CBICC INSIGHTS INTO THE ISSUES, INDIVIDUALS AND ACTIVITIES THAT ARE
GAZETTE THE CENTRE COUNTY
ADVERTISING SUPPLEMENT OF
front Centre
May 2014
DRIVING ECONOMIC GROWTH IN CENTRE COUNTY
VOTE MAY 20th AT YOUR REGULAR POLLING PLACE. The proposed project on Westerly Parkway is a comprehensive, long-term solution for all of our students. This project achieves three major goals, identified by the district and the community: Update Aging & Deficient Facilities WHY: Our nearly 60-year-old facilities do not meet current codes or ADA standards and have failing, obsolete mechanical systems.
Enhance the Educational Environment WHY: An investment of this magnitude must provide a building design that better meets the educational needs of all our students.
Increase Safety and Security WHY: With two buildings on an open campus divided by Westerly Parkway, students currently walk through parking lots and across a major thoroughfare between class periods.
Your Vote on May 20th matters. ALL registered voters are eligible, including Independents. A successful referendum vote is needed to fund the high school project. Our community. Our children. Our future. Paid for by the State College Area School District.
2 | May 2014
http://www.scasd.org/statehighfuture
fronttCentre
www.cbicc.org
front Centre
GAZETTE THE CENTRE COUNTY
4 — A message from the CBICC
403 S. Allen St., State College, PA 16801 Phone: (814) 238-5051 • Fax: (814) 238-3415 www.CentreCountyGazette.com
5 — Developers look to fill remaining space at Summit Park
PUBLISHER Rob Schmidt
MANAGING EDITOR Chris Morelli
SALES MANAGER Don Bedell
AD COORDINATOR Bikem Oskin
ADVERTISING CONSULTANTS Amy Ansari Vicki Gillette
ADMINISTRATIVE ASSISTANT Brittany Svoboda
BUSINESS MANAGER Aimee Aiello
GRAPHIC DESIGN Beth Wood
6 — Pa.’s new transportation funding law ‘green lights’ CATA expansion 10 — 30 years of business incubation: turning innovative research into viable business ventures 14 — Titan Energy Park redevelopment effort focusing on high-tech industries 17 — Economic Development Perspective 19 — Introducing … CBICC’s Gateway Group: carving a niche for young professionals
CONTACT US: To submit News: editor@centrecountygazette.com, Advertising: sales@centrecountygazette.com The Gazette is a weekly newspaper serving Centre County and is published by Indiana Printing and Publishing Company. Reproduction of any portion of any issue is not permitted without written permission. The publisher reserves the right to edit or reject any advertisement for any reason.
22 — Positioned for growth: INDIGO Biosciences and Actuated Medical 25 — 3B33: Bringing balance to Centre County’s economy 28 — Centre County businesses ‘front and center’ on ‘JOBS1st on the Road’ tour
Home Equity Loan 5-Year Term
www.cbicc.org
fronttCentre
2.99
% APR* Fixed Rate
$179.63/Month for $10,000*
May 2014 | 3
A message from the CBICC
Officers
Welcome to front + Centre! Strengthening Centre County’s economy and quality of life are at the heart of the Chamber of Business & Industry of Centre County’s mission. Every day, the CBICC and its members work collaboratively with local and state elected officials, community leaders and economic development partners at all levels to support economic development activity and make Centre County a great place to live, work and conduct business. front + Centre is designed to offer insight into some of the ways VERN SQUIER the CBICC, as the unified voice of Centre County’s business community and a champion of economic growth, is working to achieve these goals. Whether it is through assisting business start-ups and young professionals; advocating for policies that will improve the operating environment for job creators; or working behind the scenes to attract TED MCDOWELL new economic opportunities to the county and surrounding region, the CBICC and its diverse membership are dedicated to creating a healthier private sector. Through front + Centre, we are also proud to showcase the companies and individuals that comprise the fabric of the local economy — fledgling entrepreneurs on the cusp of business success; talented professionals who are positioning their companies for growth; and local developers committed to revitalizing once thriving manufacturing facilities in order to secure the next generation of job creators. We hope you enjoy reading about the success stories taking place in our own backyard, and the work being done to move the Centre County economy forward. Sincerely, Vern Squier President and CEO Chamber of Business & Industry of Centre County Ted McDowell Senior Vice President, AmeriServ Bank CBICC Board Chairman 4 | May 2014
President/CEO Vern Squier, CBICC Chair Ted McDowell, AmeriServ Bank Vice Chair William Joseph, First National Bank Secretary David Gray, Penn State University Treasurer Fred Leoniak, ParenteBeard LLC
Board of Directors
Tim Boyde .......................... Centre County Government Steve Brown ..................... Mount Nittany Health System Betsy Dupuis .............................................. Babst Calland Tom Fountaine ........................... State College Borough O.J. Johnston .................................................. Consultant Tom Kearney ........................................ First Energy Corp. Leanne Martin .................................................. M&T Bank Mark Morath .......... Hospitality Asset Management Co. Lee Myers ........................................................... Geisinger Michael Schaul ..................................... The WHM Group Brad Scovill ......................................................... Kish Bank
Ex Officio Members
David Capparella ......................... Capparella Furniture Cristin Long ............ McQuaide Blasko Attorneys At Law John Sepp .................................. Penn Terra Engineering
Chamber Staff
Vern Squier, President/CEO Lesley Kistner, Communications Director Mary Resides, Economic Development Team Specialist Hannah Benton, Events Team Specialist Andrea Harman, Membership/Committees Team Specialist Shannon Brace, Staff Assistant Chamber of Business & Industry of Centre County 200 Innovation Blvd., Ste. 150 State College, PA 16803-6602 (814) 234-1829 Fax: (814) 234-5869 E-mail: aharman@cbicc.org Website: www.cbicc.org Published by The Centre County Gazette 403 S. Allen St. State College, PA 16801-5252 (814) 238-5051; (800) 326-9584 Fax: (814) 238-3415 E-mail: rschmidt@barashmedia.com Website: www.centrecountygazette.com
fronttCentre
www.cbicc.org
Developers look to fill remaining space at Summit Park Summit Park developers continue to look for two to four small companies to fill the 200,000 square feet remaining for lease at the College Township industrial park, which would complete the goal of revitalizing the former Corning/Asahi complex. When Corning/Asahi ceased manufacturing glass television tubes at the facility in 2003, one of Centre County’s major employers was gone. But that wasn’t the end of the story for the facility on East College Avenue and its positive impact on the area’s economy. A group of investors — Dale Summit Acquisitions LP (consisting of Dan Hawbaker, Galen Dreibelbis, Don DeVorris and Bob Poole)– began the process of purchasing the facility in 2005, with visions of converting nearly 400,000 square feet into prime warehousing, general manufacturing and office space. The Centre County Industrial Development Corporation, CBICC’s economic development arm, helped secure a $2.25 million low-interest loan from the Pennsylvania Industrial Development Authority for acquisition of the facility. More than a decade later, the Summit Park commercial, industrial and office park continues to welcome new businesses ... and jobs. Existing tenants include Penn Centre Logistics; Keller Engineering; Swift Kennedy and Associates; Helpmates; theprinters.com; Homewatch Caregivers; ASAP Hydraulics; Glenn O. Hawbaker paint shop; Mount Nittany Medical Center; Centre County Mental Health/Intellectual Disabilitites/Early Intervention/ and Drug & Alcohol Offices; Conviber; and eLoop. Hawbaker said the Summit Park facility offers great amenities to potential business tenants, including high ceilings, out parcels, laboratory and office space, and the potential for rail service. However, flexibility might be the strongest selling point for the remaining space. “We will sit down with potential tenants to determine their specific needs and what modifications to the existing space might be needed, and we will finalize the lease agreement from that point,” he stressed. “We applaud the work of Dan and those who have worked hard over the years to transform the site and ensure its continued contribution to the Centre County economy,” CBICC President and CEO Vern Squier said. www.cbicc.org
An aerial view of Summit Park on East College Avenue.
For more information on leasing space at Summit Park, call (814) 272-0353.
BY THE NUMBERS
www.VisitPennState.org
fronttCentre
May 2014 | 5
Pa.’s new transportation funding law ‘green lights’ CATA expansion Act 89 of 2013 also sets stage for long-overdue Centre County highway/bridge projects The Chamber of Business & Industry of Centre County and its members actively supported and advocated for enactment of the state’s comprehensive transportation funding law (Act 89 of 2013) because of its importance to efficient commerce and to the safety of the motoring public. The influx of transportation dollars — an additional $2.3 billion annually by fiscal year 2017-18 — is allowing the state to begin to address an aging infrastructure system that hinders efficient commerce, as well as provide funding for mass transit and numerous modes of transportation. For Centre County, the law will enable long-overdue highway and bridge construction/replacement projects to move forward, resulting in the preservation of transportation industry-related businesses and jobs; the potential for new job opportunities; and the possibility of business growth along new and improved transportation corridors. Act 89 is also making possible a Centre Area Transportation Authority expansion project that has been in the planning stages for four years by providing the state capital funding share that was needed to turn the plan into reality.
NEW FACILITY WILL ACCOMMODATE CURRENT, FUTURE CATA GROWTH
CATA began planning for the expansion in 2010, according to Louwana Oliva, CATA assistant general manager. “We’d simply outgrown the facility,” Oliva said of the complex situated on 7.9 acres in Ferguson Township. One of CATA’s biggest needs is the ability to house all of its natural gas powered buses under one roof, and to create room for more efficient fueling operations. (In 2005, CATA became the first transportation agency on the East Coast to have replaced its entire fleet with one that operates solely on clean compressed natural gas.) The current bus storage and maintenance area is 54,840 square feet, which forces the transportation authority to operate its 71 buses, most of which are 6 | May 2014
Renderings of CATA’s proposed new facility.
40-foot long and 102-inches wide, out of a facility designed to hold just 40 vehicles of a much smaller size. In addition, only 6,020 square feet is available for administrative space. Oliva said the new facility will include 63,055 square feet of bus storage, which will accommodate 96 buses under one roof, with the ability to bump up to as many as 126. “We’re making an investment that will allow us to continue to operate out of one facility for at least 20 years, based on projected growth,” she noted. CATA’s upgraded headquarters will also contain 56,089 square feet of maintenance and administrative space; and 67,800 square feet dedicated to operations/dispatch and driver work areas, facilities maintenance and a new parking deck for employees and visitors. CATA received a more than $12 million federal “State of Good Repair” grant in 2012 to help fund the project, but still needed $20 million for the expansion/renovation to move forward. Pennsylvania’s new transportation law provided that state funding, as well as an expected increase in operating assistance. Oliva said about 90 percent of the design work is
fronttCentre
www.cbicc.org
complete. CATA hopes to bid the project this summer, with the 31-month construction timeframe set to commence this fall. While some revamping of the existing campus will occur, most of the project is new construction. Oliva credited U.S. Sens. Robert Casey and Pat Toomey and Congressman Glenn Thomas for their support in securing the federal funding. In addition, Oliva thanked the state for its funding commitment to the project, as well as for allowing CATA to “piggy back” on its contract for construction management, which included the services of a value engineer who looked for areas in which CATA could save money on the project. “The state has been very helpful,” she stressed. Oliva is also quick to applaud CATA’s local municipalities that agreed to increase their local matching share over the next five years — a significant capital investment that she said will benefit all of the Centre region. “The expansion project will enable CATA to better and more efficiently serve the residents of Centre County and their transportation needs,” she said.
www.cbicc.org
CATA’s “N” bus picking up students.
ACT 89 FUNDS LONG OVERDUE HIGHWAY/ BRIDGE PROJECTS
Pennsylvania’s transportation funding law is also critical to the transportation industry in Centre County and the state, and necessary for highway and
fronttCentre
May 2014 | 7
bridge projects that will improve the transportation system. In his role as the president of the Associated Pennsylvania Constructors and a member of the state’s Keystone Transportation Funding Coalition, Dan Hawbaker, president/CEO of CBICC Success Partner Glenn O. Hawbaker Inc., played an important role in the coalition building that was necessary to get the historic law enacted. The end result was a bipartisan legislative victory this past fall — a “major accomplishment,” according to Hawbaker — that came nearly two decades after Pennsylvania passed its previous transportation funding plan. Hawbaker, who heads up CBICC’s Infrastructure Committee, said new revenue was needed to address Pennsylvania’s aged, deteriorating transportation infrastructure. Pennsylvania has 9,200 miles of roadway in poor condition, an amount that would have increased to 17,000 miles by 2017 without the investment contained in Act 89. In addition, while Pennsylvania’s 25,000 state-owned bridges are the third most in the nation, the Commonwealth leads in the number of structurally deficient bridges at more than 4,000. “From a business competitiveness standpoint, the resulting bridge and road restrictions/detours handicap logistics, which adds to the overall cost of operating a business,” Hawbaker stressed. Centre County state Sen. Jake Corman, chairman of the Senate Appropriations Committee, said “consumers are currently paying unseen costs for a transportation system that does not meet the basic needs of getting goods and services to and from consumers and businesses.” “If we are going to pay the price, we should do it for a system that provides an effective means of transportation, rather than a system that provides costs on consumers to divert products and people around weight listed bridges, travel on poor conditioned roads, and lacks adequate capacity,” he said. “An efficient business environment requires an efficient transportation network. ” Hawbaker said without the additional revenue provided by Act 89, PennDOT would function primarily at a subsistence level — able to perform general maintenance work, but unable to fully address crumbling infrastructure or move forward with vital transportation projects, including four key projects in Centre County. “As a contractor, I know what Pennsylvania has done,” Hawbaker said in reference to PennDOT’s emphasis on temporary patch and repair work on 8 | May 2014
roadways — “band-aid solutions” until money became available for reconstruction. “This approach is counterproductive in the cost realm. It ends up being money wasted. “The law gives us [the state] the wherewithal to proceed.” One of those projects — the relocation of U.S. Route 322 from Potters Mills to the Mount Nittany Expressway — could get underway in the next year to 18 months, with soil boring already in progress. Another project that holds promise for economic
PA.’S TRANSPORTATION FUNDING LAW AT A GLANCE: • Additional $2.3 billion per year by FY2017-18 for transportation; total: more than $7.36 billion over five years • Additional $1.65 billion per year for highways/bridges by year five • Additional $476 million to $497 million per year for mass transit by year five • $144 million per year for new Multimodal Transportation Fund by 2017-18
CENTRE COUNTY IMPACT AT A GLANCE: • Relocation of U.S. Route 322 from Potters Mills to the Mount Nittany Expressway, $656 million • New interchange at Waddle Road and Toftrees Exit of I-99 in Patton Township, $13.4 million • Reconstruction/re-alignment of U.S. Route 322 from west of the Route 144 intersection to the top of Seven Mountains, $105 million • I-80 bridge rehabilitation and resurfacing from Milepost 138 [Snowshoe] to Milepost 152 [Boggs Twp.], $35.5 million
fronttCentre
www.cbicc.org
PAYING FOR TRANSPORTATION INFRASTRUCTURE
GOH performs milling work in Milesburg.
development in the county is the construction of a new interchange at Waddle Road and the Toftrees Exit off I-99 in Patton Township. CBICC President and CEO Vern Squier said the bridge at that intersection has long been a chokehold for development, with planned improvements allowing for both a more efficient transportation network to service existing businesses in the area, as well as setting the stage for future commerce opportunities. The new funding law is also welcome news for transportation-related businesses and jobs in Centre County and across Pennsylvania. In the near term, the law is expected to preserve industry jobs — an estimated 12,000 total statewide, according to PennDOT. “As the law rolls out over time, it will positively benefit job creation, with the impact being felt sooner on the bridge side,” Hawbaker said. PennDOT expects as many as 50,000 jobs to be ultimately created as a result of the law. Properly investing in infrastructure is also important for business preservation. This is true not just for Glenn O. Hawbaker Inc., which employs approximately 780 people in Centre County alone — making it No. 6 of largest county employers — but to businesses of all sizes that are dependent on transportation projects. “A number of businesses in the region that rely on public works for their livelihood have gone through severe downsizing,” Hawbaker pointed out. “Some may not return to the level where they once were, but over time, they may begin to employ more workers as construction projects get underway.” Ultimately, however, Hawbaker said the main purpose of Act 89 is the maintaining and upgrading of Pennsylvania’s roadways and bridges. And with the new law, Pennsylvania is taking responsibility for its transportation infrastructure. www.cbicc.org
The gap between the state’s transportation infrastructure needs and available funding is in large part due to increased construction costs. At the same time, revenue from the Motor Fuels Tax has declined as a result of improved vehicle fuel mileage. In fact, because of improved fuel efficiency, motorists are actually paying less today to drive on Pennsylvania’s roadways than they were decades ago. Where it once cost the average motorist traveling 12,000 miles a year $582.89, in today’s dollars that amounts to $259.15. “If we had done justice by our transportation system, we would have seen gradual increases to the fuels tax over time,” Hawbaker said. “With this law, we are quickly playing catch up.” Act 89 eliminates the 12 cents per gallon tax assessed at the retail level. Gas tax revenues instead will be generated at the wholesale level through the incremental lifting of the artificial Oil Company Franchise Tax cap, which has been in place since 1983. PennDOT contends that Act 89, which phases in financing over five years, will not immediately increase the price of gas at the pump by 28 cents, which has been widely reported. That amount is based on the wholesale price of gasoline in 2018 — impossible to predict, as competition and the price of crude have the biggest impact on what motorists pay for a gallon of gasoline. The law also increases various motor vehicle fees. Act 89’s total revenue enhancements amount to just $2.50 per week for the average driver. The CBICC believes that providing a safe and efficient transportation system is an essential function of state government, and that revenue enhancements represent true user fees to support a substantial infrastructure investment that will benefit Centre County, its job creators and residents, and all Pennsylvanians. The trade-off for paying a bit more at the pump is a safe and efficient transportation network, which is critical for economic growth.
fronttCentre
May 2014 | 9
30 years of business incubation: turning innovative research into viable business ventures Centre County has long had a strong support network for entrepreneurs seeking to turn their innovative research into viable products and services. Maximizing the success of these emerging companies is the core guiding principle behind business incubation. The Chamber of Business & Industry of Centre County launched its small business incubation program in 1983 in a former elementary school building in Matternville, near Port Matilda. Early success stories from the grade school classrooms of the original incubator include Restek Corporation and Sound Technology — now staples of the local economy. More than 30 years later, the CBICC’s business incubation program continues to assist start-up technology firms as they move through the early, highrisk phase of development within a business friendly environment in the Technology Center at Innovation Park.
FROM FORMER ELEMENTARY SCHOOL TO OUTSTANDING ADDRESS AT INNOVATION PARK
The current facility, which also houses a full complement of Penn State Technology Development program and services, has been home to primarily technology-based start-up companies since 1993. At that time, the Centre County Industrial Development Corporation – the CBICC’s economic development arm – and Penn State University partnered in the construction of a 55,000 square-foot Technology Center in what was the first phase of development at Penn State’s Innovation Park. State College-based Schoolwires, Inc. got its start in the CIBCC’s Technology Center incubator. Edward S. Marflak, a graduate of The Pennsylvania State University Smeal College of Business Administration, founded Schoolwires to help school districts build stronger school communities, more effective schools and more successful students. Currently, more than one out of 10 U.S. public schools and about 12 million individuals in the United States and China rely on the company’s website management, mobile application and safe collaborative learning solutions. 10 | May 2014
Matternville School, home to the CBICC’s first business incubator.
Marflak said the CBICC’s Incubator program played a critical role in the company’s development, freeing his team to focus its energy on helping school districts to build stronger school communities and helping Schoolwires to become a great international business. “From the start, the CBICC Incubator program has been a tremendous blessing to Schoolwires,” he said. “First, it provided access and personal introductions to the CBICC’s robust network of advisors, mentors and business experts. Second, the incubator’s capable staff shared a wealth of helpful information from business insights to firsthand knowledge regarding relevant funding programs. Lastly, the CBICC’s incubator program also helped our business to meet practical needs by providing turn-key office space and shared business support services, all affordably.” The Technology Center is co-owned by Penn State and the CBICC. It is operated by The Technology Center Condominium Association. The colocation of the offices of Penn State’s Research and Technology Transfer Organization and the business incubator provide an ideal location where start-up companies can locate and have immediate access to University technology transfer services and numerous community business support services.
fronttCentre
www.cbicc.org
In 1998, Penn State and the CBICC once again partnered to offer a highly unique facility in the community — incubation space at the Zetachron Center for Business Development near Science Park Road. The facility offers 4,000 square feet of wet-lab space for material or science firms, office environment for early stage life science, biotechnology and chemistry firms and more than 5,000 square feet of office and mixed-use space. Known as The Zetachron Center, it was the community’s first wet-lab based incubation space for local start-up companies.
“CBICC’s Incubator program played a critical role in our development, freeing our team to focus its energy on helping school districts to build stronger school communities and helping Schoolwires to become a great international business.”
Technology Center at Innovation Park.
of which eight early-stage companies operate. With the increasing success of the incubator program and its lengthening list of successful graduates came an understanding that the facilities should be expanded and enhanced to match the market demand. In April 2003, the CBICC broke ground for a longawaited expansion of the Technology Center.
— Edward Marflak, founder, Schoolwires, Inc.
The Zetachron Center represented an additional $1.25 million investment into business incubation in the Centre region due to the facility gift by Wally and Robbie Snipes. Penn State continues to manage the facility, out
Bellefonte 205 Park Place 353-1770 State College 1961 S. Atherton St. 861-5500 State College 2610 Green Tech Dr. 861-4747
www.cbicc.org
fronttCentre
May 2014 | 11
The 22,000-square-foot, $3 million addition effectively doubled the amount of incubation space in the Centre region. The net result of the addition to the Technology Center produced a total of 25,000 square feet of office space and 1,000 square feet of additional laboratory space. The increased need for more lab space resulted from the successful start-up of companies such as Salimetrics, Chiral Quest, Mitotyping Technologies, and Indigo Biosciences at the Zetachron Center. In addition to the CBICC’s incubation space, the Technology Center is home to Ben Franklin Technology Partners, Penn State’s Office of Technology Management — which facilitates the capture and licensing of intellectual property — the regional Small Business Development Center and the Innovation Park Office. These groups fund and collaborate on the delivery of business development services through a structured program called the TechCelerator@ StateCollege. The TechCelerator provides assistance and training to entrepreneurs at the earliest stages of turning an idea into a potential business. Many graduates of the TechCelerator Boot Camp Program are now working out of the incubator space, as well as numerous locations throughout Centre County. Both the Technology Center and Zetachron Center are located in Keystone Innovation Zones. That means companies operating in the incubators and meeting program eligibility could be awarded up to $100,000 annually in tax credits through the KIZ Tax Credit Program. For Oleg Shinkahz, founder and CEO of Technology Center incubator company Chromatan Corporation, the KIZ tax credit offers a good economic incentive for locating there. “It is a significant amount of money saved that can be injected back into growing our business,” he said.
THE NEXT GENERATION OF SUCCESSFUL ENTREPRENEURS
Chromatan, which specializes in liquid chromatography, was incorporated in 2009 and moved into office and laboratory space at the Technology Center incubator in December 2011 after briefly being located at Zetachron. The company is one of 23 currently operating out of CBICC’s incubator. Shinkahz said while support, services and afford12 | May 2014
Zetachron Center near Science Park Road.
able space are valuable and tangible benefits of the program, he values the intangible advantages of the environment itself. “Being in an incubator environment can be very inspiring and result in unexpected and very productive collaborations,” he said. The Coolblue Lunch Buddy Program for incubator companies organized by the Innovation Park office gives tenants the opportunity to meet their neighbors for that very purpose. “After meeting the guys from Solid Dynamics, and being shown their 3D printing technology, we are taking the next step and seeking investment from our industry partners to create product prototypes and access the potential of actually manufacturing our single-use products using this technology,” Shinkahz said. Shinkahz said he is also excited about the prospects of collaborating with another incubator neighbor — Lasers for Innovative Solutions LLC.
BUSINESS INCUBATION Business incubation provides a broad range of services specifically tailored to entrepreneurs and their start-up companies. These services include: • business mentorship •access to financing and technical assistance •common support services, including mailing and office machines •access to financial and technical resources •an outstanding address now at Innovation Park •first-class space, including all utilities, at reasonable cost
fronttCentre
www.cbicc.org
Lasers for Innovative Solutions is developing a new scientific imaging method that allows researchers to study their subject in full 3D and color using a novel laser-based tomography technique developed at Penn State. Shinkahz is also quick to credit the amazing people at the Technology Center and Centre County. “When we moved here from Boston, we truly felt cared for and welcomed,” he said. “The CBICC, Ben Franklin Technology Partners and the Innovation Park office staff are responsible, responsive and helpful above and beyond their job descriptions. “Having come from a very strong start-up ecosphere back in Boston, I must say we love it here and are happy to have made the move.” Another incubator tenant, FairTech Labs, was founded by Lindsay Fairman, a graduate of the TechCelerator@StateCollege. Fairman was awarded $2,500 at the final presentation of the spring 2013 eight-week TechCelerator Boot Camp Program. FairTech Labs is developing an online solution for personalized household inventory management
For more than 30 years, the CBICC incubator program has had a positive impact in the Centre region. Dozens of companies have been started and hundreds of jobs have been created. and is moving toward the product promotion phase. “The incubator has provided an excellent lowrisk environment for setting up our first office space and bringing our team together,” Fairman said. “Additionally, having resources such as the CBICC, Ben Franklin and the Small Business Development Center just down the hall is instrumental in assisting us to quickly move forward with our business.” Ben Hall, founder of Lasers for Innovative Solutions, LLC, credits the CBICC incubator and Ben Franklin Technology Partners for supporting the company’s growth throughout the start-up phase and for continuing to provide robust support in the company’s journey through “an exciting new endeavor.”
Trusted.
YESTERDAY. TODAY. TOMORROW. HOME HEALTH CARE HOSPICE CARE PRIVATE DUTY HOME CARE CHILDREN’S SPECIALTY SERVICES COMMUNITY WELLNESS SERVICES
Ask for us by name. Home Nursing Agency
1.800.445.6262
www.homenursingagency.com
814.237.1404 www.cbicc.org
●
450 Windmere Drive, Suite 100, State College
fronttCentre
May 2014 | 13
Titan Energy Park redevelopment effort focusing on high-tech industries 3D printing, nanotechnology and aquaculture companies would find good home at former Cerro facility Titan Energy Park was one of several Centre County stops on the Corbett administration’s JOBS1st On the Road tour through central Pennsylvania in early April (See related article on the tour on page 28). Joe Leahey, part of the partnership group Navitus, LLC that purchased the former Bolton, Cerro and Titan metals complex in Spring Township, welcomed Department of Community and Economic Development Secretary Alan Walker, state Sen. Jake Corman, R-34, and state Rep. Kerry Benninghoff, R-171, to the facility on Axemann Road, where he showcased the complex’s redevelopment potential. “Titan welcomes support from legislators to bring opportunity to the region,” Leahey said of the visit.
KOZ DESIGNATION AN ASSET TO REDEVELOPMENT
The Navitus partnership group purchased the facility in February 2012 in hopes of revitalizing the heavy duty fabrication and general purpose manufacturing facility to its former glory. That effort got a boost with its recent Keystone Opportunity Expansion Zone designation, which Leahey calls an asset in the effort to attract new industries to the more than 500,000-square-foot complex. Secretary Walker re-affirmed the importance of the KOEZ status, saying it is another positive step
A Locally Owned and Operated, Providing Print/Copy Solutions for Offices in the Centre Region for over 30 years 3 Free Cost Analysis 3 Same Day Service 3 3 Locations to Serve All of Your Branch Offices 3 Knowledgeable technicians 3 Exceptional Support after the Sale
14 | May 2014
Ja Nae Wian Account Rep
jwian@ptd.net 570-275-4900
forward to attract new growth and good-paying jobs to the Titan Energy Park and to Centre County. “Governor Corbett continues a commitment to work with local partners to bring new jobs and investment to Pennsylvania’s communities,” Walker said. “The KOZ program embodies that partnership and has spurred the creation of nearly 40,000 jobs since the program inception, and as zones expire, new tax revenues are generated for the state and local governments.” Leahey credits CBICC Economic Team Specialist Mary Resides with helping him through the process of obtaining KOEZ status. “Mary knew the intricacies of how the process would work,” he said, noting that after the initial state review, the application was kicked back at the eleventh hour. “Mary’s technical expertise helped. We changed some wording and provided some additional information and it went through.” The CBICC, as a DCED PREP Partner and working closely with the Governor’s Action Team, continues to assist efforts to bring new manufacturing, local business expansions and other related opportunities to Titan’s revitalization. Leahey said industries well suited for the site include 3D printing, nanotechnology, natural gas development and aquaculture because of the high volume of quality water onsite. In fact, three natural springs sit on the grounds and are Susquehanna River Basin Commission-approved for 1 million gallons a day. While the complex can easily handle a large manufacturing facility — and an anchor tenant would be ideal — Titan is also well suited for numerous co-vendors that could co-occupy segregated spaces. “The main building is perfect for businesses looking for smaller pockets of space,” Leahey said. “The prior company had numerous niche, secret spaces in all areas here for a variety of manufacturing processes. These spaces add flexibility to what can be offered to new tenants interested in potentially locating in Titan Energy Park.”
fronttCentre
www.cbicc.org
Plant 1 at Titan Energy Park.
Plant 4 at Titan Energy Park.
Office space at Titan Energy Park.
The “for lease” sign invites new manufacturing opportunities.
Write Your Own Home Equity Loan To apply, call 1-800-837-BANK or visit AmeriServ.com
www.cbicc.org
fronttCentre
May 2014 | 15
DCED Secretary Alan Walker and Centre County state lawmakers learn of ongoing efforts to bring new economic opportunities to Titan Energy Park.
Million dollar investment in cleanup readies Titan site for redevelopment Before developers could begin finding new tenants for Titan Energy Park, they had to first address what was left behind by the former owners. While all of the underground contamination remained the responsibility of the Marmon Group, which owned Cerro, removing other remnants of the facility’s once hazardous footprint took a full year and required an investment of more than $1 million by the Navitus group. “We were aware that materials were left behind. We cleared all asbestos and removed all of the above-ground storage tanks, working with environmental consultants Chambers Environmental Group,” Leahey said, noting that some of the harder to clean process equipment still remains on site. In addition, transformers in the electrical systems contained PCBs that had to be removed, drained and disposed of. Preparing the site also meant cleaning and filling in numerous trenches and depressed and open pits resulting from Cerro’s hard presses and hydraulics, some as large as 80 feet by 80 feet, and 40-feet deep. General repairs and housekeeping comprised the remainder of cleanup efforts, as well as dealing with minor damage caused by vandals attempting to steal copper wire at the now securely monitored complex. Working with the state through Act 2 — The Land Recycling and Environmental Remediation Standards Act — Leahey said the facility is cleaned to an acceptable level. “The hillside is still in the monitoring phase, but the site is cleaned to federal and state standards.” 16 | May 2014
Employers that participate in PEP! would have to hire a minimum number of new employees, ranging from five to 15, depending on the county in which the company is relocating. The number of years the employer would be eligible for the tax incentive would be determined based on the wages it pays its employees in comparison to the average wage paid to workers in the county in which the new jobs are located. The DCED will be responsible for verifying the eligibility of participating companies, as well as for collecting information about the number of new jobs created through PEP! and the gross wages being paid to each new employee. Newly relocating employers would still pay a number of other taxes — Corporate Net Income or Personal Income Tax, depending on filing status; local school district and municipal property taxes; state Sales and Use taxes, to name a few. The benefit to the Commonwealth’s budget is additional tax revenue, meaning the tax incentive comes at no “cost” to the state.
Commercial Mortgages Accounts Receivable Financing Railcar and Transportation Financing Equipment Leasing Sale-Leasebacks Our leasing rates are know to be THE BEST in the industry! • Rail Tankers (for all uses) • Stainless Steel Water Tanks • Frac-Water Tanks • Crude Oil Transfer • ISO Tanks • Sanitation Tanks Pumps • Carbon Steel Tanks • Mud Pumps a division of
fronttCentre
Contact us for an initial consultation at no charge. Sam Mannino Managing Partner SM@investors•rstcap.com 814-692-4100 www.investors•rstcap.com IFC2@COMCAST.NET NTV.SM-ENT.COM Call Sam Mannino today at
814-692-5277 Financing American businesses since 1981
www.cbicc.org
Economic Development Perspective TITAN DEVELOPER APPLAUDS CBICC EFFORTS ON ‘PROMOTING EMPLOYMENT ACROSS PENNSYLVANIA’ ACT Joe Leahey welcomes Titan Energy Park’s KOEZ designation. However, overall, he believes Pennsylvania is behind other states in terms of incentives that help attract new businesses and that “sweeten the pot” for potential investors in the increasingly competitive business recruitment process. “The state needs a better strategy,” he said. “The simpler, the better.”
“PEP is another creative incentive tool available to attract new business opportunities to Centre County and the Commonwealth, as well as generate new revenue for state coffers.”
— CBICC President and CEO Vern Squier
As an example, Leahey cited a yet-to-be-promulgated state law that was drafted by state Rep. Kerry Benninghoff, R-Centre/Mifflin, working with the CBICC. “This would be just as good as some of the other incentives offered by the state,” Leahey believes.
Act 206 of 2012 (H.B. 2626) created the Promoting Employment across Pennsylvania program, or PEP!, which, once implemented, will provide withholding tax relief to qualified out-of-state companies that relocate to the Commonwealth. The law is modeled after a successful program already established in Kansas. The state Department of Community and Economic Development is now in the process of promulgating the rules to officially implement the law. Qualified companies that meet minimum employee hire numbers and wage requirements will be able to keep 95 percent of the state Personal Income Tax withholding they would otherwise remit to the state — enabling that money to be used to create goodpaying jobs. The remaining 5 percent would be new PIT revenue for the Commonwealth. “The PEP! Initiative is all about job creation,” Benninghoff said. “We want to attract new employers to the Commonwealth while also providing incentives for existing employers to stay and grow here in Pennsylvania. The commonsense approach behind PEP! is that workers, job creators and taxpayers all benefit from a growing economy.”
u Land development and environmental design services u Land surveying u Construction management
Visit us at www.pennterra.com 3075 Enterprise Drive, Suite 100, State College, PA 16801 Phone: (814) 231-8285 Fax: (814) 237-2380 3904 Avel Drive, Columbia, PA 17512 Phone: (717) 522-5031 Fax: (717) 522-5046 www.cbicc.org
fronttCentre
May 2014 | 17
G AZETTE We Cover What’s THE CENTRE COUNTY
Important To You!
Gaz ette The CenT
re Cou
nTy
May 1-7, 2014
Volume 6, Issue
18
FREE CO PY
THE INTO D HTS LS AN A SIG C IN IVIDU RE CBICES, IND THAT A ISSU IVITIES T AC
Franklin named in court papers
Sum
mer fun! It’s that tim e of year. will close So their doors on, area schools be home once again and the kids will . What to Gazette’s do? The guide to Kids and covers all Summer the bases — from camps to summer amusem ent parks ./Pages 20-23
014
G ISIN OF T VERT AD LEMEN SUPP
y2
Ma
ntre t Ce fron
www.Ce ntreCoun tyGazette .com
By BEN JON
The nTy
Pleasan tG D.A.R.E ap program . one in c last ounty
Cou
e ett
HIGH RO
LLER
Tre
Cen
Y UNT MIC NO E CO ECO NTR ING IN CE DRIV WTH O GR
Nittany holds O Valley Little L pening D e ay ceremague onies
Gaz
StateColleg ES e.com
UNIVE PLAY BA pers file RSITY PARK LL: Partici lege tha d Tuesday in — Court papan and Little Te t League pla ts in the newly form rape vic James Franklin nnessee alyers and ed Nittany tim just coaches Valley she was days aft contacted a were intr er sex po ua oduced as Little League gather lice lly Vanderb part of the ed to mark ilt footba assaulted by sev said festivities ll pla the start eral Lawyers . of the sea for one yers. Brandon son April of the TIM WEIGH Vanden 26. Tee bal pla victim l and softba T/For the Gazette was con burg , that sayyers, and Dw ll were pla tacted the igh by yed, t Fra Ga examina lt durin nklin to explaintion four days g a medical aft because “that they car er the rape cruiting,”she assisted ed about her By CHRIS the m acc MOREL with reording ated Pre editor@cen to The ss. trecountyga LI Associzette.com Marion BELLEF Wa ONTE — ing, pla teams are lker have joi Ga lt On a yer ned for under on wa s baseball s and coache chilly spring mo the dir ces. All Accor e um ector of rnthose cast ove field. As their s trotted out perfo presiden ding to Nittan brella now. There’s to the r r na the lou y tee ball, places enhan m a n c e dspeak mes were bro the leagut Skip Reichert Valley Little Lea League. softball on the ers cemen ad es , gu and, of the made pe , the consol outfield was dawn at Va course, idation e rfect sen The da grass. A y took their nd erb ilt.t ing Little rig of se. ht INS Franklin new sea It was befor IDE teams we y went off wit son is now re hout a Little Lea the Opening Dae their eyes. he ad For an hitch. Th d player introduced, more pho gu y for Nit photos s recite tos from coach foo tba ll tany Va Make noe. were tak e d Pa Aft Ope the Lit at Penn ge 29. lley er the tea ning Day, ferent tha mistake ab State. Ga ms took tle League ple en pair of see ou lt n t spe wo an it, the dg y other rks year for this wa e. in a sim eral ma cial guests. Jas field, there “Consol s season. was a na Little Lea the newly for It’s the difpacity ilar caa few mo idating the spoke to ger of the Sta on Dambach JAMES FR med Nit firs tw , gen the player te Colleg tle Leagu gue, formerly ANKLIN State. at Penn tany Va t Reichert re opportunit o leagues cre Damb s first. e Spike Ma e. Team lley s, s from rion Walker hanced said. “But what ies for some ated Th e League ach talked ab Litkid Pleasant the at som it really an also say rep ort e Gap an did is it s,” big leagu d the dream out playing Nittany softball progra s that woman point Frank d s en Lit m es. Va of tle treme lley Lit making thing for lin called in for a “Rem it to the “told he private every age tle League off ndously.” the r they’re ember that all ers som group, ty girls he wanted her meeting and between of our every gen etog to the age players assist wit ether and for get 15 pretder. s of 20 — Little Lea and 24 he knew h the recruitin m a team to gue, Pag — g eve e5 it wa Penn Sta s against the n though rules.” te releas from Fra ed tions tha nklin that said: a statement simply t I did someth “The allegano ing wron fully wit t true. I ha ve coope g are h ter but, the authoriti rated es process, out of respect in this matany furtheI am not able for the legal to com r.” ment Four were all former Vand erb charged last Jun with agg ilt players e. male stu Police said a ravated rape 21room. dent was assau year-old felted in a dorm Those By CHRIS allegatio known MOREL editor@cen ns be trecountyga LI Penn Sta fore Franklin were widely zette.com te’s wa PLEASA “There’s new head foo s hired as NT GA tball coa is to be been Coach lieve, the P — As hard ch. Franklin allegations dru as it on g District ce-popu ab pro ,” Attorney Nashville De out lar an tinct in gram D.A.R.E. this pa pu To Ce is ty m Th ntr all but tist Novem Funding e County. exed to ber. ”W urman said sta across cut for evidenc te clearly tha e just wantprograms the state ha e whats t s is the be like D.A short re’s no en Franklin oever wh Educatio for Drug Abuse R.E., which ere Co the cov was involved ach er-up or in alive an n. However, the Resistance has do any way in d ne anyth mentary well at Pleasa program is Franklin, ing Page 4 school School and on nt Gap Elecel ing class. ebrated this yeaApril 25, the BIG BUCK Opinion S: Gap en The fifth grade r’s graduatowned the A rare 1969 Shelby joy Health ......................... vehicle, wh with cer ed a cerem rs at Pleasant Mustang & Welln on tificates, wa ess ......... ... 7 Educa ich s auction fetched a shirts. tion pins an y complete 8, 9 Co ed off in Cen whopping d D.A.R. mmunity.................. 10, SAM tre $280,000. E. TThe Sp 11 Kid ............... See story, Hall last week. The STITZER/For the Gaz s and partmen ring Townshi 13-18 ette Page 13. late Larry Sports .....Summer ..... Brown which takt helps fund p Police De20-23 ............... the pro es place Arts & En ..... 24-29 gram, during the What’s tertainment fall. D.A.R.E., 30, Happen Page 6 ing .... 32, 31 Group Meeti Includin 33 Pu zzles ..... ngs ............. g Instal 34 Bu ............... siness lation ........ 35 and Lo Classifie ..................... 36, d .......... w E Ar ......... 38, 37 go 39
Inserted in The Gazette in May, September & December CBICC INSIGHTS INTO THE ISSUES, INDIVIDUALS AND ACTIVITIES THAT ARE
Gazette The CenTre CounTy
ADVERTISING SUPPLEMENT OF
front Centre
Look for the print version of the CBICC’s
199 WIND
$
OWS IN SULATE n Gas
“Still Serv ing PA Since Central 1963” - Ronald W. Johns
Energy
on
Contrac
tor Re gistratio
n #002 04
7
D DOORS publication!
Star Ra
ted & M
ainten
ance Fr
www.ron
Spring M
aldwjohn
ee
ills, PA •
814.3
May 2014
DRIVING ECONOMIC GROWTH IN CENTRE COUNTY
son.com
FREE ESTI
The Centre County Gazette is published weekly on Thursdays and is available at over 400 retail locations throughout Centre County. 64.14 MATES! 36
Pick up your FREE copy where you do your shopping! 18 | May 2014
fronttCentre
www.cbicc.org
Introducing … CBICC’s Gateway Group: carving a niche for young professionals A critical component of the CBICC’s mission to strengthen Centre County’s private sector economy for the long-term is the need to retain and attract talented young people — the next generation of entrepreneurs and business leaders, and the highly skilled workforce desired by employers now and in the future. Cultivating young professionals is the reason why the CBICC is supportive of innovative initiatives such as the New Leaf co-space facility. It was the impetus for the creation of CBICC’s own Gateway Group. The Gateway Group’s mission is to establish connections among young professionals, community members and organizations in Centre County, and prepare its members to be effective community
Gateway Group members Zack Sheffield and Ellisse Johnston, both of Impressions.
Gateway Group members Meagan Tuttle, Borough of State College; Allie Goldstein, Penn State University; and Phil Salone, Best Western PLUS.
www.cbicc.org
leaders that are motivated to participate in regional commerce and that can enact positive community change. Through regular meetings, the Gateway Group will focus on how the CBICC can better serve the county’s young professionals. “The goal of the Gateway Group isn’t for the chamber to provide guidance to members, it is for these motivated men and women to identify for us what young people need from the business community, what issues are important to them, and what will make Centre County a place where students graduating from Penn State will want to stay to start businesses or their careers,” CBICC President and CEO Vern Squier said.
fronttCentre
May 2014 | 19
Serena Fulton, New Leaf Initiative co-director and one of seven founding Gateway Group members, said rarely do students think of Centre County as a place to call home after graduation. “This area has been traditionally marketed to them as Penn State, the university, rather than the community of Centre County. As a result, talented graduates leave town as soon as their cap and gown come off without ever considering staying.” Fulton said cultivating young talent is a professional, cultural, housing and social problem.
“Our focus is to retain and recruit young professionals to the area. As an educated and mobile group, the options of where to live and work are virtually limitless; our goal is to make living here a top choice.”
— Irene Miller, development and events coordinator, Centre Foundation and member of CBICC’s young professionals Gateway Group
“The Gateway Group will help to fill that gap by giving a united voice to current and potential young professionals in the area so that opportunities, resources and requests can be effectively communicated,” Fulton said. “I am looking forward to my involvement with this group and already feel motivated by the energy that is building within this initiative.” Centre County Commissioner and Gateway Group member Michael Pipe said the CBICC is a powerful tool in Centre County, and carving out a niche for young professionals in the organization is a task that the Gateway Group relishes. “We hope to bring out young professionals whose employers may be Chamber members, but they
themselves aren’t familiar with the many opportunities the Chamber offers,” he said, stressing that the Gateway Group wants to work with other groups in Centre County that bring together young professionals. The CBICC Gateway Group is currently moving forward with a number of initiatives, including identifying community leaders willing to act as professional mentors to members of the group on an informal basis; creating a community asset map to help identify resources and characteristics of Centre County that can make it attractive to young professional to live and work; creating a local job fair aimed at young professionals (non-students) in Centre County who are looking to work in the area; engaging with other groups and organizations that need a young professionals perspective; and furthering related initiatives that create a supportive culture for young professionals. If you are interested in joining the CBICC’s Gateway Group, contact Andrea Harman at aharman@ CBICC.org.
join today - cbicc.org
20 | May 2014
fronttCentre
www.cbicc.org
2014-15 Official Guide
2014-2015
Centre County 2014 Official Guide
Penn State Town&Gown’s
Town&Gown’s Guide to Centre County
NEIGHBORHOODS
THE OFFICIAL RELOCATION GUIDE OF THE CENTRE COUNTY ASSOCIATION OF REALTORS®
2013 Football Annual
Catching Fire Nittany Lion receiver Allen Robinson looks to put more heat on opposing defenses after last year’s record-setting breakout season
Neighborhood Maps of: Bald Eagle Area • Greater Bellefonte Area Borough of Bellefonte • Borough of State College College Township • Ferguson Township Halfmoon Township • Harris Township Patton Township • Penns Valley Area Philipsburg-Osceola Area • Office & Industrial Parks
REGIONAL INFORMATION - TAXES - RETIREMENT COMMUNITIES - SCHOOL DISTRICTS - PARKS & RECREATION - EVENTS
Penn State Town&Gown’s
Inside: Children’s Advocacy Center prepares to open • “12 Months of Giving” series begins
JANUARY 2014
$8.95
Town&Gown’s Official Program Guide
FREE
2013-14 Winter Sports Annual
More to
Maggie While Maggie Lucas has one more season to rewrite the Lady Lions’ history books, the star guard continues to show that she isn’t just about basketball
townandgown.com Hockey: Enters new home Men’s Basketball: Frazier, Newbill ready to team up Wrestling: Taylor, Ruth lead quest for a four-peat
Opening
Movements
Nittany Valley Symphony ’s Ann Keller Young Soloist Competition has helped launch many musical careers, and this season’s winner, Juliette Greer, hopes to be the latest
$8.95
IF IT’S HAPPENING IN HAPPY VALLEY, IT’S IN TOWN&GOWN
Children & Youth Day, Wednesday, July 10 • Sidewalk Sale & Exhibition, July 11-14
Breast Cancer Battle:
In the
Pink Zone 2014
5/4
Central Pennsylvania Dance
5/15
Iris Dement
A Special Supplement to Town&Gown
From editorial to design, Barash Media can meet your needs.
6/188/20
Read it, Watch It Summer Series
Call (814) 238-5051 for information on how we can help you.
www.cbicc.org
fronttCentre
May 2014 | 21
Positioned for growth: INDIGO Biosciences and Actuated Medical Smaller research-oriented companies are making their mark on local economy Centre County benefits from world-class research and technological advancements coming out of Penn State University, combined with a strong support network for high-tech business startups. From this solid template for economic growth, smaller, science and research-focused companies are making their mark and transforming the local economy. Two of many such promising companies, CBICC members INDIGO Biosciences and Actuated Medical, are positioned for greater growth in Centre County thanks to the success of innovative products and services that are being introduced to the world marketplace. The assistance that the CBICC provided to both of these businesses at key points in their operations is an example of the many ways in which the chamber and its members are committed to creating a healthier private sector.
INDIGO BIOSCIENCES: A TIMELINE OF STEADY GROWTH
Founded by Dr. Jack Vanden Heuvel and Dr. Blake Peterson in 2005, INDIGO Biosciences got its start in the CBICC’s business incubator at Technology Park as a contract research company. INDIGO’s testing and screening technology determines how various compounds affect the receptors 22 | May 2014
Indigo Assay Kit.
inside a cell’s nucleus. Its innovative products and services are designed to improve the speed, cost and risk of the drug discovery process, helping clients validate products and identify potential product side effects. Aided by the development of a proprietary cell preservation process, the company’s traditional mission changed in 2008. As a result, INDIGO needed more space and moved to its current location in the Zetachron facility near Science Park Road in 2009. In 2011, funding from the Centre County Industrial Development Corporation’s (CBICC’s economic development arm) Revolving Loan Fund, combined with local bank financing, provided necessary working capital for the expansion of the company’s sales and marketing activities; introduction of a new product; building of in-house service capacity; and establishment of robotic liquid handling capabilities, which has enhanced INDIGO’s ability to satisfy its client’s increasing demands. With a new CEO hired in late 2013 to move the
fronttCentre
www.cbicc.org
company from the startup phase to a profitable business, INDIGO is positioned for even greater success. Fred Marroni, a former executive-in-residence at Pittsburgh Life Sciences Greenhouse, is securing new distribution channels for INDIGO’s products and services, and the company is beginning to realize success in the biotechnology, food, agriculture and nutriceutical industries, as well as in the pharmaceutical field. Marroni said support for INDIGO over the years has come in a variety of ways and from a number of organizations, including the CBICC, CCIDC and Ben Franklin Technology Partners to name a few. “We are growing nicely,” he said. “We are working toward profitability and expect to achieve that goal this year.” Marroni said growth has been aided by increased opportunities on the service side as many large pharmaceutical companies have downsized in-house experts, and a new distribution agreement to boost world-wide sales. INDIGO currently has 12 employees, and plans to hire three more people by year’s end. “We have a love for science, that’s what we do here,” Marroni said. “We want to stay and grow in State College because of the access to faculty, talent and capital.”
ACTUATED MEDICAL: FIVE PATENTS AND MORE TO COME
Bellefonte-based Actuated Medical, Inc. has been turning innovation into commercial success since its founding in 2006 by CEO Maureen L. Mulvihill and R&D Director Roger Bagwell. Located in the Penn Eagle Industrial Park, which is a Keystone Innovation Zone, Actuated Medical is a medical device company that focuses on stateof-the-art, minimally invasive instruments for clearing occlusions, penetrating tissue and enabling the emerging MRI-guided surgical procedure industry. AMI is ISO certified enabling manufacturing in Bellefonte. The company recently announced that its in-patient tube clearing system for feeding and decompression tubes — TubeClear® — will be distributed worldwide exclusively by Buffalo Grove, IL-based CORPAK MedSystems, Inc. Approved by the FDA in 2012, www.cbicc.org
Gentle Sharp provides for more humane blood sampling.
TubeClear’s patented technology uses a mechanical motion that allows clinicians to quickly clear clogs in tubes without the expense and risk of tube replacement. With TubeClear®, a process that normally takes health-care professionals anywhere from 20 minutes to hours takes on average under three minutes, dramatically improving patient care in the process. Nurse Marcia Belcher, MSN, BBA, RN, CCRN, CCNS, has been evaluating Tube Clear® for several months. “This is one of the best devices to come out in a long time to allow clinical care nurses to do what they do best…care for their patients,” she said. Mulvihill said responses from other nurses who have used TubeClear® has been very positive. In fact, input from health-care professionals is an important factor in Actuated Medical’s success. The company has a medical advisory board and consults with health-care professionals in developing its products based on real-world needs. A client of the CBICC’s/CCIDC’s Revolving Loan Fund and CBICC’s 2007 Outstanding Technology Company, Actuated Medical also developed a second innovative product — Gentle Sharp — for low-force insertion of lancets and needles for more humane blood sampling that is also being sold worldwide. With five current patents and more pending, Actuated Medical is an example of how innovative research can lead to commercial successes that are helping to improve patient care, which has always been Mulvihill’s goal as an entrepreneur. Creating commercial successes also creates challenges, albeit welcome ones. Now with 26 employees, the company has outgrown its current facility and is looking for a new building to allow for future growth in Centre County. “Centre County is the perfect location for Actu-
fronttCentre
May 2014 | 23
ated Medical,” Mulvihill said. “There is a diverse cadre of engineering talent, as well as outstanding facilities. Plus, it allows for easy access to clinicians and researchers from Hershey Medical Center, University of Pittsburgh Medical Center, Cleveland Clinic, Johns Hopkins, Children’s Hospital of Philadelphia and George Washington University. “I couldn’t imagine working or living anywhere else.”
24 | May 2014
“Centre County is the perfect location for Actuated Medical. There is a diverse cadre of engineering talent, as well as outstanding facilities. ... I couldn’t imagine working or living anywhere else.” — Maureen Mulvihill, CEO, Actuated Medical Inc.
fronttCentre
www.cbicc.org
Bringing balance to Centre County’s economy Centre County’s changing economy has seen the loss of major private sector employers on one end of the spectrum and the great growth of Penn State University and its research and development arm at the other end. On the surface, the latter has in many ways disguised the impact of the former. A closer look, however, reveals an economy out of balance. In fact, private industry has gone from making up about 28 percent of the local economy in 1998 to roughly 7 percent today. A diverse, balanced economy is a healthier economy, particularly looking long-term. That is where the CBICC’s 3B33 initiative comes into play. 3B33 represents a comprehensive commitment to strengthen private industry in Centre County; it’s a revenue target of $3 billion in economic output being generated annually by private industry by 2033. To achieve the 3B33 goal, the chamber’s program of work is focused on three primary strategies: recruiting new businesses to the county, enabling existing businesses to better compete and grow, and creating an even stronger support environment for entrepreneurship. “It is a bold goal, but it is an www.cbicc.org
“It was an easy decision for First National Bank to support the 3B33 initiative. Over the last few years, we have unfortunately seen the exodus of a number of companies, which provided numerous well-paying jobs. We see 3B33 being the engine that will reverse that trend and help grow this region for the next 20 years.” — William Joseph, Senior Vice President, Regional Manager, Commercial Banking, First National Bank
achievable goal,” CBICC president and CEO Vern Squier said. “Penn State University provides a ready-made template for growth. At the same time, we have individuals making decisions to invest in the county, to invest in redevelopment efforts. By successfully building on the strengths we already have, we can create a more desirable public/private sector balance.” The CBICC is carrying out this proven model of economic development by capitalizing on successful existing programs;
fronttCentre
implementing new initiatives designed to tap the energy and expertise of CBICC’s membership; and continuing beneficial collaborations with elected officials, community leaders and other valuable economic development partners. “3B33 is a long-term commitment; we are not going to get there overnight,” Squier said. “But people are motivated — our membership, the community, 3B33 support partners — there is momentum and a desire to work collectively to move the needle.” May 2014 | 25
FOSTERING ENTREPRENEURSHIP A KEY COMPONENT OF 3B33
One such energized individual is Videon President and CEO Todd Erdley, chairman of the CBICC’s Entrepreneurship Committee, which developed 3B33, and a fixture in the region’s entrepreneurial community. Erdley said a noticeable difference between what has been occurring with entrepreneurship in Centre County and the effort now is, as Squier alluded, more people are aware and want to help. “Individuals that have no background in entrepreneurship are interested in what is taking place,” he said. “The willingness to give of their time is an asset valued by the CBICC and the committee. We want to develop a plan so that more people can get involved and we can begin to move forward.”
Erdley believes that over five years, the entrepreneurship field can generate more than $1 billion in economic output alone — a sizeable portion of the 3B33 pie. To get there will require greater communication about what entrepreneurship means. “The idea of entrepreneurship can be difficult to understand; it’s a broad concept,” Erdley said. To many, entrepreneurship invokes thoughts of a small business that employs a few people and provides goods and services — a vital part of any community and a fairly low-risk business venture. Overlooked at time are the growth entrepreneurs. They are large companies playing on the worldwide stage — scalable business ventures organized to achieve profit.
The recent CBICC and Centre Region Entrepreneurial Network mixer at Videon’s headquarters is an example of the collective dialogue taking place about improving the county’s private sector economy by fostering entrepreneurship.
26 | May 2014
fronttCentre
www.cbicc.org
Cen
They are cutting edge and high risk, and require Centre Region 2033: TheVision $3Billion Dollar Vision Centre Region 2033: The $3Billion Dollar more capital, but can lead to significant job creation if successful. “That’s when it gets exciting,” Erdley said. With 3B33 as the catalyst, the CBICC’s Entrepreneurship Committee is preparing to roll out of a strat- 1998 Employer Data 2012 Employer Data egy to enhance Centre County’s entrepreneurial 1998 Employer Data 2012 Employer Data ecosystem and fostering greater dialogue about the needs of entrepreneurs generally, as well as the specific needs of growth entrepreneurs.
We Are…Imbalanced We Are…Imb We Are…Imbalanced 1998 Employer Data
Private Industry has significantly decreased. Data from CDT “Business Matters” January 1999 & February 2013
Centre Region 2033: The $3Billion Dollar Vision Private Industry has significantly decreased.
We Are…Imbalanced
Data from CDT “Business Matters” January 1999 & February 2013
Private Industry has signific
1998 Employer Data
CBICC President Vern Squier, Videon CEO Todd Erdley and New Leaf co-directors Serena Fulton and Eric Saunder discuss economic development and entrepreneurship with Leadership Centre County.
2012 Employer Data
Data from CDT “Business Matters” January 1999 & FebruaryCentre 2013 Region 2033: The $3
We Are…Imbalanced
Centre Region 2033: The $3Billion Dollar Vision
We Are…Imbalanced 1998 Employer Data 2012 Employe 1998 Employer Data
2012 Employer Data
Centre Region 2033: The $3Billion Dollar Vision
We Are…Imbalanced 1998 Employer Data
2012 Employer Data
Eric Sauder’s and Serena Fulton’s New Leaf co-space Private Industry has significantly facility is an example of communitywide efforts to foster Private Industry has decreased. decreased. Private Industry hassignificantly significantly decreased. collaboration and innovation. The CBICC was pleased to Data from CDT “Business Matters” January 1999 & February 2013 DataMatters” from CDTJanuary “Business January assist New Leaf with grant/loan funding for its new facility Data from CDT “Business 1999Matters” & February 2013 1999 & February 2013 in the State College municipal building.
Private Industry has significantly decreased.
Data from CDT “Business Matters” January 1999 & February 2013
www.cbicc.org
fronttCentre
May 2014 | 27
Centre County businesses ‘front and center’ on ‘JOBS1st On the Road’ tour Centre County and several CBICC member companies were in the spotlight on April 9-11, as state Department of Community and Economic Development Secretary Alan Walker, Labor and Industry Secretary Julie Hearthway and nearly 30 DCED and L&I representatives conducted a “JOBS1st On the Road” tour through central Pennsylvania. The Corbett administration developed “JOBS1st On the Road” to strengthen the relationships with the Commonwealth’s regional partners. The CCIDC, CBICC’s economic development arm, is a state PREP partner through SEDA-COG.
“It’s always great to be able to see firsthand the successful businesses and dedicated workers that define Pennsylvania,” Walker said. “Coming directly to our local partners helps us determine how we can provide targeted support to better meet specific needs of the region.” The three-day visit took the DCED team to Centre and nine other counties: Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Snyder and Union, traveling throughout central Pennsylvania to discuss the administration’s plans for economic growth, job creation and community development. “As a PREP partner, we work closely with the DCED on almost a daily basis on a variety of economic development related projects, initiatives and requests,” CBICC President and CEO Vern Squier said. “The tour was an opportunity for officials in Harrisburg to see for themselves the innovation, research and resulting business successes that are occurring in Centre County, and how they can be the impetus for new economic activity.” Squier said the chamber welcomed DCED’s interest in touring the region and learning more about the benefits of doing business in this part of the state. “I know our member companies appreciated the unique opportunity to showcase their opera28 | May 2014
Videon CEO Todd Erdley shares his company’s story with DCED officers.
tions and discuss their needs and future plans withthe state’s top economic development officials,” he added. “As a chamber, we are working to move the local economy forward. The state is a valuable partner in that effort.” Some of Centre County’s established and upand-coming companies on DCED’s tour list included Videon, Restek, Cleveland Brothers Equipment Company, Inc., Novasentis, KCF Technologies, Central PA Institute of Science and Technology (CPI) and AccuWeather. Todd Erdley, president of Ferguson Townshipbased Videon, welcomed the opportunity to introduce state officials to his company. “It was a great chance to provide DCED background about Videon, our deep history in the technical space of consumer electronics, and to bring people up to speed regarding Videon’s current success with our Avia technology,” Erdley said. “We were also able to talk about the future of Videon as we build on our Avia technology to address growing market segments like automotive electronics.” The visit, which was led by Wilfred Muskens, deputy secretary of DCED’s Office of International Business Development, also gave the chairman of the
fronttCentre
www.cbicc.org
CBICC’s Entrepreneurship Committee a chance to discuss the CBICC’s 3B33 initiative. 3B33 is a longterm private industry revenue target of $3 billion in economic output being generated annually by 2033. “We had a very meaningful discussion on the 3B33 activities being undertaken here in Centre County,” Erdley said. “Bringing DCED up to speed on this grassroots effort and understanding their willingness and interest to support 3B33 was exciting.” At Cleveland Brothers Equipment Company in Bellefonte, Muskens joined Secretary Walker for a tour that highlighted the company’s Used Parts Department, which offers lower cost alternatives for repairing heavy equipment. The Bellefonte Cleveland Brothers location warehouses and sells used parts while its State College location tears down the equipment and checks the parts for reusability.
“We were impressed by the phenomenal support infrastructure afforded by Innovation Park, which clearly demonstrates the community’s investment in the Pennsylvania entrepreneurial spirit, as well as its commitment to developing a high-tech manufacturing ecosystem.”
— Carolyn Newhouse, DCED Deputy Secretary for Innovation and Investment
“It is a very entrepreneurial business,” said Matt Washic, Cleveland Brothers Corporate Used Parts Manager. “It was nice to highlight our work and be recognized for our efforts.” Secretary Walker said he was able to see firsthand the implementation of innovation and a team of skilled local workers that are driving Cleveland Brothers forward as an industry leader. “Living my entire life in neighboring Clearfield County, it was with great pride to have my team at DCED and Secretary Julia Hearthway’s team at Labor and Industry visit so many great companies and initiatives in Centre County,” he said. DCED Deputy Secretary for Innovation and Investment Carolyn Newhouse said the tour provided an invaluable chance to experience Centre County’s “remarkable assets” and economic development www.cbicc.org
DCED Secretary Alan Walker tours Cleveland Brothers Bellefonte location.
successes and opportunities. “We were impressed by the phenomenal support infrastructure afforded by Innovation Park, which clearly demonstrates the community’s investment in the Pennsylvania entrepreneurial spirit, as well as its commitment to developing a high-tech manufacturing ecosystem,” she said.
Rehabilitation after your illness, injury, or surgery.
Better Outcomes. Quality Care.
fronttCentre
Pleasant Gap • 814 359-5630 Lewistown • 717 242-5400 Mifflintown • 717 436-8233 NittanyValleyRehab.com ©2014:HealthSouth Corporation:636926-15
May 2014 | 29
The Innovation Park stop included a look at Penn State University’s CIMP-3D research facility and a meeting with officials at CBICC incubator company Novasentis, which is commercializing novel Penn State polymer technology in applications such as electronics, automotive and healthcare. For Novasentis officials, the visit encabled DCED representatives to see the products created by a cutting-edge start-up company in central Pennsylvania.
“The successful commercialization of Penn State technology and research holds tremendous economic potential for the region. For this reason, enhancing an already strong support system for entrepreneurs in this arena is high on the CBICC’s priority list.”
— Vern Squier, CBICC President and CEO
Christophe Ramstein, president and CEO of Novasentis, provided an overview of the company and its haptics technology, along with a tour of the research and development facilities at Innovation Park. “We are grateful for all of the services and support provided to Novasentis by DCED and Pennsylvania via the economic development organizations in the region,” he said.
WHY NOT CAMP?
Family and friends around the campfire, starry nights, fun play in the new splash park and pool, and lots of summer activities.
Central Pennsylvania’s Finest Full Service BELLEFONTE Campground. STATE COLLEGE www.bellefontekoa.com • Cabins & Lodges Available 15 miles from State College and Penn State 2 Miles N. of I-80 (Exit 161) on PA Rt. 26 Reservations: 800-562-8127 • (814) 355-7912
30 | May 2014
KCF Technologies was a stop on the tour.
Mel Billingsley, president and CEO of the Life Sciences Greenhouse of Central PA, spoke of the significant funding and support provided to Novsentis by the LSGPA, along with Ben Franklin Technology Partners of Central PA and the CBICC. Billingsley pointed out the selection of Novasentis as the winner of the 2014 Best of Innovations Award at the Consumer Electronics Show is a testament to its technology. A key takeaway for Newhouse was the collaborative effort underway in Centre County to grow the economy. “Centre County is fortunate to have an active Chamber of Business & Industry working collaboratively with local government leaders and critical community partners and others that advocate for their stakeholders to ensure the continual development and enrichment of the community as a whole,” Newhouse continued. “The Corbett administration is grateful to be an invested partner with Centre County toward the continual growth of the regional economy and the creation of high-tech, family-sustaining jobs,” she said. Secretary Walker concluded that with a great group of leaders, from its state elected officials, to the county and local levels, Centre County continues to have an unemployment rate consistently below the state and national average and tremendous potential for additional economic growth in the future. The CBICC’s mission as an organization is to capitalize on that potential.
fronttCentre
www.cbicc.org
Moving Centre County’s Economy Forward
cbicc.org
for optimizing business cash flow. At PNC Bank, we know that cash flow is the lifeblood of your business. CFO: Cash Flow OptimizedSM from PNC can help business owners like you optimize your cash position. Our PNC Bankers will work with you to develop customized cash flow solutions that enable you to achieve more. To see how the CFO: Cash Flow Optimized experience has helped other business owners better manage their cash flow, visit pnc.com/cfo. And, contact a PNC Banker today to schedule a cash flow conversation.
PNC is proud to support the CBICC’s front + Centre publication. > Stop by any Centre County PNC branch location: > North Atherton, South Atherton, College Avenue or Bellefonte > pnc.com/cfo
CFO: Cash Flow Optimized is a service mark of The PNC Financial Services Group, Inc. ©2014 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC
www.cbicc.org
fronttCentre
BB PDF 0613-092-150319
May 2014 | 31
Keith and Pam / State College residents and patients of Mount Nittany Health
JGCNVJKGT A
relationship.
Understanding what matters to our community means offering the highest quality of care and wellness to you – at more than 15 locations. It means having more than 100 providers and 20 specialties 201 2014 14 Mou 1 Mount nt Nitta ittta ny Healt itt H alt l h Š20
at Mount Nittany Physician Group and state-of-the-art technologies at Mount Nittany Medical Center. Most importantly, it means having a team that cares as much about their patients as they do for them.
Your life. Our team.
mountnittany.org