PMF’s existing 120,000 square foot facility in North Central Pennsylvania.

Posted by Heidi Schwartz

Gov. Corbett has announced that Pennsylvania is expanding its commitment to advance clean, alternative and renewable energy sources with the investment of more than $9.6 million in 13 projects in 11 counties.

The post Clean Energy Investments In Pennsylvania Will Create Jobs, Leverage $109 Million appeared first on Business Facilities.

Since we’ve attended the big BIO show for years, we noticed some subtle differences in this year’s confab, which wrapped up yesterday in Chicago.

It’s hard to ignore the fact that the show is getting smaller: some key state exhibitors as well as a significant number of attendees have taken it off their agendas. But while some states are dropping out, the international contingent keeps getting larger. A big new booth from Russia and a much larger presence from China were notable in Chicago (and we thank our Russian friends for installing the most comfortable couches on the show floor).

BIO also continues to be a magnet for some of our leading governors. Among the state chief executives we ran into trolling the show floor in Chicago were Missouri’s Jay Nixon (who was touting a big new deal with Monsanto), Wisconsin’s Scott Walker and Rick Perry of Texas. Gov. Perry landed on the front page of the Chicago Tribune when he suggested that Illinois businesses would be better off if they moved to the Lone Star State.

The main spotlight at BIO was reserved for Pennsylvania Gov. Tom Corbett, who was honored as BIO’s 2013 Governor of the Year in recognition of his commitment to strengthening the biotechnology and public health sectors.

Jim Greenwood, president and CEO of BIO, presented the award to Gov. Corbett, stating that his administration has “developed and promoted some of the industry’s best programs and standards, helping Pennsylvania stand tall among our nation’s greatest biotech hubs.”

“By enhancing the business environment to support the capital intensive processes of research and development as well as growing innovation companies facing significant start-up costs, Governor Corbett is creating an environment favorable to business and R&D. He’s positioning Pennsylvania as a valued leader within the industry,” Greenwood said.

“This recognition from the Biotechnology Industry Organization acknowledges the relentless effort my administration is putting forth to strengthen and further build the life sciences industry in Pennsylvania,” said Gov. Corbett. “By supporting initiatives that stimulate growth within the industry – from helping entrepreneurs quickly transform ideas into commercial products to supporting the establishment and expansion of biotech companies – we are ensuring the biotech economy will continue to grow and flourish in Pennsylvania. We are proud to continue to serve as a national leader of how to unlock the best of what the life sciences industry has to offer.”

“We at Pennsylvania Bio are thrilled that Governor Corbett’s efforts to help build a sustainable state-wide biotech community are being recognized by BIO,” said Chris Molineaux, President of Pennsylvania Bio.

“By assembling a task force of industry, academia, trade organizations and the legislature through the Life Sciences Leadership Advisory Council, Governor Corbett has shown his long-term commitment to implementing policies that enable organizations to obtain the resources required for establishing and building a strong biotech economy,” Molineaux added. “Additionally, the ‘Discovered in Pennsylvania, Developed in Pennsylvania’ program has helped local organizations establish and anchor their operations in the Commonwealth and his support for expanding access to capital has helped emerging firms make their novel advancements possible.”

Business Facilities congratulates Gov. Corbett for a job well done as BIO’s 2013 Governor of the Year.

Note: There is a poll embedded within this post, please visit the site to participate in this post’s poll.

The post Governors March Into BIO appeared first on Business Facilities.

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.

The new report, which was developed in collaboration with the Philadelphia Water Department (PWD) and funded by the Rockefeller Foundation, focuses on Philadelphia’s innovative Green City, Clean Waters program as a model for stimulating investment in natural infrastructure. It demonstrates how local municipalities and state government can potentially drive billions of dollars of private investment to modernize broken, aging stormwater systems and keep stormwater pollution out of waterways. Nearly 10 trillion gallons of polluted runoff—sometimes mixed with raw sewage—are currently dumped into local rivers, lakes, beaches, and drinking water supplies annually.

“Governments across the country must find new and innovative ways to build infrastructure that is resilient to nature’s shocks and stresses, said Dr. Judith Rodin, president of The Rockefeller Foundation. The Rockefeller Foundation is proud to support the creation of such a critical tool for local leaders to understand the best practices for leveraging private dollars to support public infrastructure projects such as stormwater system repair. It will only be through innovative partnerships across sectors that we are able to build truly resilient cities.”

“Investing in natural solutions or green infrastructure is smart and cost-effective,” said Nature Conservancy President and CEO Mark R. Tercek. “Natural infrastructure appreciates with time and provides many important benefits, including enhancing the quality of life of local neighborhoods and communities.”

NatLab’s new report, “Creating Clean Water Cash Flows,” and companion report, “Greening Vacant Lots,” validates the business case for both innovative public policy and private investment in green infrastructure by drawing from lessons from the energy efficiency finance sphere. The report provides in-depth guidance on key strategies that cities can deploy to attract private capital to green infrastructure development on private as well as public land, including: project aggregation, offsite mitigation and credit trading programs, subsidies, private-public partnerships, and transformation of vacant lands.

Natural infrastructure—such as porous pavement, green roofs, parks, roadside plantings and rain barrels—addresses stormwater pollution by capturing rain on or near where it falls, preventing the rain from carrying runoff from dirty streets to local waterways and oceans, instead storing the rain or allowing it to naturally filter back into the ground. These sustainable practices not only restore the health of local waterways, but also beautify neighborhoods, cool and cleanse the air, reduce asthma and heat-related illnesses, save on heating/cooling energy costs, boost economies and support American jobs—usually at the same or lower cost than a purely “traditional” gray infrastructure solution.

“We already know green infrastructure solves massive urban stormwater problems, but we need to pick up the pace of implementation by using the full toolkit of public investment, smarter regulations, and innovative private financing approaches,” said Larry Levine, a senior attorney in NRDC’s Water Program. “The time is ripe for partners from the private and public sector to work together towards cities that have cleaner water, greener neighborhoods, and decreased tax payer burdens,” added Alisa Valderrama, senior project finance attorney in NRDC’s Center for Market Innovation.

NatLab develops large-scale financing solutions to help cities leverage private capital for green infrastructure investments. NatLab’s work since 2012 has focused on Philadelphia, but the efforts in Philadelphia aim to shed light on a range of strategies that many cities can utilize to help draw from private investment capital to “green” their approach to stormwater management.

This first-of-its-kind resource comes opportunely, as many cities are urgently seeking financing for much-needed upgrades to their sewer and stormwater infrastructure. Additionally, this summer, the EPA considers a once-in-a-generation opportunity to expand the robust deployment of green infrastructure by reforming its national requirements designed to tackle urban runoff. A proposed clean water rule to reduce polluted runoff and enhance community livability is expected to be announced in June 2013.

Philadelphia, which is expected to deploy an estimated public investment of at least $1.67 billion over the next 25 years in stormwater retrofit projects, is leading the way on green infrastructure in America—developing policies which include innovative fee and credit systems with tremendous potential for stimulating private investment and providing attractive rates of return for project developers. The city’s flagship stormwater billing structure provides a significant discount for non-residential property owners if they manage to keep the first inch of rainfall on their property through green practices, rather than letting the stormwater runoff flow into municipal systems.

“Leveraging public-private partnerships can help transform and green our City water systems in a brilliantly cost-effective way,” said Howard Neukrug, Water Commissioner of PWD. “PWD has long been incubating and testing financial and programmatic approaches to accelerate the pace of green acre development, our community resilience and other community benefits associated with green infrastructure.  We appreciate the Rockefeller Foundation’s support and NatLab’s collaboration with the Philadelphia Water Department in advancing these potentially game-changing tools.”

While Philadelphia is a leader in deploying green infrastructure, cities around the nation are also pursuing significant green infrastructure investments:

• New York City: $1.6 billion over 20 years
• Los Angeles: approximately $200 million in the next two years
• Kansas City, Mo.: $78 million
• Portland, OR: $68 million from 2008-2013
• Detroit: $50 million over 20 years
• Cleveland: $42 million
• Seattle: $24-30 million from 2012-2018

Last year’s extreme weather events like Hurricane Sandy wreaked urban havoc, spurring cities, investors and community leaders alike, to begin to prioritize more aggressive climate change adaptation strategies. In fact, “increased stormwater runoff” and “stormwater management” were the two most-cited concerns in a recent global study released by Massachusetts Institute of Technology and ICLEI Local Governments for Sustainability, surveying over 400 cities worldwide—a majority in the U.S.—asking which climate-related threat most concerned them.

For more information about stormwater retrofits financing, see:

• New Report: Creating Private Markets for Green Stormwater Infrastructure
• NRDC’s Financing Stormwater Retrofits in Philadelphia and Beyond
• Alisa Valderrama’s blog: http://switchboard.nrdc.org/blogs/avalderrama/new_report_highlights_strategi.html

The post New Partnership Releases Guide To Stimulate Private Investment In Natural Infrastructure appeared first on Business Facilities.

The online gambit is the first of a series of initiatives that state lawmakers and casino hotels hope to enact to give AC some extra juice. This effort has taken on an added sense of urgency in the wake of this month’s announcement by the luxury resort Revel that it is filing for bankruptcy protection. The gleaming $2.6-billion Revel is the first new casino hotel to open in Atlantic City since 2003. When investors threatened to abandon the half-built luxury tower in the middle of the Recession, Gov. Christie stepped in with $261 million in tax incentives to save the project.

Hotels in Atlantic City are experimenting with in-room gambling, which enables guests to place their bets with the ease of opening a minibar or ordering an on-demand movie. Lawmakers from counties north and west of Atlantic City also are promoting the concept of “pop-up” casinos which would be authorized to operate at concerts, sporting events and county fairs.

Perhaps the largest surge in new gambling will happen if New Jersey wins its ongoing fight with the federal government over sports betting.

A federal law enacted in 1992 currently limits sports betting to four states — Oregon, Delaware, Montana and Nevada (where it’s a $2.9-billion industry). Ironically, the 1992 Professional and Amateur Sports Protection Act is also known as the Bradley Act, because it was written by then-Sen. Bill Bradley of New Jersey. Bradley, the former Knicks and Princeton basketball star, successfully argued that a broad expansion of legalized sports gambling would open the door to corruption, including the point-shaving scandals which have periodically tainted college hoops.

Bradley’s position was in line with the majority of voters in the Garden State at the time. New Jersey was slow to embrace legalized gambling: state voters rejected a referendum in 1974 which would have allowed casinos statewide; they narrowly approved a measure two years later which restricted casinos to Atlantic City. The measure passed only after small business owners in the famous beach town, once known as the Queen resort of the Atlantic Coast, traveled up and down the state convincing voters that only casinos could save their declining city.

But with casino gambling and expanded lotteries proliferating throughout the country during the past thirty years, acceptance of gaming has grown and NJ residents have sent a strong signal they’re ready to fight for a bigger share of the betting pie.

New Jersey voters overwhelmingly approved a 2011 referendum to legalize sports betting. Christie signed the law, but it was quickly challenged in court by the federal government, backed by professional and collegiate sports leagues. The lawsuit is still pending, but Christie has vowed to move ahead with sports betting this year, essentially daring the Feds to enforce the ban.

State lawmakers say sports betting is essential not only to boost AC casinos but to keep New Jersey’s struggling racetracks — an industry which supports 7,000 jobs and brings in about $110 million per year in tax revenue — from going the way of the dinosaur.

New Jersey is counting on revenue from its new Internet gambling initiative to add $180 million to the state’s casino tax-revenue kitty, currently totaling $300 million annually. Industry analysts say online wagering could fill the coffers of NJ’s casinos and racetracks with more than $1 billion in new revenue annually.

Not everyone is cheering the introduction of online gaming in NJ. The Council on Compulsive Gambling of New Jersey is warning the move will exacerbate the incidence of gambling addictions in the Garden State.

“Increased access to gambling increases the incidence of gambling addictions, and the Internet could not be more accessible. It’s going to accelerate the progression of problems for people who are already at risk,” Donald Weinbaum, the council’s director, told The New York Times.

New Jersey’s casino industry has been battered by the triple whammy of relentless expansion of competing gaming hubs in nearby Pennsylvania and Connecticut (with New York preparing to enter the fray), a deep Recession that shriveled the amount consumers are willing to spend on entertainment and, most recently, a monster superstorm that devastated the Jersey Shore.

Recognizing the high stakes if Atlantic City’s casinos continued to falter, Gov. Christie intervened in 2010 with a five-year plan to prop up AC by creating a special tourism district around the casinos and a $30-million marketing plan. State police units were deployed around boardwalk casinos to keep crime from the depressed inner city from impacting on casino business. While these efforts have helped to stabilize Atlantic City’s casinos, Gov. Christie’s embrace of online gaming signals his recognition that NJ must compete for all forms of gaming revenue: he is betting that a rising tide of wagers will lift all boats.

It will be interesting to see if the governor’s big bet on Web gambling pays off. Other industries that opened their arms to e-Commerce have experienced considerable collateral damage to their bricks-and-mortar businesses after they welcomed an onslaught of electronic purchasing.

Big Box electronics chains like Best Buy were forced to undertake slashing reductions of their in-store sales force last year after a surge in online purchases of electronic devices. The tech-gadget retailer discovered that more and more shoppers were coming to the store just to pick the brains of their sales staff and sample products, but were not opening their wallets until they got home and logged on for tax-free Internet purchases.

Will New Jersey gamblers be inspired to make the trek to Atlantic City if they can simply place their bets on smartphones from an easy chair at home?

Online gaming no doubt will create more gamblers. If it’s expanded to include sports betting, our guess is these new bettors soon will gravitate to Atlantic City’s gambling palaces and state racetracks. Gambling is an inherently social activity, and sports gamblers in particular will find it hard to resist the multi-screen, mega-sports betting parlors that will quickly be installed in AC casinos and state racetracks if the federal ban is breached. They’ll want to cheer their teams together, bragging about their winnings and making fun of losers in person, even in our strangely disconnected age of total mobile connectivity.

Then they’ll take those winnings, double down at the nearest blackjack table or horse-picking window and lose the whole wad. And they’ll come back a week later and try to win it all back. (Of course, we’re not speaking from experience here, but we’ve heard stories).

Even if the surge in visitors is modest, the tidal wave of new gaming receipts from every corner of the state will move the bottom line of New Jersey’s casino and racetrack industries from red to black. Our governor, who likes to do things in a bold way, has pushed a big pile of chips into the middle of the table. It says here the odds are good that his big bet will pay off.

Note: There is a poll embedded within this post, please visit the site to participate in this post’s poll.

The post Doubling Down in NJ appeared first on Business Facilities.

An aerial photo of the site along Lisburn Road (top) in Lower Allen Township, Cumberland County, shows preparation under way for Ahold USA’s meat-packaging facility, which is set to open in 2013 and create more than 800 jobs. The facility will prepare beef and pork for sale in the company’s Pennsylvania and Maryland Giant Food Stores. Photo/Submitted

On November 14, 2012, Pennsylvania Gov. Tom Corbett announced that Ahold USA will invest at least $63 million to build a new meat processing facility in Cumberland County and has entered into an operating agreement with Vantage Foods to run the facility and hire at least 850 new employees.

“As governor, I am committed to ushering in an economic environment that encourages private sector job growth,” Corbett said. “This announcement means 850 new jobs are coming to Central Pennsylvania. These are jobs that could have gone to another state if not for our improved business climate and economic development efforts.”

Ahold USA considered locating a state-of-the-art, USDA certified meat processing and packaging facility in several states, including Pennsylvania. The company ultimately chose to construct a 162,000-square foot facility in Lower Allen Township, Cumberland County.

Ahold USA and Vantage Foods received a funding offer from the Department of Community and Economic Development. Ahold USA will receive a $1.275 million PA First grant, which will be used towards the cost of the project. Vantage Foods was offered and is eligible to apply for $360,000 in job training assistance and up to $1.7 million in Job Creation Tax Credits.

“Ahold USA is proud to be part of the economic engine of Central Pennsylvania, bringing new jobs to the region and a new business, Vantage Foods, to the state,” Mark McGowan, Executive Vice President, Supply Chain, Ahold USA said. “This meat packaging facility is a significant investment in the future and these incentives will help us ensure its long-term success.”

“Central Pennsylvania is an ideal location for our newest U.S. facility,” Leonal Kilgore, President and Chief Operating Officer, Vantage U.S. said. “The Lower Allen Township community is well-resourced with strategic access to major distribution arteries and a vital local labor force. It is our full intention to earn our place as a good corporate citizen and to generate strong economic spin off for the community and surrounding area.”

The project was coordinated by the Governor’s Action Team, a group of economic development professionals that works directly with businesses that are considering locating or expanding in Pennsylvania.

“This is a real win for the Commonwealth of Pennsylvania and Lower Allen Township,” H. Edward Black, president of the Lower Allen Township Commissioners said. “This facility will create family sustaining jobs, contribute to a healthier local economy and is expected to attract additional industrial development to the township.”

The post Ahold USA Building New Meat Processing Facility In PA appeared first on Business Facilities.

According to a recent report, 10 million manufacturing jobs are unfilled worldwide due to a shortage of skilled workers. The report, issued by World Economic Forum and Deloitte Touche Tohmatsu in April 2012, says that economic growth and success rests with a skilled workforce.

“In the race to future prosperity, nothing will matter more than talent,” said Craig Giffi, co-author of the report. “The skills gap that exists today will not likely close in the near future, which means companies and countries that can attract, develop and retain the highest skilled talent—from scientists, researchers and engineers to technicians and skilled production workers—will come out on top.”

The lack of skilled workers is nothing new. In the U.S., about 600,000 jobs in manufacturing remain unfilled, a situation that is expected to get worse in the next three to five years as older workers retire. Worker shortages are found in skilled trades such as heavy equipment mechanics, construction, truck drivers, healthcare, and certain jobs in the IT sector to name a few.

To overcome talent shortages in the U.S., many states have launched workforce training programs that are helping workers develop the most relevant 21st century skill sets. Currently, at least 20 states offer some kind of training support. In this feature, Business Facilities has uncovered eight states that are planting the workforce seed for success—with oft emulated programs that are creating a seamless path between high school, post secondary and the workforce and helping states compete globally, create jobs, and achieve economic growth.

AIDT Builds Skilled Labor in AL
Alabama’s AIDT (Alabama Industrial Development Training) is a major force for workforce training in the state. For more than 40 years, AIDT’s “Total Workforce Delivery System” has provided thousands of skilled, motivated employees to AL industries.

AIDT offers comprehensive pre-employment selection and training, post/on-the-job training, maintenance assessments, industrial safety assessments and training, leadership development, and process improvement assessments—all specific to a company’s needs. AIDT’s workforce selection and training processes have achieved the world’s first ISO 9001:2008 certification for a state-funded workforce training program.

Technology changes constantly, evolving at an exponential rate, so AIDT has developed a new project to help train workers to keep up with high tech advancement. Called the Alabama Robotic Technology Park (RTP), the project is helping to move Alabama to the forefront of education, training and technology.

The first phase of the project, which was recently completed, consists of the Robotic Maintenance Training Center, a state-of-the-art facility where technicians will be trained to work on robotic machinery. The 52,000 square foot facility is staffed by trainers supplied by top robot builders and is home to several major robotics and automation brands.

“One of our struggles has been keeping up with the demand for multi-craft industrial maintenance techs and welders,” said Jacqueline Allen, AIDT’s Public Information Officer. “We have addressed this issue with the creation of Phase 1 of the Alabama Robotics Technology Park in North Alabama (Tanner) and the Maritime Training Center in South Alabama (Mobile).”

The RTP is a three-phase campus approach to training workers, developing technologies and integrating those technologies and workers into companies. It is a collaboration between the state of Alabama, Calhoun Community College, AIDT, and robotics industry leaders across the nation. When completed, the RTP will consist of three individual training facilities each targeted to a specific industry need. The three buildings will have an investment of approximately $73 million, including robotics equipment.

In Phase 2, the Advanced Technology Research and Development Center will feature a test facility for companies currently in the robotics manufacturing industry. The 30,000 square foot facility will be used by NASA and the U.S. Army Missile Command for the purpose of research, development and testing of leading edge robotics used for military projects and space exploration.  The structure will have appropriate infrastructure to support these activities with substantial outdoor areas for testing in a variety of environments.

In Phase 3, the Integration and Entrepreneurial Center will be a collaborative consolidation of technology involving higher education and industry.  This facility will allow companies to build and adapt robots for new industries. Start-up plants will be able to set up manufacturing lines to integrate software and equipment, test systems and train maintenance and production staff.

Alabama’s aerospace workforce is soaring after a recent announcement by leading aircraft manufacturer Airbus. In July, the company announced it will open its first U.S.-based production facility at the Brookley Aeroplex in Mobile, Alabama, creating as many as 1,000 new high-skilled jobs. Airbus is the largest export customer for the U.S. aerospace industry. Since 1990, the company has spent $127 billion with U.S. suppliers—$12 billion last year alone.

“The time is right for Airbus to expand in America,” said Fabrice Brégier, Airbus President & CEO at the announcement in Mobile. “The U.S. is the largest single-aisle aircraft market in the world—with a projected need for 4,600 aircraft over the next 20 years—and this assembly line brings us closer to our customers. Mobile is now becoming part of Airbus’ global production network, joining our successful and growing assembly lines in Hamburg, Toulouse and Tianjin.

Mobile has long been a hub for world class shipbuilding and it will now become one of just a few communities in the world capable of manufacturing high-tech, large commercial aircraft. Airbus workers in Mobile will assemble both Airbus’ existing A320 jet family as well as the A320 new engine option, or A320neo, jets.

“This project will create 1,000 stable, well-paying jobs that the people of this area need and deserve,” said Alabama Governor Robert Bentley. “Alabama has the best workforce you’ll find anywhere in the U.S.”
According to a recent news article in Mobile’s Press-Register newspaper, the training of workers will be primarily handled by an existing aircraft manufacturing and electronics training center at the Brookley Aeroplex. The training programs would be a partnership program with AIDT and Brookley’s Alabama Aviation.

Growing a High-Tech Workforce in Florida
Creating and sustaining jobs and workforce development is the central focus of Gov. Rick Scott’s economic growth strategy, including prioritizing STEM (science, technology, engineering and math) to focus Florida’s K-12 and higher education systems on producing graduates that can support a growing high-tech workforce.

Florida’s workforce and training programs consistently receive high accolades. According to the National Chamber Foundation, Florida ranks in the top eight in four of the six workforce and training measures. It ranks first in higher education efficiency and share of high school seniors taking advanced placement exams. The state ranks fourth for the efficiency of its workforce placement system and eighth in college affordability. In addition, Florida was ranked number two for workforce in a CNBC special report, “America’s Top States for Business 2011.”

Florida’s Quick Response Training and Incumbent Worker Training programs have a strong track record for helping businesses maintain a competitive talent pool. Administered by Workforce Florida, the statewide workforce investment board, both programs are nationally recognized and structured to be flexible to meet a business’s training objectives. In addition, the programs reimburse employers for a portion of their training costs.

Florida’s Quick Response Training (QRT) grants provide funding for customized training to new or expanding businesses. Through this customer-driven program, Florida is able to effectively retain and attract businesses creating new high-quality jobs. The grants are structured to be flexible and “respond quickly” to meet the business’s training objectives. As of June 2009, QRT grants have provided nearly $73 million in funds for customized training for almost 82,000 employees for just under 320 businesses and industries throughout Florida.

Florida’s Incumbent Worker Training (IWT) grants provide funding for customized training to existing for-profit businesses. Through this grant, Florida is able to effectively retain businesses and help them stay competitive by supporting skills-upgrade training for existing full-time employees. 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. Since its inception, IWT grants have helped provide customized training to more than 98,000 Floridians at more than 1,000 businesses throughout Florida.

Nearly $1 million in QRT grants have been set aside to train approximately 1,000 new and existing workers at seaport businesses as well as manufacturing, logistics and related companies aimed at retaining jobs and expanding international trade and exports in Florida. Another $600,000 in QRT grants will provide training for 600 people who work for air cargo-related businesses, again with an eye toward boosting productivity and competitiveness for Florida companies to increase the state’s export volume. In addition, Workforce Florida is investing up to $600,000 to help create new career academies to develop pipeline talent for international trade jobs and forge stronger partnerships between local workforce investment boards and Florida’s deepwater seaports. Up to 15 career academies are being created in high schools throughout that state focused on international trade and logistics and advanced manufacturing for international trade opportunities.

GA Guarantees a Quick Start
Georgia’s Quick Start training program, which is ranked among the top workforce training programs in the country, is one of the main reasons that many companies choose to set up shop in Georgia, Caterpillar, Baxter International, Outdoor Network LLC, NCR, Kia Motors, and ZF Industries have all identified the program as a key reason for picking Georgia over other states.

Quick Start was a deciding factor in Caterpillar’s decision to locate its new manufacturing plant in Georgia

Quick Start provides intensive, specified training to give companies the skilled employees they need to open quickly and run efficiently. These services come at no cost to qualified new companies or those adding new jobs or technology. The basic rule is that manufacturers can receive Quick Start benefits if they create at least 15 jobs over a 12-month period.

Created in 1967, Quick Start is the nation’s oldest state job training program. It has trained about 976,000 employees through more than 6,200 projects. During the 2011 fiscal year, Quick Start provided 168 customized projects, creating or saving 13,366 jobs.

Quick Start is a division of the Technical College System of Georgia, and some of the program’s training is held at technical colleges throughout the state. Once the program’s training is complete, companies can contract with the local technical college for ongoing support.

Quick Start was the deciding factor for Caterpillar Inc. moving its plant out of Japan and locating in Georgia. Georgia was behind several other states when it was making its decision to move to the U.S., but Quick Start help catapult Georgia to the top of the list. Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

In February 2012, the company announced it is locating a new manufacturing facility in Georgia’s Clarke and Oconee counties. The new facility will be part of Caterpillar’s Building Construction Products Division (BCP). When fully operational, the new facility will have about 1,400 employees and a total investment in Georgia of $200 million.

Working through Athens Technical College, Quick Start will train Georgia workers in the full spectrum of Caterpillar’s needs—including those working in the office and production employees.

Quick Start has helped launched dozens of successful projects in the state. In March, National Cash Register (NCR) Corporation, a leading provider of ATMs, opened a second Columbus, GA, facility. More than 300 jobs are being created at the 100,000 square-foot facility, where employees will manufacture self-service point of sale terminals for retail and hospitality applications. NCR says that part of its success in Georgia is due to Quick Start, which has tailor-made a curriculum to train workers specifically for the new NCR plant.

“They’re training our people before they even hit the factory floor,” Rick Marquardt, senior vice president for global operations, said in the article. “It’s been a great asset to us. I give those people a lot of free advertising because I believe it’s one of the best in the country.”

In April, Baxter International, Inc., a global, diversified healthcare company that produces medical devices and pharmaceuticals and biotech products, announced they are locating a new bio-pharmaceutical manufacturing facility east of Atlanta as well as plasma centers throughout Georgia that will employ approximately 1,500 people across the state with potential for hundreds more. Total investment by the company will exceed $1 billion.

To assist the company with its workforce requirements, Quick Start will build and operate a state-of-the-art biotech training center that will not only provide Baxter with a fully-customized training program that meets the company’s start-up needs, but also builds capacity and curricula within the Technical College System of Georgia for maintaining a long-term pipeline of highly skilled employees who are well-trained in bio-manufacturing operations.

In June, Outdoor Network LLC, the parent company behind an extensive network of outdoor, powersports and marine-related sites, moved its primary business units for Outdoor Network distribution and Powersports Plus to Albany, Georgia, creating 112 jobs at a new order-fulfillment center and investing $3.2 million.

Outdoor Network already operates a retail operation in Albany, known as Powersports Plus, where it sells motorcycles, all terrain vehicles, parts and provides maintenance for these. Work force training for Outdoor Network will be provided by Quick Start through Albany Technical College.

“Quick Start brought to us a level of expertise that we did not have…in warehouse management and call center operations,” said Tom D’Azevedo, Owner of Outdoor Network LLC. “They have enabled us to go to the next level. That was a very, very instrumental part in our decision to move here.”

Louisiana Sets the Standard
Lousiana’s FastStart has been Business Facilities’ top-ranked workforce development programs in the nation for the past two years. The program, which is run by Louisiana Economic Development (LED), was launched in 2008 to help attract and develop workers for new projects.

One of its first successes was helping convince Gardner Denver Inc. to not close its Thomas Products Division plant in Louisiana, but rather to expand it by moving production from Wisconsin. LED FastStart became the key factor in convincing Gardner Denver to keep its Louisiana plant open, retaining 70 jobs and adding 200 new positions.

As part of a strategic incentive package, FastStart hosted job fairs and open houses in Monroe to build interest in the new jobs, and the FastStart team traveled to Wisconsin, where they performed key business analysis—defining behavior and competency requirements for the new jobs—and documented essential steps needed for a seamless transition from Wisconsin to Louisiana.

“FastStart gave the leadership team the assurance that they would be there, they would help us through the process,” said Rick Swoboda, Director of Manufacturing.

Just months after launching the Gardner Denver project, FastStart not only helped the company complete a successful transition to Louisiana, the project paid tangible financial dividends.

“The outstanding training support provided by the State of Louisiana … has been integral to the success of the project,” Gardner Denver CEO Barry Pennypacker said, telling Wall Street analysts in a third quarter 2009 conference call that the Louisiana project contributed significantly to an increase in the company’s profit margin.

To date, FastStart has completed nearly 70 major projects for expanding companies in Louisiana. The projects touch a variety of sectors, from agribusiness to digital media software development and corporate headquarters expansions. Often, the program becomes the key reason why companies choose to expand or relocate in Louisiana rather than another state or nation.

FastStart pursues projects in various industry sectors, everything from digital media companies to enterprise zone software to aviation training and corporate headquarters relocations. According to Secretary of Louisiana Economic Development Stephen Moret, FastStart sets itself apart from other workforce training programs in several critical areas. Expanding companies in Louisiana are eligible to receive LED FastStart assistance at no cost, if they meeting the following requirements:

• Alignment with Louisiana’s economic development targets, including:
• Digital media
• Headquarters and business operations
• Service industries
• Advanced and traditional manufacturing
• Warehouse and distribution
• Research and development.
• Company commitment to create a net of at least 15 new permanent manufacturing jobs;
• Or a net of at least 50 new permanent service-related jobs.
• Each request is evaluated prior to project commencement to ensure all eligibility requirements are met.

A perfect example of FastStart’s success is none other than EA Sports, one of the leading sports entertainment brands in the world. When EA Sports partnered with LED FastStart in 2008, the interactive entertainment company sought new methods for training video game testers inside its new North American Test Center in Baton Rouge.

Through close collaboration, FastStart took EA’s traditional form of training to the next level. Understanding that potential game testers are both young and accustomed to the visual intensity and the fast action of electronic games, FastStart incorporated game play into the training.

Utilizing recognized EA game platforms, the computer-based modules developed by FastStart introduce the important instructional points as part of the “game” that the tester is “playing.” Taking full advantage of visuals, voice-over, audio cues and text, FastStart created effective training material that feels much more like “play” than “study.”

So successful were FastStart’s training modules and procedures developed for the Louisiana project, that EA incorporated them into their training operations worldwide.

“We were wowed,” said Sarah Chavez, Global Training Manager at EA. “This is totally different than anything I’ve ever seen. This is totally engaging and fascinating. We like that kind of stuff, we like the high-tech experiences that we can get both in game and now with training. FastStart has been able to provide that.”

FastStart is also supporting a new GE Capital technology center in New Orleans. GE Capital, one of the world’s largest providers of credit, announced the project in February 2012. It will create 300 new direct jobs in IT and software development.

FastStart is providing GE Capital with significant recruitment processes to attract the right talent for the company’s very specific needs. FastStart is also deploying various tools that attract and speak to the culture of New Orleans, in an effort to convince the right talent to relocate and call New Orleans home. Additionally, FastStart has a unique program that provides destination services and relocation assistance to executives and key employees who are relocating from outside the state.

In another high tech project, FastStart has partnered with Pixomondo, an international visual effects company with a global network of studios, to open a new Baton Rouge studio in June. FastStart created a digital media training studio, complete with the necessary hardware and appropriate software to train digital compositors and rotoscope artists, all at no cost to the company. The training is both comprehensive and tailored and ties back directly to Pixomondo’s specific workflow, as well as the company’s unique culture.

One of LED’s most recent projects involves creating a pipeline of manufacturing-ready workers to meet the anticipated demand for automotive and aircraft manufacturing jobs expected in the state. LED’s FastStart worker training program, which helps attract and develop workers for new projects, is working with the Louisiana Community and Technical College System to launch C4M, or “Certified for Manufacturing.” The pipeline stage of the program was just completed and is unique due to the fact that there are no textbooks—the entire curriculum is delivered via iBooks, streaming videos and hands-on simulation in conjunction with Louisiana’s two-year schools and high schools.

LED’s long-term plans are to develop a similar program for digital media, one of the fastest growing sectors of the Louisiana economy.

Here are some additional Louisiana FastStart statistics: Total projects: 67; total hours trained: 140,480; total number of unduplicated trainees: 13,500; total number of trainees: 36,150.

NH Picks Up Training Cost
New Hampshire currently offers several workforce training programs that address both individual needs and employer needs. For individuals, it offers Individual Training Accounts, On the Job Training, and the Return to Work program, which allows prospective workers to “try out” a company while still receiving unemployment benefits. It also offers employers the Job Training Fund, which provides a 1:1 match for training costs for employee.

New Hampshire employers needing new hires can utilize a program that reimburses up to 90% of a new employee’s training wages. The On-the-Job training program is one of several offered through the Office of Workforce Opportunity and can be combined with other reimbursable job training funds designed to encourage employers to hire both trainable and skilled workers.

“While New Hampshire’s unemployment rate is well below the national average, there are still many skilled workers looking for full-time employment,” said Jackie Heuser, Director of the Office of Workforce Opportunity.

The On-the-Job training opportunity provides employers with a great incentive to hire workers who are eager, trainable and available to re-enter the workforce. The training wage reimbursement applies to new hires that have been unemployed 18 weeks or longer.

The average duration of unemployment for a New Hampshire worker is currently over 16 weeks, so we know there are many highly skilled people without work through no fault of their own,” said Heuser.

The On-the-Job program provides an incentive to hire such men and women who only need some training to fit the particular job requirements. For a business with 50 or fewer employees, a 90 percent training wage reimbursement is available. For business with 51 to up to 250 workers, a training of up to 75 percent is available by utilizing the On-the-Job training program.

A key component of the program is that employers are provided a list of qualified candidates, and the employer interviews and makes the selection.

“This is a classic ‘win-win’ situation, where a New Hampshire business owner can be reimbursed while training a new employee they select for their growing company,” said Heuser. “In addition, the unemployed worker now has a job, pays taxes, and returns to the skilled workforce New Hampshire needs to compete.”

The state’s “Return to Work” program can also be used first to test possible employees skills (while the trainee collects unemployment benefits); then entered into the On The Job reimbursable training wage program; and continued employee training with New Hampshire’s very successful Job Training Fund.
The Job Training Fund grant is a great opportunity for businesses to offer skills enhancement training for their employees without bearing the full cost of the training.

This matching grant program is eligible only to private businesses located in New Hampshire and businesses intending to locate in the state and to those who pay quarterly taxes into the NH Unemployment Trust Fund. Businesses that make voluntary (reimbursable) contributions are not eligible. In addition, local, county and state political subdivisions are not eligible for the program.

Employer-based training programs provide an opportunity for the business to choose the type of training needed – not only to increase the skills of workers, but ultimately to increase the company’s production.
Although New Hampshire has been successful with workforce development it has had a few hurdles to overcome—however its successes far outweigh any challenges.

“Funding is the largest challenge, with shrinking federal dollars being allocated to States, and state-level funding minimized or eliminated,” said Michael Power of New Hampshire’s Office of Workforce Opportunity. “However, New Hampshire is a small state, which enables us to collaborate among state and local agencies to a better extent than larger, more populated areas of the country.”

For example, New Hampshire’s federally-mandated statewide workforce board is the state’s only workforce board, whereas other states have multiple levels of jurisdiction, including regional workforce boards and local workforce boards.

New Hampshire has also seen success through the Workforce Investment Act (WIA), the federal law for workforce development programs funded by the U.S. Department of Labor’s Employment & Training Administration. “Our successes include placement rates for those going through our NH Works Career Center programs, including training programs funded by WIA for eligible (economically disadvantaged or dislocated) workers,” said  Power.

PA: Ahead of the Curve
Pennsylvania has been at the leading edge of a U.S. movement to build a workforce system that is responsive and can meet the skill needs of employers, expand opportunity and security for workers and boost the competitive position of the commonwealth. Employment and training programs in Pennsylvania focus on new and innovative ways to encourage facilitation between economic development leaders, companies, educational and training communities, and workers to make them as effective as possible.

Two particular programs are major successes within the commonwealth. The Incumbent Worker Training program provides assistance to employers to help with certain expenses associated with new or upgraded skills training of full-time, permanent company employees to avert layoffs, reduce turnover, and become more competitive. The program benefits businesses and industry by assisting in the skill development of existing employees (incumbent workers) and increasing employee productivity, and the growth of the company.

The Industry Partnership (IP) program is a multi-employer collaborative effort that brings together management and labor around the common purpose of improving the competitiveness of a cluster of companies or organizations producing similar products or services and sharing similar supply chains, critical human resource needs, infrastructure requirements, business services, and/or retention/recruitment challenges.

The program concentrates attention and resources on high growth, successful clusters and/or those which face serious challenges to growth or retention. The program is a success because it brings together employers and their workers, allowing the public sector to learn significantly and qualitatively more about the opportunities and challenges facing a set of similar companies.

According to the Pennsylvania Bureau of Workforce Development Partnership, the annual wage and retention record for Pennsylvania shows that IP training participants’ wages start out, on average, 11 percent higher than individuals that do not engage in training when they switch careers within a targeted industry cluster. The wage and retention record also indicates that individuals that engage in incumbent worker training have an 11 percent higher retention rate within their industry than those individuals that do not participate in training.

In spite of a funding cut of more than $11.7 million (nearly 60 percent) from 2008 to 2009, the drop off in the number of workers trained was only 26 percent and the numbers of partnerships remained relatively even. This demonstrates the ability of the partnerships to adjust and adapt using local resources and relationships to stretch their limited dollars further.

Since 2005, the cost of training per participant has decreased by 82.8 percent. This is evidence of the strategic benefits of consortia-based training and the partnerships’ ability to identify cost-effective training providers as well as work together to negotiate high-quality, low-cost training programs that benefit a collective group of employers in the partnership. The cost per training program has decreased by 84.5 percent overall.

Pennsylvania has several job training programs to ensure that its workforce maintains its skills:

• Customized Job Training—The third largest program in the nation, the Customized Job Training program responds to employer needs by providing grant funds for specialized job training for existing or newly hired employees.
• Guaranteed Free Training Program—Through the Workforce and Economic Development Network of Pennsylvania (WEDnetPA), employees of qualified companies can receive free job training for basic entry-level skills and advanced information technology skills.
• Workforce Investment Act of 1998—A federal program that provides job training to eligible individuals for private and public sector employers.

Champions Emerge in Wheeling
In northwest suburban Chicago a vibrant manufacturing base exists. However, an aging workforce and worker shortage has created a major hurdle for area companies to overcome as they try to fill empty positions on the factory floor. Local economic development officials and leaders say that image and perception are key factors in the crisis. They say that because students aren’t aware of the key opportunities that lie in manufacturing most aren’t pursuing it as a career path.

Currently, the state has 80,000 manufacturing jobs that need to be filled—jobs that are, according to Terry M. Iverson of Iverson & Company, filled with “extreme technology, advanced innovations and exhilarating and good paying careers available for the next generation.”

To help change the public perception of manufacturing, Mr. Iverson created a new program called Champion Now, which is helping prepare young workers for a 21st century economy.
“Together, with the power of the industry supporting us, we will reach the next generation with exciting educational films that demonstrate how manufacturing is the foundation of our North American economy and offers exhilarating career choices,” says Mr. Iverson.

The Champion Now program, an acronym that stands for “Change How American Manufacturing is Perceived In Our Nation,” has created the Edge Factor Show, a High Definition film series that features real life manufacturing stories and shows the manufactures as the heroes. Edge Factor also includes a design contest with a reality show twist. Students submit designs and watch as their design idea transforms into a 3D model on our Reality Redesigned series. For more information on this program, visit www.championnow.org.

The post FEATURE STORY: Nothing Matters More Than Talent appeared first on Business Facilities.

By Jenny Vickers

When it comes to the biotech sector, the bloom is off the rose. Prior to the global financial meltdown in 2008, venture capitalists were placing big bets on a wide range of biotech initiatives—including startups in biomed, agricultural biotech, biofuels and industrial biotech—with the conventional wisdom nearly unanimous that these initiatives could leap from the labs to the marketplace and scale up quickly. But as the gloom of the Great Recession permeated, seed money for biotech became scarce and competition for a dwindling pool of projects became fierce. One benchmark puts this new landscape in bold relief: foreign direct investment in the biotechnology sector dropped by 20 percent in 2011.

Although the recovery appears to be solidifying (at least in the U.S.), the pre-collapse excitement that heralded biotech as a hot growth sector has given way to a more realistic assessment that biotech hubs will have to be built the old-fashioned way, with long-term planning and comprehensive strategies that do not expect instant success.

Industry analysts still believe there will be a hefty return in new jobs and revenues for those who stay the course and build a firm foundation for tomorrow’s biotech bonanza. In this year’s annual report on the state of biotech and pharmaceuticals, we zero in on several locations that are well positioned for future success.

Florida: Bastion Of Biotech
Over the past decade, Florida has established itself as one of the top locations for biopharmaceuticals innovation and industry growth. The state also is home to some of the nation’s most highly regarded bioscience research centers and several major hubs of cutting-edge science and business development, including Scripps Florida, the Sanford-Burnham Medical Research Institute, Torrey Pines Institute for Molecular Studies and the Max Planck Florida Institute.

Florida is currently the 2nd-fastest growing biotech industry in the U.S. According to the Florida BioDatabase, a freely accessible public database that tracks the biotechnology industry in Florida and is published by the University of Florida’s Sid Martin Biotechnology Incubator, the number of Florida bioscience companies grew 42 percent to a current total of 193 from 136 in 2008. Biotech companies tracked by the BioDatabase are characterized by having a true research and development core that helps fuel the innovation of new products for Florida’s growing biomed industry.

“Florida is on track to become a strong player in the biotechnology industry,” said Dr. Michael Schmitt, editor of the Florida BioDatabase. “Our state has the key ingredients for growth including a strong research base and an increasing trend in venture capital funding.”

Overall, the percentage growth of venture capital funding for the biomedical industry in Florida outpaced the national average with investment dollars in 2011 rising by 210 percent over 2010 to $87 million.

Most of Florida’s bioscience growth is centered in the central and southern regions. The Lake Nona Medical City is under construction in Central Florida. Some tenants include the University of Central Florida College of Medicine, the Sanford-Burnham Medical Research Institute at Lake Nona and the Orlando VA Medical Center. Construction is also under way on the University of South Florida’s Center for Advanced Medical Learning and Simulation in the Tampa Central Business District. In South Florida, the new science and technology park at the University of Miami is helping to shape a strong innovation community.

Outside of new development projects, existing bioscience companies are expanding across the state.

In April 2012, Arthrex, Inc. broke ground at its new 190,000-square-foot manufacturing plant in Collier County. Arthrex is a manufacturing company that makes orthopaedic surgical supplies. More than 3,000 such products have been developed by Arthrex and are marketed worldwide. The company also provides educational services for orthopaedic surgeons and their patients.

Collier County commissioners gave Arthrex the green light in January, offering the company more than $2 million in financial incentives over the next five years if the company creates 600 new jobs. The commissioners are excited one of the fastest-growing companies in the nation has decided to stay and grow in Collier County. In 2011, Arthrex was named to Inc. magazine’s prestigious Inc. 500|5000 list, an exclusive ranking of the nation’s fastest-growing private companies.

In April 2012, the Metro Orlando Economic Development Commission announced that Orlando-based AcariaHealth Inc. is receiving a $400,000 tax refund to create up to 80 new jobs in the next three years. AcariaHealth is a specialty pharmacy focused on handling the medication needs for patients with hemophilia, hepatitis C, Crohn’s disease, multiple sclerosis and rheumatoid arthritis.

The expansion includes a $600,000, 20,000-square-foot addition to its existing facility. The company also has plans to bring a distribution center to Orlando. The new jobs will pay an average of $47,000 annually, adding $3.8 million to the local economy.

In the same month, medical technologies company Medtronic Inc. announced it will soon break ground on a $14-million expansion project in Jacksonville, FL. The project includes a new 75,000-square-foot building to expand its surgical technologies division headquarters in Jacksonville. Medtronic expects to create 175 new full-time jobs by the end of 2015. Medtronic has nearly 700 employees in Jacksonville. The surgical technologies business designs and manufactures products for the diagnosis and treatment of ear, nose and throat diseases and cranial, spinal,  and neurologic conditions.

Incentives from the city and state were approved in August 2011. Medtronic, based in Minneapolis, reported overall revenue of $15.9 billion in fiscal year 2011 with surgical technologies making up about 8 percent of that revenue.

Palm Beach County is home to a thriving biotechnology and life sciences cluster with more than 4,180 people employed in life sciences and related industries, more than 115 companies primarily engaged in R&D or manufacture of biotechnologies, medical devices, and pharmaceuticals, and 50 additional companies primarily engaged in the environmental and biological sciences. The county is home to two world renowned biomedical institutes—Scripps Florida and Max Planck Florida Institute.

Scripps Florida is home to the Translational Research Institute, a collection of scientific centers employing cutting-edge technologies to speed development of new therapies and products, translating breakthroughs into practical applications.

Scripps Florida is a state-of-the-art biomedical research facility located in Jupiter, FL. Using the latest cutting-edge technologies, researchers at Scripps focus on basic biomedical research and drug discovery. As of January 2011, more than 400 faculty members, scientific, technical and administrative staff were employed at the 350,000-square-foot campus, which is comprised of three research buildings. By 2014, the campus is expected to house more than 60 faculty and 550 total staff.

Scripps Florida also is home to the Translational Research Institute, a collection of scientific centers employing cutting-edge technologies to speed development of new therapies and products, in essence, beginning the important process of “translating” breakthrough scientific discoveries into practical applications.

The Max Planck Florida Institute, located at Florida Atlantic University’s McArthur Campus, is the first Institute the German-based Max Planck Society has established in the U.S. The startup costs of the Institute were supported by $86.9 million from Palm Beach County and $94 million from the state’s Innovation Incentive Fund. The Institute, which focuses on brain function and neural circuits, adds a strong international component to Palm Beach County’s life sciences cluster and to the general economic base.

BioFlorida, the state’s trade organization for the life sciences, has been working to ensure that Palm Beach County remains an epicenter for the state’s biosciences industry. BioFlorida joins Scripps and Max Planck in forming the Life Tech Initiative, a consortium of all public and private universities along the I-95 corridor from Miami to Port St. Lucie, involving academia, research institutes and the biotechnology industry in southeast Florida.

The Initiative provides an overarching umbrella for the entire Southeast region. The consortium also includes the Business Development Board of Palm Beach County (BDB); Florida Atlantic University; Palm Beach State College; the Research Park at Florida Atlantic University; Florida International University; and the other public universities, colleges and economic development organizations in Southeast Florida.

BioFlorida also has partnered with the Life Science Technology HUB (LST HUB), which supports the life sciences and technology industries in Palm Beach County, to extend its reach across the state.

The LST HUB was created with the intent to grow the cluster specifically in Palm Beach County, modeled on a San Diego organization credited with the growth of the high-tech and life science cluster there. LST HUB is gathering resources—investors, business and marketing professionals—and integrating them with life science and technology professionals, students and educators. The goal is creating an ecosystem for the growth of new companies and jobs.

Indian River State College is at the center of a regional effort to boost interest and achievement in science, technology, engineering and math. IRSC has launched a wide range of initiatives that foster scientific aspiration in these STEM disciplines. The College’s state-of-the-art science laboratories are utilized by an increasing number of students each semester to develop the skills they need for a career in biotechnology—skills sought by the biomedical research firms moving here. In fact, an IRSC chemistry student Jason Fenwick was one of the first laboratory technicians hired by Torrey Pines Institute for Molecular Studies when the California firm expanded to this area.

Now under construction, IRSC’s STEM Center at the St. Lucie West Campus will serve as a feeder program, providing skilled employees for nearby research institutes.

The three-story facility will provide much-needed classroom space and sophisticated teaching laboratories in genetics, chemistry, ecology, molecular science, botany and microbiology. The focus will be on linking math and science concepts to real-world applications.

Indiana: 100 Years & Counting
Indiana has been a center of innovation in the life sciences, pharmaceutical and medical device industries for more than a century. Driven by intellectual capital, public support, academic partnerships, workforce excellence and business and industry collaborations, Indiana has established itself as one of the nation’s leading life sciences states.

Indiana is home to more than 500 life sciences companies and is one of the nation’s top four life sciences leaders in terms of the number and concentration of life sciences jobs. Indiana has the second highest concentration of biopharmaceutical jobs in the nation. The state’s pharmaceutical industry ranks fifth in the nation in terms of sales, shipments, receipts and revenues. In addition, Indiana is among the top 10 states for medical technology and is one of only five U.S. states to specialize in three of four key biosciences areas: agricultural feedstock and chemicals, drugs and pharmaceuticals and medical devices and equipment.

Pharmaceutical and medical device industry leaders like Eli Lilly and Company, Zimmer, Biomet and DePuy Orthopedics are based in Indiana. The state also is home to WellPoint, the nation’s largest health benefits company; Roche Diagnostics, the top medical diagnostics company in the world; and the internationally recognized Regenstrief Institute, home of the largest coded, continuously operated electronic medical records system in the U.S.

Indiana’s growing network of 28 business incubators and 19 Certified Technology Parks (CTPs) are helping to encourage the growth of startup life sciences and high-technology companies in Indiana. The CTP program was formed to create special tax districts to encourage the development of technology incubators; to leverage the intellectual and equipment resources of nearby universities; and to attract talented technology entrepreneurs.

Under the program, 100 percent of state income and sales taxes generated by businesses located in technology parks are used to finance the technical, environmental and capital improvement projects for public use areas within the park.

Indiana’s strength in life sciences, biopharma and medical technology is helping to attract top leaders in the medical fields and innovation.

In April 2012, medical-device maker Cook Group announced its purchase of General BioTechnology, an Indianapolis company that specializes in cell and tissue processing and cryopreservation technologies. Cryopreservation is low-temperature storage of a living organism so it can later be revived and restored.

Bloomington-based Cook didn’t disclose what it paid to acquire the company, which also runs an umbilical cord blood and tissue bank for individuals and a reproductive tissue bank.

Birck Nanotechnology Center, Purdue University Discovery Park

In February 2012, BASi announced the opening of a new Discovery Center, located at its corporate headquarters in the Purdue Research Park of West Lafayette. The purpose-built facility is designed to provide pharmaceutical and biotech companies with the information they need to evaluate new compounds in the earliest stages of development.

The lab features the Culex® automated in vivo sampling system that provides multiple streams of data from stress-reduced subjects and allows for rapid decisions based on more accurate information.

“Our unique in vivo discovery service offers a high value option for our discovery customers in generating tight, reliable data, which makes for better predictive decisions,” said John Devine, vice president of non-clinical services.

The facility has 4,800 square feet of dedicated research space and state-of-the-art environmental systems to maintain and monitor lab conditions. The discovery center is part of BASi’s plan to expand its capabilities in drug discovery to meet client demand. The company also renovated a building at its preclinical toxicology site in Evansville, Ind. The improvements provide scientists with more flexibility and space to complete multiple studies.

In January 2012, California-based NantWorks, LLC, announced plans to locate a new pharmaceutical manufacturing plant in Terre Haute, IN, creating up to 234 new jobs by 2016.

The pharmaceutical company plans to invest $85.5 million to redevelop the former Pfizer facility on approximately 210 acres on the south side of Terre Haute. The new manufacturing plant, which is expected to be operational in 2015, will produce critical care injectable and oncological drugs.

“With the strength of our life sciences industry and a first-class work force, it’s no surprise that innovative companies from high-tax, business-hostile states continue to choose Indiana as the home for new investment,” said Indiana Gov. Mitch Daniels. “With its established executive leadership and groundbreaking pharmaceutical research, NantWorks has all the right ingredients to flourish in the Hoosier State.”

Dr. Patrick Soon-Shiong, chairman and chief executive officer of NantWorks, has previously developed two pharmaceutical companies addressing the unmet needs of critically ill patients. His injectable drug company APP was the nation’s only safe source of heparin during a supply crisis in 2008 and his biopharmaceutical company Abraxis Bioscience developed the world’s first protein nanoparticle cancer drug for breast cancer. Soon-Shiong sold these companies in 2008 and 2010, raising several billion dollars to pursue his vision of personalized medicine.

The Indiana Economic Development Corporation offered NantWorks, LLC up to $2 million in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. Vigo County will consider additional property tax abatement at the request of the Terre Haute Economic Development Corp.

KBA Makes Big Plans in KS
Bioscience is among the fastest-growing sectors of the Kansas economy—with good reason. Visionary leaders in Kansas have created a welcoming environment for bioscience researchers, entrepreneurs and industry leaders.

The Kansas legislature established the Kansas Bioscience Authority (KBA) in 2004 to help grow the bioscience sector into a pillar of the Kansas economy. The authority makes investments in sectors in which Kansas has established leadership and expertise including animal health, human health, bioenergy, biomaterials and plant biology.

In 2011 alone, KBA investments helped drive more than $200 million into the Kansas economy. Since its inception in 2004, KBA investments have fueled the state’s economy by more than $800 million. This includes 1,347 new bioscience jobs created by Kansas companies and universities, generating $354 million in annualized wages.

Kansas Bioscience Park Venture Accelerator

To provide bioscience entrepreneurs a bridge from innovation to success, the Venture Accelerator incubator at the Kansas Bioscience Park opened for business last year.

The 38,723-square foot building is customized with office space, wet labs and shared equipment designed to help startups get to market efficiently and successfully. The award-winning design and green features helped the facility earn gold LEED certification. The Venture Accelerator is located within the Kansas Bioscience Park and is home to eight resident companies advancing drug development, medical devices, animal health technologies and more. KBA staff also resides in the Venture Accelerator, offering tenants ready access to KBA expertise and hands-on business assistance.

The Kansas Bioscience Park in suburban Kansas City is a unique research and office park with a powerful mix of deep academic research resources, industrial strength and personalized business assistance. Located in the heart of the Kansas City Animal Health Corridor, which encompasses one-third of the world’s $19 billion animal health industry, 42 acres of land will be granted to qualifying bioscience companies to build facilities within the park.

The Kansas State University Innovation Campus is located within the park itself, while the tremendous research capabilities of the University of Kansas and the University of Kansas Medical Center are minutes away.

Bevy of Incentives Builds Biotech in Pennsylvania
Pennsylvania is a national leader in the life science industry and home to a cohesive community that unites biotechnology, medical device and diagnostics, pharmaceuticals, research institutions and holds significant financial strength. The Pennsylvania Department of Community & Economic Development (DCED) has played a significant role in helping to grow its biotech sector through the following initiatives:

• Increasing the R&D Tax Credit from $40 million to $55 million last fiscal year and level funding of $55 million proposed for this year.
• Supporting early stage bioscience companies access to capital through support of the Life Sciences Greenhouses and Ben Franklin Technology Partners.
• Expanding access to venture capital across the state with recent investments of $8 million into several funds that will leverage between $24 and $60 million for investment.
• Directing recent U.S. Treasury funding provided to the commonwealth to support bioscience and early stage companies—$5 million is earmarked for that effort.
• Opening global markets for Pennsylvania’s life science industry by participating and supporting companies at trade shows in the U.S. and around the world. DCED will be promoting PA products at the upcoming Medical Design and Manufacturing Show in Philadelphia this month.
• Accelerating the growth of emerging firms through the funding of the Keystone Innovation Network that will support our entrepreneurs and university startup companies across the state.
• The current budget also “evergreened” the Tobacco Health Venture funds so in the future it can be reinvested into Pennsylvania bioscience venture capital

Pennsylvania is home to one of the largest, urban research parks in the U.S. Located in Philadelphia, the University City Science Center accelerates technology commercialization, regional economic development and the market availability of life-enhancing scientific breakthroughs by bringing together innovations, scientists, entrepreneurs, funding, laboratory facilities and business services. Graduate organizations and current residents of the Science Center’s Port business incubators have created more than 15,000 jobs that remain in the Greater Philadelphia region today and contribute more than $9 billion to the regional economy annually.

A biotech company formed out of the University of Pennsylvania with the support of the Science Center is one of two new companies to locate in the Port Business Incubator in Philadelphia. Nelum Sciences, a spin out of the University of Pennsylvania’s School of Engineering, is occupying lab space while Oxo Pharma, headquartered in France, has established its U.S. presence in the Bullpen, the Port’s newest co-working space.

With its headquarters in Paris and operations in Lyon, France, as well as a recently opened office in Shanghai, Oxo Pharma is an international consulting firm supporting the life science industry by helping to improve performance, quality and regulatory compliance. The firm plans to increase customer support in major markets with plans to open offices in Benelux and Morocco within the next few years.

Oxo Pharma is the latest participant in the Science Center’s Global Soft Landing program, which fosters international business in the U.S. by helping global companies establish a foothold in local life sciences and IT markets.

Chester County, Pennsylvania will soon be home to Endo Pharmaceuticals, a U.S.-based, specialty healthcare solutions company. In January 2012, Pennsylvania Gov. Tom Corbett cut the ribbon for the future site of Endo’s corporate headquarters. At the event, the Governor praised the company for its continued commitment to the region and its plans to create more than 150 high-paying jobs.

“Here in Pennsylvania we are employing the kind of creative cooperation that says yes to opportunity. And today we are cutting the ribbon on a new headquarters,” said Gov. Corbett. “This investment in the future means we have saved 475 existing jobs and will create another 154 positions over the next three years.”

Endo Pharmaceuticals operates in three key business segments: branded pharmaceuticals, generics and devices and services, delivering a suite of complementary products and services to meet the needs of patients in areas such as pain management, pelvic health, urology, endocrinology and oncology.

Endo entered into a 10-year lease for approximately 315,000 square-feet of office space which will house their corporate headquarters. The company will retain their 475 existing employees and 100 contractors while also creating 154 new positions to be filled over the next three years.

Texas Biotech Packs a $75-billion Economic Wallop
Texas has a dynamic biotechnology marketplace with an estimated annual economic impact of $75 billion. A significant number of top global biotechnology companies have Texas locations, underscoring the state’s vitality in this industry. In 2009, one out of every 19 U.S. biotechnology employees worked in Texas while one out of every 15 U.S. biotechnology establishments was located in Texas.

Currently, the Lone Star state is home to more than 3,500 firms involved in biotechnology-related manufacturing, research or testing. More than 108,600 workers are employed in the biotech sector in Texas at an average annual salary of over $74,800.

Although biotech industry growth takes place statewide, there has been a huge development push in San Antonio and Austin.

San Antonio is seeking to become a bigger player in health care and the biosciences, nationally and internationally, and several new announcements could help give the Alamo City a leg up.

In May 2012, the Texas Technology Development Center (T3DC), which seeks to identify promising tech startup companies and provide them with early-state seed funding, announced plans to invest $100,000 each in two biotech startup companies: OtoMetrix Technologies and Rapa Holdings Inc.

OtoMetrix has a patent on a medical device that it says will make diagnosing ear infections in pediatric patients quicker and more accurate. The company is currently completing work on a prototype of the device and hopes to begin clinical trials soon.

Rapa Holdings Inc. is working to bring a promising anti-cancer agent known as rapamycin to market. Rapamycin is a synthetic compound originally derived from organic materials found on Easter Island in the 1960s. During the 1990s, it was commonly used as an anti-organ rejection drug. But today, researchers believe it has qualities that would be useful in the treatment of age-related diseases, such as cancer and Alzheimer’s.

“We think these are both very promising startups and this gives us equity in those companies,” said Randy Goldsmith, president of T3DC. “They both represent solid growth opportunities for San Antonio.”

In April 2012, four of San Antonio’s large research institutions announced they have formed a new partnership to develop new vaccines. The new partnership, called the San Antonio Vaccine Development Center, could have almost $1 million in new funds to spur scientists in new directions, said Kenneth Trevett, president of the Texas Biomedical Research Institute.

The group, whose members include the University of Texas Health Science Center, University of Texas at San Antonio (UTSA) and the Southwest Research Institute, has raised $600,000 in private donations —including a corporate gift from USAA and a personal donation from NuStar Energy LP Chairman Bill Greehey. With that, they’ve applied another $300,000 from the Texas Research Incentive Program, a state fund that provides a 50 percent match for private gifts of up to $1 million to emerging research universities such as UTSA.

Initially, four $50,000 grants will be awarded to researchers from among the four partners, with priority given to collaborations between two or more of the institutions.

“The center leverages and builds on core scientific resources, expertise and talent at the four institutions in San Antonio,” said Bernard Arulanandam, associate dean for research at UTSA, whose own work includes development of an experimental chlamydia vaccine in collaboration with scientists at the health science center.

Other research at the four institutions includes vaccines against tularemia and Lassa virus, both potential bioterror threats, under development at Texas Biomed; and vaccine delivery systems at Southwest Research.

Ann Stevens, president of BioMed SA, an Alamo City-based biotech booster group, said infectious disease research “is one of five areas we have identified where San Antonio has recognized strengths of national or international caliber. So clearly this is an area where San Antonio can leverage its expertise, both for regional economic benefit, and also to protect human health around the world.”

BioMed SA is finalizing work on a strategic asset initiative in an effort to determine the city’s areas of strength in the bioscience arena. In addition to infectious disease research, it has identified regenerative medicine as another top area. According to BioMed SA, if San Antonio can become a major international player in regenerative medicine, that could have a profound impact on the city’s multibillion-dollar health and bioscience industry—and it could attract the attention of other researchers and companies interested in relocating to the region.

Regenerative medicine is a rapidly evolving interdisciplinary field that draws on fundamental knowledge from biology, chemistry and physics to create materials, devices, systems and therapeutic strategies—including cell-based therapies that augment, repair, replace or regenerate organs and tissues.

GenCure, which was launched last August as an arm of the South Texas Blood & Tissue Center, is helping to propel San Antonio’s regenerative medicine industry on a national and international scale. The non-profit center currently provides expertise in cell and tissue services for regenerative medicine—including patient treatment and clinical research. One such potential being studied is the use of certain cells from umbilical cord blood to improve brain activity in stroke victims.

“Those components of cellular therapies and tissue engineering are very unique to regenerative medicine,” says Mary Beth Fisk, president and chief operating officer for the Blood & Tissue Center and GenCure. “That’s what GenCure is all about.”

GenCure has already teamed up with a number of researchers and is involved in multiple clinical trials in the U.S.—and in other parts of the world, including Brazil and China. One of GenCure’s collaborations is with the University of Illinois and involves the restoration of specialized cells as part of a treatment for Type I diabetes.

The Alamo City is also gaining important ground on the cancer front. In January 2012, South Texas Accelerated Research Therapeutics (START), a local health care group that operates one of the world’s largest Phase I medical oncology programs, announced it is spearheading the development of a new war on cancer that could have a far-reaching impact.

That effort, dubbed the San Antonio 1,000 Cancer Genome Project, will pull together competing Alamo City physicians, researchers and institutions in a collaborative attempt to amplify and expedite efforts to better attack the deadly disease.

San Antonio project officials plan to make their data available to cancer researchers locally, nationally and internationally. Those same officials say that their efforts will encourage the development of new research and could attract more companies, further expanding the city’s multibillion-dollar bioscience industry.

The City of Austin has seen a lot of growth in biotech in recent years, including medical devices, pharmaceuticals and diagnostics. Helping to spearhead this growth is the group BioAustin, which represents over 140 life science companies with over 7,500 employees operating in the five-county Austin and Central Texas region. Companies included in BioAustin operate in the areas of bio-related activities including research, diagnostics, reference laboratories, pharmaceutical, CRO, medical device, agbio and bioveterinary. This group works closely with the hundreds of companies providing services to the bio-related industry and the outstanding healthcare providers in the area.

Austin, TX Biomed Expansions 2009-2012

According to BioAustin, its biotech companies are achieving significant breakthroughs, especially in the area of lymphoma and drug delivery technology. In May 2012, Austin-based biotechnology company Mirna Therapeutics, Inc. announced the publication of new results in the journal Leukemia demonstrating that the therapeutic delivery of microRNA-34 (miR-34) mimics and inhibits tumor growth in an animal model of lymphoma.

Mirna, founded in 2007, has received significant funding from the State of Texas, both through the State’s Emerging Technology Fund and from the Cancer Prevention and Research Institute of Texas (CPRIT). Mirna also is the recipient of a $10.3 million commercialization award from the Cancer Prevention and Research Institute of Texas (CPRIT).

In May 2012, Caisson Biotech, L.L.C. a biopharmaceutical company with a patented heparosan-based drug delivery technology, announced that it has entered into a Development and License Agreement with Novo Nordisk A/S, a global healthcare company and leader in diabetes care. The agreement gives Novo Nordisk the exclusive rights to use Caisson’s proprietary heparosan-based drug delivery technology to engineer and develop compounds within undisclosed therapeutic areas.

Caisson is funded and managed by Emergent Technologies, Inc. a leading life sciences technology investment and management firm headquartered in Austin.

Under the terms of the agreement, Caisson will receive an undisclosed upfront payment and contract research and manufacturing payments. In addition, Caisson will be eligible to receive milestone payments upon achievement of certain predefined clinical, regulatory and commercial targets plus royalties on the global sales of the therapeutic products developed under the agreement; representing a total deal potentially in excess of $100 million.

Utah: Beehive of Biotech
In 1982, a team of University of Utah researchers, engineers and clinicians successfully implanted the Jarvik 7 artificial heart in a Seattle dentist. This was one of Utah’s notable early successes in the medical device industry. Since then, the state has built upon this success and has become a thriving location for life science, biotech and medical device companies.

Today, Utah is home to more than 600 life science companies and 26,000 of their employees. Over 100 of these organizations are medical device companies that make everything from MRI and ultrasound equipment to pacemakers, hearing aids and surgical instruments. In fact, Utah companies currently produce 70 percent of all arterial and vascular access devices utilized worldwide.

In addition, Utah was ranked first among western states for life science business per capita and second for overall industry growth by the Milken Institute. The Bureau of Labor Statistics noted in 2010 that Utah has the highest concentration of biomedical engineers in the country. Utah’s advantages include:

• Direct access to innovative programs at major universities, including the University of Utah, Utah State and Brigham Young University
• The state-funded Utah Science, Technology and Research (USTAR) initiative that fosters research-related economic development in Utah’s colleges and universities—particularly in the biomedical device, nanomedicine and related specialties
• The Technology Commercialization and Innovation Program, which helps fund and transform University-generated ideas into products and companies
• Bioinnovations Gateway, an educational and workforce training facility that provides laboratory and resource access for high school students and entrepreneurs
• Expanded Engineering Initiative, to develop the workforce of the future. Biomedical engineering is a key element of the Initiative
• Life Science Tax Credit program, which encourages early-stage investments and capital for product development and expansion.

In April 2012, more than 400 people from academia, industry and government attended the ribbon cutting of the new James L. Sorenson Molecular Biotechnology Building—USTAR Innovation Center at the University of Utah.

The $130-million interdisciplinary research facility—funded by the state’s USTAR initiative and private donations—demonstrates how architecture and workplace design can support transformative research and business expansion by encouraging interaction across disciplines.

It is the new home of the Brain Institute, the Nano Institute and the Department of Bioengineering, along with USTAR faculty researchers plus junior faculty, administrative and laboratory personnel. The building contains wet lab and research computing space, faculty office space, meeting rooms and public areas designed to promote interaction within the scientific community and industry.

It also includes a state-of-the-art nanofabrication facility with 18,000 square feet of cleanroom space, biobay, and a 5,300-square-foot microscopy and materials characterization suite. The equipment in the microscopy suite ranges in cost from $300,000 to $3 million and is available for use by industry partners.

At USU’s North Logan Innovation Campus a similar story emerges around the 118,000-square-foot USTAR BioInnovations Center. This multidisciplinary facility houses the Synthetic Bio-Manufacturing Institute, the Center for Human Nutrition Studies, the Veterinary Diagnostics and Infectious Disease team, and other life science and renewable energy efforts. USU USTAR teams have a broad portfolio of industry collaborations, including such diverse partners as USANA, a Utah-based nutraceuticals company, and Inovar, an electronics company.

The building has a BioSafety Level 3+ lab (one of the few at that rating in the Intermountain West), as well as extensive multipurpose lab, research kitchen and clinical space.

NJ: Global Medicine Chest
New Jersey is, by any measure, the center of the world’s pharmaceutical industry. The state is home to more than 300 biotechnology companies and 20 pharmaceutical and medical technology firms and 17 out of the world’s top 20 have major facilities in the state. The state also boasts the highest concentration of scientists in the U.S., a total of 150,000 trained pharmaceutical, biotech and medical technology workers. This concentration offers extraordinary opportunities for joint ventures, recruiting and research.

In December 2011, Jones Lang LaSalle, a multinational financial and professional services company specializing in real estate, published its 2011 Global Life Sciences Cluster Report ranking New Jersey/New York as the no. 2 biotech region in the country. Boston was the top-ranked region. The report noted that the region has the highest concentration of college graduates in the nation, and the world’s highest concentration of academic institutions. The report also cited a spate of big-name Pharma firms leasing or buying space in New Jersey, including Bayer and Novo Nordisk.

Championed by U.S. Sen. Robert Menendez, BioNJ and the Biotechnology Industry Organization (BIO), the $1 billion Qualifying Therapeutic Discovery Project was created to further research into critical areas of unmet medical needs by providing early-stage companies conducting that research with additional financial resources. In 2011, the program provided $53 million for the state’s biotech industry—the third largest portion of grant money in the country. A total of 133 New Jersey companies received either tax credits or grants under the program, and these funds are being used to advance more than 225 research projects in therapeutic areas such as cancer, Alzheimer’s disease and Fabry disease.

Oncobiologics was able to access some of the resources it needed to get started through $244,000 in grants from the program. The company, established in January 2011, celebrated the grand opening of its new 25,000-square-foot research and development facility in Cranbury this past October.

“Qualifying Therapeutic Discovery Project funding was critical to helping us get Oncobiologics off the ground,” said Dr. Pankaj Mohan, founder of Oncobiologics. “We had assembled a world-class team and this government backing helped with early equipment investments, while also helping to establish our credibility with future partners.”

Oncobiologics currently employs 20 professionals and plans to employ 200 within two years.
At the end of 2011, the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs were reauthorized for a six-year period. The programs include a provision that allows venture capital-backed companies to compete for up to 25 percent of SBIR grants from NIH, DOE and NSF and 15 percent at other agencies, reversing a policy that has hampered R&D at startup and early-stage companies for several years.

The Technology Business Tax Certificate Transfer Program was restored to $60 million in the 2011-2012 budget cycle after a cut to $30 million in the previous cycle. This innovative program enables companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their operations. Since the incentive was established in 1999, over 1,530 applicants have been approved for $630 million. The 75 emerging biotechnology and technology businesses approved to receive funds in 2011 received, on average, approximately $800,000—more than double the previous average.

Companies that benefited from the program in 2011 include Princeton-based Advaxis, Inc., a biotechnology company developing immunotherapies for cancer and infectious diseases, and Cedar Knolls-based Emisphere Technologies, Inc., a biopharmaceutical company that focuses on improved delivery of pharmaceutical compounds, medical foods and dietary supplements.

New Jersey recently raised the Research and Development Tax Credit rate from 50 percent to 100 percent as of January 2012. Previously, R&D spending in New Jersey was used to offset up to 50 percent of corporate tax liability. The new law allows critical and economically beneficial R&D spending in the State to be used to offset all of the corporate tax liability.

In November 2011, Allergan, Inc., a global multi-specialty health care company, announced it will relocate to New Jersey from California, building a $12 million R&D development facility.

The new facility will create several hundred high-quality jobs over the next few years and will be integral to Allergan’s pursuit of new therapies for patients. To help support this project, the New Jersey Economic Development Authority (EDA) approved a $14.9 million grant for the company through its Business Employment Incentive Program. Allergan currently employs 20 people at a subsidiary in Bedminster, New Jersey and receipt of this grant was a critical factor in the company’s decision to grow in the State.

In April 2011, Bayer HealthCare also announced it will expand in New Jersey. The company plans to consolidate its entire East Coast business in the state, keeping 1,000 jobs and adding up to 500 more. The NJEDA awarded Bayer grants totaling $38.2 million, contingent on the company’s planned growth.

Adding to this economic momentum, LEO Pharma, a Danish subsidiary headquartered in Parsippany, New Jersey, announced expansion plans in 2011 as well. The company opened an office in the State two years ago with five employees and expects to have approximately 300 employees in early 2012.

The post COVER STORY: Building A Biotech Bonanza appeared first on Business Facilities.

Hyundai and Kia use Foreign Trade Zone status to handle and process auto cargoes arriving at the port.

By Dominique Cantelme
From the May/June 2012 issue

The United States is the largest trading nation in the world for goods and services. Its 327 official ports of entry, including seaports, airports, and land border locations, provide the link for getting goods to consumers and transporting U.S. made products overseas for export.

According to U.S. International Trade in Goods and Services by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, U.S. exports of goods and services rose by 16.6 percent in 2010 and 14.5 percent in 2011. 2011 exports reached $2,103.1 billion and imports $2,661.1 billion. For goods, exports were $1,498 billion and imports were $2,235 billion. For services, exports were $604.9 billion and imports were $425.9 billion.

2011 exports of goods were up $202.4 billion from 2010. Increases occurred in industrial supplies and materials ($107.7 billion); capital goods ($44.8 billion); automotive vehicles, parts and engines ($20.5 billion); foods, feeds and beverages ($18.4 billion); consumer goods ($10.4 billion); and other goods ($0.5 billion). Imports of goods were up $293.8 billion from 2010. Increases occurred in industrial supplies and materials ($153.7 billion); capital goods ($61.8 billion); consumer goods ($30.4 billion); automotive vehicles, parts and engines ($29.0 billion); foods, feeds and beverages ($15.7 billion); and other goods ($3.2 billion).

2011 exports of services were up $56.0 billion from 2010. Increases occurred in other private services ($20.8 billion), royalties and license fees ($14.2 billion), travel ($12.2 billion), passenger fares ($5.8 billion), other transportation ($2.6 billion) and transfers under U.S. military sales contracts ($0.3 billion). 2011 imports of services were up $22.8 billion from 2010. Increases occurred in other private services ($10.3 billion), passenger fares ($3.9 billion), travel ($3.8 billion), other transportation ($3.5 billion) and royalties and license fees ($2.2 billion).

The U.S. Foreign Trade Zone (FTZ) program has been a critical tool in helping U.S. ports remain a strong economic force in the global community. The program was created in 1934 with the goal of helping businesses in the U.S. stay competitive with foreign manufacturers and suppliers. According to the National Association of Foreign Trade Zones, a not-for-profit trade association, there are currently 256 General Purpose Zones and 498 Subzones in the United States (including Puerto Rico). They handle almost $500 billion worth of merchandise annually.

Located in or near a U.S. Customs Port of Entry, FTZs benefit companies in many ways. Regardless of proximity, foreign and domestic merchandise in these areas are considered to be outside of “Customs territory”. This means that if the final product emerging from a FTZ is exported, no U.S. customs duties or excise taxes are levied. The FTZ program directly supports hundreds of thousands of U.S. jobs. And while the U.S. government incurs a reduction in Customs duty revenue by the use of FTZs, it more than makes up for it by the income tax gained from direct and indirect jobs FTZs help to create and retain. In addition, local governments benefit from sales and property taxes.

Look no further than the following ports and FTZ locations to position your business for success.

Philadelphia Regional Port Authority: Port On A Mission

The mission statement for the Philadelphia Regional Port Authority is as follows: The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania.

Concise words, solid message. But what does it all mean to you and your business? More specifically, what does the mission mean to your business if you decide to expand its operations to the Philadelphia region?

Dynamic things are happening at the almost four centuries-old seaport, developments that are combining the Philadelphia Regional Port Authority’s long history and unsurpassed experience with the efficiencies of the new. Thanks to the support of state and federal governments, the PRPA’s single biggest piece of news these days is the Philadelphia Regional Port Authority overseeing the deepening of the Port of Philadelphia’s main channel in the Delaware River from 40 to 45 feet. Projected for completion in about three years, the new deeper Delaware River will allow the industry’s new larger containerships to deliver and take on cargoes at the port, cargoes that companies in the region eagerly await or are eagerly sending outward.

Coinciding with the channel-deepening project is the Southport initiative, which is the construction of a brand new container-handling facility in South Philadelphia, adjacent to PRPA’s Packer Avenue Marine Terminal. Between deeper water and this new marine terminal complementing existing facilities, the already efficient, economical port will be able to serve area businesses better than ever before—exactly what they’d like to do for you.

PRPA’s marketing team stands ready to assist private businesses like yours in the development of effective logistics plans. Their even ready to help companies that aren’t including waterborne commerce as a major part of its operations, or even companies that do generate waterborne commerce but ship it through non-PRPA cargo terminals in the region. Why is this?

As Grantee of Foreign Trade Zone No. 35, PRPA has the ability to grant FTZ Zone or Subzone status to manufacturers operating in the FTZ jurisdiction. Having existing companies operate more successfully or attracting new companies to the region is good for everyone, whether or not PRPA’s public port facilities directly benefit.

Those that consider making the Port of Philadelphia part of their logistics chain will find that PRPA and its terminal operators are ready to serve the nation’s businesses. The Port of Philadelphia is proud of all the businesses they’ve helped to attain Zone or Sub-Zone status in the region, whether or not their cargoes are seen on their docks.

Yes, so much is happening at the Port of Philadelphia these days: deeper water; expanded cargo capacity, a vibrant FTZ program and much more. Why not take a moment to visit the Philadelphia Regional Port Authority’s web site, at www.philaport.com, to learn more about the news briefly touched on, as well as other exciting projects and initiatives. It might be your first step toward a profitable decision to make your business operations a productive member of the Philadelphia region’s stable and growing economy.

Port Freeport: 100 Years In The Making

Port Freeport came into being more than 100 years ago when the first jetty system was built in Freeport, Texas. Since that time, Port Freeport has become one of the fastest growing ports on the Gulf Coast and currently ranks 16th among U.S. ports in international cargo tonnage handled. With a current channel of 45-foot depth, soon to be widened and deepened, just three miles from open Gulf of Mexico waters, Port Freeport offers more than 7,500 acres for future development. Port Freeport serves its customers and stakeholders through development and marketing of competitive world-class navigational capabilities, technically advanced marine and multimodal terminal services and port-related industrial facilities while achieving profits and creating jobs as a leading economic catalyst for the Texas Gulf Coast.

Port Freeport offers the following benefits: rail, highway, vessel and/or barge transportation can be seamlessly utilized; direct access to the Gulf Intracoastal Waterway, Brazos River Diversion Channel, State Highway 36, State Highway 288 and Union Pacific Railroad; only a few minutes commute from quality schools, housing and medical care and just 59 miles south of downtown Houston, Texas—the nation’s fourth largest city; surrounded by a highly qualified, technical labor pool; available existing water supply, wastewater collection, electrical distribution, gas and telephone; existence of adjacent properties that could support future growth and development; air freight service by all national carriers from multiple surrounding airports within 60-mile radius; availability of local, high-quality trainable workforce and close proximity to universities and technical colleges; ability to manage inventory and/or manufacture duty deferred, inside its Foreign-Trade Zone; Texas is a right-to-work state, which leaves you the right to choose between union and non-union labor; the state of Texas, Brazoria County and Port Freeport offer competitive incentives, tax credits and exemptions.

Recent developments at Port Freeport include the construction of the first phase of its Velasco Terminal, which will add further cargo-handling capabilities at the Port. The construction of a new 800-foot-long dock and 20 acres of backlands promise an eventual offering of 2,400 feet of berthing and more than 90 acres of supporting land.

Meanwhile, Port Freeport continues to work in conjunction with federal and state authorities to advance the project to deepen the Port’s channel to 55 feet from its present 45 feet, plus substantially widen the channel as well. The Port is hopeful that the feasibility study will indicate, as have preliminary analyses, that benefits of the channel project should exceed its $300 million cost.

With so many developments pointing toward growing diversified activity at Port Freeport, there is much anticipation for the Port to expand upon its already impressive status as an economic cornerstone of the community and region—a dynamic force directly and indirectly responsible for more than 55,000 jobs and having an overall annual economic impact in Texas of $10.2 billion.

Unlike many ports, which are running out of available land, Port Freeport boasts more than 7,500 acres of currently undeveloped tracts, all proximate to the waters of the Gulf of Mexico. The Port is a mere three miles—45 minutes by ship—from the open sea.

The Foreign-Trade Zone Program adds to Port Freeport’s appeal. Since established in 1988, Port Freeport’s Foreign-Trade Zone No. 149 has helped American companies involved in global commerce to save money on the products they import into the U.S. through deferral, reduction and/or elimination of Customs duties assessed on foreign merchandise. In 2012, Port Freeport submitted an application to the Foreign-Trade Zones Board to reorganize FTZ No. 149 under the Alternative Site Framework offering FTZ benefits to companies located in Brazoria and Fort Bend County.

Those seeking additional information about Port Freeport are encouraged to check out Port Freeport’s web site at www.portfreeport.com or contact Mike Wilson at 1-800-362-5743, ext. 4325, or by e-mail at wilson@portfreeport.com.

Newark: World-Class Logistics

“It is not just about infrastructure, access is key,” said Lyneir Richardson, CEO, Brick City Development Corporation. “No other city in America offers access to Wall Street and global trade, just fifteen minutes apart. Manhattan is only minutes away,” said Richardson.

Newark boasts some of the finest infrastructure in the U.S. and indeed the world. With an international airport, seaport, state-of-the-art rail system and network of highways converging on the city, Newark also has become a global transportation hub. More than 620 million tons of freight—valued at over $850 billion—move through New Jersey’s ports every year. Newark is also one of the most connected domestic markets, with over six forms of transportation converging in one hub.

Access is what is fueling Newark’s competitiveness. Ongoing investments in access and infrastructure, including sustainable initiatives such as a bio fuel terminal (2011) and the raising of the Goethals Bridge—which will allow access to the Panama Canal—all help to strengthen access to global markets for the long-term.

Major corporate icons such as Panasonic, Prudential, Bonita Banana, Standard Chartered and United Airlines have selected Newark as their U.S. Headquarters, attracted by the city’s business advantages:

• Access to markets: Port Newark is the principal containership facility for goods entering and leaving the New York metropolitan region and the entire Northeast U.S.
• Access to talent: Newark’s fully developed transportation network allows easy access to an educated workforce in and near the city. Newark’s large multilingual population and six universities add to the value proposition. More than 40,000 college and university students attend school in the city, within a half mile of the central business districts.
• Access to Investment Incentives: A toolbox of tax credits, tax abatement, bond financing and loan programs incentivize businesses locating in Newark.

Mimeo.com, an online and on-demand document production and shipping firm, has a 75,000-square-foot data center and print production and distribution facility in the city. Mimeo.com’s products need to be packaged and shipped for just-in-time delivery around the world, and that’s only possible via cities like Newark, with access to a world-class transportation infrastructure.

The Portugal-based medical genetics testing company, CGC Genetics, located its first American outlet in Newark’s University Science Park.

Newark recently hosted the U.S./Portugal Business Development Trade Mission with Nuno Brito, Ambassador of Portugal to the USA, and Ambassador Allan J. Katz, Ambassador of the U.S. to Portugal.

The International Trade Administration (ITA) recently announced new data that shows that New Jersey’s merchandise exports increased 19 percent in 2011 compared to 2010, growing from $32.2 billion to $38.2 billion, exceeding the national average for merchandise export growth for the same period. New Jersey’s 2011 merchandise export sales increased to many top destinations, including the Netherlands (up 84 percent), Brazil (81 percent, Turkey (46 percent), Mexico (39 percent), and China (34 percent). Key merchandise export categories include: chemicals, petroleum products, computer and electronic products, transportation equipment and primary metal manufacturers.

“The companies that locate here, whether in downtown or our FTZ are selling truly innovative products and services to world destinations,” said Dudley Ryan, Vice President, CB Richard Ellis. According to Ryan, these companies are helping to advance the regional economy by creating high paying jobs and initiatives such as the U.S. National Export Initiative.

“Newark offers international companies access to the best transportation nexus on the East Coast and a gateway to the U.S. and Europe. Our infrastructure and distribution system are unrivaled. These, combined with the Foreign Trade Zone and proximity to New York and Washington D.C., makes Newark a truly attractive location for international companies seeking to invest in the U.S.,” said Richardson.

The post INDUSTRY FOCUS: Ports of Success appeared first on Business Facilities.