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Economic Development Project News
Tim
Anstine will be meeting next week with David Carver of the Pennsylvania Economic
Development Association, and representatives the Pennsylvania Association of Builders
and Contractors and the Department of Labor and Industry, to discuss a possible
legislative response to the recent Pennsylvania Supreme Court decision subjecting
tax increment finance projects to prevailing wage requirements. Following the
Supreme Court's decision the Department of Community and Economic Development
announced that it would impose the prevailing wage requirement on all construction
projects funded with the state's economic development programs. Another possible
move would be to ask the Attorney General for his opinion as to the applicability
of the Supreme Court decision, which only addressed the prevailing wage issue
in the context of tax increment financing, to other state economic development
programs. Several decades ago the Attorney General opined that PIDA projects were
not subject to prevailing wage requirements.
First
REDDI Project Funded in Carlisle
The first project to be funded by the Economic Development Administration under
REDDI’s auspices has received a $685,000 grant to finance the demolition of an
older section of the Murata Business Center property at 453 Lincoln Street in
Carlisle Borough and the construction of a 17,000 square foot new building on
the cleared site. The new building will allow the incubator to expand to a total
square footage of 32,000 square feet, an optimum size from an operating standpoint.
Ethanol Plant Moving Forward
A coalition of Pennsylvania and Maryland farmers have formed Penn Mar LLC in order
to move ahead with the development of a $50 million ethanol production facility,
The facility will produce ethanol and other produces from corn produced in south-central
Pennsylvania to be located somewhere in south-central Pennsylvania. Penn Mar LLC
grew out of the ethanol steering committee spear-headed by REDDI. REDDI will continue
to play a key role as the project manager of the ethanol project, and is providing
the services of its Agricultural Economic Development Specialist, Scott Welsh,
to Penn Mar LLC. The project will now move into the capital-formation stage, with
final site selection likely to occur within the next 3-4 months.
Report On Biodiesel To Be Revisited
AUS Consultants delivered the results of a study evaluating the feasibility of
producing biodiesel in south-central Pennsylvania. The study’s objective was to
determine the potential of biodiesel as a method of adding value to soybean production
in the region. Biodiesel is a renewable fuel that can be made from vegetable oils,
animal fats, greases, and recycled cooking oils. The study grew out of the Agricultural
Economic Development Initiative of REDDI and the York County Economic Development
Corporation, and the study was funded by the Pennsylvania Soybean Promotion Board.
According to the study, the region has adequate feedstock supply and potential
market (based on current diesel consumption) to support the development of a 10
million gallon plant; however, based upon the assumptions in the study, the present
economics of production using soybean oil are not favorable without subsidy. This
may not be the last word, however, as the assumptions contained in the study are
being re-examined. In any event, REDDI will continue to monitor the development
of the biodiesel industry as part of its Agriculture Economic Development Initiative.
REDDI To Assist LDD Organization
REDDI has agreed to partner with the Local Development District Association of
Pennsylvania to fulfill the Municipal Technology Assistance program in south-central
and south-eastern Pennsylvania. MTAP was started in 2000, provides technical assistance,
computer hardware and training to local governments. The LDDAP represents the
seven local development districts which comprise the 52 Appalachian region counties
in northern, western and central Pennsylvania.
Nanotechnology and Nanofabrication
REDDI is exploring coalitions with industry and academia to integrate nanotechnology
and nanofabrication into the area’s economic development activities. Talks are
already underway among REDDI officials and several industries and universities
in the region to develop a strategy for insuring that our region’s industries
ride the crest of this new technological wave. Dr. Jeffrey M. Catchmark of Penn
State University spoke to the Board of Directors of REDDI at their meeting on
October 1, 2002, and presented a fascinating introduction to the field for laymen.
Essentially, nanotechnology is the construction of materials and devices from
the “bottom up” with every atom in a designed location. “Nanofabrication” is the
use of this technology to produce systems of molecular machines. Nanotechnology
has been called “the next industrial revolution” and Dr. Catchmark made a convincing
case that virtually every industry will be revolutionized as this technology takes
hold. Fortunately, Penn State has one of the finest training programs in the world
in this field, and so our region is better-positioned than most to take an early
lead in the spread of this technology.
Broad Band Committee
REDDI members are visiting communities to understand how “e-ready” the region
is to compete in the marketplace. Recently, REDDI members visited Kutztown, Pennsylvania
to see and hear about that community’s innovative broadband initiative. In Kutztown,
nearly every house in the municipality has access to high-speed internet, cable
TV, etc., via a fiber optics wiring structure owned by the municipality, rather
than a private utility. REDDI members have scheduled visits to other communities
that have developed innovative broadband initiatives to create a competitive advantage
for their communities.
REDDI President Russ Montgomery said: “Economic development and the digital divide
go hand-in-hand for many reasons. Regions with the tools and skills to compete
in the digital economy are at a distinct advantage over regions that lack these
tools and skills. In many ways, the situation in a given region can build upon
itself, for better or for worse. A region with a well educated, technology-literate
population is more likely to attract and sustain new businesses, and these new
businesses in turn attract more well-educated, technology-literate people into
the area. Conversely, a region that lacks reliable access to technology and the
skills to use it is less likely to attract and sustain new businesses that could
potentially serve as a catalyst to economic prosperity. Simply put, if regions
are to remain competitive in attracting, retaining and developing businesses in
today's economy, they must develop modern telecommunications facilities and
cultivate a well-trained workforce to stay viable.”
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