Economic
Development Newsletter
November/December 2003:
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Two Former
Fulton Plants: A Back-in-Business Turnaround
Just
six months ago, the picture in Fulton was grim. Two major longtime
employers announced plant closings, which was to result in the loss
of 580 jobs.
Now — in a quick turnabout that is
almost unheard of in economic development circles — after
months of hard work, negotiation and teamwork, the former Nestle
and Sonoco plants are soon to be operational and back
in business. The Nestle plant will be reutilized by New York Chocolate
and Confections Company, a consortium of cocoa suppliers from the
Ivory Coast who will manufacture bulk chocolate at the plant, and
The Fulton Chocolate Company which will produce low carbohydrate
and private label candy bars.
The two companies are accepting applications
from former Nestle employees.
The Sonoco Flexible Packaging plant will
be utilized by Spear USA of Ohio, a division of Spear Group Holdings,
LLC of London, England. The company produces clear labels for the
beverage industry including Budweiser, Bacardi, Pepsi and SoBe.
Although Spear USA is not a competitor of Sonoco, as Sonoco produces
packaging such as wrappers and bags, the plant includes equipment
that will increase label production efficiency. The company also
plans todraw on the Fulton plant’s experienced workforce.
Within the first three years in business, the combined employment
of the three companies is anticipated to be more than 630, with
the potential to grow. Combined investment is expected to top $52
million.
The investment of these companies would not
have been possible without the invaluable assistance of the County
of Oswego Industrial Development Agency (IDA), Empire State Development
(ESD) and other federal,
state and local partners, according to L. Michael Treadwell, CEcD,
executive director of OOC. Because of their commitment to bring
jobs to the area, the three companies will receive capital funding
support from ESD totaling more than $1.7 million along with Empire
Zone incentives including wage and investment tax credits.
OOC is also working with an energy service
company, Niagara Mohawk, and a power generating company to develop
a specialized energy incentive package for the projects. Based on
the level of commitment
from ESD, a memorandum of understanding between the two companies
evolved and, with a satisfactory environmental assessment, the County
of Oswego IDA agreed to acquire the Nestle property from Nestle
USA.
After closing on the property, the IDA transferred
it to Lion Capital Management Group (New York Chocolate and Confections
Company) which plans to lease a portion of the plant to Island Capital
Ventures (The Fulton Chocolate Company). Other partners that played
a crucial role in bringing these companies to Fulton include Niagara
Mohawk,Sen. Jim Wright, Assemblyman Will Barclay, former City of
Fulton Mayor Mike Stafford, former County Legislature Chairman Morris
Sorbello and U.S. Sen. Charles Schumer. According to Treadwell,
“Their assistance has been invaluable in the negotiation process.”
“The reuse
of the Nestle and Sonoco facilities provides not only a significant
economic impact associated with re-establishing jobs that were lost
due to the plant closures, but in addition, it creates the potential
to generate additional jobs and economic stability for the future,”
continued Treadwell. “We are fortunate that The Fulton Chocolate
Company, New York Chocolate and Confections Company and Spear USA
have chosen to locate their manufacturing operations in Oswego County.”
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$10,000 Grant
from Niagara Mohawk to Promote County’s Industrial Park Expansion
Operation Oswego County recently
received a $10,000 grant from Niagara Mohawk’s Cooperative
Business Recruitment Economic Development Program to help market
Oswego County’s industrial parks and economic development
incentives through brochures, national advertising, and Internet
marketing, according to Executive Director L. Michael Treadwell,
CEcD.
“The many assets of our industrial parks include strategic
locations, existing infrastructure, economic benefits and incentives,
and varying parcels and buildings which enable Oswego County to
be more
competitive when attracting prospective businesses,” said
Treadwell. “We appreciate Niagara Mohawk’s commitment
and continued partnership in fostering economic growth in Oswego
County. This funding will help market our industrial parks, providing
new and increased job opportunities and adding to the variety of
products and services available to county residents.”
Niagara Mohawk’s Cooperative Business
Recruitment program provides incremental matching funds for marketing
initiatives between Niagara Mohawk, a National Grid company, and
regional and local economic development organizations.
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OOC ReceivesCommunityImprovement
Grant From Entergy
Operation
Oswego County recently received a grant from Entergy’s Charitable
Foundation for assistance toward marketing the agency’s business
incubator facilities located in the town of Schroeppel and the city
of Oswego. The funding will help promote the utilization of the
incubator facilities in order to foster and assist new businesses
to provide economic gains and employment opportunities throughout
Oswego County.
Entergy contributes to more than 40 community
initiatives in the areas of education and literacy, arts
and culture, community economic development, health and social services,
environmental improvement and through employee volunteerism.
Pictured are OOC Executive Director
L. Michael Treadwell, CEcD and Bonnie Bostian, Entergy’s FitzPatrick
plant communications manager.
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Kreis Elected
to OOC Board
Oswego County National Bank
(OCNB) President and CEO Gregory Kreis was recently elected to the
board of directors of Operation Oswego County.
A 30-year veteran of the banking industry,
Kreis was employed as president and CEO of Factory Point
National Bank in Manchester, Vt., before joining OCNB in 1997. Kreis
was also chairman of the Vermont Bankers Association and received
the Vermont Outstanding Community Banker Service Award in 1996.
He served on the board of directors of the Community Bankers Association
of New York, the Government Relations Council, the Mutuality Advisory
Council of the American Bankers Association and currently serves
on the Retail Executive Committee of the New York Bankers
Association.
Locally, Kreis has participated on many community
boards and organizations such as Literacy Volunteers of Oswego County,
Oswego Hospital Operations Committee, United Way of Oswego County
and the Oswego Rotary Club.
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OOC Business
Assistance: Operation Oswego County offers an
array of business assistance services to both new and expanding companies
throughout Oswego County.
In addition to
the major plant developments in Fulton, Oswego County has been experiencing
some positive
economic progress in the past few months including:
Valvoline Express Care in
the city of Oswego will expand its services to include tire balancing
and rotation, brake service and New York State inspections. The
IDA, Pathfinder Bank and the City of Oswego Community
Development Office will provide funding assistance. Gioia and Associates,
Inc. will purchase and expand the Oswego Speedway to include motorcycle,
boat and recreational vehicle shows as well as go-cart, mini-super
and snowmobile racing. The project is expected to create two full-time
and 84 part-time jobs. Funding assistance will be provided by a
SBA 504 loan administered by OOC, Oswego County National Bank, the
IDA and
the City of Oswego Community Development Office.
The Fulton Tool Company
recently relocated to the former Oswego Wire building in Fulton,
which was
reconstructed for the company whose building was destroyed by fire
last May. Ten full-time employees were retained and 20 additional
jobs are expected to be created. The project was assisted by the
IDA.
Winter Harbor, LLC will
expand its heated boat storage business with the addition of docks
at its Hastings facility. The project is a component of a planned
expansion project that is expected to create 15 jobs. Funding
assistance for the docks will be provided by the IDA. Sunset RV
Park, Inc. will purchase Sunset Cabins in the town of Oswego. Improvements
and expansions will include a service building with showers, rest
rooms and laundry, a swimming pool, a picnic area, miniature golf
and a nature trail. The owner is a graduate of the Micro-Enterprise
Training Program. Funding assistance will be provided by the IDA,
Pathfinder Bank and an SBA 504
loan administered by OOC.
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Oswego Schools
Rated “Tops”According to ExpansionManagement
Oswego is one of the top cities to relocate
to if good schools are part of the criteria. After comparing graduation
rates, educational and income levels of the adult population, and
communities’ financial commitment to public schools in more
than 2,800 large school districts around the country, the magazine
gave the Oswego City School District its top rating.
The magazine, which has a circulation of
45,000, including company owners, chief executive officers, and
other top managers, also looked at college board scores, teacher
salaries, and other items businesses want to know about a school
district before moving or expanding there. The article, Education
Quotient 2003: Shaping Tomorrow’s Work Force, examined data
collected for the 2001-02 school year from districts with at least
3,500 students. The article noted that, “In today’s
knowledge-based economy, nothing is more important than the ability
to employ an increasingly well-educated work force.”
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Entergy,
CEO Receive Industry Honors
Entergy Corp, owner of the James A. FitzPatrick
nuclear plant in Scriba, and its CEO J. Wayne Leonard, received
top honors from the Platts/Business Week Global Energy Awards held
recently in New York City. Entergy was named Global Energy Company
of the Year, and Leonard was recognized as the industry’s
CEO of the Year.
Energy production was one of the largest
industrial sectors in the U. S., and these awards are the second
and third times Entergy has been so honored. In 2002, t he company
was named Power Company of the Year for its nuclear growth strategy.
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Reliant
Energy Enhancing Two Hydro Plants
Reliant Energy's Erie Boulevard Hydropower,
L.P. has started some enhancement work in follow up to its Federal
Energy Regulatory Commission operating license at its Oswego Falls
East and Oswego Falls West hydropower plants on the Oswego River
in Fulton.
The enhancement projects are expected to
total nearly $2.3 million, and are part of Reliant's investment
of more than $50 million into its New York State hydropower business
during the next five years. Through local general partner, Reliant
owns and operates 71 hydro facilities in New York with a total operating
capacity of 672 megawatts.
Among the improvements to be made at the
4.5-megawatt Oswego Falls East plant, is the installation of a new
ladder over the spillway to facilitate the seasonal upstream movement
of American Eels. These are the only eel species found in freshwater
rivers in North America.
Reliant plans other enhancements at
the Oswego Falls East hydro plant, including the installation of
new, oneinch-spaced, fish-friendly trashracks. To assist in the
installation, Reliant will build a cofferdam — a watertight
structure upstream of the work to be performed — thus emptying
the powerhouse forebay of water and permitting access for equipment.
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Empire Fresh-Cuts
Links with Holland
Jim and Sam Zappala, owners of the new onion
processing plant Empire Fresh-Cuts in the town of Oswego, purchased
two onion-peeling machines from Finis, a food processing equipment
designer and manufacturer located in Ulft, Holland.
The Zappala brothers recently traveled
to Holland to see the newly built equipment and receive training
on its operation. Pictured with the Zappala brothers is Mark Meier,
center, a technician from Finis, who will be heading up the team
that will be coming to Oswego to install the new peelers in the
plant.
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