FFFFFororororormer Intmer Intmer Intmer Intmer Intererererernational Pnational Pnational Pnational Pnational Paper Plant Sold, Taper Plant Sold, Taper Plant Sold, Taper Plant Sold, Taper Plant Sold, To Beo Beo Beo Beo BeRRRRRedeedeedeedeedevvvvveloped feloped feloped feloped feloped for Commeror Commeror Commeror Commeror Commercial Usecial Usecial Usecial Usecial Use

Operation Oswego County Inc.-- An Economic and Job Development Corporation Serving Oswego County, NY

NNNNNEEEEEWWWWWSSSSS BRIEFBRIEFBRIEFBRIEFBRIEFSSSSSOSWEGO COUNTY ECONOMIC DEVELOPMENT

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EJ Spirtas Group of St. Louis, MOacquired the former International Paperfacility located on Mitchell St. inOswego. The lake-front purchaseincludes 55 acres of property with164,000 square feet of warehouse spacewith rail and truck docks, a 16,000-square foot office building, and a450,000-square foot, two-storymanufacturing facility.

The company plans to redevelop thefacility for manufacturing, warehousingand other commercial uses. The facilitywill be renovated to meet any tenantneeds and the 300,000 square foot millbuilding will be demolished.

“The property is fully equipped with thenecessary infrastructure to set up heavymanufacturing, while it is also adaptableto assembly and warehousing if needed,”said Eric Spirtas, president of EJ SpirtasGroup. “EJ Spirtas Group fully intendsto take the steps that will entice locally-needed jobs. We will continue to workwith local, state and federal agencies andofficials to enhance the site in order toattract local, regional and national usersof this type of property.”

“We are excited and encouraged that EJSpirtas Group has decided to purchaseand market this important property inOswego,” said City of Oswego MayorJohn Gosek. “I am confident that withEric Spirtas’ expertise in managementand redevelopment, the plant will be upand running very soon.”

“Since the plant closed, Operation

Oswego County has partnered with theCity of Oswego CommunityDevelopment Office to aggressivelymarket the property,” said L. MichaelTreadwell, CEcD, executive director ofOperation Oswego County. “We arefortunate that EJ Spirtas Group realizedthe tremendous potential of this plantand has committed its resources toredevelop the property and create newjobs.”

“This is a great opportunity for OswegoCounty to continue the growth of itsmanufacturing base. We look forwardto working with EJ Spirtas Group as anactive community and business partner,”said Russ Johnson, Chairman of theOswego County Legislature.

Former International Paper facility located on Mitchell Street in Oswego.

FFFFFultultultultulton Co-gon Co-gon Co-gon Co-gon Co-generenerenerenerenerationationationationationPlant APlant APlant APlant APlant AcqcqcqcqcquiruiruiruiruiredededededLion Capital Management Group(LCM), its partner Fimab andPromeneur & Hausmann, Inc. and ElPaso Merchant Energy North AmericaCompany reached a definitive agree-ment for LCM to own and operate theFulton Cogeneration Association, L.P.(FCA), a subsidiary of El Paso PowerMerchant of Houston, Texas.

The cogeneration plant is a 45-mega-watt, natural gas-fired, combined-cyclepower plant facility located in the cityof Fulton.

Currently, the plant is dispatched as a

Continued on pg. 2

2 Oswego County Economic Development News Briefs

Co-generation Plant Acquired continued...

merchant facility by El Paso, selling itsoutput into the NYISO Central Zone viaan interconnection to Niagara MohawkPower Corporation.

The plant specializes in producing elec-tricity and steam for businesses through-out Oswego County.

“Being able to bring not only a consor-tium of cocoa producers as direct inves-tors to the business of manufacturingfine chocolate with the already trainedlabor available at the oldest milk choco-late manufacturing plant in NorthAmerica, but to also acquire a majorpower plant in the region, is truly thedream of every manufacturer,” said Dr.Ousmann-Alain Gbané, principal andchief investment officer of LCM.

According to Gbané, of all the transac-tions LCM has made within the last fewmonths, the latest may be the most piv-otal to the success of its investment in theNew York Chocolate & ConfectionsCompany.

“The sale of the cogeneration facility toLion Capital Management Group, par-ent company of New York Chocolate &

Confections Company, may become verybeneficial to the city of Fulton if the com-pany decides to produce electricity,” saidCity of Fulton Mayor Daryl Hayden.

The cogeneration plant was originallyinstalled in late 1990 to produce electric-ity with a $48,500,000 County of Os-wego IDA bond currently held by a sub-sidiary of LCM as a result of this trans-action with a balance of $18,700,000.

The purchase of the cogeneration facil-ity will not only allow the New YorkChocolate & Confections Company touse steam in running the former Nestléfacility, but also could potentially benefitother manufacturing plants and hospi-tals in the area.

“The involvement of LCM in this projecthelps strengthen the long-term develop-ment of New York Chocolate & Confec-tions Company in Fulton. Also, the po-tential of business relations with othercurrent and prospective employers, suchas Northeast Biofuels, is a tremendous as-set for growing the local economy,” saidL. Michael Treadwell, CEcD, executivedirector of OOC.

TTTTTalent Ralent Ralent Ralent Ralent Reeeeetttttention andention andention andention andention andAAAAAttrttrttrttrttraction Discussedaction Discussedaction Discussedaction Discussedaction Discussedat Public Issues Fat Public Issues Fat Public Issues Fat Public Issues Fat Public Issues Forororororumumumumum

Rebecca Ryan discusses how to attract andretain young professionals in OswegoCounty.

The Workforce Development Board ofOswego County, Operation OswegoCounty and SUNY Oswego co-hosted apublic issues forum in October titled“What’s Cool About Oswego County:Economic and Workforce Issues Todayand Tomorrow.”

Featured speaker was Rebecca Ryan,president of Next GenerationConsulting, Inc. (NGC). Ryandiscussed the findings of a recent studyconducted to determine how OswegoCounty can attract and retain youngprofessional employees.

Throughout August and September,NGC conducted a series of focus groupsand interviews with young professionalsto gauge their ideas on what makesOswego County competitive.

During the public issues forum, Ryanpresented the resulting “handprint” ofOswego County, which profiled howthe area scored in the seven indexes thatare considered important to youngprofessionals: vitality, earning, learning,social capital, cost of lifestyle, afterhours, and around town.

The strategic planning initiative willculminate with the publication of a five-year workforce development planexpected this winter.

Alcan, Inc. Alcan, Inc. Alcan, Inc. Alcan, Inc. Alcan, Inc. announced that the publicly-traded company to be created in the spin-off of its aluminum rolled productsbusiness will be called Novelis.

Pending governmental and shareholderapprovals later this year, Novelis willbegin operations as an independentcompany on Jan. 1, 2005. Novelis willbe the world’s largest aluminum rolledproducts company.

WWWWWise Buyise Buyise Buyise Buyise Buys Ss Ss Ss Ss Stttttororororores, Inc.es, Inc.es, Inc.es, Inc.es, Inc. announced plansto open a new store in the former AmesDepartment Store location in Hamilton,NY. The 43,000-square foot store willfeature a Payless Shoe Source, Kay-BeeToys and Hobby Shop outlet.

The Hamilton store will be the fifth for

Economic DeEconomic DeEconomic DeEconomic DeEconomic Devvvvvelopment Uelopment Uelopment Uelopment Uelopment Updatpdatpdatpdatpdates:es:es:es:es:Wise Buys which now has locations informer Ames stores in Canton,Tupperlake, Gouverneur and Pulaski.

The store will employ 40-50 people.

The Northeastern Economic DevelopersAssociation recently recognizedOperOperOperOperOperation Oswation Oswation Oswation Oswation Oswego Countyego Countyego Countyego Countyego County with anaward of excellence for its websitewww.oswegocounty.org. Therecognitions are awarded each year toeconomic development organizationsthroughout the northeastern U.S.

“We are proud that our marketingmaterials have met the test of oureconomic development colleagues,” saidL. Michael Treadwell, CEcD, OOCexecutive director.

Oswego County Economic Development News Briefs 3

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Operation Oswego County offers an array of business assistance services to

both new and expanding companies throughout Oswego County

OOC NOOC NOOC NOOC NOOC Named tamed tamed tamed tamed to CNY Ro CNY Ro CNY Ro CNY Ro CNY RegionalegionalegionalegionalegionalDeDeDeDeDevvvvvelopment Allianceelopment Allianceelopment Allianceelopment Allianceelopment Alliance

NNNNNororororortttttheasheasheasheasheast Biofuels, LLt Biofuels, LLt Biofuels, LLt Biofuels, LLt Biofuels, LLCCCCC will acquire a90-acre subdivision of Riverview Busi-ness Park in Volney for a 100-million-gallon-per-year ethanol production facil-ity. The $148 million project will in-clude retrofitting approximately300,000 square feet of the existingbuilding and the construction of twograin silos and one cooling tower. Theproject will create 51 jobs;

MatMatMatMatMatangi Moangi Moangi Moangi Moangi Motttttels, LLels, LLels, LLels, LLels, LLCCCCC acquired the DaysInn in the city of Oswego. The 44-roommotel will be upgraded through build-ing renovations and new furniture andfixtures. The project will create 15 jobs.Funding for the $1.6 million project willbe provided by the Oswego CDO, Os-wego County National Bank, County ofOswego IDA and an SBA 504 loanthrough OOC;

AAAAAttttttttttorororororneneneneney Chry Chry Chry Chry Chrisisisisistttttopher Ricopher Ricopher Ricopher Ricopher Richmondhmondhmondhmondhmond willrenovate a building in the city of Oswegoto establish a law practice which will fo-cus specifically on worker’s compensa-tion. The building will be developedwith state-of-the-art computer and elec-tronic conferencing capabilities. Fund-ing for the project will be provided by theOswego CDO, PathFinder Bank,County of Oswego IDA and an SBA 504loan through OOC; and

ModheshwModheshwModheshwModheshwModheshwararararari Moi Moi Moi Moi Motttttels, LLels, LLels, LLels, LLels, LLCCCCC acquiredand will renovate the 47-room ThomasInn in the city of Oswego which will befranchised as a Scottish Inn. The $1.3million project will create 13 jobs andwill receive funding assistance from theOswego CDO, Oswego County NationalBank, County of Oswego IDA and anSBA 504 loan through OOC.

Members from 12 counties wererecently named to a new RegionalDevelopment Alliance intended to helpCentral New York compete as a larger“super region.”

The 23-member group is comprised ofindividuals from a variety of economicdevelopment, business and academicinstitutions across the region.

Participating counties include Cayuga,Cortland, Herkimer, Jefferson, Lewis,Madison, Oneida, Onondaga, Oswego,St. Lawrence, Seneca and Tompkins.

Representing Oswego County areOperation Oswego County ExecutiveDirector L. Michael Treadwell and LaserTransit CEO and OOC Board PresidentGeorge Joyce.

Alliance members will be responsiblefor:

•Identifying issues for regionalcooperation;

•Developing and branding a regionalidentity;

•Fostering a cooperative regionalconsciousness;

•Identifying champions for specificprojects and recommendations; and

•Promoting the goals andrecommendations laid out within theEssential New York Initiative.

The group will meet several times eachyear to establish regional priorities.

The term for reduced rate interest bor-rowing under New York State’s LinkedDeposit Program was recently extendedfrom two to four years. The new provi-sion takes effect Nov. 1, 2004.

The Linked Deposit Program is a pub-lic-private partnership, administered byEmpire State Development, which pro-vides companies with affordable capitalbased on bank loans at reduced interestrates and subsidized by corresponding“linked” state deposits.

Since 1994, the Linked Deposit Pro-gram has funded more than 1,900projects for a total of nearly $659 mil-lion, leveraging more than $1.4 billionin new capital investment by businessesin the state.

Since the program’s inception in 1993,a reduced interest rate was provided toborrowers for a period of two years. Themaximum amount permitted for alinked deposit is $1 million. Under thenew guidelines, a company that receivesa two percent reduction on a $1 millionlinked deposit for four years will realizean interest savings of $80,000 on itsloan. That $80,000 will improve thecompany’s cash flow and provide fundsfor new jobs, training, marketing, andmore. There is no minimum loanamount.

Eligible businesses can obtain loansfrom commercial banks, savings banks,savings and loan associations, farmcredit institutions, and the New YorkBusiness Development Corporation atan interest rate that is two or three per-centage points lower than the prevail-ing rate on such loans, thereby makingborrowing less expensive.

For more information, visitwww.nylovesbiz.com, or call the LinkedDeposit Program office at (518) 292-5261.

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44 West Bridge StreetOswego, NY 13126

Phone: 315-343-1545Fax: 315-343-1546

E-mail: ooc@oswegocounty.orgwww.oswegocounty.org

Bulk RateU.S. POSTAGE

PAIDPermit No. 470

Oswego, NY

This newsletter is partially funded by our economic development supporters.

4 Oswego County Economic Development News Briefs

OperOperOperOperOperation Oswation Oswation Oswation Oswation Oswego Countyego Countyego Countyego Countyego County is aunique organization working toenhance and protect the businessand industrial climate of OswegoCounty and its diversecommunities.

To achieve that goal, we providecomprehensive assistance to bothlocal businesses and industryseeking to locate in our county.

To our business clients, OOC meansopportunities for expansion,relocation, better business climate,and even for survival that may nototherwise be possible.

To the people of Oswego County,OOC means new job opportunities,broader real property tax bases, anda better economic future for all.

Since our inception, we have helpeddeliver $2.4 billion in investmentsand over 15,000 new and retainedjobs to Oswego County.

SSSSSTTTTTAFFAFFAFFAFFAFF

L. Michael Treadwell, CEcD, Executive Director

Pamela D. Caraccioli, Deputy Director

David S. Dano, Loan Manager

Shannon C. White, Marketing Manager

Teresa F. Woolson, Administrative Coordinator

Lori L. Mueller, Administrative Secretary

Doren P. Norfleet, Esq., Legal Counsel

BBBBBOOOOOARD OF DIRECTARD OF DIRECTARD OF DIRECTARD OF DIRECTARD OF DIRECTORSORSORSORSORS

George Joyce, President

Michael J. Pollock, Vice President

Gregory Kreis, Treasurer

Nancy Bellow, Secretary

Bonnie Bostian

Ronald B. Darrow

Brian Frazier

William Galloway

Edward Gilson

Thomas V. Greco

Dee C. Heckethorn

Alan Horna

Thomas McAuslan

Andrea C. McCabe

Edward Mervine Esq.

Louis R. Pettinelli

Bruce B. Phelps

Michael D. Quenville

Joseph Russo

Carol Rutledge

Eugene G. Saloga

Corte Spencer

Lloyd “Buddy” Stemple

Millard Sullivan

Steven W. Thomas

John Tooley

Gary Toth

David R. Turner

David Vickery

Joseph Wiedenbeck

EXEXEXEXEX-OFFICIO DIRECT-OFFICIO DIRECT-OFFICIO DIRECT-OFFICIO DIRECT-OFFICIO DIRECTORSORSORSORSORS

Russ Johnson, Chairman, Oswego CountyLegislature

Stephen Lyman, Oswego CountyAdministrator

Carolyn Rush, Chair, County of Oswego IDA

Kimberly Seager, Chair, Oswego CountyEconomic Development and PlanningCommittee

Deborah Stanley, President, SUNY Oswego