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.”

The post FEATURE STORY: Accelerating In Alabama appeared first on Business Facilities.

Many governors reserve their attention for the largest projects that come to their states. But we often get releases from Kentucky in which Gov. Steve Beshear hails smaller job-producing initiatives. When we sat down with Gov. Beshear for this Governor’s Report, we asked him why he feels it’s important that every step forward, big or small, gets its share of the state spotlight during tough economic times.

Gov. Steve Beshear (Photo Credit: Office of the Governor)

“Since coming into office, my number one priority has been on the retention and creation of jobs,” he said. “Despite strenuous economic times, Kentucky has found ways to work with companies, big and small, to make investments for the future. Job by job and company by company, we’re turning Kentucky’s economy around, and I feel strongly that every job, every investment is worth celebrating.”

Gov. Beshear recently presided over the opening of the Kentucky-Argonne Battery Manufacturing R&D Center, which already has drawn at least one key player in advanced lithium storage materials to Lexington. Beshear is confident a full supplier network will develop in Kentucky to support the emerging advanced battery industry.

“As the lab’s reputation grows, so will its funding from federal grants and from research contracts with companies locating here to use this open access facility,” he said. “This builds a critical mass of research-based companies, which in turn will attract a network of suppliers. We’re already starting to see this happen with firms like nGimat, which moved part of its operations from Atlanta to Lexington in order to access the Kentucky-Argonne facility. We’re excited by this early success and are confident others will follow, especially as studies show that for every dollar invested in public research, there is up to four dollars invested by the private sector into industrial research and development.”

Kentucky plans to leverage biomass and biofuel resources as well.

“One of the goals in Kentucky’s  energy plan is to produce 12 percent of our motor fuels from biofuels by 2025. I still think that’s very achievable and we already have ethanol and biodiesel plants operating in the Commonwealth. The real potential for Kentucky lies in the more than 500,000 acres of farmland that can be converted to growing biofuels feedstocks, such as switchgrass, without impacting our food crops. This resource alone could provide more than 360 million gallons of ethanol per year,” Beshear said.

Gov. Beshear recently returned from another successful trade mission to Japan. Japanese-owned companies operate more than 156 facilities in Kentucky and the state has the second-highest Japanese foreign direct investment on a per capita basis. We asked the governor what has made Kentucky so attractive to Japanese investments.

“Japanese companies are drawn to Kentucky for a variety of reasons, including an extensive existing network of Japanese companies and the presence of multiple Japanese Saturday schools,” he said. “Because of our history with the Japanese business community, we also share a lot of personal connections and have built strong relationships over the years, which have cultivated a level of trust and confidence among companies to do business in Kentucky.”

Amazon has had a huge presence in the state for years, with several distribution/fulfillment centers and now a new customer service center. Beshear credited Kentucky’s geographic advantage as a decisive factor in the fierce competition among states for Amazon facilities.

“Kentucky is blessed with a great geographic location. Companies operating in our state can access over two-thirds of the U.S. market within a day. Logistically, this creates significant advantages in getting a product or service to market.  We are also home to the largest UPS Worldport Hub in North America and DHL’s U.S. hub, offering next-day service to the world,” the governor said.

Kentucky’s governor favors performance-based incentives like those available in the Kentucky Business Investment Program.

“All three forms of assistance [in the program] require companies to perform and each has its advantages,” he explained. “The difference is the timing of when the incentive is received.  Performance-based incentives require companies to perform prior to receiving an incentive. Companies must create jobs before claiming the wage assessment and be profitable before claiming a corporate income tax credit. Providing incentives after achieving a performance measure usually requires less time and resources than providing an up-front incentive.”

Ford’s assembly plant in Louisville.

Kentucky earned our 2011 Deal of the Year Gold Award for the new partnership with Ford, which will invest more than $1 billion in its Louisville plants and extend a relationship that stretches back nearly a century. Beshear outlined the critical factors that convinced Ford to double-down on its commitment to the state.

“We knew it would take a significant investment for Ford to retool.  As a result, we created new incentives allowing us to partner with Ford and reduce that burden so that more money could go into hiring employees, updating machinery, and ultimately improving their facilities,” he said. “Once their state-of-the-art manufacturing improvements were complete, we knew they would need a workforce capable of operating in an advanced manufacturing environment. Therefore, we committed $10 million to help Ford create that workforce. This type of commitment illustrated to Ford that Kentucky was in this partnership for the long haul.”

Gov. Beshear is confident the resurgence of manufacturing will continue to be a driver of the nation’s economic recovery, and Kentucky will help lead the charge.

“I am very confident that the resurgence of manufacturing in the U.S. will lead the economic recovery momentum, especially in the area of advanced manufacturing,” he said. “Kentucky has deep manufacturing roots, and it’s because of our strength in manufacturing, especially in the automotive industry, that our percentage employment increase rose faster than any other state in the eastern U.S. last year and was 7th highest overall.”

Gov. Beshear noted the irony of the manufacturing revival, especially in the wake of years of pronouncements by experts that manufacturing in the U.S. was “dead.”

“I’m just glad Kentucky didn’t drink the Kool-Aid,” the governor said with a smile.

The post FEATURE STORY: Building A Jobs Bonanza In The Bluegrass State appeared first on Business Facilities.

Gov. Lincoln Chafee

By Jack Rogers
From the March/April 2012 issue

Like many small states, Rhode Island was hit hard by the Great Recession. Sandwiched in the middle of the Boston-New York axis, the Ocean State faces the dual challenge of laying the foundation for 21st century growth, while retaining and stabilizing its traditional industrial base. Gov. Lincoln Chafee is meeting that challenge by focusing on the building blocks of the new economy: education, transportation and the skillsets needed to lure emerging high-growth industries.

Since taking office last year, Gov. Chafee has led delegations of Rhode Island leaders—including representatives of business and higher education—on visits to Baltimore, Houston and Pittsburgh to tour the University of Maryland Medical Center & BioPark, the Texas Medical Center, and the University of Pittsburgh Medical Center. These visits made clear to the delegation that the medical, research, and educational fields—the so-called “meds and eds”—are sectors primed for high growth.

Chafee has worked to maximize the opportunity to create a “med and ed” hub in the heart of Providence presented by the relocation of I-195, better known as the I-Way in the state’s capital.

“[The highway relocation] has given the city and state an historic opportunity to build on valuable, newly-opened land in the heart of the capital city and create quality jobs,” Gov. Chafee told Business Facilities in a recent interview.

In addition to the highway relocation, Brown University recently opened its new $45 million medical school, The Warren Alpert Medical School, in the heart of what is now known in Providence as the Knowledge District. Located about one mile away from the central campus, this was Brown’s first major teaching facility to be located off its College Hill site.  Housed in a 1928 converted jewelry factory, the four-story, 134,000-square-foot facility represents a catalytic moment for Rhode Island’s life-sciences industry. With the new medical school, the Knowledge District already is a thriving business hub that we will continue to build on as the development of the approximately 19 acres of I-195 land progresses.

The Knowledge District spans nearly 600 acres. More than 750 businesses already call downtown Providence home and they are surrounded by six world-class academic institutions and 530,000 square feet of active scientific and medical research space. The further development of the Knowledge District will encourage more academic-private sector partnerships. Also, from a redevelopment standpoint, the area will reconnect once-separated neighborhoods, strengthen Providence’s urban economic base and create an even more enjoyable community to live and work in.

Warwick Transit Hub Grows

Throughout history, economic growth has been tied to access to transportation. As a former mayor of Rhode Island’s second-largest city, Warwick, Gov. Chafee can attest to the value and potential of the city’s Station District. Anchored by T.F. Green Airport and the newly opened InterLink commuter rail station, it is a vital air, rail and auto transportation center-not just for Rhode Island, but for the region.

With a city-led master development plan in place, a planned runway expansion and an extension of commuter train service to southern Rhode Island, Chafee has made it a priority to work with the City of Warwick, area property owners and residents to capitalize on these transportation assets.

“Together, we will work with the private sector to develop and promote a mixed-use, transit-oriented business development and growth center in Warwick that is ideally located along the high-traffic I-95 Northeast corridor.,” the governor said.  “In addition to the master development plan, I commend the City of Warwick for also developing a streamlined permitting process and establishing zoning and land-use benefits to locate within the Warwick Station Development District.”

With office, hotel, residential and retail development opportunities, this project will serve as the gateway to Rhode Island and the rest of New England, connecting road traffic, commuter rail, and the T.F. Green Airport all in one central Rhode Island location, just a few minutes south of Providence.

Gov. Chafee recently held a series of community forums with small business owners in Pawtucket, West Warwick and Cranston. The governor has declared that 2013 will be “The Year of the Cities and Towns.”

“I have directed the Rhode Island Economic Development Corporation to create programs for small businesses, entrepreneurs and urban-based companies. My administration, has now begun to deploy $13.1 million in federal grant funds to promote small businesses growth and help entrepreneurs turn their ideas into reality.”

Quonset Business Park Thrives

Quonset Business Park is one of Rhode Island’s biggest success stories. Quonset has grown into the premier business park in New England and one of the largest in the Northeast. It is home to more than 165 companies, employing approximately 8,800 people in a variety of industries.

With 43 parcels left for lease, the Quonset Development Corporation (QDC) is taking an innovative approach to fill the remaining acres still available—QDC’s “Site-Readiness” program, which will expedite the permitting process. The QDC has partnered with the Rhode Island Department of Environmental Management (RIDEM) and the Coastal Resources Management Council (CRMC) to pre-permit each parcel to meet environmental requirements. The QDC has pre-engineered the parcels to replicate variage usage scenarios, including a potential building footprint, parking layout, and storm drainage designs that are consistent with regulations set forth by the RIDEM and CRMC. A due diligence package for each parcel has been developed that includes a complete review of the property, including an environmental phase I review, geotechnical soils review and borings, utility availability and capacity analysis, concept site plans and permits, and a land title review.

The QDC and the Park’s host community, the Town of North Kingstown, have also adopted a single set of land use controls, known as the “Quonset Zone,” creating a predictable path to development approvals. Most new tenants can begin construction on their new site within 90 days of taking control.

The post FEATURE STORY: Rhode Island Is Big On The Future appeared first on Business Facilities.

Kentucky is well known for its lush, blue-green pastures roamed by sleek thoroughbreds, and some of the smoothest whiskey on the planet.

But when it comes to economic development, the Bluegrass State rapidly is expanding its horizons into a wide range of job-creating sectors. Since the beginning of the year, despite the global economic downturn, the pace of activity actually seems to be increasing.

Perhaps the most significant developments have centered on Kentucky’s emergence as a national hub for the development of advanced transportation batteries. This was one of the goals embodied by the strategy set forth by Gov. Steve Beshear when he unveiled a 150-page plan called Intelligent Energy Choices for Kentucky’s Future.

” Kentucky can be a national leader in energy technology and production,” Gov. Beshear declared. ” We can help the country move toward greater energy self-reliance. I intend to put us on such a path.”

Beshear’s plan merges the development of new energy resources with environmental protection. ” For Kentucky to be a national leader, we must fully integrate the development of our energy resources with our mission to protect the environment,” the governor said. ” The seven strategies of my energy plan, when implemented, will restructure our energy portfolio in such a way that we can use energy in its broadest sense—as a tool for economic development and preserving our environment—which Kentucky desperately needs.”

Beshear’s blueprint will create nearly 600 jobs by increasing efficiency and renewable energy efforts in schools, farms, homes, government buildings and private sector initiatives throughout the Commonwealth. These projects will be funded by a $52.5-million allocation Kentucky is receiving in federal stimulus funds under the American Recovery and Reinvestment Act (ARRA). The funds will be utilized over the next three years, pending approval by the U.S. Department of Energy in the next several months.

” The programs that will receive the funding will have a wide-ranging and positive impact on the Commonwealth both immediately and for years to come,” Gov. Beshear said in announcing the energy blueprint. ” These programs are designed to support Kentucky’s strategy for energy independence [and] position Kentucky as a national leader in production, conservation and efficiency efforts.”

Beshear’s comprehensive energy plan calls for significant reductions in greenhouse gas emissions while creating some 40,000 jobs tied to energy production and conservation between now and 2025.

Specifics of the state’s proposed stimulus funding plan include:

• Purchasing and installing energy-efficient or renewable-energy equipment and materials for the retrofit of an advanced battery strategic planning facility.
• Dramatically improving energy efficiency in government buildings (by installing an Energy Management System).
• Establishing the Kentucky Green Bank, a revolving loan fund for energy efficiency improvements.
• Expanding an industrial/commercial sustainability program modeled after a U.S. Department of Energy program to increase the number of onsite energy efficiency assessments at industrial and commercial facilities.
• Supporting a Governor’s Office of Agriculture Policy initiative for a new on-farm energy efficiency and production program that will provide grants to farmers for energy assessments and for technical assistance in applying for USDA grants, thus creating increased funding opportunities for Kentucky farmers.
• Exploring the development of smart-grid concepts and their application in the state, and establishing a Home Performance with Energy Star program, which will provide energy assessments and improvement recommendations in existing homes.
• Expanding the Kentucky Energy Efficiency program in public schools, as well as the Green and Healthy Schools program, to help Kentucky schools better manage energy use, while also educating students, faculty and staff on efficiency and conservation efforts.

” Strengthening these programs will support approximately 150 new and retained jobs through a system of local energy managers, regional coordinators, technicians and engineers that will be available to guide school districts through the process of implementing energy efficiency programs,” said Len Peters, secretary of Kentucky’s Energy and Environment Cabinet. ” These programs help us reach our goals of increasing energy efficiency and significantly reducing our carbon output over the next 15 years.” Upon DOE approval, Kentucky will be authorized to spend up to 50 percent of the total allocation with the remaining balance being authorized based on demonstrated performance. The ARRA funds must be expended by 2012.

A National Center for Advanced Batteries

Gov. Beshear recently announced that the state has been selected as the site for a proposed domestic battery manufacturing and headquarters facility. The National Alliance for Advanced Transportation Batteries (NAATBatt) chose Hardin County’s Glendale as the home for a potential investment of $600-million to develop an advanced manufacturing facility for lithium-ion battery cells. Kentucky was selected over Texas, Illinois, Kansas, Missouri, New York, Pennsylvania and South Carolina.

NAATBatt, a not-for-profit industry consortium of more than 50 corporations, associations and research institutions, aims to make the United States a world leader in the manufacture of advanced lithium-ion or Li-Ion battery cells for transportation applications.

” This [puts] Kentucky in a prime position to be the country’s leading manufacturer of the clean-energy cars of the future,” Gov. Beshear said. ” Kentucky’s strong roots in the automotive industry, as well as its close proximity to suppliers, manufacturers and researchers, make it a natural fit for production of the next generation of hybrid technology batteries.”

The 1,551-acre Glendale site, which sits adjacent to Interstate 65 and the CSX rail line, will be submitted as part of NAATBatt’s application to the U.S. Department of Energy. Under the federal stimulus plan, the Obama administration has set aside $2 billion for electric drive vehicle battery and component manufacturing projects.

If successful in securing federal funding, NAATBatt would establish a manufacturing campus in Glendale, which would consist of a headquarters, a manufacturing facility used to refine products and production processes, and a larger operation designed for mass battery manufacturing. Total square footage of the campus is expected to reach up to 1 million square feet.

The lithium battery manufacturing operation could create as many as 2,000 new full-time jobs with an average annual wage exceeding $40,000. An estimated additional 1,500 construction-related jobs also would be created for a period of 12 to 18 months.

A week before the announcement of the Glendale selection, Gov. Beshear unveiled a partnership between the state, the University of Kentucky, the University of Louisville, and Argonne National Lab that initially will focus on lithium-ion battery manufacturing research and development.

” The Kentucky-Argonne partnership will help support President Obama’s goal to have one million Plug-in Hybrid Electric Vehicles on the road by 2015,” Argonne Director Robert Rosner said. ” It will help to bridge the gap between research and commercialization by facilitating the development and deployment of advanced manufacturing processes for lithium-ion and other advanced batteries.”

” Central Kentucky is an ideal location for a national Battery Manufacturing Research and Development Center,” said Larry Hayes, secretary of the Governor’s executive cabinet and interim secretary for economic development.

” Not only does Kentucky have an experienced auto-industry related workforce, but the region is within 500 miles of more than 4,800 auto-related vehicle manufacturers, including 69 vehicle assembly plants.”

From Nanoneedles to Peanut Butter and Jelly

Kentucky also is spurring cutting-edge development through the High-Tech Investment Pool administered by the Cabinet for Economic Development. The investment pool promotes research-intensive companies and projects with the goal of creating clusters of innovation-driven industries in the state.

NaugaNeedles, LLC in Louisville recently was awarded up to $120,000 for development of the company’s proprietary nanofabrication technology to grow flexible, constant-diameter, silver-gallium nanoneedles that can be used for enhanced mechanical, electrical, and electrochemical sensing and manipulation at cellular and molecular levels. Based on this technology, the company has six categories of products that are fully developed and ready for commercialization.

A client of the Louisville Innovation and Commercialization Center, NaugaNeedles anticipates it will create a minimum of seven full-time, high-tech and technical support jobs for Kentucky residents by 2012, paying an average annual salary of approximately $64,000, exclusive of benefits.

Not all of the new business initiatives in Kentucky are high-technology oriented. Some of the them are familiar and rather tasty.

J.M. Smucker LLC recently announced it will add a new production line to its Scottsville plant, investing $3 million dollars and creating an additional 25 jobs in the community. The Kentucky Economic Development Finance Authority approved tax incentives for the project up to $550,000 under the Kentucky Rural Economic Development Act, an incentive program designed to increase manufacturing employment in the state.

Currently, 288 employees work at the Scottsville plant, which makes Smucker’s Uncrustables frozen peanut butter and jelly sandwiches. The additional line will bring a new ” grab and go” waffle product to the plant.

Kentucky also is making sure there will be something nice to wash down all that peanut butter and jelly. Last month, Gov. Beshear and Sazerac North America announced the expansion of two Kentucky distilling operations, located in Frankfort and Owensboro. The expansions represent a combined investment of nearly $28 million and will result in approximately 89 new full-time jobs in the Commonwealth.

In an effort to create efficiencies, increase utilizations and become globally competitive, Sazerac is expanding the Buffalo Trace Distillery in Frankfort. An estimated $9 million in additional machinery and equipment will be purchased, resulting in the addition of 39 new jobs to the current workforce of 270.

Sazerac, which recently purchased a significant portion of Constellation Spirits, Inc., also will add 300,000 square feet to its Owensboro facility at an estimated cost of $10.5 million. The expansion will require the purchase of $8.25 million in new machinery and equipment. Approximately 50 new jobs will result from the project. Current employment at the facility totals 188.

Buffalo Trace Distillery, Inc. in Frankfort and Sazerac North America in Owensboro were approved for tax benefits under the Kentucky Industrial Development Act for up to $3.28 million by the Kentucky Economic Development Finance Authority (KEDFA). KEDFA also preliminarily approved Sazerac for up to $1.41 million in tax incentives under the Kentucky Jobs Development Act for the possible location of certain administrative offices in Louisville.

If successful in bringing the new location to Kentucky, the project would consist of a 10,000 square-foot facility and eventually 51 new full-time employment opportunities.

Thoroughbred of Call Centers Up and Running

Another recent success story in Kentucky’s efforts to diversify its economic base can be found in Paducah, where the Thoroughbred Research Group, the City of Paducah, McCracken County, and the Greater Paducah Economic Development Council came together to establish a call center operation in the heart of the city.

Louisville-based Thoroughbred Research Group (formerly known as Wilkerson & Associates) is a survey research firm that operates four other call centers in the state (including operations in Henderson, Hopkinsville and Madisonville). Current clients include Duke Energy, Gannett Newspapers, Columbia Gas, the National Football League, and the Center for Medicaid and Medicare Services of the federal government.

CEO Steve Alsbury projects employment of 100 and 15 percent annual growth within the year for the operation. ” This call center operation in Paducah will improve our overall efficiency,” he said. ” Paducah works because of the quality of employees we are attracting, the central time zone location, and the location of our facility in the Village Business Center.”

Mayor Bill Paxton welcomed the new project to Paducah by saying that ” Thoroughbred Research Group is an excellent example of a Kentucky firm continuing on the path of success. The decision by [Thoroughbred Research Group] is evidence of the importance of our large labor pool and the added advantage we offer due to our central location.”

McCracken County Judge Executive Van Newberry added, ” Thoroughbred Research Group is a Kentucky-based company servicing national accounts and Fortune 500 companies. The firm had several options for this call center. In the final analysis, Thoroughbred Research Group [decided that] Paducah/McCracken County offers tremendous resources for this growing company.”

Value-add automotive manufacturing services

As he drives to create new industries in Kentucky, Gov. Beshear isn’t overlooking the expansion of established sectors. Beshear and Economic Development Cabinet Interim Secretary Larry Hayes recently announced that TMS Automotive, LLC will establish a new operation in Bowling Green. The start-up automotive company will offer value-added manufacturing to customers in the region, including Metalforming and Dana Corporation.

” The start-up of TMS Automotive is a wonderful addition to the Bowling Green community and the entire Commonwealth,” said Gov. Beshear. ” Kentucky is well-known for its strong automotive roots and TMS Automotive is a perfect fit to our corporate landscape. We look forward to continuing our partnership as the company grows and prospers here in south central Kentucky.”

Approximately 35 new jobs will result with the location of TMS Automotive, whose process includes removing unwanted residue from metal, acquired through stamping, then applying a rust-prevention coating. The project will entail a capital investment of $2.17 million.

” TMS is eager to locate in Bowling Green-Warren County because of the strong state and community support we have received during the decision-making process,” said Michael R. Hall, president of TMS Automotive, LLC. ” Our location here will allow us to best serve our automotive industry partners located in the area.”

The Kentucky Economic Development Finance Authority preliminarily approved TMS Automotive for tax benefits up to $260,000 under the Kentucky Industrial Development Act.

” We’re very excited to watch TMS Automotive’s growth in Bowling Green,” said Bowling Green Mayor Elaine Walker. ” By locating here, this company will create 35 new jobs within two years—jobs that will support the local automotive industry.”

” It’s another great day in south central Kentucky when we can make an economic development announcement such as this,” said County Judge Executive Michael Buchanon. ” By creating new jobs and nearly $2.2 million in capital investment, TMS Automotive is solidifying its commitment to economic growth in our region.”

From thoroughbred horses to thoroughbred vehicle power systems, from comfort food to even more comfortable bourbon, Kentucky is merging the best of the last century with the opportunities of the emerging era, and doing it in style.

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Nowhere has this year’s economic debacle hit harder in the United States than in Michigan. The state that is synonymous with a U.S. auto industry on the brink of bankruptcy currently is suffering with the nation’s highest double-digit unemployment rates.

To add insult to injury, the crown jewel of Michigan’s economic development efforts—a $17-billion project between Midland, MI-based Dow Chemical and the government of Kuwait—was canceled abruptly by the Kuwaitis earlier this year when they felt the bite of the sudden plunge in the price of oil.

So it is understandable if you wouldn’t expect to hear a lot of good news coming from the crown of the Great Lakes these days. But you would be wrong.

Governor Jennifer Granholm and her economic development team have been extraordinarily busy since the beginning of the year. Hardly a week goes by without the announcement of a major new job-creation initiative from the governor’s office. More than a dozen new projects expected to create nearly 9,000 new jobs and an investment of more than $300 million in the state have been unveiled since the beginning of the year, and Granholm says more are on the way.

Diversification has been the watchword of Michigan’s counterattack against the pervasive economic gloom.

“We are undertaking the most aggressive economic diversification strategy in the nation, and helping Michigan manufacturers expand into new, high-growth sectors is a critical component of that effort,” Granholm says.

“Despite these challenging economic times, our strategy is producing results for communities across Michigan, and we will continue to go anywhere and do anything to bring new jobs to our state,” she declares.

The state has formed a coalition of state, local and community officials called Keep Michigan Working (KMW) to develop short- and long-term solutions to keep workers and businesses in Michigan, primarily through diversification.

A successful statewide diversification conference, held by the Michigan Economic Development Corporation in November, will be replicated on the local level this year with 12 regional summits aimed at Michigan manufacturers with the resources and/or capacity to diversify. The summits are targeting more than 2,500 companies with a goal of $1 billion in contracts.

Michigan’s New Economy: Not Your Father’s Gas-guzzler

It’s time to put away the stereotype of Michigan’s economic engine as an archaic, gas-guzzling eight-cylinder clunker. The emerging Michigan economy is staking a claim as a research leader in everything from electric car batteries for tomorrow’s transportation to rare isotope beams used in linear accelerators that promise to unlock the secrets of nuclear astrophysics.

And, believe it or not, Michigan is making a bid to become the Hollywood of the upper Midwest.

“Companies in every industry, from film production to alternative energy, are choosing to invest in Michigan because of our world-class workforce and competitive business climate,” Granholm notes.

In January, Granholm announced an aggressive film production effort designed to create almost 6,000 new jobs in the Wolverine State, including 4,066 new film, animation and programming jobs. Three companies—Wonderstruck Studios, Motown Motion Pictures and Stardock Systems—plan to invest more than $156 million in locations in Detroit, Pontiac, and Plymouth, MI.

Wonderstruck is creating the Detroit Center Studios, an $85.9-million investment that will create 700 jobs and make downtown Detroit a hub for computer-generated visual effects and animated content. The Michigan Economic Development Corp. (MEDC) arranged a state tax credit worth about $17 million over 12 years to convince Wonderstruck to choose the Detroit location over competing sites in China and Korea. Motown Motion Pictures, a new film production venture, will invest $70 million in a 600,000-square-foot studio with nine sound stages in Pontiac, creating more than 5,000 jobs. Stardock, which received a $1.2-million tax credit from the state, is creating 154 new jobs at its existing facility in Plymouth to expand the production of PC video games. Michigan State University staked its claim as a leading advanced research center recently when its East Lansing, MI campus was chosen by the U.S. Department of Energy as the site for DOE’s $550-million Facility for Rare Isotope Beams (FRIB).

The research facility is expected to bring $1 billion in economic activity and 400 jobs to Michigan, according to an analysis by the Anderson Economic Group. FRIB will provide intense beams of rare isotopes—short-lived atomic nuclei not normally found on Earth—that will enable physics researchers to address leading-edge questions in nuclear structure and nuclear astrophysics, such as the origins of basic elements.

FRIB will build on the success of MSU’s National Superconducting Cyclotron Lab, which has become a recognized leader in rare isotope research that has led to breakthroughs in medicine, materials research, and national security applications. While automotive manufacturing has been clobbered by the recession, Michigan continues to make progress in establishing itself as an alternative energy hub for everything from advanced electric batteries to wind- power turbines.

MEDC recently granted Ford Motor Co. a $55-million incentive in refundable tax credits to continue the Dearborn, MI-based automaker’s work in electric vehicle and battery development. The incentive will accelerate Ford’s aggressive electrification strategy, which aims to bring at least four electric-powered vehicles to market by 2012.

The state also is expanding its advanced automotive research outside of the metro Detroit area. For example, Mercedes-Benz is expected to hire more than 200 workers for a hybrid technologies research and development center that will be relocated from Troy, MI to Washentow County. The center will be the first major alternative propulsion technology operation in the Ann Arbor, MI region, which is steadily assembling a range of companies devoted to advanced batteries and electric-vehicle technology.

Mercedes-Benz Hybrid LLC, a subsidiary of Daimler North America, is said to be seeking a 65,000-square-foot facility to establish what will be called the Mercedes-Benz Engineering Center for Powertrains USA.

Also in Ann Arbor is Sakti3, a venture-capital startup said to be close to commercializing an advanced battery manufacturing process; Advanced Battery Coalition for Drivetrains, a five-year, $5-million project joining University of Michigan researchers and General Motors engineers in electric-vehicle research; and A123Systems, a Massachusetts-based battery development company that is seeking federal energy loans to build a billion-dollar battery production plant in southeast Michigan.

On the wind-energy front, Great Lakes Towers LLC is planning to invest $19 million to locate its first manufacturing facility in Monroe, MI. The company expects to produce more than 500 wind towers annually at the site, creating about 290 new jobs. The Michigan Economic Growth Authority (MEGA) approved a state tax credit of $3.7 million to convince the company to choose Michigan over Ohio.

Even old-line automotive suppliers are busy reinventing themselves in Michigan. Metal fabricator W Industries is investing $36 million to expand its operations in Detroit and diversify into the aerospace and defense sectors. The project, which received a $9.7 million tax credit from MEGA, will create 943 new jobs.

Ironically, two mega-projects that were the primary reason for Michigan’s emergence as Business Facilities’ 2008 State of the Year Award winner currently are in a state of flux. Dow, which originally intended to use $9 billion from the K-Dow deal with Kuwait to finance its purchase of competitor Rohm & Haas, says it still expects to receive at least a $1 billion investment from the Kuwait Investment Authority to help it fund the $15-billion Rohm purchase, expected to be finalized this month.

General Motors, meanwhile, had some disappointing news for Flint, MI, when it disclosed that as part of its drive to remain solvent, the largest U.S. automaker would retool an existing plant in the city to produce electric-car batteries for its upcoming Chevy Volt rather than build a new facility on a Brownfield site in Flint.

Despite these setbacks and the depressing state of the economy, we can report without hesitation that Michigan is still in motion—and it is clearly moving forward.

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Jersey City, NJ—New Jersey’s Premier City (Mayor Jerramiah T. Healy)

They don’t call Jersey City the “Gold Coast” for no reason. A city in the midst of a renaissance, Jersey City is experiencing growth in many fronts, and particularly with the influx of various financial and commercial institutions that are now calling Jersey City’s downtown business center their home.

There are many reasons that make Jersey City a wise and attractive choice for businesses to establish or revitalize themselves, take a new lease if you will. Each motivation is strongly compelling on its own.

WHY PAY MORE?

In Jersey City, there is no city income tax, corporate tax, payroll tax, or commercial rent tax. Compared to Manhattan, utility rates are 30% lower, operating costs are 35% less, and the average advertised rent for Class A office space is one-third more economical. Jersey City’s tax programs are designed to let you keep the money you’ve earned.

LOCATION, LOCATION, LOCATION

As part of the Tri-State Area business corridor, Jersey City and surrounding communities bring you top-tier infrastructure and resources. This includes people and technology from telecommunications providers, manufacturing and industry, universities and state-of-the-art medical facilities. Equally important is Jersey City’s accessibility, by railway, waterways, buses, and other public transportation. The heart of downtown Manhattan, Atlantic Ocean seaports and Newark International Airport are only minutes away.

WELCOME

Jersey City rolls out the “Welcome” mat for you with all the support and resources it makes available to help your business start, grow, and flourish. The state’s Business Employment Incentive Program (BEIP), Business Relocation Assistance Grant (BRAG), Employee Training Grant (ETG), Urban Enterprise Zone (UEZ), and local pro-business policies make a Jersey City address even more desirable.

Do we need to say more? In just the last six years alone, Jersey City gained 35,000 new jobs and $3.8 billion in capital improvements. An additional $52 million nurtured the inner city through 60 UEZ programs.

How about asking your potential neighbors what they think of Jersey City? Goldman Sachs; JPMorgan Chase Bank, Inc.; Morgan Stanley; Merrill Lynch; Lehman Brothers; ICAP North America, Inc.; Fidelity Investments; Knight Equity Markets, LP; ISO (Insurance Services Office, Inc.); and Forest Laboratories are some of the entities that have made their way to Jersey City.

So what else is on the Jersey City horizon? How about a condominium complex, featuring a championship golf course, neighboring Liberty State Park. Or residential buildings being developed in the Powerhouse Arts District, providing live/work spaces for artists. Yes, we almost forgot to mention that Jersey City is also a great place to live. That’s a new conversation altogether.

It’s really a simple choice. If there’s a will, there’s a way for you to have Jersey City as your next destination.

Contact Information

Jersey City Economic Development Corp.
30 Montgomery Street,Suite 820
Jersey City, NJ 07302
Phone: 201-333-7797
Fax: 201-333-9323
Web: www.jcedc.org

Decatur, Illinois – America’s Agribusiness Center (Mayor Paul Osborne)

Located in the heart of the Midwest, Decatur, Illinois, is like no other city in America. With a metro area population of 125,000, Decatur is the focal point of national and international business concerns and quality of life activities and venues in east central Illinois.

The Decatur region has long been known as America’s Agribusiness Center thanks to the presence of global leaders like Archer Daniels Midland (ADM) Corporation, Tate & Lyle North America and Caterpillar. But while Decatur’s presence as a manufacturing powerhouse is well-established, it is also recognized around the world for its the cutting edge of research and development, engineering, life science and biotech research.

In fact, despite belief that past perceptions are today’s reality, engineers, scientists, technicians and other managerial and professional occupations make up the largest part of the Decatur area workforce in addition to a large pool of workers experienced in all aspects of manufacturing, biotechnology and agribusiness. Best of all, they are setting the standard for productivity, reliability and innovation at home and around the world.

Scientists and researchers at the Decatur-based global headquarters of ADM, Tate & Lyle, and other companies, are creating innovative ways to feed the world and at the same time developing advanced polymers, alternative fuels, and lifesaving pharmaceuticals from renewable resources. Decatur has recently experienced an explosion in the health care industry with planned medical center expansions totaling nearly $75 million. Health science professionals have chosen Decatur as their place of business due to a highly skilled workforce, access to nearby medical research centers and the pro-business attitude of Decatur-area community leaders.

Decatur boasts outstanding business-oriented educational resources through Millikin University’s Tabor School of Business and Richland Community College’s manufacturing center and business curriculum. Within a one hour drive of Decatur you will find the Schools of Medicine for both the University of Illinois and Southern Illinois University, providing the latest in health care technology and research. Also in close proximity are renowned educational institutions like the University of Illinois at Urbana-Champaign, Illinois State University, Bradley University, Eastern Illinois University and the University of Illinois at Springfield.

In today’s global economy, businesses require integrated transportation systems that meet their regional, national and international distribution needs. Decatur is uniquely positioned and ready to meet these needs through its world class transportation system which includes a Foreign Trade Zone, U.S. Customs Point of Entry, Norfolk Southern, CSX and Canadian National Railroads, a world class airport facility capable of handling aircraft of all sizes, proximity to three major Interstates and a centralized location situated between Chicago and Memphis, Indianapolis and Kansas City. With nearly $600 million in capital investment planned or underway in the region, it is easy to see why more and more businesses are looking to Decatur for logistics, distribution and manufacturing projects.

Combine this with a venture capital fund dedicated to businesses who locate in Decatur and Macon County, aggressive local and state economic development incentives, infrastructure, and optimal location, you have all of the ingredients for success.

It is easy to see why more and more businesses See Decatur in a Whole New Light!

Contact Information

Economic Development Corporation of Decatur and Macon County
Craig Coil, President
101 South Main Street,Suite LL5
Decatur, IL 62523
Phone: 217-422-9307
Fax: 217-422-9307
E-mail: ccoil@DecaturEDC.com
Web: www.DecaturEDC.com

New Lenox, Illinois—Home of Proud Americans (Mayor Tim Baldermann)

Located in Will County, among the 10 fastest growing areas of the nation, the Village of New Lenox offers business and residents a progressive local government, a key location on Interstate 80 and I-355, low Will County taxes, and an unbeatable quality of life. New Lenox is poised for industrial and business growth thanks to its convenient location. Access to U.S.Route 30 and I-80 provides connections with I-57 to the east and I-55 to the west. Rail commuters use the Metra/Rock Island line and travel time to the Loop in Chicago is less an hour from either New Lenox Metra Station.

In November 2007, the Illinois State Toll Highway Authority completed construction and opened the extension of Interstate 355 into New Lenox at a cost of $730 million. The I-355 extension provides access to the north and western suburbs and has attracted high quality development to the area. Zaremba Group proposes to build a 1.1 million square foot power town at the I-355 and U.S. 6 interchange, to open in the summer of 2009. Forest City Enterprises expects to develop a 1.5 million square foot lifestyle center at the I-355 interchange with a 2011 opening date. Silver Cross Hospital is awaiting state approval to build a new 300-bed hospital on a 70-acre parcel at I-355 and Clinton Road at a cost of $450 million.

Growth is happening all over New Lenox. In the Cherry Hill Business Park, OOCL is leasing Cherry Hill #4, a 282,000-square-foot industrial spec building for its Midwest distribution center. Smurfit Stone Container Co. has begun operations in a 363,000-square-foot manufacturing facility in the Cherry Hill Rail Park. Smurfit will manufacture 2 billion square feet of corrugated cardboard annually at their New Lenox facility.

Along U.S. 30, the New Lenox Retail Center will contain more than 500,000 square feet of retail with Wal-Mart and Menards as anchors and more than 10 outlets. Lincolnway Creekside Crossings broke ground on a 70,000-square-foot, two-story, mixed-use building with one retail outlet. Perry Commercial is building the Briarwood Professional Center on U.S. 30 that will contain four professional office buildings.

Village Station is a transit-oriented development (TOD) which is slated for development on the south end of New Lenox at the intersection of Laraway and South Cedar roads. Village Station is approved for 62 commercial acres and 836 PUD residential units on a grand total of 236 acres. This property is serviced by the Metra Southwest Service Corridor line located on the former Wabash Railroad line. In September 2006, the second Metra station in New Lenox opened at Village Station for daily passenger service.

New Lenox’s population is growing as well. A special census recently was conducted and estimates the New Lenox population at 25,000 residents; it is expected to reach 100,000 by 2030.

Residents have a median household income of $96,745. For the past decade, about 300 new homes have been built each year in New Lenox.

Lincoln-Way West High School is under construction in New Lenox at a cost of about $100 million and will open to students in August 2009. New Lenox Elementary School District #122 and Lincoln-Way Community High School District #210 are gold medal and blue ribbon award winners.

One thing that is not growing is the tax rate: New Lenox has one of the lowest tax rates in Will County (6.4216 per $100 assessed valuation) creating an opportune climate forbusiness expansion and development.

New Lenox strives to balance residential, commercial, and retail growth, maintaining a healthy economy and a great quality of life. It’s easy to see why New Lenox is a logical place to operate your growing business.

Contact Information

Village of New Lenox Economic Development
Randall Lowman, Director
1 Veterans Parkway
New Lenox, IL 60451-2137
Phone: 815-462-6400
Fax: 815-462-6449
Email: rglowman@newlenox.net
Web: www.newlenox.net

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