2016 Issue 4
Develop, Innovate, Prosper
Oklahoma’s Economic Development Efforts Paying Off New and expanding companies plan to invest more than $2.3 billion Governor Mary Fallin said she is optimistic about recent economic development activity, despite the downturn being experienced in the energy sector. “During the first six months of the fiscal year, the Oklahoma Department of Commerce reports that 28 companies made plans to invest more than $2.3 billion over a ramp-up period of three years. These investments will create more than 3,600 new jobs with a projected average annual wage of more than $64,000,” said Fallin. “The attraction and expansion projects secured in the first half of the 2016 fiscal year alone will bring an estimated $232 million in new annual payroll to the state. That’s good news.” In 2013, the Oklahoma Legislature overhauled the state’s workers’ compensation system and addressed the need for lawsuit reform. At last count, businesses have saved more than $368 million in workers’ compensation costs since 2013 and the state’s ranking on its litigation environment has risen from 42nd to 33rd, according to the U.S. Chamber of Commerce’s Institute for Legal Reform. Both issues are critical to making Oklahoma more attractive to business. “As we work to further diversify the state’s economy, it is critical that we have economic development tools like Quality Jobs, the investment tax
credit, the historic building tax credit, the aerospace industry engineer tax credit and Pooled Finance at our disposal,” Fallin said. “It would be extremely unwise for us to put a moratorium, however temporary it may be, on effective methods of bringing new investment and jobs, as well as the opportunity for increased income, to our state.
“I’ve always said that the state should keep incentives that work and phase out those that don’t. That’s why I signed legislation last year that requires all business tax incentives to be objectively evaluated at least once every four years and requires future incentives to include measurable goals. The Incentive Evaluation Commission will hold its first meeting Thursday.”
350-Ton Generator Arrives in Oklahoma via the Port of Catoosa p. 3 State Regents Recognize Institution, Business Partnership p. 4 Four Oklahoma Communities Named to List of Nation’s Top Micropolitans p. 8
THE STATE OF GROWTH News and Rankings
From metropolitans to micropolitians Oklahoma continues to see a surge of growth and special recognitions across its industries and communities.
Tulsa 3rd in Site Selection’s 2015 Top 10 Mid-Market Metros with Expanded Facilities, Tulsa had 39 total qualifying projects in 2015. In the Micropolitan category, Durant ranked #13, Enid #39 and Bartlesville and Miami tied for #73.
Oklahoma City 8th for Prosperity, 17th in Growth, and 18th in Inclusion TX according to the Brookings Institute Metro Monitor reviewing five-year results for the largest 100 metros areas in the U.S.
#2 Best NBA Destination according to Business Insider in 2015; USA Today College also named Oklahoma City the third-best U.S. city for Millennials.
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Best National Wildlife Refuge the Wichita Mountains, the Readers’ Choice Awards.
Oklahoma Innovation Institute and Tulsa Research Partners will receive a $351,400 grant to help develop academic ideas into products. The money will fund a “Community Technology Commercialization Concentrator (CTCC) Portal” — a means of taking research and other resources and finding a way to bring those to market with the private sector.
Oklahoma City #6 on USA Today’s top 14 places to visit in America in 2016. Oklahoma City Boathouse District, RIVERSPORT Rapids, H&8th, food truck festival, and the opening of The Criterion, a new music venue in the Bricktown district, were named as top destinations. “During the first six months of the fiscal year, the Oklahoma Department of Commerce reports that 28 companies made plans to invest more than $2.3 billion over a ramp-up period of three years. These investments will create more than 3,600 new jobs with a projected average annual wage of more than $64,000.” - Governor Mary Fallin
For more informaiton visit: okcommerce.gov/business
350-Ton Generator Arrives in Oklahoma via the Port of Catoosa We at Mitsubishi Hitachi Power Systems (Americas) are proud to be an integral part of GRDA’s expansion at the Grand River Energy Center, The M501J, gas turbine offers the largest output and the highest performance among all gas turbines in commercial operation. ~ Dave Walsh, President and CEO of Mitsubishi Hitachi Power Systems America With the help of Oklahoma’s robust inland waterway system, one of the most efficient electric generators in the nation will soon be part of the Grand River Dam Authority’s new Unit 3 combined cycle gas plant. The turbine, manufactured in Savannah, Ga., is the first of its kind in the Western Hemisphere and can generate 327 megawatts of power. The turbine will be paired with a steam turbine to give the plant a total capacity of 495 megawatts. The M501J has the capability to produce 327 megawatts (MW) of electricity. Onsite at GRDA, it will be fueled by Oklahoma natural gas and operate as part of a combined cycle generator, in concert with a steam turbine, also manufactured by Mitsubishi. Together, the turbines will give GRDA Unit 3 the capability to produced 495 MW. Trucking the turbine from Georgia was not an option and
transporting via rail would have been extremely costly.
Navigation System (MKARNS) and the Tulsa Port of Catoosa.
“We at Mitsubishi Hitachi Power Systems (Americas) are proud to be an integral part of GRDA’s expansion at the Grand River Energy Center,” said Dave Walsh, President and CEO of MHPSA. “The M501J gas turbine offers the largest output and the highest performance among all gas turbines in commercial operation. When commissioned at Unit 3 in 2017, this turbine will be the 28th J-Series to go commercial, as well as the largest and most efficient single unit in operation in the Western Hemisphere.”
“These are tremendous assets for Oklahoma,” said Sullivan. “For GRDA, the waterway and port provided the only economical way to transport this turbine to Oklahoma.”
GRDA CEO Dan Sullivan also recognized that bringing the turbine, and many other components for the new facility, would have been difficult without the existence of the McClellan-Kerr Arkansas River
The Tulsa Port of Catoosa is one of the largest and most-inland ports in the country. “The waterway is an integral part of the economy and transportation network for our region,” said Bob Portiss, Port Director, Tulsa Port of Catoosa. “We are proud that the MKARNS and the capabilities of the Port of Catoosa were so beneficial to bringing this oversize cargo to our friends at GRDA.”
Stroud Latest City in Oklahoma Main Street Program for 2016 The Oklahoma Main Street Center announced that Stroud is the newest addition to the Oklahoma Main Street Program for 2016 and will join the program at the associate level. “We are excited to be a part of the Main Street program again, having to withdraw after the 1999 tornado devastated our community economically,” said Diana Smalley Reed, Stroud Main Street Program Manager. “Not only will our local citizens benefit from the revitalization of our Main Street district which is located on Route 66, but it will present a positive image to tourists from Oklahoma, the
United States and abroad as they travel this historic highway and visit our unique town.” The Oklahoma Main Street Program, which now has 36 participants, is a comprehensive revitalization effort that provides communities with tools to improve their historic central and neighborhood business district areas. The Oklahoma Department of Commerce operates the Main Street Program. The associate level is a two-year endeavor to build capacity to do the fully designated Main Street program.
Stroud will have access to limited Main Street services, including training and technical assistance for preservationbased commercial district revitalization, as well as have minimal Main Street requirements. The associate level will also operate with a volunteer board of directors, much like the fully recognized programs. Stroud will receive leadership training for its program manager and board of directors, as well as training in the nationally recognized Four-Point Main Street approach of organization, promotion, design and economic vitality.
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State Regents Recognize Institution, Business Partnerships Educational programs partner with business in innovative ways
Our state system institutions collaborate with the business community to link academic programs directly to employment needs. These partnerships allow our colleges and universities to provide innovative, interactive learning experiences for students that align with workforce requirements today and in the future.
~ Chancellor Glen D. Johnson, Oklahoma State Regents for Higher Education
Twenty-eight business and higher education partnerships throughout the state were recognized as innovative collaborations that further the education of Oklahoma’s workforce.
Some of the business and higher education partnerships recognized for 2016 were:
The Oklahoma State Regents for Higher Education’s Regents Business Partnership Excellence Award is designed to highlight successful partnerships between higher education institutions and businesses and to further cultivate the higher learning environment through State Regents’ Economic Development Grants.
ONEOK pledged $1.45 million to Langston University that included $500,000 in scholarships for accounting students, allowing them to receive the necessary financial assistance to obtain their degrees. ONEOK’s donation helped Langston’s athletic department install a state-of-the art Nevco video display board at the football stadium for Lions fans to enjoy a new and improved game day experience. Additionally, its support enabled the university to begin construction on a new marquee at the main entrance that will enhance visibility and allow message posting related to weather, events, games, greeting campus visitors, the school calendar and much more. The ONEOK senior-level leadership has spent countless hours on campus with students preparing them for life after graduation. ONEOK has hosted career preparation workshops and provided internship opportunities and postgraduation placement. Langston believes this partnership is a perfect example of ONEOK’s goal to better not only the company, but also the communities it serves.
Institutions involved in these partnerships provide $500 for tuition waivers to employees of the partnering businesses; internships that enable current students to work at the partnering businesses; faculty externships with the partnering businesses; and/or enhancement of the partnerships with additional equipment, materials or supplies. The State Regents provide a $500 match to the waivers. “Our state system institutions collaborate with the business community to link academic programs directly to employment needs,” said Chancellor Glen D. Johnson. “These partnerships allow our colleges and universities to provide innovative, interactive learning experiences for students that align with workforce requirements today and in the future.” Participating in the recognition program with Chancellor Johnson were Lieutenant Governor Todd Lamb and State Regent Mike Turpen.
Langston University and ONEOK
Murray State College and the Chickasaw Nation The Chickasaw Nation and Murray State College have been partners in economic development for a long time. The Honorable Bill Anoatubby has been the Nation’s tribal governor for almost 29 years and is a MSC alumnus. With an estimated annual economic impact of more than $13.9
Speakers included State Regent Mike Turpen, Chancellor Glen D. Johnson and Lt. Gov. Todd Lamb. Photo: OSRHE
Higher education staff and members of the business community gathered for the Regents Business Partnership Excellence Award ceremony at the University of Central Oklahoma.
billion to the south central Oklahoma region, the Nation owns numerous businesses in the gaming, hospitality, medical services and radio industries. In addition, it is involved in many businesses supportive to its core businesses. The Nation also operates historical sites and museums including the Chickasaw Cultural Center in Sulphur. The Nation has historically supported MSC in its development of many infrastructure improvement projects in Tishomingo, including a hospital, a water tower, buildings on campus and a new visitor center, and it currently has four other projects underway in Tishomingo. The Chickasaw Nation has been the quintessential business partner to MSC.
located in Tennessee. Since the implementation of this academy, supervisors have increased the productivity and morale of their production teams, increased employee retention, reduced turnover and lowered costs.
Oklahoma City Community College and Lopez Foods Inc. Lopez Foods Inc. and Oklahoma City Community College (OCCC) partnered together in 2013 to develop an employee development program to train entry-level and mid-level supervisors. Eddie Rodriguez of Lopez Foods and John Claybon of OCCC worked together to customize a training solution that would enable entry-and mid-level supervisors at Lopez Foods to more effectively lead and manage production teams. The Leadership Development Academy focuses on building productive teams, performance management and accountability, conflict resolution, risk management, situational leadership, and workplace violence. To date, there have been four academies with 90 graduates and another academy just started in January. OCCC also facilitated an academy for Campos Foods, a subsidiary of Lopez Foods
Rose State College and the United States Fab Lab Network The partnership between Rose State College and the United States Fab Lab Network has forged a common agenda to foster and promote higher education. Fab Labs engage students and educators in science, technology, engineering and mathematics (STEM) disciplines. Rose State’s Fab Lab, the first community-based fabrication laboratory hosted by an Oklahoma educational institution, opened in November 2014. The Fab Lab has become the hub for entrepreneurialism, academic study and community engagement. The facility is also an educational commodity for the Air Force Sustainment Center at Tinker Air Force Base. A senior Tinker leader recently proclaimed that the Fab Lab will be an extraordinary resource for the center’s peacekeepers. This noteworthy partnership continues to grow and, as a result, Rose State has established an educational and STEM training pathway that will stimulate community and economic growth and develop the workforce for tomorrow. Learn about all of this years the entire honorees at okhighered.org/news-center/edc-program2016.shtml
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Lawton Named “Great American Defense Community” by the National Association of Defense Communities The Lawton-Fort Sill Economic Development Corporation (LED) is proud to announce Lawton has been named a “Great American Defense Community” by the Association of Defense Communities. Lawton competed with a multitude of military communities for this national acknowledgement. “Lawton has a long history of its premiere dedications to the missions of Fort Sill and its military personnel,” said Mayor Fred Fitch. “The community should be very proud of this national award.” “LED has seen an increase of interest from relocating industries looking at major military communities,” said Chairman of the Lawton-Fort Sill Economic Development Corporation Phil Kennedy. “This national acknowledgement will raise awareness to those new industries.” “Lawton’s recognition and selection as a ‘Great American Defense Community’ comes as no surprise to Oklahomans and our military who have been fortunate to call Lawton home,” said U.S. Sen. Jim Inhofe (R-Okla.) “The people of Lawton exemplify all that is good about Oklahoma and our nation. Their patriotism and pride in supporting and caring for our service members and their families stationed at Fort Sill is unmatched. I am proud of all you have done and continue to do to support our troops and for your love for the sound of freedom. Congratulations Lawton – well deserved!” The LED developed a small local team of individuals to submit a nomination package, which included congressional letters. The LED team also collected data from Lawton Public Schools, Cameron University, Great Plains Technology Center, Fort Sill, and local hospitals. All of which carry out various means of supporting Fort Sill. The Association of Defense Communities press release can be viewed at the LEDC’s website at lawtonedc.com/docs/GADC-MEDIARELEASE_DC.pdf. Association of Defense Communities (ADC) builds resilient communities that support America’s military. ADC is the connection point for leaders from communities, states, the military and industry on community-military issues and installation management to enhance knowledge, information sharing and best practices. The association includes nearly 300 communities, states, regions and affiliated industry organizations representing every major defense community/ state in the nation. The Lawton-Fort Sill Economic Development Corporation is a 501(c)(6) not-for-profit corporation supported and led by the community’s business leaders, city government and top
academic institutions. The Lawton-Fort Sill EDC collaborates closely with other entities throughout the southwest OK/Lawton region and the state to ensure a globally competitive and sustainable regional economy through quality job creation. To view the website, please visit lawtonedc.com. To view the video, go to youtube.com/watch?v=AYEC_vb86pE The Association of Defense Communities (ADC) and the Defense Communities Caucus designated 10 communities from across the nation as “Great American Defense Communities” for providing unwavering support to service members and military families. The Great American Defense Communities program was launched this year to acknowledge the unique contributions cities, counties and regions that host installations make to improve quality of life for service members, veterans and their families. This inaugural class of communities was selected by a panel of defense community advocates and experts from dozens of nominees based on the broad range of efforts they carry out on behalf of military personnel and their families, covering areas such as education, job opportunities, housing, family support during deployments and community appreciation. “All 10 of our inaugural class of honorees truly embodied the ideals this initiative was designed to celebrate — making host communities for our nation’s military installations ‘Great Places to Call Home,’” said ADC CEO Tim Ford.
Vigilant Aerospace Systems Licenses New Communication Technology for Unmanned Aircraft Systems from NASA One of major advantages of this system is that it uses existing FAA infrastructure to help keep drones away from other aircraft. It also gives nearby aircraft the ability to be aware of the drone and improves situational awareness for the drone operator. ~ Kraettli L. Epperson, CEO Vigilant Aerospace Systems NASA has announced the licensing of its new traffic awareness and collision avoidance technology to Vigilant Aerospace Systems (VAS), an Oklahomabased company. NASA has developed technology that may enable unmanned aircraft to fly safely in the national airspace along with piloted aircraft. The patent-pending integrated communications and control system is capable of collision warnings as well as real-time traffic and weather updates. This communication system brings unmanned aircraft a step closer to flying in the national airspace using an aircraft tracking system called the Automatic Dependent Surveillance Broadcast, or ADS-B, which is to be mandated by the Federal Aviation Administration for most aircraft by 2020. NASA Aeronautics Research Mission Directorate researchers have been working on technologies that would allow these unmanned aircraft to share the national air space with piloted aircraft
through its program called Unmanned Aircraft Systems in the National Air Space or UAS in the NAS. Center Director David McBride for NASA’s Armstrong Flight Research Center in Edwards, California, recently signed a license agreement with VAS of OKC. “We are excited to enter into a license agreement with Vigilant Aerospace Systems allowing for the transfer and commercialization of the Automatic Dependent Surveillance Broadcast System for Ownership, under direct control of the pilot, and Traffic Situational Awareness technology,” said Laura Fobel, chief of Armstrong’s technology transfer office. “We look forward to working with Vigilant over the coming years.” VAS intends to commercialize the technology as part of its new FlightHorizon product suite and equip manned and unmanned aircraft with the hardware and software that provides synthetic cockpit views and detect commands to improve flight safety for all kinds of aircraft.
“One of major advantages of this system is that it uses existing FAA infrastructure to help keep drones away from other aircraft,” said Kraettli L. Epperson, CEO of Vigilant Aerospace Systems. “It also gives nearby aircraft the ability to be aware of the drone and improves situational awareness for the drone operator.” The new technology has been tested extensively on Armstrong’s remotely piloted aircraft named Ikhana. Also known as a Predator B, Ikhana supports both science missions and aeronautical technology development such as the UAS in the NAS project. “We were excited about licensing this technology because we see the potential for these particular inventions to not only make significant contributions to flight safety for both unmanned and manned aircraft but also to be a platform technology for the future of flight automation,” said Epperson.
Oklahoma UAS Quick Facts: Oklahoma has dedicated hangar, runways and airspace for UAS/UAV research and testing Over 40 UAS companies are now located in Oklahoma UAS severe storm research through a collaboration between Oklahoma State University of Oklahoma and the National Severe Storms Laboratory
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Four Oklahoma Communities Named to List of Nation’s Top Micropolitans Site Selection magazine recently ranked Durant as No. 13 in its listing of the Top 100 Micropolitans. Three other Oklahoma cities – Enid, Bartlesville and Miami – also made the list. According to the article, a micropolitan is defined by the Office of Management and Budget in the White House as one or more adjacent counties that have at least one urban core area of at least 10,000 population but less than 50,000. It also must have an adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties. In addition to ranking Durant at No. 13, the magazine listed Enid at No. 39; Bartlesville at No. 73 (tie); and Miami also at No. 73 (tie). Those communities had 13 successful economic development projects in 2015. “Oklahoma continues to attract economic development projects in both urban and rural areas,” said Governor Mary Fallin. “The addition of hundreds of jobs to cities like Durant, Enid, Bartlesville
Upcoming Events ODOC WEBINAR: COMMUNITY DEVELOPMENT BLOCK GRANT - PROGRAM OVERVIEW AND APPLICATION PROCESS Wednesday, May 4, 2016 10 AM to 11 AM No cost to attend.
This webinar will provide an overview of the CDBG program including its purpose, eligible applicants, eligible projects and funding levels. The application process will be discussed including deadlines and use of the OKGrants System. For more information and to register visit okcommerce.gov/webinar MEMORIAL DAY Monday, May 30, 2016 State Offices Closed
and Miami are significant and highlight the fact that every part of the state has something to offer to prospective businesses. I commend the Oklahoma Department of Commerce and the local economic development organizations for their efforts to see these projects through to success.” Projects in Durant are expected to add more than 675 jobs and will see an estimated $274 million in direct investment in the region. In total, the 13 projects from Durant, Enid, Bartlesville and Miami will result in more than an estimated 975 jobs for the state. “We are continuing to diversify our state’s economy with projects in manufacturing, distribution, information and financial services, as well as other industries,” said Commerce and Tourism Secretary Deby Snodgrass. “The business development team works hard to maximize economic development opportunities, working hand-in-hand with communities to bring successful projects to our state.”
NEW PIONEER A PRODUCT OF THE OKLAHOMA DEPARTMENT OF COMMERCE EDITOR IN CHIEF: Kimberly Hickerson CONTRIBUTORS: Stefanie Appleton, Bryan Boone, April Goode, PHOTO CREDITS: Oklahoma Department of Commerce, OSRHE FOR NEW PIONEER SUBMISSIONS AND STORY IDEAS CONTACT: Kimberly Hickerson Editor-in-Chief - New Pioneer Oklahoma Department of Commerce 900 N. Stiles Ave., Oklahoma City, OK 73104 (405) 815-5240 kimberly.hickerson@okcommerce.gov
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