< Previous208 MAY 2019 SI T E S E L E C T IO NState Chips In $40 Million e Kentucky Economic Development Finance Authority approved the company for tax incentives up to $ million through the Kentucky Business Investment program. e incentive allows Nucor to keep a portion of the new tax revenue it generates through corporate income tax credits and wage assessments by meeting job and investment targets. KEDFA also approved up to $ million in tax incentives through the Kentucky Enterprise Initiative Act, which allows fi rms to recoup Kentucky sales and use tax on construction costs, building fi xtures, and equipment used in R&D and electronic processing.Terry Gill, secretary of the Kentucky Cabinet for Economic Development until his April resignation, called the Nucor announcement “a huge win for the state and a transformative opportunity for Meade County and Brandenburg. So much of our work revolves around existing relationships with established businesses, and this deal confi rms that.”In an interview prior to his resignation, he added that “the Nucor CEO said the decision to build a greenfi eld mini-mill was based on many of the same reasons that led Braidy Industries two years ago to invest in a large aluminum plant in Eastern Kentucky. ey can take the cost advantages of locating here and build them into their pricing for their customers.”Gill says the momentum of a record-breaking three-year run for Kentucky shows no signs of abating. “If you look at our momentum in , there is a certain energy level, a buzz, around doing business in Kentucky,” he says. “We are closing in on almost $ billion in new capital coming into the state during this administration. We are becoming top of mind. Amazon, Toyota, Braidy, Nucor, etc. — they’re all signifi cant, transformative and disruptive deals. Businesses are now looking at Kentucky, and we are making the short list.”From Russia With Cash at is especially true in the primary metals sector. On April , Russian company Rusal announced its intent to invest $ million into the Braidy Industries aluminum rolling mill near Ashland. Braidy is still working to fully fi nance the $. billion project, and received further reassurance when BMW later signed on to buy aluminum sheet from the mill.Rusal, the world’s largest producer of aluminum outside of China, has historically been the No. non-domestic supplier of prime aluminum to the U.S. e partnership aims to create the fi rst low-carbon-impact industrial aluminum rolling mill operation in the world. e U.S. had previously placed sanctions on Rusal, but the U.S. Treasury Department lifted those sanctions in January. e Braidy Atlas plant project will create , construction jobs, permanent manufacturing jobs, and about , additional jobs. Jack Mazurak, communications director for the Kentucky Cabinet for Economic Development, says, “Plants like this are choosing to locate here because Kentucky off ers the lowest industrial power rates east of the Mississippi. Plus, Kentucky is located on both the Ohio River and the Mississippi River. You can barge in the raw materials and either use the highway system or barge to ship out your end product.” e Aluminum Association says data show more than , direct jobs in Kentucky’s aluminum sector — part of an overall supplier and induced economic impact accounting for more than , jobs, $. billion in wages and $. billion in output.Proximity to the automotive manufacturing plants in the Mid-South and Midwest creates demand for steel and aluminum, says Mazurak.“As automotive manufacturers lightweight their vehicles by moving to aluminum and lighter steel, we will see more need for these types of primary-metal production facilities. e Nucor steel plant in Brandenburg, for example, will supply a general manufacturing base in Kentucky and the South.” Nucor is currently investing more than $2 billion in our Kentucky operations.”— John Ferriola, Chairman, CEO and President of Nucor210 MAY 2019 SI T E S E L E C T IO NINVESTMENT PRO FILE:MARYLANDThe Future of Health Care Is HereMaryland leads a biotech revolution.eff Galvin, founder and CEO of Rockville, Maryland’s American Gene Technologies, speaks of cellular gene therapy with the zeal of an evangelist.“I believe we’re on the eve of a gene and cell therapy revolution that will completely disrupt the traditional drug development industry and the economics of disease,” Galvin predicts, adding that emerging gene science off ers the promise of “curing the incurable and treating the untreatable,” such as cancer and HIV. It’s no coincidence that Galvin, a successful veteran of Silicon Valley, founded AGT in Maryland. e genetic breakthrough that undergirds AGT’s technology came straight from a laboratory at the National Institutes of Health in Bethesda. Galvin scooped it up for free. “Maryland is a well from which all this free technology just springs and pours out for anyone to drink from. is is the epicenter,” Galvin tells Site Selection. e Maryland/DC Metro region is home to one of the top life sciences clusters in the U.S., recently ranked No. in the nation by Genetic Engineering and Biotechnology News, behind only Boston, San Francisco and New York/New Jersey. Maryland is home to , life sciences businesses from pharmaceutical giants AstraZeneca, Autolus and GlaxoSmithKline to homegrown startups such as Pikesville-based Alavita Health, a medical technologies company. “ is is a fantastic location,” says Sathya Elumalai, Alavita’s CEO. “We’re close to NIH and we’re close enough to FDA to feel as though they’re our partner." The Place to BeAccess to federal institutions is but one of many valuable lures that have made Maryland the “epicenter” that Galvin speaks of. Among them:• Johns Hopkins University: Located in Baltimore, Johns Hopkins is the nation’s top academic recipient of research grant funding, and a proving ground for emerging biohealth by G ARY DAUGHTERSgar y.daug hter s @ site s ele c tion.c omJ S I T E S E L E C T I O N MAY 2019 211This Investment Profile was prepared under the auspices of Maryland Marketing Partnership. For more information, contact Sherri Diehl at 410-767-6835. On the web, go towww.commerce.maryland.gov.companies such as Paragon Biosciences, founded in and recently acquired for $. billion by Catalent Biologics. “Paragon was part of the incubator program at Johns Hopkins in its early days as a company,” CEO Pete Buzy tells Site Selection. “ is great opportunity to be part of such a strong scientifi c community provided us with the collaborative business ecosystem that small companies really need to grow.”• Unmatched Talent: Top talent fl ows not only from Johns Hopkins and the University System of Maryland, but from the state’s federal research labs, which provide a steady stream of post-doctoral scientists. Additionally, Maryland's community colleges provide training for entry-level biotechnologists. As a result, Maryland’s technology and science workforce ranked fi rst in the nation in the Milken Institute’s State Technology and Science Index. Kite, a biopharmaceutical company based in Santa Monica, California, announced plans in late April to build a new production facility in Maryland’s Frederick County, based largely on training opportunities for their employees at local colleges. “One of the critical components in them coming was the ability to continuously train their employees on the latest and greatest technologies,” says Bret Schreiber, senior director of the Offi ce of BioHealth & Life Sciences at the Maryland Department of Commerce.• Cost of Living and Business: “If you want to open up the same business in Silicon Valley,” says AGT’s Galvin, “you need to raise two or three times as much money. e cost of everything is higher there, especially employees.” Maryland’s cost of living, relative to San Francisco, New York and Boston, means lower salary requirements. Home prices in Maryland, for example, are comparable to those of studio apartments in the Bay area. Maryland’s stream of new college graduates helps to keep down costs, as well. “We’re a small company,” says Sathya Elumalai of Alavita, “so we can’t necessarily aff ord to hire someone with or years of experience. We’re getting students from Johns Hopkins and turning them into experts.”A State “Committed”Gov. Larry Hogan recently called biopharma “the backbone of Maryland’s economy” during a forum at the Gaithersburg headquarters of AstraZeneca. As such, the state government off ers a number of programs and incentives to boost the industry’s growth. e Maryland Biotechnology Investment Incentive Tax Credit allows for rebates equal to % of an eligible investment in qualifi ed Maryland biotech companies, up to $,. Montgomery County, home to the state’s highest concentration of life sciences companies, off ers a local biotech tax credit, the fi rst of its kind in the nation. In addition, the Maryland Technology Development Corporation facilitates technology transfer from academic and federal labs into the private sector with seed funding, technical assistance and entrepreneurial support programs. Early-stage equity is available through the Maryland Venture Fund.“ e state is committed,” says Galvin. “I’m a true believer in the future of gene and cell therapy in Maryland. You’re going to see that everybody’s going to have a footprint here.” Maryland is a well from which all this free technology just springs…”−Jeff Galvin, Founder & CEO American Gene Technologies.Six-State Region Packs a PunchGovernor Ned Lamont in February unveiled key components of his vision to transform the state’s economic development strategy: aggressive business recruitment; collaborative work across agencies to better support existing businesses and onboard new ones; as well as a strategic and long-term economic policy focus, including in the important area of Opportunity Zones. To execute on this vision, he nominated David Lehman, a partner with Goldman Sachs, to serve in dual roles as the Commissioner of the Department of Economic and Community Development (DECD) and as the Governor’s Senior Economic Advisor.Governor Lamont also announced that two of Connecticut’s principal economic development entities — the nonprofit Connecticut Economic Resource Center, Inc. (CERC) and DECD — will form an innovative public-private partnership known as the Partnership to Advance the Connecticut of Tomorrow (PACT). Through this collaboration, CERC will function as the outward-facing recruitment arm on behalf of the state, and DECD will continue to support, promote, and advocate for existing businesses while also serving as the central resource to help new businesses navigate state and local government to minimize lag time, enhance services, and expedite relocation. As part of his mandate, Lehman will ensure tight alignment between CERC and DECD. by MARK ARENDmar k .ar end@ site s ele c tion.c omNEW ENGLANDA roundup of economic development happenings in some former colonies.CT212 MAY 2019 SI T E S E L E C T IO NNew Governor Restructures State’s Outreach to Capital Investors The University of Maine Advanced Structures and Composites Center (UMaine Composites Center) has received $500,000 from the Maine Technology Institute (MTI) to form a technology cluster to help Maine boatbuilders explore how large-scale 3D printing using economical, wood-filled plastics can provide the industry with a competitive advantage. The cluster brings together the expertise of UMaine researchers and marine industry leaders to further develop and commercialize 3D printing, or additive manufacturing, to benefit boatbuilders in the state.Widespread adoption of large-scale additive manufacturing has been tempered by the high cost of the 3D printers and the cost of feedstock materials. To address the high cost of large-scale 3D printing, the UMaine Composites Center will develop a range of economical wood-filled materials for composite tooling applications. The use of the wood-based fillers significantly reduces the cost and increases the stiffness and toughness of the material, while reducing the environmental impact and improving recyclability.“The combination of additive manufacturing and cost-effective, bio-filled materials is a potential game-changer for Maine’s boatbuilding industry by reducing the cost of marine tooling by as much as 50 percent,” says James Anderson, senior research and development program manager at the UMaine Composites Center. “Maine boatbuilders cannot absorb the cost of acquiring a large-scale 3D printer and testing new feedstock materials. The UMaine Composites Center and the Maine boatbuilding industry share a tradition of innovation. We have the tools and knowledge to help Maine boatbuilders increase productivity, reduce costs and, ultimately, continue their tradition of excellence in the boatbuilding industry.” MAMEThe City Council of Taunton voted in early April to grant a special permit to Commonwealth Alternative Care (CAC), a wholly owned subsidiary of TILT Holdings Inc., to operate an adult-use cannabis manufacturing facility. TILT is a leading provider of products and services to businesses operating in the cannabis industry. The permit allows a 19,602-sq.-ft. (1,820-sq.-m.) manufacturing facility adjacent to TILT’s existing cultivation, processing and dispensary facility. “As the Massachusetts adult-use market develops, this capacity expansion positions TILT to provide manufacturing products and services to brands across the country as they seek to enter this growing market,” said Alex Coleman, chief executive officer of TILT. “This expansion will also bring new, well-paying jobs and economic development opportunities to the Taunton area while increasing the city’s tax revenue.”Scheduled to open in spring 2020, the new facility will enhance the company’s capacity to produce infused cannabis products at scale. The expansion also will enable the implementation of high-end automated manufacturing and packaging equipment, further allowing TILT to deliver end-to-end services and customer solutions to cannabis businesses. Maine Boatbuilders’ Secret WeaponInfused Cannabis Facility Gets a Green Light S I T E S E L E C T I O N MAY 2019 213BAE Systems, the third-largest defense contractor in the world, is expanding into Manchester, New Hampshire, the state’s largest city. In February, it signed a lease for an approximately 200,000-sq.-ft. (18,580 sq.-m.) campus that will allow for significant expansion in the Granite State. The new space will add to the company’s large New Hampshire presence, which includes state-of-the-art facilities in Hudson and Nashua and more than 6,000 people at multiple facilities across the state. When fully staffed, the campus will house up to 800 employees primarily focused on supporting the company’s electronic warfare programs.“BAE Systems has a long and rich history in New Hampshire,” said Ray Brousseau, vice president and deputy general manager at BAE Systems’ Electronic Systems sector. “Our investment in the new Manchester campus will enable us to tap into the talented local workforce to expand our capacity and improve our ability to deliver high-quality products to the warfighter.”BAE Systems’ Electronic Systems sector, headquartered in Nashua, hired nearly 2,000 people in 2018. Its electronic warfare business provides a massive impact on the communities where it operates — providing more than $450 million in salaries and benefits to more than 3,100 employees in 16 states. Over the past several years, the sector has invested more than $100 million to expand manufacturing capacity to meet increasing production rates of the company’s top programs and deliver on its commitments to its customers — with a strong focus on its electronic warfare business. Gotham Greens is building its latest urban farming facility — a 110,000-sq.-ft. (10,200-sq.-m.) state-of-the-art greenhouse farm — on the banks of the Woonasquatucket River, in Providence, Rhode Island. Set to open in fall 2019, it will create approximately 60 permanent jobs. Operating year-round, the facility will supply residents, restaurants and foodservice customers of Providence and the greater New England region with 10 million heads annually of farm-fresh lettuce and leafy greens grown with minimal environmental impact. The site was once home to Providence Base Works — a bustling General Electric facility that employed hundreds of workers to manufacture lamp bases. “Gotham Greens is a shining example of the type of innovative, sustainable, and community-minded businesses we envision will help to reinvigorate the Woonasquatucket River Corridor,” said Providence Mayor Jorge O. Elorza. “By supplying fresh, healthy produce and well-paying jobs for Providence residents, Gotham Greens will serve as a driver of economic growth in the capital city while generating a creative source of energy that will help better connect the neighborhoods along the River.” The Brooklyn, New York–based company will partner with community organizations to increase access to healthy foods and support wellness and nutrition education, ag-tech research and environmental education programs across the region. Since its launch in 2011, Gotham Greens has grown from a single urban rooftop greenhouse in Brooklyn to a multi-state indoor farming leader and one of the largest hydroponic leafy greens producers in North America. NHRIDefense Contractor Expands in the Granite StateProvidence Makes Room for Downtown Farming214 MAY 2019 SI T E S E L E C T IO NChroma Technology Corp. completed a $22-million expansion in late 2018 that will add or retain 133 jobs in Bellows Falls. In 2016, Chroma — a local optical filter manufacturer that distributes its product all over the world — was approved by the state of Vermont for a 37,000-sq.-ft. (3,400-sq.-m.) expansion to its facilities, adding about 25 new jobs as well as allowing Chroma to retain its existing 113 jobs in the region. Prior to the expansion, the growing manufacturer had been struggling to increase capacity in its existing space. To support Chroma staying in Bellows Falls, the Brattleboro Development Credit Corp. provided regional project development leadership, spearheading the predevelopment and development efforts necessary to advance the project, and ultimately, leading the efforts to ensure adequate capital was available to support the expansion project, working with the Agency of Commerce and Community Development and Governor’s Office to facilitate funds for the project.Eventually, four different local and state funding sources were utilized: a loan from the Town of Rockingham, funding from the Windham County Economic Development Program, a grant from the Community Development Block Grant (CDBG) program and a loan from the Vermont Economic Development Authority. VTTeamwork Facilitates Filter Manufacturer’s Expansion S I T E S E L E C T I O N MAY 2019 215216 MAY 2019 SI T E S E L E C T IO NIf you thought that a premium business address in Houston was hard to fi nd and even harder to aff ord, think again. e Hobby Area District at William P. Hobby Airport in Houston has a solution for you.Contemporary, recently renovated offi ce space just minutes from the runway can be found in the Hobby Area District at a fraction of the cost tenants would face in premium locations like the Houston Central Business District and the Galleria.If you haven’t heard of the Hobby Area District, you’re not alone. Until recently, the special purpose management district within the City of Houston had kept a low profi le, but that is changing. After adopting an ambitious strategic plan, the District’s leaders are now pursuing a mission to “establish the Hobby Area District as an attractive, connected, talented and celebrated place to invest and live.” e plan also seeks to position the District as “a celebrated place where commerce and community thrive.” anks to the redoubled eff orts of many, commerce is already thriving. “Powell Industries is our largest employer, and Aviation Institute Maintenance is a school at Hobby that trains and produces airline mechanics and other technicians,” says Regina Lindsey, director of economic and community development for the Hobby Area District. “ e District covers square miles. We have Hobby Airport and land adjacent to rail. Businesses here tend to be manufacturing, MROs, retail and service, etc. And we are close to the Port of Houston. Our goal is to introduce the District, make people aware of it, and help businesses get established here.”Upward of , workers are employed daily in the District, and by , there will be an estimated , jobs in the area. Manufacturing and transportation jobs will account for close to half of these positions. e primary Hobby Area District labor shed is an area with , residents, with projections for up to , residents by . e District has identifi ed the following three sectors as primed for employment growth:INVESTMENT PROFILE:HOBBY AREA DISTRICTHouston, We Have a SolutionHouston, We Have a Solutionby RON S TARNERr on. s t ar ner @ site s ele c tion.c omBusinesses needing access to the airport and Gulf ports increasingly call Hobby home.VibePhoto courtesy of Hayman Advisors LLC S I T E S E L E C T I O N MAY 2019 217This Investment Profile was prepared under the auspices of the Hobby Area District. For more information, contact Gabby Dirden at 832-982-2036 or by email at gdirden@hadistrict.org. On the web, go to www.hadistrict.org.• Gateway Operations: Distribution and logistics, retail and hospitality, and related space users will be able to take advantage of access to the fastest-growing airport in the U.S.• Professional Services: Engineering and back-offi ce support operations have been growing steadily in recent years, with total employment rising by % from to in the District.• Advanced Manufacturing: Metalworking and machinery manufacturing are prime targets for the District. e Pew Research Center forecasts that domestic output in these sectors has increased % over the last years, with these fi elds already exhibiting strength in the Hobby area. e good news is that the Hobby Area District has space to accommodate new tenants, and that space is aff ordable. “Hobby is one of the smaller submarkets in the southwest corridor of Houston,” says Robert Hayman, principal of Hayman Advisors LLC in Houston. “Most buildings are under , square feet and rents are in the $ to $ per-square-foot range — a good value compared to Houston CBD and the Galleria.” e ,-sq.-ft. Vibe Hobby building has been modernized and rehabbed for tenants seeking an upscale Hobby address. “ e building has all new systems,” says Hayman. “We’re adding more landscaping for privacy. We’re redoing the interior. We also have some shared space, mostly executive suite space, that is fully leased now. But we’re considering adding more space. A new user could take up to , square feet upstairs.”Hayman adds that “the chief selling points of an address in the Hobby Area District are that it is conveniently located between Downtown and the Clear Lake area; there are lots of opportunities for tech companies and government users; you can save quite a bit of money on airport parking and rent; you can have the same style of offi ce product for a to % discount; and you have the benefi t of close proximity to the Port of Houston and the Houston Ship Channel.”Liliana Rambo, general manager of Hobby Airport, says that when Southwest Airlines decided to have international fl ights going out of Hobby to Central and South America in , it opened a whole new era for business travel in south Houston. “Southwest has also put a lot of eff ort into expanding their cargo operations going to Central and South America,” Rambo says. “We have six FBOs at Hobby, and because of our growth many more are looking to come to Hobby.”With recent upgrades and expansions at Hobby Airport, getting to your fi nal destination is easier than ever too. “Hobby Airport rivals Bush now,” says Hayman. “Within fi ve minutes of the Vibe Building, you can be at the drop-off gate at the airport. We are literally at the edge of the runway. You can’t get any closer than that.” “Within fi ve minutes of the Vibe Building, you can be at the drop-off gate at the airport. We are literally at the edge of the runway. You can’t get any closer than that.”— Robert Hayman, Principal, Hayman Advisors LLCNext >