ANNUAL REPORT TO THE COMMUNITY

Transcription

1 ANNUAL REPORT TO THE COMMUNITY

2 LVIP VII SPROUTS NEW JOBS IN SOUTH BETHLEHEM OUR MISSION: Create jobs Expand the regional tax base Diversify the local economy Promote the economic vitality and enhance the quality of life in the Lehigh Valley OUR SUCCESSES: Total acres in LVIP park system - 2,500 Lehigh Valley Industrial Park VII is blooming in South Bethlehem. Jobs are growing in the 1,000 acre park that 17 years ago was laid waste by the end of the Steel Era in Bethlehem. Over sixty percent of the vacant land has been developed into sites for over a dozen diverse employers creating jobs in manufacturing, technology services, distribution and other important sectors of the economy. In total, there are 3,400 people going to work daily in this new industrial neighborhood. This year we welcomed new employers CSTK, Inc.; Curtiss-Wright Corporation; Primark Stores, Ltd. and Zulily. Together they brought 285 jobs upon opening their facilities and expect to add more as business volumes grow to planned levels. Bethlehem Mayor Bob Donchez snipped the ribbon in a ceremony welcoming Irish clothing/ fashion retailer Primark to its new 700,000 square-foot distribution facility for its new east coast stores, including two in the Philadelphia area at King of Prussia Mall and Willow Grove Mall. About 70 full-time employees will be working in the building. The site was developed by Trammell Crow Company of Dallas, Texas. Reeb Millwork Corporation, a longtime national manufacturer and distributor of millwork products in Bethlehem, began construction on its new LVIP VII facility at 1091 Gilchrist Drive. LVIP and the City of Bethlehem are pleased to work with this outstanding company and its owners on their expansion plans. Land and development costs - $96,140,000 The transformation of the land at LVIP VII is truly remarkable, the Mayor said. We couldn t agree more. Federal, state and local loans and grants $44,038,206 We expect the Route 412 widening to be completed in 2016, which will open our remaining lots fronting on the new road for retail and commercial development. Employers Employees - 23,310 Local annual tax revenue - $15,000,000 Private investment $818,358,000 In these pages you will also see more jobs growing in LVIP VI at Route 33, between Freemansburg Avenue and William Penn Highway. With sadness, we recognize the passing of our good friend and well-known community leader, Grover H. Stainbrook, Jr. For 25 years Grover worked for LVIP, first as an administrative assistant then as Executive Vice President, and was a key spokesman for economic development in the Lehigh Valley while overseeing the growth of the LVIP park system. We will miss our friend, but will remember his great spirit as we count every success in LVIP s future. Jeff Feather, Chairman 2 Kerry Wrobel, President

3 NEW JOBS, NEW OPPORTUNITIES SUCCESS ONE YEAR AT A TIME The year brought the completion of many projects in both LVIP VI and VII that began construction last year. While LVIP continues the work of infrastructure development to prepare for additional phases of available land in LVIP VII, the anticipated jobs from these completed projects now add to the ongoing success of LVIP and our partnerships. In April, Curtiss-Wright Engineer Pump Division hosted a grand opening for its state-of-the-art 179,000 square-foot facility located at 1185 Feather Way. Curtiss-Wright EPD is the nation s leading supplier of mission-critical pumps for the U.S. Navy s aircraft carriers and submarines. The Bethlehem facility will manufacture approximately 160 pumps each year, which range from a few hundred pounds to as heavy as 25,000 pounds. The new $25 million facility provides growing room for the company s expanding business, is a perfect site for its technical requirements, and centrally locates the company with close proximity to Interstate 78. Location was key in maintaining and attracting the company s workforce of 95 employees, and company officials hope it is the first step into years of business success, professional growth for employees, a continued strong relationship spanning three centuries with the U.S. Navy, and a close link to the Bethlehem community. Photo Provided by J.G. Petrucci Co., Inc. The world-class manufacturing facility was constructed by J.G. Petrucci Co., Inc. who completed the building in one year with the assistance of LVIP and timely approvals from the City of Bethlehem. The building s location is the first site to be developed in LVIP VII s Interchange tract, challenging LVIP to install roads and utilities at the same time the building was being constructed. In addition, state and county aid of over $2.6 million was provided to the company as assistance to relocate from its previous Phillipsburg, NJ site. LVIP is certainly appreciative of the exceptional partnerships like these that bring every project to life and is honored that Curtiss-Wright marks the first manufacturing company to locate in LVIP VII. IN MEMORY: It was with great sadness that in June we said goodbye to Grover H. Stainbrook, Jr. an inspiring colleague and friend of LVIP, and a true ambassador for the Lehigh Valley. Grover s professional career began with the Boy Scouts of America, which led him to Bethlehem where he shifted his focus to economic development. He first joined LVIP, Inc. in 1976 as an administrative assistant. In 1986, he was promoted to Executive Vice President and it was in this capacity that he oversaw the remarkable growth in the LVIP park system. In a self-authored historical account, Grover documented LVIP s birth, progress and key moments, including the growth of the park system from 45 to 360 companies and 4,100 employees to 17,000 under his direction and development of LVIP III, LVIP IV, LVIP V, and LVIP VI. Grover was affiliated with many local and state-wide economic development organizations as well as local charitable organizations. LVIP owes our success to many dedicated people over our 55 years, and Grover was one of our exceptional leaders who left an indelible mark on the hearts of everyone that knew him. We honor and remember Grover for his dedication to LVIP, his contributions to the Lehigh Valley, and for the gentleman who appreciated the art of the deal by working in partnership to foster relationships that brought about success for LVIP and the Lehigh Valley. 3

4 NEW JOBS, NEW OPPORTUNITIES SUCCESS ONE YEAR AT A TIME Central States Thermo King also completed their 25,000 square-foot service facility and relocated its Allentown operation, with 25 employees, to 125 Emery Street in February. CSTK provides service and sales for a diverse lineup of products, including its primary line of Thermo King and Carrier transport refrigeration control equipment. The $6 million facility includes six service bays, a 24/7 secure drop lot, large parts inventory and five service vehicles that allow the company to offer its customers on-site maintenance, 24-hour mobile service and customized maintenance programs. By 2016 the company will offer 12 locations serving 12 states. In early September, Primark Stores, Ltd. hosted a ribbon-cutting ceremony at 2486 Commerce Center Boulevard for its first distribution center in the U.S. The Ireland-based fashion retailer is leasing nearly 700,000 square feet from Trammell Crow Co. who constructed the $38 million facility with its partner Clarion Partners. Primark also opened its first U.S. store the same week in Boston, which will be supplied by the Bethlehem facility. The company has acquired leases for stores from Sears Holding Co. and plans to open additional stores in the Northeast. The company, which markets men s and women s clothing, has nearly 300 stores worldwide and chose this location for its first U.S. distribution center because it is one of the fastest growing regions in the nation. The facility currently employs 45 people with an additional 25 expected by the end of LVIP is pleased to welcome Reeb Millwork Corporation to LVIP VII, the second manufacturer to locate in the park. Early this year, the company purchased 61 acres at 1091 Gilchrist Drive, a property adjacent to Curtiss-Wright, the initial manufacturer to locate in the park. Currently under construction, the first phase of the project consists of 175,000 square feet of manufacturing/warehousing space, expanding on the company s existing operations in Fountain Hill, Bethlehem. Reeb s future plans for the site include a potential build-out to 720,000 total square feet with offices and the possibility for a showroom. Phase one is being constructed by the J.G. Petrucci Co., Inc. Reeb plans to significantly invest in the expansion project and add 147 jobs while retaining 267 positions. The family-owned company is one of the largest distributors of custom millwork products on the East Coast and operates other facilities in Syracuse, NY; Lincoln, RI; Barclay, MD; and Mocksville, NC. As we reported last year, fast-growing online retailer Zulily had selected LVIP VII for the location of its new Northeast fulfillment center to better serve its customers in Eastern U.S. With construction of the 800,000 square-foot facility now complete, the company has begun operations with 125 employees and plans to add seasonal associates with the approaching holidays. Liberty Property Trust constructed and owns the building at 10 Emery Street and is pursuing LEED v.4 Gold certification for the nearly $45 million facility. Zulily, founded in 2010, offers constant selections of new offerings including clothing, home décor, toys, gifts and more at its online storefront Zulily.com. The company s corporate headquarters are in Seattle, WA with fulfilment centers in Reno, NV and Columbus, OH. 4

5 NEW JOBS, NEW OPPORTUNITIES SUCCESS ONE YEAR AT A TIME LVIP VI, located in Bethlehem Township adjacent to Route 33, continues to transform and provide high quality jobs for the Lehigh Valley. As an update to last year s report, two projects have been completed and are now operating. Together, the two companies have added nearly 40 employees to the park. Flexicon Corporation s 85,000 square-foot expansion is providing additional space for the company s engineering, manufacturing, assembly and electrical controls departments. The larger facility at 2400 Emrick Boulevard will allow the company to explore new markets and product lines, speed delivery times and provide enhanced support to their locations world-wide. Flexicon is a leader in the design and manufacturing of bulk material handling equipment. Luxury Lane, located at 2601 Baglyos Circle, completed its 43,000 squarefoot building for its new office/warehouse/distribution facility. In addition to creating its own exclusive lines of Luxury Lane brands such as BGSD, Landing Leathers, Jessie G. and Phistic, the company imports a wide variety of retail clothing and accessories through its e-commerce website at LuxuryLane.com, which is then housed at and distributed from the LVIP VI facility. LVIP IV, DEVELOPED IN 1987, CONTINUES TO SEE THE GROWTH AND EXPANSION OF LEHIGH VALLEY COMPANIES. Follett Corporation, founded in 1948, expanded operations into LVIP IV this year by leasing a 73,000 square-foot building at 157 N. Commerce Way. The lease represents the third expansion for the company in the past three years. The building, owned by J. G. Petrucci Co., Inc., supplements the company s manufacturing and customer service operations and will increase its employment by 90 people. This expansion of its Forks Township corporate headquarters increases the company s Lehigh Valley presence to over 230,000 square feet. Follett also operates a facility in Poland that services Europe and other international markets. The company manufactures ice storage and transport solutions and medical-grade refrigeration products for customers world-wide. 5

6 FUNDING STEADY GROWTH SINCE 1959 (UNAUDITED) LVIP generates revenue primarily through land sales, interest income and government grants. Lehigh Valley Industrial Park, Inc. was established in 1959 as a private, non-profit economic development corporation to expand the region s tax base, create new jobs and diversify the local economy by developing industrial sites for new and expanding business. The use of LVIP s revenue is dedicated to building infrastructure (road and utilities), assessing the site s environmental condition and paying property taxes and other landholding costs. Since then, LVIP has been building high-quality, multi-use business centers that today are home to approximately 480 small and medium companies employing an estimated 23,000 people in seven parks on a total of 2,500 acres and generating well over $15 million in annual payroll and property taxes City of Bethlehem, Lehigh County: The first park on 220 acres east of Lehigh Valley International Airport today has over 75 firms employing more than 4,500 people. LVIP II 1964 Hanover Township, Lehigh County: Located north of the airport, 142 acres with 20-plus companies and 1,050 employees. LVIP III 1974 Hanover Township, Lehigh County: Located on 318 acres south of the airport along Route 22, this park is home to over 140 employers with about 6,000 employees. LVIP IV 1987 Bethlehem and Hanover Townships, Northampton County: The 430-acre park east of Route 512 between Hanoverville Road and Route 22 has 120-plus companies and more than 4,500 employees. Freshpet has opened its newly renovated and expanded building, bringing 125 new jobs to the park. LVIP V 1992 Bethlehem Township, Northampton County: This 182-acre park along Brodhead Road houses major facilities for Crayola, Kraft, Bimbo Bakery and a distribution facility for Just Born, Inc. The park s 13 tenants employ over 1,300 people. LVIP VI 1999 Bethlehem Township, Northampton County: The 192-acre park, adjacent to Route 33 and north of I-78, has 94 employers and 1,775 employees. Flexicon completed its 85,000 squarefoot expansion, adding to its engineering, manufacturing and assembly departments at this location, the company s world headquarters. LVIP VII 2004 City of Bethlehem, Northampton County: With 1,000 acres for development, the park s 18 current tenants are employing approximately 3,400 workers. Upcoming projects will push the park s build-out to over four million square feet with private investment of over $350 million. For additional financial information, please visit LVIP I SOURCES Net Cash $ 6,090 State Grant $ 1,250 Other $ 154 USES Land & Development $ 4,103 Property & Equipment $ 607 SGA $ 622 Debt Payment $ 6 2,162 Above charts shown in thousands.

7 LVIP BOARD OF DIRECTORS Chairman Jeffrey P. Feather, Vice Chairman, National Penn Bancshares, Inc. President Kerry A. Wrobel, President, Lehigh Valley Industrial Park, Inc. Vice Chairman, Finance/Treasurer Michael J. Gausling, Managing Partner, Originate Ventures Vice Chairman, Marketing Raymond B. Holton, Retired Editor & Senior Vice President, The Morning Call Vice Chairman, Planning Martin C. Gilchrist, President, Urban Research & Development Corporation Assistant Treasurer Scott V. Fainor, President and CEO, National Penn Bancshares, Inc. Assistant Treasurer Jan S. Heller, Former Executive Vice President Finance, St. Luke s University Health Network Bernard O Connor We are pleased Rev. Bernard F. O Connor, President of DeSales University, has been renominated to continue his current term with the Board until Rev. O Connor has committed many years to LVIP since first joining the Board in 2001, and he remains an esteemed, dedicated member of the LVIP Board of Directors. Assistant Treasurer David A. Nepereny, Chairman of the Board, Buzzi Unicem USA, Inc. Assistant Secretary Michael M. Albarell, President, Albarell Electric, Inc. Assistant Secretary Curtis Hank Barnette, Skadden, Arps, Slate, Meagher & Flom (Retired); Chairman Emeritus Bethlehem Steel Corporation Frederick C. Allerton, Principal, Spillman Farmer Architects The Honorable Robert J. Donchez, Mayor, City of Bethlehem Mark H. Erickson, President, Northampton Community College M. Arif Fazil, President, D Huy Engineering, Inc. Silvia A. Hoffman, Partner, MKSD Architects Mark Juliano, President, Sands Casino Resort Bethlehem Joseph P. Kender, Jr., Vice President for Advancement, Lehigh University Silvia Hoffman A Board member since 2011, Silvia A. Hoffman has also been re-nominated to continue on the Board until LVIP thanks Silvia, a founding partner of MKSD Architects, for her commitment to the Board as well as to the LVIP Building Committee. Dennis J. Losco, Jr., CFO, Superior Quartz Products, Inc. Mary Jane McKeever, Vice President Finance, St. Luke s University Health Network Gerald A. Nau, Chairman & CEO, Lafayette Ambassador Bank The Reverend Bernard F. O Connor, President, DeSales University Edward O Dea, CFO, Lehigh Valley Health Network Lee F. Snyder, President, Snyder Hoffman Associates, Inc. 7

8 1720 Spillman Drive, Suite 150 Bethlehem, PA LVIP VII - BETHLEHEM COMMERCE CENTER Lots from 2-25 acres City of Bethlehem, Lehigh Valley, PA LVIP VII Phases of Development 1,000 acres located at the intersection of I-78 & Rt. 412 in Bethlehem, Pennsylvania Rail Service by two Class I railroads, plus an intermodal terminal Shovel-ready parcels Zoned Industrial Redevelopment (IR) and Heavy Industrial (HI) Large capacity municipal water and sewer Gas, telecommunications and electric on site Favorable financial incentives available, including LERTA Tax Assistance Program Ideally located to serve the Northeast and Mid-Atlantic President Director of Business Development Director of Administration Kerry A. Wrobel kwrobel@lvip.org Justin C. Ryan jryan@lvip.org Michelle L. Frable mfrable@lvip.org 1720 Spillman Drive, Suite / LVIP BROWSE LVIP s WEBSITE AT