The CIC part 6 – top 25 accomplishments (2009)

I know this is skipping ahead, but I have this one done, so I’m going forward with it.  The other two (parts 4 and 5) fall between the development years and present (2001-2006; 2007-2008)

Marketing & Communication

OEDA Award

OEDA Best Economic Development Marketing Award

1. Started SpringfieldEdge economic development blog with information on business, industry, resources, projects, properties, events.  Posted 175 articles online.  Received over 8,000 views.

2. Uploaded over 20 business and economic development PowerPoint presentations, 100 videos, and 1000 pictures to the Internet.  Received almost 10,000 views.

3. Promoted online content through Twitter, Facebook, and LinkedIn.  Gained over 3,300 subscribers.  Sent over 2,500 messages via these platforms.

4. Received press coverage in over 20 articles in print and online about activities and projects.  Arranged press conference for Sutphen project.  Assisted in PR for two other projects.

5. Created and distributed seven SpringfieldEdge eNewsletters to over 500 subscribers.

6. Received Best Economic Development Marketing award from the Ohio Economic Development Association.

Projects & Incentives

7. Assisted and tracked over 40 larger economic development projects involving over $89 million in new investment, 1200 new jobs, and almost 250,000 new square feet of construction.

8. Received recognition by Site Selection magazine as the #2 metro area in the US in the 50,000 to 200,000 population bracket for the number of large, private economic development projects.

9. Assisted Morgal Machine receive a Job Creation Tax Credit for their $2.3 million expansion.

10. Assisted Code Blue obtain an incentive package worth over $3 million and helped manage the project which may result in over 300 new, high-paying jobs in downtown Springfield.

11. Planned, promoted, and facilitated a seminar which helped seven existing companies obtain over $170,000 in federal training funds. 

12. Led and facilitated the creation of an Enterprise Zone in the City of New Carlisle.

13. Administered the ProCure site and building database and responded to 42 state leads, 5 regional leads, and over 80 local leads.

Development & Grants

14. Facilitated and advocated on behalf of over ten community projects seeking over $25 million in federal earmarks.

15. Obtained $1 million federal water & sewer infrastructure grant (594) for the new 200-acre PrimeOhio II Industrial Park as well as $500,000 in state/regional grant funds for infrastructure (Shovel Ready Funds).

16. Finalized Development Agreement with and obtained unanimous support from Springfield Township for the PrimeOhio II Industrial Park.

17. Completed the PrimeOhio drainage project, resolving a long-standing problem for the County’s largest industrial park.

18. Partnered with the City of Springfield and Springfield Township to secure local and district approval for funding the installation of streetlights and improvement of roadway through local funds and an OPWC grant.  Worked with Springfield Township to improve existing roadway.

19. Led the planning process for the creation of Phase I of the new $2+ million Center City Park, to be located in downtown Springfield. 

Retention & Expansion

20. Exceeded goals for HITS existing business outreach program (retention & expansion program).  Contacted one-on-one over 1,100 operations, discussed growth plans with over 750, and directly assisted almost 300.  Had 350 face-to-face meetings with over 160 businesses.

21. The HITS program received the Ohio Society of Association Executives‘ highest award, the Achievement Award, in recognition of its innovation and excellence.

Professional Connections

22. Coordinated community visits by representatives of the Ohio Department of Development’s Strategic Business Investment, Global Markets, and Entrepreneurship and Small Business divisions as well as over five other federal and state agencies to promote community and develop relationships.

23. Served on Communications Committees for the Ohio Economic Development Association as well as the Economic Development Institute.  Served on the Incentives Review Committee assembled by the Ohio Dept. of Development.

Research

24. Conducted biannual Wage & Benefits Survey, working with Wittenberg University to obtain, process and analyze data from 140 companies representing over 12,000 employees. 

25. In partnership with FirstEnergy, produced first IMPACTFactor+ economic development impact analysis, demonstrating that the projects in 2009 produced an additional 200 spinoff jobs, $1.5 million in real estate taxes, $750,000 in new local sales tax, $340,000 in municipal income tax.  Total new local and state taxes generated in 2009: over $3 million.

The CIC part 3 – the developer years (1980-2002)

 The series – what is the CIC all about?

PrimeOhio Corporate Park

PrimeOhio Corporate Park - Aerial

This is the third in a series explaining the role and accomplishments of the Community Improvement Corporation of Springfield and Clark County (CIC). The first post talked about the four major areas of accomplishment, as a big picture overview, from 1970 to present. The second post highlighted one of those ares that was the focal point of the CIC from 1970 to 1985, financing. In particular, it looked at the CIC’s role in Industrial Development Bonds.

The focus of this post – PrimeOhio, KTK, and other development

This post will look at the key role the CIC had–under the leadership of Larry Krukewitt (Chamber President and CIC Secretary/Treasurer), Martin Levine (CIC President), Jim Foreman (CIC President), and many others–to develop industrial parks and spec buildings. In the last decade, the CIC had a key role in the development of the Nextedge Applied Research + Technology Park and helped also with the development of Airpark Ohio, but it was not the lead developer. Nextedge and Airpark were the primary parks that came to fruition 2002 to 2009.  

Results – 500 acres, 200K sf spec, 2M sf constructed, 3000+ jobs

Overall, the CIC has developed almost 500 acres of industrial land and constructed over 200,000 square feet of speculative industrial and office space as well as the 2 million square foot Navistar plant.  This development alone has resulted in over 3,000 jobs to the greater Springfield area.

The beginning of a new developer era?

The CIC has been working, though, this past decade on developing the next park. It has spent time and resources on PrimeOhio II, Park I-675, and Park 235. Construction, though, is about to begin on infrastructure for PrimeOhio II this year, which will usher in a new developer era for the CIC, and it’s exciting because it will be the first large-scale industrial park available on Interstate 70 in Clark County. In addition, at least one spec building is scheduled to be constructed by the CIC as well in 2010, indeed a new area of activity. Of course, in 2009, the CIC also resolved the $600K+ drainage project at PrimeOhio, worked with others to get roadwork and streetlight improvements in PrimeOhio, and secured $1.5 million in federal funds towards the PrimeOhio II project. So, one could say 2009 was the first year of the second developer era.

Activities list

Here is a list of the development activities of the CIC during these years:

Spec Building (1980) – $500K, first speculative building to be built by CIC. Was built in the then new Springfield Industrial Park (developed 1976 by City with CIC involvement) to attract industry. Sold April 1980 to Bobby Fischer Distributing.
Spec Building 2 (1981) – next building built by CIC in Springfield Industrial Park (completed November 1981, sold September 1983).
International Harvester (1982) – CIC finances, packages, and builds $27M new assembly plant for IH and leases back to company, thousands of new jobs.
PrimeOhio Corporate Park (1983) – CIC begins development of 400-acre industrial park.
KTK Industrial Park (1984) – CIC develops new 40-acre industrial park on north side of County near IH.
Spec Building 3 (1984) – CIC builds third speculative industrial building in KTK Industrial Park.
PrimeOhio (1985) – CIC exercises options and purchases land for park, construction begins.
PrimeOhio (1986) – Grand opening and dedication of park, announcement of Teikuro building first facility in park.
Spec Building 5 (1986) – CIC builds new spec office building in PrimeOhio.
PrimeOhio (1988) – created PrimeOhio Owners Association, further extended infrastructure into the park, purchased additional property.
• Airpark Ohio (1991) – CIC works with City on development of new industrial park at airport.
Springfield TIF (1991) – worked closely with City too get Tax Increment Financing District in place downtown.
Spec Building 5 (1992)Emro Marketing had leased and moved into larger facility off-site. Sold to FH Bonn for $950K.
Spec Building 6 (1994) – CIC constructs new facility in PrimeOhio and leases to the company. $3.5M project.
Enterprise Zone (1995) – CIC creates Enterprise Zone at PrimeOhio to support GFS project.
PrimeOhio (1996) – CIC purchases 82 additional acres to expand the park.
.• Spec Building 6 (2000)Benjamin Steel purchases building at cost.
Miller-Valentine Building (2001) – Miller-Valentine builds 350,000 square foot facility for Vining/O’Cedar headquarters on PrimeOhio expansion ground. Park full.
Southwest Landmark (2002) – CIC sells ground at Producer’s Livestock site to Southwest Landmark.
CEDA (2002) – CIC works with Springfield Township and City of Springfield to get a Cooperative Economic Development Agreement. (CEDA) passed for PrimeOhio, whereby municipal income tax would be levied and shared.

The CIC part 1 – accomplishments (1970-present)

FH Bonn's facility

FH Bonn's facility - first speculative building the CIC built in the PrimeOhio Corporate Park it developed

I am in the process of obtaining 501 (c) (3) status for the Community Improvement Corporation, and just finished a response to follow-up questions they had about our organization.  Some of what I uncovered is great material.  So, I thought I would share some of it.

The question from the IRS

1. The Plan for Springfield and Clark County Economic Development indicates that “The purpose of the Community Improvement Corporation of Springfield and Clark County is for advancing, encouraging and promoting the industrial, economic, commercial and civic development of the City of Springfield and Clark County, and to that end, to attract and help locate new business and industry which gives promise of being sound factors in the areas of growth stability and prosperity of business and industry now operating in such area and thus provide a higher standard of living and a larger portion of happiness, health and security.”

a. Since this plan was put into effect, what has the Community Improvement Corporation of Springfield and Clark County accomplished?

The response

Since 1970, the Community Improvement Corporation of Springfield and Clark County (“CIC”) has been directly or indirectly responsible for the creation or retention of over 10,000 jobs in the Clark County area and fixed asset investment of over $1.3 billion in new facilities, equipment, and infrastructure.  It has accomplished this through (i) project financing, (ii) industrial park and facility development, (iii) site selection, and (iv) retention and expansion.

Financing

Probably the most impactful financing ever structured by the CIC was the 1982 International Harvester (now Navistar) package, where the CIC financed a new $27 million facility for the truck manufacturer and leased it back to them for $236,000 per month.  The structure involved $18 million in local bank and program funds as well as a $9 million Ohio Department of Development direct loan.  Springfield was in competition with Ft. Wayne, Indiana for the project and the CIC helped “seal the deal,” saving thousands of jobs and allowing for the company’s expansion.  Navistar is, still to this day, a major employer in our community.

Industrial park + facility development 

The best example of industrial park and facility development is the PrimeOhio Corporate Park, a 400-acre park located in the northeast quadrant of the Ohio State Route 41 and Interstate 70 interchange, which the CIC began developing in 1983.  In 1985, it exercised options and began infrastructure construction, and the grand opening was held in 1986.  Over 14 companies located in the park between 1986, when the Japanese automotive supplier Teikuro was announced, and 2001, when Vining Broom built their headquarters in an expansion of the park.  With almost 2000 jobs and over $2 million in annual tax impact, the park is a critical part of the regional economy.  And it would have never been developed by either a private developer or local government.  In addition, the CIC heavily marketed the park domestically and internationally.

It’s worth mentioning that the CIC also built two speculative buildings in the park.  The first, a 40,000 square foot office building, was built in 1986 and then leased the following year to Emro Marketing (Speedway SuperAmerica), who later built a new $12 million national headquarters facility also in the county.  Speedway SuperAmerica employs over 700 and is still a leading employer.  The second, a 117,000 warehouse/manufacturing facility, was built by the CIC in 1994, leased to Benjamin Steel, and then sold outright to them in 2000.  Benjamin is a steel-service center employing almost 100 today, and Springfield is its headquarters.

Site Selection

“Site selection” is the process by a company to choose a site to build or expand operations.  The role of the CIC is often to manage the process, serving as a single point of reference customer service organization that assists the company find a suitable location; facilitates, coordinates, and helps obtain local, regional, state and federal incentives and resources; and works to solve any obstacles or difficulties.  A current success story for the CIC is Code Blue, a Wisconsin-based third party insurance service firm with very strong growth.  The CIC has been working with the firm for over two years and is in the final stages of finalizing the establishment of the company’s new presence in downtown Springfield, Ohio.  The $3.2 million command and control center will employ over 300 making over $20 per hour.  The project would not be taking place without CIC involvement and leadership.

Retention + expansion

“Retention and expansion” is the coordinated effort to reach out to existing local businesses, develop relationships with them, identify any potential expansion opportunities and positively influence their decision-making process, so that they grow in our community.  A recent example of the CIC’s impact include the national headquarters for Konecranes, a $3B Finnish company that specializes in industrial lifting equipment.  Our award-winning program–that touches over 1,000 of our local businesses annually and coordinates over 11 organizations and 40 volunteers–reached out to Konecranes in 2008 and found out they were in the middle of a strategic decision-making process on locating a new data center as well as expanding manufacturing, sales, and training.  Their regional headquarters in Texas was a leading candidate, but thanks to the efforts of the CIC to assist in site selection, they were able to expand onsite, obtaining valuable help from the Ohio Department of Development, the local Department of Job & Family Services, and others. Those organizations would have never had the opportunity to meet and work with the company, but for the CIC, and because of the CIC’s efforts, over 100 jobs were retained and additional ones created.  The project involved a $3.2 million investment.

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