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JOURNALNATIONAL GOLDEN TISSUE SET TO ACQUIRE ADDITIONAL SPACE FOR PRODUCTION LINE EXPANSION Project expects to retain 70 jobs while creating 120 new positions2 Spotlight: Hagerstown

Regional Airport (HGR)

3 Property of the Month

4 Farm of the Year Support Renewable Biomass Energy

5 Business Outreach

6 DBD-SBTDC Partnership Meet the Team

7 Business Incentives & Financing Programs

8 Calendar of Events

ISSUE #1 JUNE/JULY 2014

IN THIS ISSUE

From Left: Commissioner William McKinley, Commissioner Vice-President John F. Barr, Joel McCrea of DBED, Les Hall of DBED, Commissioner Ruth Anne Callaham, Commissioner President Terry L. Baker, Commissioner Jeff Cline

The Washington County Board of County Commissioners are

pleased to announce the approval of a $300,000 conditional loan to support National Golden Tissue’s acquisition of additional facility space at 19224 Longmeadow Road and increased production in Hagerstown, Md. Once acquired and renovated, NGT expects to retain 70 jobs while creating 120 additional full-time positions.

“National Golden Tissue has continued to grow and substantially increase jobs in our community in a challenging economy,” said Terry Baker, president, Washington County Board of County Commissioners.

“In partnership with the State, the County Commissioners and the Department of Business Development are pleased to continue supporting NGT's job growth and capital investment and we look forward to the positive economic impact for our County’s citizens.”

Established in Washington County in 2008, National Golden Tissue manufactures paper towels, bath and facial tissue, and napkins. The family-owned company is managed by brothers, Ghassem Shahrooz and Mahmood Shahrooz, who each have more than 20 years of experience in the paper and manufacturing industry. NGT currently provides brand name and private label products throughout the United States and Canada.

Partners in this $13 million jobs creation project include SunTrust Bank, the Maryland Department of Business and Economic Development, the State Community Development Block Grant Program, and the Tri-County Council for Western Maryland.

This collaborative economic development project comes on the heels of State and County support of Volvo Group’s expansion, also in Washington County. Earlier this year, the Maryland Department of Business and Economic Development approved a $4 million conditional loan, coupled with a $200,000 conditional loan from Washington County and other state and local tax credits and training programs.

The most recent published unadjusted unemployment rate in Washington County is 6.4% for April 2014, down from 7.3% in March 2014.

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Hagerstown Regional Airport (HGR), a financially self-supporting airport complex managed

by Washington County, is home to a variety of businesses that provide travel services to the general public and airside services to the general aviation community. The 400-acre facility includes a secured perimeter, an air traffic control tower, state-of-the-art navigational aids, and the second-longest public runway in the State of Maryland. Sun Air provides passenger service to Dulles International Airport (IAD) and Allegiant provides passenger service to Orlando Sanford International Airport (SFB). www.FlyHagerstown.com for more information.

ABOUT HAGERSTOWN REGIONAL AIRPORT

HAGERSTOWN REGIONAL AIRPORT CONTRIBUTES MILLIONS TO LOCAL ECONOMY HGR ranks third out of 35 public use airports in Maryland

The Maryland Aviation Administration (MAA) recently published a report detailing the economic

impact of the 35 public use airports located in the State. The study focused on the important roles airports play in stimulating local economies by analyzing business revenue, job creation, personal income, and tax contributions data from 2012. Included in the report is Hagerstown Regional Airport (HGR), a financially self-supporting airport complex managed by Washington County Government. The MAA study revealed HGR ranks third out of 35 public use airports in the State of Maryland.

Statewide Economic ImpactIn Maryland, the study revealed the following:

• Nearly 8,700 jobs can be traced to the aviation industry resulting in personal wages of more than $442 million

• More than $665 million in business revenue was generated

• Approximately $222 million was generated as a result of local purchases

HGR’s Economic ImpactHGR’s impact on the local economy is significant as shown in the following report highlights:

• HGR generated over $109.6 million in business revenue and collected over $7.4 million in state and local taxes

• The over 1,300 people employed by business activity brought in a total personal income figure of $74.4 million.

HGR includes more than 12 aviation-related businesses. These fixed base operators provide numerous services including aircraft rental, heated hangars, computerized weather, aircraft inspections, and aircraft maintenance and repair. The flight school conducts discovery flights, pilot ground school, and flight training.

Since 2008, businesses supporting the aero defense industry have landed at HGR bringing with it multi-million dollar defense contract awards. The growth in aero defense spawned local economic development, allowing government officials to bring the Pittsburgh Institute of Aeronautics (PIA) education program for FAA-approved Aviation Maintenance Technicians to the airport in 2011.

To access the full report, visit: www.marylandregionalaviation.aero/content/publications/index.php

Retaining Earnings,Dividends

& Investments

Payroll

Taxes

LocalPurchases

Business Revenue

Maryland AirportActivity

Personal Income

(re-spending)

Indirect Jobs

DirectJobs

Induced Jobs

ISSUE #1 | JUNE/JULY 2014 3

WA S H I N G T O N C O U N T Y, M A RY L A N D

PROPERTY OF THE MONTH AGS Building

Property Address 12114 Insurance Way Hunt Ridge Business Park Hagerstown, MD 21740

Contact Washington County, Maryland Department of Business Development 240.313.2280 edcinfo@hagerstownedc.org

Type Building-Flex

Year Built 2006

Enterprise Zone No

Comments Newly constructed (2006) “Plug and Play” flex building. First & second floor office space, 5000 sf each. 20,300 sf of high-bay A/C warehouse space. This office is fully furnished with new furniture, phone system and broadband. The warehouse space is fully air conditioned with several zones. Dock and drive-in doors. The building was designed to permit easy expansion to double the current size. Owner will subdivide space for multi-users. Property is zoned HI (Highway Interchange District).

Total Size 30,300 sq ft

Size Available 30,300 sq ft

Terms Lease

Zoning Highway Interchange

Water City of Hagerstown

Sewer City of Hagerstown

Natural Gas Columbia Gas of Maryland

Distance to Interstate 1 Mile

City of Hagerstown Tax District? No

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ALIABAAD FARM RECOGNIZED AS 2013 WASHINGTON COUNTY FARM OF THE YEAR Third annual award honoring agricultural heritage and farm families in Washington County

Photo of Aliabaad Farm, Sharpsburg, MD

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The Washington County Department of Business Development, Agricultural Business Development is pleased to announce

Aliabaad Farm, located in Sharpsburg, Maryland, is the recipient of the 2013 Washington County Maryland Farm of the Year award.

Established May 2007, Aliabaad Farm is a produce operation with registered free range eggs, grass fed dairy goats, sheep and cattle. The farm specializes in Customer Supported Agriculture (CSA) and Farmers Markets. With a recent expansion, farm-goers will find a Visitors Center and Farm Stand located on the property open for the convenience of local residents. Aliabaad CSA pricing is as follows:

Early bird prices: • Weekly Membership: $650 (May 2014 to October 2014) • Weekly Membership: $550 (June 2014 to September 2014) • Bi-weekly Membership: $475 (May 2014 to October 2014) • Winter CSA: $400 (Nov 2014 to end of Jan 2015) • Extended Season: $950 (May 2014 to end of Jan 2015)

In the future, Aliabaad Farm plans to build the necessary infrastructure to provide a four season operation in response to customer demand for fresh produce year round. Walking paths and benches will be installed to maximize the visitor experience. A 10-acre plot is anticipated for grape production and more historical elements will become part of the Aliabaad Farm experience featuring President Abraham Lincoln who visited the farm numerous times during the Civil War.

As this year’s winner, Aliabaad farm will receive a portrait/video session, plaque, an outdoor farm sign recognizing their accomplishment and a plaque posted in the Washington County Agriculture Education Center lobby for the duration of the year.

To be eligible for this award, the principal farm operator/owner must be in business for a minimum of five years and be on at least five acres of agriculturally zoned land and primarily located in Washington County. Winning farms showcase excellence in agriculture and promote a greater understanding of the challenges faced by today’s farmers. Numerous criteria are judged including production, conservation, preservation, community involvement, and dedication to farming and agriculture.

For more information, contact Leslie Hart, Agricultural Business Development Specialist: 301.432.4782 | lhart@hagerstownedc.org

The U.S. Department of Agriculture (USDA) announced support for agriculture producers and energy facilities working to turn renewable biomass materials into clean energy. The support comes through the Biomass Crop Assistance Program (BCAP), which

was reauthorized by the 2014 Farm Bill and will resume this summer. The farm bill authorizes $25 million annually for BCAP, requiring between 10 and 50 percent of the total funding to be used for harvest and transportation of biomass residues. Traditional food and feed crops are ineligible for assistance. The 2014 Farm Bill also enacted several modifications for BCAP, including higher incentives for socially disadvantaged farmers and ranchers, and narrower biomass qualifications for matching payments, among other changes. "This initiative helps farmers and ranchers manage the financial risk of growing and harvesting energy biomass at commercial scale," said Farm Service Agency Administrator, Juan M. Garcia. "Investing in agricultural and forestry producers who cultivate energy biomass and supporting next-generation biofuels facilities make America more energy independent, help combat climate change and create jobs in rural America." Review the entire announcement by visiting: http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=ner&newstype=newsrel&type=detail&item=nr_20140520_rel_0091.html

USDA Announces Support for Renewable Biomass Energy

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WA S H I N G T O N C O U N T Y, M A RY L A N D

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WASHINGTON COUNTY DBD AND SBTDC CONNECT LOCAL BUSINESSES WITH CONFIDENTIAL CONSULTING SERVICES

Sarah is responsible for administering local laws and coordinating project review. She is a liaison among businesses looking to locate in the County, division directors and agencies at the state and local level while guiding the County brand.

Bob is the DBD’s primary interface for new and existing businesses. He provides assistance with expansion or relocation needs and administers the State and Local business incentive programs to encourage and assist with business growth.

Linda coordinates and manages the Washington County Business Outreach program and DBD sponsored events, tradeshows and meetings. She provides assistance and direction for business inquiry, retention and expansion efforts.

Leslie is responsible for developing, and managing economic development strategies and implementing programs to attract, retain, preserve and grow agricultural enterprises and related industries in Washington County.

Carmen provides research and administrative support by developing and maintaining databases, reports, and lists. Carmen maintains correspondence, serves as information facilitator and is the first point of contact for inquiries.

Tabitha coordinates and implements public information and branding initiatives along with strategic marketing projects for Washington County and the DBD. Tabitha’s projects include collateral and content development, event planning, and social media strategies.

SARAH LANKFORD SPRECHER Assistant County Administrator & DBD Interim Director

BOB MANDLEY Business Development Specialist

LINDA SPENCE Business Support Specialist

LESLIE HART Agricultural Business Development Specialist

CARMEN HARBAUGH Administrative Assistant

TABITHA PORTERFIELD Marketing Specialist

ssprecher@washco-md.net 240.313.2215

rmandley@hagerstownedc.org 240.313.2287

lhart@hagerstownedc.org 301.432.4782

tporterfield@washco-md.net 240.313.2383

lspence@hagerstownedc.org 240.313.2286

charbaugh@hagerstownedc.org 240.313.2285

The Washington County Department of Business Development (DBD) is pleased to announce a partnership with the Western Maryland Small

Business and Technology Development Center (SBTDC). In conjunction with ongoing DBD business outreach initiatives, Sam Devaram, SBTDC Consultant, now serves as a Washington County small business community resource providing one-on-one consulting services and training programs.

“My role with the SBTDC in Washington County is to assist business owners and aspiring entrepreneurs in growing their business sustainability and profitability, at no cost to them,” said Devaram.

Devaram’s expertise includes working with start-up and existing businesses, providing assistance with start-up logistics and legalities, business planning, financial analysis and projections, business operations and management, pricing and marketing.

Devaram holds an MBA from the University of Missouri with an emphasis in Corporate Finance and Organizational Management. Prior to working with Washington County, Devaram assisted more than 230 small businesses and helped launch more than 48 business ventures as a business specialist with Missouri SBTDC.

To create a one-stop shop for business owners seeking resources, Washington County has located Devaram’s office within the Washington County DBD headquarters at 100 West Washington Street, Room 103.

To contact Sam Devaram with small business questions, call 240.313.2282 or email sdevaram@frostburg.edu.

Visit westernmdsbdc.org to learn more about Western Maryland Region SBTDC’s services and hagerstownedc.org to learn more about Washington County DBD.

Pictured above, Sam Devaram of Western Maryland SBTDC

ISSUE #1 | JUNE/JULY 2014 7

Maryland Economic Development Assistance Authority Fund (MEDAAF)

A State discretionary fund used to provide financing guarantees, conditional loans or grants, MEDAAF incentives are negotiated on a project-by-project basis based on the type of project, capital investment, number of new jobs and wages.

New Jobs Tax CreditDesigned to attract high tech industry companies and well-paying jobs to our community, this program provides a 6-year tax credit for qualifying businesses that either expand or relocate in Washington County. The credit applies to Washington County’s real property tax imposed on real property owned or leased by the business and personal property owned by the business.

A business may claim a property tax credit in the amount of: 52% (years 1&2), 39% (years 3&4), and 26% (years 5&6) against County

taxes imposed on the assessed value of the new or expanded premises. Credits can also be taken against one of the following State taxes: corporate income tax, personal income tax or insurance premiums tax.

This credit applies to new construction and/or expansions of at least 10,000 sq.ft. which create at least 25 new jobs, of which at least half pay 135% of the County’s average weekly wage. Retail, hospitality, and warehousing and distribution facilities are not eligible for the tax credit.

Fast Track ApprovalBased on the size of the project, job creation, wages and industry, projects may qualify for the County’s Fast Track Approval program. Projects will be given preference and the Department of Business Development will serve as a facilitator for plan and permit approvals.

State Programs:

Job Creation Tax CreditThe program provides state income tax credits up to $1,500/job for new jobs created in Maryland. At least 25 new positions must be created to be eligible for the program.

One Maryland Tax CreditProjects may recoup up to $5.5M of capital investment and relocation expense over 14 years. The tax credits are one-to-one against actual capital investment providing the project creates at least 25 new jobs in Maryland, paying at least 150% of the minimum wage and receives prior State approval. The tax credits are applied to State corporate income tax. In the event the facility does not generate sufficient State income tax liability, credits can be refunded through the employment taxes paid to the State by the company, starting in year 4 or 6 of the 14 year program depending on the wage rates. Retail and hospitality businesses are not eligible.

County Programs:

High Performance (Green) Buildings Tax Credit ProgramTo qualify, new construction must achieve at least a silver rating according to the U.S. Green Building Council’s LEED (Leadership in Energy &

Environmental Design) green building rating system as adopted by the Maryland Green Building Council. The tax credit will be applied to the increased assessment of the County’s real property tax for 3 years. The tax credit is dependent on the LEED certification granted: LEED Certified Silver – 20%, LEED Certified Gold – 25%, or LEED Certified Platinum – 30%. This credit can be combined with other qualified tax credit programs.

Pad-Ready Site Commercial Stimulus ProgramDesigned to encourage builders to bring undeveloped land to a shovel-ready state and for sites with existing buildings in need of redevelopment. Under the program, new construction and expansions qualify for tax credit of 0.4% (0.004) of the estimated construction cost of the new improvement per year for up to 3 years. The credit cannot be combined with Enterprise Zone Tax Credits. The program expires November 5, 2015.

Located at the intersection of I-81 and I-70, just 75 miles northwest of our nation’s capital, Washington County, Md. is the hub of the tri-state region’s economy. Our Fast Track Team and Department of Business Development are available to guide you through incentives

and financing programs to help your business open, grow or relocate in one of our great communities.

Business Incentives & Financing ProgramsA pro-business climate, strategically located at the intersection of I-81 & I-70

Washington County, Maryland

U P C O M I N G E V E N T S

WashCoBizDev

@WashCoBizDev

WashingtonCountyMD

Washington County, Maryland Department of Business Development

100 West Washington Street Hagerstown, MD 21740

P: 240.313.2280 F: 240.313.2281

www.hagerstownedc.org edcinfo@hagerstownedc.org

8 ISSUE #1 | JUNE/JULY 2014

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SAVE THE DATE

Eggs & Issues July 9 @ 7:30 a.m.Join the Chamber of Commerce and the Department of Business Development Agriculture Marketing team for an update on local farms and wineries. Be sure to register with the Chamber of Commerce.

The Academy Theater 58 East Washington Street Hagerstown

TEDCO Funding Presentation June 13 @ 2:00 P.m. This webinar explains TEDCO programs, the process to apply and qualify, and the guidelines for successfull management of any funding received. Online Webinar Visit tedco.md for more information

Ready, Set, Go! Are You Ready to Start a Business? June 25 @ 10:00 a.m. "Ready, Set, Go! Are You Ready to Start a Business?" is a training session that helps develop an awareness for the "entrepreneur" of various aspects revolving around the idea of "Are You Ready to Start a Business?" This seminar is a guide to beginning a successful future in a business world. USMH 32 West Washington Street Hagerstown

Small Business Opportunity Forum - Small Business Success Starts Here June 26 @ 8:30 a.m. Please join the Maryland Department of Housing and Community Development, in partnership with the Western Region SBTDC, to learn how to make your Small Business a Sucess. This is a networking opportunity for you to connect with other businesses and establish partnerships to foster and develop mutually beneficial relationships. USMH 32 West Washington Street Hagerstown

Maryland Dairy Industry Association Meeting June 30 @ 10:30 a.m. The Maryland Dairy Industry Association strives to keep the industry viable and competitive and to be proactive. Visit www.marylanddairyindustry.org for more information.

Frederick County UME Office 330 Montevue Lane Frederick, Md