to view the 2012-2013 Annual Report

Central Maine Growth Council
Annual Report 2012-2013
Growing Trade and Global Outreach &
Enterprise Growth and Expansion
Central Maine Growth Council
50 Elm Street
Waterville, ME 04901
(207) 680-7300 Fax: (207) 877-0087
www.centralmaine.org
[email protected]
Central Maine Growth Council
Annual Report 2012-2013
Executive Summary
The Central Maine Growth Council (CGMC) was founded in 2001 by the Mid-Maine
Chamber of Commerce and area municipal managers. It is a public-private, nonprofit partnership committed to the economic development of Central Maine. This
primarily includes the communities of Waterville, Winslow, and Fairfield. CMGC is
the leading catalyst and resource for economic development in the Central Maine
region, dedicated to fostering a robust regional economy through successful
collaborative partnerships among businesses, government, academic institutions,
arts and cultural agencies, and residents. CMGC has a 17-member Board of
Directors, including five ex-officio members.
In July 2011, Darryl Sterling was hired as the new Executive Director, bringing
enthusiasm and energy to the organization and local communities. It also brought a
shift in focus and services of the organization based on economic changes, needs of
stakeholders and a strong desire to bring attention and business growth and
development to Central Maine. Darryl and the Board of Directors embarked on a
strategic planning effort which resulted in adoption of the 2012 Strategic Plan.
The Plan outlines the changing focus of the Central Maine Growth Council for the
next two years. Goals and priorities established include: (1) Organization &
Administration. (2) Financial Stability & Sustainability; (3) Alliances &
Partnerships, and (4) Regional Growth Strategy. As we achieve the outlined steps of
the Plan we should see a corresponding growth and strengthening of the economy of
Central Maine.
Mission Statement
“Our mission is to foster a robust regional economy fueled by a genuine collaboration
among governments, businesses, academic institutions, arts and cultural agencies
and residents, resulting in a highly desirable multi-town community in which to
enjoy an outstanding work/life balance.”
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2012-2013 Board of Directors
John Dalton, Chair (2014)
Inland Hospital
Mike Heavener, Vice-Chair
Town of Winslow
Beth Gibbs, Treasurer (2013)
Thomas College
Lucille Zelenkewich, Secretary (2014)
People's United Bank
Barbara Woodlee (2014): Kennebec Valley Community College
Joshua Reny: Town of Fairfield
Diane Bryan (2014): Waterville Opera House
Chris Gaunce (2015): Central Maine Motors Auto Group
Mike Roy: City of Waterville
Michael Runser (2014): Valley Distributors
Roger Woolsey (2013): Colby College
Allan Rancourt (2015): Kennebec Federal Savings Bank
Ex-Officio Board Members
Darryl Sterling, Executive Director: Central Maine Growth Council
Ken Young, Executive Director: Kennebec Valley Council of Governments
Jim Batey, Executive Director: Somerset Economic Development Corp.
Kimberly Lindlof, CEO & President: Mid-Maine Chamber of Commerce
Brad Jackson, Executive Director: KRDA/First Park
Message from John Dalton, Chair, Board of Directors and
Darryl Sterling, Executive Director
2012-2013 brought about an organizational shift in focus and services based on
economic changes and the needs of stakeholders. CMGC achieved a much broader
national and international reach to make the region more attractive for business
growth and investment. CMGC’s banner accomplishments include securing
reissuance of Foreign Trade Zone 186 for the City of Waterville and garnering nearly
$1,000,000 in CDBG grants for business expansion and job creation. We thank the
Board of Directors, CMGC investors, businesses, organizations and individuals for
advice, counsel, and support. We enthusiastically look forward to a successful 2014!
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Central Maine Growth Council Staff
Darryl Sterling
Executive Director
Darryl Sterling is the Executive Director for the Central Maine
Growth Council. Darryl brings 25 years of municipal, non-profit,
and private sector experience in economic, community, and
business development. Darryl serves on many boards and is
President of the Maine Community Development Association. He
works to foster economic development activities that will
strengthen businesses and revitalize the Central Maine economy through productive
partnerships and strategic alliances. Darryl received the Governor’s Award for
CDBG Administrator of the Year in August 2009. The Maine Department of
Community Development cited him as a 2012 featured administrator.
Cody Leland-Community Research & Development
Cody is the newest member of the staff. Cody is the Community Research and
Development Intern. Cody is currently enrolled in Thomas College’s Accelerated
Masters of Business Administration program. Cody received his Bachelor of Arts in
Business Management from Northland College.
Nicole Auger-Data & Finance
Nicole is the Data and Finance Intern. Nicole is currently enrolled in Thomas
College’s Accelerated Masters of Business Administration program. Nicole received
her Bachelor of Science in Accounting with a Forensics Concentration.
Shaw Weeks-Marketing & Media
Shaw is the Marketing and Media Intern. Shaw is currently enrolled in Thomas
College’s Accelerated Masters of Business Administration program. Shaw received
his Bachelor of Arts in Political Science from the University of Southern Maine.
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Central Maine Growth Council Secures Foreign Trade Zone
Thanks to the hard work of CMGC, Foreign Trade Zone (FTZ) #186 has been reissued certification from the Foreign Trade Zone Board as of June 17, 2013. As one
of the four FTZs in the State, it puts Waterville and surrounding communities on
the cusp of a logistical and manufacturing boom. Its major beneficiaries will include
companies dealing with foreign imports, exports, and value-added production, but it
will provide additional benefits to companies who
require cutting-edge storage and logistical capacity.
The City of Waterville will serve as the grantee of
the FTZ, working in close association with CMGC’s
Executive Director, Darryl Sterling. A FTZ does a
number of things that allow U.S. businesses to
create jobs and better compete with overseas
competition. FTZs are designated areas in which
U.S. tariff laws and Customs procedures are not
applicable. FTZs also allow manufacturers options
in paying taxes and duties on goods or components imported to the U.S and
eliminates taxes and duties if the goods are exported, regardless the origin of initial
components. There are a number of other logistical benefits to a FTZ that improve a
business’s bottom line. For more information or to learn who can benefit from
obtaining FTZ status contact CMGC.
CMGC is already in the process of coordinating the FTZ and hopes to attract new
businesses to the LaFleur Airport while expanding FTZ status to other localities in
adjacent communities. For now the Airport and Airport Business Park serve as the
hub of the FTZ, a multi-user location. Companies outside the designated Zone
wishing to gain the benefits of the FTZ can apply for Sub-Zone status. Sub-Zones
allow for existing manufacturing, production, warehousing, and other facilities to
realize the benefits of the FTZ without having to relocate to the main Zone.
According to the National Association of Foreign Trade Zones (NAFTZ), Alternative
Site Framework (ASF) and Usage-Driven Sites (other types of FTZ) account for the
vast majority of FTZ activities. CMGC is already in the process of adapting
Waterville’s FTZ to the Alternate Site Framework model, in collaboration with a
number of businesses, municipalities and other not for profits. New regulatory
structures adopted by the FTZ Board expedite the application process, with some
applicants being approved within as little as 30 days, according to NAFTZ.
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June 19th Business after Hours at the Robert LaFleur Airport
The LaFleur Airport, located just off KMD in Waterville, played host to the Mid
Maine Chamber of Commerce Business after Hours on June 19th, 2013. The airport
made a great venue for the event, especially after the beautiful renovations to its
interior. Other upgrades
to the Airport were
highlighted during the
event, generating a
renewed interest in its
potential to be a real
economic driver for the
area. More than 200
guests were in
attendance, having
access to flight
simulators, scenic ride
providers, and of course
the wonderful catering
provided by Silver Street
Tavern. The event was
co-sponsored by the
Central Maine Growth
Council and the City of Waterville. CMGC is appreciative of local organizations and
business who graciously donated some really amazing door prizes, including a scenic
flight for two from Air Link. We’d also like to thank all who attended. For more
information on the event, prizes donated, and more pictures please visit CMGC’s
Facebook page.
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Trade Shows
Shaw Weeks,
CMGC Intern at
the B2B Showcase
at Colby College on
March 27, 2013
Over 40 companies visited the CMGC booth at the event.
Darryl Sterling, Executive
Director at the MEREDA
Trade Show in Portland on
January 24, 2013
Over 100 companies visited the CMGC booth at
the Maine Real Estate & Development
Association Trade Show.
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International Trade Symposium
On October 2nd, the Central Maine Growth Council presented the International
Trade Symposium: Growing Trade and Global Outreach in Central Maine. The event
was hosted by Colby College, co-hosted by
the Maine International Trade Center
and sponsored by TD Bank. The turnout
for the event was great! Over 65
individuals representing many
organizations were in attendance. This
two part event began with Janine Cary,
President of the Maine International
Trade Center, followed by a Global
Finance Panel conducted by TD Bank.
The second half of the event highlighted
our new colleagues from Tennessee, Bill
Fisher, Vice President of Compliance of American Global Logistics and Wayne
Coleman, President of FTZ Networks. Perry Newman, President and Founder of
Atlantica Group LLC; concluded the event with a discussion on soft landing
international business incubators to increase Foreign Direct Investment.
Here are some reactions from the participants:
“I found all of the presentations useful and informative, and the networking
opportunities enjoyable and productive.”
- Perry Newman, Atlantica Group LLC
“It was the perfect combination of business, banking and governmental agencies,
providing timely and valuable information on International Trade for the Mid-Maine
business community. Bill and I were honored to be a part of this great event.”
-Wayne Coleman, FTZ Networks
“Kudos to you and your team for a job well done”
- Janine Cary, MITC
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Sample of Central Maine Growth Council Projects
Orion Rope Works, Inc.
Orion Rope Works, the largest American manufacturer of braided rope, moved to
Maine in 2001 after purchasing the bankrupt Crowe Rope. Following the
organization’s relocation to Maine, Orion Rope Works went through significant
operational changes. CMGC’s Executive
Director conducted a Business Visitation
interview and survey with the company
and found that gap funding was necessary
for future expansion. He secured a
$400,000 CDBG Economic Development
Program grant for the Town of Winslow
on behalf of Orion Rope Works to expand
the Winslow plant. This grant allowed for
the purchase of additional equipment and
expansion of their product line. They were
also able to acquire the assets of their largest foreign competitor, bringing 60 new
jobs back to Winslow, Maine. Additionally, CMGC aided in writing a $131,000 grant
for the town on behalf of Orion Rope Works for building renovations. These
improvements included HVAC, roofing, and sewer pump updates. This renovation
project added 6 new jobs!
“Having Darryl’s expertise to work with businesses and provide access to resources
was instrumental in making that happen. He kept the people who needed to be there
around the table. The result is additional jobs, which is not only good for Orion and
the Town of Winslow, but good for the entire region.”
- Mike Heavener, Town Manager.
Bragdon Farm, LLC
The Central Maine Growth Council and Jennifer Kierstead Consulting submitted a
Community Development Block Grant for the City
of Waterville on behalf of Bragdon Farm LLC. The
collaborative effort secured a $300,000 CDBG grant
to purchase equipment and add funds for cash flow
to ramp up the production of the hay log, a carbonneutral alternative to burning traditional wood.
The hay log product adds real value to damaged
hay that can no longer be sold as feed. Bragdon
Farm LLC will be moving from Vassalboro to the
old Harris Baking Co. property in downtown
Waterville for their operations. The company will be adding 10 new jobs to
Waterville with plans for future expansion!
“Farmers are hanging on by a thread because of rising costs. The hay log technology
has the potential to add significant value to hay that cannot be sold as animal feed” –
- Peter Bragdon
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Kennebec Valley Community College: Precision Machining Technology
Program Equipment
The Central Maine Growth Council has submitted a CDBG Workforce Development
Program grant for the Town of Fairfield on behalf of KVCC. The grant approval is
pending but CMGC is optimistic of a positive outcome from the Maine Department
of Economic & Community
Development. The $100,000
grant would be used to
purchase new equipment for
the Precision Machining
Technology Program at KVCC.
This training program allows
15-20 low income students to
have a direct pathway to good
paying jobs with companies
such as Mid-State Machine
and Kennebec Technologies. A
portion of the grant will be used to assist students with acquiring computer and
software upgrades and offset their financial burden. The goal of this program is to
fill the skills gap in this industry and provide high paying jobs in the area.
Other CMGC Accomplishments
1. CMGC is collaborating with area businesses, colleges, and organizations to
launch a consortium for a local entrepreneurial network to include a soft
landing business incubator in the region.
2. With the construction of 80 miles of natural gas pipeline by Summit Natural
Gas in Central Maine, the area is positioned to establish itself as a
competitive energy cost region. CMGC recognizes this opportunity to
incentivize investment and business expansion and job creation in the area.
3. As a direct result of CMGC’s efforts; 100 jobs were created with more jobs
coming!
4. Created and distributed the organization’s newsletter, online multimedia
communications, and events planning.
5. Established online presence across a variety of platforms in addition to the
new website.
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Facebook
Twitter
LinkedIn
Survey Monkey
Mail Chimp
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WEALTH Strategy from the 2012 CMGC Strategic Plan
Workforce & Education
 Local, targeted survey with more general data from DOL
 Partnership/sponsorship of workforce training programs
 Build strong alliances with schools to build a strong workforce
Entrepreneurship & Arts/Culture
 Training & leadership
 Commercialization assistance
 Grant availability, grant writing & access to capital
 Partner with downtown leaders to promote the unique offerings and tours
 Seek events such as the Quebec bike tour to bring activities to the area
 Market specific recreational possibilities of the area-different from tourism
 Promote Farmers’ Markets
 Promote the “Creative Economy” component
Agriculture
 Farming (fruits, vegetables, dairy, meat)
 Food processing & value added food product development
 Food distribution & food security; marketing and branding
 Breweries/wineries/distilleries
Logistics & Transportation
 Develop airport/railways/waterways as regional logistical hub
 Promote Airport FTZ Site Development
Technology & Energy
 Precision manufacturing
 Laboratories & diagnostic
 Competitive energy: natural gas & energy districts
 Energy alternatives; research & development
 Computer/software development companies
 Health information storage & management
Health Care
 Business development/attraction of health-care support services and related
businesses
 Care facilities
 Educational opportunities
 Wellness activities and institutions
There is more to our “WEALTH” Strategy than just an acronym. It represents work
in the trenches, creating opportunities, marketing our region, and connecting people
with resources. At times we will take the lead in driving initiatives, and at other
times, we will help clear the path for others who are leading positive change.
Economic growth and stability is a collaboration that will require the efforts of many
to guarantee success.
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Budget Statistics FY 2012-2013
CMGC Approved Revenues $146,300
Municipal Dues Income
Private Sector Income
Grants/Other Income
Miscellaneous Income
Fee Based Services
Interest
CMGC Approved Expenses
$146,300
Salary- Executive Director
Wages- Interns/ Support Staff
Benefits
Payroll Processing
Payroll Taxes
Marketing-Advertising/Materials
Marketing-Conferences/Trade
Shows
Internet/Web Expense
Office Supplies
Rent
Equip. Rental/Lease
Phone
Prof. Development/Training
Dues/Membership/Subs
Insurances (liability, WC, etc.)
Postage & Delivery
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Investors
Leader: $10,000-$20,000 +
Vested in Our Communities
City of Waterville
Colby College
Town of Winslow
Town of Fairfield
Organizer: $5,000-$9,999
Removing Obstacles to Growth
Inland Hospital
Maine General Hospital
Manager: $2,000-$4,999
Making Inroads
Kennebec Federal Savings
T-Mobile
Central Maine Motors
Delta Ambulance
TD Bank
Supporter: $500
Creating the Path for Future
Bangor Savings Bank
Thomas College
Kennebec Savings Bank
Maine State CU
Days Jewelers
Hammond Tractor, Inc.
Waterville Wal-Mart
KRDA/First Park
Laying the Foundation
Coldwell-Banker Plourde
Kennebec Valley CC
Hammond Lumber
GHM Agency
Ware-Butler, Inc.
People's United Bank
Valley Distributors
KSW FC Union
Hampton Inn
Taconnet FCU
Trafton Properties
Marden’s
SBS Carbon Copy
Catharsis Media
William Tuck Development Corp.
Donator: Other Amounts
Non-Profit: $300
Paver: $501 to $1,999
Any Donation Accepted
Mid-Maine Chamber
Affiliated Realty
Waterville Opera House
Dr. Gary Ferguson
Maine International Trade Center
Care & Comfort
Kennebec Water District
Marden, Dubord, Bernier, & Stevens
O'Donnell, Lee, McCowan & Phillips, LLC
Nicholson, Michaud, & Company, CPA
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Marketing & Media-Business Attraction
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CMGC Rebranding Campaign
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Featured Partners
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