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Issue No. 1 incentis group Newsletter
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March 2009
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Greetings!
Welcome to the incentis group Newsletter. This is the first of what
will be bi-monthly publications. We have created this newsletter to keep
you, our valued business partners, in-the-know on incentis group projects and
services and changes in the economic development industry that may benefit your
projects. We hope you find this information useful in your project
planning.
If your business is growing or experiencing changes, you may be eligible for
incentives, credits or other benefits from your State and Local
governments. In addition, if you find any of the information in this
issue pertains to your company's projects, please contact Karen Warren to
discuss further opportunities.
Karen Warren, VP of Business Development
P: (561) 493-9558
F: (561) 584-5128
kwarren@incentisgroup.com
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Downsizing and Consolidating Operations
The current economic environment is negatively impacting almost every
industry and business.
Is
your company involved with any of the following?
· Consolidating operations
·
Reducing employment at existing locations
·
Investing in plant and equipment that will upgrade
technologies but reduce employment levels
·
Making routine capital investments to maintain operations
and retain employment
·
Losing incentives already secured due to lack of stated
investment and job creation goals
If so, know that there are ways to
help mitigate the impact it is having on your business, and programs that can save
your company money. Incentis group is able to assist in downsizing and
consolidations and incentive restructuring negotiations. States and communities are continually looking at new ways to not just attract
new business, but to retain the business they already have. There are many
opportunities to obtain assistance for job retention and to maintain current
incentives that are at-risk due to short-comings on prior project goals. Our
professionals recently negotiated a $7,000,000 incentive package for a company
that was investing in
new equipment and
technologies, but actually reducing headcount. States and communities realize
they need to be aggressive in the current economic climate in order to retain
business facilities and their jobs.
For more information on the programs available in areas where you are experiencing consolidation or downsizing, please contact James Gomochak at 312-421-3482 or JGomochak@incentisgroup.com.
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incentis group Success- Central Pennsylvania
In a recent press release, Pennsylvania Governor Rendell highlighted
an incentis group project that resulted in outstanding results for our
client. Our client was considering whether to build a 150,000-square-foot
distribution center in East Central Pennsylvania. The project would
create 100 new jobs in the local community.
In December of 2008, our client and the local Economic Development Corporation were
offered over $1.4 million in funding.
Components of the comprehensive package included a $490,000 opportunity
grant, a $500,000 infrastructure development grant, $125,000 in job training
assistance, and $294,000 in job creation tax credits. As a result of
these incentives, the client chose to locate its new distribution center in
East Central Pennsylvania.
The new facility will be built in a business park and it will serve as a
distribution center to support the client's northeastern U.S. customers. Site preparation
for the project is underway, and the company expects the facility to be
operational by late 2009.
For information on the services provided during this project or to learn more about incentives in your area, please contact James Gomochak at 312-421-3482 or JGomochak@incentisgroup.com.
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American
Recovery and Reinvestment Act Stimulates Economic Development
The $787
billion stimulus bill signed by President Obama in February included
funding for many existing federal and state initiatives, including: Tax
relief for individuals; new Infrastructure construction; Health Care; Education;
State and local budget deficits; and renewable Energy and Science.
From a state and local incentives perspective, we believe the ARRA will
directly impact growing businesses and community economic development in
two ways:
1) Expansion
of financing options for 2009 and 2010 and
2) Cashed
up State Economic Development organizations.
The ARRA
establishes several new types of bonds, including "Build America
Bonds", "Recovery Zone Economic Development Bonds", and
"Recovery Zone Economic Facility Bonds". There are tax
advantages with the bonds, and guidance from the IRS
on the technical aspects is still forthcoming.
We see this
as a unique time for our clients seeking financing to expand their
business. Beyond 2010, it is unclear whether these programs will expire,
or if the government's influence in the public and private finance sector will
continue.
The second
major impact on incentives from the ARRA will be how states utilize
the influx of cash they will receive to balance their FY2009 budget. State
may feel obligated to increase efforts to attract new companies,
especially those perceived to be high-paying, hi-tech, and
"green-collar" jobs.
We believe all
companies facing today's challenges that are dedicated to continued stability
and growth will be able to receive the full support of state and local
governments, and may receive valuable incentive and credit packages
to assist in their future success.
For more information on the ARRA or its potential impact on economic development incentives, please contact Jeremy Huelsman at 513-240-8065 or JHuelsman@incentisgroup.com.
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Message from the CEO
We have all read the
Media's reports these past several months that continually remind us of the
dismal economy and the expectations for more hard times ahead. There
are only glimmers of optimism among economists and pundits alike. Many are looking for a bottom before they
will boldly predict an upturn. They seek
a bottom in the stock markets, the credits markets, and the jobs markets. Only then will they have comfort enough to
believe that the worst is past.
We at incentis group
are not looking for the bottom. We are
looking for the "Top". And we can see
clearly enough that it is coming more quickly than many project. Our business is a barometer of the economy,
as it depends upon new investment in capital and jobs by our clients. Truly, our clients were pulling back and
waiting in the last quarter of 2008 and early part of this year. But, many companies are beginning to
re-engage by investing in existing and new operations. We are seeing the beginning of the turn upward. I hope you will join us in looking for the
Top.
Larry Kramer
Chief Executive Officer
incentis group
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incentis group is a national
firm of incentives and credit professionals who provides incentive and
credit negotiations on behalf of
Companies that are making acquisitions, routine capital investments,
hiring/training employees, expanding/downsizing facilities and other
activities in the United States,
Canada
and other parts of the world. If
your business is growing or experiencing changes, you may be eligible
for incentives,
credits and other benefits from your Federal, State and Local
Government.
Additional
services offered by incentis group can be located on our web site www.incentisgroup.com or by contacting
our Vice President of Business Development, Karen Warren at 561-493-9558.
Sincerely,
Incentis Group
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