St. Lawrence County Industrial Development Agency Mission Statement (Reviewed and Reaffirmed in Public Session on March 26, 2015) The mission of the St. Lawrence County Industrial Development Agency is to promote, encourage, attract and develop job opportunities and economically sound commerce and industry in St. Lawrence County. To accomplish its mission, the IDA constructs and owns industrial sites and buildings, administers loan packaging and industrial revenue bond financing and provides a variety of tax-reduction incentives. Performance Goals To create new employment opportunities for St. Lawrence County citizens through the attraction of or the creation of new businesses To create new employment opportunities for St. Lawrence County citizens through the expansion of existing businesses To retain existing employment opportunities To leverage the greatest level of private investment in St. Lawrence County businesses To educate County businesses, elected officials and community representatives regarding available economic development resources Act as a liaison with businesses and government to help coordinate economic development services and reduce bureaucracy Work cooperatively with area economic development agencies to market County assets and economic development resources to potential new or expanding businesses Ensure a transparent and accountable operation with responsibly-managed Agency assets 2015 Performance Review (January 2015 – December 2015) In 2015, the St. Lawrence County Industrial Development Agency (“SLCIDA”) and its affiliated agencies and development partners (the SLCIDA Local Development Corporation, the SLCIDA Civic Development Corporation, the St. Lawrence River Valley Redevelopment Agency, the Greater Massena Economic Development Fund and the St. Lawrence County Local Development Corporation) provided assistance to a number of employers, communities and stakeholders throughout St. Lawrence County. As part of the SLCIDA’s ongoing business outreach efforts, staff made nearly 1,900 contacts with approximately 500 existing and prospective firms and organizations in 2015. This includes site visits to business customer locations as part of our annual reporting process to New York State, as well as our regular outreach activities with local employers and site visits to prospective firms. The SLCIDA approved assistance to Cives Steel Company, Northern Division for the purchase of a Combilift product carrier and for the acquisition of a state-of-the-art robotic plasma cutting system. The Company’s investment in its Gouverneur facility will help make the company more competitive in the steel fabricating industry and help secure the 130 full time jobs at the plant. The SLCIDA, along with the City of Ogdensburg and OBPA met with representatives of the Ogdensburg-based Ansen Corporation shortly after Ansen’s announcement of its intention to purchase property in Syracuse. As a result of these discussions, Ansen decided to move forward with an expansion the company had been considering in Ogdensburg. To assist in the expansion, the SLCIDA-LDC authorized a resolution to loan up to $450,000 to Ansen Corporation, consisting of $300,000 in RVRDA funds and $150,000 from the Ogdensburg Growth Fund, for the purchase of the former Coorstek building in the Ogdensburg Commerce Park, to be converted into a manufacturing center for Ansen’s larger scale projects, creating 30 new jobs. DeFelsko Corporation applied to SLCIDA for financial assistance in the form of Sales and Use Tax Exemptions and a PILOT relative to the company’s expansion project in Ogdensburg in 2014. The PILOT documents were executed in March of 2015. The project is expected to create at least 15 new jobs over the next three (3) years. Additionally, in 2015 the company decided to renovate and modernize their original facility (adjacent to the 2014 expansion project). Termination and transfer documents from Kinney Drugs’ 2004 expansion project were executed and filed in 2015. Originally 100% tax-exempt property, the property is now wholly-taxable, and has added approximately $550,000 to the tax base, which will result in revenues of approximately $19,000 per year to the taxing jurisdictions. Corning, Inc.’s expansion at the Canton plant continued into 2015. The project will not only create 40 new jobs over the next three years, but Corning’s investment will strengthen its Canton plant operation and provide additional stability and security for the local plant. 2016 will mark Corning’s 50th year in St. Lawrence County. Discussions continue regarding financing options for the proposed restart of the St. Lawrence Zinc mines. In coordination with the St. Lawrence County One Stop Career Center, we will work with the New York State Department of Labor to coordinate a training package for the approximately 100-150 jobs that are expected to be created as a result of this project. Curran Renewable Energy was provided an exemption of up to $24,000 on sales tax for materials being utilized for the company’s yard improvement and furnace replacement project. The company has added two jobs as a result of the project, and currently employs over 30 people in addition to another 100 jobs at Seaway Timber’s harvesting and trucking operations. The SLCIDA worked closely with the company as it sought funding through the Regional Economic Development Council process for a number of proposed expansion initiatives. Ultimately, the company was awarded a $2,000,000 capital grand and $1,500,000 in Excelsior Job Program tax credits. The SLCIDA is now working with the company to assist in putting together the approximately $15,000,000 in funding needed to initiate the projects. LC Drives, an electrical machine technology firm, is leasing space in the SLCIDA’s Potsdam Commerce Park building. The company also applied for assistance through the Regional Council process and was awarded a $300,000 capital grant toward the purchase of new equipment to make next generation electrical motors. National Coffee Corporation, a coffeeroasting operation and Clarkson University are also leasing space in the Potsdam building and the SLCIDA continues to provide space within the building to enable St. Lawrence County to store pallets of emergency food rations. JProulx, Inc. (Save A Lot, Canton) received $150,000 in loan funds from the North Country Alliance Local Development Corporation as a result of a loan package sponsored by the SLCIDA. The project will utilize a vacant space in the University Plaza shopping center and will create over 20 jobs The SLCIDA assisted the St. Lawrence County Arts Council in the organization’s application for funds from the New York State Council on the Arts through the CFA process. The Arts Council received an $18,500 Award that it will use to hire a part time development director for the next two years. The SLCIDA terminated a lease and PILOT agreement with St. Lawrence Lumber as the project was deemed no longer operational and qualifying for IDA assistance. The property, located in Fowler, is now fully on the tax roll. The SLCIDA is prepared final bid documents and began undertaking the financial planning process for the Newton Falls Rail rehabilitation project. Additionally, the SLCIDA has contracted with DANC to provide project management services for Phase 2 of the rail rehabilitation, as the Authority has the technical and engineering expertise to assist in managing the project, and is unique in that its service territory is the same territory which the rail line traverses. The SLCIDA was awarded $234,000 in grant funds from the Northern Border Regional Commission to install 5 rail crossings on the Newton Falls Rail line. The funds will enable the SLCIDA to use more of the rail rehabilitation funds it was previously awarded to replace ties on the rail line. The SLCIDA also authorized a technical services agreement with DANC for engineering and redevelopment planning assistance for the J&L facility, while continuing to work with County and Regional Officials regarding the redevelopment of the J&L properties. The SLCIDA, noting that improved transportation corridors provide for more efficient movement of travelers and goods, and in doing so relieve traffic congestion and improve public safety, conveyed its ongoing support of upgrades to the existing Route 11 and construction of a well-planned, Canton Potsdam bypass route. While at this point an expansion project has not been planned, the SLCIDA has facilitated discussions between the Town of Gouverneur and St. Lawrence Gas Company to try to assist in the extension of natural gas service along Route 11 on the south side of Gouverneur. The SLCIDA completed the road and infrastructure expansion project within the Canton Industrial Park. Transfer of ownership of the newly completed portion of Commerce Lane to the Village of Canton was executed in October. To support the study of economic development opportunities in St. Lawrence County, the SLCIDA provided assistance to both the McKinsey Group (NYPA initiative) and SKEO Solutions (North Country Redevelopment Task Force RACER site BOA initiative). The SLCIDA participates as a steering or advisory committee member for both initiatives and has coordinated stakeholder outreach efforts throughout the County to assist in the gathering of perspectives on the current economic situation of the County and areas for potential growth. SLCIDA staff continue to actively participate in the Regional Economic Development Council (REDC) and Upstate Revitalization Initiative processes, as evidenced by membership on the Priority Project Implementation Committee, the Workforce Committee, and the Advanced Manufacturing & Leadership Group. In April, the SLCIDA hosted the NYS Department of Labor’s Paul Nelson at a meeting with key business leaders in St. Lawrence County. Mr. Nelson provided an overview of Governor Cuomo’s Unemployment Strikeforce Initiative to over 30 attendees. The SLCIDA hosted a seminar in June to discuss the Upstate Revitalization Initiative and Consolidated Funding Application processes with a dozen area businesses and economic developers. Of the $6.9 million in cash-based grant awards announced for private companies as part the CFA process in the seven county North Country region, over half went to St. Lawrence County-based applicants. The SLCIDA’s marketing and business development efforts throughout 2015 included: o Outreach of select Canadian businesses in Ontario and Quebec to generate interest and possible expansion into St. Lawrence County through trade shows, events, and advertising. o Outreach of select businesses in Massachusetts, Connecticut, New Jersey and Pennsylvania in conjunction with trade shows to generate interest and possible expansion into St. Lawrence County including over 3,725 direct mail pieces. Coordination with local colleges to outreach alumni via email communication in those geographic areas to encourage them to visit our booth at trade shows and consider a business location in St. Lawrence County. o Direct mailing to 18 Canadian Circuit Board Companies following the EpTech Montreal event, highlighting advantages for business expansion in St. Lawrence County. o Promotion of low-cost power available through the NYPA Preservation Power and St. Lawrence County Economic Development Power programs through a series of mailings, advertisements, trade show displays, site visits and other outreach activities. Approximately 7,730 power marketing brochures were mailed to companies in the Quebec & Ontario provinces prior to exhibiting at the PackEx show in Toronto. o Facilitation of three (3) Countywide Economic Developers’ meetings to ensure coordination of marketing efforts, strategic objectives and general operating activities of the local, county and regional developers. Participants of these meetings include: Adirondack Economic Development Corporation Canton Economic Development Office CITEC Clarkson University Development Authority of the North Country Empire State Development Corporation Gouverneur Area Development Corporation Massena Business Development Corporation Ogdensburg Bridge and Port Authority Ogdensburg Development and Planning Office Potsdam Office of Planning and Development Small Business Development Center St. Lawrence County Chamber of Commerce St. Lawrence County Planning Office St. Lawrence University SUNY Canton SUNY Potsdam o Maintained memberships in Canadian trade organizations to facilitate access to events and to maintain key contacts with Canadian companies and business multiplier organizations. o Advertising and media promotion pieces, including placements in North Country This Week, Watertown Daily Times, St. Lawrence County Newspapers, the St. Lawrence Film Festival program guide and Fourth Coast Entertainment. o Continued to research and develop, in partnership with SUNY Potsdam, a music industry development strategy to seek businesses and entrepreneurs that may have an interest in developing a business in St. Lawrence County to build on the resources of the Crane School of Music. o Participated in digital marketing through the Canadian Packaging Industry Association and the NNY Newspapers Desktop, Mobile and Premier News Network Advertising campaigns. Both advertising outlets are geared toward primarily attracting business from Canada. These outlets provide internet-based messaging about the County to audiences in Canada as well as local and formerly-local viewers visiting local and regional websites. o The SLCIDA was awarded a $50,000 grant through National Grid’s Strategic Economic Development Outreach program to enhance our Canadian marketing efforts from June 2014 through March 2016. o Sponsorship, coordination and/or attendance at trade shows/marketing events in New York, New England and Canada: Economic Fusion (SUNY Potsdam) Select USA (Washington, DC and Toronto Canada) EpTech (Montreal and Ottawa) PackEx (Toronto) CANECT (Mississauga) PackEx (Toronto) Matchmaker Event (SBDC) Ottawa Business Summit Secure Tech (Ottawa) The Really Big Show (Potsdam) EASTEC (W. Springfield, MA) Women’s Business Bootcamp (SUNY Canton) Atlantic Design & Manufacturing (New York) North Country Symposium (St. Lawrence University) CANSEC (Ottawa) Canadian Manufacturing Technology Show (Mississauga) o Co-sponsored, along with the OBPA and the U.S. Commercial Services, an Expand to the U.S. Workshop Event in Ogdensburg where approximately 40 Canadian companies attended a day-long session to learn how to establish a business in the U.S. o Since 2007, SLCIDA has partnered with the Fort Drum Regional Liaison Organization, DANC, Jefferson County LDC and Lewis County Economic Development to undertake a regional marketing initiative entitled Drum Country Business. Drum Country Business engaged Gruber Phillips International in March 2015 to make direct calls to businesses within target industries of the region. The targeted industries are back office, renewable energy, food processors, general manufacturers and energy-intensive users. As a result of this initiative: 700 companies have been approached 4,991 calls have been attempted 264 decision makers have been reached approximately 30 prospecting calls have been held with the companies information has been provided with a number of companies and the Drum Country Business group will continue to follow-up with the prospects As part of our Public Authority Law compliance program, we conduct annual reviews of our policies regarding Property Disposition, and Investment of Funds, and Procurement. Additionally, the Governance Committee reviewed the Code of Ethics, Whistleblower, Defense & Indemnification, and Compensation, Reimbursement & Attendance policies. A Conflicts of Interest policy for board members and employees was formalized in 2015, as part of its goal of integrity and transparency of its operations. Revisions to the Travel and Miscellaneous Expense Reimbursement Policy were made to afford clarification on such issues as tips, fees, alcohol purchases and tax exempt forms. Additionally, Amendments to the SLCIDA Bylaws were approved, most relative to Independence, Training, Quorum, Manner of Voting, conflict of Interest and Abstention, Performance documents for 2014 were also reviewed. The IDA completed three orientation sessions with new County Legislators which included site visits to ACCO, Riverside Iron, and Curran Renewable Energy. Board members approved the 2014 Independent Audit reports in March of 2015. The reports showed no findings. Legislators have been provided the reports electronically. In addition, the reports are available on our website at www.SLCIDA.com. St. Lawrence County Industrial Development Agency Additional Questions 1. Have the board members acknowledged that they have read and understood the mission of the public authority? ANS: Yes – the Board members reviewed and approved (by formal resolution) the mission statement and performance measures of the board. 2. Who has the power to appoint the management of the public authority? ANS: Management is appointed by the board members of the authority. 3. If the Board appoints management, do you have a policy you follow when appointing the management of the public authority? ANS: The board of the St. Lawrence County Industrial Development Agency appoints its Chief Executive Officer and Chief Financial Officer. The Chief Executive Officer appoints management and staff. 4. Briefly describe the role of the Board and the role of management in the implementation of the mission. ANS: The Board, with assistance of management, works to develop the authority’s mission, and evaluate the authority’s goals and performance. Management ensures that the Board’s mission and goals are carried out in a manner which achieves the intended public purpose - a process involving program evaluation, reporting, feedback and recommendation. 5. Has the Board acknowledged that they have read and understood the responses to each of these questions? ANS: The Board acknowledges its understanding of this document by formally approving the document in public session.