Annual Report Susquehanna County Progress Au August 22, 2013 thority Leatherstocking Groundbreaking As Tony Ventello, Executive Director of the Progress Authority, then go on to connect to the new Trehab residential facility, and stated: “the irony has ended”. homes and businesses along Route 706 will be able to connect. State, community and local leaders gathered at Montrose High Leatherstocking will be the first to offer 100 percent local gas to its School on June 18, 2013 for a ceremonial groundbreaking of the customers. The natural gas will be provided by Cabot Oil & Gas. first phase of the Leatherstocking natural gas distribution system Wayne Gardner and Pat Witmer of the Public in Susquehanna County. The abundance of natural gas will finally Utility Commission attended the ground breaking, become available to residences and businesses in Susquehanna underscoring the savings for the customers as a result County by the fall as Leatherstocking begins to install its natural of local shale gas. Leatherstocking’s cost, with gas distribution system. nominal transportation charges, will likely be the The first line will run between two anchor customers, the school lowest in the state. and the new Endless Mountain Health System hospital. It will Other benefits beyond savings will be had, such as contributing to the economy as a result of having the utility available.

June 18, 2013 Ceremonial groundbreaking of the Leatherstocking natural gas distribution system in Susquehanna County.

1 Elizabeth Street, Suite 3 | Towanda, PA 18848 | www.cbprogress.org Page 2 Susquehanna County Director’s Message by Anthony Ventello

I am excited about the opportunities that energy generation, site development and continue to be created in Susquehanna special studies to identify housing needs, County. Sincere support and interest by continued infrastructure development and our County Commissioners, economic an I-81 corporate park will provide the development advisory board, state and necessary planning and implementation to federal legislators and general public leverage investment and job enhancement institutes the cooperation necessary to get for Susquehanna County’s residents. things done. I thank you for the opportunity to serve Efforts to improve sites and infrastructure Susquehanna County and assure the to support meaningful development Progress Authority’s continued commitment continue. The construction of natural gas for positive economic development distribution, supported by sewer, water, impacts.

2013-2014 Capital Budget Moves Forward

Over the past year, the Progress Authority The last line item on the proposed a contaminated site. The water line will has witnessed a number of projects budget will aid towards the infrastructure alleviate the poor water quality that is throughout Susquehanna County that expansion of the water line along Route currently available at the jail as well as have gained momentum and now may 29 into South Montrose to connect provide potable water to all adjacent become more feasible. Working with the Susquehanna County Correctional properties including the former Bendix site. state legislators; Senator Lisa Baker and facility and the former Bendix Plant that This will aid in removing the Bendix site Representative Sandra Major; the Progress is currently listed on the Super Fund as from the Super Fund list. Authority was able to add a number of line items to the Senate Bill 680 for the Capital Budget for Redevelopment Assistance Capital Projects grant program. Currently, the Bill is awaiting action in the House Appropriations Committee. Should the Bill be passed as currently presented, Susquehanna County will see three additional line items for ongoing projects in Susquehanna County. The first project includes infrastructure improvements, renovations and construction activity at the Girl Scout Camp Archbald located in Kingsley, PA. The total renovations are estimated at $2 million and the RACP funds available for a match with Senate Bill 680 could provide up to $1 million in funding. The second line item proposed entails the development of a new industrial park along the I-81 corridor in Susquehanna County. In September of 2013, the Susquehanna County Commissioners will begin its investigation of sites along the interstate See related that have available infrastructure. The story and photo * feasibility study will take approximately on page 5 four months to complete. The Capital Budget line item for the industrial park will serve as matching funds towards the acquisition, infrastructure improvements Governor Tom Corbett speaks with attendees at the Governor’s Impact Awards Ceremony held in and development of the business park. Hershey, Pa. Chairman’s Message by Joe Andre Page 3

All too often the functions of organizations such as the needs study by Delta Development, Susquehanna County Economic Development Board go unnoticed. and the Montrose/EMHS hospital Be assured that significant commitments are contributed, with are examples. With the installation inputs from many entities. They include the county commissioners, of a water line to South Montrose, the planning commission, the board of directors, and others. The eventual occupancy of the former tireless “hands on” work by the Progress Authority is truly key, not Bendix site appears to be realistic. only as the primary support to the board, but also for its guidance A hearty thanks to everyone who and input to help resolve day to day inquiries. contributes their time and talents The natural gas industry has impacted our county in more ways in support of the Board. Input than can be easily recognized in just a few years, dramatically from any source is always welcome affecting the area’s economic base, with more dynamic changes and appreciated. We expect that looming ahead. The Economic Board equally places a high the coming year will bring exciting priority on projects that are not directly tied to the gas industry. challenges, with new opportunities for Development of the Hallstead Foundry site, supporting a housing economic growth.

Progress Authority Susquehanna County 2013 Work Program

➤ Meet Monthly with the Economic Development Advisory Board ➤ Implement strategic plan goals and the County Commissioners in Order to Prioritize Projects of ❍ Review Organizational Articles of Incorporation Significance to Susquehanna County ❍ Organizational Sustainability ➤ Meet Periodically with the State and Federal Legislators to ❍ Infrastructure Development Provide Economic Development Updates and Project ❍ Value Added Natural Gas Development Opportunities. ❍ Housing Development ➤ Continue to Administer the Susquehanna County Enterprise ❍ Revolving Loan Fund Structure Guidelines Zone and Grow Local Financing Resources through 2012-2013 ❍ Post-Secondary Education Fiscal Year ❍ Auditing ❍ Administer the Revolving Loan Funds and SSBCI funds ➤ Foster Strong PREP (Partners for Regional Economic to Businesses located within Susquehanna County Performance) Primary Partnership with NTRPDC and ❍ Apply for a Keystone Communities Designation to aid NEPIRC and Associated Partners. in Business Development beyond the Enterprise Zones. ➤ Actively Recruit Energy Companies and their Subcontractors to ❍ Assist Forest City Borough and Greater Forest City Locate Field Offices in Susquehanna County Industries in the Management of the Forest City Revolving ➤ Encourage Energy Companies to Develop Business Loan Fund Opportunities with Existing Local Firms through Local ➤ Explore Additional Bond Financing Opportunities to Support Economic Engagement Strategies and Other Local Initiatives Economic Development Projects ➤ Explore Value Added Opportunities to Attract Manufacturers ➤ Maintain Progress Authority’s DCED Certification and Actively that Can Capitalize on Local Marcellus Shale Natural Gas Promote Relevant Financing Programs Resources ➤ Act as a Conduit for State and Federal Funding Sources that ➤ Implement Specific Critical Projects, Including can Benefit Private Business Projects ❍ Assist Endless Mountains Health System with the ➤ Solidify Relationships with all Major Employers in Construction of its New Hospital and the Management of Susquehanna County to Create Awareness of Progress the RACP Award Authorities Capabilities and Funding Opportunities ❍ Continue to Support Efforts to Extend Public Water to the ➤ Support Key Infrastructure Projects and Enhancements Susquehanna County Correctional Facility and Recycling Involving Public Water, Sewer, Electrical, Natural Gas Center Distribution and Transmission Pipelines, Telecommunications ❍ Work with Greater Forest City Industries to Continue to and Data Infrastructure, Primary and Secondary Roads, and Seek Occupancy for the Vision 2000 Industrial Park Rail ❍ Establish an Industrial Park along the I-81 Corridor ➤ Maintain an inventory of Potential Business Development Sites ❍ Promote Redevelopment of the Hallstead Foundry Site in Susquehanna County ❍ Promote Upgrades at the Gibson Interchange of Interstate ➤ Continue to Market Key Business Development Sites and Seek 81 to Allow Future Development Along Route 848 and Occupancy for Available Vacant Industrial/ Oliver Road Commercial Facilities ❍ Continue to Work with Leatherstocking, LLC for the ➤ Actively Recruit Energy Companies and Their Subcontractors development of the Natural Gas Distribution Lines ➤ Continue to aggressively leverage private investment to ❍ Continue to Work with Gathering maximize impact to job retention and creation. ❍ Organize a Fourth Marcellus Shale Business-to-Business Expo to Promote Local Business Contracting Opportunities Page 4 Endless Mountains Health Systems Update The new Endless Mountains Health and participation with the generous will soon have a state of the art health care Systems critical access hospital currently contributions exemplify the need for the facility that will serve its communities for under construction is nearing completion new medical facility. Susquehanna County many years to come. as it expected by late October of 2013. At the end of July, the Endless Mountains Health Systems’ new facility located on Route 706 was approximately 75% complete according to reports by the project architect, Randy Cole, of Stratton Brook Associates. The new acute care hospital includes a laboratory, imaging, surgery, respiratory, and emergency departments, physician medical office space, pharmacy, and café space. Funding to complete the project includes a $4 million Redevelopment Assistance Capital Program Grant, and a USDA Rural Development direct loan and other state and federal funds. The Progress Authority serves as the conduit agency for the RACP grant. Last year, the Cabot Oil & Gas Community Challenge raised $3.2 million for the project with Cabot donating $2.2 million towards the challenge. Other contributions included the $1 million donation from the Harry & Jeannette Weinberg Foundation. The community involvement Cabot Celebrates Vast Impact of CNG Investment

Regional, Statewide and National colleges that have expanded their course station in Susquehanna County for Cabot Benefits of Compressed Natural Gas offerings to meet the growing demand for to fuel their 60 vehicles, and drilling and employees in the industry. fracturing equipment that run on natural Demonstrated at Major Event The topics covered by the speakers at gas. In addressing the commitment Cabot the event included the growth of jobs and has to the area and their roots that keep [Springville, PA] Cabot Oil & Gas small businesses in the region, education growing in the region, Gary Hlavinka, the Corporation hosted a Natural Gas and training by area colleges for students company’s Regional Operations Manager Celebration to highlight the benefits interested in the natural gas industry, said, “Cabot’s strategic approach to gas of expanded natural gas usage across the increased usage of natural gas in development has enabled our company to northeastern Pennsylvania. The event operating equipment and vehicles, and the produce unprecedented amounts of natural featured displays by companies and economic impact of the industry throughout gas from the ‘sweet spot’ of the Marcellus organizations throughout the region that northeastern Pennsylvania. Shale deposit. are using natural gas in their equipment Additionally, Cabot Oil & Gas Corporation and products, as well as displays from local celebrated the opening the first CNG fueling Continued on page 7 *

• LIME - FERTILIZER - SEED • D&P: PaDs – RoaDs – PiPelines Specializing in custom orders. None too large or small. Bulk or bagged. FaRmlanD, Game Plots, inDustRial ANDRE & SON, INC. Montrose, PA • andreandson.com • 570-278-1131 Governor Corbett’s Inaugural ImPAct Awards Page 5 On May 23rd, 2013, nearly 700 people or the Partnerships for Regional Economic drive. attended the Governor’s Impact Awards Performance (PREP) network. The Other Northern Tier nominees from the Ceremony in Hershey, PA to honor the Northern Tier Region nominated up to five local area were as follows: outstanding businesses that were businesses for each of the categories. Community Impact Award: Cabot Oil & Gas, recognized as a finalist within its region for Susquehanna County’s Entrepreneurial Chesapeake Energy, Procter & Gamble the following categories: Community Impact dynamo, Adam Diaz, received the Northern Paper Products, and Williams Companies Award, Entrepreneur Award, Export Impact Tier’s Entrepreneur Award. Mr. Diaz, owner Jobs First Impact Award: Diaz Companies, Award, Jobs First Award, and the Small of Diaz Companies has grown from one Southwestern Energy Co, and Williams. Business Impact Award. business to owning five businesses today. Small Business Impact Award: BX3 Inc, Businesses were nominated by the State’s His rapid growth and business expansions Golis Machines, and Twig’s Café. Regional Economic Development Partners are undoubtedly due to his work ethic and

“LOCAL GAS FOR LOCAL PEOPLE” Page 6 Countywide Housing Assessment Begun The Susquehanna County Commissioners have entered into a identify the future housing needs for the County and areas where contract with Delta Development Group from Mechanicsburg, PA development should occur. to serve as the consultants for a Countywide Housing Assessment. It is expected that the full report on the Countywide Housing The housing assessment will look at available demographic Assessment will be available in late October of 2013. The information in regards to the existing housing stock and workforce Central Bradford Progress Authority helped to secure $10,000 as well as meet with various stakeholders in the community to of Municipal Assistance Program Funding from the DCED to help gain a better understanding of the impacts local residents have subsidize the study. experienced due to the Natural Gas Industry. The study will help to

Progress Authority SSBCI Revolving Loan Fund Update Last March, the Progress Authority began accepting applications dry kilns to use at the factory. for the State Small Business Credit Initiative Program (SSBCI) We have received word from the DCED that the state has met from the first round of $333,333 of the $1 million awarded to its target of 80% of the total funds of the first third have been the Authority by the Pennsylvania Department of Community and committed, with the Authority loaning its entire first round amount. Economic Development. In May 2012, the first SSBCI loan was We are now anticipating the receipt of the second round of funding approved for Diaz Manufacturing for renovations at the former of $333,333, which will be available to small businesses located Donald Dean & Sons manufacturing plant for the purchase of two in Susquehanna, Bradford, Sullivan and Wyoming counties.

South Montrose Waterline Project Advances The Route 29 South corridor from Montrose has commercial/ Price, where these facilities are located in a small development industrial, residential and public mixed uses. The current primary cluster. Susquehanna County and PA American Water Company concern is to connect public water to the Susquehanna County are working to develop the project. The Progress Authority has Correctional Facility, the previous recycling center and adjacent been pursuing both state and federal funding sources to construct lands including the previous Bendix site. The public facilities are the line, which will provide great benefit to the corridor. Estimates currently serviced by wells that are inadequate in volume and of construction costs exceed $1,200,000 and an accelerated water quality. construction schedule is being developed. Public water will be initially extended along Route 29 to Ellsworth

570-265-8968 Full Color Printing • Graphic Design • Web Services Digital Printing • Advertising Specialties • Signs • Marketing LLC Printing Design Signage Marketing Mailing Web Route 6 • WYSOXGG PA ambal• WWW.GAMBALPRINTING.COM CabotPage 8 Celebrates Vast Impact of CNG Investment Page 7

Cabot Ribbon Cutting: George Stark, Director of External Affairs, speaks at Cabot Ribbon Cutting: Diaz CNG Truck the event. Continued from page 4 the area to meet the workforce needs offers students. Our goal at Lackawanna Because of our production success and the of the industry and to provide College is to educate the next generation innovative way we operate, our investment maintenance training on the new of leaders in an industry that offers great in the region continues to grow. This CNG natural gas vehicles and fueling promise for our region, our state and filling station and the equipment on display stations in the area. indeed our nation. Lackawanna College is here are examples both of our deepening • Expanded infrastructure across committed to working in strong partnership roots and our application of the latest northeastern Pennsylvania that will with Cabot to ensure that this promise is technology as an industry leader.” continue spurring innovation and realized in all our students.” The topics addressed how the expanded economic growth for years to come. ANGA, America’s Natural Gas Alliance, access to natural gas in the region has Representatives of local, state and federal and other industry organizations were resulted in many benefits including: elective offices attended the event as represented at the event. Amy Farrell, • Availability of filling stations to supply well as numerous industry and business vice president of market development at companies converting their fleet leaders from throughout the region and America’s Natural Gas Alliance said, “Steps vehicles and individuals who convert the Commonwealth. Patrick Henderson, by Cabot and other ANGA members to their personal cars. Energy Executive, Office of Governor use natural gas in a range of applications • Decreased use of gasoline and diesel Tom Corbett related, “Governor Corbett from fueling vehicle fleets to powering replaced with less expensive CNG that appreciates Cabot Oil & Gas’ efforts drilling equipment just shows our industry’s is allowing companies to reduce costs to bring together so many community commitment to the benefits of using and individuals to save money at the stakeholders for the ‘CNG Celebration’ natural gas.” She then continued, “This pump. in Springville, PA. With representatives clean, abundant and affordable resource • Use of a fuel that is cleaner for the from large and small employers, along offers immense benefits to our customers environment and is reducing with leaders from PA higher education in power generation, industrial applications dependency on foreign fuels. institutions, and other community leaders, and transportation fleets and it also makes • Multiple grants from the Department this event provides a great forum to our own operations cleaner and less costly. of Environmental Protection to help highlight both the current and future We are thrilled to support Cabot at their businesses and individuals convert job growth and education opportunities CNG Celebration.” their vehicles. presented by the safe and responsible Cabot Oil & Gas Corporation, headquartered • A growing need for engineers to design development of the Marcellus Shale.” in Houston, Texas, is a leading independent natural gas engines and the Mark Volk, president of Lackawanna natural gas producer with its entire resource mechanics to keep them operating. College, which offers a curriculum in the base located in the continental United • Expanded course offerings from study of petroleum & natural gas, stated, States. For additional information, visit colleges and universities around “Our school recognizes the nearly limitless Cabot’s blog at www.wellsaidcabot.com growth potential the natural gas industry 4th Annual Northern Tier Marcellus Shale Business Expo Held

On Friday, June 21st, 2013, the Troy products and services. The event serves as a Friday instead of a Saturday. While less of Fairgrounds hosted the 4th Annual a networking opportunity for businesses as the general public was in attendance, there Northern Tier Marcellus Shale Business well as for the general public to come and were better opportunities for businesses to Expo. Over 170 businesses from 10 learn about the industry. interact with each other and lots of positive states participated in the event this year, This year’s event, although smaller than feedback was given to the Northern Tier ranging from heavy equipment operators the previous year’s participation seemed Marcellus Shale Business Expo Planning to environmental services to local colleges to be a great success for the businesses in Committee. and more, set up booths showing off their attendance because the event was held on Page 8 Keystone Opportunity Zone Designation Under Consideration The Pennsylvania Department of are designated by local communities and their investments for job creation and Community and Economic Development approved by the Department of Community retention. is accepting applications for Keystone and Economic Development. Zones provide The KOZ has a 10 year life span. Currently, Opportunity Zone designations (KOZ). specific state and local tax benefits and several underutilized sites in Susquehanna The KOZ program is one of the nation’s entitle businesses to certain tax benefits County are under consideration for boldest and most innovative economic and when they locate in a zone. By providing the potential KOZ designation. The application community development programs. Zones tax incentives, businesses can maximize deadline is October 1, 2013. South Montrose Prior Bendix Facility Site Moves Forward With the cooperation of the Pennsylvania Progress Authority staff met with • Report to EPA each calendar year Department of Environmental Protection Honeywell environmental and real estate confirming restrictions are being and Honeywell Corporation, the Progress representatives to ascertain the site adhered to. Authority has been able to gain a current remediation status and reuse potential. A • Land use will be restricted to status and disposition on the South remediation summary was provided for the commercial/industrial use. Montrose/Bridgewater Township former 66 acre site, which recently had the former Honeywell Corporation is now in a position Bendix Manufacturing site, now owned by manufacturing facility demolished, with to adaptively reuse the site for commercial/ Honeywell Corp. some continued groundwater remediation industrial use, thus providing a useful site The facility was operational from 1952 and monitoring equipment still in place. As for investment and job creation. Currently, through 1996; manufacturing wiring a result of the ongoing cleanup efforts, an the Progress Authority is working will all harnesses and circuit breakers for the environmental covenant has been agreed authorities to reoccupy the site. Other military. This manufacturing process left to with the EPA that has the following potential site amenities are the installation chlorinated solvents disposed on-site which provisions: of the South Montrose public water line led to contamination in the groundwater. • Groundwater cannot be used without and the consideration of a Keystone The EPA has oversight of the soil and treatment. Opportunity Zone designation to further groundwater cleanup and assessment • Any new buildings require vapor strengthen the site’s attractiveness. activities that are ongoing at the site. intrusion barriers.

Progress Authority Contact Information Central Bradford Progress Authority Susquehanna County 1 Elizabeth Street • Suite 3 Commissioners Towanda, PA 18848 Toll Free...... 888.263.0937 Alan Hall...... Chairman Local...... 570.265.0937 Michael Giangrieco...... Commissioner Fax...... 570.265.0935 Web...... www.cbprogress.org MaryAnn Warren...... Commissioner Email...... [email protected]

Susquehanna County Staff Economic Development Advisory Board Anthony J. Ventello Joe Andre...... Chariman Executive Director George Conner Adam Diaz Lauren Hotaling William Owens Economic Development Manager Steve Tourje John Kameen Kim Kulick William Kelley Executive Assistant Brian Hinkley CBPA is an Equal Opportunity Lender