Amazon Begins Site Selection for First Illinois Distribution Center With 1000 Jobs, Inc. announced that it is beginning site selection activities for its first distribution center in Illinois.


Amazon (photo –, Inc.)

The company plans to invest $75 million into the project, and expects to create at least 1,000 new full-time jobs.

Paul Misener, Amazon vice president, global public policy, said in a statement that the state of Illinois has an excellent workforce and they’re excited to roll up their sleeves and find the right locations, break ground, and start hiring.

This will be Amazon’s first physical distribution center in Illinois, and it is scheduled to be operational by next year. Amazon will begin hiring for the full-time jobs next year, and expects to fill at least 1,000 jobs by 2017.

Amazon has been opening one to two distribution centers in states all over the map, as a part of agreements worked out with the states that requires the retailer to start collecting taxes for online transactions. Under current federal law, it requires the company to have a physical presence in the state in order for transactions involving online purchases by state residents to be taxed.

However, laws taxing the purchases were passed by states and lawsuits against these laws have been making their way through the courts. Last year in October, the Illinois Supreme Court declared unconstitutional the so-called Amazon tax law which would have required Amazon and other large online retailers to start collecting and submitting sales taxes to the state. A similar law is now set to become effective starting next year.

The United States Congress is working on the Marketplace Fairness Act to sort out this disconnect between state and federal law. But Amazon and the states where it has reached agreements for collecting sales tax are now ahead of the curve. With the new distribution center located in Illinois, Amazon will be able to follow both state and federal law.

Of course, none of this takes away from the big impact that a $75 million investment with 1,000 or more new jobs will have in the Chicagoland community that Amazon selects for the distribution center. It also helps Amazon provide faster same-day delivery for the large Chicago market.

Gov. Pat Quinn said in a statement that Illinois is leading the Midwest in job creation and Amazon will strengthen that growth by delivering 1,000 new jobs to the state.

Senator Dick Durbin likewise noted that he couldn’t be more pleased that Amazon has chosen to make this substantial investment in Illinois, announcing 1,000 jobs with good benefits right off the bat and an opportunity to expand in the future.

Ohio TCA Approves Economic Development Incentives for Five Projects

At their latest monthly meeting, the board of the Ohio Tax Credit Authority approved economic development incentives to support five companies in creating 271 jobs and retaining another 339 jobs.

Tax credits

Tax credits

Together, the new jobs created will result in more than $11.7 million in new payroll. The five projects are expected to spur investments worth nearly $25 million across the state.

One of these five projects getting Ohio economic development incentives is an expansion project in the City of Columbus by Sage Sustainable Electronics LLC, a newly formed company that repairs and refurbishes used electronics and distributes them to new users.

Sage is investing $2.5 million to open its headquarters and a processing facility in Columbus. The project will create 52 new technology sector jobs, including the production workforce and the headquarters employees.

Columbus and Ohio secured this project despite competition from alternative locations in New Jersey and Nevada. The company still chose to stay in Columbus and establish the headquarters in an existing 26,000-square-foot facility on the City’s west side.

Sage Sustainable Electronics CFO Michael Keegan said in a release that they believe Columbus provides an ideal spot for their headquarters and first operating facility. Keegan added that the area hosts a large number of Fortune 1000 companies with strong investments in technology.

He also noted that locating their operations in Columbus allows them to capitalize on the extensive logistics and distribution infrastructure and a high quality workforce.

In order to secure the project, the Ohio TCA approved a 45 percent, six-year Job Creation Tax Credit for the Sage expansion. The company will also receive Columbus economic development incentives, subject to approval of the proposal by the Columbus City Council.

Columbus Mayor Michael B. Coleman said that they’re thrilled that this innovative new company with a unique business model has chosen to pursue their mission to change the world from right there in Columbus.

Apart from the Sage Sustainable Electronics project, the Ohio TCA also approved incentives for four other projects.

R.K. Administrative Services, LLC – This agricultural and farm equipment company is relocating to a new facility in the City of Waverly, OH and expects to create 120 new jobs. The TCA has approved a 50 percent, seven-year JCTC for this project.

Webster Industries, Inc. – Webster, a conveyer chain manufacturer, is creating 65 new jobs as a result of an expansion in the City of Tiffin, OH. The company has been approved to receive a 45 percent, seven-year JCTC for the project.

Lubrication Specialties, Inc. – This company is expanding in Chester Township, OH and plans to create 20 new jobs. Lubrications Specialties will be getting a 35 percent, five-year JCTC for the expansion.

Ampacet, Inc – This expansion project, whose location has not yet been finalized by the company, will create 14 new jobs. The Ohio TCA has approved a 40 percent, five-year JCTC for Ampacet’s expansion.

Photo credit – Lendingmemo/Flickr

Southwest Louisiana Gears Up for $8.1B Sasol Project With Final Approval for Ethane Cracker Complex

Sasol Limited (NYSE:SSL) announced their final approval decision for building an $8.1 billion ethane cracker and derivatives complex with six chemical manufacturing plants in Lake Charles, Louisiana.

Sasol plant in Lake Charles, Louisiana

Sasol plant in Lake Charles, Louisiana (photo – SASOL/Wikimedia)

This $8.1 billion project, along with a gas-to-liquids project with an estimated $11 billion to $14 billion investment, was announced by Sasol in Dec 2012.

The ethane cracker complex near the company’s existing facilities in Westlake, Louisiana will create 500 new jobs with an average annual salary of $88,000 and benefits.

As per estimates provided by Louisiana Economic Development, the project will support the creation of another 2,395 indirect jobs. Not to mention 5,000 construction jobs while the complex is being built over the next few years. Sasol already has 550 workers at the existing site in Westlake.

Apart from the $8.1 billion investment on the complex, Sasol is spending another $800 million at the site for land acquisition and for infrastructure and utility improvement costs, bringing the total investment for the project to nearly $9 billion.

Louisiana began angling for the ethane cracker project in early 2011. LED teamed up with the Port of Lake Charles and the Southwest Louisiana Economic Development Alliance to use GIS mapping technology for identifying potential sites for the project in Southwest Louisiana.

The 650-acre site near Sasol’s Westlake operations was selected as being ideal for the company’s needs. The site selection was made public in Sept 2011, and Sasol decided to simultaneously move ahead with the feasibility study for the GTL project.

In Dec 2012, Sasol executives joined Louisiana Governor Bobby Jindal to announce the Johannesburg, South Africa-based company’s plans to pursue both the ethane cracker and GTL projects in Louisiana.

The state is offering Sasol a customized incentive package for the total investment between $19 billion to $22 billion and the creation of more than 7,000 new direct and indirect jobs.

The incentives offered to Sasol include a $115 million grant to support the company’s additional $800 million investment in land acquisition and infrastructure improvement costs. The company will also be eligible for additional incentives under the state’s Competitive Projects Payroll Incentive program, Quality Jobs program, and the Industrial Tax Exemption Program.

Sasol will receive services from LED FastStart, the state’s workforce training program. Louisiana is also helping fulfill the company’s workforce needs by investing $20 million to establish a new training facility with necessary equipment required for industrial technology training at SOWELA Technical Community College in Lake Charles.

Sasol Limited President and CEO David Constable said in a release that the support they received from the local community and the State of Louisiana – and especially Gov. Jindal and Louisiana Economic Development – was a major factor in their decision to expand operations in the state.

“We are proud that Sasol is following through with its commitment to invest in this historic manufacturing project, and that the company is developing a project to the highest environmental standards in our state’s history,” said Gov. Jindal.

George Swift, president and CEO of the Southwest Louisiana Economic Development Alliance, noted that this is one of the most significant days in the industrial history of Southwest Louisiana.

Hiring and construction for the ethane cracker complex will begin next year. Sasol plans to make a similar final investment decision announcement for the GTL project within the next 24 months.

Indiana Regional Cities Initiative Study Findings

Indiana has released an interim study report that outlines key findings from a study of the growth strategies of eleven regional cities across the nation.

Indiana Regional Cities study report

Indiana Regional Cities study report (photo –

The study was commissioned by the Indiana Economic Development Corporation as called for under House Enrolled Act 1035 signed into law earlier this year by Governor Mike Pence.

The aim of the Regional Cities Initiative is to identify strategies that could help Indiana’s own cities transform into national economic powerhouses.

The IEDC worked with economic development consulting firm Fourth Economy Consulting to identify the regional cities to be studied, and then used the information and data collected to develop case studies and identify common themes found in these cities that could be applied in Indiana.

Regional cities were chosen for the study in three groupings of large, medium and small regional cities. The large ones included Austin, TX; Raleigh, NC; Denver, CO; and Nashville, TN.

The medium regional cities chosen were Durham, NC; Fayetteville, AR; Provo, UT; Boise, ID; and Waterloo-Cedar Falls, IA. The two small regional cities included for the study were Manhattan, KS and Brookings, SD.

Case studies were developed based on an analysis of data, literature reviews, interviews with civic leaders in each of the eleven regional cities, and seven site visits by representatives of the IEDC and the consulting team.

The case study information provided in the report is grouped into several themes or actions demonstrated in a majority of the regional cities.

- Bold vision, tenacious leadership, and broad civic infrastructure;

- Regions rally around cities;

- Higher education partners are critical for regional transformation;

- Financing regional transformation requires a multi-faceted approach;

- Regional investment supports quality of place;

- Engage and strengthen industry;

- Private sector investment responds to business climate and talent base; and

- Long-term partnerships with non-partisan thinking.

For example, one of the benchmark examples cited under the bold vision and tenacious leadership theme is that of Raleigh, NC. Mayor Charles Meeker was reelected for five terms and got the entire decade from 2001 to 2011 to carry out his vision developed during his city council days in the 80s and 90s.

Meeker’s leadership drove Raleigh’s focus on downtown development, including the development of an urban main street and a $220 million convention center. All told, $2.5 billion was invested in downtown developments in Raleigh.

The takeaways from all the case studies and the information collected during the study are listed at the end of the report (pg 28). It includes everything from visionary leadership to committed dealmakers and brave civic leaders who stand their ground to advance the transformation.

Another takeaway mentioned is the need for diverse partnerships that include civic, government, private and academic individuals and organizations.

Also cited is the need for a sense of urgency, because the call to action that led to the transformations of many of the cities came during periods of weakness. The report recommends that Indiana not wait until such an economic catastrophe occurs.

Read the full Indiana Regional Cities Initiative interim study report on

Wisconsin Economic Development Corp Secures Expera Corporate Headquarters

Specialty paper products manufacturer Expera Specialty Solutions LLC announced the selection of Kaukauna, WI as the site for their new corporate headquarters.

Expera Specialty Solutions

Expera Specialty Solutions (photo –

The company plans to invest several million dollars into the new headquarters project that will be located in the historic Eagle Mill facility in Kaukauna.

Expera was formed in 2013 after a merger, and has since been conducting corporate activities in several different temporary offices.

The company’s Thilmany Mill is located along the Fox River, close to the new headquarters building in the Eagle Mill.

Their selection of this site for the headquarters will result in the retention of several hundred jobs at the company’s plant in Kaukauna, in addition to around 30 jobs at the headquarters.

Expera already has around 1,800 employees at its four Wisconsin plants, and plans to create more jobs in future.

Not only is the Expera headquarters retaining and creating jobs and generating more investment, it will also help local revitalization plans for the historic Eagle Mill.

The renovated mill will be housing the Kaukauna Public Library on the first floor, and Expera’s move into the building’s second floor will help greenlight a 41-room hotel project that is being planned in the area.

Governor Scott Walker said in a release that the paper-making industry is vital to the Fox Valley, and this decision by Expera will further strengthen the region’s role in this key sector.

The Wisconsin Economic Development Corporation secured the project by offering Expera a $1 million loan to help the company establish their new headquarters in the Eagle Mill.

This is a five-year loan provided under the WEDC’s Business Opportunity Loan Fund. This fund provides financing for projects to spur capital investment, job creation and retention, and training funds for businesses that are starting up or expanding.

Wisconsin Economic Development Corporation Secretary and CEO Reed Hall said that they are pleased that Expera is able to utilize this fund for cementing its future in Wisconsin.

Expera Specialty Solutions President and CEO Russ Wanke said they are pleased that the WEDC is supporting the ability to revitalize the City of Kaukauna, adding that their business has been a part of this community for more than 130 years and this project ensures they have a bright future in the region.

Kaukauna Mayor Gene Rosin likewise noted that Expera and Thilmany Mill have been corporate partners with the City since 1883, and having them choose Kaukauna and Wisconsin as the location for their corporate headquarters underscores the paper industry’s rejuvenation in the Fox Valley.

ACEEE Scorecard – Top 10 Most Energy Efficient States

The American Council for an Energy-Efficient Economy has released its annual state energy efficiency Scorecard. The rankings and report show that governors and lawmakers across the map are taking major steps to increase their states’ energy efficiency.

ACEEE Scorecard - Most energy efficient states

ACEEE Scorecard – Most energy efficient states (photo –

The top 10 most energy efficient states, as per the ACEEE Scorecard, are – Massachusetts, California, Rhode Island, Oregon, Vermont, Connecticut, New York, Washington, Maryland and Minnesota.

Massachusetts once again topped this list for the fourth year in a row, with California maintaining its second place ranking. Rhode Island, Oregon and Vermont were all tied for the third place ranking.

Maggie Molina, ACEEE Utilities, State and Local Policy Program Director, said in a statement that Massachusetts has proven that it is possible to save more energy each year while creating jobs, boosting the economy and ensuring a cleaner environment for years to come.

Massachusetts Clean Energy Center CEO Alicia Barton noted that energy efficiency benefits go far beyond greenhouse gas reductions and lower energy costs – it has become a true economic driver in Massachusetts.

Barton added that because of energy efficiency investments made by Massachusetts, there are now more than 4,000 companies with over 65,000 workers who are inventing, delivering and exporting energy efficiency technologies to national and global markets.

The ACEEE also released some other key findings along with the Scorecard. The total budget for electricity efficiency programs nationwide in 2013 added up to $6.3 billion. Factoring in the $1.4 billion budgets for natural gas programs, the total efficiency program budgets were pegged at $7.7 billion.

California leads the way for building energy codes and compliance. New York and California are leading states for energy-efficient transportation policies. Rhode Island, Massachusetts and Vermont were named as leading states for utility-sector energy efficiency programs.

Rhode Island was named as one of the states with the most aggressive savings targets. Every dollar invested by Rhode Island in energy efficiency is generating $2 in benefits for the state’s residents, businesses and commercial operations. Rhode Island’s energy efficiency savings from 2005-2014 are expected to be able to meet 12 percent of the state’s total electricity demand by the end of this year.

The ACEEE named Arkansas as one of the most-improved states for 2014, along with Wisconsin, Kentucky and the District of Columbia.

Arkansas was singled out for making huge progress in tripling electricity savings. The state’s budget for electric efficiency programs has increased by 30 percent from 2012 to 2013.

JD Lowery, director of the Arkansas Energy Office, a division of the Arkansas Economic Development Commission, said in a statement that through innovative programs, both businesses and households in Arkansas have discovered the economic benefits of investing in energy efficiency.

“We’re creating jobs while saving Arkansans money. Everybody wins,” added Lowery.

See the full state-by-state energy efficiency rankings in the ACEEE Scorecard.

Seguin, Texas Economic Development Deploys Customer Analytics Tool for Retail Attraction

The City of Seguin, Texas is going to start using a customer analytics tool to boost their retail attraction efforts.

Seguin, TX

Seguin, TX (photo –

The City and the Seguin Economic Development Corporation will be using SCOUT, a customer analytics tool from Fort Worth-based Buxton.

This tool will help the City identify retailers that match the dining and shopping habits of consumers in the Seguin trade area, allowing the Seguin EDC to use and provide data-backed verification of retail potential.

Lisa McCay, vice president in Buxton’s public sector division, said in a release that their analytics will give local leaders the data they need to present a convincing case to retailers.

McCay added that they are thrilled to play a role in the City’s retail attraction efforts.

Buxton’s SCOUT is a web-based real-estate platform for customer analytics. It helps retailers and restaurant chains understand who their customers are, where more customers can be found, and how much value each one adds to the company’s bottom line.

You enter an address, and it will give you the revenue potential at that location. It will help identify the top new locations to further penetrate a market without impacting existing locations.

Local leaders and city officials can use the tool to analyze retail matches for specific parts of the city, so that they have the information at their fingertips while trying to attract retail and restaurant developments.

Buxton has worked with a long list of over 650 cities nationwide and helped them implement retail development strategies using SCOUT. Last month, the City of Las Vegas, NM announced that it was teaming up with Buxton to enhance its retail development strategy.

Before that, it was Thomasville and Fayetteville, NC and the City of Apache Junction, AZ. Other cities in Texas who have made use of Buxton’s analytics include Frisco, Temple and Little Elm, among others.

Earlier this year, the City of Rochester, NH renewed its partnership with Buxton for targeted retail recruitment. The customer analytics helped Rochester officials recruit prestigious projects from companies such as Staples, Lowe’s and Kohl’s, with Rochester getting a return of $91 for every dollar they invested in retail recruitment.

Restaurant chains like Hurricane Grill & Wings, McAlister’s Deli and others are making use of Buxton’s restaurant site selection solutions to identify the most ideal locations for expanding and opening new restaurants.

City of Seguin Executive Director of Economic Development Terry Trevino said the community’s robust diversified economy makes it an ideal location for retailers seeking new growth opportunities. Trevino added that they look forward to using Buxton’s analytics for attracting the right retailers to the community.

Rockford Economic Development’s Aviation Cluster Gets a Boost With AAR MRO Groundbreaking

AAR Corporation broke ground on a new maintenance, repair and overhaul facility (MRO) hangar at Rockford International Airport in Rockford, IL.

AAR MRO groundbreaking at Rockford International Airport in Rockford, IL

AAR MRO groundbreaking at Rockford International Airport in Rockford, IL (photo –

AAR Chairman and CEO David P. Storch was joined at the groundbreaking by Governor Pat Quinn and Senator Dick Durbin.

The $40 million AAR MRO facility covers 200,000 square feet on a 13-acre site, and includes a nine and a half-story jet hangar.

The project is expected to create 500 new jobs over five years, and was made possible with a $15 million state investment to build the new maintenance facility which the company will lease.

AAR is also getting a package of incentives that includes $7.5 million in tax credits over a 10-year period, and another $600,000 to help with the workforce training costs of the new employees being hired.

Apart from the new jobs and the investment generated by the project, the MRO facility will also provide a boost to Rockford economic development plans to boost the aviation cluster in the region.

The Rockford Area Economic Development Council issued a release which notes that AAR is paying $400,000 a year to lease the facility. Mike Dunn, executive director of Chicago Rockford International Airport (RFD), said in the release that this is a significant development that reinforces Rockford’s impact as a leading economic driver for the region.

The RAEDC also notes that the AAR development allows RFD to expand its capabilities to provide service and maintenance to the next generation of wide-body aircraft, and that airport officials are hoping that the MRO will help in attracting new air cargo business to Rockford.

AAR Chairman and CEO David Storch said that Rockford is the third-largest multi-modal port system in the world, which makes it a great place for aviation and for AAR to grow its presence and reputation in aircraft MRO.

Illinois Department of Commerce and Economic Opportunity Director Adam Pollet said that Governor Quinn led a strong public-private partnership that convinced AAR to make this investment, and added that the company’s investment will provide quality jobs to the Rockford region and secure its future as a hub for aviation work.

AAR chose Rockford for the MRO, after considering several locations in other states, because of the central location, warehousing and distribution network, specially-trained workforce, and the regional supply chain. Rockford is an aviation and aerospace manufacturing hub with more than 200 firms in this industry located within 150 miles, including six OEMs and eleven tier-one suppliers with a global presence.

The regional workforce includes 2.8 million working-age adults within 60 miles, over 56,000 engineers within 90 miles, and 50,000 students studying engineering within 500 miles. Training programs such as JiET-A are designed to combine academic studies at colleges and universities in the Rockford region with actual work experience with leading aerospace companies in the region.

Energy Efficient Insulation Producer Expanding Alabama Manufacturing Facility

Knauf Insulation, which recycles glass bottles into insulation used in construction to make buildings more energy-efficient, is expanding a manufacturing facility in Lanett, AL.

Knauf Insulation plant in Lanett, AL

Knauf Insulation plant in Lanett, AL (photo – Knauf Insulation/

The Shelbyville, IN-based insulation producer selected the Lanett plant for this expansion after considering several other production facilities in its network.

Knauf insulation is an international company and a part of the Knauf family of companies, with 40 manufacturing facilities around the world and $2 billion in annual sales.

Knauf’s Lanett plant recycles 300 million glass bottles annually (835,000 bottles per day), recycling the glass into strands to be used as energy efficient insulation.

The company’s advanced technology and equipment allow it to turn a single glass bottle into a 3,000-mile long glass strand. Use of this insulation saves, in the first year alone, twelve times the energy per pound that it takes to produce the insulation.

Knauf will now invest more than $30 million in the 800,000-square-foot Lanett plant to double production and upgrade equipment, making it one of the largest insulation factories in the U.S.

The company plans to create 100 new jobs, adding to the 120 existing employees already working at the facility.

Alabama Secretary of Commerce Greg Canfield said in a release that the Alabama team welcomes Knauf Insulation’s decision to expand its state-of-the-art operation in Chambers County and add 100 jobs to its workforce there.

Lanett being able to secure the $30 million investment and 100 new jobs is a direct result of earlier efforts by the Alabama economic development team and state and local officials to get the mothballed plant restarted, followed by efforts to position the plant as ripe for an expansion.

Chambers County has had a tough time since 2007-08, when a series of plant closings led to a 20 percent unemployment rate and forced the textile manufacturing community to look into diversifying its economy. The Knauf plant in Lanett, which had been operational since 1988, was shut down in June 2011 following the residential market collapse.

As the economy and real estate market improved, Knauf decided it would need more manufacturing capacity and evaluated several locations for the $20 million project. They finally chose the Lanett plant for reopening, citing the known quality of the workforce in Chambers County and the availability of workforce training programs, in addition to support from state and local officials.

The official reopening of the plant was held in January 2014. Aaron Wine, general manager of the Lanett plant, said that between the people in the state and the government of Alabama, it has been a great experience for Knauf Insulation to start up the Lanett plant. Wine added that it made the decision to expand a lot easier.

Walmart Expanding E-Commerce Distribution Network in Georgia, Pennsylvania

Wal-Mart Stores, Inc. (NYSE: WMT) unveiled their capital expenditure plans for the next fiscal year, and the focus is now squarely on investing heavily on e-commerce initiatives while moderating the physical growth of larger stores.

Walmart fulfillment center

Walmart fulfillment center (photo –

The initial beneficiaries of Walmart’s plan to invest heavily in expanding their e-commerce business are Union City, GA and Bethlehem, PA.

In Georgia, Governor Nathan Deal announced that Walmart is investing $108 million to establish a 1.2 million-square-foot distribution facility in Fulton County to support its e-commerce business. The project will create 400 new jobs over the next three years.

The company chose the site in Metro Atlanta after looking at multiple sites in the Southeast. Walmart was assisted by the Georgia Department of Economic Development, the Development Authority of Fulton County and Georgia Power.

GDEcD Commissioner Chris Carr noted that with a network of more than 11,000 logistics providers and a growing cluster of 400 IT companies specializing in supply chain-related applications, it’s clear that Georgia is the best location for Walmart’s e-commerce distribution operations.

Fulton County Commission Chairman John H. Eaves congratulated Walmart on this growth and thanked all the economic development partners supporting Fulton County’s efforts to make projects like this possible.

Meanwhile, Pennsylvania Governor Tom Corbett announced a second fulfillment center project by Walmart in Bethlehem, PA. Last year, the company announced a one million-square-foot distribution facility with 350 jobs in the Lehigh Valley Industrial Park VII in Bethlehem.

Now they plan to open another state-of-the-art fulfillment center in Bethlehem with 300 more jobs. The two projects put together will create 650 new jobs and generate $96 million in investments, with both facilities set to open in 2015.

The Bethlehem project was coordinated by the Governor’s Action Team. These Pennsylvania economic development professionals report directly to the Governor and work with businesses considering relocations or expansions.

Brent Beabout, senior vice president of supply chain and logistics for Walmart Global eCommerce, said that by combining large-scale online fulfillment centers with the company’s supply chain and 4,300 stores in the U.S., Walmart can serve more customers faster and at a lower cost.

Walmart will be investing a lot more on such e-commerce business expansion projects in FY 2016. According to their expenditure plans, capital investments will range between $11.6 and $12.9 billion, including an enhanced commitment for e-commerce. Walmart will be spending between $1.2 billion to $1.5 billion on e-commerce and digital initiatives.

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