Economic Development Blog

Economic Development

Economic Development Important To Energy In The Future

Oct 18

livewire.talkingpointsmemo.com/

Hillary Clinton elaborates on how economic development is pivotal to energy in the near future.

Energy is becoming increasingly more important in countries such as China and India. Hillary Clinton also stated that political stability is also important as energy thrives. The meeting was held at Georgetown University as policy guides would be sent to the U.S. Embassy. Reporting on energy issues and more outreach will be focused on the private sector. Hillary elaborated on how policy guides will be sent to nearly every U.S Embassy.

Energy issues will be focused upon as Hillary Clinton pinpointed three fundamental reasons:

Energy is considered to be at the core of geopolitics as energy is a source of cooperation and conflict.
Energy is also considered to power the economy as the environment needs to be managed.
Energy is also important to political stability as nearly 1.3 billion people have the proper access to energy.

Hillary pinpointed that easy access to power will lead to new businesses starting up as incomes are increased as the global economy is strengthened. Hillary also stated that many developing countries are consuming energy at a faster rate compared to developed countries. Hillary states that India and China are having their energy needs increase at a much more rapid rate. The global supply of natural gas has increased as more opportunities are created for gas producers as the world’s dependence on oil decreases. Much higher levels of security are also needed as atomic plants are getting less secure. Hillary wants to hold the world to a much higher standard as countries make their borders much stricter. Hillary also wants the United States to do its part in conducting more research as more plants are built in a time frame that is realistic.

Overall, economic development will be pivotal as energy is developed currently and in the near future.

It’s a Coal Mine…An Airport…An Economic Development Project

Oct 18

Federal bureaucracy and red tape are often synonymous, but the sad story of the Grundy Municipal Airport extension project in Virginia is in a whole different league.

Red Tape (Photo – house.gov)

For three years now, officials from Grundy, VA and Buchanan County have been butting heads with the Office of Surface Mining (OSM) in Washington D.C., trying to get a permit to extend the airport’s runway from 2,200 feet to over 5,000 feet, which is what they need to allow corporate jets to land.

What does the OSM have to do with an airport project? Well, it seems you cannot start digging in these parts without getting a mining permit because of the coal below ground.

The Virginia Department of Mines, Minerals and Energy provided an exemption and allowed the project to go forward without having to apply for a state mining permit. The exemption was based on state-funded project regulations which apply to projects where the coal removed is incidental and necessary to avoid hazards to the project.

But a federal mining permit exemption was not forthcoming because OSM makes no such distinctions. The local officials and federal bureaucracy have been trying unsuccessfully for the last three years to untangle this mess and decide if it should be called an airport or a coal mine.

The OSM refuses to budge because they say the state and local authorities plan to sell the coal they dig up in order to defray some of the costs of the $60 million runway extension. The county, for its part, could not agree to label the project as a coal mine because municipalities cannot hold a mining permit.

Meanwhile, the delay costs have already crossed $20 million because the price of coal has tanked in the interim. Also, every day without corporate jets being able to land means the county cannot be pitched for new projects to site selectors, since this is the only airport in Buchanan County.

The county has built a brand new 1,200 acre business park atop a mountain that was flattened for mining. But anyone who wants to come here has to fly into Abingdon, Virginia and then drive for an hour and a half on mountain roads in order to get to Grundy.

The stalemate continued for three years, until U.S. Sen. Mark Warner stepped in and forced the federal bureaucrats from Washington back to the negotiating table. After a lot more talk, everybody agreed that it was not a coal mine, but an airport. As such, OSM was replaced by the FAA as the main federal agency involved in the project.

Hopefully, the FAA will allow the runway to be extended before the people of Grundy and Buchanan County give up hope and turn their only airport into a coal mine.

GM Announces $35M Investment to Build Cadillac ELR at Detroit-Hamtramck

Oct 18

The General Motors Detroit-Hamtramck Assembly plant Michigan is gearing up to build the Cadillac ELR, a luxury coupe featuring extended-range electric technology. It is the first two-door car built at the plant since the 1999 Cadillac Eldorado.

Cadillac Converj concept (Photo – GM)

The addition of the ELR to Detroit-Hamtramck represents a $35 million investment. The announcement was made by General Motors North America president Mark Reuss during his keynote address at the SAE Convergence Conference in Detroit.

“The ELR will be in a class by itself, further proof of our commitment to electric vehicles and advanced technology,” said Reuss. “People will instantly recognize it as a Cadillac by its distinctive, signature look and true-to-concept exterior design.”

Speaking about production of the new Cadillac ELR, Reuss misspoke a bit and said the facility planned to add 35 million jobs, instead of saying that it would need a $35 million investment. He quickly corrected himself and found some humor in his slip of tongue – “”Wouldn’t that be great, right? No one would care about this election,” said Reuss.

Even if they are not getting 35 million new jobs, UAW vice president Joe Ashton, who directs the union’s GM Department, seemed happy enough.

“This investment reflects the corporation’s confidence that the highly skilled members of UAW Local 22 can successfully build one of the most technologically advanced vehicles in the world,” said Ashton. “The hard work and dedication of our members demonstrates that we can competitively manufacture products for the future right here in Detroit.”

The ELR Cadillac will use electricity as its primary power source to drive the car without using gasoline or producing tailpipe emissions. When the battery’s energy is low, the ELR switches to a gasoline-powered electric generator to allow hundreds of additional driving miles. The lithium-ion battery will be built at GM’s Brownstown Battery Assembly plant in Brownstown, Michigan.

This $35 million investment in Detroit-Hamtramck increases total product investment by GM to $561 million since December 2009. Detroit-Hamtramck has 1,400 hourly employees and is the only U.S. automotive manufacturing plant that mass produces extended-range electric vehicles. Production of the Cadillac ELR is scheduled to begin in late 2013.

Penn State Gets $10M For Biofuel-Based Economic Development Research

Oct 17

The U.S. Department of Agriculture (USDA) has awarded Pennsylvania State University a five-year $10 million research grant to “develop biomass supply chains for the production of liquid transportation and aviation biofuels in the Northeast.”

Penn State research staff planted shrub willow (Photo – psu.edu)

The grant is being made through USDA’s National Institute of Food and Agriculture (NIFA), and goes to the Northeast Woody/Warm-season Biomass Consortium (NEWBio).

NEWBio will promote the use of marginal farmland and abandoned lands, such as reclaimed mine sites, so that these crops will not compete for resources with food production.

“The Northeast has substantial demand for transportation fuels, an educated and capable rural workforce, and more than 3 million acres of marginal, degraded and abandoned land that could become productive, profitable sources of biomass with improved management,” said project leader Tom Richard, professor of agricultural and biological engineering and director of the Penn State Institutes of Energy and the Environment.

“Sustainable bioenergy systems could provide broad societal benefits,” added Richard. “NEWBio is aimed at overcoming existing barriers and dramatically increasing the sustainable, cost-effective supply of lignocellulosic biomass, while reducing net greenhouse gas emissions, enhancing ecosystem services and building vibrant communities.”

Spanning from New England to West Virginia, the project also will engage state and local agencies, citizen groups, environmental and economic development organizations, and companies in fields such as crop genetics and fuel manufacturing and use.

“The creation of this biofuel system will significantly contribute to improving rural prosperity and job creation in the Northeast by funding effective public and private sector partnerships,” said Agriculture Secretary Tom Vilsack.

The biomass research will develop sustainable production practices to improve yield by 25 percent and reduce costs by 20 percent. Richard said project partners believe that perennial energy crops can play a central role in creating a sustainable bioenergy future for the Northeast.

“This region encompasses less than 10 percent of the land area of the United States yet is home to over 20 percent of its population,” says Richard. “Biomass energy could provide the social, economic and ecological drivers for a sustainable rural renaissance.”

Bell Helicopter Breaks Ground on Fort Worth, TX Global HQ

Oct 17

Bell Helicopter, a Textron Inc. company (NYSE: TXT), has commenced construction for its new global headquarters in Fort Worth, Texas.

Bell Helicopter ground breaking ceremony in Fort Worth, TX (Photo – Texas Governor’s Office)

Texas Gov. Rick Perry and John Garrison, president and CEO of Bell Helicopter, were accompanied by other officials and company executives for the groundbreaking ceremony.

“Bell Helicopter has long been an important and valuable member of the Texas aerospace and aviation community, and we’re excited they have recommitted to keeping Texas the home of this dynamic and enduring endeavor,” said Texas Gov. Rick Perry.

Bell Helicopter plans to invest $230 million in new and upgraded facilities as part of a comprehensive revitalization effort.

The investment and resultant new global headquarters will provide Bell Helicopter’s more than 6,000 North Texas-based employees with a better work environment, and will help the company attract and retain talent as it grows its business in Texas.

“This is an investment in our future that enables us to become a stronger global competitor while providing our employees with a better, safer, more comfortable work environment,” said John Garrison, president and CEO of Bell Helicopter.

The revitalization effort is designed to consolidate more than 1.2 million square feet of excess space, reduce building maintenance costs and reduce 20 percent of the company’s waste and energy use by 2015.

These changes are expected to increase cost-competitiveness and are projected to save Bell Helicopter $19 million in annual operating expenses.

The new headquarters will be home to administration, support functions, program offices, a customer center and an integrated training facility. The Bell Helicopter training facility, currently located at Fort Worth Alliance Airport, are also being moved to the new HQ. All told, about 700 Bell semployees from other sites will be moved to Forth Worth.

“Bell Helicopter is a large part of the rich legacy of the aerospace and defense industry in Fort Worth. I am proud to have Bell Helicopter headquartered in Fort Worth and honored that the city is a partner in these vital investments,” said Fort Worth Mayor Betsy Price.

The city and county have agreed to provide an incentives package that includes $17.9 million in tax breaks for Bell. The newly renamed Bell Helicopter Boulevard between Highway 10 and Trinity Boulevard will provide primary access to the new Bell global headquarters.

Bell has an estimated $5.9 billion impact on the North Texas economy, where it is responsible for the creation of around 33,000 jobs.

Hudson Valley Food & Beverage Alliance Gets $3.4M EDA Grant

Oct 16

The Hudson Valley Food & Beverage Alliance in New York has been awarded $3.4 million by the U.S. Economic Development Administration (EDA).

Sen. Chuck Schumer (Photo – senate.gov)

The disaster recovery grant is supposed to be used to launch a new coalition and facility to help local flood-ridden farmers recover from last fall’s tropical storms and develop new business opportunities with New York food companies.

“This federal investment is incredible news for farmers across the Hudson Valley, who will finally see a source of relief from last year’s flooding through this unique rebuilding opportunity at the Culinary Institute of America,” said U.S. Sen. Chuck Schumer. “It’s a win-win for our companies and our farmers, and it’s a smart federal investment that will help our local economy bounce back from the storms.”

Specifically, the HV Food and Beverage Alliance will use the EDA investment at the Culinary Institute of America (CIA) in Poughkeepsie to construct a new facility that is designed to help farmers link up with New York food and beverage producers such as Dannon and Pepsi, in addition to smaller manufacturers who provide auxiliary services to the regional food industry.

The CIA and HVEDC plan to use federal funds to help finance the construction of a physical headquarters for the HV Food and Beverage Alliance.

The grant will enable innovative training opportunities at the CIA’s new center that will revive generations-old agricultural mainstays in the Hudson Valley, such as Wigsten Farm.

The center will also offer farmers the necessary resources to recover from Tropical Storm Irene, sustain their current farming operation as well as expand and create new economic opportunities.

For example, the center will be able to offer farmers information on which crops interact well with one another, which cash crops may affect their current crops and which high-demand and emerging specialty crops may be best suited for their specific farm.

The proposed CIA Center and food and beverage alliance will offer networking events, workshops and workforce development based on the individual and collective needs of local farmers who are recovering from the storm.

This funding for flood-impacted farmers in New York comes from the $200 million appropriated for the EDA by Congress under FY 2012 “mini-bus” legislation to be distributed to disaster-ridden counties.

In addition to what FEMA does, the EDA is using this funding to help with strategic planning, infrastructure development, and as capital for alternative financing aka the Revolving Loan Fund (RLF) for non-profit and governmental entities to establish an RLF which in turn can make below market-rate loans to businesses to help recovery.

ACF Awards $27M for Community Economic Development

Oct 15

The U.S. Office of Community Services (OCS) has awarded Community Economic Development (CED) grants totaling $27 million to 38 different Community Development Corporations (CDCs).

Community Economic Development (Photo – hhs.gov)

OCS is a part of the Administration for Children and Families (ACF), which in turn comes under the U.S. Department of Health and Human Services (HHS).

The CED grants are intended to help the CDCs create new employment and business opportunities in low-income communities.

Of the 38 grants, 13 grants totaling $10 million are for the Healthy Food Financing Initiative (HFFI), a multi-agency effort between HHS, the Departments of Agriculture (DOA), and the Treasury.

HFFI helps provide access to healthy, affordable food to people in underserved communities. The grants also promote economic growth through the creation of employment and business development opportunities for low-income individuals.

The 38 grantees will put up an additional $97 million in leveraged funds from other sources to finance the local projects. For example, the Youngstown Neighborhood Development Corporation in Youngstown, Ohio, is getting a $788,673 HFFI grant that will be used as funding for a farmer’s market.

Similarly, the ABC Community Empowerment Community Development Corporation in Norfolk, Virginia is getting $728,750 to fund an adult day care center. Hill House Economic Development Corporation is getting $788,673 as partial funding for a full-service grocery store in Pittsburgh, Pennsylvania.

CED grants are federal grants given to projects that create employment opportunities and lead to increased self-sufficiency for low-income individuals through a variety of activities, such as:

- Capital expenditures such as the purchase of equipment or real property;

- Allowable operating expenses; and

- Loans or equity investments.

CED funds a variety of projects, including business incubators, shopping centers, manufacturing businesses and agricultural initiatives. In order to be eligible, the CDCs must be focused on planning, developing or managing low-income housing or community development projects.

Find out more about the CED grants and see the full list of all 38 FY 2012 CED grantees on the hhs.gov website.

New York Tops PwC Cities of Opportunity Study

Oct 12

The fifth annual edition of the Cities of Opportunity study released by PricewaterhouseCoopers and the Partnership for New York City shows that New York and London still lead cumulative scoring among the 27 cities included in the study, although emerging cities are closing the gap for key economic indicators.

PwC Cities of Opportunity Study (Photo – pwc.com)

New York officially edges out London by one point across 10 economic indicators, and Toronto came in third. Paris and Stockholm rounded out the top five.

“New York City and London, along with other established cities, maintain their top status because of a depth and diversity of strength across all measures. But the true value of this report is not just the rankings; it is that every city can learn from one another about what works when building a 21st century city,” said Partnership for New York City president and CEO Kathryn Wylde.

“Cities succeed when they invest in core needs important to both people and businesses,” said Bob Moritz, PwC US chairman and senior partner. “When a city invests continuously and aggressively in critical areas, including education, healthcare, safety and infrastructure, it creates a healthy urban environment.”

Listed below are the 10 economic indicators on which the rankings are based, along with the top three cities in each category.

- Intellectual capital and innovation: Stockholm, Toronto, Paris

- Technology readiness: Seoul, San Francisco, New York

- Transportation and Infrastructure: Singapore, Seoul/Toronto (tied for second), Tokyo

- Health, safety and security: Stockholm, Toronto, Sydney

- Sustainability and the natural environment: Sydney, San Francisco/Toronto (tied for second), Berlin

- Economic clout: Beijing, Paris, London/New York (tied for third)

- Ease of doing business: Singapore, Hong Kong, New York

- Cost: Berlin, Seoul, Kuala Lumpur

- Demographics and livability: Paris, Hong Kong/Sydney (tied for second), San Francisco

- City gateway: London, Paris, Beijing

The “Ease of doing business” indicator results saw little change in the final results as compared to last year, with the top five remaining virtually the same. Singapore and Hong Kong swapped the top spot, followed by New York, London, and Toronto.

While both New York and Toronto scored high overall, neither topped any of the 10 categories. It’s also telling that San Francisco ranked high for technology readiness, sustainability, and demographics and livability, without being in the top five for cost or ease of doing business.

The last indicator, City gateway, is a new addition in this year’s study. It seeks to measure a city’s global attraction.

Read the full PwC cities of Opportunity study – Download (pdf)

Gov. Cuomo Continues NY REDC Tour in the North Country

Oct 11

New York Governor Andrew M. Cuomo continued his statewide Regional Economic Development Council (REDC) Progress Tour in the North Country, where he toured priority projects that had been funded last year.

Gov. Cuomo on REDC Tour to North Country (Photo – NY Governor’s Office)

This is the third visit in the Governor’s REDC Progress Tour, after two earlier visits to Central NY and Long Island.

“New York has transformed the way the state approaches economic development by empowering local communities to build plans specifically tailored for their regions,” Governor Cuomo said. “The North Country Regional Council is successfully putting its regional plan to work, and it is creating jobs in their communities and growing the local economy.”

“Last year, the North Country Regional Council developed a strategy designed to help transform the future economy of the North Country by supporting and attracting business growth and job creation,” said North Country Regional Council co-chairs Garry Douglas and Tony Collins. “Last year, we had a great story to tell about what we were going to do, and this year, we have an even better story to tell about the great work that we are doing.”

In last year’s round of competitive economic development funding between the 10 REDCs, North Country was awarded $103.2 million for 70 projects through the CFA process. On this tour, Gov. Cuomo visited seven of these projects to see firsthand what progress has been made, how the money is being used, and how big an impact the project has had so far on the community.

Hamilton County/Frontier was one of the recipients, awarded a grant of $472,000 for the Hamilton County Broadband Phase I project. It will provide high speed internet access to residential and business customers in Hamilton County communities, and support the growth of telecommuters and new business in the region.

Another project Gov. Cuomo checked out was the redevelopment of the Lyons Falls Mill site, a long-time vacant, former paper mill, into a mixed-use, shovel-ready business park, creating construction jobs throughout the duration of the project. The Lewis County Development Corporation was awarded $330,000 for this project, which will also support the expansion of an existing hydro-facility and accommodate other sustainable energy facilities.

All 70 North Country priority projects put together are expected to create and retain more than 2,000 permanent, non-construction jobs and bring in more than $170 million in additional private sector investment.

“Through its first year, we have seen job-creating projects in the North Country and across the state start to take shape and pay dividends in new jobs and economic activity to boost our local economies,” said Empire State Development president, CEO and commissioner Kenneth Adams.

The full list of projects endorsed by the North Country Regional Council for this year’s round of competitive funding can be found here.

$20M Grants for 10 Projects Under Manufacturing Jobs Challenge

Oct 10

The federal government announced that 10 public-private partnerships in nine states will receive $20 million in total awards to help revitalize American manufacturing and encourage companies to invest in the United States.

Jobs & Innovation Accelerator Challenge (Photo – manufacturing.gov)

The 10 partnerships were selected through the Advanced Manufacturing Jobs and Innovation Accelerator Challenge, which is a competitive multi-agency grant process announced in May 2012 to support initiatives that strengthen advanced manufacturing at the local level.

The 10 winning projects will each be getting around $2 million. New York and Pennsylvania are the only states which have two winning projects each. The other six projects are in California, Michigan, Oklahoma, Tennessee, Washington and Oregon.

One of the two projects in New York which was awarded $1,889,890 is a proposal to “Accelerate Innovations in Advanced Manufacturing of Thermal and Environmental Control Systems.” It is a project of Syracuse University, NYSTAR, the State University of New York’s College of Environmental Science and Forestry and Onondaga Community College.

The project is supposed to help accelerate the rebirth of a cluster of small and medium-sized enterprises in Central New York that manufacture thermal and environmental control systems by strengthening cluster networks, enhancing links to sources of innovations, and increasing exports.

“We have a goal of doubling this region’s exports in the next five years, diversifying our economic base, increasing private investment and creating new jobs,” said Robert Simpson, president of CenterState CEO.

The other NY project, which was awarded $1,889,936, is the Rochester Regional Optics, Photonics and Imaging Accelerator. It is a project of the University of Rochester, NYSTAR and High Tech Rochester Inc.

“This massive federal investment is great news for Syracuse University and will serve as a catalyst for job creation and further private investment in the Syracuse University’s Thermal and Environmental Control Systems Cluster Accelerator,” said U.S. Senator Chuck Schumer (D-NY). “I am thrilled that the Economic Development Administration and the other participating federal agencies have invested nearly $1.9 million in this University program, which aims to harness the Central New York’s strengths in education, technology development and high-tech manufacturing to create jobs.”

The investment for these awards comes from the U.S. EDA and the following federal agencies – the National Institute of Standards and Technology (NIST); the U.S. Department of Energy (DOE), the U.S. Department of Labor’s Employment and Training Administration (ETA); the U.S. Small Business Administration (SBA); and the National Science Foundation (NSF).

“It’s time to see ‘Made In America’ again starting right here in New York,” said U.S. Senator Kirsten Gillibrand (D-NY). “When we harness the full potential we have right here in Central New York, we can spark more growth in clean-tech and high-tech manufacturing by strengthening our businesses and attracting new businesses with our highly skilled, highly trained workforce, and create more family-supporting jobs right here where we need them the most.”

You can read the full list and details of all 10 projects that have won these EDA grants on the DOL.gov site.

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