| Economic
Development Newsletter
September/October 2004:
 Download
this newsletter
Back
to Publications
Former International Paper Plant
Sold, To Be Redeveloped for Commercial Use
EJ Spirtas Group of St. Louis, MO acquired the former International
Paper facility located on Mitchell St. in Oswego. The lake-front
purchase includes 55 acres of property with 164,000 square feet
of warehouse space with rail and truck docks, a 16,000-square foot
office building, and a 450,000-square foot, two-story manufacturing
facility.
The company plans to redevelop the facility for manufacturing,
warehousing and other commercial uses. The facility will be renovated
to meet any tenant needs and the 300,000 square foot mill building
will be demolished.
“The property is fully equipped with the necessary infrastructure
to set up heavy manufacturing, while it is also adaptable to assembly
and warehousing if needed,” said Eric Spirtas, president of
EJ Spirtas Group. “EJ Spirtas Group fully intends to take
the steps that will entice locally-needed jobs. We will continue
to work with local, state and federal agencies and officials to
enhance the site in order to attract local, regional and national
users of this type of property.”
“We are excited and encouraged that EJ Spirtas Group has
decided to purchase and market this important property in Oswego,”
said City of Oswego Mayor John Gosek. “I am confident that
with Eric Spirtas’ expertise in management and redevelopment,
the plant will be up and running very soon.”
“Since the plant closed, Operation Oswego County has partnered
with the City of Oswego Community Development Office to aggressively
market the property,” said L. Michael Treadwell, CEcD, executive
director of Operation Oswego County. “We are fortunate that
EJ Spirtas Group realized the tremendous potential of this plant
and has committed its resources to redevelop the property and create
new jobs.”
“This is a great opportunity for Oswego County to continue
the growth of its manufacturing base. We look forward to working
with EJ Spirtas Group as an active community and business partner,”
said Russ Johnson, Chairman of the Oswego County Legislature.
Back to Top
Fulton Co-generation Plant Acquired
Lion Capital Management Group (LCM), its partner Fimab and Promeneur
& Hausmann, Inc. and El Paso Merchant Energy North America Company
reached a definitive agreement for LCM to own and operate the Fulton
Cogeneration Association, L.P. (FCA), a subsidiary of El Paso Power
Merchant of Houston, Texas.
The cogeneration plant is a 45-megawatt, natural gas-fired, combined-cycle
power plant facility located in the city of Fulton.
Currently, the plant is dispatched as a merchant facility by El
Paso, selling its output into the NYISO Central Zone via an interconnection
to Niagara Mohawk Power Corporation.
The plant specializes in producing electricity and steam for businesses
throughout Oswego County.
“Being able to bring not only a consortium of cocoa producers
as direct investors to the business of manufacturing fine chocolate
with the already trained labor available at the oldest milk chocolate
manufacturing plant in North America, but to also acquire a major
power plant in the region, is truly the dream of every manufacturer,”
said Dr. Ousmann-Alain Gbané, principal and chief investment
officer of LCM.
According to Gbané, of all the transactions LCM has made
within the last few months, the latest may be the most pivotal to
the success of its investment in the New York Chocolate & Confections
Company.
“The sale of the cogeneration facility to Lion Capital Management
Group, parent company of New York Chocolate & Confections Company,
may become very beneficial to the city of Fulton if the company
decides to produce electricity,” said City of Fulton Mayor
Daryl Hayden.
The cogeneration plant was originally installed in late 1990 to
produce electricity with a $48,500,000 County of Oswego IDA bond
currently held by a subsidiary of LCM as a result of this transaction
with a balance of $18,700,000.
The purchase of the cogeneration facility will not only allow the
New York Chocolate & Confections Company to use steam in running
the former Nestlé facility, but also could potentially benefit
other manufacturing plants and hospitals in the area.
“The involvement of LCM in this project helps strengthen
the long-term development of New York Chocolate & Confections
Company in Fulton. Also, the potential of business relations with
other current and prospective employers, such as Northeast Biofuels,
is a tremendous asset for growing the local economy,” said
L. Michael Treadwell, CEcD, executive director of OOC.
Back to Top
Talent
Retention and Attraction Discussed at Public Issues Forum
The Workforce Development Board of Oswego County, Operation Oswego
County and SUNY Oswego co-hosted a public issues forum in October
titled “What’s Cool About Oswego County: Economic and
Workforce Issues Today and Tomorrow.”
Featured speaker was Rebecca Ryan, president of Next Generation
Consulting, Inc. (NGC). Ryan discussed the findings of a recent
study conducted to determine how Oswego County can attract and retain
young professional employees.
Throughout August and September, NGC conducted a series of focus
groups and interviews with young professionals to gauge their ideas
on what makes Oswego County competitive.
During the public issues forum, Ryan presented the resulting “handprint”
of Oswego County, which profiled how the area scored in the seven
indexes that are considered important to young professionals: vitality,
earning, learning, social capital, cost of lifestyle, after hours,
and around town.
The strategic planning initiative will culminate with the publication
of a five-year workforce development plan expected this winter.
Back to Top
OOC
Business Assistance: Operation Oswego County
offers an array of business assistance services to both new and
expanding companies throughout Oswego County.
- Northeast Biofuels, LLC will acquire a 90-acre
subdivision of Riverview Business Park in Volney for a 100-million-gallon-per-year
ethanol production facility. The $148 million project will include
retrofitting approximately 300,000 square feet of the existing
building and the construction of two grain silos and one cooling
tower. The project will create 51 jobs;
- Matangi Motels, LLC acquired the Days Inn in
the city of Oswego. The 44-room motel will be upgraded through
building renovations and new furniture and fixtures. The project
will create 15 jobs. Funding for the $1.6 million project will
be provided by the Oswego CDO, Oswego County National Bank, County
of Oswego IDA and an SBA 504 loan through OOC;
- Attorney Christopher Richmond will renovate
a building in the city of Oswego to establish a law practice which
will focus specifically on worker’s compensation. The building
will be developed with state-of-the-art computer and electronic
conferencing capabilities. Funding for the project will be provided
by the Oswego CDO, PathFinder Bank, County of Oswego IDA and an
SBA 504 loan through OOC; and
- Modheshwari Motels, LLC acquired and will renovate
the 47-room Thomas Inn in the city of Oswego which will be franchised
as a Scottish Inn. The $1.3 million project will create 13 jobs
and will receive funding assistance from the Oswego CDO, Oswego
County National Bank, County of Oswego IDA and an SBA 504 loan
through OOC.
Back to Top
Economic Development Updates
- Alcan, Inc. announced that the publicly-traded
company to be created in the spin-off of its aluminum rolled products
business will be called Novelis. Pending governmental and shareholder
approvals later this year, Novelis will begin operations as an
independent company on Jan. 1, 2005. Novelis will be the world’s
largest aluminum rolled products company.
- Wise Buys Stores, Inc. announced plans to open
a new store in the former Ames Department Store location in Hamilton,
NY. The 43,000-square foot store will feature a Payless Shoe Source,
Kay-Bee Toys and Hobby Shop outlet. The Hamilton store will be
the fifth for Wise Buys which now has locations in former Ames
stores in Canton, Tupperlake, Gouverneur and Pulaski.
The store will employ 40-50 people.
- The Northeastern Economic Developers Association recently
recognized Operation Oswego County with an award of excellence
for its website www.oswegocounty.org. The recognitions are awarded
each year to economic development organizations throughout the
northeastern U.S. “We are proud that our marketing materials
have met the test of our economic development colleagues,”
said L. Michael Treadwell, CEcD, OOC executive director.
Back to Top
Loan
Term Extended for Linked Deposit Program
The term for reduced rate interest
borrowing under New York State’s Linked Deposit Program was
recently extended from two to four years. The new provision takes
effect Nov. 1, 2004.
The Linked Deposit Program is a public-private
partnership, administered by Empire State Development, which provides
companies with affordable capital based on bank loans at reduced
interest rates and subsidized by corresponding “linked”
state deposits.
Since 1994, the Linked Deposit Program has
funded more than 1,900 projects for a total of nearly $659 million,
leveraging more than $1.4 billion in new capital investment by businesses
in the state.
Since the program’s inception in 1993,
a reduced interest rate was provided to borrowers for a period of
two years. The maximum amount permitted for a linked deposit is
$1 million. Under the new guidelines, a company that receives a
two percent reduction on a $1 million linked deposit for four years
will realize an interest savings of $80,000 on its loan. That $80,000
will improve the company’s cash flow and provide funds for
new jobs, training, marketing, and more. There is no minimum loan
amount.
Eligible businesses can obtain loans from
commercial banks, savings banks, savings and loan associations,
farm credit institutions, and the New York Business Development
Corporation at an interest rate that is two or three percentage
points lower than the prevailing rate on such loans, thereby making
borrowing less expensive.
For more information, visit www.nylovesbiz.com,
or call the Linked Deposit Program office at (518) 292-5261.
Back to Top
OOC
Named to CNY Regional Development Alliance
Members from 12 counties were
recently named to a new Regional Development Alliance intended to
help Central New York compete as a larger “super region.”
The 23-member group is comprised
of individuals from a variety of economic development, business
and academic institutions across the region.
Participating counties include
Cayuga, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga,
Oswego, St. Lawrence, Seneca and Tompkins.
Representing Oswego County are
Operation Oswego County Executive Director L. Michael Treadwell
and Laser Transit CEO and OOC Board President George Joyce.
- Alliance members will be responsible for:
- Identifying issues for regional cooperation;
- Developing and branding a regional identity;
- Fostering a cooperative regional consciousness;
- Identifying champions for specific projects and recommendations;
and
- Promoting the goals and recommendations laid out within the
Essential New York Initiative.
The group will meet several times each year to establish regional
priorities.
Back to Top
|
