Dean Barber, Principal, Barber Business Advisors, LLC

By Dean Barber, Principal, Barber Business Advisors, LLC

The post Not So Wild A Dream 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.

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Gov. Bentley

Like most of our friends from the Deep South, Gov. Robert Bentley speaks in a laid-back cadence that embraces a new acquaintance with neighborly warmth and welcomes a thoughtful conversation.

Folks who don’t know better might jump to the conclusion that an easy, deliberate pace also applies to the economic development strategy Gov. Bentley is implementing in Alabama. They better think again.

As Gov. Bentley detailed for us in an exclusive interview with Business Facilities, Alabama is moving full speed ahead with a dynamic growth strategy that is rapidly transforming the state into an economic powerhouse. Alabama is driving to the head of the class in jobs-rich sectors including automotive and aerospace.

Soon after Bentley took office in January 2011, he reorganized the state’s economic development structure and summarized its marching orders in one word: Accelerate.

“I believe in organization. When I came into office, Alabama was progressing, but I felt we needed more organizational structure to our economic development,” Gov. Bentley told BF. “So we created something called the Alabama Economic Development Alliance, which [executes] our strategic plan for the state—what we call Accelerate Alabama—concentrating on 11 major industries.”

“If you’re not organized, you’re not going to meet your goals quickly,” he added.

Bentley’s organization is not only meeting its goals, it’s exceeding everyone’s expectations, propelling Alabama into the top tier of the most dynamic state economies in the nation—the states that have unlimited growth potential.

The Accelerate Alabama plan aims to build on the state’s already solid foundation of manufacturing, forestry, chemicals and agriculture by targeting new growth sectors, including bioscience and information technology.

Mercedes-Benz plant in Tuscaloosa

The development that literally put Alabama on the map as a major jobs producer took place two decades ago, when Mercedes-Benz decided in 1993 to locate its North American manufacturing hub in Tuscaloosa. Bentley hails Mercedes’ decision as a game-changer: the German automaker’s arrival opened the door for other industrial giants to come to Alabama. It also established the state as a front-runner in foreign direct investments and jump-started a torrent of exports from Alabama to the world.

“Had Mercedes not come to Alabama in 1993, we probably would not have had all these great international companies. When you talk to Mercedes, they will tell you that their best manufacturing plant in the world is at Tuscaloosa,” Bentley said. “Mercedes is a great cheerleader for Alabama.”

Airbus’ first U.S.-based production facility—which will build A320 Family jetliners at the Brookley Aeroplex in Mobile, Alabama, beginning in 2015—will produce between 40 and 50 aircraft annually by 2018.

The loudest cheers since Mercedes-Benz arrived in Alabama came last year, when Airbus decided to put its first North American aircraft assembly facility in Mobile. Airbus will use the facility at the Brookley Aeroplex in Mobile to assemble its A319, A320, and A321 aircraft. The project represents a $600-million investment that will create up to 1,000 jobs when the plant reaches full capacity; building the facility will create nearly 3,200 construction-related jobs over a three-year period.

The Airbus plant is expected to anchor a huge expansion in Alabama’s already thriving aerospace sector and may move the center of gravity for this industry in the state from Huntsville—ground zero of NASA’s legendary rocket program (including the Saturn V that carried men to the moon)—down to Mobile.

A supplier network already is queuing up to put down roots in Alabama to service Airbus. A subsidiary of Labinal, Safran Engineering Services, announced in December that it will operate an engineering supporting facility in Mobile, creating up to 50 jobs. Labinal is part of the French aerospace conglomerate, Safran Group. Gov. Bentley met with Labinal officials during a visit to the Farnborough International Air Show in England last year and encouraged the company to locate in Alabama.

Gov. Bentley is moving quickly to make sure that neighboring states eagerly eyeing the aerospace bonanza in Alabama don’t gain an edge in pulling the Airbus supplier network across their borders.

After Mississippi and Florida passed tort reform measures shielding aircraft manufacturers from long-term liability complaints, Bentley quickly put forward the Alabama Commercial Aviation Business Improvement Act, a tort reform tailored to companies like Airbus that make commercial jets seating more than 100 passengers.

“We put $158 million into bringing Airbus into the state, and while the 1,000 [permanent] jobs are very important, it’s the suppliers who will keep bringing jobs to the state,” Bentley explained. “We wanted to do everything we could to make sure there is a level playing field and these suppliers come to Alabama.”

Alabama Becomes An Automotive Superpower

Mercedes-Benz’s long-term commitment to Alabama was followed by a parade of auto giants who have vaulted the state into the top five in U.S. automotive production, with 880,000 vehicles produced in 2012. Hyundai, Honda, and Toyota have major automotive production facilities in Alabama, all of which are in the process of expanding.

“When you see companies like Mercedes adding new lines [the company will produce its fifth new model in Tuscaloosa this year], when you see Hyundai put a third shift in, adding 800 new jobs, and when you see the level of automation at the plants, you know that we’re producing the high-quality vehicles here in Alabama,” Bentley told BF.

Gov. Bentley knows that world-class manufacturers need a highly skilled workforce, and he has made sure that workforce training programs are up to the task in Alabama.

“The Alabama Industrial Development Training [AIDT] program is one of the best workforce training programs for companies. They will come in and put a training facility on-site to train the workers,” said Bentley. “We have a maritime training program that includes a ship-building training site in Mobile and we’re building a training facility on-site for Airbus. We have one at the engine factory in Huntsville and at all the automotive plants.”

Earlier this year, the state signed an agreement with Mercedes-Benz that recognizes Shelton State Community College as one of the best in its field in preparing individuals for careers in manufacturing. Mercedes-Benz U.S. International, Inc. (MBUSI) and AIDT formalized a $1.6-million contract for Shelton to support MBUSI’s technical programs. The initiative will be funded through AIDT’s Workforce Development program.

“We’ve had resounding success with our Automotive Technician and Mechatronics programs over the past year,” said Markus Schaefer, president and CEO of MBUSI. “Today, more than 100 candidates have enrolled in the program, which has been recognized in Alabama, nationally and globally as a model in the arena of workforce development. Shelton State and AIDT have been critical in the success of these efforts.”

Shelton will use the largest portion of the funds ($1.2 million) to buy equipment that will be housed on campus to train students in robotics, electrical and other high-tech skills required in manufacturing. The remainder of the funds will be used to support students with tuition, fees other program expenses.

FDI, Exports Surge In AL

The migration of overseas manufacturers to Alabama goes well beyond Mercedes-Benz and Airbus. About 70 German companies have set up shop in the state, including industrial giant ThyssenKrupp, which is building a new steel plant near Mobile.

Gov. Bentley has headed trade missions to Germany three times in the past two years; Alabama Commerce Secretary Greg Canfield also is a frequent flyer to Europe seeking to draw new business to the state.

Gov. Bentley also has the Far East on his radar. He is actively courting business in Japan, South Korea and China, most recently convincing Golden Dragon Copper Tubing to set up its first U.S. operation in Alabama. Bentley pushed through special legislation to mitigate U.S. tariffs imposed on copper tubing. He also was able to get the Chinese company to put the plant in the part of the state with the highest unemployment.

“That’s up to 500 new jobs for that area. It’s going to improve the situation and we’re very excited about it,” the governor said. [On his official Twitter feed, Gov. Bentley has pledged that he will not accept a salary as governor until Alabama achieves “full employment.”]

Bentley noted that Alabama’s status as a right-to-work state meets a prerequisite of a majority of Asian companies. “European companies don’t say it as much, but there’s no doubt that Asian companies want to go to a right-to-work state,” he said.

Governor Robert Bentley standing with recipients of the Governor’s Trade Excellence Awards in the Old House Chamber at the Alabama State Capitol.

Gov. Bentley has made increasing Alabama’s exports a top priority of the state’s long-term economic development plan, and the results have been impressive. Alabama has achieved a record $19.5 billion in exports during his tenure. The governor goes out of his way to throw his spotlight on successful Alabama exporters. He recently presented Governor’s Trade Excellence Awards to eight Alabama companies that have expanded exports this year. Bentley also meets regularly with the consulate from Canada, Alabama’s top export partner.

In addition to meeting trading partners’ concerns about issues like tariffs, the governor says expanding exports still comes down to a basic requirement:

“First, you have to make very good products, and we do that. You have to produce something that people want to buy, not only in the rest of the country but all over the world,” he said.

Regions Bank Unveils $1B Development Fund

It isn’t hard to find a consensus of economic development analysts who will tell you that the banking industry hasn’t played a very constructive role in the recovery, on either the national or state level. Though their balance sheets were stabilized by billions in federal bailout funds and an infusion of capital from the Federal Reserve, the major banks have been tightfisted about spreading that fresh cash around in the form of new job-creating loans.

The standout exception has been Regions Bank in Alabama, which recently agreed to set up a $1-billion Economic Development Loan Pool to support job-creation in the State specifically aimed at small businesses. Gov. Bentley expressed pride that it was a large bank in Alabama that stepped forward and set an example for a nation struggling to recover from the worst economic downturn since the Depression.

“The bank initiated this, and we were very excited by it because one of the [biggest] problems that states are having is the ability to acquire capital,” Bentley told BF. “This will provide capital for many of our small businesses as they try to get up and going. It already is spurring activity in Birmingham. For them to put a billion dollars here is very important, because capital is such a vital part of our ability to create jobs, especially on the small-business level.”

“I hope this will encourage a number of the other large banks to do the same thing,” the governor added.

Alabama has had to deal with more than its share of disasters during Bentley’s first term as governor—both natural and man-made.

On his 100th day in office, a monster tornado tore through Tuscaloosa, the worst natural disaster ever to hit the state. The twister caused 254 fatalities in Alabama and left miles of devastation in its wake (the Mercedes-Benz plant and the stadium that is home to the National Champion Crimson Tide college football team were spared).

“This was something that no one can prepare for, but the way you respond is very important,” Bentley said. “Things went well in Alabama not only with the initial response, but because we allowed the local leadership to do their job and we had a very good cooperative effort with FEMA and HUD. They did everything we asked them to do, and I’m thankful for it.”

Gov. Bentley created a Tornado Response Action Council to prepare for future disasters. He asked the council to produce “common-sense” recommendations, many of which already have been implemented. The governor initiated a special sales tax holiday covering household goods needed to cope with storm damage.

Bentley also has had to deal with the nation’s worst maritime oil spill, the massive BP drilling disaster in the Gulf of Mexico, which soiled Alabama’s coastal white-sand beaches. Alabama is among several Gulf Coast states that are still in the process of recovering damages from the British oil giant.

“We’ll see if we’re able to settle,” Bentley said. “We have the first beautiful white beaches you come to, so we think it damaged us more than anyone else.”

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Jack Rogers, Editor in Chief, Business Facilities

From the March/April 2013 issue

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

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

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

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

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

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

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By the time the damaged wellhead was capped–nearly three months after the explosion–more than 5 million barrels of oil had leaked into the Gulf. That’s almost 20 times more than what seeped out of the Exxon Valdez off the coast of Alaska in 1989.

The five states that were impacted by the Deepwater Horizon disaster (including 665 miles of contaminated coastline), Gulf Coast business owners, the federal government and BP have spent the past three years dancing a slow legal tango that has assessed clean-up costs, fines and other liabilities.

The British oil giant estimates its overall liability for the catastrophe could eventually top $42 billion; BP has sold off significant assets to generate cash for the payouts.

In December, a federal judge approved the Deepwater Horizon Economic and Property Damages Settlement agreement, which covers individuals and businesses in Louisiana, Mississippi, Alabama, and certain coastal counties in eastern Texas and western Florida, as well as specified adjacent Gulf waters and bays. BP says it has set aside about $8 billion to cover these economic and property damage loss claims (the agreement does not set a cap on the liability), of which about $1.87 billion has already been paid out (the overall settlement includes a guaranteed $2.3-billion fund to compensate seafood industry businesses damaged by the spill).

Meanwhile, a trial underway in New Orleans will determine civil claims under the Clean Water Act which could amount to more than $17 billion; billions more could be assessed after damage claims from Gulf Coast states are adjudicated; and a third set of claims covering natural resource damage has yet to be filed.

While the overall scope of the settlements is still taking shape, a bureaucratic framework has been put in place to distribute these funds.

In 2011, the  RESTORE Act established a Gulf Coast Ecosystem Restoration Council, which is comprised of governors from the five affected States, the Secretaries from the U.S. Departments of the Interior, Commerce, Agriculture, and Homeland Security as well as the Secretary of the Army and the Administrator of the U.S. Environmental Protection Agency. The Gulf States recommended and President Obama appointed the Secretary of Commerce as the Council’s Chair.

The RESTORE Act dedicates 80 percent of all administrative and civil penalties related to the Deepwater Horizon spill to a Gulf Coast Restoration Trust Fund. It specifies that these funds can be utilized “to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, coastal wetlands and economy of the Gulf Coast region.”

The RESTORE Act sets forth the following framework for allocation of the Trust Fund:

• 35 percent equally divided among the five States for ecological restoration, economic development and tourism promotion;
• 30 percent plus interest managed by the Council for ecosystem restoration under the Comprehensive Plan;
• 30 percent divided among the States according to a formula to implement State expenditure plans (the formula factors in oiled shoreline, population and distance from the Deepwater Horizon rig);
• 2.5 percent plus interest for the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring and Technology Program within the Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA); and
• 2.5 percent plus interest allocated to the States for Centers of Excellence Research grants, which will each focus on science, technology and monitoring related to Gulf restoration. 

State and local economic development officials throughout the Gulf Coast region are gearing up to receive their share of the Deepwater Horizon disaster trust fund.

According to state officials, Mississippi was the first state to come up with a dedicated plan to use these funds. Gov. Phil Bryant came forward with a GoCoast 2020 plan that lays out how Mississippi will spend its share of funds from the Restoration Council.

Here are some of the projects in Mississippi that eventually may be built using BP disaster funds, as reported by the Mississippi Press (GulfLive.com):

Jackson County, MS is considering using the BP funds to expand Trent Lott International Airport; expand rail services; eliminate 23 railroad crossings in Pascagoula and Moss Point; dredge bayous throughout the county; and replace a county bridge that connects east and west Jackson County, a $20-million project.

Pascagoula, MS is considering a $24.2-million riverfront project which would include Point Park, a beach promenade, Yazoo Lake channel dredging, Inner Harbor repairs and adding public access and a restaurant at Spinnaker Point. Another $424-million project would acquire riverfront property, relocate the wastewater treatment plant, complete Lighthouse Park and connect the bayou north of Lake Yazoo to the lake for improved drainage. A proposed $7.6-million project would convert Lowry Island into a recreational harbor.

Other Mississippi towns are queuing up to deploy the BP restoration funds to expand highways, repair bridges, build water treatment plants and restore wetlands.

Here’s hoping the improvements funded by the Deepwater Horizon settlements outlast the damage to the ecosystem of the Gulf of Mexico and the Gulf Coast wrought by BP’s big oil spill.

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Greg Canfield, Secretary, Alabama Department of Commerce

By Business Facilities Staff
From the January/February 2013 issue

Airbus is putting its North American manufacturing hub in Mobile. We asked AL DOC chief Greg Canfield about the impact on the state’s growing aerospace industry.

BF: Do you anticipate other aerospace producers/suppliers setting up shop or expanding in AL as a result of the Airbus project?
GC: The fact that Airbus located its first U.S. plant in the state is already drawing attention to Alabama worldwide; much like the Mercedes-Benz announcement did in 1993. We just recently had the announcement of the first Airbus supplier: Labinal is part of the aerospace giant Safran Group and is a global leader in electrical wiring systems. We have a supplier support team in place and are currently mobilizing education initiatives and planning training centers to accommodate the skilled workforce demands. Without a doubt we expect additional growth as a result of the Airbus facility.

BF: The Von Braun Center for Science and Innovation received an SBA grant in 2010 to create the Huntsville Advanced Defense Technology Cluster, aimed at high-tech entrepreneurs. Has the program been a success?
GC: HADTCI has initiated a paradigm shift in two ways: it has facilitated more collaboration among small and large companies to have a better chance at winning awards and it has encouraged the community to look outside the traditional DOD and NASA opportunities into areas where their technologies can be commercialized. This is in addition to supplementing the existing small business services in the region through mentoring, grants, technical consulting and training.

BF: Is the Port of Mobile ready to compete for increased shipping from the expansion of the Panama Canal?
GC: Today we are handling post-panamax ships of the same size that will be transiting the expanded Panama Canal beginning in 2015 every week. These ships, which are deployed in a trans-Atlantic service, are up to 1,200’ long and carry up to 9,000 TEUS. Our Intermodal Container Transfer Facility should be completed by the canal opening. This will dramatically improve the efficiency of the inland movement of containers to and from the port.

BF: Growth of film and entertainment industry employment in Alabama also is a DOC priority. Are you attracting new business from the entertainment sector?
GC: In the past year we had several major feature films that will be released in the next few months, including 42 (the story of Jackie Robinson) and Space Warriors, filmed entirely at Huntsville’s Space Camp. We also have several reality shows currently being filmed and we expect to incentivize a music festival soon.

BF: The DOC has a new communications plan, including an upgraded website. What are the goals of the new plan?
GC: The primary goal is to ensure we are on the radar for all major site selection consultants and companies seeking to relocate or expand facilities. We are developing an exciting branding campaign using a mixture of both traditional and nontraditional media, and a redesigned website that will be more user friendly.

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So what did the banks do with all this largesse from America’s central repository? Did they pump it into the veins of a U.S. economy they had nearly destroyed? Did they do their part to repair the damage after of a decade-long orgy of grotesquely over-leveraged speculation in bundles of fraudulent securities? Did they nurse the patient out of intensive care with a powerful tonic of job-creating, low-interest loans and reduced principal on mortgages?

Of course not. They stashed the free moolah in their vaults, piled up billions in interest income and rewarded their top executives with bonuses tastefully reduced a few pennies from obscene pre-crash levels. They told us their hands were tied, that they had to sit on a $2-trillion mountain of liquidity while the economy sputtered and millions suffered because there was just too much “uncertainty” out there.  Then they skimmed a few million off the top of the pile and hired the best lobbyists money can buy and set them to work watering down the financial reforms enacted by Congress in 2010.

For four years, we’ve been waiting for a major financial institution to step forward and enlist in the battle to rebuild the American economy, to make the public interest in this challenging time a priority over the relentless accumulation of private equity.  We’ve been waiting for a big bank to become part of the solution instead of the nexus of the problem, to do the right thing.

The news from Alabama this week gives us hope that our wait is finally over.

In a formal partnership with Alabama’s state government, Regions Bank announced it has earmarked $1 billion in loans for the specific purpose of lending to companies and businesses that are adding jobs in Alabama, AL.com reports.

Regions’ new commitment is being called the Regions Economic Development Loan Pool. A dedicated team of Regions bankers will work with the Alabama Department of Commerce to identify development candidates that satisfy several criteria for ED loans: the business must either establish operations or already be located in Alabama, it must meet Regions Bank’s existing credit standards and it must have explicit plans to either expand or maintain its current number of employees.

Candidates already are stepping forward. Integrated Medical Systems International, Inc., a Birmingham-based surgical device management firm, plans to add 500 new jobs to its workforce of 1,100 by the end of the year. The company is aiming to double its 2012 revenues ($117 million) over the next five years. Regions Bank already has provided IMS with a $7-million loan to expand its facility – Wednesday’s announcement of the Regions Economic Development Loan Pool, attended by Birmingham Mayor William Bell and Gov. Robert Bentley, was held in a 55,000-square-foot part of that expansion.

“This loan pool will help us build on our job-creation efforts,” Gov. Bentley said, adding that smaller businesses are a key component of the state’s growth mission. “That’s where most of our jobs actually come from,” he said.

Grayson Hall, CEO of Regions Financial Corp. said the new Economic Development Loan Pool is an opportunity for Alabama’s largest bank to provide confidence to the businesses within its home state in a time of uncertainty.

“In many ways, 2013 is an excellent opportunity for businesses both large and small to grow for the long term,” he said. “What they need is a commitment of confidence and a commitment of capital.” Hall added that he hoped other banks would follow Regions’ path.

Indeed. We tip our hat to Regions Bank and the great state of Alabama, who have set a fine example worthy of replication by financial institutions and state governments across the nation. We know the proof of the pudding will be in the results – or lack of them – which follow, but we’ve got a strong feeling our friends down South are onto something important. Call it our “commitment of confidence.”

A commitment of confidence and a commitment of capital in a time of uncertainty are exactly what America needs right now.

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

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Already home to world-class research labs at Georgia Tech and the Centers for Disease Control, Metro Atlanta lures another high-tech gem in Baxter’s $1.3-billion bio-pharma investment.

By Business Facilities Editorial Staff
From the January/February 2013 issue

Gold

Project Title: Baxter International Bio-Pharmaceutical Manufacturing Plant
Entered By: Georgia Department of Economic Development

The nominees for Business Facilities’ 2012 Economic Development Deal of the Year Awards competition reflected a diverse cross-section of growth strategies, most of which are built on a foundation of new manufacturing capacity.

Entries from 17 states that jousted for our top awards included a biotech mega-complex in Georgia, a world- class commercial aircraft assembly facility in Alabama, a yogurt plant in Idaho and even a refinery in Philadelphia. All of the contenders held the promise of hundreds of new jobs; the biggest projects offered the potential to transform the economies of entire regions.

As always, our award recipients were selected by a blue-ribbon panel of industry experts who carefully reviewed project details provided by the finalists. The task of separating the wheat from the chaff was especially challenging for our 2012 awards, as all of the nominees were worthy contenders.

Projects nominated for Business Facilities’ annual Economic Development Deal of the Year competition are asked to submit an Economic Impact Analysis for the project (using standard analysis methods including RIMS II, REMI or IMPLAN) and a narrative detailing how the project came together.

Our judging panel, including leading site selection consultants, evaluates the overall impact of the project and assesses the effectiveness and innovation of the location’s approach to landing the deal. Key factors in this evaluation include creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.

The judges have spoken and Baxter International’s decision to make a $1.3-billion investment in Georgia is our 2012 Economic Development Deal of the Year Gold Award winner.

The Baxter bio-pharmaceutical facility, an integrated campus which will include three main manufacturing components as well as warehousing, utilities and lab support facilities, is expected to directly create 1,800 jobs with an economic impact of $6.2 billion.

Over a 10-year period, the bioscience complex will generate an overall regional economic impact estimated at nearly $13 billion, creating more than 8,700 direct, indirect and induced jobs. The campus will be located in Covington, GA in Stanton Springs, a 1,620-acre master-designed industrial park west of Interstate 20 at the intersection of Newton, Walton, Jasper and Morgan counties.

Artist’s rendering of Baxter International bio-pharmaceutical campus in Georgia.

Baxter’s new biologics manufacturing facility will include an advanced plasma fractionation facility, giving the bio/pharma giant additional capacity for testing and purification of its medications. Products to be made at the Georgia site will include immunoglobulin treatments for patients with immune deficiencies and albumin products used as plasma-volume replacement therapies in critical care, trauma and burn patients.

“Baxter’s decision to come to Georgia marks a new era in the growth of our biosciences industry and will have a far-reaching impact on our economy,” Gov. Nathan Deal said when the project was announced. “We are honored to welcome this flagship company to Georgia and proud that our state’s vast resources for the biomedical field will assist the company with the groundbreaking medical advances it is renowned for.”

Deerfield, IL-based Baxter makes medical devices, pharmaceuticals and biotechnology products with a focus on hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions. The company’s 2011 revenue was $13.9 billion; it employs about 19,000 U.S. workers and has 14 plants, including three in Puerto Rico.

According to the Georgia Department of Economic Development, Baxter will get about $80 million in state incentives, including $65.6 million based on the number of jobs it will create, and a $13.7 million project development grant.

“This mega-project will anchor Georgia’s thriving bioscience sector for years to come, moving the Peach State into the front ranks of national biotech players,” Business Facilities Editor in Chief Jack Rogers said.

Rogers said BF’s judging panel was particularly impressed by the regional cooperation that brought this project to fruition, and the flexibility shown by state and county agencies in tailoring solutions to meet Baxter’s needs. Baxter narrowed the location search to four candidates internationally in 2009.

The entities involved in landing the project included the Georgia Department of Economic Development, the Joint Development Authority of Walton, Newton, Morgan and Jasper Counties and the Technology Park of Atlanta.

The quick turn-around time between the site selection decision announcement last April and construction of primary facilities in the Baxter project is unprecedented, Rogers noted.

“Baxter announced its decision in April and by August 1 ground was already broken on a 1-million- plus-square-foot facility,” he said. “Georgia’s willingness to cut red tape will be followed by a ribbon-cutting on a world-class bioscience complex.”

Construction of the first manufacturing buildings at the new Baxter campus is expected to be completed in 2015, with full commercial production commencing in 2018.

The Metro Atlanta plant will be Baxter’s third in the Southeast; it also has plants in North Cove, NC, and Cleveland, MS. According to a Triangle Business Journal report, Baxter International executives toured sites in Granville County, Wake County and Lee County in North Carolina before selecting the Covington, GA location.

Metro Atlanta already is home to several major research institutions, including Emory University, Georgia Tech and the federal Centers for Disease Control and Prevention.

Baxter’s plant puts Georgia on the map as a player in the life sciences industry, said Mike Cassidy, president of the Georgia Research Alliance. “It’s validation of a long-term strategy to make the state attractive to the life sciences industry,” Cassidy said.

South African energy giant Sasol makes the largest private-sector investment for a single industrial project in U.S. history with its Lake Charles, LA petrochemical complex. In this photo, Louisiana Gov. Bobby Jindal (left) and officials hail Sasol’s mammoth petrochemical project.

Silver

Project Title: Sasol North America Inc.
Entered By: LED, Southwest Louisiana Economic Development Alliance, Port of Lake Charles

One of the largest private-sector investments for a single industrial project in U.S. history is our 2012 Economic Development Deal of the Year Silver Award winner.

Sasol Ltd., a global energy company based in South Africa, decided that Louisiana’s highly developed pipeline infrastructure is perfectly suited to its plans to develop a $10-billion gas-to-liquids processing plant that will enable it to tap into the natural gas bonanza in the U.S. emanating from abundant shale gas reserves.

In addition to the processing plant, which will yield 96,000 barrels/day of premium fuels, Sasol North America also plans to build a $4.5-billion cracker unit at its Lake Charles Chemical Complex in Westlake, LA. The cracker will produce up to 1.4 million tons annually of ethylene used to make plastics.

The new facilities in Calcasieu Parish will result in the creation of more than 5,000 permanent jobs in the Southwest Louisiana region, in addition to the 5,500 construction jobs that will be engaged in building the project through 2020. The expanded Lake Charles complex will have a direct economic impact in the region estimated at more than $29 billion over the next 20 years.

BF’s judging panel was particularly impressed with Louisiana’s willingness to go the extra mile in securing land options for the project, the customized incentives package offered to Sasol and the state’s creative use of LED’s GIS mapping in presenting its proposal to the energy giant.

Using a multi-layered GIS map displayed on an iPad, LED officials were able to show site details, utilities, nearest rail access, proximity to the river and the Port of Lake Charles during the first site visits by the Sasol team. According to LED, the introduction of the new GIS mapping enabled Southwest Louisiana to pull ahead of a Canadian province that was competing for the project.

In announcing the mega-deal, Gov. Bobby Jindal said the $14.5-billion petrochemical complex “will bolster Louisiana’s position as the No. 1 exporter of energy in America.” Gov. Jindal also noted the Lake Charles complex will represent a huge new source of demand for natural gas in the state, including gas extracted from deposits in the Haynesville Shale formation.

The Sasol project was a joint effort involving Louisiana Economic Development, Southwest Louisiana Economic Development Alliance and the Port of Lake Charles.

To secure the project, Louisiana offered Sasol a custom incentive package that includes a performance-based grant of $115 million for land acquisition and infrastructure costs associated with the facility. Sasol also will receive the services of LED FastStart™, the nation’s No. 1 state workforce training program.

In addition, the company will qualify for Louisiana’s new Competitive Projects Payroll Incentive (up to 15 percent payroll rebate for each GTL job) and Quality Jobs Program (up to 6 percent payroll rebate for each ethane cracker job).

One of the largest grants in the history of the Texas Enterprise Fund and local property tax abatements bring Apple’s primary operations nexus to the Texas state capital.

Bronze

Project Title: Apple Inc. Americas Operations Center
Entered By: Austin (TX) Chamber of Commerce

Apple’s selection of Austin, TX as the site for its new $304-million Operations Center is the Bronze Award winner in Business Facilities’ 2012 Economic Development Deal of the Year competition.

The new facility, which will increase Apple’s workforce in Austin to more than 6,700, will serve as the primary operations nexus for the company in the Americas outside of Apple’s global headquarters in Cupertino, CA, centralizing accounting, human resources, sales, marketing and finance.

State, county and local agencies came together to put together a package for Apple that sealed the deal in an intense site-selection battle for the operations center. The Austin Chamber of Commerce, Travis County and the Governor’s Office of Economic Development and Tourism were key players in bringing the project to fruition.

“Texas put down a marker with an aggressive incentives package which made it clear that the Lone Star State did not intend to be outgunned for this project, which turbocharges a strategic growth sector for the Austin region,” said Business Facilities Editor in Chief Jack Rogers.

The state of Texas awarded one of the largest grants from the Texas Enterprise Fund in the history of the program—$21 million—which together with a property tax abatement from the City of Austin and Travis County provided for a total incentive package of $35 million for the operations center. Apple gave candidate locations a three- month window in which to make their proposals.

The new 1-million-square-foot campus in Austin will directly create 3,635 jobs generating about $273 million in new wages over the next 10 years. The Apple facility in Texas will become one of four major global operations centers for the tech giant outside of its California HQ.

The impact of this project on the state is estimated at 16,000 jobs (direct and indirect), $1.4 billion in personal income and an overall Economic Output impact of $5.7 billion.

Austin is no stranger to BF’s annual Economic Development Deal of the Year competition. The $3.6-billion expansion of Samsung Austin Semiconductor’s huge chip fab complex was our 2010 Deal of the Year Gold Award winner.

Samsung has committed to investing more than $13 billion in the Austin facility, which has vaulted Texas into second place among national leaders in semiconductors, behind only California. The 2010 project netted more than 7,600 new jobs (direct and indirect) and came with an estimated economic impact of nearly $2 billion over the first three years of operation.

Last year, the Austin Chamber of Commerce was the winner of our first annual Economic Development Excellence Award (Population Greater Than 500k). Austin also had an excellent showing in our 2012 Metro Rankings Report, taking first place in our coveted Economic Growth Potential ranking (employment greater than 450k).

Honorable Mentions

Projects:Airbus Assembly Facility (Mobile, AL Chamber of Commerce); eBay Campus (Utah Governor’s Office for Economic Development); Caterpillar Production Plant (Georgia Department for Economic Development); Bridgestone Americas Tire Plant (South Carolina Department of Commerce).

Gov. Robert Bentley (second from right) congratules Airbus officials as they announce the selection of Mobile as the site of the European aircraft giant’s new North American assembly plant.

The number of projects deserving of recognition in our annual Economic Development Deal of the Year contest always exceeds the number of awards categories. This year, our judges have selected four entries to receive our Honorable Mention Awards.

Airbus announced in July that it will invest $600 million in an aircraft assembly facility at the Brookley Aeroplex in Mobile. The plant—which will assemble A319, A320 and A321 passenger aircraft—is expected to commence operations in 2015, creating 1,000 new jobs. The assembly facility will hit full capacity in 2018, when it is expected to produce up to 50 aircraft per year.

“Mobile’s selection as the only site in the Western Hemisphere assembling aircraft for Airbus cements Alabama’s status as an up-and-coming aerospace manufacturing giant,” said Business Facilities Editor in Chief Jack Rogers.

Mobile’s victory in the fierce competition for the Airbus plant was the culmination of a seven-year effort by state and local officials to land the prize from Europe’s aerospace giant. The triumph also marked a stunning turnaround from the disappointment of the U.S. government’s reversal of a 2008 decision to award Airbus’s parent, EADS, a huge U.S. Air Force refueling tanker project. EADS had selected Mobile as the site for tanker production, but in 2011 Congress rebid the project and awarded it to Boeing.

The decision by eBay to construct a new 40-acre campus in Draper, UT will directly bring 2,200 new jobs to the state, creating more than $1.6 million in new wages over the next 20 years.

“The ongoing eBay expansion is another success story for Utah’s burgeoning software and IT industry cluster,” Rogers said, noting that industry giants including Microsoft, Twitter, Adobe and IM Flash already have put down roots in the Beehive State.

Rogers added that the Economic Development Deal of the Year judging panel was impressed by the cooperation between eBay and Utah to develop alternative energy resources, including wind energy power generation, which will be used to provide electricity to the Draper facility.

“eBay chose Draper for a customer support center in 1999 primarily because of the quality of the workforce, favorable business climate and proximity to San Jose,” said William Lasher, eBay senior director. “As the Draper facility grew, we became increasingly aware that the business conditions in the state were ideal.”

The Economic Development Tax Increment Financing eBay received from the state, coupled with incentives from local cities, were helpful when eBay made decisions about whether to grow the Draper operation during the past 10 years (creating 1,000 new jobs). Lasher said. eBay was especially impressed with the level of involvement from state and local economic development agencies in working with eBay to solve its problems and meet its needs, he added.

Caterpillar reviewed proposals from more than 100 locations in the U.S., as well as sites in Canada and Mexico, before selecting Athens, GA to be the home of its new $200- million factory. The Georgia plant, which will employ 1,400, will manufacture construction equipment previously produced in Sagami, Japan.

Earth-moving equipment like the unit above will be produced at Caterpillar’s new plant in Athens, GA.

An emphasis on the availability of workforce training, including presentations from Georgia Quick Start and Athens Technical College, helped seal the deal. The Georgia Department of Economic Development, the Economic Development Authorities of Athens-Clarke and Oconee counties, and Electric Cities of Georgia all played a role in shaping the proposal for the Caterpillar project.

“Georgia put its best foot forward in presenting all of its resources to this industry giant,” Rogers said.

The Caterpillar project will have an estimated direct Economic Output impact of $2.92 billion over the next 10 years, directly creating more than $78 million in new wages. When it made the decision to put the new plant in Athens, Caterpillar already was operating facilities in Griffin, LaGrange, Toccoa and Thomasville, GA, so the equipment giant was very familiar with the benefits of locating in a manufacturing-friendly state.

Bridgestone Americas $1.2-billion investment in the construction of a new 1.5-million-square-foot off-road radial (ORR) tire manufacturing facility on a site in Aiken County, SC—and a 474,000-square-foot expansion of an existing tire plant nearby—marked the largest single initial capital investment in South Carolina’s history.

“Bridgestone’s decision to transplant technology and manufacturing to South Carolina that had been exclusive to its facilities in Japan is another indication of the Palmetto State’s emergence as a world-class manufacturing competitor,” Rogers said.

The Bridgestone facility is expected to have a direct Economic Output impact of nearly $2 billion over the first two years of operation, directly creating more than $362 million in new wages.

The new ORR manufacturing plant is part of the company’s global sourcing strategy. The facility will be a greenfield site in the Sage Mill Industrial Park in Aiken County. Previously, large and ultra-large ORR tires had been produced exclusively at Bridgestone’s
Shimonoseki and
Kitakyushu plants
in Japan. Bridgestone will install
ORR production
technologies developed in Japan in
the new plant to
more effectively
respond to customer needs and growing global demand. The new plant will be a green facility—it is expected to meet LEED Construction Certification environmental standards.

Business Facilities congratulates all of the winners in our 2012 Deal of the Year competition. Nominations are now being accepted for our 2013 contest here.

The post COVER STORY: 2012 Economic Development Deal of the Year Awards appeared first on Business Facilities.

• Mobile (AL) Area Chamber of Commerce for Airbus’ selection of Mobile as the site of its final assembly facility.
• Utah Governor’s Office of Economic Development for eBay’s Utah campus.
• Georgia Department of Economic Development for Caterpillar’s choice of Athens, GA as the site of its new production facility.
• South Carolina Department of Commerce for Bridgestone Americas’ tire plant.

Airbus announced in July that it will invest $600 million in an aircraft assembly facility at the Brookley Aeroplex in Mobile. The plant, which will assemble A319, A320 and A321 passenger aircraft is expected to commence operations in 2015, creating 1,000 new jobs. The plant will hit full capacity in 2018, when it is expected to produce up to 50 aircraft per year.

“Mobile’s selection as the only site in the Western Hemisphere assembling aircraft for Airbus cements Alabama’s status as an up-and-coming aerospace manufacturing giant,” said Business Facilities Editor in Chief Jack Rogers.

Mobile’s victory in the fierce competition for the Airbus plant was the culmination of a seven-year effort by state and local officials to land the prize from Europe’s aerospace giant. The triumph also marked a stunning turnaround from the disappointment of the U.S. government’s reversal of a 2008 decision to award Airbus’s parent, EADS, a huge U.S. Air Force refueling tanker project. EADS had selected Mobile as the site for tanker production, but in 2011 Congress rebid the project and awarded it to Boeing.

The decision by eBay to construct a new 40-acre campus in Draper, UT will directly bring 2,200 new jobs to the state, creating more than $1.6 million in new wages over the next 20 years.

“The ongoing eBay expansion is another success story for Utah’s burgeoning software and IT industry cluster,” Rogers said, noting that industry giants including Microsoft, Twitter, Adobe and IM Flash already have put down roots in the Beehive State.

Rogers added that the Economic Development Deal of the Year judging panel was impressed by the cooperation between eBay and Utah to develop alternative energy resources, including wind energy power generation, which will be used to provide electricity to the Draper facility.

Caterpillar reviewed proposals from more than 100 locations in the U.S., as well as sites in Canada and Mexico, before selecting Athens, GA to be the home of its new $200-million factory. The Georgia plant, which will employ 1,400, will manufacture construction equipment previously produced in Sagami, Japan.

An emphasis on the availability of workforce training, including presentations from Georgia Quick Start and Athens Technical College, helped seal the deal. The Georgia Department of Economic Development, the Economic Development Authorities of Athens-Clarke and Oconee counties, and Electric Cities of Georgia all played a role in shaping the proposal for the Caterpillar project.

“Georgia put its best foot forward in presenting all of its resources to this industry giant,” Rogers said.

Bridgestone Americas $1.2-billion investment in the construction of a new 1.5-million-square foot off-road radial (ORR) tire manufacturing facility on a greenfield site in Aiken County, SC—and a 474,000-square-foot expansion of an existing tire plant nearby marked the largest single initial capital investment in South Carolina’s history.

“Bridgestone’s decision to transplant technology and manufacturing to South Carolina that had been exclusive to its facilities in Japan is another indication of the Palmetto State’s emergence as a world-class manufacturing competitor,” Rogers said.

Projects nominated for Business Facilities’ annual Economic Development Deal of the Year competition are asked to submit an Economic Impact Analysis for the project (using standard analysis methods including RIMS II, REMI or IMPLAN) and a narrative detailing how the project came together.

The judging panel, including industry experts and leading site selection consultants, evaluates the overall impact of the project and assesses the effectiveness and innovation of the location’s approach to landing the deal. Key factors in the evaluation include creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.

Click the highlighted links to read about winners in Gold, Silver, and Bronze along with the winner of BF‘s State of the Year Award.

The post Airbus, Caterpillar, Bridgestone, eBay Earn Honorable Mentions from Business Facilities in 2012 Economic Deal Of The Year Competition appeared first on Business Facilities.

Photo credit: Raytheon

Raytheon Company has opened its new all-up-round Standard Missile production facility in Huntsville, AL. At the factory, workers will complete final assembly and testing of the company’s Standard Missile-3 and SM-6 interceptors.

The post Raytheon Opens New Missile Factory In Alabama appeared first on Business Facilities.