2010 Program Report
Cortland County Business Development Corporation
Industrial Development Agency
Garry L. VanGorder
Executive Director
Overview
The Cortland County Business Development Corporation and its affiliate agencies, including the Cortland County IDA, have made significant strides this year in facilitating economic and community growth. Our work has led to job creation, large-scale business capital investment preserving existing jobs, the establishment of new businesses with long-term job creating potential, and the construction of infrastructure that will also contribute to significant job growth in the future.
What’s more, the BDC/IDA’s work as a community leader remains critical to ongoing efforts to maintain and improve Cortland County’s high quality of life, a key factor in anyone’s decision to live here and work here.
I would regard these accomplishments as significant under any circumstance, but they are especially so given the current state and national economic uncertainties. Here, for your review, is a summary of this year’s programs, projects, and successes.
Job Creation/Capital Investment
- Pyrotek – Discussions with this company began in earnest late in 2009, culminating with its decision this year to relocate its Canastota operations to the former Monarch Machine Tool building in South Cortland.
A global leader in the development, manufacture, and sale of high-temperature materials for industrial applications, Pyrotek purchased the 140,000 square-foot building last spring and will be fully operational there by late 2010. The move will immediately bring approximately 50 well-paying manufacturing and engineering jobs to Cortland County and as many as 70 more over the next 12 to 36 months. Other positive residual effects impacts include the company’s use of local hotels/motels to accommodate global clients, its use of local suppliers and service providers in support of its operations, and the Monarch company’s decision to maintain its operations from the Cortland Commerce Center.
Pyrotek’s move into Cortland County was facilitated by the BDC staff, which worked with local and state leaders to help the company overcome a number of financial and regulatory roadblocks that could have killed the deal. The BDC board’s decision to authorize a $200,000 grant to the company was also critically important to making the deal work.
The company intends to be fully operational by December.
- Glyph Technologies – The BDC worked with Glyph officials since it first expressed an interest in relocating from its Cherry Street, Ithaca, offices. Officials were shown numerous sites and staff worked through a number of scenarios with them until the decision was made to take space at the former Graphics Plus offices at the Cortland Line Building, Kellogg Road. Staff also helped facilitate a Cortland city loan to the company, which was critical to the move. Now operational, this manufacturer of high-end audio storage devices now has nearly 20 employees and is preparing for an expansion into video – an expansion that could mean even more new jobs for Cortland County.
- Crown Industrial Corporation – The BDC worked with this new company, an offspring of the former Emerson Power Transmission operations in Tompkins County, to begin its new contract manufacturing business at the Cortland Commerce Center. The company is bringing in 10 new jobs at the start and is poised for further growth in the future. Its primary client, Emerson, has contracted with Crown for the production of materials formerly produced offshore.
- Pall Corporation – The BDC staff worked with Pall executives in building an incentive package ensuring retaining one of the Pall divisions for Cortland County, and longer term, helping to preserve the company’s overall presence in the community. The incentives convinced the company to retain and grow its PASS division operations here. Hirings have been underway to accommodate its expansion since mid-summer.
- Cortland Commerce Center – Thanks to the decisions by Crown Industrial Corporation and Pall, the 400,000 square-foot Cortland Commerce Center facility is near capacity.
Twenty companies and about 225 people now work out of the building for a mix of retail, commercial, and manufacturing enterprises.
Made possible through an IDA PILOT last year, renovations are now underway including new windows and upgrades to the building’s façade, entrance, and landscaping. Interior work will include new office renovations and construction of new loading docks critical to Pall Corp’s growing operations there.
Negotiated with the assistance of BDC staff this year, energy efficiency upgrades were also important to Pall’s decision-making process.
- Cortland Plastics – Cortland Plastics International, a manufacturer of plastic bottles, caps and other plastic materials for the pharmaceutical, amenity, lawn and garden, personal care, food, chemical, household chemicals, cosmetic and pool chemical industries, this year completed an expansion project at its south Main Street location that will mean an expansion of the company’s blow-molding lines and the addition of up to 32 new jobs in the next three years, bringing the total workforce to more than 70.
Work began this summer after the company acquired 25,000 square-feet of space from its former landlord, Cayuga Press, as well as four acres of adjacent land to accommodate a new, 25,000 square-foot building.
The multimillion dollar project was made possible with an IDA PILOT, as well as mortgage and sales tax exemptions. Staff continues to work with the company on other projects, such its $69,000 state grant for recycling equipment that has increased efficiencies and reduced its waste stream.
Some 200 tons of scrap per year are now being diverted from the landfill for reuse in the production of blow-molded bottles, saving the company some $300,000 per year in avoided new resin purchases and about $50,000 in avoided disposal costs.
- Greek Peak -- Staff worked with Peak Resort management and legal counsel to facilitate incentives for planned $11 million expansion and construction project at Greek Peak Ski Resort. The project, which will include the construction of a new, 10,000 convention center as well as an alpine slide, zip lines, rope course and more, will also feature replacement of two resort ski lifts and the relocation/expansion of the tubing center. The project is the latest in the resort’s master plan to develop as a 12-month tourism destination, and in addition to creating about 45 new full-time equivalent jobs it will drive more tourism dollars into the local economy.
New Businesses
- The BDC’s Revolving Loan Fund was used this year to facilitate business start-ups at the former Cortland Corset Building, now a growing business incubator; Crown City Stoves, a South Cortland business offering gas stove sales and service; and Brix, an upscale downtown “pubaria” offering food and beverage at the former Jack Danielson’s building.
Staff continues to interact on a regular basis with aspiring entrepreneurs, and working with the SBA’s consultant, Joan Powers, provides all the information needed for new business start-up.
- Pending – potential new developments at the former Homer Oil Company in Homer and we work regularly with brokers on the sale of the former Barden Homes facility in Preble. Rail projects pending include the rail spur at the BestDeck facility in Preble. We actively show all of our available commercial space as required.
- Began work with Lucas brothers for the construction of a new Empire Tractor facility on the Route 13 corridor.
Infrastructure Development
- Finger Lakes East Business Park – Construction of this $4 million project, which has been in planning, design and regulatory review for the past several years, began in May. The IDA is the developer and as such I have been fully involved with day-to-day project management in partnership with our engineers at O’Brien & Gere and our project consultant, David Bottar of the CNYRPDC.
Contracts were issued to two local firms in May after a formal bid process and the bulk of the work at the 127-acre park is set to be completed by late 2010 (some utility construction outside the scope of the those contracts may be scheduled for early 2011).
Work on behalf of the park takes places on a daily basis, comprising construction meetings, consultations with contractors re: compliance with contract regulations (pay scale, use of women/minority-owned business, approval of payment applications, interactions with the Department of Transportation, Department of Environmental Conservation, National Grid, and other service providers, park neighbors, and others)…I am briefed on all park developments and am responsible for approvals/rejections of any job change requests (in consultation with our engineers)…
Aside from construction, work critical to this project has included insuring that grant funds previously announced could still be counted on in the midst of the economic downturn. We have begun drawing down monies from our EDA grant monies and our first EDA drawdown has also been approved. NYS Economic Development Assistance Program monies were most in doubt but our work with Sen. Seward has resulted in a positive development there. We should be in receipt of those funds within the next month.
Contract documents call for completion of the project by the end of November, and with the exception of top-coat paving, we should meet that goal. Work outside the contract (installation of underground electric, gas, telecom, and fiber) will likely be completed next spring. Pending remaining resources, we will look at landscaping, connective pathways, signage, lighting, and other amenities that were not included in the original park design.
Marketing of the business park for future tenants has been ongoing on a limited basis, and has included use of our own e-newsletter, local media, our web site, and display advertising in Site Selector magazine. Distribution of a blast –e-mail is scheduled for this fall, and marketing will continue in 2011 with the park near or at completion.
This has been a tremendous undertaking for the IDA and I’m proud of the work completed so far. In the end, we will have a top flight business park that should be a positive attraction for business to our community.
Business Development Resources
Important to our activity is the maintenance of an effective “tool box” of economic development programs that we can use to facilitate business growth and capital investment. Those programs include:
- The Empire Zone Program, which has been discontinued for new applicants but remains in effect for businesses already certified;
- Excelsior Jobs, the state’s replacement for the Empire Zone program which has a more targeted – albeit limited – approach to state job growth;
- The Small Cities program through the state Department of Housing and Urban Renewal (in partnership with applicant municipalities and Thomas Development Consultants;
- New York State Energy Resource and Development Authority (NYSERDA) programs;
- Economic Development programs through National Grid; and
- Incentives through the IDA including mortgage tax exemptions, sales tax exemptions on capital investment, and property tax incentives in the form of Payment in Lieu of Tax agreements
Our efforts this year also led to:
- The formation of a new Local Development Corporation allowing us to finance local civic facility projects. IDAs had historically had such authority but were stripped of it when the state legislature failed to renew. The ability to finance local civic projects (hospital, etc.) is a good deal for the developers and also keeps project fee resources in the community, where they can be used for other projects;
- The designation of Cortland County as a “Recovery Zone,” clearing the path for use of bonds to finance public and private projects. The designation was the product of the American Recovery and Reinvestment Act (stimulus) funds;
- Continued support of local agriculture through initiatives for five local farmers markets, the annual Ag Summit, New York Agricultural Trust, and through our ongoing exploration of agriculture-based economic development opportunities;
- Ongoing work with local and regional stakeholders to expand broadband opportunities in Cortland County
- Ongoing support for the Heldleberry Farms renewable energy and educational project
Community/Agency Marketing
Important to our operations is the ability to market the agencies as well as the Cortland Community to outside interests. Our activities in 2010 have included:
- The development of a new “e-newsletter” distributed to a large list including local officials and community stakeholders;
- The development of a Finger Lakes East “Microsite” promoting the park;
- A “retooling” of the BDC’s web site to clean it up and make it easier to use (ongoing);
- Essays/articles/letters to the Editor contributed to and published in local/regional media including the Cortland Standard, Central New York Business Journal, Syracuse Newspapers, CNY Business Exchange and others;
- Regular production of radio scripts for local stations addressing BDC/IDA programs and projects as well as community issues;
- Regular submission of press releases to local and regional media;
- Public speaking engagements at civic organizations wanting to learn more about the agencies and what they do
Community Relations
- Our work in and around the Cortland Community is intended to help build upon a great quality of life here and, in turn, help project Cortland as a good place to open and run a business. Here is a sampling of some of my activities/involvements in 2010:
- New York Jets Training Camp local organizing committee;
- Board of Directors, Cortland Public Education Foundation;
- Board of Directors, Cornell Cooperative Extension;
- Board of Directors ex officio, Cortland Downtown Partnership
- SUNY Cortland Lobbying group, Albany
- Support for a variety of community activities including, but not limited to:
- Jets camp
- Main Street Music Series
- Homer Winterfest
- June Dairy Parade
- Maple Festival
- Center for the Arts
- Chamber of Commerce
Government Relations
- My activities are ongoing with respect to the development and maintenance of relationships with local, state, and federal leadership. Those relationships are critical as we work through important and complex projects on behalf of the community (Pyrotek, Finger Lakes East, etc.).
Office Management
- Our office continues to work cooperatively and effectively on behalf of the Cortland community. Among interoffice initiatives this year:
- Outsourcing bookkeeping services and restructuring the duties of the economic development specialist to provide another layer of financial “check and balance” and to more fully use staff time for economic development activities;
- Assignment of Public Authority Accountability Act (PAAA) web posting activities and filings to the office manager;
- Complete update of IDA policies as per PAAA requirement;
- Complete update of BDC policies as per PAAA requirement;
- Integration of a “team” approach to economic development that is yielding positive results