2013 Annual Report

2013
Annual Report
Southern Aroostook Development Corporation
PO Box 783 • Houlton, ME 04730 • (207) 521-0157 • [email protected]
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VISION STATEMENT
Southern Aroostook Development Corporation sees southern
Aroostook County as an economically vibrant and prosperous
community in which to live, work and play.
MISSION STATEMENT
The mission of Southern Aroostook Development Corporation
is to support the vision of an economically progressive community
by coordinating, promoting and guiding new business creation
in southern Aroostook County.
Back ground photo – “Aroostook County Farm Beauty” by Mooers Realty
Cover Photos – Left to Right, Top to Bottom: Fred Grant (R) receiving Entrepreneur of the
Year Runner up by Jon McLaughlin, President of LEAD, Photo Courtesy of Jon Gulliver,
NMDC; John A. Millar Civic Center – site of the SADC Alternative Energy Expo;
Mrs. Dallas Henderson and son, Sam (R) with Jon McLaughlin at the unveiling of
the contributors plaque for the Dallas Memorial Sign, Photo courtesy of Joe Cyr,
Houlton Pioneer Times; Couple Chats with Andrew McPartland of J.H. McPartland
& Sons, SADC Alternative Heating Expo, Photo Courtesy of Gloria Austin, Houlton Pioneer
Times; Typical Basket of Local Grown Produce, The County Co-op and Farm Store
is formed; Stock Photo; North Street Water & Sewer Project completed in summer of
2013: Family Learns About Hybrid Electric Hot Water Heaters from Jon
Harbison of Harbison Plumbing, Heating & Air Conditioning, SADC Alternative
Heating Expo, Photo Courtesy of Gloria Austin, Houlton Pioneer Times.
Season’s Greetings!
Letter From The Chair...
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Dear Friends, Stakeholders and Invited Guests,
As we celebrate the approaching holidays and look forward to
the New Year, we give thanks for another successful year at
Southern Aroostook Development Corporation. We realize
that we would not have that success without you, our friends
and supporters.
As I said in my letter last year, we began 2013 knowing
it was a milestone for SADC. It was our fifteenth
anniversary. 2013 was a year of delivering solutions, service
and value to our friends and supporters throughout the region.
2013 closes with many important events having unfolded. The North Street sewer and
water line extension was completed, opening up several hundreds of acres of property to
future expansion possibilities. Businesses have expanded. One such example is the award
winning Spring Break Maple and Honey, which just broke ground on an expansion that will
double the size of their maple production area. The further development of the bio-mass
business cluster was evident this year with the installation of many pellet boilers in area
residences and businesses such as the Temple Theater, Saint Mary’s Catholic Church and
several apartment houses within the region. New business creation continued with welcomed additions to the area such as Amato’s restaurant on North Street.
While our rural region of Maine still suffers from the effects of the economic downturn, we
seem to have weathered it as well as most areas of rural Maine. The work we are doing
now will no doubt pay off dividends when the economy once again starts warming up within
the next year or so. As we have seen in the past, our region is slower to enter into a recession and therefore lags coming out, but the southern part of the state seems to be recovering and therefore we should be seeing similar results in the rural areas over the next
several months.
Out-migration of the area’s youth continues to be an issue that will not be solved overnight,
but partnering with Aroostook Partnerships for Progress, in working to rebuild the 18-44
age workforce, is one of SADC’s priorities. SADC has worked with them on many initiatives this year. One such program is to revamp the Junior Achievement program to include
students in Junior High so that they can learn more about what is within the region for opportunities.
With challenges come opportunities and we at SADC truly feel that Houlton and the Southern Aroostook region are “Worth a Visit, Worth a Lifetime!”
Terry Wade, President & Chairman
Southern Aroostook Development Corp.
SADC Timeline...
Katahdin Valley Health Center completes major renovations including new dental clinic.
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State Farm Agent, Doug Geurette, opens new office on Military St.
Tractor Supply Center opens new store on North St.
Mac’s Trading Post purchases vacant building on North St. and relocates to the larger
space. Soucy’s Auto Repair, a new business, opens in adjacent bay.
First Wind announces reapplication of wind farm project in Oakfield to a 50 turbine,
150 Mw project, plus substations and new transmission lines.
Bond passed overwhelmingly to support North Street water & sewer
project.
County Yankee moved into newly constructed store on Military St.
Business increases.
Military Street Baptist Church’s new church construction project
on Drake’s Hill on schedule.
The County Federal Credit Union constructs new facilities on
North St. Opened first of 2013.
Nortrax expanded facility on North St.
SADC hosted successful seven week alternative energy
workshop event.
SADC constructed Dallas Henderson Memorial Sign on
Dunn Furniture Company property - an electronic
“Welcome to Houlton” message center.
2011
2012
SADC creatively finds way to temporarily bring
internet service to the Houlton Industrial Park.
2013
• SADC advocates for sewer & water at municipal review committee. Decision to continue with
project.
• SADC sends in application nominating Bison Pumps as “Entrepreneur of the Year” for Aroostook
County for 2013.
• SADC advocates in opposition to elimination of Revenue Sharing, and other cuts to municipal
revenue in Augusta. Partial success.
• SADC works to establish local co-op, The County Co-op and Farm Store. Gets group incorporated.
• Bison Pumps of Houlton, ME, honored as “2013 Entrepreneur of the Year” at Leaders Encouraging Aroostook Development and Momentum Aroostook dinner.
• Amato’s opens new restaurant in former KFC building.
• SADC takes up the fight to save the Houlton branch of the Maine Revenue Service for the 3rd
time. Politics, unfortunately, plays a role this time.
• SADC hosts very successful “Alternative Heating Expo.”
SADC Officers and Board Members...
Terry Wade, Chair
R & D Consultant
Smith & Wesson
Marguerite Lawler, Secretary
Commercial Loan Officer
Machias Savings Bank
Chris Anderson, Registered Agent
President & CEO
F.A. Peabody Co.
David Gates, Treasurer
CPA
Davis, Gates and Alward
Scott Austin
Property & Casualty Sales
F.A. Peabody Co.
Kristi Brannen
Co-owner
Spring Break Maple & Honey
Peter Chase
President
Buildings Etc.
Scott Dionne
Store Manager
S.W. Collins Co.
Chris Fitzpatrick
Regional VP
Machias Savings Bank
John Fitzpatrick
Retired
Coca Cola Bottling
Kent Good
Owner
Florence Ave.
Redemption Ctr.
Fred Grant
Owner
WHOU Radio
Wade Hanson
Economic Dev. Director
Houlton Band of Maliseets
Jon Harbison
Co-owner
Harbison Plumbing
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Carl Lord, Jr
Retired
Boiler Operator
Max Lynds
VP of Life and Benefits
F.A. Peabody Co.
Joshua McLaughlin
President
J. McLaughlin Construction, LLC
Krista Putnam
Assistant VP, Marketing
Katahdin Trust Company
Jerry York
General Manager
York’s of Houlton
Investors...
Aroostook Water Care
Buildings Etc.
Clark’s Auto Sales
Clukey’s Auto Supply
F.A. Peabody Company
Albert Fitzpatrick Trucking
Gough Farms
Houlton Regional Hospital
Houlton Rental Center
Houlton Water Company
J. McLaughlin Construction, LLC
James H. McPartland & Sons
Katahdin Trust Company
Lincoln Insurance Agency
Machias Savings Bank
Maine Public Service Company
P.D.Q. Door Company
Phil Jordan, Law Office of
S.W. Collins Company
Sargent Corporation
Severson, Hand& Nelson, P.A.
Smith & Wesson
Steelstone Industries
Swallow Electric
The County Federal Credit Union
The Town of Houlton
The Town of Littleton
The Town of Monticello
The Town of New Limerick
The Town of Smyrna
Varney Insurance Agency
York’s of Houlton
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Southern Aroostook “Worth a Visit, Worth a Lifetime!”...
Market Square – Home to Northern
Maine’s largest Farmer’s Market.
Truly a site that is
“Worth a Lifetime!”
“Fall’s Majesty” It can’t be beat.
Photos this page courtesy of
Mooers Realty – Houlton, ME
Projects Successfully Worked in 2013...
U.S. Route 1 Sewer & Water Expansion – Phase II
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Jobs Created: 25 during construction in Spring & Summer 2013
Investment: $1,000,000
Project Type: Infrastructure
Public Sector Investment: An approximate $1,000,000 municipal bond
payable with annual proceeds from the North Street Tax Increment Financing
District’s reserves.
Partners in the Project: SADC (initial project support and TIF work); Town of Houlton (owner
and bond recipient) and the Houlton Water Company (project management oversight and system operator)
Project extends much needed municipal water and sewer further North on U.S. Route 1.
Opens up potential development of several hundred additional acres of large retail and/or commercially viable property.
Alternative Energy Expo
A few years ago, SADC joined forces with APP in the Mobilize
Northern Maine initiative that determined bio-mass energy was a
business sector that showed promise of developing a business
cluster around the bio-mass heating concept. To that end,
several energy forums were held throughout The County.
All were based most specifically on bio-mass technology.
The past couple of years technology has soared and there are many avenues available to promote energy efficiency and make Aroostook homes less dependent on foreign oil. Solar, electric
heat pumps, geothermal heat pumps, sophisticated wood pellet boilers, just to name a few of
the systems.
With that in mind, it was determined that future forums should be “Alternative Energy Based”
versus just biomass and SADC volunteered to do a pilot expo in Houlton in September.
It was held at the John A. Millar Civic Center at Houlton Community Park and featured 26 vendors from all sectors of heating sources and from far away as New Hampshire. Almost 350
people attended the 6 hour, 1 day expo.
While the purpose of the expo was a forum for local residents to have a one stop show to learn
more about alternatives available to them, and not necessarily to purchase product and services, several vendors were successful in lining up future sales.
All vendors in attendance wanted to know if SADC would make this an annual event and we
will be seriously looking into this.
Interesting Sidenote: Mobilize Northern Maine and the work that SADC has done with last
year’s workshop series and this year’s expo is paying off as Maine Energy Systems out of
Bethel, ME, and suppliers of the very sophisticated and high-end OkoFEN automated wood
pellet boiler system, recently told one of their local reps that the Houlton region has one of the
most highly concentrated number of installations in their marketing area.
More Successes on page 15
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FREE
ADMISSION!
presented by
Alternative Energy E
xpo 2013
John
A. Millar Civic Ce
nter | Houlton Co
mmunity Park
Saturday, Sept. 14, 20
13 | 9AM to 3PM
DOOR PRIZES
10 BAGS OF PELLETS
given out each
half-hour from
10AM to 2PM!
Learn how the la
te
heating sources ca st alternative
business, commer n save home,
owners significant cial and industrial
ly on heating cost
s!
MORE THAN TWO
DOZEN VE
• Aroostook Milling NDORS:
• J.H. Mc
• Harbison Plumbing Partland & Sons
, Heati
• Maine Energy Sy ng & Air Condiitoning
stems
• Energy Kinetics – – Bethel, ME
New
• Tarm USA – Lyme Jersey
,
• Machias Savings NH
• County Federal Cr Bank
edit Union
• Many More
GUES
10 AM – Bob Dorse T SPEAKERS
y, CEO of
Partnerships for Pr Aroostook
ogress – “Mobiliz
Northern
e
12 PM – Paul Lib Maine – Energy Initiative”
by, Hole in Your Bu
cket Energy
Audits – “E
2 PM – Machias Sa fficiency Maine Programs”
vings Bank & Coun
ty Federal
Credit Union – “F
inancing Your Energ
Projects”
y
See the latest in pe
llet boilers, pe
geo-thermal, wood llet stoves, solar panels, electric
heat pumps,
Make sure to stop
boilers and much,
by
mu
how quickly a convthe Northern Maine Development Co ch more.
ersion can pay for
mmission booth
Progress return on itself with the Aroostook Partners to learn
hip for
investment calculat
or.
SADC
Non-Traditional Economic
Projects…
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Mobilize Northern Maine
Is a collaborative grass roots economic development
process that builds on the strengths and unique assets
of Aroostook County, identifying and implementing
strategies to leverage those assets for economic opportunity in the global economy. One
such strength identified in the process was the creation of a biomass related business cluster. SADC, and the Southern Aroostook region of the county, has taken this potential area
of growth to heart and is working to be the pilot on education for this important process
of weaning Aroostook off fuel oil dependence while creating business opportunities.
Purpose
To provide capital to small businesses unable to obtain credit
through conventional sources. Minority entrepreneurs, woman
business owners and self-employed individuals with limited incomes are encouraged to apply.
SOUTHERN AROOSTOOK Eligibility
Businesses must operate for profit and if operating presently
MICRO-ENTERPRISE
have 5 or fewer workers or it can be a start up company. It must
REVOLVING LOAN FUND
be a home-based business.
John A. Millar
Arena – Site of
the 2013 SADC
Alternative
Energy Expo.
Photo by SADC
Example of Potential Self-Contained
Heating Unit for
Town Buildings.
Photo by Pelletco
Unveiling of Sign Pla
que
to Mrs. Dallas Henders
on
& son, Sam.
Photo by Joe Cyr – Pio
neer
Times
Letter From The Executive Director...
The world in 2013 was not in quite the same amount of turmoil as
last year when I drafted this year end letter.
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Some would say that this is not the case with the Southern Aroostook region, that the area ,in fact, may have slipped a bit in 2013.
On the surface this could seem to be the case as most of the
commercial, and therefore most visible, construction projects were
commenced and completed in 2011 and 2012. But looking past
construction as an indicator, the region is surviving and heading
for growth.
Several new businesses were purchased, expanded or started
this year. Among them were Daniel’s Florist, Chadwick’s Florist
and Greenhouse, North Country Gifts, County Collectibles, Dr. Harvey Chiropractor by Dr. Chris
Bell, Amatos Restaurant, The Horn Restaurant, North Country Auto, Spring Break Maple & Honey
and the list goes on.
We were saddened by the recent announcement of layoffs at Smith & Wesson and if you were one
of the folks that were laid off, this is devastating. However, with the addition of some $20 million
dollars of re-investment in the plant over the next year, the future bodes well for the continued need
for the plant in Houlton and a need for higher paying jobs in the future. Louisiana-Pacific has
added employees during the year and continue to do so. If trends continue, the plant could almost
be back to pre-recession levels within the next year.
SADC has been fortunate to be able to take a major role in Mobilize Northern Maine’s business
cluster development in regards to lowering The County’s dependence on fuel oil. Area heating
contractors have been unusually busy this year with alternative heating source installation in not
only residential, but commercial applications as well. SADC continues to work with the Town of
Houlton in developing “test applications” for heating solutions.
One of the most important and most beneficial things to happen to SADC this past year was the
nomination and selection of four new, young entrepreneurs to the Board of Directors as well as a
By-Law change that allowed Houlton Town Manager, Houlton Community Development Director
and the Greater Houlton Chamber of Commerce to have Ex-Officio positions on the board. These
new folks have added a great deal of depth to the various sub-committee work that was unveiled in
late 2012. Their input has been invaluable and we thank them for their support and guidance.
We have some local issues with state policies in regards to ways that municipalities are reimbursed, but this is a statewide issue and we will survive this by working together and we will come
out the other side stronger and better as a result of working together on issues instead of being divided.
As always we encourage you; our stakeholders, friends and interested citizens, to furnish us your
ideas and give us your input as to your thoughts for areas to pursue development potential
2014 promises to be a great year of opportunity for the region and SADC is proud to be part of this
opportunity.
Thank you for all of your continued support.
Jon A. McLaughlin, Executive Director
Southern Aroostook Development Corp.
Our Partners...
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SADC Organizational Chart ...
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SADC Board of Directors
18 voting members
3 ex-officio,
non-voting members
Executive Committee
5 board members
reviews policies
for board
acts as nominating
committee
reports to full
board
Existing Business
Development & Retention
Committee
New Business
Development Committee
Chris Anderson, Chair
Peter Chase, Chair
Media, Public Relations
& Alumni Recruitment
Committee
Investment
Committee
Jerry York, Chair
Max Lynds, Chair
Executive Director
Jon McLaughlin
Financials...
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Condensed Balance Sheets
As of November 30, 2013
Assets
Cash
......................................................... $ 23,455
Accounts Receivable ................................................... $ 15,723
Undeposited Funds....................................................... $ 500
Office Equip.
......................................................... $ 787
Total Assets ...................................................... $ 40,465
Liabilities & Equity
Liabilities
Accounts Payable .............................................. $
Payroll Taxes Payable........................................ $
Deferred Income ................................................ $
Total Liabilities.................................................... $
Equity
Retained Earnings ............................................. $
Net Income.........................................................($
Total Equity ........................................................ $
Total Liabilities & Equity................ $
1,838*
2,087*
0
3,925
59,934
23,394)
36,540
40,465
*Both payables are current
Condensed Profit & Loss
As of November 30, 2013
Income
Stakeholder Contributions.................................. $ 30,950
Interest Income .................................................. $
33
Other Income ..................................................... $ 2,006
Towns Funding ................................................... $ 21,500
Total Income....................................................... $ 54,489
Expenses
Total Expenses................................................... $ 77,883*
Net Income......................................($ 23,394)
*Includes a one time write off to bad debts of $1,125 for non-performing stakeholder
contributions (pledges) that have been on the books for two years.
SADC
“Who is SADC?”
ON THE GO
NOTE: Everyone knows that SADC is a local organization
and many know that its main charge is to market the region
to businesses from away that are looking to expand their
operations and/or to relocate. An organization is made up
of people. Many don’t know, however, the players that
make up SADC.
SADC has a very diversified and committed Board of
Directors.
Left to right. Starting at the top:
Chris Anderson – President, F.A. Peabody Co. – Houlton
Scott Austin – Property & Casualty Sales – F.A. Peabody Co. –
Houlton
Kristi Brannen – Co-owner, Spring Break Maple & Honey –
Smyrna
Peter Chase – President, Buildings Etc. – Houlton
Gene Conlogue – Ex Officio, Houlton Town Manager
Scott Dionne – Store Manager, S.W. Collins Co. – Houlton
Chris Fitzpatrick – Regional VP, Machias Savings Bank – Houlton
John Fitzpatrick – Retired Management, Coca-Cola Bottling –
Presque Isle
Fred Grant – President, WHOU Radio – Houlton
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Left to right.
Starting at the top:
Kent Good – President, Florence
Avenue Redemption – Houlton
Wade Hanson – Economic Dev.
Dir., Houlton Band of Maliseet
– Littleton
Jon Harbison – Co-owner, Harbison
Plumbing & Heating – Houlton
Marguerite Lawler – Commercial
Loan Officer, Machias Savings
Bank – Houlton
Carl Lord, Jr. – Retired Boiler
Operator, Louisiana-Pacific –
New Limerick
Max Lynds – VP of Life &
Benefits, F.A. Peabody Co. –
Houlton
Joshua McLaughlin – President,
J. McLaughlin Construction
LLC – Houlton
Krista Putnam – Asst. VP Marketing, Katahdin Trust Co. – Houlton
Jane Torres – Ex Officio – Exec.
Dir., Greater Houlton Chamber
of Commerce – Houlton
Terry Wade – Chair SADC &
R & D Consultant, Smith &
Wesson – Houlton
Lori Weston – Ex Officio – Community
Dev. Dir., Town of Houlton
Jerry York – General Manager,
York’s of Houlton- Houlton
Jon McLaughlin – Exec. Dir.,
Southern Aroostook Dev.
Corp. – Houlton
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Projects Successfully Worked in 2013...
Continued from page 6
15
The County Co-op & Farm Store
The New Business Development Committee of SADC met
earlier in the year to discuss what we could do to help
existing small craft type businesses sell more product,
which in turn might lead to one of the fledgling companies
having to add on one or two more additional employees.
In other words how could we expand business from within.
It was thought that providing marketing help to these small businesses might be what was
needed. In meeting with several small businesses, it was not a marketing person per se that
they needed. They wanted an opportunity to be able to sell more product, right here locally,
without them having to work at marketing themselves, leaving them to do what they do best –
manufacture or produce an item.
Thus the concept for a co-op was developed, spearheaded by a most dynamic young businesswoman, Meg York Scott, Co-owner of Nature Circle Farm.
A working group was quickly established and incorporation papers were developed, tax id numbers received and they were off and running.
It is expected that the co-op will have a site and be up and operating by fall of 2014. Keep an
eye out for more on this exciting project as the year progresses.
Projects In Progress...
Manufacturing
Potential Jobs Created: 15
Investment: $2.5 million
Project Type: Expansion
Partners: SADC, Town of Houlton & Firm
Manufacturing
Potential Jobs Created: 40
Investment: $5 million - $7 million
Project Type: New Business
Partners: SADC & Private Investors
Manufacturing
Potential Jobs Created: None
Jobs Retained: 25
Investment: $3 - $5 million
Project Type: Restructure
Partners: SADC & Local Investors
Manufacturing
Potential Jobs Created: 21
Jobs Retained: 120
Investment: $20 million
Project Type: Restructure
Partners: SADC, Town of Houlton & Firm
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hc
fm
gm
Potential New Jobs: 75
Potential Jobs Retained: 145
Investment: $30,000,000