KIZ Coordinator’s Report February 20, 2009 Mapping Status I have been informed via email from Sheri that the approvals of our property modifications are 98% percent complete. The only outstanding request is for the Ernst property. Sheri is supportive of this addition but it still needs final approval. Please note that the Warren request was not approved as requested. DCED has modified the request from the addition of the 1,030 square feet to a swap of the Warren Hospital for the entire Warren County Industrial Complex facility. The entire facility was designated to eliminate the need to return for additional requests for the same facility. The mapping corrections for the Clarion Business District (Clarion Research Group), Paint Township (Clarion Laminates), North Street & Park Avenue (2W Technologies & Dynasty Software), and Crawford Business Park (Optical Filters) are all included within the 98% that have been approved. Pending Micro Grant & Intern Requests Michael Dent, owner of Optical Filters has scheduled a meeting with me for February 18th to review a KIZ Micro Grant and intern request. As soon as all necessary documents are in order for the micro grant it will be forwarded to the Executive Committee for their review. The internship description will be forwarded to Amara and Jim Fitch at Allegheny for potential interns. I have been notified that Clarion Research Group will be submitting a request for a summer intern. Cindy Nellis will be in contact with Bob at Clarion University to set this up. Metrics Attached for your review Company Tracking Document Attached for your review Tax Credit Training Seminar KIZ Resources will be presenting a Tax Credit workshop at the NW Commission on February 27th at 9:30. Notices have been sent to our KIZ companies and the CPA’s and accounting firms that are in our region. KIZ Resources is a company out of Altoona that brokers tax credits. They present for numerous KIZ as a free service. We are not endorsing their company but their four years experience with the credits is a valuable resource of information for us to utilize. 1 of 4 2/18/09 KIZ Quarterly Meeting The KIZ Coordinator’s have been notified that the required quarterly meeting is scheduled for March 4th and 5th in Harrisburg. Items of discussion are to include the progress of our Strategic Plans and the Semi Annual Reporting Portal. Meadville Pipeline Company Referral Jill Groves from the Meadville Redevelopment Authority and I met with a pipeline company interested in moving into the Meadville Industrial Complex and Business incubator (Old Talon facility). This company is presently working with the Gannon SBDC on their business plan and with a local attorney on their incorporation. Company Visits I have made fourteen company visits since the first of the year. At each of these meetings I have highlighted the internship program and the micro grant we have available. Over the next few weeks I will be following up with them in an attempt to encourage the submission of brief job descriptions and check on their status for micro grant requests. After I have a formal notification of the property modifications I will be in contact with the pipeline companies to schedule follow up meetings with each of them. Coordinator’s Tax Credit Certification KIZ companies are required to attach a KIZ Coordinator’s Certification to their application for the KIZ Tax Credit. These certifications will be sent out to our KIZ companies to verify their incorporation date, location, and identification of any partners that they have had or are presently working with. I have requested information on each company’s partner relationships to include with this certification. Pipeline Companies Approval/Confirmation Pending Formal Notice of Property Modifications Clarion Laminates – Incorporated 4/12/2005, under Advanced Manufacturing and the Clean/Green Technology clusters, Clarion Laminates utilizes over 80% of post-industrial recycled waste in its operation which is located in the Paint Township KIZ node in Clarion. Its innovative process qualifies the company as KIZ. Dynasty Software - Incorporated 12/30/08 under the Information Technology industry cluster and located in the North Street & Park Ave Node in Meadville, Dynasty Software is a spin-off company from Wood Technologies. Located in Meadville at 375 Chestnut Street, Dynasty software is copyrighted and the company is solely owned. It is software used in operating rooms to assure all instruments are accounted for before and after surgery. This software developed in 2007 is designed to assist with data validation prior to final data import to Steris Corporation’s exclusive surgical instrument management solution 2 of 4 2/18/09 called “Censitrac”. As of March 2008, all “Censitrac” implementations utilize Dynasty software. Dynasty is marketed in conjunction with “Censitrac” which presently services 24% of the hospital market. This software is presently a client based application and future plans include developing Dynasty as a web-based product which would be able to be expanded to hospitals that are not able to purchase the “Censitrac” software solution in addition to their marketing to other Instrument tracking solutions as a part of their implementation process. Forward Vision Systems Inc. was incorporated on August 1, 2008 and will be locating at the Warren County Industrial Complex node. As one of only four companies in the world trying to develop this product it would qualify under the Advanced Manufacturing industry cluster in their production of enhanced vision systems for general aviation aircraft. No other system has received FAA approval but Forward Vision expects to receive their approvals by the end of 2008. The system is the lightest and easiest to install and is the only upgradeable enhanced bi-vision system in development. The basic EVS-100 is a long range infrared sensor and the upgrade in development is to overlay a visible light camera image with that and fuse the images. Additional development down the road is to overlay synthetic vision with infrared so not only would you have what looks like your GPS view but real time images as well. There are a number of other related developments in R&D including virtual heads up displays, non aviation capabilities, etc. in the works. The business plan is projecting 3-5 employees over the next 3 years which includes wire harness manufacturers, quality control personnel, supervisors, and administrative personnel. Wage rates are planned at 2+ the minimum as a start. Ernst Biomass was incorporated on 11/13/08 and is identified under the Clean/Green Technology cluster. This is a locally held corporation formed to meet emerging regional energy needs in a sustainable, renewable manner. This company will process, dedicated energy crops, crop residue, and wood and waste biomass into a uniform fuel for residential, commercial, and industrial heating or utilization in a combined heat and power facility. The process will involve the collection and stockpiling of feedstock, drying, and grinding feedstock, densifying the dry, ground material, and preparing it for shipment. Plant Advancements was incorporated on 1/3/08 and is identified under the Clean/Green Technology and Life Sciences industry clusters. This is a renewable bioenergy company with a focus on the primary production of biomass for the growing biofuels industry. Plant Advancements’ research will develop new elite improved varieties of switchgrass and other energy crops and products used as feedstock for biofuels. The company will use conventional breeding, genomics, advanced breeding, and biotechnology to provide sustainable solutions for the biofuels industry. The near-term product goals (1-3 years) for Plant Advancements include the development of improved and regionally selected varieties of switchgrass through conventional breeding. I would request that the Board consider the approval or confirmation of the listed companies pending formal notification of the property modifications. 3 of 4 2/18/09 Answer Zone Intern At the December NWPA KIZ Board meeting a payment of $1040 was approved to support an intern to develop the Answer Zone, a one stop shop, central webpage that will link to the best available content for entrepreneurial education identified through annual research. I have been informed that the intern description will be available next week and the search for a qualified student from among the NWPA KIZ colleges will begin after that. Status of Keystone Innovation Grant It had been DCED’s intention to release the KIG Guidelines in late February but have now put them on hold for the immediate future. When created as part of Governor Rendell’s initial stimulus package, the Keystone Innovation Grant (KIG) program provided $10 million in funds to support this grant program. With the last round of KIG funding, the $10 million line item was expended. Funding for any future solicitation of Innovation Grant proposals will be contingent on BFTDA budget allocations and funding approvals by the BFTDA Board. I will keep you informed as information is made available. 4 of 4 2/18/09