Economic
Development Newsletter
September/October 2003:
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Nestlé
Plant Turnaround Looks Positive
Seven months have passed since the city of
Fulton and 467 employees watched the doors close on the first North
American chocolate manufacturing facility established by Nestle.
Now there are significant developments underway aimed at putting
the plant and many of its employees back to work. Two different
chocolate-related enterprises are interested in sending the sweet
smell of chocolate wafting back over the community.
“We are very fortunate to find two
prospective companies with seemingly compatible operations that
have an interest in this plant. It is, in fact, quite remarkable,”
said OOC Executive Director L. Michael Treadwell, CEcD. “That
doesn’t happen very often in this business. Unfortunately,
after a plant of this size has been closed, we often work for years
for something like this.”
He said that although the County of Oswego
Industrial Development Agency (IDA) is still working toward finalizing
an agreement of the terms and conditions of a property transfer
from Nestle to the IDA, “the negotiations have been positive
and are progressing.”
To date, Nestle has agreed to extend the
deadline for the IDA to complete a comprehensive environmental evaluation
of the Fulton plant to mid-December. The IDA has retained engineers
C&S Companies of Syracuse and an environmental review is currently
underway.
The two investor groups looking to manufacture
chocolate at the plant, Island Capital Ventures and Lion Capital
Management, both submitted bid proposals to purchase the Nestle
facility last August. When Nestle rejected bid proposals and elected
to donate the property and publicly auction off remaining equipment,
both companies chose to continue their projects and have now completed
equipment acquisitions.
In October, representatives of Lion Capital
Management and a delegation of cocoa producers and diplomats from
the Ivory Coast visited the Fulton plant to evaluate the facility
as well as the production capacity of their equipment purchase.
The group, who intends to produce bulk chocolate, also met with
representatives of Island Capital Ventures to investigate potential
opportunities between the two companies. Island Capital plans to
produce a zero-carbohydrate “Z-Carb” chocolate snack
bar and other products at the plant.
Within the first two to three years in business,
the combined employment of the two companies is anticipated to be
in the 300-400 range with the potential to grow. Because of their
commitment to bring jobs to the area, both companies are working
with Empire State Development to procure state funding support and
both projects are Empire Zone eligible.
“I applaud the efforts of U.S. Sen.
Charles Schumer, Sen. James Wright, Assemblyman Will Barclay, City
of Fulton Mayor Michael Stafford, Oswego County Legislature Chairman
Morris Sorbello, Empire State Development, Niagara Mohawk, and the
IDA,” commented Treadwell. “Their assistance has been
invaluable in the negotiation process thus far.”
“With the continued assistance of our
federal, state and local elected officials and community partners,
we hope to continue the tradition of chocolate production in Fulton
and bring much needed jobs back to the area.”
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SUNY
Oswego Breaks Ground On New $25.5 Million Campus Center
The beginnings of the first new building
on the SUNY Oswego campus in more than 30 years will soon be seen,
after a ground breaking ceremony for the new multipurpose SUNY Oswego
Campus Center was held in mid-October.
The 111,492-square-foot building, which is
expected to cost around $25.5 million, will include a convocation
center/ice rink, food court, retail kiosks, meeting rooms and student
activities areas. The building will rise on an open site, between
Swetman Hall and Penfield Library.
“Combined with this fall's reopening
of two renovated buildings — Rich Hall as the new home of
the School of Business and Johnson Hall housing the First-Year Residential
Experience — and the pending opening of a new cafe in Penfield
Library, the ground breaking represents another cornerstone in SUNY
Oswego's spirit of renewal,” President Deborah F. Stanley
said.
The project will create nearly 50 jobs with
an estimated $2.1 million in new annual payroll. The IDA assisted
with funding for the project through the issuance of $5.5 million
in civic facility revenue bonds.
Over the life of the project, more than 750
jobs will be created or supported, directly or indirectly, SUNY
Oswego officials said.
The convocation center/ice rink will feature
permanent seating for 2,500 people, with the flexibility to accommodate
up to 4,000 for special ceremonies such as the annual commencement
in May.
The majority of the funding will come from
a member item furnished by state Sen. Jim Wright and the SUNY Construction
Fund. Several million dollars in private donations will help fund
the project.
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Oswego
County Among Top SBA Loan Producers for Region
According to the U.S. Small Business Administration
(SBA), Operation Oswego County (OOC) is currently ranked seventh
in the region and among the top 50 percent in the nation for SBA
504 loan approvals. Oswego County is located in SBA Region 2 which
includes New York State, New Jersey, Puerto Rico and the U.S. Virgin
Islands. Districts in New York State include Syracuse, Buffalo and
New York City. OOC ranked 12th in Central New York for the total
number of loans approved in 2002.
For the period January through September
2003, OOC facilitated the approval of 10 loans for a total of $1.6
million — up 150 percent from 2002. According to the SBA,
on a national level, loan approvals have increased 23 percent and
the dollar amount of the loans has increased by 25 percent in 2003.
OOC, a SBA Certified Development Company
(CDC), is authorized to finance projects using the SBA 504 loan
program. The SBA 504 program is designed to promote economic development
growth and job creation in small businesses and make the overall
financing structure for a new business or project more attractive
and affordable.
“By utilizing SBA's 504 program, Operation
Oswego County is able to provide the financing that is so critical
to small business expansion and job growth in Oswego County. It's
an effective tool that should be in every economic developer's toolbox,”
said SBA Syracuse District Director Bernard J. Paprocki.
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City
Of Oswego Empire Zone Revisions Approved
Spurs More Than $24 Million in New Investment, Creation/Retention
of 838 Jobs
Major revisions to the boundaries of
the City of Oswego Empire Zone will allow 35 economic development
projects to move forward with $24.7 million in investment and expansion
plans, creating 347 new jobs and retaining 491 more, according to
a recent announcement by Governor George Pataki.
“These
revisions to the City of Oswego Empire Zone will further enhance
the effectiveness of the zone and New York's top economic
development program,” Governor Pataki said. “By making
these changes, more businesses will be able to create jobs and investment
in New York and we can ensure that New Yorkers continue to have
access to good jobs.”
“In today's global marketplace we are
competing for each and every job. The Empire Zones program provides
New York an invaluable tool in that competition and these changes
will have a direct, positive impact for local residents.”
The boundary revisions to this zone replace
537 acres of land with 502 acres that have greater potential for
near-term development. According to Mayor John Gosek, chairman of
the Oswego Empire Zone Administration Board, among the employers
that will benefit from the revised boundaries are:
• St. Luke Health Services, investing
$1.5 million, creating 20 new jobs and retaining 270 jobs;
• Lowe’s Home Centers, Inc., investing $16.5 million,
creating 175 new jobs;
• Ruby Tuesdays, investing $2 million, creating 70 new jobs;
and,
• Sunrise Nursing Home, investing $1.5 million, creating 20
new jobs and retaining 107 jobs.
Senator Jim Wright said, “Oswego is
a prime location to establish and expand businesses as evidenced
by these projects. The announcement made today by Governor Pataki
will build upon Oswego's successes and help create new jobs. Empire
Zones have been a powerful tool for growth here in Oswego and across
the region. I commend Governor Pataki for approving the zone alterations
that will provide for continuing economic development opportunities.”
Assemblyman Will Barclay commented, “I
commend Governor Pataki for announcing these valuable economic development
projects for the City of Oswego. The expansion of these Empire Zone
boundaries will create more jobs and boost the local economy, not
only benefiting the city but the entire county as well.”
Businesses operating inside a zone are eligible
for a range of tax benefits. Benefits include tax reduction credits,
real property tax credits, sales tax exemptions, wage tax credits,
and utility rate reductions, among others.
The March 2003 issue of Site Selection magazine
reported New York State remains at a solid third in the nation in
attracting new and expanded corporate facilities. In 2002 New York
attracted 812 expansion projects, compared with only 75 in 1994
when the state placed 20th.
Fulton EZ to Expand: The
City of Fulton Empire Zone is also in the process of expanding its
boundaries, having received local approval and currently awaiting
state approval.
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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.
Pet Food Manufacturer Expands, Relocates
to Oswego County Industrial Park
My Pet Enterprises, provider of My Doggy™ and My Kitty™
products for pets, has expanded its pet treat manufacturing and
pet product distribution operations and relocated to the Oswego
County Startup Facility (SUF) in the Oswego County Industrial Park
in the town of Schroeppel.
Founded in 1996, My Doggy™ products
are distributed in over 800 upscale supermarkets, gourmet stores,
gift stores, natural food stores, home and garden centers and pet
boutiques throughout the United States and recently expanded its
distribution to the Hong Kong market.
The company will produce its signature product,
the My Doggy™ Bite, an all natural, gourmet cookie for dogs,
at its new location. The “Bites” come in several varieties
including peanut butter, carrot ginger, honey sesame, bacon flavored
soy and honey, pumpkin carob and apple honey no-wheat. The cookies
contain no additives and are naturally preserved with honey and
molasses.
In addition to manufacturing the My Doggy™
Bite, My Pet Enterprises also distributes a variety of all natural
beef bones, chips, catnip and seafood snack packs for cats as well
as pet accessories including beds, brushes, carriers, collars, leashes
and shampoo, and will soon add a line of pet spa products such as
towels, spritzer and ear cleaner.
“Because our pet treats and personal
care pet products are of the highest quality, priced reasonably
and imaginatively packaged, we have been able to steadily grow our
business from a single person operation to a staff of seven producing
and distributing 30-40,000 cookies per week during peak times,”
said My Pet Enterprises President and CEO Barbara Sprafkin.
Due to the increase in business, the company
was outgrowing its former location at the Tri-County Mall in Baldwinsville.
“We began feeling very cramped for
space at our previous location. When we learned that the Start-Up
Facility was available, we were thrilled. It’s a large, clean,
wide-open space for us with an appropriate area designated for every
facet of the business,” Sprafkin said.
The SUF is managed by Operation Oswego County
and offers affordable rental space for non-retail, industrial and
service businesses. The goal of the incubators is to help businesses
achieve significant growth and development during the first few
years of business with the intention of eventually moving out of
the building and into private commercial space.
“We are excited and encouraged that
a unique, woman-owned manufacturing business such as My Pet Enterprises
chose to move its operation to Oswego County,” said L. Michael
Treadwell, CEcD, executive director of OOC.
“Oswego County has been experiencing
some very positive economic progress in the past few months,"
said Oswego County Legislature Chairman Morris Sorbello. “My
Pet Enterprises’ expansion and move to Oswego County is an
encouraging sign that this economic development momentum will continue.”
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WiseBuys
Department Store to Open in Pulaski
WiseBuys Stores, Inc will open a new department
store in the former 59,600 square-foot Ames building in Pulaski,
with assistance from OOC and the County of Oswego Industrial Development
Agency (IDA).
The Pulaski store will be one of five stores
in the North Country and will create 55 to 65 local jobs. The store
is expected to open in the spring of 2004.
“WiseBuys was formed to proactively
address the recent loss of Ames Department Stores throughout northern
New York,” said WiseBuys Stores, Inc. founder Thomas Scozzafava.
“Ames represented a vital retail destination in the larger,
key shopping centers and filled an important role of providing a
variety of affordably priced and much-needed merchandise. It is
our goal to replace and expand on the concept of Ames.”
The project will receive financial assistance
from the county IDA, New York Business Development Corporation and
KeyBank.
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Treadwell
Re-Elected to NEDA Board
OOC Executive Director L. Michael Treadwell
was re-elected to another two-year term on the board of directors
of the Northeast Economic Developers Association (NEDA) at the organization’s
annual meeting held recently in Bar Harbor, Maine.
NEDA was formed
in 1956 to promote economic and industrial development in
the northeastern region of the U.S., including Connecticut, Delaware,
District of Columbia, Maine, Massachusetts, Maryland, New Hampshire,
New Jersey, New York, Pennsylvania, Rhode Island and Vermont.
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NiMo Honored
as Top Development Utility
Niagara Mohawk, a National Grid Company,
has been named one of the nation’s 10 top utilities for economic
development by Site Selection magazine.
This is the first time a New York State utility
has received this designation.
Utilities across North America were surveyed
earlier this year for the magazine’s report. Winning utilities
were those that indicated the most new capital investment and the
most new jobs (in total and per capita) in their service areas,
as well as development of new programs and services for attracting
economic activity, according to Mark Arend, editor of the magazine.
Marilyn Higgins, vice president for economic
and community development at NiMo, said the company took part in
projects that created 4,400 jobs and made over $842 million in new
capital investments in 2002.
The company has also cemented plans for a
new economic development fund valued at $12.5 million a year for
the next 10 years, she said.
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Oswego Health
Expands Hospital
Oswego Hospital recently broke ground for
its $28 million Renewal Project which includes a new outpatient
surgery center, intensive care unit, maternity department and new
operating rooms. This expansion project will create 55 jobs and
is being financed with the assistance of the U.S. Department of
Housing and Urban Development.
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