2016 ANNUAL REPORT 1
CORNING HOSPITAL REDEVELOPMENT Redevelopment of the Corning Hospital site was a major focus of the Steuben IDA in 2016. The collaborative effort between Guthrie Corning Hospital, Riedman Development, Purcell Construction, the City of Corning, and Corning Community College resulted in a $35 million investment to create a center for healthy living and health based education in Corning s downtown. Phase I got underway in 2016 and includes the demolition of the former Guthrie Corning Hospital and the construction of a 21,000 sq. ft. school for nursing and healthcare careers for Corning Community College. The healthcare industry is the fastest growing industry sector in the region with an expected employment growth rate of 10%. The new education facility will deploy the latest technology to train the next generation of healthcare workers in the community and help fill an ever-growing need for healthcare professionals. In addition to the training facility, Phase II of the project is expected to begin construction in 2017 and will include 85 market rate apartments and up to 10,000 sq. ft. of commercial development. An additional 45 residential units and more commercial space will follow, helping to fill the growing demand for downtown living options. The entire development is expected to be completed by 2020. To help facilitate this development, the IDA received an $8 million Empire State Development (ESD) grant to support demolition of the hospital building and construction of the Corning Community College project. In addition, the IDA provided a 10-year PILOT along with sales and mortgage tax relief to support this phase of the project. Upon completion, the project will create 114 new jobs. 1
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URBANA HOTEL Steuben County IDA Executive Director James Johnson joined local officials to cut the ribbon and officially open the Best Western Plus in Urbana this summer. The new 61-room hotel provides additional accommodation choices in the Hammondsport area and is helping to extend the tourism season. Occupancy rates are exceeding expectations into the fall, attracting European visitors to the region. The Steuben County IDA provided a PILOT and sales and mortgage tax exemptions to support the endeavor. The project also received a $725,000 grant through the Southern Tier Regional Economic Development Council (STREDC) to advance the $6 million project, which created 12 full time positions. 3
Best Western was chosen because of its flexibility in development that the hotel chain provides its operators. This allowed developers to add design elements that reflect the local community s connection to aviation and the wine industry, including a replica of Glenn Curtiss Red Wing airplane that hangs above the lobby and greets visitors to the hotel. 4
NORTH AMERICAN RAIL MANUFACTURING HUB The Steuben County IDA partnered with the Hornell IDA to leverage resources through the Upstate Revitalization Initiative (URI) to develop the North American Rail Manufacturing Hub in the Hornell community. The Initiative will support the commercialization of cutting edge global technology in high-speed rail to make the Hornell community a globally recognized leader in rail transit manufacturing. The program calls for upgrades to the existing infrastructure and development of a vendor/supply chain training facility and certification program designed to develop a world-class pool of competent and successful vendors for the advanced rail manufacturing industry with the capacity and know-how to meet world-class standards in advanced rail manufacturing. A supply chain recruitment and development program will also be developed to strengthen the existing vendor pool and grow a supply chain for the future. The program will create a vendor base that is the most qualified and successful in the North American rail manufacturing industry. In addition, funding is being requested to support the development of an Advanced Rail Center of Excellence to train the workforce to meet the need for highly qualified and skilled workers for the advanced rail manufacturing industry. The center will support both production workers as well as engineers and technicians needed to deploy the latest technology in the rail transit industry. A focus will also be placed on increasing the number of MWBE and Veteran-owned businesses as vendors, via a significant investment in training, technical assistance and on-going mentoring to assure they are competent and remain successful vendors. The initiative will build off of the strength of Alstom s recent $2.5 billion contract to build new high speed trains to run on the Northeast corridor between Boston and Washington D.C. This contract will lead to the creation of 400 new jobs at the Hornell operation. 5
Research, Testing, and Transfer of Technology Facilities and Collaborative Projects: Capital improvements and facilities upgrades to support collaboration with world-wide rail manufacturers and supply chain businesses Collaborative relationships with academic institutions Talent Recruitment Initiative: Skilled production workers and specialized engineers Community revitalization projects Advanced Rail Center of Excellence: Engineering & Design Technical Center National Advanced Learning Center MWBE and Veteran-owned Incubation Center National Vendor Training and Certification Program Supply Chain Expansion Development Initiative: Recruitment program Strengthen and expand existing supply chain businesses Development of MWBE supply chain businesses National Engineering Certification Program Customer service and support for maintainers, drivers, train crew and students 6
MANUFACTURING AUTOMATION SYSTEMS After sitting vacant for nearly seven years, the Lindley Presho School is getting a new life. Manufacturing Automation Systems (MAS) is purchasing and repurposing the former elementary school to expand their business in Steuben County. MAS is a nationally recognized control systems integration company which specializes in the custom design and development of automation systems for manufacturing. The move will allow the company to expand their business to manufacture the systems they design, along with launching new automation platforms for their customers. The purchase by a for-profit entity will allow the school to be placed on the tax rolls and into a productive use once again. To support this project, the IDA is providing a PILOT as well as sales and mortgage tax exemptions. Even with these benefits, the project will add an additional $62,000 of revenue into the tax base over the benefit period. In addition, Corning Community College is partnering with the IDA to assist with this growth by certifying the business as a Start-UP NY business allowing them to access a variety of additional tax credits and helping to support the creation of six new jobs. Lindley Presho School 7
WORKFORCE DEVELOPMENT A well-trained workforce has become a key factor in business location decisions. As a result, the Steuben County IDA has taken a larger role in workforce development in 2016. To help advance the development of a strong labor pool, IDA Executive Director James Johnson co-chaired the I-86 Innovation Corridor Workforce Development Sub-committee to assess the current and future needs of workforce in the Southern Tier. The results of this work have shown that the region is facing a future demand issue due to population losses, an aging population, and the need to refocus training and education opportunities in demand occupations. The sub-committee established the need for a comprehensive workforce development strategy and implementation plan. To advance this effort, the Steuben County IDA presented the work of the I-86 workgroup to CSS Workforce NY to begin a discussion on the future workforce needs, and requested the organization serve as the lead agent in implementing the findings. As a result of these early discussions, the Steuben IDA in partnership with CSS and Three Rivers Development will be performing a gap analysis of the community s workforce development programming in early 2017 to be used to develop a formal long term workforce strategy for the Southern Tier. Comprehensive Strategy Focuses on a process that meets employer needs today and in the future, and has a measurable outcome. Has ownership based on collaboration and meaningful partnerships between employers, education (Pre-K to college), and government agencies. Is dynamic and flexible enough to respond to changing demands and can intervene at critical points to embrace opportunities. Top Three Highest Growth Industries: 1 Healthcare Existing jobs 8,257 Jobs in 2026 8,840 Biggest Gaps in both replacement and new job creation by 2026 Nurses 269 Pharmacy Technicians 227 Home Health Aides 719 Nursing Assistants 1,278 Physicians 344 LPN s 685 2 Transportation and Materials Moving Existing jobs 5,660 Jobs in 2026 6,630 Biggest Gaps in both replacement and new job creation by 2026 Heavy and tractor trailer truck drivers 1,282 Light truck and delivery service drivers 607 Bus drivers 538 Industrial truck and tractor operations 349 Laborers and freight material movers 1,407 Packers and packagers 345 3 Production Workers (includes traditional manufacturing and food processing) Existing jobs 7,764 Jobs in 2026 7,600 (does not include impact of growth in regional transportation manufacturing) Biggest Gaps in both replacement and new job creation by 2026 First line supervisors 548 Assemblers 1,066 Fabricators 203 Computer controlled machine operators 323 Machinists 666 Welders 410 Inspectors 428 Packaging Machine Operators 309 Helpers production workers 214 8
SMALL BUSINESS SUPPORT DOMAINE LESEURRE Domaine LeSeurre is quickly becoming known for French-inspired wines produced at its winery overlooking beautiful Keuka Lake. The owners, Celine and Sebastien LeSeurre, hail from France but have extensive knowledge of wine-making from their work at wineries all around the world. IDA staff first met the couple when they applied for a Rural Initiatives loan through STREDC to open their tasting room in 2013. More recently, IDA staff assisted the owners in applying for a state grant to assist with storm and waste water management in conjunction with an expansion of the winery. IRON FLAMINGO BREWERY Corning s first craft brewery Iron Flamingo opened its doors in December 2014. A Rural Initiatives loan through the Southern Tier Regional Economic Development Council provided capital to start the business. In addition to offering tastings and retail sales at its Baker Street location, the business ships its beers to over 50 restaurants and retail locations in New York. IDA staff has been able to provide the owners with resources that have assisted them in developing future growth markets. 9
CENTERWAY EXECUCENTER Centerway ExecuCenter, located in Corning s Gaffer District, was established in 2011 to provide Class A office space, co-working space and meeting rooms for short or long-term business needs. Amenities include a monitored reception area, secure access and cutting-edge technology. IDA staff has connected the owners with its community partners to assist them with possible expansion plans. 10
SMALL BUSINESS SUPPORT RAILHEAD BREWING COMPANY RailHead Brewing Company opened its doors in August 2014. The Hornell brewery was named for the railcar industry that has guided the local economy for many years. One of the owners participated in a brewery roundtable this summer sponsored by Steuben County IDA. During the event, brewers met with a representative from Empire State Development s Strategic Business Division focusing on Alcohol Management and Large Scale Tourism Development. Through the discussion, attendees learned about the various licenses required by the state and about the new One Stop Shop created for beverage industry members to answer their manufacturing questions. 11
SOUTHERN TIER PROVISIONS Southern Tier Provisions is a second-generation, family-owned pizza and Italian foods distribution business located in Bath. Since its start in 1980, the company has built a network of customers within a 250-mile radius in both New York and Pennsylvania. The property in Bath also includes a store for local residents who want to purchase deli meats and cheeses or bulk frozen foods. After learning about its expansion plans, the IDA staff suggested that the owners apply for a grant through the state s Consolidated Funding Application process. A grant application to assist with the expansion of the company s warehousing area, purchase new coolers and create a commercial showroom was submitted through the Southern Tier Regional Economic Development Council and approved by its members. IDA staff and company owners are awaiting final approval at the state level. THE OLDE COUNTRY STORE & MORE Est.1849 The Olde Country Store & More Est. 1849 takes visitors back to their childhood days with over 180 candies available by the piece. The store also sells local goods and crafts alongside authentic German products. The Wells family re-opened the North Cohocton store in June 2015 and displays some of the historic artifacts that were found on the property. IDA staff has been working with the owners to protect the historical nature of the building that dates back to 1849, and has also provided connections to other partner agencies to assist with start-up business issues such as human resources and energy efficiency. 12
PILOT PAYMENTS PROJECT INVESTMENT 2015 PILOT PAYMENT 2016 PILOT PAYMENT Corning Photonics Plant Corning Photonics Plant Expansion Corning Headquarters & Expansion Corning Refractories Corning Center for Fiber Optic Testing Corning CFT Expansion Corning CFT Phase III Corning Sullivan Park Phase II Corning Sullivan Park Phase II Expansion Corning Sullivan Park Phase III Corning Sullivan Park Rehab & Exp. Corning Decker Parking Garage The Krog Corporation The Gunlocke Company Corning Museum of Glass Automated Cells & Equipment TMS Properties Corning Diesel Plant NYSEG Diesel Plant B & H Rail Corp. SWP Environmental 736 Addison Road LLC BLW Properties LLC Empire Pipeline T & K Realty Canandaigua Power Partners Canandaigua Power Partners II Corning Child Care Millennium Pipeline Wyckoff Gas Storage Company LLC Arlington Storage Corning Glass Research Corning Integrated Die Manufacturing NYSEG Corning Valley Transmission Babcock Company Howard Wind Howard Wind - 2 Turbines RM14 Holdings - Calamar Erwin Hospitality Associates Arbor Housing & Development Pulteney Plaza Marsh Hill Wind CFA Apartments Corning War Memorial Apartments Hawkes LLC East Lake Holdings LLC $27,800,000.00 $25,000,000.00 $2,665,000.00 $4,000,000.00 $7,500,000.00 $16,700,000.00 $65,000,000.00 $25,600,000.00 $300,000,000.00 $9,800,000.00 $1,500,000.00 $10,000,000.00 $60,800,000.00 $710,000.00 $561,000.00 $193,000,000.00 $4,600,000.00 $2,163,000.00 $450,000.00 $12,000,000.00 $5,250,000.00 $3,200,000.00 $1,500,000.00 $145,000,000.00 $74,800,000.00 $7,500,000.00 $27,400,000.00 $50,000,000.00 $67,000,000.00 $9,200,000.00 $11,500,000.00 $300,000,000.00 $94,400,000.00 $9,108,163.00 $7,130,000.00 $2,945,000.00 $3,125,000.00 $31,800,000.00 $13,330,936.00 $1,596,000.00 $1,500,000.00 $4,850,000.00 $114,371.76 $40,443.28 $1,606,960.15 $35,661.35 $44,543.07 $7,475.76 $296,953.62 $99,936.38 $187,932.30 $72,727.89 $183,650.48 $110.00 $292,958.12 $841,503.00 $32,466.22 $6,063.68 $434,206.00 $104,715.83 $48,223.08 $12,321.06 $262,868.72 $83,570.82 $60,251.00 $37,676.22 $492,012.50 $210,862.50 $72,680.63 $370,041.00 $171,777.00 $768,152.15 $22,894.52 $27,094.56 $867,850.00 $13,576.45 $451,280.33 $22,381.90 $57,834.00 $42,829.88 $19,383.00 $66,918.06 $5,051.00 $5,589.00 $115,561.41 $42,102.27 $1,651,800.53 $81,007.34 $37,668.43 $46,370.22 $7,789.57 $318,795.26 $104,035.75 $201,755.04 $73,484.38 $192,467.63 $110,000.00 $315,807.50 $720,803.00 $34,000.00 $10,386.09 $445,305.00 $105,705.38 $45,437.29 $12,869.80 $272,615.78 $86,619.65 $60,251.00 $38,015.47 $506,800.00 $217,200.00 $76,816.35 $370,041.00 $179,777.00 $787,449.30 $24,548.94 $27,997.49 $925,444.00 $13,087.35 $464,818.53 $23,053.36 $78,984.00 $59,449.00 $23,022.00 $74,758.52 $85,860.00 $14,491.00 TOTALS $1,641,984,099.00 $8,595,798.27 $9,084,251.63 2016 PROJECTS Riedman Purcell CHI LLC Manufacturing Automation Systems $8,000,000.00 $300,000.00 $8,300,000.00 13
PILOT REVENUE ~ $8.3 Million 2014 Revenue ~ $8.5 Million 2015 Revenue $9+ Million 2016* Revenue * IDA projects have leveraged $1.6 billion in private investment and in 2016 generated over $9 million in PILOT revenue to various municipalities and school districts throughout Steuben County, representing an increase of over $500,000 from 2015. FINANCIALS 2016 INCOME AMOUNT Project Fees $313,000 Millennium Pipeline Economic Development Fund $108,000 Other Income $51,159 TOTAL $472,159 EXPENSES Payroll $230,088 Payroll taxes, health insurance, retirement $83,663 Operations $59,335 Professional Services $39,395 Marketing & Technology $30,000 Project Costs $25,000 TOTAL $467,481 14
The Steuben County IDA recognizes and values its partnerships. In 2016, the IDA worked with its business development partners to advance projects such as the North American Rail Manufacturing Hub in Hornell to support business growth opportunities across the County. - Philip Roche, Chairman 2016 was a year of significant accomplishments throughout Steuben County. Major investments in projects and initiatives were seen from Hornell to Corning. This work has set the stage for additional investments in 2017 and the creation of new job opportunities for the residents of Steuben County. - James Johnson, Executive Director Board of Directors Steuben County IDA Staff Philip Roche, Chairman Steuben County Public Defender Joseph Hauryski, Vice Chairman Steuben County Legislature Dr. Katherine Douglas, Secretary Corning Community College Michael Nisbet, Treasurer TTA James C. Johnson, Executive Director jjohnson@steubencountyida.com Kathryn Forester, Executive Secretary/ Business Manager SCIDA@SteubenCountyIDA.com Jill Staats, Business & Community Development Specialist jstaats@steubencountyida.com Michael Doyle Pleasant Valley Wine Company Christine Sharkey Corning Enterprises Brenda Copeland Steuben Trust Company SteubenCountyIDA.com 607.776.3316 15