the new John R. Oishei Children’s Hospital has just broken ground. To support these facilities, new medical offices and other operations are growing around the campus footprint, providing essential services and business infill.

And the region’s rebirth isn’t limited to the life sciences industry. New projects also include the evolution of the region’s manufacturing base from its steel roots to clean technologies and advanced manufacturing.

Along with the remarkable investment in industry has been the tangential redevelopment of dozens of historically significant and architecturally outstanding buildings by Frank Lloyd Wright, H.H. Richardson, Louis Sullivan and Louise Blanchard Bethune, to name a few. Long overlooked and underused, today these gems are being revitalized as high-end luxury condominiums, affordable and attractive student housing, Class A office space, hotels, legal and financial services offices, high-tech incubators and shared workspace setups, restaurants, retail and more. A redevelopment strategy supporting public-private investment is being led by the Buffalo Building Reuse Plan and implemented by the Buffalo Urban Development Corporation.

Businesses opening in or relocating to Buffalo are consistently impressed by the trained and educated workforce they find. The region also offers reasonable business development costs and easy access to major markets like New York, Chicago, Boston and Toronto without the hassles or high costs of locating in major metropolitan areas. And once in Buffalo, people are amazed to discover Buffalo’s affordable housing, temperate climate and outstanding quality of life.

In the last decade, brownfield redevelopment and innovative reuse projects have resulted in renewed access to the waterfront, including Canalside—a waterfront park and public space at the original terminus of the Erie Canal. Here, hundreds of thousands of people gather throughout the year to enjoy concerts, festivals, boating, museums, shops and restaurants—and all within the first five years of Canalside’s groundbreaking.

Inspired by the activity at Canalside and the passion of Western New York sports fans, the National Hockey League’s Buffalo Sabres are building a $172 million, best-in-class facility to showcase both minor league and amateur hockey events right next to the Sabres’ home at First Niagara Center.

And there are meaningful investments in Buffalo’s arts, cultural and educational institutions, too. Within the last five to seven years, residents and visitors have been able to enjoy the revitalization of the Buffalo Zoological Gardens and the Buffalo Olmsted Parks system, the opening of the Burchfield Penney Art Center (the first new museum in the city in more than 100 years), and the reconstruction of the entire Buffalo Public Schools system. In addition, several other cultural venues, including the world-renowned Albright Knox Art Gallery and Explore and More Children’s Museum, are building, expanding or renovating.

In 2012, New York State Governor Andrew Cuomo pledged $1 billion in state funding to support investment in key industries in Buffalo Niagara to leverage an additional $5 billion in private investment. To achieve this goal, Buffalo’s business executives, government officials and community leaders are working together to implement a strategic and focused plan to invest in life sciences and health care, education, culture and tourism, and high-tech manufacturing. This state-level investment means that new and relocating businesses will get the support they need for their companies to take root and grow. And, thanks to Buffalo Niagara’s geography—within the largest freshwater basin in the world and surrounded by two Great Lakes and the mighty Niagara River—the region is uniquely positioned to support forward-looking energy production, like wind and solar energy, and to supply inexpensive hydroelectric power to new and expanding manufacturers in Buffalo Niagara.

Buffalo is a decidedly different place than it has been for the last 50 years—and there are more than four billion reasons why. For more information visit Buffalo Niagara Enterprise at www.buffaloniagara.org or call 800-916-9073.

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(Photo: Heidi Schwartz)

Posted by Heidi Schwartz

The New York City Regional Economic Development Council (NYCREDC) and NYC SeedStart have announced “NYC SeedStart Enterprise 2013,” a startup focused accelerator program in New York City. The initial program will target entrepreneurs tackling enterprise solutions and provide resources and opportunities for the entrepreneurs to collaborate with one another, discuss problems and challenges, and build the next generation of enterprise technology. NYC SeedStart Enterprise 2013 is part of a series of six business accelerator programs moving forward on the strength of a $550,000 award from Governor Andrew M. Cuomo’s Regional Council initiative, as well as corporate partners CA Technologies, Deutsche Telekom and others.

Applications for the program must be submitted by May 5. The program will begin July 8 in New York City and conclude with presentations to investors in September.

“New York City is the place to be for entrepreneurs with innovative ideas looking to create the products of tomorrow,” said Matthew Goldstein, Chancellor of the City University of New York and NYCREDC Co-chair. “The NYCREDC identified the NYC SeedStart program series as one of its priorities because it is exactly what we need to grow early stage startups into job-creating companies. We are very pleased to partner with NYC SeedStart and look forward to seeing the new products and companies that result from this collaboration.”

“We have brought together a unique group of industry, city and entrepreneurial mentors in order to help grow the next big enterprise companies here in NYC,” said Owen Davis, Managing Director of NYC Seed and founder of NYC SeedStart. “We want to see the ideas developed by New Yorkers transformed into new companies that stay, grow and lead the new economy in New York. This summer’s program will launch the next generation of entrepreneurs, and we commend the State and all of our partners for their support.”

The NYC SeedStart accelerator program series strongly aligns with the NYCREDC’s economic development strategy and was identified as a priority project. As a result, NYC SeedStart was awarded a $550,000 grant from Empire State Development to support six 12-week business accelerator programs to foster the growth of startups in New York City. NYC SeedStart Enterprise 2013 will receive a portion of the grant funds and the balance will provide continued support to future accelerator programs.

“For far too long, innovative and transformative new ideas have been developed in New York only to be exported and commercialized in other states,” said Empire State Development President, CEO & Commissioner Kenneth Adams. “Under Governor Cuomo’s leadership, we are working harder than ever with partners like NYC SeedStart to connect startups with corporate partners that can turn concepts into products, which will grow new businesses and create jobs at home in New York. The NYC SeedStart Enterprise 2013 program will develop the next generation of high-tech companies that we need to continue growing our economy and remain at the forefront of the 21st century global economy.”

The vertical focus of NYC SeedStart Enterprise 2013 is “uniquely New York,” involving numerous corporate participants working collaboratively to foster the growth of new startups in New York State and bridge the gap between large enterprise corporations and early stage startups that are developing new technology to transform the industry. Future NYC SeedStart programs will focus on other industry verticals. The NYC SeedStart consortium includes NYC Seed, Contour Venture Partners, RRE Ventures, StarVest Partners and Safeguard Scientific.

The intensive, 12-week program is designed to help entrepreneurs focused on the next-generation of enterprise software launch new ventures in New York City. New York City has become one of the leading entrepreneurial eco-systems in the country. With access to large amounts of capital, highly experienced investors and a robust ecosystem, New York is a very attractive location for companies to launch. The goal of NYC SeedStart Enterprise 2013 is to establish an infrastructure that will enable talented entrepreneurs to work on important enterprise trends and products in New York City and launch their ventures.

Startup companies accepted into the program will have direct access to senior level executives from partnering firms and receive $20,000, as well as mentorship and workspace. In addition, startups selected for the program will also receive support from an outstanding group of venture capital firms including Contour Venture Partners, NYC Seed, RRE Ventures, Safeguard Scientifics and StarVest Partners, as well as many notable entrepreneurs and Empire State Development (ESD), Silicon Valley Bank and the law firm of SorinRoyerCooper.

The growing number of new enterprise software companies in New York City over the last several years has led to a stream of new innovations that the leading enterprise companies are eager to grasp. Startups will benefit from the advice and possible partnership with their larger counterparts, while participating corporations will have exposure to the cutting edge technology and ideas created during the course of the program.

Maria Gotsch, President and CEO of the Partnership Fund for New York City said, “New York City is a key market for enterprise technology given the extensive number of large corporations operating here. Through the Enterprise 2013 accelerator and with the Partnership Fund’s help, NYC SeedStart will provide both capital and access to key corporate relationships to catalyze the growth of the next generation of enterprise tech companies and associated jobs in New York City.”

Russell M. Artzt, Vice Chairman and founder, CA Technologies said, “I am excited to participate in the NYC SeedStart enterprise program. We look forward to working with entrepreneurs that are trying to build innovative enterprise companies and supporting the entrepreneurial ecosystem in New York. Hopefully our mentorship will lead to some strategic partnership discussions with CA Technologies.”

Stuart Ellman, Co-Founder and Managing Parner of RRE Ventures said, “At RRE, we see the need and the tremendous potential for an enterprise incubator such as NYC SeedStart. We are proud to be a supporter and look forward to working with the companies.”

Andreas Wuerfel, Director Innovation & Technology Scouting Deutsche Telekom, Inc. said, “At Deutsche Telekom we embrace and value the power of innovation. It is exactly programs such as ‘Enterprise 2013’ that help foster that vital dialog between New York’s entrepreneurs and corporate organizations. We look forward to participating in this year’s program and are excited to help shape potential win-win strategic opportunities.”

Among the hundreds of companies applying to be a part of the program, NYC SeedStart Enterprise 2013 is seeking companies building new technology in SaaS, real-time analytics, security, cloud services, and consumerized enterprise products.

For more information about NYC SeedStart Enterprise 2013, visit www.nycseedstart.com. Inquiries should be directed to Brian Malkerson at info@nycseedstart.com.

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By Business Facilities Staff

Each year, Business Facilities selects the organizations that have established and consistently executed the best practices in our industry, bringing measurable success in targeted economic development to the locations they represent.

We honor these organizations with our Economic Development Excellence Awards, which are earned by the overall performance of the organization on behalf of its location, and with a series of awards for specific Achievements in Economic Development for categories including achievements in targeted incentives, business retention, downtown revitalization, public- private partnerships and ports/FTZs. We also bestow our Achievement in New Media Award for Best Use of Video and Best Use of Social Media.

The finalists for our new overall Economic Development Excellence awards were asked to prepare a detailed submission that summarized the most productive project development in their locations and gave our us an overview of the economic development strategy they have deployed to ensure sustained long-term growth. The information provided included the top projects (initiated since the beginning of 2012), in terms of capital investment and job creation. These projects included new facilities, expansions, relocations or corporate headquarters. In their strategic narratives, finalists identified the growth sectors they’re targeting and described the specialized tools being deployed to achieve growth in these sectors. We encouraged them to specify their approach to workforce training, specialized incentives and the support they provide to the development of start-ups, small businesses and other entrepreneurial initiatives.

In assessing the candidates for our Excellence awards, we assessed the diversity and scope of the agency’s overall economic development program (in terms of the expansion of existing industries as well as the attraction of new ventures). Our Achievement Awards throw the spot- light on agencies and organizations that have established the best practices in their specified category.

And now, without further ado, here are the winners of our 2013 Economic Development Awards.

Population Greater Than 500k

Greater Fort Lauderdale Alliance
The Greater Fort Lauderdale Alliance, through its CEO Council—and through its headquarters marketing and recruitment initiative—set a new standard of excellence in 2012 for the delivery of high-quality, effective economic development programs. These programs have resulted in substantial upward mobility for current and new Broward County residents, while providing substantial returns on investment to local municipal partners through the generation of new revenue as a result of capital investments.

In 2012, a national TV ad blitz continued to promote Greater Fort Lauderdale/Broward County’s strong business value proposition. The campaign, built on the tagline of “Life. Less Taxing,” aired for six months in the NY/NJ/CT, Boston and Chicago markets.

Key to the new marketing initiative was a CEO Council-sponsored hosting event for leading corporate real estate executives, site selection consultants and media outlets, which included a reception at Nova Southeastern University’s new $50-million Oceanographic Center.

The Greater Fort Lauderdale area continued to notch headquarters relocation and expansion success stories, including:

• Custom clothier Astor & Black moved to Pembroke Pines, creating 62 jobs in a $1.48-million capital investment over a three-year period. State and local incentives from Florida and the City of Pembroke Pines totaled $554,000, including $434,000 from the Qualified Target Industries Tax Refund Program and $80,000 from the Governor’s Quick Action Closing Fund
• SmartWater CSI, a UK forensic technology firm also established its North American Headquarters in Fort Lauderdale, and UK-based Private Jet Charter expanded its headquarters there.
• Connecticut-based Turbine Controls, Inc. (TCI) announced it is undertaking a $1.5-million expansion in Miramar, creating 60 jobs. TCI, an industry leader in air- craft engine component MRO services, will locate its facility at Miramar Park of Commerce.

There also were 23 other company relocations and expansions throughout Broward County in 2012, resulting in 1,669 new jobs, 1,689 retained jobs and more than $88 million in new capital investment. Highlights include the largest industrial spec development lease in the last five years in Broward County. AeroTurbine, the Miami-based aviation supply company is expanding to a new, 264,000-square-foot building in Miramar. The project offers a direct capital investment of $30 million dollars and will create 75 jobs.

Saveology’s move to Margate will add 700 jobs to its operation. The Internet company received a $2-million incentive package (tied to job-creation commitments) for its relocation to the 100,000-square-foot office. Stretch Wrap Packaging Industries, a manufacturer of plastic stretch wrap for the logistics industry, also has relocated to the Fort Lauderdale area from Suriname, South America; the company has committed to add 200 jobs over the next three years. The total foreign direct investment is $12 million.

The Alliance substantially expanded international business activities to raise the global footprint of Greater Fort Lauderdale/Broward County by taking an active and participatory role in Gov. Rick Scott’s missions to Brazil, Colombia and Spain, and a separate mission to Mexico, along with hosting and facilitating visits from Australia, Brazil, Chile, China, Colombia, Italy and the United Kingdom.

The Alliance has a strong partnership with Broward County’s Workforce One employment center, securing nearly $1 million state and local training assistance for 1,107 employees in local companies.

The Alliance supports the GrowFlorida program designed to provide both technical assistance and access to capital to second-tier, high-growth companies in the area; it also provided assistance to Broward College to establish a new business incubator to promote small business.

In 2012, the Alliance formed its first Port Everglades Action Team, led by CEO Council member Terry Stiles, to work with the business community to generate support in securing necessary state and federal funding for expansion projects in the county’s Port Everglades Master Plan. Port Everglades, the 12^th largest cargo port in the U.S. and one of the top cruise ports in the world, is embarking on three critical expansion projects that will create 7,000 new jobs regionally and support 135,000 jobs statewide over the next 15 years.

Throughout the year, a primary focus of the Alliance is assisting local companies succeed through its Business Retention and Visitation Outreach (BRAVO) program. In 2012, the Alliance visited 178 companies to assist with access to capital, workforce training opportunities, permitting issues and site location assistance.

Gaining Honorable Mention Awards in this category were Greater MSP (Minneapolis Saint Paul Regional Economic Development Partnership) and Columbus (OH) 2020.

Greater MSP launched in 2011 as a public-private partnership dedicated to accelerating job growth and capital investment in the 13-county regional MSA. Thanks in large part to Greater MSP’s efforts, the region now boasts the highest per capita concentration of Fortune 500 and large privately held corporate headquarters. The area also has the second-highest concentration in the U.S. of employment in its biotech sector, anchored by its world-class research institutions, including the Mayo Clinic and the University of Minnesota.

Columbus 2020 represents the 11-county region centered on Columbus OH, working in collaboration with JobsOhio and local partners to offer comprehensive services to companies evaluating the area. The organization has targeted development in growth sectors including logistics, international business, manufacturing, corporate headquarters and bioscience.

Population Between 200K-500K

Lincoln (NE) Partnership
Lincoln, NE is a community recognized around the nation for its aggressiveness in pursuit of new job creation opportunities. This effort is focused at the Lincoln Partnership for Economic Development. The primary service territory of the organization is Lancaster County and its primary focus is on Business Retention and Expansion (BR&E), Business Attraction, Entrepreneurship and Innovation (E&I) and Community Competitiveness.

In 2012, the Partnership completed 100 annual surveys of key businesses in the region; it is spearheading key workforce issues including the development of a career academy which will be a partnership between Lincoln Public Schools and Southeast Community College to provide career-based educated for juniors and seniors in the LPS District. The overall BR&E program brings together representatives of the City, the County, Lincoln Electric System, Black Hills Energy and the State of Nebraska. Most recently, the Lincoln WIB was brought into the group.

The Partnership works through a regional marketing consortium that includes regional communities, utilities and higher education institutions including the University of Nebraska.

The Partnership and the Chamber and Convention and Visitors Bureau recently launched a new community branding strategy called “Life is Right: that is targeting young executives, workers and entrepreneurs.

The E&I program has been the top priority for the Partnership over the past three years, focused on two significant programs:

• Innovation Connect brings the engineers and executives from manufacturers together with University of Nebraska researchers, promoting the use of UNL technology in Lincoln-based businesses.
• Health Care Connect was unveiled in 2012. The program asks local health care providers to identify problems they believe can be solved through new technology, and then forwards these challenges to Lincoln’s software community. After two months, a quick-pitch contest was held and the winning software proposal got a 120-day test period at the health care institution.

The Partnership sponsors numerous quick-pitch and business plan competitions, and it was a key facilitator of the area’s software angel fund, Nebraska Global, which helped launch five companies in 2011 and 2012. Nebraska Global has launched its fifth software company, Elite-Form, which is producing programs for recording, coaching and evaluating strength training. Prototypes now are being used at the University of Nebraska’s athletic department.

The Partnership helped spearhead a successful effort by the University of Nebraska to take over the former state fair grounds; $80 million is being invested on four new facilities to attract, expand and grow new companies. The first, announced in 2012, is ConAgra’s new facility and research agreement. When fully developed, the project is expected to add over 2,000 high-tech jobs to the community.

The Partnership is leading an effort to undertake a $2.5-million redevelopment of the Lincoln Airpark, a 1000-acre industrial park located on a former Air Force Base. The project is expected to generate more than 3,000 new manufacturing jobs in the city.

The largest project in the community’s history, the West Haymarket redevelopment project, was sup- ported financially by the Partnership through the passage of a bond issue that will construct a new 16,000-seat arena. Over $100 million in investments are expected to be made by concerns adjacent to the arena, which could generate over 1,000 new jobs, new retail and significant quality of life enhancements.

Cabela’s credit card operation has moved into its expanded space in northwest Lincoln. The company $7.2-million expansion is to create about 340 new jobs. Cabela’s site is part of Nebraska Technology Park.

Family-owned Duncan Aviation is undertaking a $25-million expansion including an 80,000-square-foot maintenance hangar, 95,000 square feet of office and shop space; the new facilities are scheduled to open in June 2014. Last year, Duncan Aviation opened an $11.5-million paint shop. When all of its projects are complete, Duncan will employ more than 1,300 people in the Lincoln area.

Receiving Honorable Mention Awards in the 200k-500k category are Brick City Development Corp., Commerce Lexington, Joplin Area Chamber of Commerce and Mobile Area Chamber of Commerce.

Brick City Development Corp. (BCDC) was formed in 2007 to be the primary economic development catalyst for New Jersey’s largest city, Newark. BCDC is focusing on industrial, technology and commercial growth sectors, putting New Jersey’s Urban Transit Hub Tax Credit to good use to secure capital investments of more than $50 million for large-scale renovation or new construction projects.

A key priority is revitalization and development of site in Port Newark, the nation’s third-largest port; the program has succeeded in closing a series of industrial deals covering 750,000 square feet of production space. Pacific Group Holdings, one of the world’s largest importers, brought its Northeast U.S. headquarters to Newark.

BCDC also is targeting food processing and distribution. Success stories include Bartlett Dairy, kosher food producer Manischewitz, Damascus Bakery and grocery store distributor Wakefern.

More than 90 biotech incubator start-ups are now up and running at the University Heights Science Park, a mixed-use technology park anchored by the city’s huge university cluster. A major French pharma research concern, Biotrial S.A., has purchased a 1.2-acre parcel in the tech park for a new facility.

Commerce Lexington scored a major coup in 2012 with its recruitment of Bingham McCutchen’s Global Services Center. Lexington was chosen after a site-selection competition which considered 350 cities across the U.S.

Commerce Lexington is one of three members in the Bluegrass Business Development Partnership (BBDP), which Lexington’s economic development team together the University of Kentucky and the Lexington-Fayette Urban County Government in a coordinated program which serves as a one-stop service provider linking entrepreneurs with key programs and incentives to help them jump-start business initiatives.

In May 2011, Joplin, MO was devastated by one of the worst tornados in U.S. history. In the months before the tornado hit, Joplin Area Chamber of Commerce was spear- heading two new regional development initiatives, the Joplin Regional Prosperity Initiative (JRPI) and the Joplin Region Partnership (JRP). Even during the massive recovery effort undertaken after the storm (about 560 business facilities were destroyed by the tornado), these development efforts have continued to grow and bear positive results.

In the wake of the tornado, these efforts have created more than 1,800 jobs in Joplin area. The Joplin Tomorrow Fund was deployed to distribute more than $1 million in funding to restart two companies, expand four businesses and assist a new start-up. Today, more than 500 of the businesses directly impacted by the storm have reopened, retaining more than 4,500 jobs in Joplin that had been considered “at risk.” Jasper County, which includes Joplin, has been named Missouri’s first national ACT “Career Ready Certified” community (Missouri is one of only four state’s that have made it to ACT’s second round).

In 2012, Airbus selected Mobile for its first final assembly line in North America, an investment of $600 million that is expected to create at least 1,000 direct jobs. The Airbus decision already is spurring suppliers to put down roots in Mobile, including a recent new plant announcement from Labinal.

In 2012, the Mobile Area Chamber assisted more than 1,600 entrepreneurs in developing business plans, one-on-one counseling and access funding.

Population Between 50K-200K

Operation Oswego County
Operation Oswego County (OOC) is a private, non-profit organization that works to enhance, promote and protect the business and industrial climate of Oswego County. To achieve that goal, they provide comprehensive assistance to existing businesses and those seeking to relocate, whether they are developing a business plan, looking for the best site, or searching for financing or other assistance.

OOC’s primary objectives are to help create new job opportunities, retain employment, build a broader real property tax base, diversify the economy and improve the area’s quality of life through a planned, organized and environmentally-friendly economic development process. They are guided by a board of directors made up of community-minded people from business, labor, education and government throughout Oswego County.

Coordinating and implementing special economic development initiatives allows OOC to enhance the potential to create and retain jobs. They operate three industrial parks in Oswego County—the Oswego County Industrial Park in Schroeppel, the Airport Industrial Park in Volney and the Lake Ontario Industrial Park in the city of Oswego—with other sites currently being studied for potential business parks.

The Start-up Facility in the Oswego County Industrial Park and the Business Expansion Center in the city of Oswego are designed to help non-retail, industrial and service businesses achieve significant growth and development during the first few years of business with the intention of eventually moving out of the building and into private commercial space.

OOC facilitates programs supporting entrepreneurship and small business development and growth including Women’s Network for Entrepreneurial Training, Connections Women’s Symposium, Next Great Idea Business Plan Competition and Workforce Development. The businesses obtain Minority and Women Business Enterprises state designation and are authorized to finance projects using the SBA 504 loan program which can fund up to 40 percent of fixed asset financing for eligible businesses at below market rates.

Oswego County is experiencing a growth spurt in the food processing sector. Over the last year, three companies have purchased existing facilities and are expanding their food processing ventures into Oswego County. Champlain Valley Specialty is renovating and expanding a former onion packing site into an apple processing facility. The $5.5 million project will create approximately 90 jobs. Teti Bakery USA plans to renovate a 200,000-square-foot building in Volney, using about 40,000 square feet of it as a bakery for its Italian flat breads. The Canadian company will create 63 jobs with the $5 million investment.

Our Honorable Mention Award in this category goes to Peoria Economic (AZ) Development. Peoria is taking an aggressive approach toward business attraction by creating partnerships focused on targeted industries including bioscience, health care and renewable energy.

The top 10 projects in Peoria in 2012 included a $75-million investment in Trine University Peoria Campus, a development which will create more than 1,200 direct jobs; a partnership between the city and BioAccel to create the Bioinspire Medical Device Incubator, including six start-up companies; and Genome Identification Corp.’s relocation of its forensics lab from Virginia to Peoria, where the company will continue to develop its proprietary DNA analysis technology.

Population Less Than 50K

City of Rochester (NH)
The City of Rochester has an independent and focused attraction program unique to the goals and objectives of each Targeted Industry Initiative.

The program for Advanced Manufacturing is based on input from the existing manufacturers and includes introductions and referrals as well as industry and trade publications and trade shows. Once a business has interacted with the development program, they may offer a testimonial on the www.thinkrochester.biz website, and may refer vendors and suppliers. The Retail/Hospitality strategy is based on data from the University of Shopping Centers Economic Development Program by the International Council of Shopping Centers (ICSC). The city contracted with the Buxton Company to develop a comprehensive retail assessment and analysis to support the commercial districts and the attraction of private developers and retailers. That research supports the trade shows and targeted retail and hospitality efforts of the city.

Rochester partnered with the Dukakis Center for Urban and Regional Planning at Northeastern University to complete a competitive analysis focused on infrastructure, local policy, planning and other factors established by NAIOP. This report led to infrastructure and policy improvements, and as part of this continuing emphasis, the city reorganized all the development related departments, creating the Community Development Division. The city is considering locating all of the staff in a modern and efficient “one-stop” center to improve efficiency.

The Back Office/Call Center effort involves the owners of the major office buildings and office parks in the city to do collaborative marketing and research. The Medical/Health Care program is based on a strong relationship with the city’s major medical center and other health care partners. They utilize community listening posts that included all of the major employers to discuss health care demands and anticipated impacts of changes to health care and insurance requirements.

Strategic Action items now on the agenda for Rochester’s economic development program include: Establishment of the Granite Ridge Commercial District; Expansion of the Granite State Business Park, Establishment of incentives including Tax Increment Financing, Establish a Downtown Revitalization Organization (Rochester is one of 10 NH communities Certified by the National Trust for Historic Preservation); and Implement a Business Retention and Expansion Plan.

Albany Engineered Composites and Safran USA have partnered for a $100 million state of the art aerospace composites facility on a 50-acre site in Granite Business State Park. They will add approximately 500 employees with a payroll of more than $30 million annually to produce LEAP-X engines, which incorporate green technology while retaining aviation power. The local economic development office for Rochester, NH led the Recruitment Team for the project, and persevered during a two year selection and negotiation process, managing a complex package of deliverables. The ultimate key to success was the team being small, talented and committed, and support from the State Department of Resources and Economic Development, the NH Business Finance Authority and Governor John Lynch.

Construction of a 57-acre, 330,000-square-foot marketplace that could bring up to 800 jobs in the Granite Ridge Development District is also under development. In addition, the City of Rochester recently issued a $100,000 JOB Loan (its biggest ever) to the young firm, LHR Sporting Arms, LLC so that they can begin hiring employees.

The city has created two Tax Increment Financing Districts with a third in process, to expand the municipal infrastructure to industrial and commercial zones. The city has adopted three NH Economic Revitalization Zones, offering corporate tax credits to qualifying businesses. The City has two HUB Zones through SBA, and is a New Market Tax Credits eligible community. The city is working with the NH Foreign Trade Zone Program to consider expansion of an existing zone to Rochester.

The city has a Special Downtown Business District with an expedited approval process to encourage adaptive reuse. Also in Downtown, the city has adopted the property tax credit program 79e enabling real estate investors in the District to recoup their investment over five to 13 years before a tax increase. The city created a Sign & Façade Matching Grant to encourage investment into exterior improvements, even on a small scale. Rochester also has a revolving loan fund capitalized at $600,000 from Community Development Block Grant (CDBG). This program has created more than 300 jobs over the last ten years in manufacturing, hospitality and service industries, including start-ups. City staff provides one on one support for business plans, application process and follow up.

Honorable Mention Awards in the Population Less than 50K category went to Jackson County Industrial Development Corp. and Ponca City, OK.

In April 2012, Cummins-Seymour announced it will invest $219 in a new engine plant in Jackson County, IN, creating 290 new jobs. Jackson County Industrial Development Corp., which is based in Seymour, also scored a local success with Valeo Sylvania’s decision to invest $28 million in an expansion of their Seymour facility (creating 187 new jobs) and Aisin U.S.A. Manufacturing’s announcement that it will undertake a $21-million expansion of its two Seymour facilities (114 new jobs). Additionally, Seymour Tubing is putting about $20 million into expanded workspace and new equipment.

The top five projects in Ponca City, OK in 2012 totaled $78 mil- lion in capital investment. The largest capital investment in Ponca was made by Phillips 66, which is putting $50 million into an upgrade of its alkaline units, a lift station at its South Plant and equipment upgrades throughout it complex. Mertz Manufacturing, an oil and gas concern, completed a new $12 million facility on an 80-acre site. Dorada Foods, a chicken processor and supplier to McDonald’s restaurants, is preparing to add a new production line with upgraded equipment. The project is expected to create 75 new jobs.

Two companies new to the Ponca area were drawn to the location due to new oil drilling and the general resurgence in the oil and gas sector in Oklahoma spurred by fracking operations extracting natural gas/ Dawson Geophysical brought 85 jobs to their new office in Ponca City; Crescent Services, an independent oilfield support service and management company, established a satellite office in the city.

Business Facilities congratulates all of the well-deserved winners of our 2013 Economic Development Excellence Awards.

Achievement In Targeted Incentives

When we launched our annual Economic Development Awards two years ago, there was one category for which we knew the podium would be crowded when it came time to call up the winners. Every year, there are dozens of new incentives programs to consider for our Achievement in Targeted Incentives Award. This year was no exception and, as always, it was difficult to narrow the field. Here are the four winning programs that meet our criteria for an innovative effort to snare new projects for a targeted growth sector:

The widespread use of hydraulic fracturing drilling techniques to extract an abundant supply of natural gas from shale formations in the U.S. is transforming the economies of several states, especially in the region that includes the Marcellus formation (stretching from Ohio through Pennsylvania and into upstate New York). The fracking boom itself has become a development magnet, so it shouldn’t be surprising that state economic development agencies are beginning to tailor targeted incentives related to natural gas resources.

Pennsylvania has jumped ahead of the curve with its PA Resource Manufacturing Tax Credit (PRM).

Beginning in 2017, any manufacturer purchasing natural gas containing ethane as a petrochemical feedstock at a facility within the Commonwealth could be eligible for a PRM Tax Credit equal to five cents per gallon ($2.10 per barrel) of ethane purchased and used in manufacturing ethylene, so long as the company makes a capital investment of at least $1 billion and creates the equivalent of at least 2,500 full-time jobs while constructing the facility.  This credit is effective for ethane purchased between Jan. 1, 2017 and Dec. 31, 2042.

Thanks in part to the health care reforms enacted in Washington in 2010, employment in the health care sector is expected to outpace national averages in coming years. Anticipating this, Mississippi has structured an incentive which throws down a welcome mat for health-care providers to come to the Magnolia State.

The Mississippi Health Care Industry Zone Incentive Program was enacted in 2012 to encourage health care-related businesses to locate or expand in the state. The program benefits medical services providers and other health care-related businesses, such as those engaged in medical supply, biologics, laboratory testing, medical product manufacturing/distribution and diagnostic imaging that locate in a qualified Health Care Zone in the state. Health Care Zones are defined as areas where there are three contiguous counties which have Certificates of Need for more than 375 acute care hospital beds—the business must locate or expand within a five-mile radius of a health care facility with a Certificate of Need and/or areas located within five miles of a hospital that will be constructed before July 1, 2017, with a minimal capital investment of $250 million.

Qualifying businesses are eligible to receive an accelerated, 10-year state income tax depreciation deduction, a sales tax exemption for equipment and materials purchased from the date of the project’s certification until three months after the facility is completed, and a 10-year ad valorem tax exemption.

Workforce training remains a top priority across the nation, and we’re impressed with an initiative in Florida that targets incumbent workers to enable companies to maintain their competitive edge and retain employees.

The Incumbent Worker Training Program (IWT) provides training to currently employed workers to keep Florida’s workforce competitive in a global economy and to retain existing businesses. The program is available to all Florida businesses that have been in operation for at least one year prior to application and require skills upgrade training for existing employees. Priority is given to businesses in targeted industries, Enterprise Zones, HUB Zones, Inner City Distressed areas, Rural Counties and areas, and Brownfield areas.

The program provides funding for training to existing for-profit businesses. IWT grants are structured to be flexible to meet the business’s training objectives. The business may use a public or private training provider, or may use an in-house training provider based on the nature of the training.

Through June 2012, Workforce Florida awarded 230 IWT grants totaling more than $6.1 million to help companies train and retain more than 12,000 full-time employees. Trainees’ wages have increased more than 25 percent on average within a year of completing IWT-supported training.

Funding priority in the Incumbent Worker Training Program is given to businesses with 25 or fewer employees that is located in a distressed rural area, urban inner city or Enterprise Zone. The business should be part of a targeted sector whose grant proposals represent a significant layoff-avoidance strategy.

Recent announcements from Louisiana make it clear that the Bayou State is emerging as leading high-tech hub. Louisiana is moving quickly to capitalize on this trend and maximize its impact.

The Technology Commercialization Credit and Jobs Program provides a 40 percent refundable tax credit (not to exceed $250,000) on costs related to the commercialization of Louisiana technology and a 6 percent payroll rebate for the creation of new direct jobs.

The Tax Credit Incentive is open to individuals or businesses that invest in the commercialization of Louisiana technology in Louisiana. The technology must be created by a Louisiana business and researched by a Louisiana university or college. A company must submit the completed Technology Commercialization Eligibility Application and fee. The eligibility application should include a description of technology to be commercialized; an agreement with a university; a business plan; an estimate of commercialization cost, number of new jobs, wages and health benefits created. Eligibility application is due by December 31 of the year the company is seeking tax credits.

Achievement In Business Retention

New Jersey Partnership for Action; Metro Denver Economic Dev. Corp.
We are honoring two organizations this year with our Achievement in Business Retention Award: the New Jersey Partnership for Action and Metro Denver Economic Development Corp.

When Gov. Chris Christie took office in 2010, he made it a top priority to change the negative perception of NJ’s business climate by initiating one of the most comprehensive reorganizations of statewide economic developments we’ve seen in a long time. The new structure consists of three highly-focused organizational elements, all under the umbrella of the Partnership for Action—Choose New Jersey, the New Jersey Economic Development Authority, and the Business Action Center—that provide economic development services, link companies to incentive programs and attract international investment to others.

Armed with NJ’s innovative Urban Transit Hub Tax Credit, the Partnership for Action has achieved notable success in its business retention efforts, including deals that kept Panasonic’s headquarters in the state and spurred Prudential to commit to a new HQ building in the heart of Newark.

NJ has used the forward-thinking transit hub credit as a financial tool to spur private capital investment, business development and employment by providing tax credits for businesses planning a large expansion or relocating to one of New Jersey’s designated Urban Transit Hubs.

The program offers developers, owners or tenants up to 100 percent of a qualified capital investment made within an eight period. Taxpayers may apply 10 percent of the total credit amount per year over a ten-year period against their corporate business tax, insurance premiums tax or gross income tax liability. Developers or owners must make a minimum $50 million capital investment in a single business facility, and at least 250 full-time employees must work at that facility. Tenants in a qualified business facility can represent at least $17.5 million of the capital investment in the facility, and up to three tenants may aggregate to meet the 250 employee requirement.

The Metro Denver Economic Development Corporation (Metro Denver EDC), an affiliate of the Denver Metro Chamber of Commerce, was one of the nation’s first regional economic development entities. Its partners include 70 cities, counties, and economic development organizations in the seven-county Metro Denver and two-county Northern Colorado region. Metro Denver EDC works to create a competitive environment that attracts companies and is backed by the region’s business community, with primary funding coming from private-sector investors, as well as participating cities and counties. Strategic initiatives are developed among the partners, with final decision-making authority by an investor board of directors.

From energy to aerospace, to bioscience, information technology-software and financial services, Metro Denver offers a diversified economy of viable industries and the nation’s third-most highly educated workforce. Metro Denver is first among the 50 largest metros for total private aerospace workers, with 19,600 people employed at aerospace companies. Colorado has the nation’s second-largest aerospace economy and is home to four military commands, eight major space contractors, and more than 400 aerospace companies and suppliers. Denver International Airport and three reliever airports create a solid foundation for 15,910 workers directly employed by aviation companies.

Ten Metro Denver higher education institutions with bioscience programs and numerous bioscience research assets support the region’s bioscience industry. The industry also is enhanced by the opportunities to bring together academic, research, and corporate biotechnology institutions at the 578-acre, $5-billion Fitzsimons Life Science District and the adjacent Anschutz Medical Campus.

Metro Denver’s Mountain Time Zone location makes it the largest U.S. region with one-bounce satellite uplinks, providing companies real-time connections to six of seven continents. With a broad mix of broadcasting and telecommunications firms, the region ranks sixth out of the 50 largest metros for employment concentration in this growing sector.

The integration of cleantech and Colorado’s rich energy resource base places the Metro Denver region at the forefront of energy development. The National Renewable Energy Laboratory (NREL) in Golden is the U.S. Department of Energy’s laboratory for renewable energy and energy efficiency R&D.

The Metro Denver region also is one of the few areas outside of the Northeast with a substantial financial services industry in three key market segments. A variety of trade associations and service firms support the diverse financial services industry base of more than 13,020 companies and 87,750 employees in the region.

Achievement In Downtown Revitalization

Indianapolis Downtown, Inc./Indianapolis
This year’s Achievement in Downtown Revitalization Award goes jointly to Indianapolis Downtown Inc. and the Indy Partnership for their continued success in making Indiana’s largest city a winning combination of business-friendly growth and exceptional quality of live. While progress has been notable in the past year, this award also honors a body of work that stretches back two decades.

Downtown Indianapolis has been transformed into a vibrant 24-hours-a-day, seven-days-a-week urban center over the past two decades. Businesses have taken note and are flocking to the city.

Cities across the country look to Downtown Indianapolis as a revitalization model. Since 1990, Indianapolis has invested nearly $9 billion of public and private funds equaling more than 485 projects through 2011. This is an average of more than $408 million of new investment each year, for the past 22 years.

Even in a tough economy, Downtown development momentum continues with $3 billion of new construction and renovation efforts to be completed by 2017.

More people continue to come Downtown on a regular basis. Annual attendance at major Downtown leisure attractions has increased by 83 percent since 1994 to 8 million visits. Surveys of Central Indiana residents show 79 percent of Marion County residents visited Downtown in a six-month period, up from 47 percent in 1994.

Businesses are taking note, and they are flocking to the city. Rolls Royce last year moved 2,500 employees to Downtown Indy. Economic studies show spending by the company and its employees is expected to boost the Downtown economy by $510 million each year.

Three Fortune 1000 companies’ world or regional headquarters in Downtown Indianapolis continue their commitment through growth and expansion, including WellPoint, Inc. (32 new jobs), Eli Lilly and Company (122) and Simon Property Group (573).

NCAA recently completed a $40-million, 150,000 square-feet headquarters expansion; Simon Property Group, North America’s largest real estate investment trust, WellPoint, Inc., Emmis Communications, and Urban League of Indianapolis have all opened headquarters Downtown. Other Downtown headquarters include OneAmerica Financial Partners, Inc., Indiana University Health, Denison, Inc., Farm Bureau of Indiana, Regions Bank, The Indianapolis Star, Kite Realty Group, LDI, Ltd., National Association of High School Athletics, National Bank of Indianapolis, National Wine and Spirits Inc., Reilly Industries, Inc., and The Steak N Shake Company.

Achievement In Public-Private Partnership

Buffalo Niagara Enterprise; Upstate SC Alliance; Tucson (AZ) Regional Economic Opportunities
As more and more states decide to reconfigure their economic development operations from the traditional government-run structure to a public-private model, there are more entities to choose from when we make our annual pick of the best public-private programs. This year, we’ve selected three organizations as the co-winners of our Achievement in Public-Private Partnership Award.

Buffalo Niagara Enterprise (BNE) is a nonprofit, private business development and regional marketing organization dedicated to the proposition that, as a place “where life works,” the Buffalo Niagara region is the ideal place for businesses to locate, grow, and start-up.

The Buffalo Niagara region is comprised of eight counties that form the western-most end of New York State. The region is strategically located with in 500 miles of 40 percent of the continental North American population and is a bi-national gateway for commerce, facilitating $81 billion in annual trade between Canada and the United States.

BNE’s team includes local investors, a board of directors, economic development partners and professional staff. Since it was launched in 1999 by members of the local business community, BNE has succeeded in attracting more than $2.9 billion in capital investment and created or retained over 36,000 jobs in our region.

BNE provides services that run the gamut from demographic information to tax incentives to site identification. BNE acts as the central clearinghouse for the information and supporting services required by companies interested in locating and growing in our region. It provides market data and other information services relevant to business location decisions, including economic indicators, workforce information, industrial and commercial real estate information and customized business development data.

BNE also provides professional account management services, offering potential investors in our region a one-stop shop for information on economic development, and serving as a liaison with local economic development organizations.

Formed in 2000, the Upstate South Carolina Alliance is a public/private regional economic development organization designed to market the dynamic 10-county Upstate region to the world. The 10 counties represent the commerce-rich northwestern corner of SC.

The Upstate SC Alliance’s vision is to compete for business investment globally. The Alliance’s goal is to spearhead an aggressive, innovative and comprehensive global marketing strategy to attract new investment to the Upstate region. By creating a powerful brand and image for the region, Upstate SC Alliance is confident increased opportunities will ultimately lead to greater investment, enhancing the prosperity and quality of life for the entire Upstate. Funding for the Upstate SC Alliance comes through two sources: member counties/cities and private sector business partners. The Alliance’s private sector partners number more than 170 individual companies/organizations.

Tucson Regional Economic Opportunities, Inc. (TREO) was formed in 2005 to serve as the lead economic development agency for the greater Tucson, AZ area and its surrounding regional partners. The primary goal of TREO is to facilitate export-based (non-retail) job and investment growth, in order to increase wealth and accelerate economic prosperity throughout Southern Arizona. A secondary role is to shape policy and mobilize resources to ensure the region is competitive.

TREO engages in partnerships focusing on demonstrating leadership to strengthen education, create a vibrant downtown and engage in infrastructure improvements. To serve a population approaching one million residents, TREO offers an integrated approach of programs and services that support the creation of new businesses, the expansion of existing businesses within the region, and the attraction of companies that offer high wage jobs.

Achievement In Ports/FTZs

Philadelphia Regional Port Authority; El Paso, TX Foreign Trade Zone No. 68; Port of Mobile
We’ve only been bestowing our top honor for Achievement in Ports/FTZs for two years, but we already have our first back-to-back winner. We are pleased to grant this distinction to the Philadelphia Regional Port Authority. A co-winner of our port award is the Port of Mobile. El Paso International Airport’s Foreign Trade Zone No. 68 got our top honor for FTZs.

Philadelphia, one of the oldest and most venerable ports in the United States, continues to outshine the competition as it gears up to compete for what is anticipate to be a surge in new shipping next year.

Philadelphia’s harbor often was the point of arrival for the nation’s founding fathers when they emigrated from Great Britain in the early 1700s, but the port and the City of Brotherly Love are not resting on its laurels: the port is busy preparing to meet the challenges of 21st Century commerce, including an expansion of the Panama Canal that will see huge cargo ships arriving at East Coast ports directly from Asia beginning in 2014.

PRPA has renewed its MOU for the Panama Canal Authority and it has undertaken a channel-deepening project along the 102-mile Delaware River shipping lane. We also are impressed with PRPA’s ability to maintain and grow a thriving shipping hub while undertaking these improvements, evidenced by double-digit increases in cargo tonnage at the port in the past two years, despite a very challenging national and regional economy.

FTZ No. 68 is an integral part of El Paso’s regional and international investment strategy, providing a business platform for domestic and foreign trade to prosper in the region. The City of El Paso is the Grantee and Operator of Foreign-Trade Zone No. 68; it is administered through El Paso International Airport. The zone consists of 5 regional sites totaling 3,443 acres within El Paso County.

FTZ No. 68 has been ranked first in exports among U.S. General-Purpose Zones, ITA (2010). FTZ No. 68 is the only Grantee in the nation providing compliance and training services and one of only five Grantees with an Accredited Zones Specialist. FTZ No. 68 contributed to over 1,300 direct jobs to the El Paso economy in 2012, using innovative best practices in zone management and strategic alliances.

A recent economic impact study prepared by John C. Martin Associates, LLC, a leading maritime industry economic consulting firm, estimates $22.3 billion in total economic value for Alabama from the cargo and vessel activity at the Port of Mobile; of this value, $18.7 billion is directly tied to the Alabama State Port Authority’s (ASPA) public terminals. Martin’s study calculates between 55 and 65 million tons of cargo moves through the Port of Mobile annually.

In FY (Fiscal Year) 2011, there were 141,029 jobs in Alabama related to the cargo and vessel activity at the ASPA and the private terminals at the Port of Mobile, with 127,591 total direct, indirect, induced and related user jobs directly linked to ASPA’s operations. Martin concluded that the terminals at the Port of Mobile generated $573 million in direct, induced, indirect and related user taxes paid to state and local governments by individuals and firms dependent upon the Port of Mobile cargo and ship repair activity.

Achievement In New Media

BEST USE OF VIDEO

Saratoga Economic Development Corp.
SEDC is a perennial candidate for our top video award, consistently producing eye-pleasing and informative packages promoting the Saratoga, NY region. This year’s award-winner is a video entitled SEDC 35th Anniversary—Success Without Limits. The video is posted below. We encourage everyone to take a look at it and enjoy the presentation.

Our Honorable Mention Award in the Best Use of Video category went to Lubbock Economic Development Alliance (LEDA) for their informational video entitled Lubbock Economic Development Alliance – 2012 Forecast.

Each year, LEDA hosts an Economic Forecast luncheon for select members of the Lubbock, TX community. This video was used to highlight an entire year’s worth of work not only for LEDA, but also for Visit Lubbock (the convention and visitor’s bureau) and Lubbock Sports. This year’s video was created to appeal to a wide audience with eye-catching visuals and in-depth testimonials from clients, business partners and community partners. The video is a direct reflection of how all of these entities work together to enrich, empower and strengthen the entire Lubbock community.

BEST USE OF SOCIAL MEDIA

Saratoga Economic Development Corp.
SEDC’s award-winning networking strategy is to monitor all content coming in and out of their networks to make sure it is relevant to the Saratoga NY area’s mission. The key to their success comes from the SEDC’s members being very active themselves. The organization’s president, vice president, and director of marketing all are on these social networks (especially LinkedIn) and supporting SEDC’s cause.

The SEDC LinkedIn Group is their strongest social profile, boasting 1,849 members made up of primarily C-level executives from the region and industry sectors they are trying to reach. By keeping their group’s audience limited to only qualified members, it keeps the content being exchanged relevant and supportive to the area.

The post FEATURE STORY: 2013 Economic Development Awards appeared first on Business Facilities.

Jack Rogers, Editor in Chief, Business Facilities

From the March/April 2013 issue

It’s never an easy task to stay up to date in a world where head-spinning change comes at us on a daily basis. Blink your eyes, and this morning’s newspaper is rendered obsolete by the next Twitter message that scoots across your smartphone.

The challenge to be timely and informative is even greater for a monthly magazine. But in this issue, we think we’ve met that challenge, and then some. We did it the old-fashioned way—by getting up close and personal with our most important sources.

Our Global Bio Report is the most comprehensive entry we’ve ever produced for our annual review of the high-tech sector that grows jobs in test tubes. For this year’s Bio cover story, we sent our European correspondent on a wide-ranging expedition on the continent to bring you the most important new developments from across the pond.

Here in the States, we sat down with Alabama Gov. Robert Bentley and explored how a dynamic success story unfolding down South may crown a new global leader in the automotive and aerospace sectors.

Closer to home (and to our hearts), we’ve produced a detailed look at the $60-billion recovery effort now underway in New Jersey and New York to repair the devastation wrought by Superstorm Sandy.

We hope you agree it was worth the effort. You’re invited to find a comfortable chair and start reading.

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“Drew Industries’ announcement builds on our strength as the RV capital of the world and serves as the latest proof that our convenient location, competitive tax environment and talented workforce have put Indiana on the map as a state that works for business,” said Gov. Mike Pence.

“We have experienced significant growth over the past three years,” said Jason D. Lippert, chairman and chief executive officer of Lippert Components and Kinro. “When looking to relocate our corporate headquarters, Indiana made the most sense due to its talented workforce, and because most of the RVs produced in the United States are produced in Elkhart County. We greatly appreciate the support provided to us by the state of Indiana, Elkhart County and the cities of Goshen and Elkhart and we look forward to continued growth and future success here.”

“We’re excited about Drew Industries’ plans for expansion,” said Elkhart Mayor Dick Moore. “This expansion further solidifies Elkhart’s position as the RV capital of the world. I look forward to many more future expansions like this in the community.”

The Indiana Economic Development Corporation offered Drew Industries Incorporated up to $4,300,000 in conditional tax credits and up to $200,000 in training grants based on the company’s job creation plans. The city of Elkhart and the city of Goshen will consider additional property tax abatements at the request of the Economic Development Corporation of Elkhart County.

“Elkhart County is fortunate to have Drew Industries,” said Goshen Mayor Allan Kauffman. “They have become one of the largest employers in the city of Goshen and Elkhart County. We are pleased with their ongoing commitment to investing in our community and applaud their success.”

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The flooded Whitehall subway tunnel in Manhattan.

By Donna Clapp
From the March/April 2013 issue

The aerial photos taken after Superstorm Sandy swept through the Northeast in October 2012 told the whole story. Houses and businesses cleared away, leaving swatches of sand or burned-out ruins in their wake. Not just in some small, low-lying areas, but huge tracks of land from Atlantic City, NJ to Breezy Point, NY. The tunnels leading to Manhattan filled with water, huge trees were pulled up by their roots, and the beloved boardwalks of the Jersey Shore were either pulverized or simply washed away, with some shore towns, like Belmar, NJ covered in sand for miles. For many people in the area both their homes and businesses were wiped out in a single night.

Nearly 50 fatalities were reported in New York in the days after the storm; the death toll in New Jersey did not exceed 40 thanks to heroic efforts by NJ Gov. Chris Christie and many others to successfully evacuate nearly 1 million state residents from vulnerable areas on the Garden State’s 130-mile-long coast.

In the wake of Sandy, electricity was cut off to 7 million of New Jersey’s 8.8 million residents; 136,000 families were left homeless; more than 10 million cubic yards of debris had to be cleared from public property; the Jersey Shore, which generates more than $40 billion in revenue annually for the state, was decimated.

The night after the storm passed through, Gov. Christie said, he logged onto Google Earth and took a look at his state from space.

NJ Gov. Christie

“It was dark,” the governor said.

In the weeks immediately after the storm hit, the enormous scope of the economic damage inflicted by Sandy came into focus: In November, economic research firm Moody’s Analytics put storm losses at $49.9 billion. About $30 billion of the loss came from the physical storm damage, split fairly evenly between households, businesses and public infrastructure such as rail lines, roads and water and sewage systems. The rest of Moody’s estimate comes from lost business activity. Moody’s also estimates that Sandy will be the third most costly U.S. natural disaster, trailing only the $157 billion total economic loss from Hurricane Katrina in 2005 and the $54.5 billion loss from 1992’s Hurricane Andrew (totals adjusted for inflation).

In January, HuffPost reported that Sandy damaged or destroyed 305,000 housing units and disrupted more than 265,000 businesses in New York. In NJ, 346,000 housing units were destroyed or damaged, and 190,000 businesses affected.

The good news is that the governors of NY and NJ began recovery assistance efforts immediately, and both states have poured extensive monetary and human resources into helping business move back toward a level of economic equilibrium.

NJ Mobilizes Storm Relief

Gov. Christie’s administration recently unveiled its proposed Community Development Block Grant (CDBG) Disaster Recovery Action Plan, which outlines how the State plans to utilize $1.8 billion in federal funding. This is the first phase of CDBG funds provided to NJ by the U.S. Department of Housing and Urban Development. Additional CDBG recovery funds are expected in the coming months. With this first phase of funding, NJ is focusing primarily on helping homeowners, renters, businesses and communities impacted by Superstorm Sandy.

The Christie Administration will dedicate more than half of this funding for low-to-moderate-income households, in accordance with HUD guidelines. Additionally, per HUD guidelines, 80 percent of the funds will be dedicated to the nine most heavily impacted counties in the state: Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union.

Bay Head, NJ

If approved by HUD, the Christie Administration expects that more than 20,000 homeowners, more than 5,000 renters and more than 10,000 businesses will be helped, as well as dozens of local governmental units.

“This plan puts into motion the specific actions we’ve been designing to get relief out as quickly as possible to our Sandy-impacted homeowners and businesses—to reconstruct, rehabilitate and elevate homes, and to get over hurdles for our small businesses to get up and running again,” says Gov. Christie. “These programs have been carefully, but quickly designed to fill the unmet needs faced by our residents to rebuild in a safer, more enduring way, to strengthen our impacted local economies going into this summer and to help preserve the unique character of our shore communities as we’ve known them. With this first round of funding, we will also begin an aggressive marketing effort to let people both in the region and across the country know that New Jersey is rebounding and that the Jersey Shore will be open for business this summer.”

As part of the plan, the Christie Administration is setting aside $500 million in funding for the New Jersey Economic Development Authority to administer the following activities:

• Small Business Grants of up to $50,000 to eligible businesses that sustained physical damage. A $300- million allocation will fund grants that can be used for purposes including rehabilitation, new construction, equipment, inventory, mitigation, refinancing and working capital.
• No-Interest Loans for Storm-Impacted Small Businesses ranging from $100,000 to $5 million for documented physical damage not covered by other sources. These loans are intended to assist eligible businesses that suffered physical damage, as well as spur economic revitalization by providing funding for expansion and new businesses in storm-impacted areas.
• Neighborhood And Community Revitalization Programs to provide funding of up to $10 million to help communities rebuild commercial areas with public facility improvements such as streetscapes, lighting, and sidewalks and undertake other activities critical to restoring and strengthening local economies, including micro-loans for storm-related damage and loan guarantees as well as façade and code-related improvements.
• A Tourism Marketing Campaign to promote storm-impacted businesses and shore communities by letting the nation know that New Jersey is recovering and that communities are open for business. The $25-million campaign also would encourage New Jerseyans and tourists to shop local.

In addition, the NJ Business Action Center is working to increase awareness of access to state and federal programs, attending local chamber of commerce roundtables and regional/county business development events, continuing outreach to key economic development partners and collaborating with higher education. The Economic Development Authority (EDA) is leading the Main Street Disaster Relief Program, boosting the lending capacity of community development financial institutions, and, following approval of New Jersey’s Action Plan from HUD, will work to provide grants and no-cost loans to small businesses, and launch an aggressive marketing campaign to help storm-impacted businesses and communities.

President Obama joins Gov. Christie at a post-Sandy press conference in Brigantine, NJ.

“In response to this natural disaster, New Jersey has coordinated a range of multi-agency resources to assist impacted businesses and ensure they are operational quickly,” says Lt. Gov. Kim Guadagno. “Providing a thorough and interdepartmental business recovery assistance program is another demonstration of our support for our business community and their workers. The Business Action Center can help businesses tap into a variety of resources that will help them begin to recover from this catastrophic storm.”

On top of these new programs, New Jersey has a number of incentives in place to help with the recovery. Many loans, disaster relief and other programs that are helping companies rebuild are being implemented at the local and state level. Here are some of the programs being offered by NJ to assist companies during the recovery process:

• REBUILD New Jersey: This program provides low-interest loans to businesses that are recovering from the storm. The loans range from $10,000 to $30,000 and can be used to pay for building repairs, equipment and inventory purchases, rent or mortgage payments, salary expenses and utility costs.
• Clean Energy Program: Any business owner that is recovering from Sandy and is located within one of the identified damaged areas may be eligible to receive enhanced incentives on high-efficiency equipment/ appliances under NJ’s Clean Energy Program.
• Main Street Disaster Relief: This program provides guarantees of up to $500,000 for commercial lines of credit to businesses that need access to cash to improve their damaged property while awaiting insurance proceeds.
• Storm Recovery Loan Program: Launched by UCEDC, a non-profit economic development corporation, this program is a low-interest, fast-turn-around, working capital loan program for small businesses damaged by Sandy. Small business owners can borrow up to $25,000 at 2 percent interest for five years with no collateral requirements. For larger capital needs, the program offers loans up to $250,000 with conventional interest rates and processing periods.

Preparing For NJ’s Future

There are also several initiatives in place to invest in New Jersey’s future growth. A $26-million investment by the state Department of Labor Workforce Development aims to connect those that are unemployed to Sandy recovery job opportunities through:

• Recovery4Jersey: Funds will support private sector companies focused on rebuilding New Jersey. Companies working with utilities, construction and other cleanup efforts will have access to this grant for up to $100,000.
• Skills4Jersey: This initiative focuses on upgrading the occupational, literacy and safety skills of current employees and the training of new employees.
• Opportunity4Jersey: Focused on filling the need for skills workers, this step of the initiative will fund training programs directly connected to the need of a number of employers.

Seaside Heights, NJ

Companies continue to invest in New Jersey, with recent announcements by Lockheed Martin, Pfizer, Amazon and others. In fact, the Partnership for Action continues to be very busy responding to companies expressing interest in the state. According to the state, the volume of requests has actually increased since Sandy.

This may be due to the fact that the state has been more aggressive than ever to let the world know that NJ is open for business. Choose New Jersey, Inc. launched an integrated marketing campaign titled “New Jersey. A State of Resilience” in January targeted at corporate decision-makers in key markets. Advertisements were strategically placed in Washington, D.C. during the Presidential Inauguration, New Orleans during the Super Bowl and Mardi Gras, and at the Site Selectors Guild Conference, as well as and on highway billboards throughout NJ. The ads will continue to run throughout the year in top metro areas based on alignment with New Jersey’s target industry sectors.

In addition to these advertisements, the Partnership for Action and Lt. Governor Kim Guadagno have been taking the message on the road, meeting with companies and site selectors face-to-face in New Jersey, as well as in other U.S. and international markets to make sure they know New Jersey is open for business.

Superstorm Sandy obviously put tremendous pressure on the state’s utility infrastructure. PSE&G announced a $3.9 billion, 10-year proposed infrastructure plan at the end of February that will raise many electric switching stations and substations throughout New Jersey to protect them against any future natural disasters. The plan is awaiting approval from the Board of Public Utilities.

NY’s Rapid Response

Just a few days ahead of Gov. Christie’s action plan announcement, NY Gov. Andrew M. Cuomo submitted New York State’s proposal for housing and business recovery programs to HUD to help New Yorkers devastated by Superstorm Sandy. These programs will provide billions of dollars in direct aid to individuals, homeowners, and small businesses using funding from the $60 billion Sandy Aid approved by Congress in January. The State designed the diverse array of programs to specifically target federal aid to New Yorkers most in need and ensure the affected communities, and the entire region, builds back smarter and stronger than before.

President Obama speaks with NY Gov. Cuomo in Staten Island.

“Superstorm Sandy was the worst storm to hit New York State and our region in recorded history, and its impact devastated homes and businesses across Long Island and the metro area,” says Gov. Cuomo. “This plan was put together with the input of homeowners and small businesses in affected communities, and it will serve as a blueprint to guide our housing and private sector recovery.”

Recently, HUD issued rules and regulations governing the use of the first $1.7 billion allocated to New York. The programs will be offered outside New York City (NYC will administer similar programs to meet the same needs its own CDBG-DR allocation of $1.7 billion). The Action Plan represents the spending plan only for this initial allocation of CDBG-DR funds and does not reflect the full scope of recovery activities being undertaken by NY through other state and federal programs.

“I look forward to building on the partnership we have created with Governor Cuomo to help communities in New York rebuild in a way that makes them stronger, more economically competitive and better able to withstand the next storm,” says Housing and Urban Development Secretary Shaun Donovan, who also serves as Chair of the Hurricane Rebuilding Sandy Task Force.

Gov. Cuomo has made it clear that preparing for the next storm must also include some tough decisions about which areas should be restricted from rebuilding. The NY governor wants to set aside $400 million to purchase vulnerable shore properties and restore them to uninhabited wetlands.

Breezy Point, NY

NY also proposes to use $415 million to help businesses replace or repair lost or damaged inventory and equipment, repair and mitigate damaged facilities, and cover working capital needs. The funds will be disbursed through the following programs:

• Small Business Grants—$233 million: NY will direct grant funds to help businesses, including farming and agricultural operations, and non-profits that suffered physical damage or inventory loss, as a result of Superstorm Sandy. Grants of up to $50,000 to cover eligible, uncompensated losses are proposed to enable an affected business to purchase or repair needed equipment, repair or rebuild facilities that were damaged or destroyed in the storm, and/or provide the working capital necessary to sustain and grow the business. The state may extend grants up to a total grant amount of $100,000 to businesses that suffered physical damage and are at risk of closure or significant employment loss without an increase in grant size. Special Business Mitigation Grants of up to $100,000 are also proposed to cover expenses such as installing back-up generators or elevating key equipment, to help prevent damage to these businesses in future disasters.
• Small Business Loans—$130 million: NY will create a low-interest loan program to help small businesses, including farming and agricultural operations, and non-profits that are at risk because they suffered losses of inventory, or physical assets as a result of the storm. Loans of up to $1 million may be available to help these businesses purchase or repair needed equipment, repair and rebuild facilities that were damaged or destroyed in the storm, and/or provide the working capital necessary to sustain and grow the business. Loans of higher amounts may be offered to eligible businesses that are at risk of closure or significant employment loss. Terms will be flexible, with interest rates held below 2 percent for borrowers.
• Business Consulting, Mentoring—$3 million: NY will create an online network to facilitate connections between consultants and business practitioners who are willing to provide consulting and mentoring services to small businesses hit hard by the storm. Up to $3 million will be used to build the network and support the providers of the consulting and mentoring services, including financial management, real estate, marketing, legal and industry-specific assistance.
• Coastal Fishing Industry Recovery Program—$20 million: Coastal fishing supports thousands of jobs in New York State. Superstorm Sandy caused significant damage to the fisheries along New York’s coastline, and while these fisheries will also be eligible to participate in the other small business assistance programs announced today, the industry is subject to unique considerations. To help this vital industry recover, New York State will create a targeted program to support grants of up to $50,000 available to affected businesses. These grants would cover otherwise eligible, uncompensated losses and help the industry prepare now for the upcoming fishing season.
• Seasonal Tourism Industry Recovery Program—$30 million: While these seasonal tourism businesses also will be eligible to participate in the other small business assistance programs, seasonal small businesses in coastal and riverine communities require an immediate injection of support to ensure that they can reopen and operate in time for the upcoming summer season. Accordingly, the state seeks to provide grants of up to $50,000 to eligible businesses in this industry. The grants will cover otherwise eligible, uncompensated losses and working capital needs to help them prepare for the coming season.

In addition, New York State will create a dedicated infrastructure bank to help coordinate infrastructure development and investment across the disaster region. An initial capitalization of $20 million from the first allocation of CDBG-DR funds will be combined with State funds and committed to financing eligible infrastructure projects that apply for assistance through the Bank. The Bank will benefit New York by introducing a centralized approach to infrastructure related decision making rather than a project-by-project, agency specific process. The focus of the Bank’s investments will be on projects that increase the resiliency of the area’s infrastructure to withstand future threats or provide redundancy of critical systems. It is expected that the Bank will be funded with up to $200 million through subsequent allocation rounds or such other amount to be jointly determined with HUD.

The infrastructure bank will take several steps to carry out these goals, including developing a system for prioritizing infrastructure projects and initiatives, providing a centralized approach to the state’s infrastructure planning process, managing state recovery funds for infrastructure and other sources of capital, negotiating opportunities for private sector investment in infrastructure and financing approved projects. The planning processes and expertise of the New York Works Task Force will be embedded into the Bank’s functions.

The infrastructure bank may make use of funds from several sources, including federally allocated recovery funds, diverted or created revenue, proceeds from the sale of long-term debt and credit enhancements with other state entities. In addition, the bank will work with both public and private investors to raise funds to finance infrastructure developments. An advantage that the bank will have is the ability to combine several sources of funds (e.g., Federal funds with private funds) to finance projects as effectively as possible. The bank will showcase potential projects to engage the private sector in opportunities for investment in infrastructure.

New York State also will establish the Community Reconstruction Zone (CRZ) program to facilitate community-driven planning to rebuild and revitalize severely damaged communities. The state anticipates allocating approximately $25 million from this first allocation to provide planning grants to communities that suffered community-wide impacts. Later allocations will be used to implement final CRZ plans. The planning grants will facilitate the retention of outside experts as consultants to a participating community’s planning committee, as well as the completion of critical studies to determine the key vulnerabilities and needs of the community. The state will provide information and guidance to the committees to assist them in identifying and using such outside resources effectively and efficiently. It is anticipated that the CRZ program will be funded up to $500 million, an amount to be jointly determined with HUD.

Energy-related storm damage mitigation is critical for essential services facilities including, in particular, hospitals, nursing homes, and other facilities for vulnerable populations. Many essential services facilities did not have backup power systems or had ineffective backup systems that failed during the storm. As a result of this, numerous facilities had to evacuate patients which posed a greater risk to those patients than allowing them to remain in place during the storm.

To address this critical need, New York State will establish the Resilience and Retrofit Fund. The State anticipates allocating approximately $30 million from this first allocation of CDBG-DR funding to provide credit enhancement or leverage for private sector financing of energy-related mitigation projects.

Sandy affected more than 140,000 National Grid gas customers in New York City and on Long Island. In addition to the state’s efforts, National Grid has launched a $30-million Emergency Economic and Community Redevelopment Program to complement federal, state, city, insurance and other funding sources currently available to help communities and individuals rebuild. Administered through their partner HeartShare, the program targets gas customers—encouraging job retention and promoting installation of energy-efficient equipment and systems. The program has three tier levels:

1. Funding plumbing inspections (one-time, $150 bill credit eligible to residential customers)
2. Funding heating equipment for the most vulnerable residential customers, with grants available up to $6,000
3. Supporting commercial redevelopment and rebuilding communities with grants available up to $250,000

“We remain steadfast in our commitment to keep New York State a great place to live, work and prosper,” says National Grid’s NY Jurisdiction President Ken Daly. “This is our home, and we’re 100 percent determined to help our customers and communities recover from the devastating effects of Sandy.”

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The Landmark at Eastview in Tarrytown, NY. (Photo: BioMed Realty.)

BioMed Realty Trust, Inc. will commence construction on two new buildings comprising approximately 297,000 square feet and a parking structure at The Landmark at Eastview in Tarrytown, NY, expanding the campus to approximately 1.4 million square feet.  The to-be-built laboratory and office space is 100% pre-leased for a 15-year lease term to Regeneron Pharmaceuticals, Inc. Regeneron, a fully integrated biopharmaceutical company with three marketed products in the United States, will use the new facilities for its research and development activities. BioMed Realty estimates that the new buildings will be occupied by Regeneron in late 2015.

“In March 2013, we hired our 2,000^th employee; we expect to continue to hire over the next several years, and these new buildings will support our continued growth. We are grateful to Gov. Cuomo for the New York State financial support for this newest expansion and to BioMed Realty, our longtime landlord, for structuring a mutually beneficial real estate transaction,” said Leonard S. Schleifer, M.D., Ph.D., President and Chief Executive Officer of Regeneron.

“This latest expansion of our valued, long-term relationship with Len Schleifer and his team provides BioMed Realty with yet another opportunity to deploy the most knowledgeable professionals in the life science real estate industry for build-to-suit construction of new facilities that will support Regeneron’s continued success,” said Alan D. Gold, Chairman and Chief Executive Officer of BioMed Realty.

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It takes something really extraordinary to put an entire industry into play, but that’s what may be happening to the guns and ammo sector in the U.S.

The Newtown, CT school massacre moved gun safety legislation front and center on the national and state levels. Proposed new gun-control measures, including universal background checks, an assault weapons ban and limits on high-capacity magazines are moving towards key votes in Congress.

Meanwhile, several states already have acted to tighten their gun control laws. New York Gov. Andrew Cuomo pushed through a measure in January requiring registration of an estimated one million guns already in circulation. Other provisions in the NY package require five-year renewals of handgun licenses statewide; direct mental health professionals to notify authorities of patients deemed likely to seriously hurt themselves or others; and require federal background checks for private gun sales in New York.

New York’s new law–the first new gun restrictions in the nation following the Dec. 14 massacre at Sandy Hook Elementary School in Newtown–also lowers the capacity limit of weapons magazines from 10 rounds to seven. In Colorado, Gov. John Hickenlooper bucked a strong tradition of gun ownership in the state and succeeded in enacting a landmark new law expanding background checks on gun purchases and limiting the size of ammunition clips. Several other states are moving forward with new gun restrictions, including New Jersey, Illinois and Connecticut.

Predictably, the National Rifle Association and its allies are mounting legal challenges to the new restrictions. This week, the NRA joined the New York State Rifle and Pistol Association, other sportsmen’s groups, firearms businesses and individual gun owners in a lawsuit that aims to overturn New York’s law, citing the second and 14th amendments to the U.S. Constitution.

As the national debate heats up over new gun-control legislation, some weapons manufacturers are threatening to leave inhospitable states for less-regulated locations.

Colt Manufacturing President and CEO Dennis Veilleux told Fox News that Connecticut legislators’ proposals to enact ammunition restrictions, expand an assault weapons ban, curtail bulk purchases of handguns and create a new gun offender registry risk putting Colt and its 700 employees “in the crosshairs.”

Colt has called Connecticut home for over 175 years. Veilleux made it clear the gun maker is closely watching state legislative activity, especially Gov. Dan Malloy’s promise to ban both the purchase and sale of AR-15 rifles–one of Colt’s key products. Last week, Colt sent 400 of its employees to Connecticut’s state Capitol to personally lobby against new gun-control legislation. Meanwhile, a Malloy spokesman has stated that the governor does not want gun manufacturers to flee the state. In Colt’s case, it would mean a loss of $1.7 billion for the state’s economy

In Colorado, following the passage of Gov. Hickenlooper’s bill banning the sale of magazines capable of holding more than 15 rounds, munitions magazine manufacturer Magpul announced it will shut down its operations in the state .

As in any relocation paradigm, one community’s loss is another’s gain. In Montana, they ‘re moving quickly to put out the welcome mat for gun and ammunition manufacturers from across the country. In fact, local economic development agencies are openly targeting weapons producers.

The details of this effort were reported this week by Jeremy Vannatta, Director of Outreach, Recruitment and Marketing for the Big Sky Economic Development Authority (EDA), during a joint meeting of the Executive Committees for the EDA and its sister organization, the Big Sky Economic Development Corporation (EDC).

Vannatta said that a committee has been formed and they have compiled a list of some 300 prospective companies. Sixteen of those companies already have connections to the state and are considered prime candidates.

“We do have an industry here already,” Vannatta told the Big Sky Business Journal. There are ten gun manufacturers in the state, he said, as well as companies which manufacture components for guns manufactured by other companies.

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Baker Waterfront, Hoboken, NJ

Locus Energy, a company that develops web-based performance and portfolio management software for renewable energy systems, recently moved from New York to temporary space in Hoboken while its new, permanent location in New Jersey is renovated following damage from Hurricane Sandy.

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Inside a state-of-the-art cleanroom at CNSE’s Albany NanoTech Complex

By Jenny Vickers
From the January/February 2013 issue

The semiconductor industry is responsible for producing integrated circuits or “chips” that have become one of the necessary components for our world to operate. They act as the brains of every electronic device—and are literally found everywhere—inside phones, cars, clothes, computers, home appliances, medical devices, car brakes, weapons, and more. As nanotechnology has advanced, so have the chips. Companies are now able to produce wafers with microchip circuits as small as 28 nanometers—which are barely visible to the human eye. However, with an industry garnering billions of dollars in sales and creating thousands of new jobs, there is certainly nothing “nano” about it.

In 2011, U.S. semiconductor sales alone totaled more than $150 billion, and semiconductors make our trillion dollar electronics industry possible. But the industry produces more than just financial returns. Jobs in this industry are in line with the types of employment opportunities that are sought after: stable, well-paid, semi- and high-skilled labor jobs, as well as managerial, design and engineering positions. In the U.S. semiconductor employment is the biggest job growth sector overall with employment rising nationwide by 3.7 percent to nearly a quarter of a million workers in 2012.

The semiconductor industry is a highly competitive global industry with constant pressure on chip makers to come up with something better and even cheaper than what redefined state-of-the-art only a few months before. New technologies are being developed at an unprecedented pace and our highly mobile world is changing the shape of the semiconductor industry in new ways.

“We are moving away from a market dominated by PCs and into a new era of mobility,” said Jessica Kerley, Communications Specialist for GLOBALFOUNDRIES, one of the world’s leading semiconductor manufacturers. “Over the past 10 years, computing has moved from the desktop to the laptop to the pocket. There are now almost as many cell phone subscriptions as people in the world. ‘Mobile’ is the watchword in today’s landscape.”

The industry stretches across almost every region of the country and into the majority of states from California and Texas to Florida, Massachusetts and New York. However, there are several regions which are developing semiconductor “ecosystems” in order to attract innovation-driven companies and grow the economy. These areas are not only conducting advanced semiconductor manufacturing, design and commercialization, bat are training workers for jobs that can compete on a global scale.

In Upstate NY, GLOBALFOUNDRIES is investing $6.9 billion to establish a new factory on an abandoned rocket-testing site in Malta and just this week announced it is building a new $2 billion technology development center. In Austin, TX, Samsung is already at work in a $4 billion plant expansion in Austin. In Chandler, AZ, Intel is investing more than $300 million to build a new R&D facility. And in Albuquerque, NM, Sandia’s MESA facility is in the midst of groundbreaking R&D work on semiconductor wafers, while emerging technology company Skorpios Technologies is helping spearhead the evolution of the networking industry.

UPSTATE NY’S TECH VALLEY: GLOBAL NANOTECH HUB

The semiconductor industry has been a key driver to the revitalization of upstate New York’s “Tech Valley”—a 19-county region of eastern New York State that spans from just south of Montreal to just north of New York City. Over the past decade, this region has seen billions of dollars of public and private investment, the result of which is the development of a true technology cluster in upstate New York with significant semiconductor and nanotechnology assets, including IBM, GE Global Research, Sematech and the College of Nanoscale Science and Engineering (CNSE).

The region is now a major hub for advanced semiconductor manufacturing and research, attracting big firms, their vendors and suppliers, smaller start-ups, new education and research facilities. Today, more than 1,500 high-tech companies call Tech Valley home.

Recognizing the region’s potential, Forbes recently predicted that “New York’s Tech Valley could become the Silicon Valley of Nanotech and even surpass it in economic importance.”

Aerial view of CNSE complex in Albany, NY

At the heart of this development is the Global 450 Consortium (G450C), an initiative spearheaded by Gov. Andrew Cuomo to further position New York to become the nanotech capital of the world. In September 2011, Gov. Cuomo announced the consortium, a $4.8 billion, first-of-its-kind collaboration housed at the CNSE’s Albany NanoTech complex. The G450C consists of five leading international companies that are working to create the next generation of computer chip technology: IBM, Intel, GLOBALFOUNDRIES, TSMC and Samsung.

“This unprecedented private investment in New York’s economy will create thousands of new jobs and make the state the epicenter for the next generation of computer chip technology,” said Gov. Cuomo.

IBM has pledged to invest $3.6 billion towards developing 22-nanometer and 14-nanometer process technology for computer chips. IBM will also work on a second project with Intel, TSMC, GLOBALFOUNDRIES and Samsung on moving existing 300mm (12-inch) wafer manufacturing technology to more advanced 450mm (18-inch) technology. 450mm wafers yield roughly twice the number of chips as today’s 300mm wafers, which lowers the cost of making future chips. The project is expected to create and retain nearly 7,000 jobs across New York, including 2,500 new technology jobs.

To support the project, New York State is investing $400 million in CNSE to expand and house the world’s first G450C, adding nearly 500,000 square feet of next-generation infrastructure, an additional 50,000 square feet of Class 1 capable cleanrooms, and more than 1,000 scientists, researchers and engineers from CNSE and global corporations.

CNSE is the world’s most advanced university-driven research enterprise, offering students a one-of-a-kind academic experience and providing over 300 corporate partners with access to an unmatched ecosystem for leading-edge R&D and commercialization of nanoelectronics and nanotech innovations. CNSE’s foot print spans upstate New York, including its Albany NanoTech Complex, an 800,000-square-foot, $14 billion state-of the-art megaplex.

“[CNSE] houses the most advanced clean rooms, tools and equipment, as well as next generation tools that are still several years from making it out into industry,” said Steve Janack, CNSE vice president for marketing and communications. “It is a unique environment unlike any place in the world. You have the world’s leading tech companies doing next generation innovation R&D and commercialization work here on site and doing so in an environment that allows them to mitigate the costs and accelerate their research by pooling their money.”

According to Janack, public and private investments are being leveraged to drive high tech growth opportunities across Upstate New York, including Utica, Rochester, Syracuse, and other areas. In Utica, CNSE has partnered with SUNYIT to build a facility known as Quad C (Computer Chip Commercialization Center) where companies can develop system-on-a-chip technologies. In the Rochester area, CNSE’s Smart System Technology and Commercialization Center (STC) offers state-of-the-art capabilities for MEMS fabrication and packaging.

“If you are a company that needs to be at the cutting edge, you are looking for opportunities to innovate while reigning in costs and to do so in an environment that allows you to accelerate your innovation at a rate where you can beat the competition,” said Janack. “What we are seeing is that increasingly the location of choice for the semiconductor industry to do R&D, commercialization, and advanced manufacturing is New York.”

There’s no question that New York is at the forefront of a nanotechnology revolution. Just last week, GLOBALFOUNDRIES, which is now the second largest computer chip foundry in the world, announced they are going to build a $2 billion Technology Development Center (TDC) to complement their existing computer chip fab in Malta, creating 1,000 new jobs.

The TDC will include 90,000 square feet of flexible cleanroom space that will house a variety of semiconductor development and manufacturing areas to support the transition to new technology nodes. Construction of the TDC is planned to begin in early 2013 with completion targeted for late 2014.

Fab 8 is the most advanced semiconductor foundry campus in the world. Since breaking ground on Fab 8 in 2009, the project has created approximately 2,000 new direct jobs, 9,000 new indirect jobs, and more than 10,000 new construction jobs. The company has been making significant investments in technology development at Fab 8 and today development is underway at the 20nm and 14nm technology nodes. When fully ramped, the total clean-room space will be approximately 300,000 square feet, roughly equivalent to six football fields of state-of-the-art semiconductor wafer manufacturing space, and will be capable of a total output of approximately 60,000 wafers per month.

“The TDC is expected to play a key role in the company’s strategy to develop innovative semiconductor solutions allowing customers to compete at the leading edge of technology,” said Jessica Kerley, Communications Specialist for GLOBALFOUNDRIES.

According to Kerley there were many important reasons that drove GLOBALFOUNDRIES decision to build Fab 8 in upstate NY, but the three primary considerations involve education, ecosystem and economics.

“New York’s investment in the semiconductor industry, including the incentives and tax credits for the Fab 8 project, represents a long-term economic development strategy that is working,” said Kerley. “The State of New York expects to see a return of $2.54 for every $1.00 spent on the Fab 8 project, and the State’s innovative approach to public-private partnerships is reshaping upstate NY’s Tech Valley.”

AUSTIN, TX: CHIP CAPITAL

The mobile technology revolution has swept over the nation and is helping Austin’s semiconductor industry thrive. Some of the fastest-growing tech companies in town—including Apple, Cirrus Logic, Intel, Mutual Mobile and even newcomer Visa Inc. and startup Starmount, which develops software for mobile point of sale—all have mobile aspects to their business.

“Several years ago when the semiconductor industry started declining in the U.S., it hit several areas very hard,” said Adriana Cruz, Vice President of Global Corporate Recruitment at the Austin Chamber of Commerce. “Austin was one of those along with Silicon Valley. However, mobile devices and the technology for those mobile devices have changed the semiconductor industry entirely.”

Texas is now the nation’s No. 2 semiconductor job market after California, according to an analysis of federal data by the Semiconductor Industry Association—and many of those jobs are located in the Austin area. Austin is now one of the nation’s top emerging high-tech cities, with more than 108,000 people employed by around 4,400 technology firms. Semiconductor companies in Austin include chip designers Intel, IBM, and Advanced Micro Devices (AMD) and chip manufacturers Freescale Semiconductor, Samsung and Spansion. Together, they employ thousands.

Samsung is investing more than $13 billion in its Austin, TX facility

Samsung Electronics Co., the world’s second largest chip maker, is already at work in a $4 billion plant expansion at their Austin Semiconductor facility. The expansion includes retrofitting their main fab to logic chips to supply mobile and tablet production. Samsung’s overall investment in Austin is one of the largest single investments by a foreign company in the nation and is the largest fab in the U.S. This is Samsung’s only location in the world outside of South Korea that manufactures chips for the electronics giant.

Along with new renovations, Samsung’s Austin Research Center also grew its presence with about 200 engineers dedicated to design and development of the latest technologies for mobile application processors.

“Our ongoing, multi-billion dollar investments in Austin will expand our footprint as a comprehensive semiconductor hub and demonstrate our strong commitment to manufacturing, research and development in the United States,” said Woosung Han, president of SAS.

Austin wouldn’t be a hub or a center for semiconductor development without the presence of the University of Texas (UT) at Austin, which has one of the largest and most diverse university semiconductor research programs in the world, the Microelectronics Research Center (MRC). The MRC offers opportunities for students to participate in cutting-edge R&D, while receiving the training and experience to successfully pursue a rewarding career in microelectronics. The MRC has developed programs which have been utilized by major integrated circuit manufacturers throughout the U.S.

The Optoelectronics Group at MRC has developed novel vertical-cavity, surface-emitting lasers, and radically new photodetectors. MRC has also established active research efforts in GaN and related materials, which is projected to become the dominant material for short-wavelength emitters, ultraviolet photodetectors and high-power electronics.

Austin is also home to California chipmaker Altera Corp., which signed a major lease in June 2011 in Southwest Austin to establish a new R&D center. The company chose the site largely because several major tech companies were located nearby.

Altera develops customizable chips, used mainly for equipment in communications, industrial, broadcast, computer and storage, medical and other markets. It operates in 19 counties and employs 2,600 people. Altera employs over 200 people at its R&D center in Austin.

The company took space previously occupied by GLOBALFOUNDRIES, which left Austin after it spun off from AMD about two years ago.

Altera said it needed to make an Austin footprint because of growth in the smartphone and mobile device market. The company said a result of that growth had been an increased need for back office and communication infrastructure.

“There’s been a lot of activity in Austin over the past couple of years,” said Cruz. “The economy has been incredibly strong. We are one of the areas that went into recession last and came out first.”

ALBUQUERQUE: GROUND ZERO FOR CLEAN ROOMS

Clean rooms, which ensure that dust particles don’t contaminate microchips, are integral to the semiconductor industry. Clean rooms were actually invented in Albuquerque, New Mexico in 1962 when Willis Whitfield pioneered the modern Clean Room at Sandia National Laboratories. Whitfield, who died in November 2012—the same month Sandia celebrated its 50th anniversary—changed the face of electronics, medicine and technology forever.

Mesa facility in New Mexico

Today, Sandia is a multibillion-dollar engineering and science complex that continues to pioneer groundbreaking research and innovation in Albuquerque. Sandia is still one of the nation’s major clean rooms and its $500 million Microsystems Engineering Sciences and Applications (MESA) facility is known for its groundbreaking R&D work on semiconductor wafers.

In December 2012, Sandia announced it is investing $16 million to build five regional test centers around the country for solar companies to field-test their hardware before installing multimillion-dollar photovoltaic (PV) systems on buildings. It also just completed a $17.8 million upgrade to its National Solar Thermal Test Facility in Albuquerque, and it’s preparing to commercialize new, breakthrough PV cell technology that could cut manufacturing costs, improve efficiency and provide more applications for photovoltaics in everything from clothing to Mars rovers.

Sandia is part of the Department of Energy’s ‘SunShot Initiative’ to support manufacturers and expand and accelerate installation of PV systems in the U.S. Apart from Albuquerque, centers will be located in Denver; Orlando, Florida; Burlington, Vermont; and Las Vegas.

While the regional test centers will focus on PV systems, which directly convert sunlight to electricity, Sandia’s Solar Thermal Test Facility is working to improve concentrating solar power (CSP) systems that use sunlight to heat liquids to generate steam for turbine generators.

Sandia’s Materials, Devices and Energy Technologies group is also receiving industry accolades for developing micro-scale solar cells called “solar glitter.” The cells, about the width of a human hair, can be mass manufactured with standard semiconductor micro-scale tools and technologies. The tiny, crystalline silicon cells are about 10 times thinner than conventional PV cells, yet they perform at about the same efficiency.

In addition to solar, Sandia is working to advance innovations in communications technology at its Science & Technology Park (SS&TP). Currently 33 companies and organizations and more than 2,000 employees reside in SS&TP’s 340-acre high-tech campus.

In September 2012, Sumitomo Electric Device Innovations USA Inc. (SEDU), which develops products necessary to meet the requirements of high bandwidth, high-speed optical networks, announced it is setting up shop at Sandia’s SS&TP.

SEDU has purchased technology developed by for high-speed data communications from Emcore Corp., which makes compound semiconductor-based components and subsystems for the broadband, fiber, optic, satellite and terrestrial solar power markets. Emcore has 165,000 square feet of manufacturing space at SS&TP. By acquiring Emcore’s next-generation vertical cavity surface emitting lasers and parallel optics technology, the company will continue to advance high-performance computing applications.

Outside of Sandia, emerging technology companies are helping to help spearhead the evolution of the networking industry. Albuquerque’s Skorpios Technologies, an innovator in composite silicon photonic technology, closed on a $19 million Series B round of financing in September 2011 in order to expand its infrastructure and complete the commercialization of its technology.

“We are obviously very pleased to have closed such a substantial funding round and thrilled to have the support of industry leaders from throughout the communication networking ecosystem,” said Stephen Krasulick, President and CEO of Skorpios Technologies. Ericsson, Nokia Siemens Networks and other leaders in the communications ecosystem participated in the funding. Also participating were founding investors Cottonwood Technology Fund and Sun Mountain Capital.

“Skorpios’ large scale silicon photonics technology and integration process is spearheading the evolution of the networking industry,” said Jan Haglund, President of Product Area IP & Broadband at Ericsson. “With this technology we will be able to bring even better solutions to our customers.”

Intel’s Rio Rancho facility, northwest of Albuquerque, makes up the bulk of almost all of New Mexico’s semiconductor industry. Intel began operations in New Mexico in 1980, with 25 employees on a small piece of land previously used as a sod farm. More than three decades later, Intel is the largest industrial employer in the state, with approximately 3,500 employees at its campus and an annual state economic impact of nearly $1 billion. The site is home to Fab 11X, one of Intel’s largest 300-mm semiconductor manufacturing facilities, which has undergone significant expansions since its opening. In 2007, Intel spent $1 billion to retool Fab11X to become Intel’s fourth factory for next generation, 45-nm technology; in 2009, Intel spent $2.5 billion to upgrade Fab11X to speed up deployment of 32-nm manufacturing technology.

More importantly, in 2011 New Mexico approved an update to Intel’s air quality permit which could have the potential to position the plant for the future manufacturing of new technology. Although there are no plans at the moment for expansion and upgrade, it exemplifies State and community commitments to assisting economic development projects.

“This [the permit approval] sends a message that New Mexico should be watched because of how quickly the state acted on this,” said Gary Tonjes, president, Albuquerque Economic Development.

AZ: NO. 4 IN U.S. AND RISING

Arizona, which ranks as the No. 4 state for the number of semiconductor industry jobs, is a hotbed for semiconductor activity. A bulk of the semiconductor activity takes place in Chandler, the southernmost city in metropolitan Phoenix and fourth largest city in Arizona, and Tucson, located about one hour southeast of Chandler.

Chandler has a strong semiconductor presence, the largest of which include Intel, Microchip Technology and Freescale Semiconductor. The city is helping to attract electronic companies due to the cluster of major technology employers and highly-educated, diverse workforce. In addition, Arizona State University (ASU) and the University of Arizona work closely with electronics employers to ensure a strong workforce through an effective public/private partnership. In fact, a significant portion of Intel, a world leader in computing innovation, engineers are ASU graduates.

In August 2012, Intel announced it is investing more than $300 million in the construction of a new R&D facility at its Chandler campus. The facility will create several hundred Intel jobs and nearly 1,000 construction jobs, including positions for military veterans with technical training. Intel is the world’s largest chip maker whose processors are the brains powering Apple’s sleek MacBook laptops and other computers, as well as most of the PCs around the world.

“This significant investment in R&D reflects Intel’s principal role in defining the future of technology,” said Babak Sabi, Intel vice president and director, Assembly and Test Technology Development. “The innovation set to take place within the walls of this new research center will influence technology trends for years to come, and we’re delighted to bring that distinction to the community of Chandler and the State of Arizona.”

Intel’s new Chandler facility will be built to support packaging operations for the company. Construction of the two-story, approximately 285,000-square-foot R&D facility is expected to be completed in the second half of 2013. The building is being designed to enable Leadership in Energy and Environmental Design (LEED) certification.

News of this additional investment comes as Intel forges ahead with construction of Fab 42, its new manufacturing facility in Ocotillo, a Chandler community. Upon its completion this year, Fab 42 will be the most advanced, high-volume semiconductor manufacturing facility in the world.

While more than three-fourths of Intel’s sales come from outside the U.S., Intel manufacturers three-fourths of its microprocessors in the U.S. The addition of Fab 42 will increase the company’s American manufacturing capability. The new fab is being built on the leading-edge 14-nm process, enabling Intel to manufacture more powerful and power efficient computer chips. The nanometer specification refers to the minimum dimensions of transistor technology. A nanometer is one-billionth of a meter or the size one ninety-thousandth the width of an average human hair.

Intel began operations in Chandler in 1980. With about 11,000 employees, Intel Arizona is the company’s second largest site in the U.S., and is the largest employer in Chandler. Overall, Intel’s combined investment in the new Chandler facilities will exceed $5.3 billion.

To keep up with Intel’s expansion, Air Products, an international corporation who sells gases and chemicals for industrial uses, announced in June 2012 it is doubling in size. Intel uses nitrogen gas pumped through underground pipelines from the Air Products plant. The company’s expansion includes laying a pipeline to Intel’s Ocotillo campus and adding distillation columns.

Air Products is doubling its capacity to produce nitrogen gas at this facility in Chandler, AZ.

Nitrogen has a wide range of uses, but its largest use is in the electronics industry to flush air from vacuum tubes before the tubes are sealed.

Tucson, Arizona’s second largest city, will soon be home to a new high-tech manufacturing plant. In September 2012, Integrated Technologies Groups (ITC), a California-based maker of magnetic components and related products for high-tech applications, announced it is opening a plant in Tucson that is expected to employ up to 200 people in five years. ITC, which has customers in the semiconductor, medical, energy, industrial automation and aerospace industries, has purchased a 25,000-square-foot building in Butterfield Business Park from Applied Energetics Inc., which is moving to smaller quarters nearby.

The company’s new location in Tucson will focus on product integration and testing, including clean-room assembly.

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