Economic Development Company of Lancaster County EDC Finance Corporation

2009 Annual Report

PEOPLE. PROGRAMS. PROJECTS. PROSPERITY. PEOPLE & PARTNERS You’re the common catalyst to success in Lancaster’s economic development.

And no partnership is more important David Nikoloff, President of EDC than that formed with our Membership and EDC Finance, will conclude by and volunteers who, while working discussing how these differences tirelessly and often unnoticed, enable contribute to the Progress and Prosperity us to collectively make positive change of Lancaster County. and significant achievement possible. I now pass the leadership baton to As outgoing EDC Board Chair, I wish David Keller, who on the next few pages to personally thank each of you for will review strategic Programs he will your dedication and support, and lead as EDC’s next Board Chair. Please would like to acknowledge your join me in welcoming David. involvement and leadership by including our Membership List front and center in this report. The list’s I am pleased to introduce prominence here is but a small reflection the 2009 EDC and EDC Finance of your value and importance. You have Corporation Annual Report. As you Made the Investment in EDC and that Nancy S. Arnold, review it and reflect back on a year of investment will continue to Make a 2007-2008 EDC Board Chair accomplishments and milestones, I believe Difference in our community. Partner, Reinsel Kuntz Lesher LLP you’ll agree that Lancaster County is To a large extent, we are able to indeed fortunate to have such proactive quantify the projects that make such a organizations serving our local business difference to our business men and and agriculture communities with their women, farmers, families and community. economic development endeavors. John Rose, Board Chair of EDC Finance As notable as these efforts surely are Corporation, will review 2008 Project — whether rural or urban, large or small, activity later in this high-profile or mom-and-pop — an report. economic development project’s true success is determined by the dedicated people behind it and their ability to partner with other organizations and community members. People in partnership drive successful economic development.

Mission Statement The Economic Development Company of Lancaster County and EDC Finance Corporation, collectively “EDC,” work to enhance the physical and economic well-being of Lancaster County, Pennsylvania by bringing together the essential elements affecting modern business — human resources, capital and government — in an environment of responsible and orderly change.

COVER: Hershey Farm, Rapho Township; PK Machine, Pequea Township; Hardy North America, West Hempfield Township; Liberty North, City of Lancaster; Northwest Gateway Project (redevelopment of former Armstrong World Industries), City of Lancaster

2 l 2009 Annual Report MEMBERSHIP Economic Development Company of Lancaster County

FOUNDERS BUILDERS SPONSORS $50,000 annually $25,000-$49,999 annually $15,000-$24,999 annually

PARTNERS Carel USA Rettew Associates $7,500-$14,999 annually Certified Carpet Rhoads Energy Auntie Anne’s Charter Homes & Neighborhoods Ross Buehler Falk & Company D&E Communications City of Lancaster R.R. Donnelley Horst Group Clair Brothers Audio Systems Sechan Electronics M&T Bank Commerce Bank Select Security PNC Bank Conewago Industrial Park Simon Lever Turkey Hill Dairy Conrad Siegel Actuaries Stevens & Lee Union National Community Bank CoreSource Stoner, Inc. MEMBERS Cornerstone Design Architects StoudtAdvisors David Miller/Associates Success Performance Solutions $3,500-$7,499 annually The Drogaris Companies Thaddeus Stevens College of Technology Barley Snyder Dutchland Triple H Construction Citizens Bank Eastern Alliance Insurance Group Trout, Ebersole & Groff Flyway Excavating ELA Group/Land Grant Surveyors Vanguard Development Group Franklin & Marshall College Elizabethtown College Versatek Enterprises Harrisburg Area Community College Engle-Hambright & Davies Walz, Deihm, Geisenberger, Bucklen & Tennis Hartman Underhill & Brubaker Ephrata Community Hospital Weinstein Realty Advisors Herley Industries Fidelity National Title Insurance Company Wickersham Construction and Engineering Horst Realty Friendly Transportation Willow Valley Associates IBS Development Graystone Bank Intelligencer Printing Hamilton Precision Metals SUPPORTERS Irex Corporation HomeTowne Heritage Bank Mars Snackfood US $500-$1,749 annually JC Snavely & Sons Millersville University of Pennsylvania (municipalities and non-profit community J. Walter Miller Company and economic development organizations) Paul Risk Associates The Jay Group Providence Engineering Corporation ASSETS Lancaster Johnson & Johnson Consumer Group Columbia Borough Reinsel Kuntz Lesher of Companies Commercial & Industrial Real Estate School District of Lancaster Kasun Development Council/LCAR Sovereign Bank Kellogg Company Community First Fund Warfel Construction Company Lancaster Barnstormers/Keystone Baseball The Family Business Center Wohlsen Construction Company Lancaster County Career and at Elizabethtown College Wonderland Amusement Management Technology Center Housing Development Corporation Lancaster Regional Medical Center Kutztown University Small Business ASSOCIATES Martin Limestone Development Center (SBDC) $1,750-$3,499 annually Meadow Valley Electric/ESCO Lancaster County Workforce Investment Board Abel Construction Company Mount Joy Wire Corporation Lancaster Downtown Investment District Acuity Advisors and CPAs Murray Risk Management and Insurance Authority (DID) Alcoa Mill Products Murry Management Company Library System of Lancaster County American Home Bank Manheim Area Economic Development Appel & Yost NAI Commercial Partners National Bearings Company Corporation B.R. Kreider & Son Manheim Township Benchmark Construction Company Nikolaus & Hohenadel Northwest Savings Bank Mount Hope Nazerene Retirement Community Beyond Architecture Mount Joy Borough Authority Bowser Construction Company Radnor Property Group Realty Settlement Services Pennsylvania Dutch Convention Brown Schultz Sheridan & Fritz & Visitors Bureau (PDCVB) Burnham Holdings Redcay Development Company

2009 Annual Report l 3 PROGRAMS Achieving our strategic goals requires outreach and collaboration, persistence and innovation.

In addition to these established formal Membership programs, many of EDC’s undertakings EDC recently launched an ambitious involve functions that often go unnoticed. rolling Membership Campaign to address They require time, sometimes years to the expanding demands placed on evolve, but in the end make a significant staff in assisting our local business and positive impact on our community. For agriculture communities. example: EDC’s Membership is critical to the • EDC assisted two international economic vitality of Lancaster County. companies, GlaxoSmithKline in East Membership support allows staff to avail Donegal Township and, more recently, themselves of as many opportunities as Hardy & Greys in West Hempfield Township, with their location possible in assisting our local business men, women and farming families to These are interesting times for efforts in Lancaster County grow their operations and improve their Lancaster County. As we all know, • EDC has been working with quality of life so that we all, as a community, economic development is not what it the urban areas of Columbia, benefit. If you are not already a member, used to be. From the early days of Lititz, Elizabethtown and please consider joining us. smokestack chasing to the knowledge- Mount Joy to address functionally based retention and attraction practices obsolete commercial and industrial of today, EDC has grown and evolved properties apace. Today, EDC remains cutting-edge • EDC continues to facilitate with its vision and ability to strategize community development and initiate programs in order to help projects that jump- Lancaster County businesses remain start economic competitive. improvement, such EDC and our partners continually as the Northwest assess economic challenges and opportunities Gateway project in Lancaster City and address areas of need or concern. One avenue is through the LancasterProspers initiative. The Business Retention and Expansion Program program gives us a more individualized, personal under- David R. Keller, Esq. standing of the local business climate. 2009-2010 EDC Board Chair Later in this Report, John Rose, Board Partner, Barley Snyder Chair of EDC Finance, will mention two incentive financing programs, the LancasterProspers Urban Capital Fund/Building PA and the SBA 504 programs, which qualified business men and women can take advantage of this year because last year EDC Finance staff aggressively and persistently sought loan program administration approvals.

4 l 2009 Annual Report LancasterProspers Revisited William Griscom, EDC and EDC Finance Thaddeus Stevens College of Technology In 2008, the LancasterProspers Corporation Joint Committees Dan Heller, Flintrock Farms Steering Committee released the STRATEGIC PLANNING It started LancasterProspers “Revisited” report, Craig Lehman, Commissioner, with a simple, eight-page strategic plan Leading with Vision: Successes, Lancaster County drafted in 1990 that established EDC Challenges & A Plan for Moving Wendy Nagle, Bird-In-Hand as the growing, engaged organization Forward. It summarized the challenges Corporation it is today. Now, as EDC’s role in the encountered and achievements obtained David Nikoloff, Economic Development community continues to expand, it is by the LancasterProspers seven original Company of Lancaster County time to take a thorough and hard look strategy committees during the first three Tim Peters, Warfel Construction at all of our activities to determine where years of the initiative, and presented Company we are as an organization and where we future plans and recommendations Jim Smucker, Board Chair, want to be in five years. During 2009, for each strategy. The year-long The Lancaster Chamber of Commerce both EDC and EDC Finance will “Revisited” evaluative process resulted in & Industry (Bird-In-Hand Corporation) undertake a top-to-bottom strategic the realignment of the original strategies Cindy Stewart, Board Chair, planning process of all activities. into six action groups (shown here with Lancaster County Housing and AUDIT COMMITTEE With a com- their respective chairs): Redevelopment Authorities (Family Health Council of Central PA) mitment to being responsible fiscal stew- • Regional Initiatives ards, EDC and EDC Finance established Ralph Simpson, Warfel Construction Company Business Retention an Audit Committee in 2007 to ensure the organizations’ financial, legal and • Economic Research Capacity & Expansion Program (BREP) Scott Sheely, Lancaster County regulatory integrity. As a result of the Workforce Investment Board With goals to assist, retain and expand local Audit Committee’s efforts, both organi- businesses, EDC staff outreach specialists zations have received unqualified audits • Countywide Economic visited a record 365 Lancaster County Development Marketing for the last two years. John M. Levitski, businesses in 2008 as part of EDC’s PPL Corporation proactive outreach program in partner- INVESTMENT COMMITTEE EDC utilizes its investment base to leverage • Community-wide Innovation ship with the Commonwealth. These Scott Sheely, Lancaster County confidential, one-on-one interviews with select economic development projects Workforce Investment Board local business executives identified throughout Lancaster County. To ensure the integrity of our management practices • Entrepreneurship trends, issues and Tom Baldrige, The Lancaster needs of as our roles expand, EDC and EDC Chamber of Commerce & Industry the local Finance have created a joint Investment • Urban Center Development business Committee whose objectives are clear: Matthew Sternberg, community. • Develop investment policies and Lancaster County Housing procedures & Redevelopment Authorities • Review and select professional In addition to the strategy chairs, the investment managers/firms that meet the investment objectives of each LancasterProspers Steering Committee organization includes members-at-large: • Monitor all areas of the investment Nancy Arnold, Reinsel Kuntz Lesher program James Black, Board Chair, Lancaster County Workforce Investment Board (Ross Technologies)

2009 Annual Report l 5 PROJECTS Putting the right resources in place strengthens our constituent businesses, farms and communities.

redevelopment projects, bringing the U.S. SBA 504 Program total awarded in 2007 and 2008 to $11.7 million. The SBA 504 program provides growing qualified businesses with long-term fixed- • Facilitated the infrastructure efforts rate financing for major fixed assets, such at the Northwest Gateway project (the as land, buildings and equipment. Armstrong redevelopment site) in Lancaster City as the final step before EZSolution Corp. conveying clean title of property to East Hempfield Township community partners, Franklin & Marshall College and Lancaster General.

During my tenure as • Helped fund agriculture projects that Board Chair, I have witnessed EDC will help keep 2,645 acres of land — Finance Corporation adapt and expand slightly larger than the Ephrata in order to best serve Lancaster County’s Borough footprint — in viable business and agriculture communities. farming activities. As the “doer of projects,” EDC Finance continues to aggressively seek • Assisted Lancaster County businesses out and implement new programs and and farms to access 72 loans and EZSolution provides website design and services that will strengthen our county’s grants, representing a sizable 44% maintenance, computer hardware and increase over 2007 (50 loans and economic base. You can review a summary networking consulting services. Tom grants). EDC and EDC Finance Malesic, EZSolution’s president, used an of all economic development achievements Corporation are busier today than on the following page in the 2008 SBA 504 loan to purchase an office suite ever due to increased demand for for his growing company. In doing so, Growth and Investment Report. project financing. EZSolution became EDC Finance’s first Most notably, in 2008 EDC Finance SBA 504-approved loan project. Corporation: • Received Certified Development Company designation (only the 8th John H. Rose, Crescendo Training Centre, LLC West Earl Township in the Commonwealth) from the EDC Finance Corporation Small Business Administration to Board Chair administer the SBA 504 program, Senior Vice President and following a rigorous 18-month CFO, Horst Group qualification process. As a result, EDC Finance now stands as an independent, separate entity from EDC with its own By-laws and Membership.

• Became the first Building PA loan program fund manager in the Crescendo Training Centre, LLC is a Commonwealth to be awarded full-service facility that provides horse three rounds of funding for urban training and riding instruction, summer

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6 l 2009 Annual Report 2008 Growth & Investment Report Building Agriculture New Retained Total Financial Project Sq. Ft. Acre Jobs Jobs Investment Assistance

Beiler Farm (Elam/Barbara) 48 2 $400,000 NGFLP - $150,000 Beiler Farm (Ira/ Priscilla) 69 2 $565,000 NGFLP - $250,000 SBF/FIF - $200,000 Beiler Farm (Jacob/Elsie) 100 2 $750,000 NGFLP - $250,000 Beiler Farm (John/Mary Ellen) 125 2 $500,000 NGFLP - $160,000 Benner Farm (Arlin/Deborah) 111 15 $2,040,000 SBF/FIF - $200,000 Blank Farm (David/Ruthie) 70 0 $650,000 NGFLP - $310,000 Bollinger Farm (Andrew/Andrea) 78 2 $1,669,200 SBF/FIF - $200,000 NGFLP - $250,000 Breckbill Farm (David/Janelle) 23,000 2 $525,000 SBF/FIF - $200,000 Brubaker Farm (Luke) 325 3 $1,320,000 MELF/FIF - $415,000 Brubaker Farm (Randy/Jodie) 84 2 $1,850,000 SBF/FIF - $200,000 Brubaker Farm (Robert/Andrea) 56,592 2 $620,000 SBF/FIF - $200,000 Craig Farm (Charles/Elaine) 2 $2,615,000 SBF/FIF - $200,000 MELF/FIF - $200,000 Crescendo Training Centre, LLC 2 1 $416,700 SBA 504 - $150,000 Eckman Farm (Brian) 108 2 $500,000 SBF/FIF - $200,000 NGFLP - $300,000 Esh Farm (Ephraim/Mattie) 69 2 $575,000 SBF/FIF - $200,000 EZSolution Corp. 5,500 3 13 $632,950 SBA 504 - $262,000 Fisher Farm (Jacob/Mary) 34 2 $485,000 SBF/FIF - $200,000 Fisher Farm (Melvin/Barbara) 30 2 $400,000 NGFLP - $250,000 Generation Three Farm Partnership 78 3 $1,700,000 SBF/FIF - $200,000 Glick Farm (Emanuel/Sadie) 52 $700,000 NGFLP - $250,000 Glick Farm (Samuel/Malinda) 80 2 $400,000 SBF/FIF - $200,000 Gochenaur Farm (Scott/Jennifer) 29,500 21 2 $1,450,000 NGFLP - $250,000 SBF/FIF - $200,000 Gypsum Agricycle, Inc. 5 3 $446,000 SBF - $200,000 Hardy & Greys, Ltd 14 $1,000,000 Location Assistance Herr Farm (Eric/Melissa) 100 2 $700,000 NGFLP - $450,000 SBF/FIF - $200,000 MELF/FIF - $50,000 Hershey Farm (Stephen/Heidi/Philip) 80 3 $1,310,000 SBF/FIF - $200,000 Hess Farm (Jim/Carolyn) 23,000 0 2 $550,000 SBF/FIF - $200,000 Hess Farm (Paul/Sheryl) 20 2 $400,000 SBF/FIF - $200,000 Hess Farm (Eugene/Susan) 120 2 $418,700 SBF/FIF - $200,000 Hollinger Farm (Randy) 40 1 $815,000 SBF/FIF - $200,000 King Farm (Christian/Emma) 80 2 $400,000 NGFLP - $235,000 Kline’s Services, Inc. 8,000 29 70 $2,060,000 SBF - $200,000 PK Machine 6,000 1 2 3 $340,000 SBF - $125,000 Landis Farm (Brian/Annice) 56,160 2 $710,000 SBF/FIF - $200,000 Lapp Farm (David/Anna) 60 2 $425,000 NGFLP - $150,000 LSC Properties, L.P. 66,170 2 100 $10,500,000 Bldg PA - $1,200,000 M&R Grains 1 $200,000 MELF/FIF - $100,000 Meuhlenberg Farm (John/Jana) 1 $410,000 MELF/FIF - $205,000 Museum Partners, LP 35,000 3 40 $9,439,000 Bldg PA - $2,314,000 Musser Farm (Carl/Wanda) 29,500 2 $617,500 SBF/FIF - $200,000 Nissley Farm (Kirby) 90 2 $600,000 NGFLP - $175,000 SBF/FIF - $200,000 Norwich Properties, LLC 13,000 3 $1,836,000 Bldg PA - $275,400 Rohrer Farm (Mark) 34 2 $275,500 SBF/FIF - $137,500 Rottmund Farm (Jared/Shelby) 10 1 $600,000 SBF/FIF - $200,000 Sensenig Farm (Clifford/Andrea) 149 2 $794,000 NGFLP - $250,000 SBF/FIF - $200,000 Stoltzfus Farm (Daryl/Kimberly) 27,000 2 $340,000 SBF/FIF - $170,000 Stoltzfus Farm (John/Annie) 57 $600,000 NGFLP - $450,000 Stone Mill Farms LLC/Stricklin Farm 98 2 $1,376,000 SBF/FIF - $200,000 Swanger Farm (Duane/Stacy) 57 2 $706,000 SBF/FIF - $200,000 NGFLP - $250,000 TBA* 260 158 $2,800,000 CJT - $350,000 JCTC - $520,000 MELF - $1,400,000 OG - $500,000 Thornberry, Ltd. 2,500 2 7 $290,000 SBF - $145,000 U.S. Recycled Wood Products 8 $591,000 SBF - $200,000 Versatek Enterprises, LLC 7 62 $340,000 SBF - $170,000 Weaver Farm (Brian/Elsie) 23,000 37 1 $820,000MELF/FIF - $90,000 SBF/FIF - $200,000 Wissler Farm (Donald/Holly) 72,884 2 $1,169,000 MELF/FIF - $207,500 SBF/FIF - $200,000 Zimmerman Farm (Donovan/Cheryl) 28,080 2 $1,350,000 NGFLP - $450,000 SBF/FIF - $200,000 Zimmerman Farm (Lawrence/Judy) 82 $1,350,000 NGFLP - $450,000 TOTALS: 504,886 2,645 432 408 $67,342,550 $20,666,400 *TBA — Project not yet publicly announced. PROGRAMS Bldg PA — Building PA MELF/FIF — Machinery & Equipment Loan Fund/ SBA 504 — Small Business Administration 504 CJT — Customized Job Training First Industries Fund SBF — Small Business First JCTC — Job Creation Tax Credit NGFLP — Next Generation Farmer Loan Program SBF/FIF — Small Business First/First Industries Fund OP — Opportunity Grant

2009 Annual Report l 7 camps, breeding, boarding, showing, Liberty North Norwich Properties, LLC judging and horse rehabilitative services. City of Lancaster City of Lancaster Kristine Phelps, principal, is using an Fred and Lisa Groff stand outside the SBA 504 loan to construct a new indoor former West End Market, which they riding arena and barn. plan to redevelop with the help of a Building PA loan into a multi-tenant Building PA Program — LancasterProspers Urban Capital Fund Building PA monies, managed through the LancasterProspers Urban Capital Fund, Developer Ed Drogaris is taking advantage are allocated solely to redevelopment of a $1.2 million Building PA loan to projects within urban areas. 2008 EDC redevelop two former Armstrong World Finance Corporation Building PA project Industries buildings into mixed-use involvement includes: facilities.

Auntie Anne’s, Inc. commercial building, including a new City of Lancaster Groff Family Funeral Home.

Museum Partners, LP Columbia Borough In 2007, Mr. Drogaris received his first With the help of a $2.3 million Building $900,000 Building PA loan to redevelop PA loan, the Ashley & Bailey Silk Mill the former Swisher Tobacco building on property (shown below) will be redeveloped North Prince Street into a mixed-use into an agri-tourism attraction anchored Sam Beiler, President & CEO of Auntie commercial/residential property. by the “Turkey Hill Experience.” Anne’s Inc., used a $1 million Building PA loan, which was approved in 2007, to help redevelop the Chestnut Street post office building into the Auntie Anne’s corporate headquarters and comprehensive training center for retail franchisees.

Notably, EDC Finance is privileged to have assisted the first-ever Building PA loan to close in the Commonwealth since the program’s inception.

8 l 2009 Annual Report Small Business First U.S. Recycled Wood Products, Inc., Upper Leacock Township Loan Program SBF provides low-interest loan financing for a portion of the costs of land, building, machinery, equipment and working capital to qualified small businesses (100 employees or fewer).

Kline’s Services, Inc. East Hempfield Township

Entrepreneurs Ed Druffner and Ed Zook (above) took advantage of an SBF loan to start up U.S. Recycled Wood Products, Inc., where they recycle wood scrap obtained Since 1955, Kline’s Services has been from local wood manufacturers and produce a leader in the wastewater and septic an alternative firewood product, an system business in Southcentral environmentally-friendly wood brick. Pennsylvania. An SBF loan helped the family-management team, Marsha, David and John Kline, to construct an 8,000 sq. ft. building that will house their recent recycling venture — converting food-grade oil and grease waste into fuel-grade oil capable of running a boiler or being mixed into biofuels. Thornberry Ltd. East Hempfield Township Tom and Linda Peth, principals of Thornberry Ltd., manage a company that PK Machine develops software for the home healthcare Pequea Township and hospice industry. Anticipating Paul and Sandra Kralicek used an SBF company expansion, the Peth’s used SBF loan to purchase an existing 6,000 sq. ft. financing to purchase an office suite to building to house their growing specialty house additional programmers. niche machine shop business.

2009 Annual Report l 9 Next Generation Gochenaur Farm, Mount Joy Township Farmer Loan Program NGFLP provides next-generation (beginning or first-time) farmers the opportunity to purchase land and other capital intensive assets to begin their agriculture enterprise.

Notably in 2008, 19 Lancaster County farms received NGFLP approval, which is up from 12 the previous year. Lancaster County now exceeds all other counties in the Commonwealth with the number of NGFLP-approved projects.

First Industries Fund — Small Business First Loan Program FIF-SBF is aimed at strengthening PA’s agriculture industries by providing access For several years, Scott and Jennifer to funding to aid qualified for-profit Gochenaur had been looking for a starter agriculture-related businesses. farm that would allow them to enter the farming industry and where they could raise their young family. With assistance from the NGFLP and the FIF-SBF First Industries Fund — programs, these first-time farmers now Machinery & Equipment work a 21-acre egg-production farm. Loan Program FIF-MELF provides funding to qualified for-profit agriculture-related businesses to acquire and install new or used, and Hershey Farm to upgrade existing machinery and Rapho Township equipment. Using an SBF-FIF loan, Stephen and Heidi Hershey along with their son, Philip, purchased 80 acres of the family layer farm, which includes seven vacant layer houses. They plan to renovate four of them and bring the younger generation into the ownership of the family farming operations.

10 l 2009 Annual Report 2009 MEMBERSHIP EDC Finance Corporation

The EDC Finance Corporation Membership is comprised of representatives from government, financial institutions, community organizations and business. It meets annually to be updated on EDC Finance activities and to discuss and vote on necessary matters.

Jeff Ainslie Triple H Construction, Inc. Jim Appel Apple & Yost, LLP Brubaker Farms Chris Barrett PA Dutch Convention & Visitors Bureau East Donegal Township Timothy Bianchi Lancaster County Career & Technology Center Jeffrey Bleacher Ross, Beuhler, Falk & Co. Joan Brodhead Community First Fund Michael Carper Housing Development Corporation Joshua Cohen Hartman Underhill & Brubaker LLP Michael Davis Barley Snyder, LLC Luke Brubaker (right) and sons, Mike and Tony, took advantage of a $415,000 FIF- Michael DeBerdine Rhoads Energy MELF loan to assist with an alternative Larry Downing Manheim Township energy project on their farm, where they installed a methane digester to take animal Patrick Egan Select Security waste from their dairy herd and convert it into electricity. Dan Fichtner Providence Engineering Earl Furman Versatek, Inc. R. Edward Gordon Wohlsen Construction Company Robert Heiserman, Jr. Donegal Real Estate Barry Huber Trout, Ebersole, & Groff, CPA Charlotte Katzenmoyer City of Lancaster Walter J. Legenstein Certified Carpet Craig Lehman County of Lancaster Glenda Machia ASSETS Lancaster Michael Peachey Acuity Advisors and CPAs www.edcfinancecorp.com Barbara Reist Dillon Nikolaus & Hohenadel, LLP Launched in July 2008, the EDC Finance Corporation website provides in-depth John Rose Horst Group information about our business and Stuart Savin Harrisburg Area Community College production agriculture financing programs, including current loan rates. You can Thomas Showers Manheim Area EDC learn much more about all programs by visiting www.edcfinancecorp.com. Betty Tompos Thaddeus Stevens College of Technology James Warner Lancaster County Solid Waste Management Authority

2009 Annual Report l 11 PROGRESS & PROSPERITY A proactive, long-term approach to economic development takes vision and teamwork.

incentivize development, but no one • Assisted our agriculture community strategy, policy or program has ever with their needs to work farmland in achieved successful economic development. more productive and efficient ways, as Each community faces a unique set of well as to pass their farming legacy on challenges and opportunities and has a to future generations distinct set of needs based on its history, heritage, issues and objectives. Lancaster However, all that we do — our myriad County is no different. of Programs and Projects — is only possible By keeping our eyes on the horizon, thanks to the support and generosity of we at EDC aggressively seek out our Membership. Your partnership with programs and opportunities to meet EDC fuels our achievements. You are the There are those who attempt to indispensable and requisite key to our define economic development in terms our communities’ current needs while considering opportunities for our future success, and by extension, to the Progress of the number of jobs retained or created, and Prosperity of our growing community. the number of businesses started, generations. Listed below are just a few expanded or relocated, the per capita of EDC’s 2008 initiatives: income level, improved infrastructure • Facilitated the redevelopment of or the expansion of the tax base. brownfield sites, such as the former None of these considerations is Armstrong World Industries complex, David K. Nikoloff, inaccurate, but with economic development to remove a potential blight and President, Economic Development in recent years becoming increasingly replace it with new facilities, jobs Company of Lancaster County and sophisticated and highly professionalized, and community amenities EDC Finance Corporation they are overly simplistic and incomplete. Keeping our economic foundations • Assisted in landing the Hardy North America distribution center, office and strong is important, but moving forward, showroom facility in West Hempfield we also must begin to understand the Township, a significant U.S. market structure and competitive position of presence for this high-end UK fly-fishing Lancaster County’s economy, taking equipment manufacturer steps to increase its competitive advan- tages and build prosperity. • Pursued U.S. Small Business As we work to strengthen Lancaster Administration approval to administer County’s economy, EDC understands the flexible SBA 504 loan program, that economic development begins with an additional tool in the financial local stakeholders. Through teamwork, toolbox for our small businesses we build strategic partnerships with • Sought additional funding through industry leaders, economic and community the Building PA/LancasterProspers developers and elected officials to help Urban Capital Fund to accommodate attract investment and further develop more urban redevelopment projects Lancaster County’s business and agriculture and return to the tax roles vacant, communities. obsolete or underutilized buildings Programs abound to encourage or

12 l 2009 Annual Report Our activities and achievements can only happen with Membership support. Rest assured, your support goes a long way in strengthening the economic well-being of our county. EDC is privileged to receive such commitment from so many local companies, organizations and municipalities (see Membership list on page 3), and to whom we say thank you.

With our Investment and Audit Committees, EDC and EDC Finance Corporation not only remain visionary in efforts to maximize your support dollars, but also to act as good stewards of those funds.

2009 PROJECTED REVENUES

Membership $475,000

State Funding $124,000

Investments and Interest Reimbursements $70,000 EDC Finance Corporation $65,000 Business Retention and Expansion Program $60,000

Project Income $40,000

Other $30,000

2009 PROJECTED EXPENSES

Staff/Programming $584,347 Operating $157,153

LancasterProspers $40,500 Marketing $37,000 Fundraising $5,000 Strategic Planning $40,000

2009 BUDGET $864,000

2009 Annual Report l 13 2009 EDC Board of Directors

The EDC Board of Directors meets monthly to review EDC's involvement with community development efforts and to be updated on the numerous business, agriculture and community development and revitalization projects around Lancaster County. We thank the Board for their active interest and participation in all EDC initiatives.

OFFICERS Michael G. Fessler David G. Williams David R. Keller, Board Chair Regional Marketing Manager, President Randall L. Horst, Board Vice Chair West Region Sechan Electronics David K. Nikoloff, President UGI Utilities John W. Biemiller, Vice President, Secretary, Treasurer Mark D. Gainer EMERITUS DIRECTORS Chairman, President & CEO Gibson E. Armstrong Union National Community Bank Robert S. Bolinger DIRECTORS Dr. Joseph A. Caputo Nancy S. Arnold Randall L. Horst Robert C. Gray Partner, Audit Services Group President & CEO John M. Hallgren Reinsel Kuntz Lesher LLP Horst Group Alexander Henderson III Calvin G. High Thomas T. Baldrige David R. Keller, Esq. Esther G. Gemmill President Partner Calvin E. Levis The Lancaster Chamber of Barley Snyder W. Kirk Liddell Commerce & Industry Jessica H. May Gregory S. Lefever C. Eugene Moore Thomas E. Beeman Market President Timothy W. Peters President and CEO PNC Bank G. William Ruhl Lancaster General John O. Shirk John M. Levitski Kenneth G. Stoudt Samuel R. Beiler Regional Director Daniel C. Witmer President and CEO PPL Corporation Auntie Anne’s EXECUTIVE COMMITTEE Theodore E. Long John M. Buckwalter Nancy S. Arnold President Chairman of the Board Thomas E. Beeman Elizabethtown College Lancaster Newspapers John M. Buckwalter John D. Cox Keith A. Orris Nevin D. Cooley Randall L. Horst VP Adm. Services & External Affairs President & CEO David R. Keller Franklin & Marshall College High Real Estate Group John M. Levitski R. Scott Smith, Jr. John D. Cox Philip B. Shober Executive VP Senior Vice President COUNSEL Turkey Hill Dairy Wachovia Barley Snyder Joe Crosswhite R. Scott Smith, Jr. Regional President Chairman, CEO & President M&T Bank Fulton Financial Corporation

14 l 2009 Annual Report 2009 EDC Finance Corporation Board of Directors The EDC Finance Corporation Board of Directors meets to assess local business and production agriculture applications for select federal, state and local financing assistance. The board also reviews, as needed, significant community real estate development/redevelopment projects in Lancaster City and the county's boroughs and townships. The all-volunteer Board serves multi-year terms and we are grateful to them for their many hours of dedicated service.

OFFICERS Lawrence A. Downing Michael P. Peachey John H. Rose, Chair Commissioner CPA, Partner R. Edward Gordon, Vice Chair Manheim Township Acuity Advisors & CPAs David K. Nikoloff, President John W. Biemiller, Patrick M. Egan John H. Rose Vice President, Treasurer President Senior VP and CFO Select Security Lyle D. Hosler, Secretary Horst Group R. Edward Gordon Stuart J. Savin DIRECTORS Executive VP, CFO Campus VP and Dean Christopher S. Barrett Wohlsen Construction Company President & CEO Harrisburg Area Community College, PA Dutch Convention & Visitors Bureau Robert W. Heiserman, Jr. Lancaster Campus Broker/Owner Joan M. Brodhead Donegal Real Estate Betty K. Tompos VP & COO VP for Finance and Administration Community First Fund Charlotte A. Katzenmoyer Thaddeus Stevens College Director of Public Works of Technology Michael R. Carper City of Lancaster President & CEO Housing Development Corporation Walter J. Legenstein COUNSEL Chairman and CEO Appel & Yost Joshua D. Cohen, Esq. Certified Carpet Service Nikolaus & Hohenadel Partner Hartman Underhill & Brubaker Craig Lehman Commissioner SPECIAL PROJECTS Michael W. Davis, Esq. County of Lancaster Barley Snyder Partner Hartman Underhill & Brubaker Barley Snyder

2009 Professional Services, Committees and Staff ACCOUNTANTS Earl Furman MARKETING & COMMUNICATIONS Walz, Deihm, Geisenberger, R. Edward Gordon Hamilton Gregory Advertising Bucklen & Tennis Randall L. Horst David R. Keller PHOTOGRAPHY AUDITORS Robert Polett Photography Brown Schultz Sheridan & Fritz INVESTMENT COMMITTEE R. Edward Gordon, Chair STAFF AUDIT COMMITTEE Thomas E. Beeman David K. Nikoloff, President David R. Keller, Chair Michael G. Fessler John W. Biemiller, Vice President Joe Crosswhite Mark D. Gainer Lyle D. Hosler, Project Manager Gregory S. Lefever Nancy S. Arnold, Ex-officio Jean K. Rehrig, Office & Systems Director Walter J. Legenstein John H. Rose, Ex-officio Annette E. Bart, Program Analyst Betty K. Tompos Tara L. Claudio, Business Retention Specialist STRATEGIC PLANNING COMMITTEE Janet L. Foster, Administrative Assistant EDC MEMBERSHIP COMMITTEE David R. Keller, Chair John M. Levitski, Chair Nancy S. Arnold Nancy S. Arnold Thomas E. Beeman John D. Cox John H. Rose

2009 Annual Report l 15 100 South Queen Street l P.O. Box 1558 l Lancaster, PA 17608-1558 l 717-397-4046 l [email protected]