Posts by: Economic Development HQ.com

Baltimore Mulls ED Pilot Programs to Support Minorities and Women in Business

The Mayor’s Council on Minority and Women-Owned Business Enterprises (MWBE) for Baltimore, Maryland has released a report   with suggested improvements and recommendations for the future direction of the city’s MWBE program.

Baltimore MWBE program report

Baltimore MWBE program report (photo – baltimorecity.gov)

The report, titled “A New Day A Better Way,” suggests some of the usual stuff, including changes to contract administration, procurement law and vendor payments to ensure inclusiveness in public works and spending.

But the report also specifically suggests concrete steps the city should take to include MWBE firms in five economic development projects in high-growth sectors that will give these firms an initial push in the right direction.

One of these projects is the “Green, Healthy and Sustainable Homes Project.” The city has already identified 5,000 home renovation and weatherization projects and allocated funding.

The report suggests that as a pilot effort, recruitment for the Green Homes project’s implementation should focus on MWBE firms, and the city should provide the training and certification required to get these firms listed as approved contractors for work on the project.

Another suggested pilot is under the Urban Solar Initiative, wherein a task force will be created to come up with a public-private partnership model that can generate the financing required for wide-spread solar panel array installations in residential, commercial and public city-owned buildings across the city.

The city has already identified public property suitable for solar installations, which together can account for an annual minimum of 50MW of electric power. Again, the report suggests that special efforts be made by the city to ensure inclusion of MWBE developers and firms involved in solar panel installations.

A third suggestion involves a change in tourism marketing strategy and include initiatives that will enhance tourism to culturally diverse points of interest that are outside of the core downtown and inner harbor area most tourist focus on.

They suggest boosting public transportation to these outlying areas, and offering nominal rate listings on Visit Baltimore’s website and marketing materials for attractions, restaurants and entertainment outlets located in these areas.

The other two programs recommended by the report include the Digit All Star Program to help MWBE firms in the IT sector with workforce development, and affirmative action to ensure diversity in the Innovation Cluster Initiative that will promote commercialization of intellectual property in specific fields.

Baltimore, Maryland Mayor Stephanie Rawlings Blake said that the benefits of economic growth must extend to all of the city’s communities.

Sharon R. Pinder, director of the Mayor’s Office of Minority and Women-Owned Business Development, said that this strategy, once implemented, will not only change the trajectory of the city’s MWBE program, but will also help transform the city’s wealth creation dynamics.

Read the full “A New Day A Better Way” report – Download (pdf)

CDFI Fund Announces $3.5B in New Market Tax Credit Awards

The Community Development Financial Institutions Fund (CDFI Fund), which comes under the U.S. Department of the Treasury, released a report of its New Markets Tax Credit (NMTC) allocation awards made in 2012.

NMTC flowchart

NMTC flowchart (photo – nrel.gov)

As per the report, the Treasury is providing 85 organizations from 28 states and D.C. a total of $3.5 billion under the tenth round of the NMTC program.

NMTCs were created in Dec 2000 to incentivize investment projects in low-income and distressed communities

Corporate and individual investors are provided federal income tax credits worth 39 percent of equity investments made in community development entities (CDEs), to be claimed over a seven year period.

Each dollar invested into NMTC by the federal government generates another eight dollars in private investment.

In 2012, 282 CDEs applied to the CDFI Fund, requesting $21.9 billion in NMTCS. Out of this pool of applicants, 85 CDEs were selected in a competitive process and awarded $3.5 billion (16 percent of total requested).

The awards range in size from a minimum of $15 million to a maximum of $80 million, with the average allocation amount being $41.2 million.

Thirteen of the 85 CDEs were government controlled entities and their subsidiaries, which together received $420 million. Another 26 were Community Development Financial Institutions (CDFIs). Eight were real estate developers who received a total of $260 million.

Deborah La Franchi, co-founder and president of the Los Angeles, California-based National New Markets Fund which was awarded a $75 million NMTC allocation, said that the projects they target tend to have a huge impact, but are very difficult to finance unless there are NMTCs involved.

Donna J. Gambrell, director of the CDFI Fund, said that more than 70 percent of NMTC investments to-date have ended up in communities classified under the highest distress category, above and beyond the requirements set forth by the NMTC program for qualified investments.

Gambrell said the results demonstrate how essential NMTC is for spurring economic development for underserved communities.

Out of the total of $3.5 billion, around $744 million has been allocated to CDEs that will be investing in rural area projects. Another $1.859 billion will be invested in major urban areas, and the remaining $824 million in minor urban areas.

In the ten rounds awarded so far by the CDFI Fund, a total of $36.5 billion in NMTCs have been allocated to 749 recipients. This includes a billion dollars meant for redevelopment and recovery efforts in Louisiana and other Gulf Coast states after Hurricane Katrina, and another $3 billion under the Recovery Act.

Read the full report on the 2012 NMTC allocations – Download (pdf)

Methanex to Relocate $550M Methanol Plant to Louisiana

The world’s largest methane producer Methanex Corp. (NASDAQ: MEOH) announced that it is moving yet another plant from Chile to Geismar, Louisiana. Last year, Methanex had announced the relocation of a separate plant from Chile to the same site in Ascension Parish.

Methanex plant in Chile

Methanex plant in Chile (photo – methanex.com)

This latest $550 million plant added to the vast manufacturing complex Methanex is building on the 225-acre site will require the creation of 35 new jobs, along with another estimated 207 indirect jobs.

The earlier methane plant, also a $550 million project, was announced last year in July and will create 130 direct and 996 indirect jobs. The construction of the combined $1.1 billion manufacturing complex will create more than 2,500 construction jobs.

Negotiations between the Vancouver, Canada-based company and the Ascension Economic Development Corp. have been ongoing since Aug 2011. Methanex considered many sites across the U.S. for the first plant before selecting Geismar.

They were attracted by the ready supply of cheap natural gas and other industrial gases required for their operations, in addition to the convenient transportation choices that include rail, barge, and easy road accessibility from the site to the interstates.

To secure the first project, Louisiana Economic Development (LED) offered Methanex $3.8 million in grants for infrastructure improvements, and another $1.5 million for relocation costs. This time around, Methanex is getting a $1.2 million grant for additional site improvements required for the second plant.

Tommy Martinez, president of Ascension Parish, said it was unprecedented that the same company was announcing two $550 million projects in the Parish within a period of 12 months.

Methanex will complete construction of the first plant by late 2014, and expects to start construction of this second plant in 2014 and finish in two years.

It may be a first for Ascension, but Louisiana has had a very similar experience with South African chemicals giant Sasol, which initially started off in 2011 considering a $4.5 billion ethylene cracker plant in Westlake. A year later, they expanded the project to a $16 billion to $21 billion integrated complex for a GTL and ethane cracker plant, which it expects will be operational by 2017.

The close similarities between the initial site selection and subsequent rapid expansions of the Methanex and Sasol projects shows a pattern where international chemical giants are finding a new home that they like very much in Louisiana.

Adam Knapp, president and CEO of the Baton Rouge Area Chamber which worked with Ascension Economic Development Corp to recruit Methanex to the Capital Region last year, said this second plant’s relocation was a testament to the strength of the region and the recruitment team’s international efforts.

NBCUniversal Kicks off $500M Plan to Bring Harry Potter to Hollywood

After a long decade of planning on its $1.6 billion “Evolution Plan” for its operations in Los Angeles, California, NBCUniversal has finally crossed the last major regulatory hurdle with the plan being approved by the county board of supervisors.

NBCUniversal Evolution Plan

NBCUniversal Evolution Plan (Infographic from nbcuniversalevolution.com)

Following the vote, NBCUniversal announced that it will be kicking off the project with a $500 million investment in the first phase, which includes bringing the Wizarding World of Harry Potter to Universal Studios Hollywood.

This phase, which additionally includes construction and upgrades of television production facilities, new and modern office space and other infrastructural improvements at Universal Studios, will create 2,000 construction jobs.

The full $1.6 billion Evolution plan includes a whole lot more, and will eventually lead to the creation of more than 30,000 jobs, including for both construction and operations.

The full plan, which includes the construction of the Hogwarts Castle, a couple of 500-room hotels, new post-production facilities and sound stages, is expected to generate $2.7 billion in economic activity during construction, and $2 billion in annual economic activity for operations thereafter. The county expects to gain $15 million in additional tax revenues each year.

NBCUniversal will be spending $100 million just to improve the transit and transportation arrangements and ease traffic in a 50-square-mile area around the Universal property.

They’re building a bikeway and a riverfront trailhead park, and working with local organizations on improvement and landscaping projects for neighborhoods adjacent to the 391-acre Universal Studios site.

In a blog post following the vote, County Supervisor Zev Yaroslavsky called the massive project a stimulus package, and said he expects it to pay dividends for generations to come.

Ron Meyer, president and COO of Universal Studios, said the county’s vote approving the plan sets the stage for their next 100 years in Los Angeles.

Corinne Verdery, chief real estate development and planning officer, NBCUniversal, said the working relationship they have built up with the community was critical to the progress achieved with the plan.

Verdery added that they were now looking forward to bringing Hogwarts to Hollywood, which she claims will change the face of tourism in Los Angeles, which is one of California’s premier tourist destinations with almost 42 million annual visitors.

BIO Report – Bioscience Economic Development Best Practices

The Biotechnology Industry Organization (BIO) has released a comprehensive report that serves as a best practices guide on bioscience economic development and provides data on state-by-state legislative initiatives and regulatory reforms introduced to support economic growth in biosciences.

BIO report on bioscience economic development

BIO report on bioscience economic development (photo – bio.org)

The report, titled “Bioscience Economic Development: Legislative Priorities, Best Practices, and Return On Investment,” was unveiled during the 2013 BIO International Convention underway at the McCormick Place Convention Center in Chicago, Illinois.

BIO undertook a review of initiatives in support of bioscience companies in all 50 states. Highlights from the report:-

- 15 states offer Small Business Innovation Research (SBIR) matching grants;

- 39 states offer R&D tax credits, many of which are higher if it is an in-state university doing the research. Seven states have made these R&D tax credits refundable, while three have made them transferable;

- 35 states offer sales tax exemptions for R&D equipment, while 33 states offer sales tax exemptions for biomanufacturing equipment. Seven states are even more specific, and have a sales tax exemption offered exclusively to bioscience companies;

- Seven states have a tax credit program for angel investors who invest in bioscience companies; and

- 14 states have made direct investments in bioscience companies.

Jim Greenwood, president and CEO of BIO, said that industry growth and bioscience economic development required wide-ranging collaboration between policymakers, the private industry and universities.

The report also includes a section on ROI success stories (scroll down to pg 11) which includes five case studies of stellar biosciences initiatives and investments made by California, Massachusetts, Kansas, Pennsylvania and Texas.

One of these case studies is the California Institute for Regenerative Medicine (CIRM), created in 2004 to further stem cell research and funded with $3 million in bond sales over a 10-year period. CRIM provides research funding, training and facility setup.

As of July 2012, CIRM had committed $1.1 billion in grants, which added to another $884.3 million in matching funds put up by grant recipients and other supporting organizations. This investment has created 24,654 new and full-time jobs, and generated $201 million in local and state tax revenues.

California’s biomedical industry has received $1.98 billion in venture capital funding and $3.33 billion in NIH grants over the last decade, which has provided the following returns:-

- 2,321 biomedical companies that generate a combined $69.2 billion in annual revenues;

- Together, these companies employ 152,806 employees at average annual wages of $101,658;

- Biomedical exports from California are worth $20 billion per year.

The U.S. bioscience industry supports 1.6 million jobs that pay 79 percent higher wages as compared to an average worker in the private industry.

Read the full bioscience economic development report from BIO – Download (pf)

Mobile App Developer Mobiquity Selects Gainesville, FL for Expansion

Wellesley, Massachusetts-based mobile solutions and application development company Mobiquity announced that it has chosen Gainesville, Florida as the site for an expansion that will create 260 new tech jobs.

Mobiquity

Mobiquity (photo – gainesvillechamber.com)

The new jobs being created in Gainesville will have average annual wages of around $49,000.

Mobiquity, which is barely two years old, already has 150 employees and is generating annual revenues worth around $20 million.

Gainesville and Alachua County successfully competed for this expansion project against sites in Massachusetts, Nebraska, Washington, Colorado and Rhode Island.

The two main draws for Mobiquity that tilted the scales in favor of Gainesville were the possibility of a partnership with the University of Florida to attract talent, and the existing presence of Mindtree Inc., which has a close working relationship with Mobiquity.

Bill Seibel, founder and CEO of Mobiquity, said that they were attracted to Gainesville because of the “combination of highly educated students, graduates and professionals, and an ideal location.”

Cammy Abernathy, dean of UF’s College of Engineering, said they were proud that the caliber of faculty and students was a key ingredient in helping recruit Mobiquity to Gainesville.

The Council for Economic Outreach (CEO), Alachua County’s economic development organization, worked closely on this project with UF, Alachua County, the City of Gainesville, Enterprise Florida and other stakeholders.

CEO has been negotiating with Mobiquity since Dec 2012, and has offered a significant incentives package for Mobiquity of more than $2 million.

The city and county commissions each approved $208,000 tax rebates to be paid out over a four year period under the state’s Qualified Target Industry (QTI) program. The city and county contributions are 10 percent each, with the State of Florida providing the remaining 80 percent as a matching tax incentive.

Gainesville Mayor-Elect Ed Braddy said the new jobs would be an economic boon for the city, and said that Mobiquity’s selection of Gainesville was a testament to the Council for Economic Outreach’s outstanding work in partnership with so many stakeholders to showcase the city’s potential and talents.

The exact location for the project within Gainesville has not been finalized, but Mobiquity expects to set up shop in Innovation Square, which is located between downtown Gainesville and the UF campus.

Environmental Achievements in Walmart Global Responsibility Report

Walmart unveiled its 2013 Global Responsibility Report (GRR), which highlights the company’s 2012 accomplishments in terms of environmental, corporate and social responsibility.

Walmart Global Responsibility Report

Walmart Global Responsibility Report (photo – walmart.com)

The 172-page report has a lot of data to wade through, but it’s clear that the environmental achievements and the company’s stated goals for this decade are massive, regardless of whether one thinks Walmart is doing enough.

Highlights from the report’s environmental responsibility section (begins on page 52):-

Walmart installed more than 100 rooftop solar installations last year in different states including California, Arizona and Ohio, in addition to a 1MW wind turbine. In total, Walmart has more than 200 solar installations which combine to make it the largest on-site green power generator in the U.S., with over.

On a global level, the company has more than 280 renewable energy projects operational, which provide more than 1 billion kilowatt hours of renewable electricity per year – enough to power 95,000 American homes.

Currently, 21 percent of their energy needs are fulfilled through renewable sources. The company’s Vision 2020 goals call for huge increase of renewable energy usage to 7 billion kWh per year by 2020 through on-site generation and purchase.

As per a pledge made in 2012, Walmart was to have reduced greenhouse gas emissions by 20 percent by 2012. They wrapped up this pledge a year ahead of schedule, and are on track to reduce their global supply chain GHG emissions by 20 million metric tons by 2015.

They have also committed to reducing Co2 emissions by three million metric tons by 2020, which is the same as taking 625,000 cars off the road.

Walmart’s fleet efficiency has gone up by 10 percent in 2012. They drove 11 million fewer miles last year despite having to deliver 297 million additional cases. If they had not improved fleet efficiency, they would have had to drive an extra 70 million miles.

This efficiency has saved $130 million in fuel costs and reduced Co2 emissions by 103,000 metric tons (equivalent to taking 20,000 cars off the road).

In terms of waste reduction, Walmart reduced plastic bag shopping waste by 38.1 percent in 2012, and partnered with suppliers to reduce packaging by five percent and the overall GHG emissions from packaging by 9.8 percent in U.S. Walmart stores, and by 16 percent in Walmart Canada stores.

Andrea Thomas, Walmart’s senior vice president of sustainability, said their customers should not have to choose between sustainability and affordable process, and promised they would continue to fulfill commitments to operate responsibly while keeping costs low for customers.

Read the full Walmart Global Responsibility Report – Download (pdf)

Monsanto Announces $400M R&D Expansion in Chesterfield, MO

Creve Coeur, Missouri-based bioscience and sustainable agriculture company Monsanto (NYSE: MON) announced that it is planning to consolidate its St. Louis-based R&D operations onto a single campus, which will require a $400 million expansion of its Chesterfield research facility.

Monsanto

Photo – Monsanto/wikipedia

The expansion will create 675 new high-paying jobs, in addition to 700 construction jobs. The 1.5 million-square-foot Chesterfield Village Research Center already has 1,000 employees.

Apart from the new research building, the expansion also involves the construction of 250 laboratories and 36 greenhouses, in addition to other plant growth chambers that can be set to climates from different parts of the world.

The existing site already has 250 labs, greenhouses over two acres, and 122 plant growth chambers. Once this expansion is complete, labs currently located in the headquarters in Creve Coeur will be moved to Chesterfield, freeing up more space for other uses.

The building, which is expected to be LEED certified, should be complete and ready for occupation by 2017.

Gov. Jay Nixon said in a statement that the major investment by Monsanto and the hundreds of high-tech and high-paying jobs further establishes Missouri as a powerhouse in the biotech sector.

Jerry Steiner, executive vice president, sustainability and corporate affairs at Monsanto, said the expansion ensures that the company’s researchers would have the facilities required to come up with the next generation of agricultural products.

St. Louis County Executive Charlie Doole said that Monsanto had turned into a magnet for attracting some of the world’s leading scientists to the region, and this new expansion would have a huge impact on the local economy.

Monsanto considered other locations, but their long relationship with the state (founded in St. Louis in 1901) coupled with the county’s plan to provide $22 million in tax breaks for Monsanto sealed the deal.

The Missouri Development Finance Board has been asked to provide Build Missouri bonds worth $9.5 million, and the company also qualifies for $22 million in tax credits under the Quality Jobs program.

Monsanto generated $13.5 billion in revenues last year, and the company has around 22,000 employees all over the world.

Facebook Announces $300M Data Center in Altoona, Iowa

Facebook has officially announced that it has chosen Altoona, Iowa as the site for its third data center in the United States and fourth in the world, following existing data centers in Prineville, Oregon and Forest City, North Carolina, in addition to another one in Luleå, Sweden.

Rendering of Facebook data center in Altoona, IA

Rendering of Facebook data center in Altoona, IA (photo – Facebook)

Facebook will invest a minimum of $299.5 million for the project, which is expected to create 31 jobs at average hourly wages of $23.12.

This investment will be for the first phase of the project, and will be used to build a 476,000-square-foot energy efficient data center with an outdoor cooling system.

Facebook has applied for and got approval from the City of Altoona for a total of three such phases.

The total investment for all phases combined at this time is estimated to be a billion dollars, with the possibility of the project being further expanded to 1.4 million square feet for a total investment by Facebook of $1.5 billion.

Facebook is planning for a green design for the building that will enable it to apply for LEED Gold certification.

Altoona Mayor Skip Conkling said he wanted to thank all parties involved for helping the city secure the project.

The Iowa Economic Development Authority (IEDA) held a meeting today during which it approved $18 million in incentives for Facebook under the state’s High Quality Jobs program. This includes $8 million in sales tax refunds for equipment and construction material purchase, and another $10 million in tax credits.

The City of Altoona has additionally agreed to a 20-year property tax abatement.

Jay Parikh, vice president of infrastructure engineering for Facebook, said that they were excited about having found a new home in Iowa with its plentiful wind energy and a great talent pool that would help them build and operate the data center.

Facebook will break ground on the site this summer, and will have the facility operational by next year.

Iowa Gov. Terry Branstad was also on hand for the announcement in Altoona, and said that Facebook’s selection of Altoona for its data center would further cement Iowa’s status as a destination for tech companies.

Coincidentally (or not…), the same IEDA board meeting also approved a request by Google for more tax credits for another $400 million expansion of its Council Bluffs, Iowa data center.

This will be on top of the initial $600 million investment and the $300 million expansion announced last year by Google, for which the state had approved $9.6 million in tax incentives. Google had applied to have it increased to $16.8 million to facilitate this latest $400 million expansion.

NYC Launches Pilot Program to Integrate Electric Taxicabs

NYC Mayor Michael R. Bloomberg got the first ride in the city’s first all-electric taxi, one of six Nissan Leaf vehicles donated by the company to the City for a pilot taxicab program that could eventually “electrify” a full one-third of New York’s 13,237 iconic yellow medallion taxicabs.

NYC Mayor Bloomberg takes first electric taxi ride

NYC Mayor Bloomberg takes first electric taxi ride (photo – NYC Mayor’s Office/Spencer T Tucker)

The pilot program is meant to find out if the six Nissan LEAF electric vehicles will be able to keep up with the 24/7 business and operational model of the NYC taxi industry.

It will help the city’s TLC (Taxi and Limousine Commission) come up with the foundation for a plan to convert one-third of the taxi fleet to electric vehicles by 2020.

If that eventually leads to an all-electric taxi fleet, the environmental and financial benefits would be significant, including:-

- Reduction in 90,000 tons of annual Co2 emissions;

- Reduction in fuel costs, which are around$17,500 per year at current gas prices; and

- Reduction in maintenance costs due to the elimination of wear and tear associated with internal-combustion engines.

Mayor Bloomberg said that even though the “Taxi of Tomorrow” won’t be on the roads for another six months, they were already looking at the taxi for the day after tomorrow. He added that the Nissan Leaf project would help provide answers to important questions on how to incorporate electric taxis into the fleet.

The Mayor’s Office of Long-Term Planning and Sustainability worked on this project in partnership with the U.S. Energy Department, NYC Transportation Department, and the New York Power Authority, among others.

Seward Park Cooperative is helping provide the electric vehicle fast charging stations required for the pilot program. These fast charges installed at several locations will be capable of charging the LEAF battery from zero to 80 percent in half an hour, making it possible for the vehicle to be used even by single shift drivers on a tight schedule.

Sergej Mahnovski, director of the Mayor’s Office of Long-term Planning and Sustainability, said that meeting the one-third fleet electrification goal would be the equivalent of taking 50,000 regular cars off the road.

Joe Castelli, vice president, Nissan Commercial Vehicles, said that the LEAF taxi pilot in New York would help the company improve its electric vehicle technologies for future applications.

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