REAL PEOPLE REAL JOBS
Tompkins County Area Development
2010 Annual report To the Community
REAL PEOPLE REAL JOBS Since 1964, TCAD has continually worked for the benefit of the community. Through the changes in Tompkins County’s economy — its ups and downs and the transformation of key industries — TCAD’s mission has remained clear: create good jobs for local residents.
We want to take this opportunity to introduce you to four people featured in our annual report. They all work for businesses or organizations TCAD has assisted. These are four real people and four real jobs. With an average nonmanagerial wage of $19.00 an hour for the jobs created by our projects, TCAD takes its commitment to the creation of jobs that elevate the quality of life and sustainability of our community seriously. Our Vision: A flourishing economy with exciting, innovative firms that inspire and attract a talented workforce. Our Mission: TCAD is dedicated to building a thriving and sustainable economy that improves the quality of life in Tompkins County by fostering the growth of business and employment.
2010 Annual report To the Community
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Report from the chairman Charlie Trautmann Chairman TCAD Board of Directors One of the pleasures of serving as board chair has been the opportunity to get inside a wide spectrum of Tompkins County Area Development activities – an opportunity that comes to very few individuals. From this vantage, I would like to share a few thoughts, with the hope that you’ll see what a jewel this organization is and how much the remarkable quality of life in Tompkins County benefits from TCAD’s efforts. Founded in 1964 by a group of forward-thinking community leaders, TCAD has grown with the times: adapting to the needs of the County, spearheading initiatives such as the Air Service Board and the Finger Lakes Entrepreneurs Forum, and constantly looking for new ways to advance our vision of: A flourishing economy with exciting, innovative firms that inspire and attract a talented workforce. The past year, despite a general downturn in the state and federal economies, Tompkins County has nevertheless seen some remarkable local successes, which are documented in the pages that follow. From creating exciting start-ups to fostering tourism infrastructure to growing our physical and workforce infrastructure, TCAD is positioning Tompkins County for success well into the future.
The past year, despite a general downturn in the state and federal economies, Tompkins County has nevertheless seen some remarkable local successes.
TCAD’s success begins with its people. Our board is both talented and diverse, with active members from the business, education, government, and non-profit sectors of our community. Our staff is stronger than at any time in TCAD’s 46-year history, with deep expertise in finance, strategic planning, and many other areas necessary to carry out our mission of building a thriving and sustainable economy that improves the quality of life in Tompkins County. Our president is a leader among leaders of New York’s other county economic development agencies and is increasingly well positioned to advocate for our needs in Albany as well as here at home.
You may be familiar with the expression “No money, no mission.” TCAD has been successful in actively seeking funding partnerships from a variety of sectors within our economy to ensure its programmatic health and ability to serve its mission. The result of these efforts is that TCAD is an efficient organization that leverages its resources extremely well and delivers much more in benefits to our community than its modest operating budget might suggest. I am optimistic about TCAD and its ability to enhance our business climate, our community, and our quality of life. To all who have brought us to this point, I extend a heartfelt “thank you!” and my hope that together, we will continue our success in the coming year.
Report from the president Michael Stamm TCAD President Tcad’s approach to economic development and job creation has always been to utilize local resources first to meet the needs of our customers and only reach out to State and federal programs as an option of last resort. Locally funded or managed programs are invariably more nimble and responsive while State and federal programs often cannot react at the “speed of business.” By the time promised assistance arrives from Albany or Washington, the opportunity the business was pursuing may be long gone. Yet it seems in the last year or so, TCAD’s interaction with Albany and Washington has increased dramatically. In the case of Albany, we are working with our colleagues to encourage State lawmakers to do the right thing: to extend the Empire Zone program beyond its June 30, 2010 expiration, to allow Industrial Development Agencies to operate without State imposed wage mandates, and, more proactively, to ensure that all candidates for governor understand the importance of hiring an experienced professional to run the State’s economic development programs. During the short-lived Spitzer regime, the State wisely, and somewhat unexpectedly, hired one of the nation’s best and brightest economic developers. Unfortunately, he has long since moved on.
Whether working with local, regional, State or federal economic development programs TCAD’s focus remains the same: creating good jobs for local residents.
Our relationship with Washington and federal programs has evolved quickly and positively. In the past, because of low unemployment and skewed economic data, Tompkins County either was not eligible for many federal economic development programs or could not compete with more distressed areas of the country for scarce federal dollars. But now the proverbial stars are much better aligned. The federal government is aggressively seeking to support companies involved in cutting edge research and product development in areas they deem to be of critical national importance, like battery technology and the ubiquitous “green economy” technologies. With Cornell’s vast research & development programs combined with our community’s always-vibrant network of entrepreneurs, large sums of federal funds are flowing our way. TCAD will continue to facilitate the relationships between local companies and the right federal program or official. Whether working with local, regional, State or federal economic development programs TCAD’s focus remains the same: creating good jobs for local residents. Greatly influenced by our own local elected officials, TCAD’s economic development strategies are widely recognized as being both progressive and yielding a very high return on investment of scarce resources. The value of incentives delivered per job created is low while, conversely, the average wage of the jobs created is very high. More importantly, these jobs are created by businesses committed to Tompkins County and its unique quality of life.
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TC A D ’ S HI G HLI G HT S & A CTI V ITIE S Revolving Loan Funds TCAD has managed revolving loan fund programs since 1989, offering relatively high-risk loans via flexible terms to local companies that have the documented potential of creating good jobs. Since then we have loaned $1,666,000 to 51 companies that, in turn, created 874 new jobs. In 2008, new grants significantly increased TCAD’s loan funds, allowing us to expand this successful program. In the last year, TCAD has made loans valued at $537,000 to: • Sunbeam Candles • Novomer • Mia Restaurant and Noodle Bar • Adenios • e2e Materials and Plantations Building Redevelopment As our economy evolves to one with more and more high tech startups, TCAD’s loan fund programs have evolved as well; we now take equity positions in companies along with debt to cover the relatively higher risk of lending to companies that have yet to achieve positive cash flow.
Business Retention Visits While attracting new companies to a community is what most people define as economic development, new job creation usually comes from companies or entrepreneurs already in a community. That is why TCAD visits key local employers on a systematic basis. These visits provide us with an early opportunity to help companies with expansions or with the challenges they may face. Unlike most economic development agencies, we collaborate with our colleagues at the Workforce Investment Board and other community-based agencies on these visits.
Since 1989 TCAD has loaned $1,666,000 to 51 companies that, in turn, created 874 new jobs.
Membership Campaign TCAD’s revenue model is based on a balanced mix of funding from membership, fee-based income and local government support. While the reliance on fee-based income has risen in the last few years, our membership income, even during these tough economic times, has been surprisingly stable, a testament to the value local employers place on TCAD and our activities. Our next threeyear membership campaign will be launched in 2012. In 2009, the Hangar Theatre received a $100,000 Tourism Capital Grant award toward its $3 million renovation project. The improvements will contribute to allowing year-round productions at the theater.
HI G HLI G HT S & A CTI V ITIE S ( CONTINUED )
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Industrial Development Agency TCAD has managed the IDA since 1990. From then to now, the IDA has played a key role in 82 projects valued at $689 million and that created 2,600 new jobs. In addition to bringing potential projects to the IDA board of directors for review, TCAD devotes substantial time to monitoring State legislation impacting IDAs and ensuring that our IDA complies with very complex and often ambiguous laws. With the weak economy, deal flow to the IDA has been slow. In addition, the State allowed the legislation to expire that enables IDAs to assist not-for-profit projects, usually a very large component of our portfolio. As a result, recent activity was limited to 2 projects valued at $20 million and the refinancing of a past not-forprofit project valued at $70 million.
Real JOBS
Real people
TCAD has managed the IDA since 1990. From then to now, the IDA has played a key role in 82 projects valued at $689 million and that created 2,600 new jobs. Back in 1995, TCAD provided administrative support to a group of local entrepreneurs attempting to start a networking organization for high tech start-ups. Since then, the Finger Lakes Entrepreneurs Forum has become a critical resource for networking and information for new or growing small businesses in the region. The Steering Committee of FLEF recently asked TCAD to once again provide administrative support to the organization.
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Finger Lakes Entrepreneurs Forum
I like the family-friendly atmosphere at Kionix. Family always comes first. I’ve been with Kionix for over five years. Everyone has always been so nice, and the pay and benefits are great.
Torie Woodcock Technician for Quality Assurance and Failure Analysis, Kionix
Marketing & Public Relations TCAD continues to promote the importance of economic development and job creation activities to local stakeholders as well as to our State and federal elected representatives. This has become even more important as government funding and community resources become scarcer. Because of our unique in-house capabilities, we are now able to offer public relations assistance to key customers including organizing press conferences and ribbon cutting ceremonies. And we continue to pursue business attraction, collaborating with Cornell University in a marketing campaign targeting technology-based companies that have productive relationships with Cornell in place.
HI G HLI G HT S & A CTI V ITIE S ( CONTINUED )
Tourism Capital Grants On behalf of the County, TCAD manages a grant program to support capital projects at local tourism destinations. In 2009, the Tourism Capital Grants program awarded over $340,000 to: • Kitchen Theatre • Cayuga Nature Center • Hanger Theatre
• Ithaca Motion Picture Project • Ithaca Children’s Garden
This includes multi-year grants to three major capital projects — Cayuga Nature Center, Hangar Theatre, and the Kitchen Theatre.
Warren Road Sewer
Real people Real jobs
TCAD staff worked with the Town of Lansing to facilitate a $2.5 million municipal sewer extension to serve businesses in the Warren Road Business Park where seven businesses with over 300 employees are located. Further business expansion in the Park depends on municipal wastewater collection. All local and State approvals were secured, and design and construction documents completed. TCAD successfully applied for a $400,000 grant on behalf of the Town to reduce costs to the businesses. Construction should begin in the summer of 2010.
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Tompkins County Development Corporation
I moved to Ithaca to work at the Kitchen Theatre Company, always certain that working with Rachel Lampert, the Artistic Director, would be challenging, exciting . . . and fun! It’s been all that and more. I treasure living in a community that is so supportive of the arts, and working with such an enthusiastic and dedicated staff. And to be here as the Kitchen moves into a new building and a new era is yet another bonus.
Stephen Nunley Managing Director Kitchen Theatre Company
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On January 31, 2008, our IDA’s ability to issue tax exempt bonds for the benefit of local not-for-profit employers expired as the State failed to reenact what is commonly called Civic Facility legislation. Before that, the IDA had issued $461 million in bonds for 24 projects. In response, TCAD encouraged the Tompkins County Legislature to create a new legal entity that could assist our local not-forprofit community. Now TCAD manages the Tompkins County Development Corporation and is actively marketing it to our past users of Civic Facility bonds. The TCDC has all of the authority the IDA had and provides a very cost effective and responsive alternative to State issuers of tax exempt bonds.
HI G HLI G HT S & A CTI V ITIE S ( CONTINUED )
Water/Sewer Infrastructure TCAD took the lead on managing a study of county-wide water and sewer infrastructure working collaboratively with the Tompkins County Council of Governments — representing sixteen local municipalities — as well as County government. The study documented and evaluated existing water and sewer infrastructure, and prepared conceptual water and sewer plans with a focus on the rural centers. The study is intended to help municipalities achieve cost savings and increased efficiency through shared services and increased density of housing development. It is intended to support key economic goals of development of new housing supply and revitalization of commercial centers to reduce the cost of doing business and create a more competitive economic environment in the County.
Workforce Strategy In 2006, TCAD’s Economic Development Strategy identified “improving workforce skills” as one of three key economic development goals for 2007 to 2011. Soon after, it became clear a major strategic planning effort was required — one that would reach beyond the staff efforts of workforce agencies to engage all workforce development stakeholders. TCAD and the Workforce Investment Board partnered over two years to create a strategic plan for workforce development in Tompkins County. The Tompkins County Workforce Strategy provides direction for a coordinated and effective response to urgent talent issues stemming from rapid economic globalization, integration of technology into occupations, and dramatic demographic change. The Key Goals are: 1. 2. 3. 4. 5. 6.
Increase the number of work-ready, basic-skilled workers Retain and attract more young adults Prepare for the wave of baby-boomer retirements Facilitate and enable the recruitment of workers for specialized occupations Reduce underemployment and its accompanying underuse of talent Increase the workforce system’s capacity to manage near-term challenges and opportunities
TCAD and the Workforce Investment Board will continue to work hand in hand going forward to create great career opportunities and skilled talent here in Tompkins County.
State & Federal Grants TCAD has become much more active in acquiring grants from the State and federal government to help local job creating businesses or for critical community infrastructure projects. Our role may be as simple as organizing meetings or acting as a conduit for the flow of funds from Washington or Albany. In other situations we may identify a need, author a grant application and manage a project. Recent examples of this important type of work include:
• Primet Precision Materials • BorgWarner MorseTEC • C&D Assembly • RPM Ecosystems
• Shared Municipal Services Initiative grant for preparation of the Countywide Intermunicipal Sewer and Water feasibility Study — $69,074 from NYS Department of State • $66,000 toward the Tompkins County Workforce Strategy from NYS Empire State Development for a regional labor market study.
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Empire zone Even though Tompkins County was one of the last counties in the State to receive an Empire Zone, under TCAD’s management, our Zone program has been extremely successful since its inception in 2006. Overview of the Empire Zone’s Activity Since 2006 n u m b e r o f b u s i n e s s e s c e rt i f i e d J o b s c r e at e d
ca p i ta l i n v e s t m e n t s
47 175 $58 million
Even though Tompkins County was one of the state’s last counties to receive an Empire Zone program, under TCAD’s management, our Zone program has been extremely successful.
This past year was tumultuous for the Empire Zones Program. The State Legislature implemented a new review and recertification process for all certified business. Fortunately, all the businesses in our zone passed the review and were recertified to continue participating in the program. The State Legislature also implemented changes to the tax incentives offered and the sunset date was moved up a year to June 30, 2010. Recent activity is summarized below: Business Performance (2008) T o ta l B u s i n e s s e s C e rt i f i e d a s o f 1 2 / 3 1 / 0 8 J o b s c r e at e d i n 2 0 0 8 T o ta l J o b s
Capital Investments in 2008
Tax Credits/Exemptions Received
47 151 2,441 $27,768,937 $636,000
The State collects data on performance after the fact. In 2009 the 2008 tax year data was collected and is reported on the chart to the left.
Mia Restaurant and Noodle Bar will redevelop the Plantations Building on the Commons.
E m p i r e z o n e ( CONTINUED )
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In 2009, applications from 4 businesses were processed projecting 155 new jobs and $25 million in capital investments over the next 3 years. The businesses that were Zone certified are:
Real JOBS
Real people
• Hotel Ithaca • Hy-Gear Motorsports • Mitegen • Novomer
Empire Zone Capital Credits Program The Empire Zone Capital Credits Program supports projects undertaken by non-profit organizations in the Zone. Donors to non-profit capital campaigns are eligible to receive a 25% tax credit on donations over $1,000.
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Five not-for-profit projects raised $731,321 in donations for bricks and mortar projects in the Empire Zone. $182,830 in State tax credits were delivered to 143 donors. Projects were as follows:
I’d worked for twelve years in Ithaca before taking a position in California, moving my wife and children across the continent. Just over three years later we came back to Ithaca for the friends, culture, seasons, and university town we’d left behind. We took a ‘leap of faith’ moving back without a job in 1989 and have never regretted it. I’ve now been with Transonic for twenty years in the Sales & Marketing Department. For the last seven years I’ve been OEM Product Manager, working with customers plus our engineering and manufacturing people to customize, sell and deliver our flow measurement technology. We call this OEM (Original Equipment Manufacturing) market “Transonic Inside” in which customers build our product into their medical devices. It is a real kick working with customers, being the contact point for engineers, managers and quality staff whether in Michigan, Minnesota, Munich or Osaka. It can take months of meetings and exchanges to seamlessly integrate the products in a way that enhances the final device but it is incredibly rewarding when it comes together.
7th Art Cinema (Cinemapolis) Family and Children’s Service – Phase I Family and Children’s Service – Phase II The Finger Lakes Wine Center The Kitchen Theatre
Novomer is an emerging sustainable chemistry company pioneering a family of high performance, environmentally responsible polymers and chemical intermediates
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Doug Collins Manager, OEM Products Transonic Systems Inc.
Shai Enyav
TC A D B o a r d o f d i r e c t o r s Officers
* Charlie Trautmann – Chair Executive Director, Sciencenter * Greg Hartz – Vice Chair President & CEO, Tompkins Trust Company * Andy Sciarabba – Secretary/Treasurer Managing Member, South Hill Business Campus, LLC
Directors
Dave Anderson Director of Operations, BorgWarner Morse TEC Don Barber Supervisor, Town of Caroline Larry Baum President, The Computing Center James Brown Executive Director, United Way of Tompkins County Will Burbank Tompkins County Legislature Lara Cima Economic Development Manager, CCTEC/Cornell University Philly DeSarno Deputy Director of Economic Development, City of Ithaca Tony Eisenhut Managing Director, KensaGroup Greg Galvin CEO & President, Kionix *Howard Hartnett Administrative VP, M&T Bank / TCAD Past Chair Carl Haynes President, Tompkins-Cortland Community College Steve Johnson Vice President Government & Community Relations, Cornell University Susan Johnston President & General Manger Cayuga Radio Group Tom Kurz President, Advion BioServices *TCAD Executive Committee Members
Tom LiVigne Director, Cornell Real Estate Laurie Linn President, Communiqué Design & Marketing Dave Marsh Business Manager, Laborer’s Union Local 785 Ed Marx Commissioner of Planning, Tompkins County Julia Mattick Executive Director, Workforce Investment Board Jean McPheeters President, Tompkins County Chamber of Commerce Glenn Morey Supervisor, Town of Groton Carolyn Peterson Mayor, City of Ithaca *Mary Opperman Vice President Human Resources, Cornell University Martha Robertson Tompkins County Industrial Development Agency Carl Sgrecci Vice President for Finance and Administration, Ithaca College Herman Sieverding VP of Real Estate Development, Integrated Acquisition & Development Michael Stamm President, TCAD
Real jobs
Real people
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I’m a Finger Lakes Native and the area holds a lot of meaning for me. I worked at a few tech companies before coming to Primet. Having the opportunity to start with a business from the ground up at Primet has been extremely rewarding. We have a unique technology and are contributing to green tech and sustainability. This is extremely important to me and fits into my personal philosophy.
Lynn Thirion Senior Process Technician Primet Precision Materials, Inc.
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B o a r d ( CONTINUED ) & TC A D s t a f f
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And thank you to our outgoing board members Steve Golding Executive Vice President for Finance and Administration, Cornell University Janet Hawkes Consultant Steve Lauzier Director Cornell University Real Estate Alan Paau Vice Provost, Tech Transfer and Economic Development, Cornell University Bob Pass Reg. Mgr. Comm Outreach & Development, NYSEG Art Pearce Consultant
Left to Right: Michael Stamm, Heather Filiberto, Martha Armstrong, Ina Arthur, Stephen Kimball
TCAD Staff Michael Stamm President Martha Armstrong Vice President and Director of Economic Development Planning Ina Arthur Office Manager Heather Filiberto Director of Economic Development Services and Empire Zone Coordinator Stephen Kimball Director of Marketing and Development
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TC A D M e m b e r s Advion Biosciences All-Mode Communications Alternatives Federal Credit Union Audrey Edelman & Associates Bond, Schoeneck & King BorgWarner MorseTEC C&D Assembly Capsulated Systems Cargill Cayuga Medical Center at Ithaca Cayuga Radio Group Cayuga Venture Fund CBORD Group CFCU Community Credit Union Chemung Canal Trust Company Ciaschi, Dietershagen, Little, Mickelson & Company City of Ithaca Communique Design Community Foundation of Tompkins County Community Recreational Center Community Science Institute Computing Center Cornell Research Foundation Cornell University Cornell University Real Estate Datapoint Labs Child Development Council DiMarco, Abiusi & Pascarella Dryden Mutual Insurance Egner Architectural Associates Elmira Savings Bank Emerson Power Transmission F&T Distributing Family & Children’s Services of Ithaca
Finger Lakes Technologies Group First National Bank of Dryden First National Bank of Groton Franziska Racker Centers Gateway Plaza Associates Global Phoenix Technologies Solutions Goodrich/ISR Systems Harris Beach Haynor Hoyt Helen Saunders Holt Architects Hunt Engineers Hybrid Silica Technologies Incodema Integrated Acquisition & Development International Education Exchange Services Iron Design Island Health And Fitness Ithaca College Ithaca Journal Ithaca Tompkins Regional Airport Kendal at Ithaca Kensagroup Kionix LaChase Construction Lansing Instrument Longview an Ithacare Community M & T Bank Mariette Geldenhuys MEGA Metler Toledo/Hi-Speed Checkweigher Miller Mayer MPL NYSEG Ongweoweh Optigen
Paolangeli Contractors Park Foundation Precision Filters Primet Precision Materials Schickel Construction Schlather, Stumbar, Parks & Salk Sciarabba Walker & Co Sciencenter Security Mutual Insurance Shops At Ithaca Mall South Hill Business Campus Sprague & Janowsky Tompkins County Chamber Of Commerce TG Miller Therm Tompkins Cortland Community College Tompkins County Tompkins County Industrial Development Agency Tompkins Insurance Agencies Tompkins Trust Company Town of Caroline Town of Danby Town of Dryden Town of Groton Town of Ithaca Town of Lansing Town of Ulysses TransAct Technologies Transonic Systems Trebloc Development Corp. Triad Foundation True Insurance United Way of Tompkins County Vanguard Printing Vector Magnetics Wegmans William George Agency
Balance Sheet
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ASSETS 2009 C a s h a n d ca s h e q u i va l e n t s
$ 109,871
R e s t r i ct e d ca s h a n d ca s h e q u i va l e n t s
$ 322,613
T e m p o r a ry I n v e s t m e n t
$ 157,021
A cc o u n t s r e c e i vab l e & p r e pa i d i t e m s
$ 8,675
P l e d g e s r e c e i vab l e
$ –
L o a n s a n d m o rt g a g e s r e c e i vab l e
$ 148,465
Subtotal
$ 746,645
P r o p e rt y a n d e q u i p m e n t, at c o s t
$ 46,010
L e s s acc u m u l at e d d e p r e c i at i o n
$ (35,076)
Total Assets
$ 757,579
LIABILITIES & NET ASSETS
A cc o u n t s payab l e & acc r u e d e x p e n s e s
$ 13,550
Deferred membership income
$ 1,250
R e v o lv i n g l o a n d e bt
$ 29,927
Total liabilities
$ 44,727
U n r e s t r i ct e d
$ 626,949
T e m p o r a r i ly r e s t r i ct e d
$ 85,903
R e v o lv i n g l o a n - t e m p o r a r i ly r e s t r i ct e d
$ –
Total net assets
$ 712,852
Total liabilities and net assets
$ 757,579
2009
Tompkins County Area Development
200 East Buffalo Street, Suite 102A Ithaca, New York 14850 607.273.0005 www.tcad.org Annual Report designed by: Louis Johnson, irondesign.com, photography by Sheryl D. Sinkow Photography (unless otherwise noted), printing by Arnold Printing.
Paper used is made with 10% post consumer waste and natural fiber from sustainable forests.