Oklahoma

KS, NH Bases Selected for KC-46A Refueling Tanker Operations

The U.S. Air Force has announced that McConnell Air Force Base in Wichita, Kansas will be the first KC-46A refueling tanker base for active duty operations. New Hampshire‘s Pease Air National Guard base was selected as the tanker’s first Air National Guard operational base.

KC-46A base site selection

KC-46A base site selection (photo – af.mil)

McConnell AFB will now be sent 36 KC-46A tankers to replace KC-135R tankers.

The base is getting a $200 million infusion for upgrades required to become the main operating base (MOB 1) for KC-46A operations.

The selection ensures the base and its economic impact on the community will be maintained for the long-term.

These 36 KC-46 tankers are just one part of the first phase which involves replacing 179 tankers. There are two more phases afterwards, and all three phases put together will replace 59 KC-10 and 400 KC-135 tankers.

McConnell AFB was competing for this project with bases in Washington, Oklahoma and North Dakota.

It wasn’t all smiles for Kansas, though, because the Forbes Military Airfield in Topeka lost its bid to be designated as the Air National Guard led main operating base (MOB 2) for the KC-46A. This project was won by New Hampshire’s Pease Air National Guard base.

Apart from Pease and Forbes, three other bases in New Jersey, Pennsylvania and Ohio were competing for MOB 2.

New Hampshire Governor Maggie Hassan said that on behalf of the people of New Hampshire, they were proud and honored to have the KC-46A with the Granite State’s National Guard.

Kansas Governor Sam Brownback said it was unlikely that two bases in the same state would be chosen for the initial round of the KC-46A base site selections. He added that Kansas being the only state that had two bases competing in the final stage of the process speaks for the quality of personnel at the bases.

Washington Governor Jay Inslee, whose Fairchild AFB lost out against Wichita’s McConnell, issued a statement in which he said the Fairchild community, Spokane County and the State had made important investments for preparing the base to host the tanker, and this was “an extremely unfortunate decision” by the Air Force.

The reasons for which McConnell and Pease were selected are explained here.

Altus Air Force Base in Oklahoma was also one of the unsuccessful candidate sites for MOB 1, but Altus did get chosen as the first KC-46A formal training unit or FTU.

These chosen sites for MOB 1, MOB 2 and FTU are only the “preferred alternatives” based on the results of evaluations and cost estimates developed by site survey teams.

The final site decisions will be announced at a later date depending on the outcome of additional approvals such as the Environmental Impact Analysis Process (EIAP) which includes a public comment period.

Five Indian Tribes to Build Largest Tribal Wind Farm in U.S.

After more than a decade of planning, the Cherokee Nation announced that the Tribal Council had approved a plan to develop the largest wind farm on tribal land in the U.S. in partnership with PNE Wind USA Inc.

Wind turbines

Wind turbines (photo – environment.ok.gov)

Development of the 6,000-acre and 90-turbine wind farm will begin immediately on 3,000 acres of Cherokee Nation tribal land in Chilocco, Kay County, Oklahoma.

Out of the total of 90 turbines, half will be based on these 3,000 acres while the other 45 turbines will be located on another 3,000 acres of tribal land belonging to four other tribes (Otoe-Missouria, Pawnee Nation, Ponca Nation and Kaw Nation).

The project is estimated to generate $16 million over the next twenty years, and will add 153 megawatts of wind power to the southwest grid.

Cherokee Nation Principal Chief Bill John Baker said they were already playing a significant role in the creation of green jobs, and expected to play a similar key role in Oklahoma’s wind energy sector.

Ellen Wesley, director of PNE Wind USA Inc, added that this project was significant because Cherokee Nation projects were usually privately owned, but had taken on PNE Wind USA as a partner for this project.

Chilocco was chosen for the wind farm not just because of favorable wind conditions, but also because environmental studies showed the wind farm would not impact migratory bird populations. The 1.7MW GE turbines will be more than 400 feet tall.

The Tribal Council’s Deputy Speaker Chuck Hoskin Jr. said that this was an opportunity for the Cherokee Nation to be a renewable energy leader among Indian nations. He said people talk a lot of saving the environment and conserving resources, and this project was a prime opportunity for putting words into action.

The four other tribes and PNE Wind USA broke ground on their 45-turbine project last month on Earth Day, and the construction phase is expected to be completed this summer, with the turbines operational by the first quarter of 2014.

The construction phase of the 45 turbines to be installed in the other four tribes’ 3,000 acre property will create almost 200 construction jobs. About a dozen or so permanent employees will be needed to operate the wind farm.

During the ground breaking, André De Rosa, managing director of PNE Wind USA, said that apart from generating clean energy, the wind farm would bring economic development to the area and would provide additional revenues for the tribes.

Chicago, Illinois-based PNE Wind USA is a part of Cuxhaven, Germany-based PNE Wind AG.

Florida Offers Hertz $19M for Headquarters Relocation

The Hertz Corporation (NYSE: HTZ) announced that it plans to relocate its global headquarters from Park Ridge, New Jersey to Estero in Lee County, Florida.

Hertz

Hertz (photo – Hertz/wikipedia)

The ostensible reason given for the relocation is that they need to consolidate operations in one location after their acquisition of Dollar Thrifty, which is based in Tulsa, Oklahoma.

As the company moves its corporate operations to Estero, Florida will gain 700 high-paying jobs with average annual wages of $102,000, not including benefits.

The company’s current employees in Park Ridge will be able to retain their positions in the new headquarters in Florida. Dollar Thrifty and Hertz together have more than 2,000 employees in New Jersey and the NYC metro area, who will remain there, including about 150 in Park Ridge.

The company will retain eCommerce and other financial services functions in New Jersey, while Oklahoma will retain IT, customer care and some financial support functions.

Hertz chairman and CEO Mark P. Frissora said the relocation should not be taken as slight of Oklahoma or New Jersey, because both states have undertaken significant job creation and business climate improvement efforts.

He added that New Jersey would have continued to be their home indefinitely had it not been for the Dollar Thrifty acquisition. Frissora specifically singled out the New Jersey Partnership for Action (NJPAC), which he said had been very active in their efforts to get Hertz to stay in New Jersey.

But NJPAC was never going to win this one, because relocating to Florida allows Hertz to be in the middle of America’s biggest travel and tourism market. Florida rents more cars per capita than any other state, and Orlando is the largest car rental market in the world.

More specifically, Lee County was chosen because of its diverse community, easy accessibility to the major tourism markets, and an available workforce. The county also recently agreed to reduce the impact fees they charge for development work on new projects, which makes it easier for Hertz can get all the site improvement infrastructure they need.

State and local authorities in Florida have been working on the Hertz project for nine months, and have offered the company $19 million in incentives for the relocation.

As per the agreement the company has entered into with Lee County and Florida, Hertz will invest $46.25 million by the end of 2014 for the relocation and construction of a new corporate headquarters in Estero. They will also create 350 jobs by Sept 30, 2015. In return, Lee County has approved $4 million and the state is chipping in with another $14.4 million.

Hertz will get $7 million right away from the state, and another $2 million from Lee County when it fulfills the aforementioned investment and job creation commitments by Sept 2015.

To receive the balance from both Lee County and the state, Hertz would have to add at least another 350 jobs for a total of 700, and must make a capital investment of $60 million.

While the new corporate campus in Estero is being built, Hertz is looking at three other locations for a temporary headquarters.

GE Announces $110M Oil & Gas Research Center in Oklahoma

General Electric (NYSE: GE) announced that it will build a global research center in Oklahoma. This new center will focus on driving technological advancements and innovation for the oil and gas industry.

Jeff Immelt and OK Gov. Mary Fallin at GE announcement

Jeff Immelt and OK Gov. Mary Fallin at GE announcement (photo – Oklahoma Governor’s Office)

GE will invest $110 million for this project, resulting in the creation of 125 new high-tech engineering jobs.

The announcement was made jointly by Oklahoma Governor Mary Fallin and GE CEO and Chairman Jeff Immelt.

The initial focus of the center will be on improving the reliability, efficiency and safety of production and delivery of unconventional oil and gas (read shale).

Immelt said that GE sees a huge opportunity in oil and gas, and has invested $11 billion since 2007 to shore up the technology, improve productivity and boost innovation. He added that shale gas could be the biggest productivity driver of our lifetime.

The growth of GE Oil & Gas has outpaced all other GE businesses, with $15 billion in revenues and 16 percent growth in both new orders and earnings last year.

Mark Little, senior vice president and CTO for GE, took this though a bit further by saying that the new center would be part of GE’s effort to create the next generation of technologies that will make this “unconventional energy source conventional and sustainable.”

The specific location of the GE global research center has not been finalized. GE Oil & Gas has its Artificial Lift unit with over 550 employees located in Oklahoma City, and this unit will have a definite advantage by being close to the new center.

They are looking for a site which will help the center take advantage of the skilled talent pool present in the Oklahoma City area and from educational institutions such as the University of Oklahoma.

Gov. Fallin said that technology was the key that would unlock new energy resources, and she was thrilled that GE had chosen Oklahoma for developing these technologies.

Since 2009, GE has added 2,300 jobs for R&D, along with hundreds of millions of dollars committed to new facilities such as the Silicon Valley global software center and the Advanced Manufacturing and Software Center in Michigan.

Cherokee Nation to Undertake $100M Health Care Overhaul

Tahlequah, Oklahoma-based Cherokee Nation, the government of the Cherokee people, announced that it will be investing $100 million to overhaul the largest health care system in the U.S. operated by a tribe.

Cherokee Nation Principal Chief Bill John Baker announcing $100M health care investment

Cherokee Nation Principal Chief Bill John Baker announcing $100M health care investment (photo – cherokee.org)

The overhaul includes construction of a new 100-bed hospital and renovation or replacement of four other health centers in Oklahoma over the next 2-3 years.

The $53.1 million hospital project will replace the existing W.W. Hastings Hospital that serves tribe members in Tahlequah. The new hospital will additionally become an outpatient center.

These investments are fueled by Cherokee Nation Businesses LLC profits accrued in the Cherokee Nation general fund, which gets 35 percent of CNB profits as per the tribe’s law. Last year, this 35 percent worked out to $57 million.

CNB, whose biggest profits come from gaming and hospitality, generates revenues of $750 million each year. The general fund which gets 35 percent of the profits is supposed to be used for providing services such as education, housing and health care.

This $100 million project is the first major investment made by CNB towards the tribe’s infrastructure. CNB is paying for the development, and will then lease the facilities to the tribe.

Even the construction work is being done in-house by Cherokee Nation Construction Resources (CNCR), which is a CNB subsidiary. Cheryl Cohenour, executive general manager of CNCR, said that this project was much more meaningful because it was not just about job creation or profits adding to the general fund.

“For the first time, our work will directly affect citizens in ways the 35 percent dividend or job creation cannot. There is so much pride in knowing that as a Cherokee Nation, tribally owned business, we have something tangible to show our businesses’ commitment to making change for the Cherokee people,” added Cohenour.

Shawn Slaton, CEO of CNB, said it was a great opportunity to show why the casinos were there. He reiterated their commitment to creating jobs, growing businesses and providing funding for services utilized by the Cherokee people.

Cherokee Nation has 300,000 citizens and 8,000 employees. Their tribal businesses have diversified beyond gaming to include everything from government contracts to manufacturing and telecom companies. Cherokee Nation has a $1.5 billion economic impact on Oklahoma’s economy.

ABB Announces $14M Expansion With 250 Jobs in Bartlesville, OK

Zurich, Switzerland-based ABB and the Bartlesville Development Corporation (BDC) announced that ABB will expand its Bartlesville, Oklahoma operation with a $14 million investment.

Bartlesville, OK

Bartlesville, OK (photo – bdcok.org)

The expansion will create 250 new engineering and manufacturing jobs with average annual wages of $75,000.

The investment will be used to double the 100,000-sq-ft space occupied by ABB’s existing Bartlesville manufacturing plant that makes natural gas measurement equipment.

“The strength of the oil & gas market, specifically unconventional drilling activity; has provided our business a great opportunity for growth in recent years,” said ABB General Manager Gayle Lester. “We have been successful in making the most of this opportunity and are very excited to be able to expand our local facility to meet the increasing demand from customers.”

Lester added that the support of the BDC and the Quality Jobs program administered by the Oklahoma Department of Commerce were key factors in the decision to expand the existing facility.

Under the proposal, the Bartlesville Development Authority (BDA) – the financing division of the BDC, will expand the publicly-owned facility currently occupied by ABB, and extend the lease for an additional 10 years. ABB will get a thousand dollars per new job per year, and additionally get state incentives under the Quality Jobs program.

“Projects of this caliber don’t come along every day, and they certainly don’t come together overnight. BDC has been working collaboratively with ABB on this for over a year,” said David Wood, BDC president. “ABB continues to be a solid community partner, and we are delighted to see these new, high-wage jobs come to Bartlesville.”

This project represents ABB’s third expansion in the Bartlesville Industrial Park since 2000. This latest expansion doubles their space and employee headcount.

“Oklahoma’s high quality of life, low cost of living and pro-business atmosphere are quickly making it a national and even international destination for businesses,” said OK Gov. Mary Fallin. “As a result, we have been able to attract the kind of high quality, good paying jobs offered by ABB, even in a very competitive economy.”

ABB has operations in around 100 countries, with approximately 145,000 employees in June 2012, and reported global revenue of $40 billion for 2011.

Verizon Adding 500 Jobs for Financial Services Hub in Tulsa

Oklahoma Governor Mary Fallin joined officials from Verizon in Tulsa today to announce that the company is adding a financial services hub and up to 500 new jobs at its North Lakewood facility in Tulsa.

Oklahoma Gov. Mary Fallin at Verizon jobs announcement

Gov. Mary Fallin at Verizon jobs announcement (Photo – Oklahoma Governor)

The new jobs are for finance and accounting positions in a financial services hub that Verizon is adding to its existing operations in Tulsa, where it already employs 900 people.

It is estimated that the new jobs will create another 616 indirect jobs, and generate a total of $60.4 million in additional income.

“Today’s announcement is great news for Tulsa and northeastern Oklahoma. These positions represent the kind of high-quality, good paying jobs we are working to bring to the state,” said Gov. Fallin. “We appreciate Verizon’s investment in Oklahoma and are excited about the 500 new jobs coming to Tulsa. Today’s announcement is another great example that our pro-growth, pro-business policies are working and are making Oklahoma an even better place to do business.”

Verizon officials said the decision to create a financial services hub by adding up to 500 new positions in Tulsa comes after an extensive review of numerous locations across the nation.

Many factors were considered during the company’s site selection process, including the quality and availability of financial services talent, quality of life considerations, the cost of living and more. At the end of the evaluation process, Tulsa emerged as an ideal location.

“Tulsa continues to establish itself as a national leader in job creation,” said Tulsa Mayor Dewey Bartlett. “The commitment of outstanding companies such as Verizon helps us solidify our place as a top city and region for many areas of economic development, and we congratulate Verizon on its continued success and growth.”

Verizon serves local, long distance, wireless and data customers in Oklahoma and has 50 retail stores and authorized agents throughout the state. The company has nearly 1,200 employees statewide and has an annual payroll of approximately $85.3 million in Oklahoma.

Texas, Oklahoma Competing for $150M Borusan Steel Plant

Borusan Mannesmann Pipe U.S. Inc., a subsidiary of Istanbul, Turkey-based Borusan Mannesmann Boru (BMB), is planning to build a $150 million steel plant in the U.S., which will be located in Texas or Oklahoma.

Borusan Mannesmann

Photo – Borusan Mannesmann

Parent Company Borusan Holding CEO Agah Ugur said that they are making this investment to take advantage of the expected growth surge in the U.S. energy pipe market due to increasing shale oil and gas production.

The company’s statement says that, “We intend to increase our current share in the pipe drilling market, one of our strategic growth areas, by benefiting from the competitive advantages of becoming a domestic producer, to consolidate our company’s position within the international steel pipe market and to increase the added value we provide to our shareholders.”

It could also have something to do with the fact that Borusan has been the subject of a federal anti-dumping duty administrative review conducted by the U.S. Department of Commerce, Import Administration, and the International Trade Administration. If they start making pipes in the U.S., the anti-dumping issue would no doubt disappear.

Borusan’s US plant will open in the second half of 2014 with a capacity of 300,000 metric tons and employ 350 people. The OCTG plant will produce thick walled and high strength tubular pipes used in the oil and gas industry for fracking. A smaller heat treatment plant will produce line pipes with smaller diameters.

Borusan is already one of the biggest exporters of steel pipes to the U.S. market, and estimates that the new plant will double its supply to the US. They expect to generate additional revenues worth $500 million to $600 million annually from the US plant. Their current revenue is around $800 million.

Borusan Mannesmann Pipe U.S. Inc. is currently based in Dallas, Texas. However, Ugur said that the company was holding talks with both Texas and Oklahoma for the steel plant, and the ultimate choice of site location will depend on state incentives. They are looking for a 550 acre site.

One-third of the investment will be made by Borusan, and the remaining will be outside financing. Apart from state incentives, additional financing for the plant will be sourced through export banks and other U.S. banks that have a presence in Turkey.

Borusan Mannesmann Boru was founded in 1958 as the first industrial enterprise of Borusan Group, and currently has more than 1,300 employees.

Sikorsky Announces $100M Altus, Oklahoma Training Center

Sikorsky Aerospace Services (SAS) has signed a Memorandum of Understanding (MoU) with Aviation Training Consulting (ATC) to establish a $100 million advanced flight and maintenance training academy in Altus, Oklahoma.

Sikorsky Black Hawk Helicopter

Sikorsky Black Hawk Helicopter (Photo – Andrés Ramírez/wikipedia)

Projected to launch in 2013, the Sikorsky Training Academy (STA) will initially focus on meeting the needs of foreign militaries using the BLACK HAWK helicopter as the training platform.

The academy’s first batch of students will be coming from the United Arab Emirates.

At the STA announcement, U.S. Sen. Jim Inhofe (R-Okla.) noted that Altus had a lot of advantages for the aviation industry.

The site in Altus is located near Fort Sill, and provides the training academy with access to several hundred square miles of operating space, certified landing areas, and certified night vision routes. Additionally, Altus weather conditions are well suited to flight training schedules.

“The creation of the STA is a natural progression of our relationship with Sikorsky and will not only benefit Sikorsky and ATC, it would make Altus a key global destination of choice for advanced military aircraft training,” said Robert Cox, CEO of the Altus, Okla.-based ATC. “Oklahoma is proud of its rich aerospace and defense industry, which represents approximately 10 percent of its economy.”

Cox noted that a big part of the site selection process for the Sikorsky training center was about the people. “This isn’t a dying town. This is a happy town,” added Cox.

Steve Estell, Sikorsky vice president of Strategic Partnerships, said that the company found many advantages in Altus. He cited ATC, room to grow, airspace, availability of instructors, and the proximity to training programs at Altus Air Force Base and Fort Sill.

Explaining the huge investment in the Altus, Oklahoma training center, SAS president David Adler said that many Sikorsky customers have been relying on training companies that were not U.S. military or Sikorsky qualified.

“Many of our customers, particularly U.S. Government agencies and foreign militaries, have difficulty obtaining thorough standardized training for their flight crews and maintenance teams,” said SAS president David Adler. “Establishing this center is a significant step in enabling us to deliver a comprehensive, tailored OEM training curriculum of the highest standards, capable of preparing our students for a wide variety of missions.”

USDA Announces Rural Economic Development Funding for Six States

Agriculture Secretary Tom Vilsack has announced yet another round of grants and loans to help spur economic development and create or save jobs in six states.

USDA Rural Development

USDA Rural Development (photo – usda.gov)

This time, the U.S. department of Agriculture (USDA) is handing out $3.6 million under the Rural Economic Development Loan and Grant program (REDLG) to recipients in Iowa, Kansas, Mississippi, North Carolina, Oklahoma and South Dakota.

These are zero-interest loans provided by the USDA to local utilities which in turn are supposed to pass the funds through to local businesses for projects to create and retain employment in rural areas.

The two biggest recipients are the Brunswick Electric Membership Corporation in North Carolina and the South Mississippi Electric Power Association in Mississippi. Brunswick is getting a million dollars to fund the Rural Consumer Services Corporation, which will then utilize the funds as working capital to complete energy efficiency improvements. The project will create nine new jobs and save three existing ones.

The South Mississippi Electric Power Association is also getting a million, which they will use to purchase machinery and equipment and finance the construction of an industrial peanut-buying facility in Clarksdale.

The $800,000 being provided to two Iowa companies are set to create 76 jobs. The Hawkeye Tri-County Electric Cooperative gets a $500,000 loan to help fund a 13,000-head-per-year beef slaughtering plant in Lime Springs which will create 41 new jobs. The Laurens Municipal Light & Power Plant gets a $300,000 grant, to which they will add $60,000 to create a $360,000 revolving loan fund. The first loan goes to the Laurens Care Center for renovations that will save 35 jobs.

The Ark Valley Electric Cooperative Association, Inc. in Reno, Kansas is going to the mat to purchase and save the only grocery store in Haven, KS and the nine associated jobs. They are getting a $160,000 REDLG loan.

The Caddo Electric Cooperative, Inc. in Oklahoma is getting a $400,000 loan to help Kimball and Company, LLC expand a veterinary clinic and create or save 18 jobs.

The Dakota Energy Cooperative, Inc. in South Dakota is getting a $300,000 grant to build a commercial building in Huron, SD. This building is a project for the Greater Huron Development Corp., which estimates that the project will enable retention of 10 jobs.

The USDA Rural Development division has an active portfolio of more than $172 billion in loans and loan guarantees. Their programs for the current fiscal year alone amount to $20 billion in loans, loan guarantees and grants.

More information about the USDA Rural development loans and grants can be found on the usda.gov website.

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