HARRISBURG, Pa. -- Attracting out-of-state businesses and helping revitalize communities is getting a bit tougher for state officials under a new Pennsylvania budget that cuts more than $114 million from the Department of Community and Economic Development.
The 35 percent funding reduction to the agency affected dozens of programs and imposed consolidations designed to make recipients work together, regionalize or compete head-to-head.
The reduction is the latest in a series of cuts that have left the DCED with a $213 million budget, down from $327 million last year and $631 million just four years ago.
The new spending plan eliminates all remaining legislatively directed spending referred to as walking-around money, or WAMs.
The Corbett administration said it's trying to make the agency run more efficiently.
Tuesday, July 12, 2011
Monday, July 11, 2011
New Hampshire’s secret salesman luring Bay State firms across the line
By Jenn Abelson, Globe Staff
CONCORD, N.H. - New Hampshire pays Michael Bergeron to be a full-time thief, sending him across the border in an unmarked black sedan to poach Massachusetts companies.
To help keep his missions undercover, the business recruiter even scraped the New Hampshire state seal off his Ford Fusion. Equal parts real estate agent, financial adviser, and deal fixer, Bergeron has lured dozens of Massachusetts companies to the Granite State over the past few years with promises of lower tax bills, cheaper office and industrial space, and fewer regulations.
John Hancock Financial and Liberty Mutual Group are among the high-profile firms that recently moved significant parts of their operations over the state line - partially because of Bergeron’s pitches. And an increasing number of small and midsize firms are considering migrating as a way to reduce costs in uncertain economic times.
“New Hampshire has become an easier place to do business as Massachusetts has become more difficult,’’ said Bergeron, who works as a business development manager for the New Hampshire Department of Resources and Eco nomic Development. “It’s a lower cost to do business here and you still have the availability of the skilled workforce in Massachusetts.’’
His PowerPoint presentations highlight what New Hampshire officials say is Massachusetts’ bad-business reputation. They cite expensive real estate, drawn-out permitting processes, and higher taxes.
There are no official statistics from Massachusetts or New Hampshire on the number of companies that have moved north. But Bergeron estimates that at least 5,000 new jobs have been created over the past five years as a result of Massachusetts businesses moving to his state.
Massachusetts officials and business leaders deny that a mass exodus is underway, although they acknowledge that New Hampshire’s aggressive recruitment tactics can’t be ignored.
The constant assault on Commonwealth companies is more irritating than ominous, said Greg Bialecki, Massachusetts’ housing and economic development secretary.
“They haven’t done any serious damage,’’ he said of New Hampshire’s efforts.
Nonetheless, Bialecki said, officials have tried to make the state more enticing to businesses. In recent years, for instance, Massachusetts has lowered its corporate tax rate, offered tax incentives and other funding, and streamlined the permitting process through its new permitting ombudsman and Permit Regulatory Office.
Massachusetts has historically had to fend off New Hampshire’s business recruitment campaigns, said Paul Guzzi, president of the Greater Boston Chamber of Commerce.
CONCORD, N.H. - New Hampshire pays Michael Bergeron to be a full-time thief, sending him across the border in an unmarked black sedan to poach Massachusetts companies.
To help keep his missions undercover, the business recruiter even scraped the New Hampshire state seal off his Ford Fusion. Equal parts real estate agent, financial adviser, and deal fixer, Bergeron has lured dozens of Massachusetts companies to the Granite State over the past few years with promises of lower tax bills, cheaper office and industrial space, and fewer regulations.
John Hancock Financial and Liberty Mutual Group are among the high-profile firms that recently moved significant parts of their operations over the state line - partially because of Bergeron’s pitches. And an increasing number of small and midsize firms are considering migrating as a way to reduce costs in uncertain economic times.
“New Hampshire has become an easier place to do business as Massachusetts has become more difficult,’’ said Bergeron, who works as a business development manager for the New Hampshire Department of Resources and Eco nomic Development. “It’s a lower cost to do business here and you still have the availability of the skilled workforce in Massachusetts.’’
His PowerPoint presentations highlight what New Hampshire officials say is Massachusetts’ bad-business reputation. They cite expensive real estate, drawn-out permitting processes, and higher taxes.
There are no official statistics from Massachusetts or New Hampshire on the number of companies that have moved north. But Bergeron estimates that at least 5,000 new jobs have been created over the past five years as a result of Massachusetts businesses moving to his state.
Massachusetts officials and business leaders deny that a mass exodus is underway, although they acknowledge that New Hampshire’s aggressive recruitment tactics can’t be ignored.
The constant assault on Commonwealth companies is more irritating than ominous, said Greg Bialecki, Massachusetts’ housing and economic development secretary.
“They haven’t done any serious damage,’’ he said of New Hampshire’s efforts.
Nonetheless, Bialecki said, officials have tried to make the state more enticing to businesses. In recent years, for instance, Massachusetts has lowered its corporate tax rate, offered tax incentives and other funding, and streamlined the permitting process through its new permitting ombudsman and Permit Regulatory Office.
Massachusetts has historically had to fend off New Hampshire’s business recruitment campaigns, said Paul Guzzi, president of the Greater Boston Chamber of Commerce.
Friday, July 08, 2011
Kentucky hires firm to create economic development plan
By Scott Sloan — ssloan@herald-leader.com
The state has hired a consulting firm to help it craft a strategic plan for economic development with the goal of adding jobs.
The 13-member Kentucky Economic Development Partnership Board, which directs the state's economic development efforts, has hired Boyette Strategic Advisors for the plan, to be called "Kentucky's Unbridled Future."
It is expected to be finished by October and will identify emerging business sectors in the state and highlight ways Kentucky can position itself for success.
"State economic development agencies in today's global economy must have a clear understanding of their strengths, weaknesses and advantages on a global level," Luther Deaton, vice chair of the Partnership Board and CEO of Central Bank & Trust, said in a statement. "They must adopt an adaptable, strategic and modern approach to economic development.
"The Partnership Board very much looks forward to the creation of such a plan for the commonwealth."
The plan will be based on research by the consulting firm and information culled from seven public input sessions to be held across the state in the coming month. Residents also may fill out an online survey.
"There isn't a predetermined agenda for the outcome of this strategic plan," said Mandy Lambert, spokeswoman for the Cabinet for Economic Development. "This process will help us identify emerging business sectors and the kinds of jobs Kentucky should target."
A prominent University of Kentucky researcher questioned, though, whether a consultant-produced plan is the best step for the state.
"Kentucky faces some significant challenges going forward," said Ken Troske, director of the Center for Business and Economic Research at UK. "Before designing new strategies going forward, we need to do a very careful assessment, essentially an inventory, of where are we right now.
"We need to examine what we think will be significant changes and how well-suited we are to handle those changes."
Troske questioned whether all Kentuckians have a good understanding of the state's current economy.
"Less than 1 percent of the state is involved in coal or agriculture," he said, noting the common misperception. He also said it might surprise some to learn the state's top export overseas is airplane parts, followed by chemicals.
"There's a lot of data out there," he said. "I think it's much better to do a study that's deeper ... than an economic development consulting firm would be capable of conducting."
Read more: http://www.kentucky.com/2011/07/08/1803679/state-hires-firm-to-create-economic.html#ixzz1RZ6DCn1z
The state has hired a consulting firm to help it craft a strategic plan for economic development with the goal of adding jobs.
The 13-member Kentucky Economic Development Partnership Board, which directs the state's economic development efforts, has hired Boyette Strategic Advisors for the plan, to be called "Kentucky's Unbridled Future."
It is expected to be finished by October and will identify emerging business sectors in the state and highlight ways Kentucky can position itself for success.
"State economic development agencies in today's global economy must have a clear understanding of their strengths, weaknesses and advantages on a global level," Luther Deaton, vice chair of the Partnership Board and CEO of Central Bank & Trust, said in a statement. "They must adopt an adaptable, strategic and modern approach to economic development.
"The Partnership Board very much looks forward to the creation of such a plan for the commonwealth."
The plan will be based on research by the consulting firm and information culled from seven public input sessions to be held across the state in the coming month. Residents also may fill out an online survey.
"There isn't a predetermined agenda for the outcome of this strategic plan," said Mandy Lambert, spokeswoman for the Cabinet for Economic Development. "This process will help us identify emerging business sectors and the kinds of jobs Kentucky should target."
A prominent University of Kentucky researcher questioned, though, whether a consultant-produced plan is the best step for the state.
"Kentucky faces some significant challenges going forward," said Ken Troske, director of the Center for Business and Economic Research at UK. "Before designing new strategies going forward, we need to do a very careful assessment, essentially an inventory, of where are we right now.
"We need to examine what we think will be significant changes and how well-suited we are to handle those changes."
Troske questioned whether all Kentuckians have a good understanding of the state's current economy.
"Less than 1 percent of the state is involved in coal or agriculture," he said, noting the common misperception. He also said it might surprise some to learn the state's top export overseas is airplane parts, followed by chemicals.
"There's a lot of data out there," he said. "I think it's much better to do a study that's deeper ... than an economic development consulting firm would be capable of conducting."
Read more: http://www.kentucky.com/2011/07/08/1803679/state-hires-firm-to-create-economic.html#ixzz1RZ6DCn1z
Thursday, July 07, 2011
Economic study lists plusses and minuses of Evansville area
By Susan Orr
EVANSVILLE — In order for the Evansville area to move forward economically, an economic development official says, its residents need to start thinking more strategically.
"We have to understand what's important, and we have to be on the same page," said Greg Wathen, president and chief executive officer of the Economic Development Coalition of Southwest Indiana.
And Wathen hopes a regional economic study, the first part of which was made public Thursday, can help shape local thinking.
Wathen's organization commissioned the study as a way to better understand this area's assets and how to build upon them.
The study was conducted by two firms: Garner Economics of Atlanta, and Newmark Knight Frank of Chicago. It was paid for with a $231,482 federal grant secured as a result of Whirlpool's closure of its refrigerator plant here in 2010.
Part one of the study, called a Competitive Realities Report, outlines this area's strengths and weaknesses as compared to benchmark communities of Chattanooga, Tenn. and the Davenport/Moline/Rock Island area in Iowa and Illinois. It also looks at this region's demographics, labor market and industry growth.
This part of the report presents information without making any conclusions or recommendations, so it's not immediately obvious what to make of the findings, Wathen said.
"It's a guide. It's a first step and a guide," Wathen said.
Still, some of the data in the Competitive Realities Report points to the area's specific strengths and weaknesses.
According to the report, Evansville rated higher than its benchmark communities in these areas:
n Its central location, within a day's drive of two-thirds of U.S. markets
n Access to interstate highways, rail service and ports facilities
n Access to four-year and postsecondary degree programs
n Quality of K-12 and postsecondary education
n Housing costs
n Cultural resources
The area rated lower than its benchmark communities in areas that included:
n High-speed Internet service. The Evansville area ranks 368 of 370 communities nationwide based on upload and download speeds, the report noted.
n Availability of certain types of labor, including skilled industrial and clerical workers, technicians, scientists and managers
n Quality of labor/management relations
n Availability of "fully served and attractive" office and industrial sites
n Availability of venture capital for startups
n General appearance of many parts of the community. The report notes that Newburgh "shows exceptionally well," while Evansville, Princeton and Oakland City do not.
In this part of the survey, the researchers analyzed 65 factors in all. Tom Tveidt, a research economist with Garner Economics, said the factors were selected because they are the things that companies most commonly analyze when making investment and relocation decisions.
"Certain things just pop up again and again," Tveidt said.
The report, Tveidt said, was based on both economic data and on personal visits by him and the report's other authors.
More specific details, including recommendations for target growth areas, will be released later this summer, Wathen said.
The entire project will provide what Wathen described as a "road map for success."
"I think every community needs to take a hard look at itself and build a strategy based on its assets."
EVANSVILLE — In order for the Evansville area to move forward economically, an economic development official says, its residents need to start thinking more strategically.
"We have to understand what's important, and we have to be on the same page," said Greg Wathen, president and chief executive officer of the Economic Development Coalition of Southwest Indiana.
And Wathen hopes a regional economic study, the first part of which was made public Thursday, can help shape local thinking.
Wathen's organization commissioned the study as a way to better understand this area's assets and how to build upon them.
The study was conducted by two firms: Garner Economics of Atlanta, and Newmark Knight Frank of Chicago. It was paid for with a $231,482 federal grant secured as a result of Whirlpool's closure of its refrigerator plant here in 2010.
Part one of the study, called a Competitive Realities Report, outlines this area's strengths and weaknesses as compared to benchmark communities of Chattanooga, Tenn. and the Davenport/Moline/Rock Island area in Iowa and Illinois. It also looks at this region's demographics, labor market and industry growth.
This part of the report presents information without making any conclusions or recommendations, so it's not immediately obvious what to make of the findings, Wathen said.
"It's a guide. It's a first step and a guide," Wathen said.
Still, some of the data in the Competitive Realities Report points to the area's specific strengths and weaknesses.
According to the report, Evansville rated higher than its benchmark communities in these areas:
n Its central location, within a day's drive of two-thirds of U.S. markets
n Access to interstate highways, rail service and ports facilities
n Access to four-year and postsecondary degree programs
n Quality of K-12 and postsecondary education
n Housing costs
n Cultural resources
The area rated lower than its benchmark communities in areas that included:
n High-speed Internet service. The Evansville area ranks 368 of 370 communities nationwide based on upload and download speeds, the report noted.
n Availability of certain types of labor, including skilled industrial and clerical workers, technicians, scientists and managers
n Quality of labor/management relations
n Availability of "fully served and attractive" office and industrial sites
n Availability of venture capital for startups
n General appearance of many parts of the community. The report notes that Newburgh "shows exceptionally well," while Evansville, Princeton and Oakland City do not.
In this part of the survey, the researchers analyzed 65 factors in all. Tom Tveidt, a research economist with Garner Economics, said the factors were selected because they are the things that companies most commonly analyze when making investment and relocation decisions.
"Certain things just pop up again and again," Tveidt said.
The report, Tveidt said, was based on both economic data and on personal visits by him and the report's other authors.
More specific details, including recommendations for target growth areas, will be released later this summer, Wathen said.
The entire project will provide what Wathen described as a "road map for success."
"I think every community needs to take a hard look at itself and build a strategy based on its assets."
Wednesday, July 06, 2011
Rhode Island, Virginia vie for Toray Plastics expansion
By Andy Smith
Journal Staff Writer
NORTH KINGSTOWN — Toray Plastics (America) has an expansion plan that could mean a $200-million investment and up to 200 news jobs. Toray president and CEO Richard R. Schloesser says the new jobs will either stay in Rhode Island or go to Toray’s other manufacturing plant in Front Royal, Va.
Schloesser said he’s already had calls from economic development officials in Virginia. In the meantime, Toray representatives and the state Economic Development Corporation have been in meetings to discuss tax breaks, work-force training grants, land acquisition and other incentives that would persuade Toray to expand its business in Rhode Island.
Competition between states to land jobs is how the economic-development game is being played these days, said Jeff Finkle, president and CEO of the International Economic Development Council in Washington, D.C.
“If we did nothing, we would continue to lose companies to other states,” said state EDC Executive Director Keith Stokes. He said that’s unacceptable in a state with a 10.9-percent unemployment rate, third-highest in the nation, with 62,000 people out of work.
Schloesser, who is looking to make his decision by the end of the year, said he’d prefer to expand here. But he’s concerned about the cost of doing business in Rhode Island. “It’s a very expensive state to do business in,” he said.
He said Toray Plastics, a subsidiary of Japanese company Toray Industries, has not contacted Virginia, but Virginia officials have been calling him. “We know we will get help out of Virginia,” Schloesser said.
He noted that Virginia’s governor, Bob McDonnell, visited Toray Industry executives in Japan during a recent trip to Asia.
Suzanne West, a spokeswoman for the Virginia Economic Development Partnership, said her agency does not comment on any project before it’s announced.
In Rhode Island, Schloesser met with Stokes and Governor Chafee at Toray’s North Kingstown facility on April 19.
“Do I [expand] here, or do I do it in Virginia?” Schloesser said he asked them.
Since then, Toray executives have met with EDC staff and Stokes on May 16 and June 21, with another meeting scheduled for this month.
Stokes said Toray might be able to qualify for tax credits under the state’s provisions for manufacturing research and development, and another for job creation. He said officials from the Quonset Development Corporation have also been involved in the discussions about land acquisition.
“Companies are making their decisions based on costs,” Stokes said. “It’s not lifestyle. It’s not loyalty. It’s costs.”
Stokes said certain costs –– utilities, health care, land and taxes –– are higher in Rhode Island than in other states. What the EDC is trying to do for Toray, he said, is come up with a package to make Rhode Island cost-competitive.
One of Toray’s big concerns is energy. The company is the largest consumer of electricity in the state, and it went to court to appeal the power-purchase agreement between National Grid and Deepwater Wind, which plans to build wind farms in the waters off Rhode Island. Toray contended the agreement would drive the price of power too high.
In an interview last week, Schloesser said the court’s decision will have “some impact” on the company’s expansion plans.
On Friday, the Rhode Island Supreme Court upheld the power agreement, ruling against Toray and fellow plaintiff Polytop Corp. Schloesser could not be reached for comment Tuesday.
Stokes said the EDC has worked with Toray frequently over the past 20 years. In 1992 and again in 2006, the Rhode Island Industrial Facilities Corporation issued bonds to help finance previous Toray expansions. Last year, Toray received $500,000 in low-interest loans and an additional grant of $250,000 to install solar panels.
Some economic-development experts say offering incentives to individual companies is a bad idea.
“It’s an unseemly business, this incentive game” said Finkle of the International Economic Development Council in Washington, D.C.
“Is it the right decision for the state, or are you doing it because any job is worth subsidizing right now? I hope the state doesn’t get stupid, and open up the wallet too wide.”
Stokes said that in a perfect economic world, Finkle has a point. Rather than a whole set of incentives and inducements, Rhode Island would be better served by a lower corporate-tax rate, a stable budget and a predictable business climate.
But, said Stokes, we’re not living in that perfect world. Stokes said that when it comes to economic development, keeping existing companies, particularly an expanding company, is even more important than luring new ones.
Stokes said the incentives under consideration for Toray are not “deals,” but ways of compensating for the higher fixed costs of doing business in Rhode Island.
Schloesser said he is worried about the long-term economic climate in the state. He said some of Chafee’s tax proposals, particularly a 1-percent tax on manufacturing equipment, could have been a deal-breaker for Toray. But that idea never made it through the General Assembly.
“We’d like to have the expansion here, but we have questions about what will happen to the state. Is this going to be a good place to do business in the next five years?”
Journal Staff Writer
NORTH KINGSTOWN — Toray Plastics (America) has an expansion plan that could mean a $200-million investment and up to 200 news jobs. Toray president and CEO Richard R. Schloesser says the new jobs will either stay in Rhode Island or go to Toray’s other manufacturing plant in Front Royal, Va.
Schloesser said he’s already had calls from economic development officials in Virginia. In the meantime, Toray representatives and the state Economic Development Corporation have been in meetings to discuss tax breaks, work-force training grants, land acquisition and other incentives that would persuade Toray to expand its business in Rhode Island.
Competition between states to land jobs is how the economic-development game is being played these days, said Jeff Finkle, president and CEO of the International Economic Development Council in Washington, D.C.
“If we did nothing, we would continue to lose companies to other states,” said state EDC Executive Director Keith Stokes. He said that’s unacceptable in a state with a 10.9-percent unemployment rate, third-highest in the nation, with 62,000 people out of work.
Schloesser, who is looking to make his decision by the end of the year, said he’d prefer to expand here. But he’s concerned about the cost of doing business in Rhode Island. “It’s a very expensive state to do business in,” he said.
He said Toray Plastics, a subsidiary of Japanese company Toray Industries, has not contacted Virginia, but Virginia officials have been calling him. “We know we will get help out of Virginia,” Schloesser said.
He noted that Virginia’s governor, Bob McDonnell, visited Toray Industry executives in Japan during a recent trip to Asia.
Suzanne West, a spokeswoman for the Virginia Economic Development Partnership, said her agency does not comment on any project before it’s announced.
In Rhode Island, Schloesser met with Stokes and Governor Chafee at Toray’s North Kingstown facility on April 19.
“Do I [expand] here, or do I do it in Virginia?” Schloesser said he asked them.
Since then, Toray executives have met with EDC staff and Stokes on May 16 and June 21, with another meeting scheduled for this month.
Stokes said Toray might be able to qualify for tax credits under the state’s provisions for manufacturing research and development, and another for job creation. He said officials from the Quonset Development Corporation have also been involved in the discussions about land acquisition.
“Companies are making their decisions based on costs,” Stokes said. “It’s not lifestyle. It’s not loyalty. It’s costs.”
Stokes said certain costs –– utilities, health care, land and taxes –– are higher in Rhode Island than in other states. What the EDC is trying to do for Toray, he said, is come up with a package to make Rhode Island cost-competitive.
One of Toray’s big concerns is energy. The company is the largest consumer of electricity in the state, and it went to court to appeal the power-purchase agreement between National Grid and Deepwater Wind, which plans to build wind farms in the waters off Rhode Island. Toray contended the agreement would drive the price of power too high.
In an interview last week, Schloesser said the court’s decision will have “some impact” on the company’s expansion plans.
On Friday, the Rhode Island Supreme Court upheld the power agreement, ruling against Toray and fellow plaintiff Polytop Corp. Schloesser could not be reached for comment Tuesday.
Stokes said the EDC has worked with Toray frequently over the past 20 years. In 1992 and again in 2006, the Rhode Island Industrial Facilities Corporation issued bonds to help finance previous Toray expansions. Last year, Toray received $500,000 in low-interest loans and an additional grant of $250,000 to install solar panels.
Some economic-development experts say offering incentives to individual companies is a bad idea.
“It’s an unseemly business, this incentive game” said Finkle of the International Economic Development Council in Washington, D.C.
“Is it the right decision for the state, or are you doing it because any job is worth subsidizing right now? I hope the state doesn’t get stupid, and open up the wallet too wide.”
Stokes said that in a perfect economic world, Finkle has a point. Rather than a whole set of incentives and inducements, Rhode Island would be better served by a lower corporate-tax rate, a stable budget and a predictable business climate.
But, said Stokes, we’re not living in that perfect world. Stokes said that when it comes to economic development, keeping existing companies, particularly an expanding company, is even more important than luring new ones.
Stokes said the incentives under consideration for Toray are not “deals,” but ways of compensating for the higher fixed costs of doing business in Rhode Island.
Schloesser said he is worried about the long-term economic climate in the state. He said some of Chafee’s tax proposals, particularly a 1-percent tax on manufacturing equipment, could have been a deal-breaker for Toray. But that idea never made it through the General Assembly.
“We’d like to have the expansion here, but we have questions about what will happen to the state. Is this going to be a good place to do business in the next five years?”
Tuesday, July 05, 2011
Lexington, Louisville to partner in effort to attract regional economic development
LEXINGTON, Ky. — Kentucky's two largest cities plan to study ways they can partner to attract regional economic development.
Mayors from both cities say they specifically are interested in becoming more competitive in advanced manufacturing, such as the automobile industry.
Lexington Mayor Jim Gray and Louisville Mayor Greg Fischer noted that the region already has two Ford plants and a Toyota plant, but said there is room for more.
Businessman Jim Host has been chosen to lead an 18-month study that will be undertaken by a committee appointed by the mayors. Host told the Lexington Herald-Leader he expects the first meeting to be in August or September.
Host, who lives in Lexington, oversaw development of the KFC Yum Center in downtown Louisville. He said being involved with that project helped him learn a good deal about Louisville.
"Up until last October, I drove every day from Lexington to Louisville to work on that facility and drove back at night," he said. "I've learned what makes Louisville work and have felt for many years that the Lexington-Louisville corridor should be like the Dallas-Fort Worth corridor."
Host said the formal partnership of the two cities will build on an informal one that began a few years ago.
"These two communities have always been at opposite poles, and it's crazy in this state for these two communities to not work together," Host said.
The Brookings Institution, a nonprofit public policy research firm in Washington, D.C., will assist the committee with the study and Laura Chandler, who worked with Host on the Louisville Arena Authority, will be the project manager.
The mayors plan to explain more about the study and its goals during luncheons next month in Louisville and Lexington.
Host said the study will have statewide significance.
"There's nothing more important to this state than the cooperation between Lexington and Louisville," he said. "Forty cents of every tax dollar generated in Louisville helps the rest of Kentucky, and 20 cents of every tax dollar generated in Lexington helps the rest of Kentucky.
"The better we can help economic development in the two cities, the better it helps the state.
Mayors from both cities say they specifically are interested in becoming more competitive in advanced manufacturing, such as the automobile industry.
Lexington Mayor Jim Gray and Louisville Mayor Greg Fischer noted that the region already has two Ford plants and a Toyota plant, but said there is room for more.
Businessman Jim Host has been chosen to lead an 18-month study that will be undertaken by a committee appointed by the mayors. Host told the Lexington Herald-Leader he expects the first meeting to be in August or September.
Host, who lives in Lexington, oversaw development of the KFC Yum Center in downtown Louisville. He said being involved with that project helped him learn a good deal about Louisville.
"Up until last October, I drove every day from Lexington to Louisville to work on that facility and drove back at night," he said. "I've learned what makes Louisville work and have felt for many years that the Lexington-Louisville corridor should be like the Dallas-Fort Worth corridor."
Host said the formal partnership of the two cities will build on an informal one that began a few years ago.
"These two communities have always been at opposite poles, and it's crazy in this state for these two communities to not work together," Host said.
The Brookings Institution, a nonprofit public policy research firm in Washington, D.C., will assist the committee with the study and Laura Chandler, who worked with Host on the Louisville Arena Authority, will be the project manager.
The mayors plan to explain more about the study and its goals during luncheons next month in Louisville and Lexington.
Host said the study will have statewide significance.
"There's nothing more important to this state than the cooperation between Lexington and Louisville," he said. "Forty cents of every tax dollar generated in Louisville helps the rest of Kentucky, and 20 cents of every tax dollar generated in Lexington helps the rest of Kentucky.
"The better we can help economic development in the two cities, the better it helps the state.
Landing Mars: Topeka development group deployed mix of skills, incentives to snag candy plant
TOPEKA, Kan. — Economic development is a little like courtship, says Steve Jenkins, senior vice president of Go Topeka Economic Partnership, but as he describes the city's pursuit of a new Mars candy factory, tactics from the art of war also come into play.
Be aware of the enemy (the dozens of other communities also being considered). Be comfortable with secrets (code names for projects are useful). And choose weapons wisely (incentives tailored to the company being pursued).
State agencies and Go Topeka Economic Partnership apparently got the mix right. Last week, Mars Inc. announced it would build a 350,000-square-foot plant — its first candy factory in 35 years — in Topeka's Kanza Fire Commerce Park, at an initial cost of $250 million.
Groundbreaking is scheduled for August, with the plant expected to start turning out Snickers and M&M's in late 2013. Operated by Mars Chocolate North America, the plant is expected to have about 200 employees to start, with what the company said is the potential to eventually create 1,000 direct and indirect jobs.
Jenkins told The Topeka Capital-Journal that securing the largest single economic investment in the city's history began with the courtship-like side of economic development.
"It is based on relationships. Building relationships with companies is crucial," he said. "They trusted us, and we trusted them."
When competing with other cities — in this case, 82 potential sites in 13 states — it is important the entities aren't sitting across the table from each other. "We need to be sitting side by side with them," Jenkins said.
Go Topeka learned last September from the Kansas Department of Commerce's East Coast office about a company looking for a location.
The company — which was known only to Go Topeka as "Project Sweetness," later to become "Project Pepper" and then "Project Buffalo" — had specific criteria, such as rail access and a large amount of land.
Go Topeka answered several questions and heard from the company within two weeks about a visit to the city. Jenkins and several other people had to sign a nondisclosure agreement about the company, although Jenkins knew it was Mars.
The company sent a site selection committee to Topeka, where the visitors took photos of Kanza Fire Commerce Park and asked to see downtown.
"They want to be in a community that is on the move and vibrant," Jenkins said. "They are excited about the plans for downtown."
The Mars officials also headed to metropolitan Kansas City to look at a potential site, but they contacted Go Topeka within two weeks.
"Then things kicked into high gear," Jenkins said, with the company rapidly whittling down the possible sites to a handful.
More visits followed. Mars officials met with people from other major Topeka employers, such as Goodyear and Frito Lay, and from school districts, cultural groups and Washburn University. The local groups weren't told the company's name.
Next came months of financial negotiations that Jenkins said could sometimes feel like a battle.
"This is a tough business," Jenkins said. "It is intensively competitive. Those incentive packages become very important when you are down to the final two or three.
"There is a lot of strategy involved. You know your enemy is out there, but you don't know what they are using for weapons. It's intense. The larger the project, the more complex."
What emerged was an incentive package totaling slightly more than $9 million, including the land, site and infrastructure improvements, permit fees, and an agreement with Washburn to help train employees.
On the day before the deal's announcement in Topeka, Jenkins traveled to Mars Chocolate North America's corporate headquarters in Hackettstown, N.J., for the internal announcement.
"That place just erupted in applause," he said. "They are excited this company is growing."
Be aware of the enemy (the dozens of other communities also being considered). Be comfortable with secrets (code names for projects are useful). And choose weapons wisely (incentives tailored to the company being pursued).
State agencies and Go Topeka Economic Partnership apparently got the mix right. Last week, Mars Inc. announced it would build a 350,000-square-foot plant — its first candy factory in 35 years — in Topeka's Kanza Fire Commerce Park, at an initial cost of $250 million.
Groundbreaking is scheduled for August, with the plant expected to start turning out Snickers and M&M's in late 2013. Operated by Mars Chocolate North America, the plant is expected to have about 200 employees to start, with what the company said is the potential to eventually create 1,000 direct and indirect jobs.
Jenkins told The Topeka Capital-Journal that securing the largest single economic investment in the city's history began with the courtship-like side of economic development.
"It is based on relationships. Building relationships with companies is crucial," he said. "They trusted us, and we trusted them."
When competing with other cities — in this case, 82 potential sites in 13 states — it is important the entities aren't sitting across the table from each other. "We need to be sitting side by side with them," Jenkins said.
Go Topeka learned last September from the Kansas Department of Commerce's East Coast office about a company looking for a location.
The company — which was known only to Go Topeka as "Project Sweetness," later to become "Project Pepper" and then "Project Buffalo" — had specific criteria, such as rail access and a large amount of land.
Go Topeka answered several questions and heard from the company within two weeks about a visit to the city. Jenkins and several other people had to sign a nondisclosure agreement about the company, although Jenkins knew it was Mars.
The company sent a site selection committee to Topeka, where the visitors took photos of Kanza Fire Commerce Park and asked to see downtown.
"They want to be in a community that is on the move and vibrant," Jenkins said. "They are excited about the plans for downtown."
The Mars officials also headed to metropolitan Kansas City to look at a potential site, but they contacted Go Topeka within two weeks.
"Then things kicked into high gear," Jenkins said, with the company rapidly whittling down the possible sites to a handful.
More visits followed. Mars officials met with people from other major Topeka employers, such as Goodyear and Frito Lay, and from school districts, cultural groups and Washburn University. The local groups weren't told the company's name.
Next came months of financial negotiations that Jenkins said could sometimes feel like a battle.
"This is a tough business," Jenkins said. "It is intensively competitive. Those incentive packages become very important when you are down to the final two or three.
"There is a lot of strategy involved. You know your enemy is out there, but you don't know what they are using for weapons. It's intense. The larger the project, the more complex."
What emerged was an incentive package totaling slightly more than $9 million, including the land, site and infrastructure improvements, permit fees, and an agreement with Washburn to help train employees.
On the day before the deal's announcement in Topeka, Jenkins traveled to Mars Chocolate North America's corporate headquarters in Hackettstown, N.J., for the internal announcement.
"That place just erupted in applause," he said. "They are excited this company is growing."
Monday, July 04, 2011
Area business leaders prioritize job creation needs
By Mary Carr Mayle
Savannah Morning News
Members of Gov. Nathan Deal's Georgia Competitiveness Initiative came to town to find out what the private business sector needs to do to help create more jobs in Savannah and the surrounding area.
They left the Armstrong Atlantic State University Conference Center Thursday with a clear indication of what the group sees as most critical to attracting and keeping good-paying jobs - education and workforce development.
Although it was only one of six focus areas presented by state economic development officials, it came up time and again in almost every small-group discussion.
"We can't attract new industry or expand existing businesses if we don't have trained workers to fill jobs," said attorney Jon Pannell, speaking for his break-out group.
"For that reason, workforce development has to be a priority."
Other groups agreed.
"We need a true working three-way partnership - with business, educational institutions and government to increase our knowledge-based workforce," wrote one group in listing its priorities. Another group suggested that schools stress career development along with academics, adding that curriculums need to focus on critical thinking and problem-solving skills.
In looking at what they think hinders growth in the private sector, participants listed access to capital, an uneducated workforce and state regulations and red tape.
Everything
on the table
The Savannah meeting was the third of 12 regional forums to be held around the state this summer. The forums are designed to assess the state's current strengths and weaknesses, gather information and ideas from local leaders and develop recommendations that will ultimately stimulate job creation and economic growth.
"Everything is on the table with these meetings - there are no ideas we won't listen to," said Chris Cummiskey, commissioner of the Georgia Department of Economic Development, who co-hosted the meeting with Chris Clark, CEO of the Georgia Chamber of Commerce.
Georgia is considered one of the leading states to do business with, Cummiskey said, citing a recent CNBC poll that put Georgia's business climate at No. 4 in the nation.
"We're leading, but other
states, especially in the Southeast, are trying to catch up with us," he said. "We want to keep that gap from closing. We want to take our efforts to the next level."
During the six-hour meeting, participants used hand-held electronic voting devices to prioritize the issues they felt most important in the six focus areas that were drawn from a statewide survey of business and economic development officials.
In addition to education and workforce development, focus areas were infrastructure, innovation, business climate, global commerce and government efficiency.
"These are the same six areas site selection consultants look at when helping new business locate or expand," Clark said. "They're also the areas growing businesses are targeting."
The second-most discussed area was infrastructure, widely considered a major state asset.
"We have the best port in the country, a world-class airport and an excellent rail system,' Cummiskey said. "But we're not without our challenges."
One of those is transportation, and most participants were interested in learning more about the regional Transportation Special Local Option Sales Tax - or T-SPLOST - expected to be on the ballot next year. The state chamber's Georgia Transportation Alliance has offered help in passing the initiative to local business communities "willing to put skin in the game," Clark said.
Deal will use the information gathered at the 12 meetings to develop a statewide strategy to bring jobs and industry to Georgia. A full report is expected in November.
Savannah Morning News
Members of Gov. Nathan Deal's Georgia Competitiveness Initiative came to town to find out what the private business sector needs to do to help create more jobs in Savannah and the surrounding area.
They left the Armstrong Atlantic State University Conference Center Thursday with a clear indication of what the group sees as most critical to attracting and keeping good-paying jobs - education and workforce development.
Although it was only one of six focus areas presented by state economic development officials, it came up time and again in almost every small-group discussion.
"We can't attract new industry or expand existing businesses if we don't have trained workers to fill jobs," said attorney Jon Pannell, speaking for his break-out group.
"For that reason, workforce development has to be a priority."
Other groups agreed.
"We need a true working three-way partnership - with business, educational institutions and government to increase our knowledge-based workforce," wrote one group in listing its priorities. Another group suggested that schools stress career development along with academics, adding that curriculums need to focus on critical thinking and problem-solving skills.
In looking at what they think hinders growth in the private sector, participants listed access to capital, an uneducated workforce and state regulations and red tape.
Everything
on the table
The Savannah meeting was the third of 12 regional forums to be held around the state this summer. The forums are designed to assess the state's current strengths and weaknesses, gather information and ideas from local leaders and develop recommendations that will ultimately stimulate job creation and economic growth.
"Everything is on the table with these meetings - there are no ideas we won't listen to," said Chris Cummiskey, commissioner of the Georgia Department of Economic Development, who co-hosted the meeting with Chris Clark, CEO of the Georgia Chamber of Commerce.
Georgia is considered one of the leading states to do business with, Cummiskey said, citing a recent CNBC poll that put Georgia's business climate at No. 4 in the nation.
"We're leading, but other
states, especially in the Southeast, are trying to catch up with us," he said. "We want to keep that gap from closing. We want to take our efforts to the next level."
During the six-hour meeting, participants used hand-held electronic voting devices to prioritize the issues they felt most important in the six focus areas that were drawn from a statewide survey of business and economic development officials.
In addition to education and workforce development, focus areas were infrastructure, innovation, business climate, global commerce and government efficiency.
"These are the same six areas site selection consultants look at when helping new business locate or expand," Clark said. "They're also the areas growing businesses are targeting."
The second-most discussed area was infrastructure, widely considered a major state asset.
"We have the best port in the country, a world-class airport and an excellent rail system,' Cummiskey said. "But we're not without our challenges."
One of those is transportation, and most participants were interested in learning more about the regional Transportation Special Local Option Sales Tax - or T-SPLOST - expected to be on the ballot next year. The state chamber's Georgia Transportation Alliance has offered help in passing the initiative to local business communities "willing to put skin in the game," Clark said.
Deal will use the information gathered at the 12 meetings to develop a statewide strategy to bring jobs and industry to Georgia. A full report is expected in November.
Sunday, July 03, 2011
Escambia, Santa Rosa team up on marketing
Although Escambia and Santa Rosa are neighbors with well-integrated economies, their separate chambers of commerce have a history of going it alone when recruiting new companies.
When Pensacola Bay Area Chamber of Commerce CEO Jim Hizer arrived last summer, he set as one of his key goals the marketing of the two-county area as a single entity.
Now, with a joint Escambia-Santa Rosa application for a $390,000 Economic Development Administration grant, Pensacola's chamber and Team Santa Rosa are taking a step in that direction.
"We've tried to do that in the past but it never came off," said Collier Merrill, a developer and restaurateur who is chairman of the chamber. "Now Escambia and Santa Rosa are working together and moving into a real partnership, but we're moving into it slowly."
Ferd Salomon, chairman of TEAM Santa Rosa, the county's economic development agency, said he believes the two counties are "in a pretty competitive position" to win the EDA grant.
The money was set aside by Congress last year to help oil-spill impacted communities.
If awarded, about $60,000 of the $390,000 would be used for a consultant to draw up a strategic marketing plan focusing on the types of target industries and jobs best suited for the Pensacola Bay area.
"We want to know what our best opportunities are to bring new industries to this area," said Brian McBroom, the Chamber's chief operating officer. "And we want to get this strategic plan up and running this year."
The remaining $330,000 would be put into revved-up marketing plans, including new website designs for both counties.
"Now that we've both agreed to act more regionally, we want to have events here that work toward both counties' advantage," Salomon said.
One key element of the new game plan includes wining and dining large groups of corporate site selectors in the Pensacola Bay area — an expensive, but effective, form of joint marketing, said Cindy Anderson, executive director of TEAM.
"What this grant will do is ... give us the money to host larger regional events here in this area," she said.
Merrill said that during the 20 years he's been involved with the Chamber, Escambia and Santa Rosa's business communities "have never really come together as they should have."
"Hopefully, this new regional alliance will work," he said.
Salomon is optimistic.
"I would say the relationship between TEAM and Pensacola's Chamber is good," he said. "It's certainly better than it has been. At the staff level, there's always been a tremendous amount of cooperation, and the two counties have never competed to the exclusion of the other."
In the past, Salomon said, most of the problems have been turf conflicts over political boundaries.
"From a pure business standpoint, there are no political boundaries," he said.
When Pensacola Bay Area Chamber of Commerce CEO Jim Hizer arrived last summer, he set as one of his key goals the marketing of the two-county area as a single entity.
Now, with a joint Escambia-Santa Rosa application for a $390,000 Economic Development Administration grant, Pensacola's chamber and Team Santa Rosa are taking a step in that direction.
"We've tried to do that in the past but it never came off," said Collier Merrill, a developer and restaurateur who is chairman of the chamber. "Now Escambia and Santa Rosa are working together and moving into a real partnership, but we're moving into it slowly."
Ferd Salomon, chairman of TEAM Santa Rosa, the county's economic development agency, said he believes the two counties are "in a pretty competitive position" to win the EDA grant.
The money was set aside by Congress last year to help oil-spill impacted communities.
If awarded, about $60,000 of the $390,000 would be used for a consultant to draw up a strategic marketing plan focusing on the types of target industries and jobs best suited for the Pensacola Bay area.
"We want to know what our best opportunities are to bring new industries to this area," said Brian McBroom, the Chamber's chief operating officer. "And we want to get this strategic plan up and running this year."
The remaining $330,000 would be put into revved-up marketing plans, including new website designs for both counties.
"Now that we've both agreed to act more regionally, we want to have events here that work toward both counties' advantage," Salomon said.
One key element of the new game plan includes wining and dining large groups of corporate site selectors in the Pensacola Bay area — an expensive, but effective, form of joint marketing, said Cindy Anderson, executive director of TEAM.
"What this grant will do is ... give us the money to host larger regional events here in this area," she said.
Merrill said that during the 20 years he's been involved with the Chamber, Escambia and Santa Rosa's business communities "have never really come together as they should have."
"Hopefully, this new regional alliance will work," he said.
Salomon is optimistic.
"I would say the relationship between TEAM and Pensacola's Chamber is good," he said. "It's certainly better than it has been. At the staff level, there's always been a tremendous amount of cooperation, and the two counties have never competed to the exclusion of the other."
In the past, Salomon said, most of the problems have been turf conflicts over political boundaries.
"From a pure business standpoint, there are no political boundaries," he said.
Saturday, July 02, 2011
New campus an incubator for green innovation
By Jeanine Benca
Contra Costa Times
LIVERMORE -- It has a big name, but then the i-GATE National Energy Systems Technology Incubator has a big job.
The mission of the 15,000-square-foot hub, for which a grand opening was held Thursday in Livermore, is to stimulate large-scale, high-tech business development around the region's two national labs.
About 300 supporters, including U.S. Rep. John Garamendi, Assemblywoman Joan Buchanan, Governor's Office of Economic Development Director Joel Ayala and other dignitaries converged to commemorate the launch of the Incubator headquarters at 7693 Longard Road in Livermore.
The goal is to unleash the economic potential of green transportation, renewable-energy technologies and high-performance computing, with an initial focus on solar energy, fuel cells, batteries, electric vehicles, next-generation biofuels and solid-state lighting, or LEDS, officials said.
"Our concept continues to be the same. We are holistically working to create opportunities by spurring new technology businesses," said Livermore Economic Development Director Rob White.
Major stakeholders in the first-time, multi-agency collaboration include the Lawrence Livermore and Sandia national laboratories, UC Berkeley and UC Davis, and the cities of Pleasanton, Dublin, San Ramon, Danville, Fremont, Tracy, Lathrop and West Sacramento.
About one-third of the Incubator site is designated office space, while the remaining two-thirds is industrial warehouse space
--------------------------------------------------------------------------------
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that can be used for manufacturing or laboratory work, White said.
ElectraDrive, a company that adds electric motors to gasoline trucks, was one of the first tenants to sign on, White added.
In addition to providing a physical space for companies to work, the site will also help coordinate public-private collaboration with academia and the Department of Energy, host seminars and networking events, and help facilitate business investment opportunities, officials said.
In February 2010, the region around the national labs was selected as one of six future "iHubs," or Innovation Hubs for Technology Development -- part of a new program of the state's Business, Transportation and Housing Agency.
The goal of the effort was, and is, to create jobs and expand the economy by fostering partnerships among private industry, academia and the labs, with an emphasis on developing cleaner, cheaper, safer automotive fuels and engines. More than 20 agencies led to the creation of i-GATE, or Innovation for Green Advanced Transportation Excellence.
Since then, the initiative has grown to more than 40 partners.
Other iHub designations are in Orange County, Sacramento, the Coachella Valley and San Francisco's North Bay and Greater Mission Bay regions.
Contra Costa Times
LIVERMORE -- It has a big name, but then the i-GATE National Energy Systems Technology Incubator has a big job.
The mission of the 15,000-square-foot hub, for which a grand opening was held Thursday in Livermore, is to stimulate large-scale, high-tech business development around the region's two national labs.
About 300 supporters, including U.S. Rep. John Garamendi, Assemblywoman Joan Buchanan, Governor's Office of Economic Development Director Joel Ayala and other dignitaries converged to commemorate the launch of the Incubator headquarters at 7693 Longard Road in Livermore.
The goal is to unleash the economic potential of green transportation, renewable-energy technologies and high-performance computing, with an initial focus on solar energy, fuel cells, batteries, electric vehicles, next-generation biofuels and solid-state lighting, or LEDS, officials said.
"Our concept continues to be the same. We are holistically working to create opportunities by spurring new technology businesses," said Livermore Economic Development Director Rob White.
Major stakeholders in the first-time, multi-agency collaboration include the Lawrence Livermore and Sandia national laboratories, UC Berkeley and UC Davis, and the cities of Pleasanton, Dublin, San Ramon, Danville, Fremont, Tracy, Lathrop and West Sacramento.
About one-third of the Incubator site is designated office space, while the remaining two-thirds is industrial warehouse space
--------------------------------------------------------------------------------
Advertisement
--------------------------------------------------------------------------------
that can be used for manufacturing or laboratory work, White said.
ElectraDrive, a company that adds electric motors to gasoline trucks, was one of the first tenants to sign on, White added.
In addition to providing a physical space for companies to work, the site will also help coordinate public-private collaboration with academia and the Department of Energy, host seminars and networking events, and help facilitate business investment opportunities, officials said.
In February 2010, the region around the national labs was selected as one of six future "iHubs," or Innovation Hubs for Technology Development -- part of a new program of the state's Business, Transportation and Housing Agency.
The goal of the effort was, and is, to create jobs and expand the economy by fostering partnerships among private industry, academia and the labs, with an emphasis on developing cleaner, cheaper, safer automotive fuels and engines. More than 20 agencies led to the creation of i-GATE, or Innovation for Green Advanced Transportation Excellence.
Since then, the initiative has grown to more than 40 partners.
Other iHub designations are in Orange County, Sacramento, the Coachella Valley and San Francisco's North Bay and Greater Mission Bay regions.
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