< Previous184 NOVEMBER 2018 SI T E S E L E C T IO Nits type in Kentucky. Dr. Scott Williams, president of Owensboro Community and Technical College, said the recognition “further validates that our strong industry and educational partnerships with industry-led, work-based education is making a big impact.”“The Greater Owensboro region prides itself on its commitment to constant improvement,” says Candance Castlen Brake, president and CEO of the Greater Owensboro Chamber of Commerce, citing placemaking initiatives in the urban core, the award-winning GOFAME program and upgrades to the riverport, airport and Interstate spurs.”Greater Owensboro Chamber of Commerce Board Chair-Elect Dave Roberts is general manager of distribution for UniFirst Corporation.“We considered a number of options when deciding how to expand in order to meet the needs of our customers,” he says. “However, Owensboro possesses superior geographic proximity to our current and prospective North American customer base, along with the infrastructure, cost of living and quality of life necessary to support our growing business. When we embarked on our expansion project the support from local officials was very strong. From permitting to incentives to workforce training, we were able to receive expedited positive responses every step of the way. In fact, our project in Owensboro is regarded as the smoothest project we undertaken to date.” Jefferson (KY) 78Hamilton (OH) 45Allegheny (PA) 36Boone (KY) 27Kenton (KY) 12Daviess (KY) 9Bullitt (KY) 7Hancock (KY) 5Carroll (KY) 4Clermont (OH) 4Greenup (KY) 4Campbell (KY) 4Top Ohio River Countiestotal projects Top Ohio River Metrostotal projectsCincinnati, OH-KY-IN 97Louisville/Jefferson County, KY-IN 91Pittsburgh, PA 39Owensboro, KY 14Huntington-Ashland, WV-KY-OH 9 S I T E S E L E C T I O N NOVEMBER 2018 185Why Facebook Friended NebraskaAn ‘incredibly complicated process’ led the world’s largest social media company to connect in Greater Omaha.All those “likes” on Facebook have to go somewhere. Increasingly, the world’s largest social media company is routing them to the plains of Nebraska. When California-based Facebook announced in March that it would increase its investment into its sprawling data center campus in Sarpy County, Nebraska, to more than $ billion and by RON S TARNERr on. s t ar ner @ site s ele c tion.c omNebraskaST A TE SPO TLIGHTOmaha, NebraskaPhotos Courtesy of Greater Omaha Chamber186 NOVEMBER 2018 SI T E S E L E C T IO N. million sq. ft. ( , sq. m.), the news was received in Greater Omaha with open arms.“Facebook looking at our area has brought more interest to the region,” says Tim O’Brien, economic development manager for Omaha Public Power District (OPPD). “ is was the result of partnerships and a long-term strategy of targeting data centers. It goes back to when we knew we needed to make changes to our tax climate. It was a real collective e ort.”Facebook spokesperson Melanie Roe concurs. “ e Papillion location checks o many of the criteria we look for when analyzing locations for data centers, including excellent access to ber, as well as good water and sewer infrastructure,” she says of the expanded project. “Facebook is committed to utilizing renewable energy resources, and we developed a great solution with Omaha Public Power District to meet those needs. e area o ers a strong pool of talent for both construction and operations sta , and a great set of community partners.” e expansion will take the Facebook complex from two to six data hall buildings and cross Nebraska Highway to encompass acres ( hectares). Facebook currently occupies about million sq. ft. ( , sq. m.) on acres ( hectares) in Papillion — development that is valued at about $ million.Wind played a central role in the deal, as Facebook purchases wind power from OPPD, which in turn buys it from the Rattlesnake Creek Wind Project in Dixon County. When all is said and done, Facebook will increase its annual power purchase from megawatts to megawatts.By nearly tripling in size, the -year-old Menlo Park, California–based rm with over $ billion in annual revenues will be able to support . billion Facebook users worldwide, the company said. “It was an easy decision to expand in Papillion,” said Jim Piazza, Facebook’s director of data center operations east.‘We’re Always Evaluating Potential New Sites’While the nal decision may have been easy, Facebook’s Roe says the site selection process is not.“We’re always evaluating potential new sites as we expand our infrastructure,” she says. “Deciding where to locate a facility like this is an incredibly complicated process that involves balancing dozens of di erent criteria. Ongoing evaluation of a location and conversations with local o cials can range from months to years. Oftentimes the decision comes down to a tough choice between two or three very good options, but announcements of new sites do not foreclose on other options in the future.” e expansion means that a lot more people will be working in Nebraska. More than , construction workers are already on site each day building the complex, and thousands more will be needed to nish the job. Upon completion, hundreds of permanent jobs will be created to sta the various facilities and operations.Melanie RoeFacebook SpokespersonDeciding where to locate a facility like this is an incredibly complicated process that involves balancing dozens of di erent criteria. Liked Comment Share3 CommentsNebraska Liked This188 NOVEMBER 2018 SI T E S E L E C T IO NIncentives helped make the deal possible, various parties reported. “A business-oriented tax environment is important, but it’s only one part of the kind of broader partnership we need with the local community to make the project successful,” says Roe.A state with the third lowest amount of bonded obligations per capita can afford to be generous with data center investors. The American Legislative Exchange Council says that only Wyoming and Indiana have lower bond obligations, and the Mercatus Center ranks Nebraska as having the best fiscal condition in the country. Mary Plettner, economic development manager for Nebraska Public Power District, says the data center sector will continue to grow because of several factors. “With Nebraska’s central location, power grid reliability, redundant fiber and a business-friendly atmosphere, interest in Nebraska continues to grow in this industry,” she says. “NPPD’s economic development rate gives eligible customers discounted energy prices for up to five years. Qualified projects could see rates fall in the range of 3.7 to 5.0 cents per kilowatt-hour. This rate is ideally suited to data center operations.”A Multi-Continent Buying SpreeDavid Rippe, director of the Nebraska Department of Economic Development, says Facebook data centers have contributed a cumulative $5.8B IN GDP to the U.S. economy from 2010-2016, or $835M PER YEAR.source: RTI International, March 2018 S I T E S E L E C T I O N NOVEMBER 2018 189the state incentivizes data centers through the Nebraska Advantage program. “Our state has created a tax environment that rewards those investments with a special tier within our tax system,” he says. “We encourage data center development through a 10-percent investment credit, a personal property tax incentive and a wage tax credit. We are positioned competitively to win these projects.”O’Brien of OPPD adds that “the Nebraska Advantage program has been tweaked twice since 2005 specifically for data center activity. It first helped us land Yahoo in 2008. Another change was made in 2012 to land Fidelity and later Travelers and Facebook. More data center projects are in the pipeline. Facebook has announced four or five more sites around the country.”Roe elaborated on that site selection binge, noting that “we have announced data centers in the following locations: Prineville, Oregon; Forest City, North Carolina; Lulea, Sweden; Altoona, Iowa; Fort Worth, Texas; Clonee, Ireland; Los Lunas, New Mexico; Odense, Denmark; Papillion, Nebraska; New Albany, Ohio; Henrico County, Virginia [see p. 154]; Newton, Georgia; Eagle Mountain, Utah; Huntsville, Alabama; and Singapore.”Any way you tally it, that’s a lot of ones and zeroes — with a few commas thrown in. By nearly tripling its Nebraska data center operation in size, Facebook will be able to support 2.1BILLION users worldwide.190 NOVEMBER 2018 SI T E S E L E C T IO NGreen Bay Packaging has broken ground on its new paper mill in Green Bay, a $ million project expected to create at least jobs statewide. e new mill will replace the company’s existing recycled paper mill, which was built in and has been rebuilt three times since then. It will cost $ million and it will take three years to build. e company also is investing $ million to expand its shipping container division as part of the project. is will be one of the largest economic development projects in state history (though not in the Foxconn mega-project’s league) and the largest ever in Brown County. In Brown County alone, this new investment will preserve , jobs. Green Bay Packaging is partnering with local companies for the design, construction, and installation of equipment into their new facility. e mill is expected to be fully operational in the spring of . e Wisconsin Economic Development Corporation (WEDC) has awarded the company with up to $ million in state income tax credits over years to ensure that the new mill is built in Wisconsin. e actual amount of tax credits the company receives is contingent upon the number of jobs created and retained, and the amount of capital investment the company makes through . As is the case for all WEDC tax credit awards, Green Bay Packaging must fi rst create the jobs and make the capital investments before receiving any credits.Midwest Paper Group plans to create up to by MARK ARENDmar k .ar end@ site s ele c tion.c omPaper mills gain new leases on life.WisconsinST A TE SPO TLIGHTThe Green Bay waterfrontGetty Images S I T E S E L E C T I O N NOVEMBER 2018 191total jobs and invest $ million in the former Appleton Coated mill. Midwest Paper Group’s parent companies — Industrial Assets and Maynards Industries — purchased the former Appleton Coated facility at a court-approved receivership auction shortly after the mill closed in September . At the time, the two companies were looking for a buyer for the plant, but after going months without fi nding one, they made the decision to run the mill as an ongoing operation.Wisconsin Economic Development Corporation (WEDC) is providing Midwest Paper Group with up to $. million in state tax credits to support the company’s eff orts to modernize the former Appleton Coated paper mill in Combined Locks. e company restarted one of its three paper machines for production in December and begin rehiring former Appleton Coated workers. Today, all three paper machines are in operation around-the-clock, and about workers – the vast majority of whom had worked at Appleton Coated — are back on the job.“We have received overwhelming support and encouragement to restart this mill — support and encouragement from the owners, community, customers, suppliers, government offi cials, contractors, and most importantly, our employees,” said Kyle Putzstuck, president of Midwest Paper Group. “ e additional support from the state of Wisconsin being announced today is further affi rmation that we are on the right path and represents a signifi cant investment in continuing the -year old papermaking tradition in Combined Locks.” In addition to reopening the mill, Midwest Paper Group is spending millions to convert the facility from one that produces printing and writing grades of paper (white paper) to one that produces packaging grades (generally brown paper). e project entails installation of equipment needed to convert waste paper to medium and linerboard used in corrugated and other packaging. Midwest Paper Group will produce both grade lines initially, but it plans to increase production of its packaging grades of paper. e company says there is growing demand for packaging papers because of online shopping and shipping, and the mill’s conversion will help meet that demand and keep the paper manufacturing in Combined Locks. FOXCONN CONTRIBUTES $25 MILLION TO A RESEARCH VENTURE FUND Foxconn’s investment in the Badger State continues. A few months after its $10 billion LCD manufacturing facility announcement, leaders from Advocate Aurora Health, Foxconn, Johnson Controls and Northwestern Mutual formed a new $100 million venture capital fund to target innovations in health care, technology, manufacturing and nancial services.The Wisconn Valley Venture Fund, announced in late August, will create innovation and strategic business development throughout Wisconsin, with each organization contributing $25 million to the fund. The announcement came shortly after Foxconn announced a $100-million gift to the University of Wisconsin – Madison to establish a research partnership.Foxconn’s investment in Wisconsin acted as a catalyst for these four companies to come together to create the fund, which will be used to invest in early-stage companies who will create innovate solutions and ideas within health care, technology, manufacturing and nancial services. In addition, this fund will be a launch pad for attracting and retaining businesses and top talent in Wisconsin while simultaneously helping Wisconsin become a new global hub for technology.Each of the four companies will have representation on the fund’s investment committee. The committee will be charged with selecting a fund manager who will lead the day-to-day investments for the fund. Further details about the fund are expected after the manager of the fund has been selected.192 NOVEMBER 2018 SI T E S E L E C T IO NWhen Green Bay Packaging recently decided to continue its longtime presence in Brown County, Wisconsin — and to significantly expand its operations by adding a $580 million mill — the company’s deci-sion resulted from a targeted, concerted col-laboration between the Wisconsin Economic Development Corporation (WEDC) and local officials to provide the support necessary for the company to succeed and to grow.The Green Bay Packaging project is a prime example of how WEDC fulfills its mis-sion of giving companies the tools they need to thrive, and in the process lift the state’s economy.The process began when company of-ficials asked to meet with local and state officials who feared the papermaker was looking to exit the region. The company’s current mill is 71 years old, has been rebuilt three times and was increasingly inefficient. The company was also being courted by other cities and states, and it needed to expand its capacity to keep up with rising demand from online retailers needing shipping materials. In addition to its local operations, Green Bay Packaging has a significant presence throughout Wisconsin. The plant is part of a vertically integrated operation that includes mills, converting operations, timberlands and a sawmill. All told, Green Bay Packaging has 12 manufacturing facilities in Wisconsin, with more than 1,500 employees statewide and more than 1,100 in Brown County alone.An opportunity to keep and enhance a legacy employerCompany representatives voiced a desire to keep Green Bay Packaging in Wisconsin, but said they would need information on economic incentives to make the financial case for keeping the mill where it was rather than shuttering it and building elsewhere. After this conversation, elected officials wasted no time getting to work with Green Bay Economic Development and WEDC to explore their options.The resulting package included $60 million in tax credits from WEDC over 12 years, alongside other government incentives including $23 million in property tax reim-bursements and $5.3 million in infrastruc-ture improvements to support the project. In return, Green Bay Packaging announced it would keep its 600 jobs in Green Bay and would also construct a new $580 million paper mill. When complete, the new mill will make 100 percent recycled cardboard, and will be Wisconsin’s first new paper mill in 30 years.Green Bay Packaging Executive Vice President Bryan Hollenbach told local media that the company’s strong connections with its employees and the Green Bay area, where it opened as the Green Bay Box Company in 1933, fueled a desire to stay, and the financial incentive package made that possible. “Our employees had a lot to do with the decision,” Hollenbach said. “But the way the city, county and state worked together showed us this was the place. Hopefully it shows Wisconsin is open for business, that it’s a state you can work with.”Massive project will boost jobs for yearsThe new mill is expected to take upwards of three years to build, with an estimated 450 to 800 construction workers on site throughout. When it opens, the facility will produce 330-inch containerboard, rather than the current mill’s 164-inch output. Green Bay Packaging officials say it will triple capacity and increase the amount of work for the more than 700 companies that supply its raw materials and deliver the finished product to customers. The project is expected to create 200 new jobs and to significantly boost the local tax base. The mill’s current property value is $18.1 million, a figure expected to rise to $64.5 million. At current rates, Green Bay Packaging’s annual tax assessment would increase from $412,600 to $1.4 million, although under the agreement, the company will receive a 90 percent reimbursement of the increase in its tax bill until the cumulative total reaches $23 million.Incentive package balances taxpayer and business interestsThe package crafted by WEDC and its partners in Green Bay and Brown County includes requirements, including job creation and retention as well as capital investment targets, that Green Bay Packaging must meet in order to receive the incentives. And as is the case for all WEDC tax credit awards, Green Bay Packaging must first create the jobs and make the capital investments before receiving any credits.“This project will provide an economic boost to Green Bay, the region and the entire state,” said Mark R. Hogan, secretary and CEO of WEDC. “WEDC is proud to support this company’s investment in Wisconsin and the many family-supporting jobs it will bring with it.”———————————————————————————————More information about Wisconsin’s businessdevelopment resources can be found at InWisconsin.com.Green Bay Packaging project demonstratesWisconsin’s business-oriented strategiesA D V E RT I S E M E N TGreen Bay Packaging president and CEO Will Kress speaks during the company’s June 2018 expansion announcement.Next >