OGDENSBURG — Millions of dollars in investments at multiple companies that will create dozens of new jobs in St. Lawrence County made 2018 one of the most active economic development years in recent memory, according to Patrick J. Kelly, executive director the St. Lawrence County Industrial Development Agency.
In an interview this week, Mr. Kelly said there are multiple projects underway in several communities, including Massena, Ogdensburg, Potsdam and Canton that should help strengthen the north country’s economy. He said investments in those communities and others will not only preserve hundreds of existing jobs, but create new ones across the region in the coming years.
“2018 was a busy year for us, probably the most active year we’ve had in over 10 years, if not more,” Mr. Kelly said. “I’m hopeful that this is a pattern of greater economic activity, not an isolated event. To make a lasting impact, we need every year to be like 2018, and we’re trying to make it the norm, not an exception.”
Last year was encouraging when it comes to economic development in St. Lawrence County because of the wide variety of projects and range of locations involved, according to Mr. Kelly. As such, he said the scale of economic investment currently underway is impressive.
In particular he pointed to major expansions at Corning in Canton and at the North Country Dairy factory in North Lawrence.
In the case of North Country Dairy LLC, success actually began with an $800,000 low-interest loan several years ago aimed at helping the company later invest $10 million to modernize the facility with a goal of creating 55 jobs. However, the company has surpassed the initial job requirement from that project, and now employs 73 people at the facility, according to Mr. Kelly.
Because of that success, Mr. Kelly said this past year the IDA and the St. Lawrence River Valley Redevelopment Agency agreed to provide an additional $1 million in loan funds to enable to company to again expand, this time with a goal of adding 17 full-time jobs. He said the company’s total investment in the latest expansion will be about $3.4 million.
Likewise, in what he deemed another major success of 2018, Mr. Kelly pointed to the IDA’s involvement in a new $14 million expansion at the Corning plant in Canton. He said in May the IDA began working with Corning Inc. to add 2,280 square feet for material storage and handling, 7,565 square feet of office space, and environmental improvements including the addition of nearly 4,000 square feet to the existing bag house at the facility. Approximately 4,400 square feet of existing space will also be renovated and converted for manufacturing to increase furnace capacity.
Mr. Kelly said the expansion will help retain about 250 jobs at the Canton facility, and has the potential to create more. He said over the past four years Corning has added nearly 60,000 square feet of manufacturing and warehousing space to the local plant through a series of IDA projects.
“There isn’t a county in the state, or anyplace for that matter, that wouldn’t be happy to have companies like Corning and North Country Dairy making multi-million-dollar investments, adding both production capacity and workers,” Mr. Kelly said.
While the Corning and North Country Dairy expansions may top the list of economic development in 2018, Mr. Kelly said there are multiple smaller, yet equally important business expansions underway in St. Lawrence County aimed at creating dozens of new jobs.
He said North American Forest Group’s acquisition of the former ACCO building in Ogdensburg to create a new sawmill operation with a potential to employ 20 people is one example. He also pointed to two other companies — From the Heart Cabinetry and AmTech Yarns — that are taking over buildings in the Potsdam and Massena industrial parks. Mr. Kelly said both are prime examples of small businesses revitalizing what were once considered to be underutilized properties in each of those communities.
“Each of these properties will be put to better use than they have been in years,” Mr. Kelly said. “Our goal is to use our buildings, and the properties we are redeveloping, like the Newell Building (in Ogdensburg), to help create jobs and to add to the tax base. There isn’t a community, school district or resident in this county that can’t benefit from that process.”
Mr. Kelly said the IDA and its partner development agencies helped provide more than $2.5 million in loans and leases during 2018, made progress on cleaning up the J&L mine site in Star Lake, and provided a million dollars of funding for community development projects with the River Valley Redevelopment Agency.
“The Power Proceeds Fund from the New York Power Authority was really put into use during the year, with over $1.5 million in local awards,” Mr. Kelly said. “Years of work by a lot of stakeholders went into the creation of that fund, and getting the money out into local projects is a great sign of progress.”
With such a robust year in 2018 regarding business development, Mr. Kelly said he worries that unforeseen setbacks like the potential for prison closings in the region could offset recent economic gains. However, he said it is important to remember that economic development projects rarely just materialize, and usually involve a long development cycle — and a lot of ups and downs along the way.
“In addition to the struggle to find new projects for the area, I worry about the threat of closure to our three prisons and I know that all of our firms, big and small, face their own slew of operational, marketing and industry challenges,” Mr. Kelly said. “As we’ve seen in the past week, these challenges can create sudden and profound impacts to our local workers and economy. That said, we have created a strong economic development strategy, one that we said we would follow, not just put on a shelf, and we have done that, and we’re continuing to do it. I think this gives us the best chance for success.”
Some key IDA projects during 2018 included:
n AmTech Yarns Inc., a Canadian-based manufacturer of industrial yarns, deciding to establish a U.S. production facility in the Massena Industrial Park. AmTech is a subsidiary of a Canadian company that specializes in manufacturing a variety of twisted, air-entangled and air-textured high-performance yarns for application in aerospace, firefighting, military, automotive, wire cabling, rope and cordage and other industries. The company is acquiring the 20,000-square-foot Lot 18 building at the Massena Industrial Park and is building a 3,600-square-foot addition to the building to accommodate equipment for the operation. Additionally, the New York Power Authority Proceeds Allocation Board has recommended to the NYPA Board of Trustees approval of a grant for $370,000 to assist with the project. It is expected the project will create 11 new jobs over three years.
n The acquisition of the former ACCO manufacturing building in the town of Oswegatchie by North American Forest Group Inc. In October, the IDA-LDC authorized a loan of up to $400,000 to North American Forest Group Inc. for the proposed acquisition and updating of the former ACCO Manufacturing facility in the town of Oswegatchie. The IDA compiled a financing package for the $2,000,000 project from a number of local and regional funding sources, including a $400,000 IDA loan and a $100,000 loan from the RVRDA. The project is expected to create 20 jobs over the next three years.
n The IDA-LDC and RVRDA assisted Kingston Pharma with an equipment lease in November 2016. The RVRDA authorized a loan of up to $96,000 to the company to assist in the purchasing of equipment. At that time, the company had 11 full-time equivalent employees and pledged to create five more jobs as part of the equipment lease project. The company has exceeded those projections and currently has 25 full-time- equivalent positions at the Massena facility. Subsequently, the transition of the Lot 18 building in the Massena Industrial Park to AmTech Yarns has allowed Kingston Pharma to move warehoused materials from the Lot 18 building to the St. Lawrence Centre mall in Massena. IDA staff helped to facilitate this arrangement. Relocating to the unused mall space is a positive development as it converts to a warehousing location for Kingston Pharma and will assist the mall in generating revenue from space that has been unused.
n In May, the IDA authorized a project with Corning, Inc. to assist with a $14 million expansion at the Corning Canton plant. The project will help keep approximately 250 jobs at the Canton facility.
n From the Heart Cabinetry, a tenant in the Potsdam Commerce Park building, is in discussions with the IDA to acquire the building. The company recently received a recommendation for an award of $95,000 for the project from the Northern New York Power Proceeds Allocation board. The IDA facilities manager has been the primary contact with the company and has assisted the company as it completes an application for Excelsior Tax Credits through Empire State Development for the proposed project. From the Heart Cabinetry currently employs five people and is hoping to add five as a result of the project.
n The IDA-LDC and RVRDA approved a loan for $44,600 to Adirondack Fragrance & Flavor Farm as part of a project that includes purchasing and installing product wrapping equipment, purchasing peripheral equipment and fixtures, making facility improvements to expand production process efficiencies, as well as working capital to help expand the business.
The project will assist in the retention of six jobs and the creation of 1.5 new full-time-equivalent positions over the next three years and will help with the production, packaging and selling of locally-made products both in and outside of this area.
n Loan financing was provided to Bregg Winery Inc. in the amount of $30,000 for the purchase of equipment to produce fruit juices, hard ciders and wine at the facility the company is renovating on Main Street in Norfolk. The company has agreed to retain one full-time-equivalent position and create a part-time position as part of the project.
n The IDA Civic Development Corp. approved a loan for $130,000 for the Town of Oswegatchie Crematory. The town constructed a crematory facility at Foxwood Memorial Park in late 2017 and is using all proceeds from the crematory to maintain the property. The town has applied for a loan to assist with financing a second crematory chamber at the facility.
n The IDA authorized an application to the Rural Business Development Grant Program in the amount of $57,850 for the benefit of LC Drives in Potsdam. The company was awarded an RBDG in 2017, along with a Loan and a Convertible Note from the IDA-LDC. The company now employs 16 people in the Damon Hall incubator facility in the former downtown Clarkson campus.