FL Gov. Crist Announces Budget

Gov. Charlie Crist on Friday outlined his proposed $66.5 billion budget, which includes $4.7 billion in federal stimulus dollars.

His recommendations include investments in education, workforce development and career training, transportation and energy conservation.

The governor said his proposed 2009-10 budget will create or retain 314,590 jobs.

Florida is slated to receive $12.2 billion of the $787 billion included in the American Recovery and Reinvestment Act over three years.

Among Crist's proposals:

• $31.2 billion in funding for all phases of education, including almost $1.8 billion of federal stimulus funds.

• $8.9 billion for economic development projects that create or retain 314,590 jobs. These jobs are in addition to the 206,000 Florida jobs expected to be created by the $12.2 billion pumped into Florida’s economy by the American Recovery and Reinvestment Act of 2009 over three state fiscal years.

• $5.1 billion to build and maintain the roads, bridges and public transportation facilities, which Crist said would create or retain an estimated 142,800 jobs throughout the state. An additional $1.4 billion provided by the American Recovery and Reinvestment Act of 2009 will go toward shovel-ready projects that can be initiated within 180 days, creating or retaining an additional 24,200 jobs.

• $157.1 million for the Office of Tourism, Trade and Economic Development, which he said will create or retain 43,291 jobs.

• $4.9 billion to maintain support for Florida’s increasing prison population and continue programs to reduce recidivism, prevent juvenile crime and keep violent criminals off the streets.

• An increase of $45 million for cash assistance program and food stamps, which provides temporary assistance to families and their children, to ensure funds are available for families and children critically impacted during these challenging times.

• $294 million for the Medicaid for the Aged and Disabled Program to restore 12 months of Medicaid health care coverage for 13,000 elderly and disabled individuals.

• $470 million for the Medically Needy Program to restore 12 months of Medicaid health care coverage for 21,000 individuals who have extremely high medical bills in relation to their annual income.

• $52 million for increased enrollment in the KidCare program to support an additional 46,000 children.

Crist also called on the Legislature, once more, to quickly approve the 25-year compact he signed between the state and the Seminole Tribe of Florida, which he said would provide billions of dollars to Florida’s schools throughout the duration of the agreement.

The agreement, signed in November 2007, would allow the tribe to install Las Vegas-style slot machines and card games in their casinos in exchange for $375 million over the first three years of the agreement, and at least $100 million a year after that.

However, in July, the Florida Supreme Court ruled that Crist did not have the authority to sign the pact.

The Florida Legislature will consider his recommendations when their session begins in March.

Oregon: A Wind Winner

Western Community Energy (WCE), a community-based wind energy developer, is already expanding its headquarters in Bend, Ore., after choosing to relocate to the state just six months ago.

"Over the course of the last several years, Oregon's sustainable industries have truly begun to thrive," says Tim McCabe, director of the Oregon Economic & Community Development Department (OECDD). "WCE is just one of many innovative companies that have discovered the state and the Governor's commitment to sustainable industries and especially renewable energy."

Oregon has become a hotbed of renewable energy companies in a variety of sectors such as solar, wind, geothermal and tidal. The wind energy sector in Oregon has continued to grow over the years and has attracted major companies such as Vestas, the world’s leading supplier of wind power, which has announced plans to expand its North American headquarters in Portland, OR.

According to WCE’s Chief Financial Officer Michelle Betz, the company chose Oregon for its headquarters because of the state’s commitment to renewable energy through a variety of financial and tax incentives and programs such as:

• the Oregon Business Energy Tax Credit (BETC), which covers up to 50 percent of a qualifying project’s applicable costs;
• the Energy Trust of Oregon (ETO), which provides resources and cash incentives to help homeowners, farms, ranches, businesses and government entities install wind power projects of up to 20 megawatts; and
• the Small Energy Loan Program (SELP), which promotes energy conservation and renewable energy resource development by offering low-interest loans for qualifying projects.
  

“From a financial perspective Oregon is a fantastic place for our company to do business,” says Betz. “In addition, the state seems to understand at a very basic level the importance of promoting renewable energy projects.”

WCE plans to capitalize on Oregon’s bounty of wind as well. In total, WCE booked $1.4 million in wind energy projects in 2008. To put perspective on the increase in projects for WCE, the company already booked $8.2 million in new projects in the first 15 days of January 2009. The company currently employs seven full-time employees and expects to hire an additional 11 employees within the next month.

One major project that WCE recently completed is the Banner Wind Project, Alaska’s largest wind farm located in the city of Nome. A joint venture between Bering Straits Native Corporations and Sitnasuak Native Corporation, the 1.17 megawatt project will offset nearly 200,000 gallons of diesel fuel per year and nearly double Alaska’s installed wind capacity.

World’s largest cellulosic ethanol facility to be built in Florida

Highlands County, FL, soon will be home to the world’s largest facility to make biofuels from inedible plants, including grasses, according to an announcement from BP PLC and Verenium Corp.

The British energy giant is investing $112.5 million in Verenium and received a 50% stake in licensing the company’s technology as part of the project. The new facility, which will cost an estimated $300 million, will be 25 times larger than Verenium's pilot biofuels project with BP in Mermentau, LA, which was commissioned last month and currently is the world’s largest cellulosic ethanol operation.

Verenium, based in Cambridge, MA, said the Florida facility will make 36 millions of gallons of fuel a year and is aiming for a cost of $2 a gallon, roughly on par with gasoline. The plant will use Verenium's specialty enzymes to turn renewable grasses grown adjacent to the plant site into cellulosic ethanol, the company said. The project has received a $7-million grant awarded under the Florida Agriculture and Consumer Services Commission’s $25-million ''Farm to Fuel'' initiative.

According to a report in today's Wall Street Journal, the rapid move from a demonstration-scale refinery to a full-scale biofuels facility reflects the growing interest in cellulosic ethanol, which comes from breaking down plant material and turning it into ethanol that can be used to displace crude-oil-based fuels in cars and trucks.

The joint venture between BP and Verenium also is planning to build a second full-scale facility on the Gulf Coast. Other oil giants, including Exxon Mobil and Royal Dutch Shell are believed to be aggressively pursuing development of next-generation biofuels.

The push for biofuels also is expected to get a big boost from the Economic Recovery stimulus bill recently passed by Congress and signed by President Obama. The bill allocates more than $12 billion to fund grants and loans for alternative energy projects.

There has been increased interest in recent months on cellulosic ethanol, made from inedible grasses and leftovers from agricultural production, after the growing use of corn-based ethanol was blamed last year for using up crops and driving food costs higher. Verenium's Louisiana plant uses crushed sugar-cane stalks, and the Florida facility will use grasses.

The U.S. government mandates requiring big increases in the amounts of renewable fuels to be used in the nation's gasoline tanks -- at least 16 billion gallons of cellulosic ethanol by 2022, representing about 7% of total transportation-fuel consumption, up from a negligible amount today, according to the Journal report.

Abengoa SA, a Spanish company, is building cellulosic ethanol plants in Spain and Kansas.

Maryland Expands International Reach

As many as 150 jobs are expected to be created in Maryland in the next few years by foreign companies that set up operations in the state within the past year, state officials said recently.

Thirteen companies from Israel, Russia and countries in Europe and Asia have opened Maryland offices in the past 10 months, compared with just two new foreign companies that the state helped to attract in 2007, officials said.

Gov. Martin O'Malley and economic development officials said stepped-up outreach efforts are paying off. Companies in bioscience, energy, technology, defense and aerospace industries have opened in Howard, Harford, Baltimore, Anne Arundel, Montgomery, Prince George's and Charles counties.

"They're really beachheads," said Christian S. Johansson, acting secretary of the Maryland Department of Business and Economic Development. "These companies want to do business in the U.S., and as these companies are successful, Maryland becomes that launching pad and the place for those operations."

It's even more crucial in a recession to aggressively court foreign companies as a source of new jobs, O'Malley said in a statement. Foreign employers pay their workers, on average, 32 percent more than the national average wage, Johansson said.

Maryland, like every other state, is facing rising unemployment amid the worsening economy. The state's jobless rate spiked to 5.8 percent in December, the latest figures available and a 15-year high. The state lost jobs during a 12-month period for the first time since 2003, according to preliminary statistics released last month by the U.S. Labor Department.

In January alone, the state received notifications from several private employers about pending layoffs and closures affecting more than 600 employees, mostly starting in March.

Despite the slowdown, the manager of Mecanique d'Aquitaine, one of the 13 new foreign companies, said yesterday that he feels confident about longer-term prospects of expanding in Maryland, where the company hopes to tap into demand in the aerospace industry. The company, a subsidiary of a company based in southwest France, opened in October in Jessup with five employees. It makes precision parts for aircraft, with customers including Boeing Co.

"We have good leads and are talking to the right people," said Raphael Coeffic, Mecanique's manager. "We feel very confident we can win contracts."

The state's international business team has led economic development missions to targeted countries to promote the state, including one in September that visited Russia, China, South Africa and Finland. The state also has opened new trade offices in Japan, Canada, South Africa, Brazil and Montenegro. The department had an international travel budget of $146,000 in fiscal 2008.

(Written by Lorraine Mirabella, Baltimore Sun, February 12, 2009)

Michigan Making Movies

Governor Jennifer M. Granholm announced on Tuesday Michigan’s aggressive film production attraction efforts will create 5,993 new jobs in Michigan, 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 Detroit, Pontiac and Plymouth locations.

“We are working hard to build a diversified economy and create good-paying jobs in Michigan,” Granholm said. “As a result of our aggressive film incentives we are not only bringing new investment to Michigan, we are laying the foundation for an industry that will support long-term job growth for our citizens.”

The three projects announced today are:

• Wonderstruck Studios LLC – The new venture, to be known as Detroit Center Studios, will produce computer-generated (CG) visual effects and animated content. It plans to invest $85.9 million to create a digital pipeline, used to pull in numerous CG and digital animation projects, in downtown Detroit. The project is expected to create 700 new Michigan jobs, including 413 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $16.9 million over 12 years to help convince the company to expand in Michigan over competing sites in China and Korea. In addition, Infrastructure Development Film and Digital Media incentives totaling $11.7 million have been approved to help support the project. The city of Detroit is considering abatements to support the project.

• Motown Motion Pictures LLC – The new business venture, which will be both a film studio and a production services company, plans to invest approximately $70 million in a 600,000-square-foot development with nine sound stages in Pontiac. The project is expected to create 5,139 new jobs, including 3,600 directly by the company. Based on the Michigan Economic Development Corporation’s (MEDC) recommendation, the Michigan Economic Growth Authority board (MEGA) approved a state tax credit valued at $101 million over 12 years to help bring the project to Michigan. In addition, Infrastructure Development Film and Digital Media incentives totaling $12.9 million have been approved to help support the project. Job training assistance through the MEDC and Renaissance Zone designation by the city of Pontiac are also under consideration.

• Stardock Systems Inc. – The software developer and publisher will invest $900,000 to expand at their current location in Plymouth Township to allow for the implementation of a new PC game. The project will create 154 new jobs, including 53 directly by the company. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $1.2 million over 10 years to help convince the company to expand in Michigan over competing sites in New York, Seattle, Los Angeles and San Francisco. In addition, Infrastructure Development Film and Digital Media incentives are under consideration and Plymouth Township is considering abatements to support the project.

Munich Airport Touts Job Growth

Even under difficult economic conditions, Munich Airport remains a reliable engine for growth and employment. The three biggest companies at the airport - the Lufthansa Group, the Munich Airport operating company and its subsidiaries (FMG), and the airport security company (SGM) - alone have increased their total workforce by 2,800 to more than 18,300 since the summer of 2006. At the FMG annual press conference on February 3, airport CEO Dr. Michael Kerkloh said, "This shows that the Munich Airport job-generating engine has continued to move full speed ahead during the past two and a half years." During the past five years nearly 5,000 people have found new jobs with the three biggest companies at Munich Airport.

At present approximately 30,000 people are employed at the airport by more than 500 companies and public-sector bodies. This means that the total workforce has more than doubled since the airport opened in May 1992 at its location in the Erdinger Moos region. Moreover, the airport is the region's biggest provider of vocational training opportunities, with more than 650 apprentices and trainees using tools and manning desks across the entire airport as they gain qualifications in the most diverse range of occupations imaginable.

The impact on employment extends far beyond the airport fence: Statistically, every job at the airport generates up to two additional jobs outside the airport with suppliers, maintenance companies and other airport-related businesses. Just as significant are the airport's so-called catalytic effects as an infrastructure facility, in other words its impact on the region and the economy: According to a new study by the European Center for Aviation Development in Darmstadt (ECAD), for instance, the excellent flight connections were an important or very important factor for 88 percent of the international companies in the airport region when selecting their location. Consequently, the surveyed companies stated that they welcome the planned capacity expansion in the form of a third runway, which 82 percent of the respondents believe is linked to a boost in regional competitiveness and economic development. Another example from the ECAD study: The purchasing power of the foreign guests arriving by air secures 44,000 jobs in the Munich Region alone.

Especially in the difficult economic situation at present, Kerkloh sees the airport expansion as a key cornerstone for ensuring that the airport can remain a reliable partner in the employment market. "As the results of the study once again make very clear, the expansion of Munich Airport is not a matter of growth for growth's sake. It benefits the entire economic area and the people who live and work here," says Kerkloh.

ConvaTec to Expand in Greensboro

The Greensboro Economic Development Alliance just announced a significant expansion by ConvaTec, a global medical device manufacturer and long-time Greensboro employer. The company will expand its ostomy wafer line and attract a new ostomy pouch operation to its 211 American Avenue plant.

ConvaTec plans to hire 30 machine operators and mechanics at an average wage of more than $44,000 per year. The company will convert warehouse space to manufacturing, and invest $19.55 million in machinery, equipment and building projects.

“As a medical device company, ConvaTec is an important part of our local life sciences industry. Securing this expansion here in Greensboro should help keep the local facility viable and growing for the longer term,” stated Dan Lynch, president of Greensboro Economic Development Alliance. “By partnering with the local facility and showing local and state support for this project, we were able to convince the company to grow in Greensboro rather than overseas.”

Formerly a division of Bristol-Myers Squibb Company, as of August 1, 2008, ConvaTec is owned by Cidron Healthcare Limited. The company focuses on four key business divisions – ostomy care, wound therapeutics, continence and critical care and infusion devices. ConvaTec has received the North Carolina “Star” Certification recognizing that the company is a leader in health and safety.

Thomas Brugnoli, ConvaTec plant director and general manager of global manufacturing and supply chain, stated, “We are pleased to announce this expansion and appreciate the community support we received. We are proud of our success in Greensboro over the past 29 years and look forward to the implementation of this state-of-the-art project.”

The Greensboro Economic Development Alliance (GEDA) worked closely with ConvaTec representatives throughout the site selection process. GEDA extends special thanks to the Greensboro City Council, the Guilford County Commissioners, the North Carolina Community College System, Duke Energy and the North Carolina Department of Commerce for all of their support for this expansion.

California Boosts Its Bond Program

The California Enterprise Development Authority (CEDA) has praised the State Treasurer’s office for increasing the funding allocation from approximately $120 million to $150 million for the 2009 Industrial Development Bond (IDB) program. This annual IDB issuing volume, which funds projects for California manufacturers, is established by the State Treasurer and represents a $30-million, or a 25%, increase, over the IDB limit set in January 2008.

Through the program’s small-issue IDBs, CEDA can access the increased funding limit of $150 million to finance projects statewide to support expansions of existing manufacturers as well as create much needed jobs in today’s economy. Manufacturers can use these tax-exempt, private-activity bonds, which are issued through state and local governmental agencies like CEDA, to assist in purchasing facilities and financing capital expenditures.

Wayne Schell, president of the California Association for Local Economic Development and Chairman of the CEDA Board of Directors, praised the Treasurer’s Office for “gearing up to help small- to mid-sized manufacturers in California in a difficult lending environment. This shows the state is working proactively to continue its support of California manufacturers, despite the current economy. The IDB program is an excellent economic development financing tool.”

Manufacturers interested in tapping these funds must be credit worthy and meet other state and federal requirements. However, according to Dan Bronfman, president of Growth Capital Associates, Inc., “In most cases, the approval process is worth the effort when you realize how much a business owner can save with an IDB versus a conventional loan. Since this program is aimed at helping mid-sized manufacturers, it supports a critical segment of California businesses.”

Wind Farms Whistle Across North America

Valero Energy Corporation, one of the largest oil and gas refiners in North America, has begun
its Phase I operation of a 50-megawatt (MW) windfarm located in McKee, TX. Just north of Amarillo, the McKee Windfarm will be constructed in two phases.

Initiated in December 2008, energy production from six General Electric (GE) 1.5-MW wind turbines of Phase I has been commissioned for startup. Phase II will consist of 27 GE 1.5-MW wind turbines expected to be erected and ready before the end of June 2009.

Though Texas has the largest installed capacity of wind power in the United States, Iowa also is a recognized leader in the development of wind-generated electricity. By successfully attracting such top turbine manufacturers as Siemens, Clipper and TPI Composites, Iowa has established itself as the major wind-turbine manufacturing hub in North America.

Acciona, a Spanish turbine manufacturer with operations in Iowa, awaits environmental approval for a 103.5-MW windfarm to be built in the Coquimbo region of Chile. And while Acciona lies in wait, construction has already been completed on two other windfarms in North America.

Central Plains Power LLC is in the commissioning stages of the Central Plains windfarm project, which broke ground in June 2008. Located in Marienthal, Kansas, the project consists of a 99-megawatt farm developed by RES and owned and operated by Westar.

Also, Cartier Wind Energy LLC has begun full commercial operation of the $110 million, 110-MW Carleton Windfarm in Québec, Canada. Comprised of 73 wind turbines, the farm should generate 340,000 MW per hour of energy per year.

"Gray Lady" Battles Red Ink

With its stock price plunging more than 60 percent in the past year, its print advertising sales collapsing, and a reported $1 billion in debt, The New York Times Co. is urgently trying to raise $225 million by offering a sale-leaseback deal on its new 52-story headquarters building in midtown Manhattan.

The move to sell a portion of its gleaming new skyscraper, designed by architect Renzo Piano, is the latest in a series of cost-cutting steps by the newspaper giant, according to Crain's New York Business.

Previously, The New York Times Co. has slashed its dividend for investors by 75 percent, cut companywide staff by 8 percent, and raised its newsstand price while merging sections of the newspaper, Crain’s reports.

However, the publishing conglomerate still is grappling with a 92-percent plunge in net income in the first nine months of 2008, and is in the midst of negotiations with lenders regarding more than $600 million in loans that are coming due this year and next. The Times parent company also is trying to sell its stake in the Boston Red Sox baseball franchise.

Industry analysts expect the Times to survive any consolidation of the newspaper business during the current global recession, but some real estate specialists believe the company may have waited too long to try to sell off a piece of its headquarters building.

While the current credit squeeze generally makes leaseback deals an attractive option, the overall unavailability of financing limits the number of potential players, analysts told Bloomberg News.