LCEDC Annual Report 2015-2016

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THANKS TO THOSE WHO SUPPORT PROGRESS IN LAWRENCE COUNTY.

The LCEDC enjoys financial support, through contributions and membership, from a significant number of governmental, business, community and individual members. This support is used for a variety of projects which stimulate job creation and private investment through locally evolved initiatives. In 2016, membership from the private sector represented 45 companies and individuals. Membership allows participation in the management and services of the LCEDC.

Members and Board of Directors are gratefully acknowledged as follows:

2016 Board Of Directors 2016Membership

Sam Biasucci, President

Donna Smarrelli, Secretary

Nicholas Paolini, Treasurer

Samuel Angelucci

Scott Boyd

Jonathan Bruce

Commissioner Steven Craig

Douglas Danko

Commissioner Robert DelSignore, Sr.

Janet Falotico

James Gagliano

Samuel Giannetti

Charles Jackson

Robert McCracken

Michael Mooney

Carl Petrus

Raymond Santillo

Joe Smarrelli, Jr.

Mark Tomaszewski

Robert Value

Commissioner Daniel Vogler

Sam B. Biasucci

Alcon Mechanical Piping

Anderson Brothers

Berner International

Blair Strip Steel

Bridgeway Capital

Bruce & Merrilees Electric

Castle Builders Supply

Castle Mold & Tool

Catalyst Connection

Consolidated Glass Corporation

County of Lawrence

Crisis Shelter of Lawrence County

Dairy Farmers of America

Ellwood Chamber of Commerce

Ellwood Forge

Farmer’s National Bank

First Commonwealth Bank

First Energy/Penn Power

Ezeflow USA

Howard Hanna

Huntington Bank

IBEW

Inmetco

Jameson Hospital - UPMC

Kasgro Rail

Keystone Compliance

Lawrence County Social Services

Lawrence County Chamber

Lawrence County Tourism

Mom’s Wholesale Foods

New Castle Industrial Railroad

New Castle School of Trades

PA American Water

Packer Thomas

Petrus Engineering Group, Inc.

Preston Motors

RAR Engineering

Richardson Cooling Packages

Silgan PCS

Steel Valley Authority

Treloar & Heisel, Inc.

United Way

Wallace & Pancher

WesBanco

West Central Job Partnership

Measuring Another Year of Progress

The LCEDC actively supports the retention and growth of existing firms, while also attracting new ones to the County. The following tables and graphs demonstrate the progress made by the LCEDC in meeting its goals.

$4,500,000

$4,000,000

$3,500,000

$3,000,000

$2,500,000

$2,000,000

Program Investment vs. Management & General

Program Services Support Activities

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0

Working Together For Future Growth

The LCEDC works with numerous organizations that provide professional and technical expertise and services critical to making businesses successful in Lawrence County.

WORKFORCE

SECIVRESSSENISUB

ENTREPRENEURS

In addition, the LCEDC also provides administrative support to the following organizations and programs necessary to facilitate investment in Lawrence County:

Lawrence County Learning Center

The LCEDC provides administrative support to the Lawrence County Learning Center, offering classroom space and computer labs to Lawrence County businesses and area educators as a way to provide education and training to a wide range of learners.

Lawrence County Industrial Development Authority

Since 2010, the LCEDC has provided management services to the Lawrence County Industrial Development Authority (LCIDA). The LCIDA is a tax-exempt financing conduit lender for eligible large-scale projects.

Lawrence County Enterprise Zone Program

The LCEDC has provided staffing and management for the County Enterprise Zone Program since 2001. Low interest loans, tax credits for new construction and a streamlined environmental remediation process are among the benefits to the thirteen Enterprise Zone communities. Over this time, more than $4.3 million of EZ loans and $1.5 million in tax credits have been awarded to Lawrence County businesses.

Commonwealth of PA Certified Public Lender

LCEDC staff makes certain to obtain the required PDUs needed each year to maintain annual certification by the Commonwealth of Pennsylvania to administer lending programs to Lawrence County businesses. When you see the term “CEDO,” that refers to a network of organizations, like the LCEDC, that are “Certified Economic Development Organizations.” In addition, both the Executive Director and Assistant Director maintain CEcD certification through the International Economic Development Council, the industry’s gold standard for excellence in the profession.

Keystone Opportunity Zone Coordinator for Lawrence County

The LCEDC staff has assisted with the creation of eight Keystone Opportunity Zones and helped 37 businesses and 17 property owners in receiving their annual KOZ certificate each year. These properties provide KOZ incentives for job-creating businesses to operate for a period in a virtually tax-free business environment.

USDA Micro-Entrepreneurial Rural Assistance Program Director

The LCEDC provides loans for microenterprise startups and existing businesses through a Rural Microloan Revolving Fund. The LCEDC also provides technical assistance and training to microloan borrowers and micro entrepreneurs. As part of this program, the LCEDC manages a $100,000 revolving loan fund capitalized by USDA funds.

Lawrence County Revolving Loan Fund Administrator

In addition to the loan funds and programs listed above, the LCEDC also manages its own local Revolving Loan Fund designed to offer gap financing for the development and expansion of small businesses in Lawrence County. The fund, totaling more than $450,000, is a self-replenishing pool of money, utilizing interest and principal payment on old loans to issue new ones.

More 2015-16 Projects, Awards and Activities

Noteworthy news throughout the last year affecting our organization, community and businesses:

Midtowne Industrial Complex

The former New Castle Refractories facility located on Industrial Street, has been sold to a Mark McClymonds-related business for the purpose of constructing a transload and warehousing station. To assist with the financing of the project, the LCEDC will be using its $1 million PA First Grant as part of the overall $5.2 million project that will create 40, full-time jobs.

New Wilmington Borough/ USDA Farmers Market Grant Application

The LCEDC has submitted an application for funding through the USDA’s FMPP program on behalf of New Wilmington EDCOM, Inc., requesting $85,000 to expand the capacity of the Fresh Marketplace at New Wilmington Center. In August, the project was placed on the short list with the final awardees scheduled to be announced in October.

Enterprise Zone Expansions

On behalf of two recent projects, the LCEDC was successful in extending the Lawrence County Enterprise Zone boundaries in Pulaski Township for the benefit of Mitcheltree Brothers Logging and Lumber and in the Borough of Ellwood City to assist with the development of the RWE Realty site.

Mitcheltree Brothers Logging and Lumber

The LCEDC has lent $375,000 toward the purchase and renovation of the former Metcoa property in Pulaski Township from the Lawrence County Enterprise Zone Loan Program. Once the $750,000 project is complete, brothers Kent and Darrell Mitcheltree will utilize a majority of the space to expand their wood-related product line.

2015 Impact Awards

In 2015, the LCEDC honored several businesses and organizations either at the Impact Award ceremony or at other events including: Consolidated Glass Corporation, North American Forgemasters, Portersville PRD, Magnetic Lifting Technologies, New Castle Industrial Railroad, West Central Job Partnership Workforce Investment Board and the Wampum Revitalization Committee.

PEDA Award

Yahoo! Last October, the LCEDC was recognized as the SMALL ECONOMIC DEVELOPMENT AGENCY OF THE YEAR for its collaborative efforts with other local, state, regional and federal organizations to promote economic development. Also cited by the Award Committee, was the LCEDC’s successful completion of numerous economic development projects to help create additional investment and numerous job opportunities in the region.

EPA Project Highlights

A second partnership between the County of Lawrence and the LCEDC is currently administering yet more EPA Brownfield Grants helping our County environmentally-assess Brownfield and possible Petroleum-Contaminated sites. The two grants total $400,000 and are earmarked to help pay for field and lab work performed by the grant contractor, RAR Engineering Group.

Drone Photography

Earlier this year, the LCEDC contracted with 7 Line Media to photograph 13 key industrial sites throughout Lawrence County. The resulting creation of several short video commercials will be used to market the sites and will be embedded on the lawrencecounty.com website.

ARC Award

In July of this year it was announced that the LCEDC would be awarded a $242,000 grant from the Appalachian Regional Commission (ARC). The grant will assist the Corporation with finishing the Millennium Technology Park multi-tenant facility build-out, currently leased by Steelite USA.

2016 Athena Awards

Our very own Linda Nitch was among ten women from Lawrence and Mercer Counties who were honored at the 4th annual Lawrence/Mercer County ATHENA Award Celebration in April of this year! They were all recognized for professional achievements, contributions to their communities and their examples of leadership and mentoring of the next generation of women leaders. The highlight of the evening was the presentation of the Athena Leadership award to Nitch and the Young Professional Leadership Award to Drew McDowell of First Commonwealth Bank.

Fam Tour

The LCEDC will once again be hosting an annual Familiarization Tour with area realtors and site selectors. This year the event will be a breakfast affair and will be held at the offices of the Pittsburgh Regional Alliance located at 11 Stanwix Street in downtown Pittsburgh on October 12th at 8:00 am.

LAWRENCE COUNTY !MPACT AWARDS

Thank You.

The LCEDC’s Board of Directors instituted the !MPACT AWARD to formally acknowledge those businesses and support services who have made a significant impact in Lawrence County by investing their resources toward making Lawrence County a better place to live and work.

Please join the LCEDC’s Board of Directors in honoring the following companies who have made a significant impact in the retail, service and industrial future of our Community:

Castle Mold and Tool Company
Nick’s Auto Body
Penn Power Company
Posies by Patti
Dairy Farmers of America

Posies by Patti

The Borough of Ellwood City and the LCEDC teamed up this year to help fund the expansion project of Posies by Patti, an Ellwood City-based flower and gift retailer, each lending $42,000 from their respective Enterprise Zone loan funds toward the $100,000+ project cost.

Posies by Patti has been in existence since 1991 (It was formerly owned by another Patti!) and was purchased by Patti Kuhn and her husband, Keith, in 2002. Currently located on Lawrence Avenue, the operation has outgrown its current space and has, in fact, had to lease additional space next door. To make room for Patti’s creative genius, the pair purchased a facility that would consolidate the business into one venue at 328 Sixth Street, just one block off of Lawrence Avenue.

Posies by Patti is just one of the retail establishments that make Ellwood’s main street shine. Though employing more than nine people itself, this business and others like it, create Ellwood City’s vibrant retail environment, an important catalyst for attracting larger employers to our county.

The dual loan closing occurred in July and the Kuhns’ expect to be up and running in their new facility sometime in October. We are looking forward to seeing the newly refurbished retail space later this year and be sure to stop in and check out her store the next time you’re in the Ellwood City area.

Great job, Patti and Keith!

Castle Mold & Tool, Inc.

When it comes to making molds for the plastic blow molding industry, Castle Mold & Tool, founded by Joe Smarrelli, Sr., is recognized as an industry standard bearer for its high quality and exceptional service.

Joe got his start decades ago as the long time General Manager at Double R Enterprises in downtown New Castle, also a manufacturing firm in the extrusion blow mold business. For more than twenty-five years – until Double R was sold in 1998 – Joe oversaw the Double R plant under then-owner and good friend, Roger Panella.

Given the opportunity to start his own business, Smarrelli founded Castle Mold & Tool Company in 1999, originally operating out of a small building on the south side of New Castle with a small staff of three. Joe was joined in operations and management by his sons, Joe Jr. and Jonathan Smarrelli. Together they quickly built the business until it literally ran out of room, leading to the 2007 purchase of the former Berner International facility at 3932 Wilmington Road in Neshannock Township. The new 25,000 square foot facility was completely renovated, creating beautiful offices and a clean, efficient work area where all of the machining takes place.

Currently, joined by their Chief Financial Officer, Darrell Carley, the Smarrellis’ are tackling the recent changes in the mold-making industry. One such change is mold cooling optimization. This concept might sound a bit technical, but really all you need to know is that about 80% of the production time in the extrusion, blow-molding process is cooling time and, as we all know, time is money! Castle Mold & Tool is developing cutting edge cooling designs to address their customers’ heat transfer issues.

Another innovation that the company takes advantage of is 3-D Modeling Software. The Smarrellis’ have teamed up with area firms that can produce dimensional mold samples. 3D printed molds are a great option for prototypes and short production runs, ultimately reducing development time and risk to their customers, primarily in the plastics beverage bottling business.

Now employing a staff of more than 25, Castle Mold & Tool runs a shift and a half, Monday through Saturday, serving the mold-making and machining needs of customers worldwide, mainly producing bottles for the dairy, juice, medical and cleaning products industries.

Thank you, Joe Smarrelli, Sr. and Joe Jr. and Jonathan, for your continued investment in Lawrence County’s manufacturing future!

Nick’s Auto Body

A family owned and operated business since 1960, Nick’s has been serving the area’s auto body repair needs for more than 56 years! The company is known for utilizing state-of-the-art technology and products to provide full service collision, paint and mechanical repair work.

At their current location, Nick’s Auto Body operates a 13,800 square foot facility with 21 total bays: eight collision bays, eight paint bays, two computerized frame straightening bays, two world-class, downdraft drive-through spray booths, and a baking oven booth as well as three complete chassis liner frame machines. Every year the management of Nick’s Auto Body invests substantial resources to insure that their facility is on the cutting edge of Auto Restoration Technology.

The LCEDC has helped Nick’s expand the operation to include a new facility just around the corner from their South Mill Street complex. The LCEDC has committed up to $200,000 from its Lawrence County Enterprise Zone Revolving Loan Fund to help business owner, Steve Caldararo, purchase and renovate the nearby Cally Club located at 211 East Division Street. The total project cost has been estimated at approximately $400,000. Once complete, Steve will be moving a portion of the company’s painting operation to that location. It, too, will run environmentally friendly and worker safe; Nick’s recycles 100% of all its paints, thinners, anti-freeze, freon, and oils.

This project will continue the positive impact that Nick’s Auto Body has made on the south side of New Castle, acting as a catalyst for continued growth in an economically-challenged portion of the City. We thank Mr. Caldararo for his continued commitment and investment in our community!

Dairy Farmers Of America

The Dairy Farmers of America’s (DFA) facility in Wilmington Township has expanded! DFA, which is the largest milk marketing cooperative in the United States, recently completed a new construction and land acquisition project at their location on Route 208 at Route 18.

The LCEDC and the County of Lawrence assisted DFA in acquiring a grant from the Commonwealth of PA’s Redevelopment Assistance Capital Program (RACP) from which they were awarded a $2.5 million grant to help fund the project.

The Wilmington Township plant produces cheese from milk processed at their facility and other DFA facilities in the region and employs 214 people. The RACP grant assisted directly with the construction of a new milk intake/receiving facility, water silo room and refrigeration building, expanding their 134,000 square foot Italian-style cheese and dry whey manufacturing plant. DFA matched the funding with $2.5 million in private investment.

This construction project is part of a larger, multi-year $35 million plan to expand and modernize DFA’s Wilmington township plant in order to ensure its competitiveness and longterm economic viability. As a result of this grant funding, DFA was able to keep the operation in Pennsylvania which may have otherwise relocated to Michigan. In addition, as a result of this project, DFA will also retain approximately 299 employees at seven other Pennsylvania facilities.

DFA’s eye to the future along with careful financial management has allowed the company to grow and prosper for its cooperative members. During the DFA annual meeting in March, officials reported an overall net income of $94.1 million. In 2014 it was $43.1 million. The increase is attributable to strong performances from DFA’s commercial operations and affiliates, as unit sales were up and margins improved. In 2015, DFA directed the marketing of 62 billion pounds of milk for both members and others, which represented about 30 percent of the total milk production in the nation.

Penn Power

Making a major impact this year on the reliability of the electrical service to our community, is none other than Western PA’s very own Pennsylvania Power Company!

Penn Power is nearing completion on work of approximately $12 million in additional electrical system projects designed to enhance service reliability for its 160,000 customers. The work includes rebuilding electric lines, engineering work on new substations, and installing automated and remote control devices – all designed to help restore service faster, along with minimizing the number of customers affected, if an outage does occur.

These projects were identified in Penn Power’s five-year Long-Term Infrastructure Improvement Plan that was approved earlier this year by the Pennsylvania Public Utility Commission. Ultimately, this special program will result in an additional $53 million being spent through 2020 on targeted distribution infrastructure enhancement projects in the Penn Power service area.

“The work is designed to benefit customers by complementing the projects we already do each year to enhance the reliability of our electric system,” said Randy Frame, regional president of Penn Power. “Whether it’s upgrading existing circuits or installing ‘smart’ equipment that can be operated remotely, our goal is to make our system the best it can be when it comes to providing reliable service.”

The 2016 Penn Power projects impacting our area include:

»Spending approximately $5.2 million to add new connection points where circuits can be tied together, along with installing new sectionalizing devices such as fuses and automated switches, to help limit the number of customers affected when an outage occurs. Much of the work in 2016 will occur in the Clark, Cranberry, Mercer, McDowell and New Castle areas.

»Rebuilding distribution lines in the Hartstown and New Castle areas and beginning engineering work on two new substations scheduled to be constructed in 2017. The cost of these projects is $3.9 million and they are designed to enhance the flexibility and durability of the system.

»Installing automated and remote control devices in the Clark, Cranberry and New Castle areas at a cost of $1.3 million. This equipment allows dispatchers to pinpoint fault locations, reducing the time it takes to restore power after an outage occurs.

»Replacing 170 wooden poles across Penn Power’s service area to increase system resiliency. This work will cost $800,000.

Lawrence County Economic Development Corporation

Plaza South, Suite 100

100 East Reynolds Street

New Castle, PA 16101

724-658-1488 Phone

724-658-0313 Fax

info@lawrencecounty.com

Lawrence County is located at the core of North America’s largest concentration of population and business markets. Strategically positioned at the intersection of Interstate 80 (a major East/West interstate system), Interstate 79 (a major North/ South system), Interstate 376 and Interstate 76 (the Pennsylvania Turnpike), Lawrence County is the ideal location for businesses seeking easy access to:

• 40% of the U.S. population and purchasing power

• More than 60% of Canada’s population

• 45% of U.S. manufacturers

• 40% of the nation’s domestic trade and service industries

Our Mission

The Lawrence County Economic Development Corporation (LCEDC) is a private, non-profit organization dedicated to enhancing the economy and the quality of life in Lawrence County through the delivery of public/private resources for the purpose of expanding and retaining employment opportunities for the citizens of our community.

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