Business Facilities Breaking News

FL Gov. Crist Announces Budget

noreply@blogger.com (Bill Trüb) — Mon, 23 Feb 2009 15:31:00 +0000

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

noreply@blogger.com (Bill Trüb) — Fri, 20 Feb 2009 14:44:00 +0000

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

noreply@blogger.com (jack rogers) — Thu, 19 Feb 2009 20:04:00 +0000

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

noreply@blogger.com (Bill Trüb) — Wed, 18 Feb 2009 15:19:00 +0000

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

noreply@blogger.com (Bill Trüb) — Fri, 06 Feb 2009 19:39:00 +0000

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

noreply@blogger.com (Bill Trüb) — Thu, 05 Feb 2009 18:06:00 +0000

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

noreply@blogger.com (Bill Trüb) — Tue, 03 Feb 2009 18:43:00 +0000

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

noreply@blogger.com (Bill Trüb) — Thu, 29 Jan 2009 16:48:00 +0000

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

noreply@blogger.com (Bill Trüb) — Fri, 23 Jan 2009 15:53:00 +0000

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

noreply@blogger.com (jack rogers) — Thu, 22 Jan 2009 21:27:00 +0000

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.

IBM Eyes Iowa

noreply@blogger.com (Bill Trüb) — Wed, 21 Jan 2009 17:19:00 +0000

Iowa recently announced that IBM will open a new technology service delivery center in Dubuque, IA. It is expected that the $100-million project will create up to 1,300 high-quality jobs.

IBM has signed a 10-year lease, with optional extension years, to occupy a historic building in downtown Dubuque. The City of Dubuque, Dubuque Initiatives and IBM plan to upgrade the facility to make it a “green” building. The renovation of the building will utilize industry-leading energy-efficient technology.

“We selected the City of Dubuque for our new delivery center based on several criteria, including the strong positive public-private partnership within the city, its competitive business model and the talent and skills that Iowa and the Midwest have to offer,” says Mike Daniels, senior vice president, IBM Global Technology Services.

The IBM announcement follows the addition of Microsoft building a large server farm in West Des Moines and Google's $600-million data center in Council Bluffs; both centers are slated to be completed in the spring of 2009.

IBM intends to employ several hundred people in the new facility by the end of this year and up to 1,300 by the end of 2010. IBM will work with institutions of higher learning in the tri-state area of Iowa, Illinois and Wisconsin for recruitment and training of potential employees.

The technical service delivery center in Dubuque will primarily support IBM’s U.S. strategic outsourcing clients, providing server systems operations, security services and end-user services, including maintenance and monitoring of computer hardware and software systems. Employees will manage IBM’s world-class servers and storage systems that are critical for assuring optimal IT infrastructure performance. IBM’s global delivery network incorporates more than 80 strategic centers around the world and serves thousands of clients.

IDA Loans Create Jobs in PA

noreply@blogger.com (Bill Trüb) — Thu, 08 Jan 2009 21:17:00 +0000

The Pennsylvania Industrial Development Authority has approved two low-interest loans totaling $1.36 million to fund Philadelphia-area projects, the Pennsylvania Department of Community and Economic Development said Wednesday.

The PIDC Financing Corp. will receive a $680,000 loan to acquire and renovate an existing facility on East Hunting Park Avenue in Philadelphia. The site contains eight buildings totaling 45,000 square feet and has three tenants: Beletz Brothers Glass Co. Inc., a glass and metal fabricator; R&M Supply Co., an industrial-welding company; and Tasty Way Inc., an industrial bakery. The tenants are expected to create 25 jobs at the facility.

Sealstrip Corp., which makes easy-opening and resealable consumer packaging, will get a $680,000 loan to acquire and renovate the building it leases in Gilbertsville, Montgomery County, Pa. The company’s $1.7-million project, sponsored by the Montgomery County Industrial Development Corp., will create 16 jobs and retain 39 existing ones.

Kuwait kills $17.4 billion K-Dow deal

noreply@blogger.com (jack rogers) — Mon, 05 Jan 2009 16:31:00 +0000

Kuwait's government decided on December 28 to cancel a $17.4 billion joint venture with U.S. petrochemical giant Dow Chemical. The venture, known as K-Dow, was announced with great fanfare in July as the crown jewel of economic development initiatives in Michigan.

Michigan, already home to Dow Chemical's headquarters in Midland, had been slated to become the home as well to the new K-Dow Petrochemicals, a partnership between Dow and Kuwait's Petrochemical Industries Company (PIC), a subsidiary of Kuwait Petroleum Corp.

According to the Associated Press, the venture became a political football in oil-rich Kuwait after the dual collapse of the global financial system and the price of oil during the fall. In a statement carried by the state-owned Kuwait News Agency (KUNA), the Kuwaiti government said the K-Dow venture was ''very risky'' in the wake of the financial meltdown and cratering oil prices.

The K-Dow contract was canceled just a few days before a planned Jan. 1 startup date by the Supreme Petroleum Council, Kuwait's highest oil authority, according to the statement from KUNA.

The project, in which Kuwait was to hold a $7.5 billion stake, reportedly had been criticized in Kuwait as ''a ''waste of public funds'' and Kuwaiti lawmakers threatened to question the prime minister in parliament if it was launched. Such a move could have led to Sheik Nasser Al Mohammed Al Sabah's impeachment, sparking a new political row in the country just weeks after the Cabinet resigned in protest after an effort by a group of Islamist lawmakers to question the premier over corruption allegations within the government, AP reported. Sheik Nasser was reappointed to his post though he has yet to form a new Cabinet.

Kuwaiti Oil Minister Mohammed al-Eleim defended the venture as profitable, saying it was carefully studied by international consultants for over two years. But Kuwait's Cabinet said in its Sunday statement that it ''rejected'' politicizing the issue.

The venture between chemical giant Dow and PIC was designed to enable the partners to snare the lion’s 'hare of the global chemicals market. The new company was to be headquartered in the Detroit area.

Crude oil prices have plunged from mid-July highs of nearly $150 per barrel to a current level of under $40. The Kuwaiti stock exchange also has fallen by about 35 percent since the beginning of 2008. Dow announced in early December that it was cutting about 11 percent of its work force, closing 20 plants and selling off several businesses to cut costs amid the financial downturn.

Family-owned Company Expands in Michigan

noreply@blogger.com (Bill Trüb) — Tue, 23 Dec 2008 17:36:00 +0000

ABMyr Industries recently announced it is expanding its Belleville, MI operation, which will create 38 new jobs by 2011. The family-owned company invested more than $2 million to build and equip a 50,000-square-foot metal fabrication, prototyping and production center within its current facility.

ABMyr Industries’ new services utilize a state-of-the-art Mitsubishi Laser Cutter, which produces computer-precision cuts, sealed edges and improved appearance. Combined with their full service metal fabrication and welding shop, ABMyr can provide metal parts assembly, rapid prototyping and production.

“Entrepreneurial firms like ABMyr Industries are diversifying and strengthening our economy,” said Van Buren Township Supervisor Cindy King.

“We are very excited about ABMyr’s continued growth and creation of new job opportunities. Their expanded presence in the Belleville area is another sign that Belleville continues to be a viable place to live and do business,” added Belleville Mayor Richard Smith.

“For over 80 years ABMyr Industries has delivered precision machined products for the automotive, agriculture, appliance, aerospace, and general manufacturing industries. We are proud to leverage this vast experience to provide custom metal fabrication services for small and large product design and manufacturing firms,” said Shane Gerkin, senior vice president of ABMyr Industries.

Coca-Cola Goes Collegiate in Kentucky

noreply@blogger.com (Bill Trüb) — Wed, 17 Dec 2008 14:45:00 +0000

Coca-Cola Enterprises announced yesterday it will locate its new Information Technology Development Center in Louisville, KY.

The company intends to recruit from the local collegiate base for the new IT and Business Information Services (BIS) Development Center. The project is expected to create approximately 35 new full-time jobs in the community. The BIS Development Center of Louisville will be an extension of IT services provided from the system’s Atlanta group, where Coca-Cola Enterprises is headquartered.

“Coca-Cola Enterprises’ new Information Technology Development Center will be a fantastic addition to Louisville’s business community,” said Gov. Beshear. “By recruiting local college students to fill highly skilled jobs, the company is providing an incentive for students seeking career employment to stay right here in the commonwealth.”

“Louisville is an optimal location for a Development Center as it is in the same time-zone as Atlanta and it has excellent technology credentials with IT professionals available from a pool of local universities,” said Michelle Bellamy, senior director of global development for Coca-Cola Enterprises.

The 5,600-square-foot BIS Development Center, set to go live in the first quarter of 2009, will extend the BIS mission and build in-house knowledge by reducing reliance on external contractors. It will focus on new development and top-end projects.

“We’re excited about this opportunity,” said Bellamy. “We’re creating a new diverse culture filled with fresh perspectives and a keen understanding of the latest technologies. This will allow us to be more innovative and proactive toward our business needs.”

In addition to full-time opportunities, the development center will have an active internship program for students during the summer months. Students’ academic skill sets will be matched with key functions within the development center, allowing for growth and better transition after graduation.

"These high-tech jobs, with one of world's best know companies, are exactly the type of jobs we need and want in Louisville," said Mayor Jerry Abramson. "Coca-Cola has a bright future in our city."

“The ability to attract and retain critical technical and diverse talent is one of Coca-Cola Enterprises’ strategic priorities,” said Percy L. Wells, II, vice president of public affairs and communications, Coca-Cola Enterprises. “The expansion of our BIS system in Louisville demonstrates our commitment to creating a work environment conducive to professional development, growth and one that fosters creativity.”

The Kentucky Economic Development Finance Authority preliminarily approved Coca-Cola Enterprises for tax benefits up to $730,000 under the Kentucky Jobs Development Act, an incentive program designed to increase technology and service-related employment in the commonwealth.

“We are thrilled Coca-Cola Enterprises has chosen Louisville for its Information Technology Development Center,” said Joe Reagan, president and CEO of Greater Louisville Inc.–The Metro Chamber of Commerce. “Our region has worked hard to develop a skilled workforce ready to attract and retain these kinds of new-economy jobs. We look forward to future opportunities for collaboration.”

Utah Wins eBay's Bid

noreply@blogger.com (Bill Trüb) — Tue, 16 Dec 2008 20:10:00 +0000

eBay Inc. and the Utah Governor’s Office of Economic Development (GOED) just announced the closing of a land sale in South Jordan City Utah where eBay will develop its first next-generation data center. The data center will include new technologies and services that will enable eBay to deliver improved capabilities to its hundreds of millions of active users across its many web sites.

The new facility will generate approximately 50 new positions at an average of 150 percent of the Salt Lake County annual median wage which may change yearly. Over a 10-year period, the new positions are expected to generate new state wages of approximately $23.7 million. New state tax revenue is expected to exceed $109 million during the same period. The facility will be the second major building within Daybreak Commerce Park, a 250-acre light industrial park that broke ground last year.

"We are pleased to formally announce our plans to build a data center in South Jordan. The new data center is part of eBay’s plans to construct next-generation advanced data centers to support business-critical technology," said Terri Jordan, vice president of operations, Marketplaces, eBay. "eBay gives its thanks to the state of Utah, South Jordan City, the Governor’s Office of Economic Development, the Economic Development Corporation of Utah and Kennecott Land Company for their outstanding support that made this project possible."

eBay’s next generation data center will be designed and built with a focus on reducing its environmental impact. These efficiencies will be generated from a number of technologies incorporated into the mechanical and electrical systems of the facility including a water side economizer that uses outside air to cool water versus motorized chillers and variable speed drives to run fans and chillers on an on-demand basis. Additionally, rainwater will be used to supply the cooling tower and for landscape irrigation.

“Utah is very pleased that eBay has decided to build this leading edge data center in South Jordan. This decision is another vote of confidence in Utah as a ‘Best State for Business’ and its quality workforce that leads the nation,” said Jason Perry, executive director of the Utah Governor’s Office of Economic Development.

“The active engagement of so many groups committed to enabling eBay’s project underscores why Utah is at the top of site selection lists across the country,” said Scott Kaufmann, vice president of commercial development, Kennecott Land Company.

“South Jordan City is excited to welcome eBay Inc. as our next corporate citizen and know they will enjoy all that makes South Jordan and the State of Utah a great place to work, live, and play. We applaud eBay Inc. for being a leader in the internet business industry and their efforts to expand their scope of services in South Jordan City. Together, in partnership with Kennecott Land and the State of Utah, we welcome them as a partner with the City of South Jordan, as we build our future together,” said Brian Preece, Director of Long-term Planning and Sustainability for South Jordan City.

TN Nabs $2.5-billion Energy Investment

noreply@blogger.com (Bill Trüb) — Mon, 15 Dec 2008 15:39:00 +0000

Tennessee Governor Phil Bredesen and Economic and Community Development Commissioner Matt Kisber today joined with the chief executive officers of Hemlock Semiconductor and its parent company, Dow Corning, to announce Hemlock Semiconductor’s plan to locate a polycrystalline silicon manufacturing operation at the Commerce Park megasite in Clarksville, TN.

The facility, which will produce a primary component used in the manufacture of solar panels and other energy equipment, will mean an investment of $1.2 to $2.5 billion dollars by the company and the creation of 500 jobs, with the potential of employing up to 900 people within five to seven years. If plans are fully implemented, the project would become the largest announced corporate capital investment in Tennessee history.

“This announcement shows Tennessee’s commitment to becoming a significant player in the development of ‘green collar’ jobs related to clean energy technologies,” said Bredesen. “With this announcement, Hemlock Semiconductor and Dow Corning have signaled a major shift in the direction of Tennessee’s and the nation’s economies. The people of Tennessee appreciate the leadership of both companies for their confidence in our state.”

A formal announcement was issued by the companies this morning, to be followed by an announcement ceremony in Clarksville Monday afternoon on the campus of Austin Peay State University. The governor and commissioner will be joined by Hemlock President and CEO Rick Doornbos, along with the chairman, president and CEO of Dow Corning, Dr. Stephanie Burns, and U.S. Senator Bob Corker of Tennessee.

“We live in a time when a growing reliance on sustainable forms of energy is leading to growth rates of 30 percent to 40 percent annually for the solar industry,” said Kisber. “This announcement means Tennessee will play a leading role in the growth of solar technology for many years to come.”

“Tennessee’s business climate coupled with a superb site in Clarksville, a strong, productive workforce and an excellent location in proximity to our supply chain and customers made this the right decision,” said Hemlock Semiconductor President and CEO Rick Doornbos. “This investment will allow us to meet growing customer demand both in the near term and in the decades ahead.”

“The state of Tennessee and the Clarksville-Montgomery County community showed true partnership in making this project a reality,” said Dr. Stephanie Burns, chairman, president and CEO of Dow Corning. “I believe this is a watershed announcement for all of us.”

“Today’s announcement is huge and welcome good news,” said U.S. Senator Lamar Alexander. “It means a cleaner world and better jobs for Tennesseans. I congratulate Governor Bredesen and Clarksville-Montgomery County and pledge to do everything I can to help this project succeed.”

“This huge success proves that going through the diligent megasite certification process and being prepared gives a community a strong advantage,” said John Bradley, senior vice president, economic development, Tennessee Valley Authority. “The state of Tennessee, Clarksville-Montgomery County and community leaders have been working towards this day for two and a half years.”

“Hemlock Semiconductor’s investment in Clarksville and Montgomery County shows tremendous confidence in the capability of the people of this community,” said Montgomery County Mayor Carolyn Bowers. “I firmly believe Hemlock Semiconductor’s decision will have a profound effect on the local economy.”

“An excellent quality-of-life and a hard-working, productive workforce were key ingredients in convincing Hemlock Semiconductor that Clarksville is the best place for the company to expand,” said Clarksville Mayor Johnny Piper. “We’re excited about the opportunity this presents for our people and excited about the future of Clarksville.”

When complete, the Clarksville facility will have the capacity to manufacture up to 10,000 metric tons of polycrystalline silicon annually but is being designed with the capability to manufacture up to 34,000 metric tons. The plant will occupy the entire 1,215 acre Commerce Park megasite and the company plans to acquire an additional 947 acres adjacent to the site for additional build-out and to provide buffer space.

In the past five years, Hemlock Semiconductor and Dow Corning have invested more than $4.5 billion dollars in new capacity. In addition to the Clarksville announcement, Hemlock Semiconductor today also announced an expansion of its existing facilities in Michigan which, when combined with the Clarksville facility, will give the company the capacity to produce 45,000 metric tons of polycrystalline silicon annually, exceeding the combined production capacity of all other manufacturers around the world.

AllianceTexas' Success Nears $34 Billion

noreply@blogger.com (Bill Trüb) — Fri, 12 Dec 2008 21:36:00 +0000

This week's economic impact report on AllianceTexas shows a staggering overall impact total: $33.8 billion on North Texas communities. One of the most successful public-private partnerships in the United States, AllianceTexas has been in a vital economic engine for 20 years.

Approximately $100 million of combined initial investment from the city of Fort Worth, the state of Texas and the Federal Aviation Administration in AllianceTexas has yielded $6.5 billion in private investment, 29,000 jobs and more than $625.4 million in property taxes.

The $625.4 million in property taxes from AllianceTexas since 1990 has been paid to the three cities (Fort Worth, Haslet, Roanoke), two counties (Denton, Tarrant) and two school districts (Northwest, Keller) that it falls within. That number has grown significantly from the $223,000 in property taxes generated from the same area in 1990. AllianceTexas also falls within the town of Westlake, but that community does not have a municipal property tax.

From 1990-2007, AllianceTexas companies and Hillwood-related entities along Interstate 35W have paid more than $625.4 million in property taxes, including $88 million in 2007.

The companies of AllianceTexas now employ more than 29,000 workers, including 1,900 new jobs added in the past year. New companies and expansion by existing companies have accounted for the employment increase.

Daimler Financial Services Americas moved more than 500 employees into its new 160,000-square-foot office building in September. In June, Deloitte purchased 107 acres at Circle T Ranch to build a learning and leadership development center that will employ approximately 450 workers. DynCorp International expanded into 75,344 square feet in the Heritage Commons II building and now has approximately 800 employees at AllianceTexas.

On the industrial side, Cinram, which is the logistics provider for Motorola cell phones, has begun to move into its 788,000-square-foot distribution center at AllianceTexas. ENTECH, which is a leading provider of advanced solar energy technology, moved into 71,250 square feet in the Gateway 23 building, which is part of the 5-building, 1.8-million-square-foot speculative building program that Hillwood completed at Alliance in 2008.

Also in 2008, the next phase of Alliance Town Center opened. New retailers in the project include Belk Department Stores, PetSmart, Ulta Beauty, Sport Clips, RackRoom Shoes, Dress Barn, Justice Just for Girls, Rue21, EyeMasters, Mattress Firm, Which Wich, Jason’s Deli and Smoothie King. The 168,000-square-foot Sam Moon outlet is under construction and set to open in spring 2009.

Hillwood also opened its first multifamily project in AllianceTexas in 2008. The first phase of 288 units was completed in Monterra Village, which is the first 100% smoke-free apartment home community in North Texas.

In addition to the Sam Moon complex, projects currently under construction in AllianceTexas include the 50,000-square-foot expansion office building for Galderma, the 220,000-square-foot data center for Health Care Services Corp, and the 600,000-square-foot expansion office building for Fidelity Investments at its Circle T Ranch campus.

AllianceTexas consists of the Alliance Global Logistics Hub, Circle T Ranch, Heritage, Alliance Town Center, Saratoga and Monterra Village. The study also took into account the economic impact of the residential community of Park Glen, which Hillwood developed in the 1990s. AllianceTexas now houses 200 companies, including 65 from either the Fortune 500, Global 500 or Forbes list of Top Private Firms. These companies have built 29.2 million square feet and created 29,000 jobs.

Creating a "Monster" in Florence, SC

noreply@blogger.com (Bill Trüb) — Thu, 11 Dec 2008 15:53:00 +0000

Representatives from the Florence County Economic Development Partnership, the South Carolina Department of Commerce and Red Rock Developments joined Monster officials this month to officially break ground on the career management company's new customer service facility in Florence, SC.

Monster opened a temporary facility in Florence in September and has been recruiting talent and conducting training efforts since the initial announcement in June 2008. Red Rock Developments of Columbia, SC will be the developer behind the new 75,000-square-foot facility. When the facility is complete in fall 2009, it will open with approximately 350 full-time employees, with the ability to grow staff over time. Monster has already employed over 200 agents at their temporary facility in Florence.

“We are very excited to be breaking ground on the Florence facility,” said Art O’Donnell, executive vice president, Global Customer Services, Monster. “Florence is a prosperous region that we’re confident will provide us with the smart, customer-oriented talent needed to fill a variety of positions to bring best-in-class service to our customers.”

“Monster’s decision to locate in South Carolina is another positive sign that our efforts to enhance the state’s business soil conditions are paying real dividends when it comes to attracting world-class companies and new job opportunities. Today’s groundbreaking brings with it a significant number of new jobs that will positively impact the community in the years ahead. To that end, we remain committed to continuing our efforts to improve the state’s business climate with reforms that will encourage growth and job creation throughout the state,” said Governor Mark Sanford.

“As State Senator and resident of Florence County, I’m very pleased to be a part of such a wonderful occasion and welcome another outstanding corporate citizen to our community,” said Senator Hugh K. Leatherman. “Monster establishing a significant presence in Florence continues to show that this community is open for business.”

$26-million Investment Hits North Carolina

noreply@blogger.com (Bill Trüb) — Thu, 11 Dec 2008 15:37:00 +0000

Precor Incorporated, one of the most respected brands in fitness equipment, announced today that they will open a new Southeast manufacturing, assembly and distribution facility at Rock Creek Center in Eastern Guilford County, North Carolina. The company will invest $26.2 million and build a 225,000-square-foot, LEED-certified building to accommodate its operations. Precor plans to hire approximately 142 employees by 2011. Those employees will receive an average wage of $38,456. The facility will also be the headquarters for the Precor Strength Division.

Precor received an economic development incentive grant from Guilford County, which strengthened its decision to locate a new facility there. “This is an exciting time for Greensboro,” says Guilford County Commissioner Chairman Skip Alston. “We welcome Precor with open arms.”

Rock Creek Center is a strategic location for Precor because of the easy access to I-40/85 that the site affords. Precor also was attracted by the excellent training opportunities in welding, machining, and upholstery available through Guilford Technical Community College. “GTCC is such an integral partner in attracting Precor to the area,” says Greensboro Economic Development Alliance Chairman, Chuck Cornelio. “Guilford County has so much to offer new companies and we did everything in our power to make their location decision process as seamless as possible. We are thrilled to have a new manufacturing, assembly, and distribution center as well as a new divisional headquarters. I can’t think of a better Christmas present for Greensboro and Guilford County.”

The Greensboro Economic Development Alliance (GEDA) worked closely with Precor representatives throughout the site selection process. GEDA also recognizes the Guilford County Commissioners, the North Carolina Community College System, and the North Carolina Department of Commerce, the North Carolina Department of Transportation, and Duke Energy for their efforts in bringing Precor to Guilford County.

“Invest New Jersey” to reward business for creating jobs

noreply@blogger.com (jack rogers) — Wed, 10 Dec 2008 17:14:00 +0000

Gov. Jon Corzine of New Jersey has signed a bill this week authorizing $120 million in business grants and tax credits, providing a $3,000 grant for every new employee they hire and keep for a year or longer.

The legislation, entitled “Invest New Jersey” and signed by the governor during a daylong forum hosted by the New Jersey Business and Industry Association on Tuesday, was fast-tracked through the state legislatures after being introduced in October, according to the Associated Press.

“My most important focus is to do everything that we can to get through this very challenging dip in our macro-economic life as easily and without as much trouble as possible,” Corzine told the association meeting, which included more than 250 business leaders.

The Invest New Jersey bill is part of a broad economic stimulus plan proposed by Corzine to help businesses and residents through the economic downturn. Another part of the plan aims to spur capital investments by awarding grants of up to seven percent of the amount invested by businesses.

The balance of the stimulus plan will authorize plan will authorize $70 million, with a maximum award of $1 million per business. Equipment and machinery buys are among the items covered.

Kansas will be site of new $450 million biodefense lab

noreply@blogger.com (jack rogers) — Wed, 10 Dec 2008 17:03:00 +0000

The federal government has recommended a site in at Kansas State University in Manhattan, KS, for a new $450 million laboratory to study biological threats like anthrax and foot-and-mouth disease.

The Department of Homeland Security’s choice of Manhattan beat out intense competition from other sites in Georgia, Mississippi, North Carolina and Texas.

DHS official revealed their decision to several lawmakers last month. According to a report in The Capital-Journal, a three-year review of applicants by the U.S. Department of Homeland Security led to a recommendation of a site in Manhattan for construction of the National Bio- and Agro-Defense Facility.

"The Department of Homeland Security certainly made the correct recommendation," said U.S. Sen. Sam Brownback, R-Kan. "Kansas stands ready to accelerate our nation’s animal disease research efforts, and we clearly have the expertise and assets to get results."

Gov. Kathleen Sebelius, who went to Washington to push for the project earlier this fall, said the lobbying effort paid off.

“This is great news for our state, both on the bioscience front and with the jobs that will come with this facility," she said. "It’s nice to have some good news during this challenging economic time."

The laboratory in Kansas would replace an outdated facility in New York state. Researchers would study of foot-and-mouth disease, African swine fever, Japanese encephalitis, Rift Valley fever and the Hendra and Nipah viruses.

Homeland Security's final environmental impact statement, which examined the potential of six sites, pointed to Kansas as the best local for the laboratory. The decision won't be affirmed by the agency until after a 30-day comment period.

The executive summary of the impact statement noted Kansas State's strengths in term of the original evaluation criteria, proximity to existing research in the field, community acceptance, the state's willingness to provide incentives of more than $100 million and a realization the Manhattan site was "among the least expensive to construct and had among the lowest planned operation costs of all the site alternatives."

NBAF would replace a Plum Island, N.Y., complex that has hosted the federal government’s animal disease research for about 50 years.

Several farm groups have expressed concern about the risks of moving the lab to the U.S. mainland, but Homeland Security officials say it can operate safely using modern containment procedures.

The lab is expected to generate 1,500 construction jobs and 300 permanent jobs. The payroll could approach $30 million annually once the project was completed in 2015.
The Kansas Legislature approved $105 million in bonds to buy land, upgrade roads, install a security fence and build a utility plant at the site on the Kansas State University campus.

University of Kansas Chancellor Robert Hemenway, who served on the state's NBAF task force, said the new facility would "be a major economic asset to our state and will boost bioscience research throughout the region, including at KU."

"When coupled with the cancer, pharmaceutical and other research taking place here, this lab will make Kansas an international center for bioscience research," Hemenway said.

Lee County, FL launches $25 million cash incentive for expanding/relocating businesses

noreply@blogger.com (jack rogers) — Wed, 10 Dec 2008 17:00:00 +0000

At a time when tightening credit markets are limiting dollars for economic development, one Florida county has responded with a $25 million cash incentive fund that can provide significant capital for expansion and relocation.

Lee County, situated in the heart of Southwest Florida, has launched the FIRST (Financial Incentives for Recruiting Strategic Targets) Initiative as a negotiated, performance-based incentive to attract and grow high-value business projects.

The FIRST Initiative focuses on companies that:

• Operate within a target industry or high-impact sector as designated by Florida law;
• Create at least 75 new full-time equivalent jobs within a three-year period, paying an average wage of at least 125 percent of the Lee County annual average; and,
• Make a cumulative capital investment in an amount equal to or greater than the award amount.
The Initiative is managed by the Lee County Economic Development Office (EDO), which guides businesses through the application process, evaluates proposed projects and reports recommendations to the board of county commissioners. The board makes final decisions on all incentive applications.

“In today’s economy, it is rare for a local government to have the capability of offering cash incentives such as the FIRST Initiative,” said James W. Moore, director of the Lee County EDO. “Through prudent planning and conservative financial management, county leaders have positioned our community to have a strong competitive advantage in the recruitment of high-value employers.”

Initiative grants will be performance-based, with incentive payments based on hiring, wage and capital investment criteria. Target industries include life sciences, aviation, shared services, information technology and manufacturing.

The FIRST Initiative is among several local and state incentive programs offered through the EDO. Other opportunities include:

§ Lee County Job Opportunity Program, a cash incentive of up to $2,000 for creation of permanent full-time jobs, with additional payments for job creation within the Lee County Enterprise Zone;
§ Qualified Target Industry Tax Refund (QTI), a state tax refund designed to support creation of high-wage jobs in targeted high value-added industries; and,
§ Enterprise Zone Incentives, state tax refunds and credits paired with a local job incentive to spur capital investment and job creation in the Lee County Enterprise Zone.

For more information, contact the EDO at (800) 330-3161 or visit www.LeeCountyBusiness.com .

Investments in St. Louis Metro East approach $9.5 billion

noreply@blogger.com (jack rogers) — Wed, 10 Dec 2008 16:53:00 +0000

After shattering records in 2006-2007, the development pipeline for Southwestern Illinois continued to swell over the past year, reaching a new high of more than $9.4 billion. The 2007-2008 Market Review and Investment Update – released this month by the Leadership Council Southwestern Illinois - shows the total value of projects announced, under construction or completed during the reporting period ending September 30, 2008 up more than half a billion dollars over the prior year.

“In the midst of all the pessimistic news about the slow down in the economy, we’re pleased to report that developments were still moving full steam ahead in Southwestern Illinois during the past year,” notes Suzanne Butler, president of the Leadership Council, the member-based, economic development corporation that compiles the economic data for Madison and St. Clair counties. “The continuing investments across so many sectors of our economy reaffirm Southwestern Illinois’ position as a prime Midwestern development location.”

Among the highlights from this year's report:

$2.5 billion in projects were already under construction as of the end of September 2008, and $6.1 billion in additional announced projects included the multi-billion dollar investment at ConocoPhillips, which moved forward this fall.

As billions of dollars in projects move through the pipeline, the region should be poised for several years of intense construction activity. While this represents tremendous opportunities, the Leadership Council notes the level of activity will come with some challenges, including a sizeable increase in the demand for qualified laborers and greater stress on the region’s infrastructure systems and public services. Continuing to move projects through the pipeline also will be dependent upon solid support from and cooperation with local, national and international funding sources.

At $6.46 billion, industrial investments represented the largest chunk of the development pipeline. While mega projects such as those underway or planned by ConocoPhillips, U.S. Steel and Martin Aviation Group account for much of this, also noteworthy is half a billion dollars being invested in alternative energy projects, and $95 million flowing into warehousing facilities. The continued investments in both of these areas can be directly linked to the Metro East’s superior intermodal infrastructure that has firmly positioned the area as a key Midwestern distribution hub.

Commercial investments topped $1.3 billion for the second year in a row, with 87 different projects contributing to the total. Approximately $164 million of the total represents projects already completed, while two thirds of the total consists of projects under construction. Although the pipeline includes over a quarter billion dollars in projects announced, that number is down $60 million from the year prior, an indication that the commercial sector may be slowing a little as our nation’s economy continues to struggle. Collinsville and O' Fallon remain the two cities with the largest number of projects, 13 and 15 respectively, while the top five projects in terms of investment size can be found in Dupo, Collinsville, Belleville (2) and Shiloh.

Totaling $331.3 million, institutional investments posted a 63 percent increase over the prior year, the largest percentage increase among all the sectors. This sector includes hospitals, medical centers, non-profits and senior housing facilities. Over $200 million in healthcare projects alone drove the impressive increases in the institutional sector, which has seen three years of back-to-back growth.

Office investments totaled $217.7 million, climbing almost 23 percent over the prior year’s record total and representing the third consecutive year of investment growth. The year-over-year increases in office developments are seen by the Leadership Council as an important signal that the Metro East economy is continuing to evolve as the region receives more consideration as a location for back-office and regional headquarters operations. Almost $62 million in new office projects were delivered during the 12-month reporting period, a 33 percent increase in projects completed compared to the prior year. Collinsville serves as home to one-fourth of all the new office projects moving through the pipeline.

Topping out at $439 million, total investments in the educational sector remained steady over the past year. While the overall investment numbers remain strong in the educational arena, the total value of announced projects decreased by 33 percent compared to the prior period. $262 million of the projects on this year’s list are K-12 facilities, while $177 million represents investments in higher education projects. The three largest projects under construction, totaling $93 million, are K-12 projects.

Public investments (excluding transportation) soared to $648.7 million, up 56 percent from last year. This 56 percent gain was on the heels of a 45.5 percent increase the year prior, with projects again ranging from basic infrastructure improvements to recreational amenities to public safety projects. Projects at Scott Air Force Base accounted for $180 million, or more than one-quarter of the total. With over $600 million of the public projects under construction or yet to break ground, investments in this sector should continue to positively impact the local economy for years to come.

Though not counted in the project investment totals, well over a billion dollars of public sector transportation projects recently completed, announced or under construction will provide a solid foundation for continued growth throughout Southwestern Illinois.

Among the most significant transportation projects to get underway in the past year is the New Mississippi River Bridge. Also noteworthy are the recently announced plans for a $30 million harbor port facility at Tri-City Regional Port District and several million dollars of additional investments in rail improvements within the port area to better serve existing and future tenants.

While the numbers paint a very positive picture for the region, Butler states that sustaining the high level of economic activity will require that new challenges brought on by this growth and the current financial and economic conditions of the country continue to be addressed. “The Leadership Council remains confident that individuals from business, industry, government, education and labor will collaboratively address those challenges in a way that moves our region forward,” she notes.

The Metro East’s ability to respond to challenges to future growth was very much evident this past year in the tremendous progress made regarding the region’s flood protection systems. “Within a year of learning that FEMA considered the Metro East Levee systems deficient, a robust reconstruction plan is in the works and supported by a dedicated funding source,” notes Patrick McKeehan, executive director of the Leadership Council. “This will help to ensure that the work is completed in a timely manner so our levees continue to protect lives and property and enable developers to continue investing with confidence in our region.”

The Leadership Council Southwestern Illinois is a member-based, economic development corporation representing Madison and St. Clair counties. The Council works to attract/retain jobs and stimulate capital investment through its coalition of leaders in business, industry, labor, education and government.