Texas, Nebraska Awarded Site Selection Governor’s Cups

Site Selection magazine’s latest issue includes the annual Governor’s Cup rankings for states attracting the most new and expanded corporate facility projects, but there’s a twist this year – there are two Governor’s Cups being awarded.

Texas #1

Texas (photo –

The 657 qualifying Texas economic development projects in 2013 helped the Lone Star State win the Site Selection Governor’s Cup yet again.

Qualifying projects are those which have met at least one of the following criteria – project must create 50 or more new jobs; or require a capital investment not less than $1 million; or involve new construction that adds at least 20,000 square feet of space.

Gov. Rick Perry, who is getting his fifth Governor’s Cup, said that states are the laboratories of innovation, and Texas continues to be a beacon of opportunity for job creators and entrepreneurs.

Site Selection editor in chief Mark Arend said that areas compete aggressively for capital investment, and Texas’ latest first-place Governor’s Cup finish is evidence of a highly successful economic development strategy.

Texas was followed by Ohio with 480 projects, Illinois with 383, Pennsylvania with 348, and Michigan with 312 projects.

Illinois Department of Commerce and Economic Opportunity Director Adam Pollet said that moving up to third place in the Site Selection standings is great, but added that they aren’t going to be satisfied until Illinois is number one on the list.

The remaining five states in the top 10 list for number of corporate facility projects in 2013 are Georgia (299), North Carolina (223), Virginia (208), Florida (193) and Tennessee (187).

A new addition this year is a second Governor’s Cup list based on the number of projects per capita (per million). Nebraska topped this list with 109 projects, which means Nebraska Governor Dave Heineman gets the first per capita Governor’s Cup from Site Selection magazine.

Gov. Heineman said he was thrilled that Nebraska has earned the 2014 Governor’s Cup for economic development.

Gov. Heineman also said that he appreciates this new methodology, because the big states will always win if it’s only based on the number of projects, and added that a per capita measure is fairer to small and medium-sized states in that they can feel like they’re making progress.

Catherine Lang, director of the Nebraska Economic Development Department, said that earning the Governor’s Cup over this outstanding field confirms that the hard work of the state’s economic developers in combination with all the amenities Nebraska offers is getting noticed by corporate players in the global economy.

Nebraska was followed on the per capita list by Ohio, which placed second on this list as well. Louisiana was in third place, with Kentucky and Kansas rounding out the top five.

Site Selection also released its list of top metros for new and expanded facilities for 2013. This list was topped by Chicago-Naperville-Elgin, IL-IN-WI for MSAs with populations exceeding one million.

Omaha-Council Bluffs, NE-IA topped the list of MSAs with populations between 200,000 and 1 million. For metro areas with populations below 200,000, the list was topped jointly by the Sioux City, IA-NE-SD; Altoona, PA; and Dubuque, IA metro areas.

NE, AK Universities Get NIST MEP Funding to Support Manufacturing

The NIST Hollings Manufacturing Extension Partnership (MEP) has awarded the University of Nebraska-Lincoln and the University of Alaska Anchorage funding to shore up manufacturing support in both states.

NIST MEP impact

NIST MEP impact

The University of Nebraska-Lincoln has been awarded $600,000 and authorized to establish an MEP center.

The $600,000 represents half of the MEP center’s annual operating funding needs. The University is required to come up with matching funds from non-federal sources for the remaining half.

The second grant announced by MEP was a $150,000 funding award to the University of Alaska Anchorage, provided as a State Technology Extension Assistance Project.

This funding will assist the University assess the technical needs of small and mid-sized manufacturers in the state, as Alaska looks towards diversifying its manufacturing base.

This effort is being undertaken by the University on behalf of MEP, and may lead to the establishment of an MEP center in Alaska.

MEP is a program of the U.S. Department of Commerce, housed under the National Institute of Standards and Technology (NIST).

MEP works with small and medium-sized manufacturers, helping them with innovation strategies, improvements, implementation of green practices, etc. that help the manufacturers create and retain jobs, increase sales, and save time and money.

In FY 2013 alone, MEP served 30,131 manufacturers. Manufacturers receiving MEP services reported 62,703 increased and retained jobs, cost savings of $1.2 billion and new client investments worth $2.6 billion. Not to mention $6.2 billion in retailed sales and another $2.2 billion in new sales.

MEP has worked with more than 76,000 manufacturers in the past 25 years, helping them rack up sales worth $79 billion and savings worth $12.8 billion.

MEP was first established in 1988, and has since helped create 636,000 jobs and more than $20 billion in investments in the U.S. manufacturing sector.

Every dollar invested by the federal government through MEP generates $19 in new sales growth and $21 in new client investments. MEP helps create or retain one manufacturing job for every $1,978 of federal investment.

The new MEP center in Nebraska and another one possibly in the pipeline in Alaska will join a national network of 400 centers and field offices in all 50 states and Puerto Rico, with a staff that includes more than 1,200 technical experts.

Tejas Tubular Steel Pipe Plant to Create 200 Jobs in Nebraska

Houston, TX-based Tejas Tubular Products Inc., has chosen Madison County, Nebraska as the site for a new tubular steel pipe manufacturing facility.

Tejas Tubular Products

Tejas Tubular Products (photo –

The company will begin construction on the 350,000-square-foot oil country tubular goods (OCTG) facility in the City of Norfolk this year, and expects the project to be completed by mid-2015.

Tejas Tubular is applying for state incentives for the project under Nebraska Advantage tier six, which requires a commitment to create a minimum of 50 new jobs and an investment of at least $109 million.

However, Tejas Tubular actually plans to hire more than 200 employees for the facility when it is fully operational.

In order to facilitate the project, Tejas Tubular has been approved for a package of state and local incentives including $1.4 million from the State of Nebraska under the Site and Building Development Fund, which offers financial assistance for infrastructure development and improvements, and for other pre-approved costs.

Tejas Tubular is also getting another $3.6 million from the City of Norfolk, as the City is authorized to use local tax dollars for economic development under the Local Option Municipal Economic Development Act.

Norfolk Mayor Sue Fuchtman said the project was made possible because the citizens of Norfolk have spoken through their votes, making economic development and growth a priority.  Mayor Fuchtman said that bringing Tejas Tubular to Norfolk was a monumental accomplishment for their community and for all of northeast Nebraska.

Max Tejeda, owner of Tejas Tubular Products, Inc., said they were impressed with Nebraska’s fiscally-conservative approach to doing business, and added that the City of Norfolk was also instrumental in convincing them to select this location.

The new facility will be producing casing, drill pipe and line pipe used by the oil and gas industry, with the steel required by Tejas Tubular being supplied by the Nucor Steel Bar Mill, also in Madison County.

Dirk Petersen, general manager of Nucor Steel Bar Mill, said their strategic partnership, as well as the location to markets, is a win-win for both companies. Peterson said it shows the Norfolk community’s commitment to business, creating American jobs and supporting American energy independence.

Nebraska Governor Dave Heineman said in a statement that this investment is a good example of how Nebraska is moving forward as a desired, premier destination for companies looking to expand and create jobs.

Iowa, Nebraska Form Two-State Regional Economic Development Organization

Nebraska Governor Dave Heineman and Iowa Governor Terry Branstad came together in Omaha to sign an agreement to form a two-state, regional economic development organization as a collaboration between southeast Nebraska and southwest Iowa.

Bob Kerrey Bridge between Omaha and Council Bluffs

Bob Kerrey Bridge between Omaha and Council Bluffs (photo –

The Omaha–Council Bluffs metropolitan area has a regional population exceeding 885,600, and thousands of these residents cross over for work across the Missouri River separating the two cities.

As per the agreement, the Greater Omaha Economic Development Partnership will be joined by regional organizations in Iowa including Advance Southwest Iowa – the freshly minted public-private partnership of the City of Council Bluffs.

Gov. Branstad said there is a national trend throughout the U.S. towards building mutually-beneficial economic development partnerships. He added that this type of regional approach would give them more clout on the national scene and help bring more jobs to southwest Iowa.

Gov. Heineman said a strong regional economy benefits both states, and added that one of the most exciting parts of this announcement was that the Greater Omaha EDP will now be able to provide inquiring companies and clients with more choices.

Other Iowa entities that will formally join the Greater Omaha EDP include the Council Bluffs Chamber of Commerce, Iowa West Foundation, Pottawattamie County and the Western Iowa Development Association.

The Iowa West Foundation, which played a key role in the development of the two-state collaboration, announced a grant of $2.2 million over the next five years to support economic development through the new regional partnership and the Council Bluffs Chamber of Commerce.

Pete Tulipana, president and CEO of the Iowa West Foundation, said the foundation served as a convener of the Iowa partners to begin the dialogue on regional economic development.

Bob Mundt, president and CEO, Council Bluffs Chamber of Commerce, said the Iowa coalition inquired about joining the Partnership in early 2013 after observing the successes and synergies of communities working together as an economic development region.

The two-state partnership will be focusing on a five-year program that will include business retention and expansion, talent recruitment, and entrepreneurship and innovation.

J. Mac Holladay, CEO of Market Street Services which provides strategic economic development planning services, said no other two-state regional program is working on all three of these areas.

Advance Southwest Iowa’s newly hired executive director Mike Dellinger will have an office at the Greater Omaha Chamber so as to allow for a close working relationship with the entire Partnership team.

USDA Announces $11.8M in Rural Economic Development Funding

The U.S. Department of Agriculture (USDA) announced $11.8 million in rural loans and grants to organizations across 11 states.

USDA rural development

USDA rural development (photo –

The announcement was made by John Padalino, the USDA’s Rural Utilities Service Administrator, while he was in Austin, Texas for the National Rural Economic Developers Association annual meeting.

The zero-interest funding is being provided to local utilities through the USDA Rural Economic Development Loan and Grant (REDLG) program.

The utilities will then fund local projects that will help retain and create jobs in rural areas. There are 26 projects being funded in today’s announcement.

In Illinois, the EnerStar Electric Cooperative is getting a million dollar loan to help the Coshocton Grain Company buy grain handling equipment. This project will save five existing jobs and create four new ones.

In Nebraska, the City of Gothenburg is getting $300,000 grant that will go towards a loan fund for Gothenburg Memorial Hospital’s effort to modernize its electronic medical records system. This project will save four jobs and create three new ones.

In North Carolina, the French Broad Electric Membership Corporation is likewise getting a $300,000 grant for a loan fund that will be used to set up an advanced manufacturing school at a community college.

In South Dakota, Codington Clark Electric Cooperative, Inc. will get a $300,000 grant for a loan fund that will be used to construct a building for a business expansion that will create 75 new jobs.

In Tennessee, the Town of Erwin Board of Public Utilities is getting a $375,000 loan to buy an industrial property and 16 acres of land that will be used to attract new businesses to Unicoi County.

In the last five years or so, the REDLG program has helped create 25,000 rural jobs with the help of $200 million in economic development funding. In the same period, the program has helped establish or expand more than 900 business and community projects in rural areas.

Agriculture Secretary Tom Vilsack said the USDA investments announced today would provide local organizations and rural businesses access to new markets and more capital, allowing them to increase hiring and expand.

Contact the USDA Rural Development State Office in your state to apply for funding under the REDLG program. Eligible projects include funding for business startup and expansions, incubators, community development, training facilities and other education program expenses, health care, etc.

Altoona, IA Inches Ahead in Bid for $1.5B Facebook Data Center

It was revealed during the weekend that the mysterious company scouting sites in Iowa and Nebraska for a $1.5 billion data center is actually Facebook.

Facebook data center in Oregon

Facebook data center in Oregon (photo –

Until now, this massive project with three $500 million phases had only been known as Project Catapult in Altoona, Iowa and Project Edge in Kearney, Nebraska.

The company has been considering its options and negotiating with local and state authorities in both states since early last year.

Facebook already has similarly large multi-facility data centers in North Carolina and Oregon, and is looking to add one in the middle of the country.

In plans filed with Altoona, the owner of the 200-acre Catapult Data Center site is listed as Hubbell Properties II, LC. The initial plan included three buildings, each between 350,000 to 380,000 square feet in size. The first phase was to involve construction of one 382,252 square feet building.

This plan was approved by the Altoona City Council in June 2012, extended in Dec 2012 and then re-approved in Feb 2013. Then the company filed an amended plan which further expands all three buildings to 466,500 square feet each. This amended plan was approved by Altoona in March 2013.

This week, both the Altoona City Council and the Iowa Economic Development Authority Board will be holding meetings to consider incentives for this project. Facebook has also apparently requested wind energy tax credits from Iowa, which will require new legislation.

Details about the incentives and jobs likely to be created by the data center, assuming Altoona lands the project, should be made clear after the meetings this week.

Meanwhile, back in Nebraska, Kearney has already spent close to $2 million to purchase and prepare a 165-acre site for the Project Edge data center. They are calling it the Tech oNE Crossing technology park.

Nebraska legislators have approved and passed legislation authorizing incentives for the project, including tax refunds for sales tax for construction material and equipment purchase, property tax exemptions, and other tax incentives. Lawmakers also directed Nebraska Public Power District to offer Project Edge low-cost power.

However, based on the flurry of activity by state and local officials in Iowa coupled with the company’s recent interest in getting approval for modified plans in Altoona, it looks like Iowa seems to be getting ready to snatch Facebook away from Nebraska.

ConAgra Sustainable Development Projects Saved $22M

Last week, Omaha, Nebraska-based ConAgra Foods, Inc., (NYSE: CAG) honored employee teams from their various plants with awards for sustainable development.

ConAgra Foods

ConAgra Foods (photo –

The company apparently received 90 entries for their annual sustainability awards competition.

While only six of them went on to win an award, none of them lost per se, because the projects are collectively responsible for:-

- Creating savings worth $22 million;

- Reducing use of packaging material by three million pounds;

- Conserving 646 million gallons of water;

- Reducing the company’s carbon footprint by 26,700 metric tons; and

- Cutting down on 23,000 tons of landfill waste.

Listed below are the six winning teams and their sustainability projects.

Rensselaer, Indiana – This ConAgra popcorn facility won the award for improved energy efficiency achieved through grassroots engagement by employees. They managed to cut back on electricity consumption by 920,647 kilowatt hours.

Memphis, Tennessee – This ConAgra Wesson Oil facility motivated employees to do their part for water conservation, resulting in employee projects that reduced water consumption by 169 million gallons.

Helm, California – This ConAgra tomato paste facility came up with new technology that separated vines and seeds from the rest of the tomato. Their efforts ended up increasing the fiber obtained from the same amount of produce, while reducing the plant’s waste by 20 percent.

Oakland, California – This ConAgra flour mill successfully introduced a pilot program for new flour bags that reduced packaging material use b 417,000 pounds.

Omaha, Nebraska – This ConAgra Research, Quality and Innovation team simplified the ingredients required for sauces, which reduced inbound transportation and handling needs, and also produced a 23 percent drop in customer complaints.

Kennewick, Washington – This ConAgra Lamb Weston team for agricultural services is working with its potato suppliers to introduce sustainable farming methods. These collaborations between farmers and Lamb Weston accounted for 150,000 acres of sustainable agriculture land use last year.

The six winning teams each gets $5,000 which can be used for a sustainable community development project. ConAgra has been holding this annual internal sustainability competition since 1992.

Gail Tavill, vice president, Sustainable Development, ConAgra Foods, said that these projects reflect an “ongoing evolution of ownership and commitment at every level in the company, further integrating sustainability into how we do business every day.”

Magpul Looking at TX, WY, NE for Relocation from Colorado

Erie, Colorado-based Magpul Industries, a manufacturer of firearms accessories, had last month threatened to relocate out of the state if Colorado passed House Bill 1224, a law banning standard capacity magazines which Magpul makes in Colorado.

Magpul relocation from Colorado

Magpul relocation from Colorado (photo – Magpul Industries)

Colorado Gov. John Hickenlooper made good on his commitment to gun control by signing three new gun laws last week, including one that bans magazines holding more than 15 rounds.

For its part, Magpul has now announced that it too will make good on its threat to relocate, and said in a Facebook posting that it will manufacture its first PMAGs (holding 30 rounds) outside Colorado within a month.

The company added that they are looking at setting up operations in multiple locations.

“We will likely become a multi-state operation as a result of this move, and not all locations have been selected. We have made some initial contacts and evaluated a list of new potential locations for additional manufacturing and the new company headquarters, and we will begin talks with various state representatives in earnest if the Governor indeed signs this legislation.”

The company’s COO Doug Smith is reportedly planning on meeting with economic development officials from Texas, Wyoming and Nebraska.

Magpul has 200 employees in Colorado, and claims that it contributes $85 million to the state economy. They also claim to support another 400 jobs in their supply chain.

“We could choose to stay in a state that wants our jobs and revenue, but not our products, and lose half the jobs we are fighting to save, or potentially the entire business, when our customers stop buying,” said COO Smith. “Or, we can take the company and those 600 jobs out of Colorado to continue our growth and the growth of American manufacturing in a state that shares our values. This is not really a choice.”

Some of these suppliers have indeed confirmed that they too will follow Magpul to its new location. One of them is Denver-based Lawrence Tool & Molding, which gets more than half of its business from Magpul, and has confirmed that it will also move out of Colorado if Magpul does. Lawrence Tool & Molding has 82 employees in the state.

“It is heartbreaking to me, my employees, and their families, to think that we will be forced to leave,” said Richard Fitzpatrick, founder, president, and CEO of Magpul Industries.

EDC To Focus on Business Expansion and Job Creation in Grand Island, Nebraska

The Economic Development Corporation in Grand Island, Nebraska will be focusing on the expansion of businesses and growing the amount of jobs.

In the past year, the region of Grand Island has created nearly 700 brand new jobs and many of the large employers in the area have expanded their facilities.

Many new restaurants have also relocated to the region of Grand Island as well. An annual meeting was held with the Economic Development Corporation where the positive statistics were pointed out.

The Chairwoman for the EDC whose name is Ann Martin made sure to congratulate all of the business owners who were looking to make the region of Grand Island as an ideal place to live. Chairwoman Ann Martin also wanted Grand Island to preserve its tools for growth such as industrial parks, work force that is well trained and the LB840 Economic Development Program.

One of the main goals of the EDC will be to make sure that voters ultimately approve the LB840 program because it will allow the region of Grand Island to have a competitive edge when compared to other regions. Since the implementation of the LB840 program, nearly 1,188 jobs have been created in the region of Grand Island. Also, a payroll amount that is approximately $36 million dollars was also added in the area.

The Chairwoman also elaborated on a second goal of the EDC as she wanted a much stronger communication line between the community members and the EDC itself. Ann Martin wants to businesses to contact the EDC if they are looking to ultimately expand a business or add new employees. Job creation and economic growth are going to be important factors for reducing the unemployment rate in the region of Grand Island as well.

Overall, the Economic Development Corporation is going to make a positive impact on the local community in Grand Island, Nebraska.

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Iowa, Nebraska Compete for $1.2 Billion Project Edge Data Center

There’s a huge buzz among economic development agencies in Iowa and Nebraska, and it surrounds the mysterious Project Edge.

Kearney Nebraska

Photo credit - City of Kearney, Nebraska

This is the name given to a $1.2 billion data center project which is currently in the final stages of the site selection process, with two sites in Iowa and one in Nebraska as the finalists.

Iowa economic development chief Debi Durham refused to identify the company citing a confidentiality agreement, but confirmed that it wasn’t one of the giant hi-tech companies with an existing presence in Iowa, so that rules out Microsoft, Google and IBM.

One official in Nebraska confirmed it is not Facebook. As per the inside chatter, it points towards Apple being the company behind Project Edge, because they did consider a site in the Des Moines area a couple of years ago for iCloud. That project eventually landed up in North Carolina.

Besides, this kind of mysterious cloak and dagger stuff is right up Apple’s alley ‚Äì most everything they do is extremely secretive, especially their site selection process. This time, the stakes for Project Edge begin with an initial $500 million investment and 75 jobs, which will grow up to $1.2 billion after the data center comes online and possibly up to $1.8 billion in the first 2 years.

Nebraska officials are pushing the university town of Kearney as the ideal location, being one of the few rural locations in the state with shovel-ready sites for data centers called “power parks.” Kearney has spent $1.48 million on creating a power park.

In fact, Nebraska just upped the stakes by passing Legislative Bill 1118, an incentive bill aimed solely at bringing home this one data center. It provides sales tax breaks and personal property tax breaks for companies that invest $300 million and create at least 30 jobs. The personal property tax break is a big deal for data centers, because a huge part of their investment is for the computer hardware required.

They are also debating a second bill that would allow the company to negotiate lower electricity rates for five years. Now all that remains to be seen is whetherNebraskacan steal Iowa’s thunder, and bring home the Apple (assuming Apple is Project Edge).

This fight is not just about this one data center either, because the forecast is for at least 1000 data centers over the next decade. As North Carolina has proved, successfully attracting data centers is a very profitable business.

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