100 South Queen Street, PO Box 1558 Lancaster, PA edclancaster.com 2014 ANNUAL REPORT

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1 100 South Queen Street, PO Box 1558 Lancaster, PA edclancaster.com 2014 ANNUAL REPORT

2 2 Vision To elevate the economic strength of Lancaster County by becoming the business investment community of choice. Mission To enhance the economic well-being of Lancaster County by bringing together business resources, capital and government for selective, measurable and sustainable growth. Core Strategies Business Retention and Investment Business Recruitment Financial Sustainability A Message FROM THE BOARD CHAIRS We re delighted to share the results of a terrific 2014 for both the Economic Development Company of Lancaster County (EDC) and EDC Finance Corporation. While it s good practice and an important exercise to look back each year to ensure that what we set out to do in January was accomplished by December, for EDC, and particularly for EDC Finance, we know that 2014 was a banner year so we re celebrating! What drives us as Board volunteers and what energizes our talented team every day is a real focus on our vision and mission of strengthening Lancaster County s economic well-being. We are so thankful that many businesses and partners in the community recognize the value of the services we provide and choose to invest in our organizations. Thank you to our members and sponsors for your confidence and support. As we look at 2014, a few key highlights stand out, demonstrating EDC s and EDC Finance Corporation s strengths and setting the stage for what we expect to be an invigorating and ambitious In July, we hired a new President, Lisa Riggs, to take the reins of both organizations. Lisa is well-known in Lancaster County and within the region for her successes in community and economic development in Lancaster City, where she led the James Street Improvement District. Her track record of building strong and deep relationships, being an effective communicator, and leading successful strategic initiatives aligns perfectly with the direction of both organizations. At the end of 2014, the U.S. Small Business Administration recognized EDC Finance as its top lender in the Philadelphia region based on the federal fiscal year, with 24 loans reflecting more than $23 million in SBA 504 lending. And as you ll see in this report, EDC Finance finished calendar year 2014 with 42 loans totaling nearly $28 million. While the numbers themselves are impressive, it s the personal stories behind each project that reveal progress toward our mission, validate the important partnerships we have with the local banking community, and showcase the drive and entrepreneurial spirit that remains strong in Lancaster County and South Central Pennsylvania. In October 2014, members of both the EDC and EDC Finance Boards along with our County Commissioners, volunteers and staff held a half-day retreat to assess our progress relative to our five-year strategic plan, which was crafted in Through robust discussion and exchanges of opinions, we affirmed that our mission, vision and core strategies remain as relevant, if not more so, today than when we defined them four years ago. We hope you ll take a few minutes to view our accomplishments and the progress made in We thank you for your engagement and support, and welcome any comments or feedback you may have on our work. 3 John D. Cox EDC Board Chair, Joshua D. Cohen EDC Finance Corporation Board Chair, A Dentech employee, East Cocalico Township

3 2014 Key Activities AND ACCOMPLISHMENTS 4 EDC s and EDC Finance s portfolio of activity in 2014 was robust, showcasing the two organizations reach throughout Lancaster County and the application of its economic development expertise. Highlighted here are just a few specific examples of EDC s and EDC Finance s engagements and accomplishments with major local private sector partners, government agencies, and the banking and real estate communities, all with a focus on supporting the retention and expansion of local business and the recruitment of new businesses and investment into the community. This past summer, Norfolk-Southern transferred title of its 28-acre former railyard facility off Harrisburg Avenue to EDC Finance Corporation, on behalf of Franklin & Marshall College and Lancaster General Health, the Northwest Gateway project partners. This property transfer officially kicked off the fourth segment of the decade-long, $75 million brownfield redevelopment project. This highly visible phase primarily involves site cleanup, environmental remediation, leveling and grading of the land, the installation of public infrastructure including natural gas lines, electrical main service, water, sewer, storm water management and curbing. Work is scheduled to continue through early summer 2015, at which time EDC Finance will transition the ownership of the site to the primary project partners. The U.S. Small Business Administration s Philadelphia District Office recognized EDC Finance Corporation as its Certified Development Company (CDC) of the Year for the federal fiscal year The District s Lead Economic Development Specialist Don Jefferson traveled to Lancaster to present the award at EDC Finance Corporation s Annual Membership meeting in December. The award capped EDC Finance Corporation s most successful year, as measured by the total number and volume of loans closed. During the second half of 2014, EDC tracked more than 20 prospect inquiries from companies and site location consultants considering a Lancaster investment. The leads reflected a wide range of industries, including warehouse/distribution, manufacturing, food processing, woodworking, healthcare and retail. EDC, working collaboratively with the Commercial & Industrial Council of the Lancaster County Association of Realtors, along with others in the commercial real estate community, coordinates the submission of information on specific sites as well as providing demographic, industry and community data. At year-end 2014, two companies were finalizing Lancaster County sites, while seven other prospects remained active. The best work of EDC and EDC Finance is done in partnership with a range of stakeholders. During this past year, these partnerships have translated into: the establishment in Penn Township of a new Industrial Development Authority, which will provide tax-exempt financing to manufacturers and not-for-profits, and will serve as the primary vehicle to approve Next Generation Farmer Loans, which previously had been processed by our neighbors in Chester County. the growth of EDC Finance s regional presence in York, Adams and Cumberland Counties, which focused on providing the SBA 504 tool to qualified projects in neighboring communities. In 2014, Cumberland County received its first approval of an SBA 504 project through EDC Finance, and four projects in York County were approved. improved connections by EDC into the townships and boroughs of Lancaster County, including discussions in Manheim, Lititz, the City of Lancaster, East Hempfield Township, Manheim Township, Columbia, and Elizabethtown on specific business retention and expansion opportunities as well as site and redevelopment projects. regional cooperation under the auspices of the PA Department of Community & Economic Development s Partnership for Regional Economic Performance (PREP). EDC participates in the South Central PREP region, which includes eight counties and is led by the Harrisburg Regional Chamber. The cooperative effort includes tracking leads and information and collaborative marketing. 5 Northwest Gateway Project in Lancaster City

4 EDC Finance Corporation RECORD SUCCESS IN 2014 While EDC Finance logged record numbers in 2014, it s the people and the projects themselves that are compelling. Every day, EDC Finance is working side by side with talented individuals running everything from the corner pizza shop to the dairy farm or a large manufacturing business. EDC Finance s staff is known for its high-quality work, with a strong focus on customer service, responsiveness and expert knowledge of specific state funding resources and the SBA 504 product. Importantly, the EDC Finance team works in strong partnership with the local banking community, as the tools available to the organization are used to complement bank financing. The map below and the charts on the following pages capture the key data of EDC Finance s work. In total, in 2014, EDC Finance helped leverage $67 million in capital investment, creating 102 jobs and retaining 295 jobs all over Lancaster County. And in its partnership with the York County Economic Alliance and the Cumberland Area Economic Development Corporation, we assisted with 5 projects, totaling more than $13 million in investment, 91 jobs created and 74 jobs retained. EDC Finance Project Activity ( ) Lancaster County, PA Elizabethtown Manheim Columbia New Holland Lancaster City Quarryville SBA 504 Loans Other Ag/Commercial Loans Urban Growth Area Village Growth Area Lancaster County Planning Commission BTR September, 2014 Clockwise: Wyndridge Farm owners Julie and Steve Groff; Althouse, Martin & Associates headquarters; beers and ciders on tap at the Wyndridge Farm tasting room; Althouse, Martin & Associates work product Highlighted here are two terrific projects from EDC Finance assisted Eldon Stoltzfus, owner of Althouse, Martin & Associates, a local architecture firm, with a building purchase and renovation in the heart of downtown Strasburg. Due to its unique characteristics and historic charm, the company focused on a Main Street property, which was the original site of the Bank of Strasburg, one of the earliest National Banks chartered in the United States. Union Community Bank contacted EDC Finance staff in July of 2014, as Mr. Stoltzfus was interested in purchasing the building to house his firm and to provide space for several other tenants. The project met the requirements and qualifications of an SBA 504 loan, so EDC Finance prepared and secured approval of the project, first by the EDC Finance Loan Committee and Board of Directors and then by the SBA. The total project investment was more than $500,000 and resulted in the reutilization of an important property. The SBA 504 approval timeframe took just 45 days from the date EDC Finance was brought into the discussion until the SBA 504 loan approval was received. EDC Finance was pleased to provide assistance to Lancaster native Steve Groff and his wife, Julie, as they created the beautiful and unique event venue of Wyndridge Farm in Dallastown, York County. Working in close partnership with the York County Economic Alliance and Fulton Bank, EDC Finance secured the approval of $2,083,464 in SBA 504 financing. Mount Joy Lititz Ephrata As the chart of EDC Finance activity in 2014 shows, supporting local farming continues to be a focal point, utilizing the state s Next Generation Farmer Loan Program. This year, EDC Finance supported the ownership transition of 16 Lancaster County farms, representing approximately 1,100 acres of land. After many years working as an orthopedic surgeon, Steve and his family desired to transition their 77-acre farm into a destination events venue and production facility for their growing brand of craft cider, beer, and soda. The restoration project of the 110-year-old barn has quickly become a popular destination for many regional events and weddings. The company received SBA 504 approval in January 2014 for their $7 million venture, opened for business in September, and funded their SBA 504 loan in December of the same year. 7

5 2014 PROJECT RESULTS 8 SBA 504 County Loan Amount Total Project Jobs to be Jobs to be Investment Created Retained Caruso s Pizza & Grill Lancaster $ 246,000 $ 615, Centurion Construction York $ 210,000 $ 525, Champion Wash Station Lancaster $ 440,000 $ 1,469, Country Home Catering & Zig s Bakery Lancaster $ 1,265,600 $ 3,164, Dentech Lancaster $ 1,360,000 $ 3,400, Eldon R. Stoltzfus Architect Lancaster $ 202,660 $ 506, Hampton Inn & Suites, Hummelstown-Hershey Dauphin $ 1,840,000 $ 5,266, Heritage Hotel Lancaster Lancaster $ 1,239,370 $ 3,541, JG Environmental Lancaster $ 280,000 $ 700, NTI Group Lancaster $ 274,000 $ 685, Smucker Properties Lancaster $ 1,100,000 $ 2,918, Spring House Brewing Co. Lancaster $ 780,000 $ 1,950, Star Light Diner York $ 520,000 $ 1,300, The Carlisle Group - Spatacular Cumberland $ 1,445,200 $ 3,613, The Sportsman s Shop Lancaster $ 1,220,000 $ 3,050, Wyndridge Farm York $ 2,083,464 $ 7,125, York Blue Moon York $ 264,000 $ 660, Total SBA $ 14,770,000 $ 40,489, Penn IDA Bank Qualified Tax-Exempt York Jewish Community Center York $ 4,250,000 $ 8,000,000 NA NA Total IDA 1 $ 4,250,000 $ 8,000,000 County Loan Amount Total Project Jobs to be Jobs to be Investment Created Retained PA Small Business First Brubaker Farm, Robert & Andrea Lancaster $ 200,000 $ 620, Eby Farm, James & Corrie Lancaster $ 200,000 $ 500, Fox Meadows Creamery, Inc. Lancaster $ 175,000 $ 1,343, Frey Farm, Klint & Melissa Lancaster $ 200,000 $ 630, Harnish Farm, Bryan & Julene Lancaster $ 200,000 $ 1,050, Penn s Peaceful Meadow Farm Lancaster $ 200,000 $ 1,191, Refreshing Mountain Camp Lancaster $ 200,000 $ 402, Rosenberry Farm, Steve & Cindy Lancaster $ 200,000 $ 1,910, Total SBF 8 $ 1,575,000 $ 7,647, Next Generation Farmer Loan Program Beiler Farm, Amos & Katie Lancaster $ 330,000 $ 495,000 NA NA Esch Farm, Joseph & Susie Lancaster $ 500,000 $ 500,000 NA NA Esh Farm, Jonas & Anna Lancaster $ 459,000 $ 459,000 NA NA Fisher Farm, Sylvan & Fannie Lancaster $ 375,000 $ 677,000 NA NA Harnish Farm, Bryan & Julene Lancaster $ 509,000 $ 1,050,000 NA NA Herr Farm, Rustin & Heather (Penn IDA) Lancaster $ 509,000 $ 1,575,000 NA NA King Farm, Abner & Suvilla (Penn IDA) Lancaster $ 350,000 $ 650,000 NA NA Miller Farm, Daniel & Katie Lancaster $ 509,000 $ 550,000 NA NA Penn s Peaceful Meadow Farm (Penn IDA) Lancaster $ 500,000 $ 1,191,268 NA NA Smucker Farm, Daniel & Mary Lancaster $ 459,000 $ 459,000 NA NA Stoltzfus Farm, Jacob & Elizabeth Lancaster $ 430,000 $ 675,000 NA NA Stoltzfus Farm, Menno & Rachel Lancaster $ 357,000 $ 357,000 NA NA Weaver Farm, Derrick & Jessica Lancaster $ 500,000 $ 1,000,000 NA NA Yoder Farm, Jacob & Sarah Lancaster $ 710,000 $ 710,000 NA NA Zook Farm, David & Annie Lancaster $ 350,000 $ 375,000 NA NA Zook Farm, Henry & Annie Lancaster $ 210,000 $ 210,000 NA NA 9 Total NGFLP 16 $ 7,057,000 $ 10,933,000 EDC FINANCE CORPORATION TOTALS 42 $ 27,652,000 $ 67,069,

6 2014 BOARD OF DIRECTORS 2014 BOARD OF DIRECTORS 10 Nancy S. Arnold, Administrative Officer Finance, Gardner Russo & Gardner Thomas T. Baldrige, President & CEO, The Lancaster Chamber of Commerce & Industry Thomas E. Beeman, President & CEO, Lancaster General Health Steven G. Cook, Business Development Director, UGI Utilities Nevin D. Cooley, Chief Executive Officer, High Industries and High Real Estate Group John D. Cox, President, Turkey Hill Dairy R. Joe Crosswhite, Regional President, M&T Bank Earl A. Furman, President & CEO, Versatek Enterprises Mark D. Gainer, President & CEO, Union Community Bank James R. Hoehn, President, PNC, Central PA Region Randall L. Horst, President & CEO, Horst Group David R. Keller, Esq., Partner, Barley Snyder Robert M. Krasne, Esq., Chairman of the Board, CEO & Publisher, LNP Media Group, Inc., a Steinman Communications Company John M. Levitski, Regional Director, PPL Corporation Donald H. Nikolaus, President & CEO, Donegal Mutual Insurance Company William J. Reuter, Chairman and CEO, Susquehanna Bancshares Dr. Carl J. Strikwerda, Ph.D., President, Elizabethtown College Rupert H. Taylor III, Executive Vice President, Warfel Construction Company James D. Warner, CEO, Lancaster County Solid Waste Management Authority E. Philip Wenger, Chairman, CEO and President, Fulton Financial Corporation NEWLY ELECTED 2015 EDC BOARD OF DIRECTORS Mark C. Fitzgerald, President & Chief Operating Officer, High Real Estate Group Troy A. Clair, President, CEO, Clair Global EMERITUS DIRECTORS Gibson E. Armstrong Robert S. Bolinger Dr. Joseph A. Caputo Robert C. Gray John M. Hallgren Alexander Henderson III Calvin G. High Calvin E. Levis W. Kirk Liddell Jessica H. May Gene Moore Timothy W. Peters R. Scott Smith, Jr. Kenneth G. Stoudt Daniel C. Witmer OFFICERS John D. Cox, Chair Thomas E. Beeman, Vice Chair Lisa D. Riggs, President John W. Biemiller, EVP/COO, Treasurer, Secretary Lyle D. Hosler, Vice President Joan M. Brodhead, VP & COO, Community First Fund Michael R. Carper, President & CEO, Housing Development Corporation MidAtlantic Joshua D. Cohen, Esq., Partner, Hartman Underhill & Brubaker Michael W. Davis, Esq., Partner, Barley Snyder Patrick M. Egan, CEO and Founder, Select Security Jennifer D. Goldbach, Business Development Director, Rhoads Energy R. Edward Gordon, Executive VP & CFO, Wohlsen Construction Company Robert W. Heiserman, Broker/Owner, Donegal Real Estate Charlotte A. Katzenmoyer, Director of Public Works, City of Lancaster Walter J. Legenstein, Chairman & CEO, Certified Carpet Craig Lehman, Commissioner, County of Lancaster Michael P. Peachey, Partner, Acuity Advisors & CPAs Gary M. Pruden, Chief Financial Officer, Lancaster County Solid Waste Management Authority Dennis R. Roemer, Executive VP & CFO, Lancaster General Health Robert C. Shoemaker, President & CEO, Lancaster City Alliance Betty K. Tompos, VP for Finance & Administration, Thaddeus Stevens College of Technology NEWLY ELECTED 2015 EDC FINANCE CORPORATION BOARD OF DIRECTORS Jeffrey S. Bleacher, Managing Partner, Ross Buehler Falk & Co. OFFICERS Joshua D. Cohen, Chair Betty K. Tompos, Vice Chair Lisa D. Riggs, President John W. Biemiller, EVP/COO, Treasurer, Assistant Secretary Lyle D. Hosler, Vice President, Secretary PROFESSIONAL SERVICES Accountants - The Walz Group Auditors - Brown Schultz Sheridan & Fritz Investment Advisors - EHD Advisory Services Photography - Robert J. Polett Event Production - Aurora Films & Shumaker PDT EDC AND EDC FINANCE CORPORATION STAFF Lisa D. Riggs, President John W. Biemiller, EVP/COO Lyle D. Hosler, Vice President, Director of Finance Randall M. Johnston, Economic Development Loan Officer Jean K. Rehrig, Portfolio Manager Erin E. Lyons, Funding Manager Leigh A. Bardell, Finance Project Manager Donna M. Neyhard, Administrative Assistant EDC FINANCE CORPORATION MEMBERSHIP James W. Appel, Appel & Yost Jeffrey S. Bleacher, Ross Buehler Falk & Co. Jonathan Bowser, Cumberland Area Economic Development Corporation Joan M. Brodhead, Community First Fund Michael R. Carper, Housing Development Corporation MidAtlantic Joshua D. Cohen, Hartman Underhill & Brubaker Michael W. Davis, Barley Snyder Michael DeBerdine, Rhoads Energy Barbara Reist Dillon, Nikolaus & Hohenadel Philip M. Donmoyer, August Mack Environmental Patrick M. Egan, Select Security Ramon Escudero, Elizabethtown Area Chamber of Commerce Daniel J. Fichtner, Providence Engineering Corporation Robin Fitzpatrick, Adams County Economic Development Corporation Jennifer D. Goldbach, Rhoads Energy R. Edward Gordon, Wohlsen Construction Company Jacquie Gumpper, Versatek Enterprises J. Kenetha Hansen, York County Economic Alliance Robert W. Heiserman, Jr., Donegal Real Estate Donald F. Johnson, Jr., Trout, Ebersole & Groff, CPA Charlotte A. Katzenmoyer, City of Lancaster Jessica King, ASSETS Lancaster Andy Klinger, Susquehanna Bank David W. Kratzer, Penn Township Mark P. Lauriello, Rettew Associates Walter J. Legenstein, Certified Carpet Craig Lehman, County of Lancaster Michael P. Peachey, Acuity Advisors & CPAs Gary M. Pruden, Lancaster County Solid Waste Management Authority Pedro A. Rivera, School District of Lancaster Robert S. Rockwell, York County Economic Alliance Dennis R. Roemer, Lancaster General Health Robert C. Shoemaker, Lancaster City Alliance Thomas M. Showers, Manheim Area Economic Development Corporation Betty K. Tompos, Thaddeus Stevens College of Technology 11 Flex-Cell Precision work product

7 2014 EDC MEMBERSHIP LEADER $50,000 FOUNDER $30,000 ENGINEER $20,000 DEVELOPER $15, PARTNER $7,500 M&T Bank PNC Bank Reinsel Kuntz Lesher Turkey Hill Dairy MEMBER $3,500 Barley Snyder Donegal Mutual Insurance Company Dutch Wonderland Dutchland Flyway Excavating Franklin & Marshall College HACC Lancaster Campus Hartman Underhill & Brubaker Horst Group Irex Corporation Lancaster County Housing & Redevelopment Authorities Lancaster Regional Medical Center & Heart of Lancaster Millersville University of Pennsylvania Oak Tree Development Group Professional Design & Construction Providence Engineering Corporation Rettew Associates Thaddeus Stevens College of Technology Union Community Bank Warfel Construction Company Wohlsen Construction Company ASSOCIATE $1,750 Abel Construction Co. Acuity Advisors and CPAs Appel & Yost August Mack Environmental Aurora Films B.R. Kreider & Son Benchmark Construction Company Bertz, Hess & Co. Brown Schultz Sheridan & Fritz Burle Business Park Burnham Holdings Carel USA Central Penn Business Journal Certified Carpet City of Lancaster Clair Brothers Audio Systems Clair Global Commercial & Industrial Real Estate Council/LCAR Conewago Industrial Park Conrad Siegel Actuaries David Miller/Associates The Drogaris Companies Eastern Alliance Insurance Group EHD Advisory Services Elizabethtown College Ephrata National Bank Hamilton Precision Metals Integrity Bank Kellogg Company Kline s Services Lancaster Barnstormers Lititz Mutual Insurance Company LMS Commercial Real Estate Mars Chocolate Martin Insurance Company Metro Bank Murray Securus Murry Management Company National Bearing Company National Penn Bank Neffsville Plumbing & Heating Nikolaus & Hohenadel Northwest Savings Bank Orrstown Bank ParenteBeard Paul Risk Associates Penn Cinema Management Company Realty Settlement Services RGS Associates Rhoads Energy Ross Buehler Falk & Company Santander School District of Lancaster Sechan Electronics Select Security Shumaker PDT Simon Lever Stoner Stoudt Advisors Trout, Ebersole & Groff Versatek Enterprises The Walz Group Wenger s Feed Mill Willow Valley Associates YTI Career Institute SUPPORTER $500 Community First Fund Discover Lancaster Ephrata Economic Development Corporation Harrisburg International Airport Housing Development Corporation MidAtlantic Kutztown University SBDC The Lancaster Chamber of Commerce & Industry Lancaster County Career & Technology Center Lancaster County Workforce Investment Board Lancaster Downtown Investment District Authority Masonic Villages at Elizabethtown Mount Joy Authority SCORE (Chapter 16) 13 Clockwise, from top left: Greg and Matt Keasey, Spring House Brewery Co.; Penn Square; Lancaster County barn

8 2014 SPONSORS CHAMPION $5,250 BENEFACTOR $2, ADVOCATE $1,250 Aerial of Lancaster County

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