2023 43rd Edition: September 18 - September 22 | |
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At the Confluence of Opportunity and Responsibility
The “summer slowdown” never occurred in 2023 at the Orange County Partnership as site selector activity and tenant requirements demanded our full attention. The leads have been in diverse industry clusters, and we have been working with companies that specialize in:
- Battery manufacturing
- Food/beverage production
- Data center
- Plastic manufacturing
- Distribution
- Clean energy technology
These opportunities are fleeting – we must validate sites, infrastructure, labor, and supply chain connectivity quickly, quicker than our competition. As Economic Developers, it’s our responsibility to fight to land these projects, in order to facilitate job creation.
Given the activity this summer, a few items became very clear to me:
1. Prioritizing Workforce Development is Paramount:
Many of the leads that we’ve seen are driven by access to moderately skilled labor. We are in a position to service most industrial uses at scale we have sites that are either approved or going through the entitlement process that can accommodate requirements ranging from 50,000 square feet to 1.2 million square feet. Our site inventory is powerful, but for us to emerge out of a competitive Northeast, we must drive a dynamic workforce development and training agenda that stands out to consultants and end-users.
2. New Jersey Companies are Taking Notice of Orange County:
Recently, we’ve seen frequent project opportunities come out of New Jersey in part, driven by land constraint, high rents, and difficulty getting sites approved in a heightened NIMBY environment. We’ve prioritized building out-of-state relationships and tailoring our marketing to position Orange County as the cost-effective alternative to New Jersey, offering similar market access at a lower price per-square-foot basis. Our site advancement efforts, coupled with announcements such as Tesla occupying the Matrix Route 300 building, have provided us with momentum and market recognition that extends beyond the Hudson Valley.
3. Clean Energy and Organic Food Manufacturing Projects are Prevalent
Given New York State’s position and policy direction focusing on decarbonization and energy transformation we’ve seen an uptick in battery, solar, EV product, and climate control product manufacturing leads. At the same time, consumer demand focused on clean, organic food and beverage products has made Orange County a hot-bed for project activity. Many of these leads are driven by access to high-end food markets in Northern New Jersey, Connecticut, and New York City. Given land constraints in those markets, we’ve emerged as a strategic location to produce and distribute food products.
4. Plastic Production is on the Rise
Following our announcement of Poly Craft Industries intention to construct a 100,000-square-foot plastic printing and manufacturing facility we’ve worked on four additional plastic production leads. We are in deep discussions with two companies seeking to relocate their plastic manufacturing operations in Orange County with an opportunity to create 300 jobs between both projects. As we continue to announce “big names” in the plastic sector, the tri-state plastic market is taking notice.
While incentives aren’t a panacea, they remain the great equalizer as we compete with other states and countries to attract projects. Clearly, the Governor of the State of New York continues to focus on enhancing New York’s competitive edge through establishing an array of funding and incentive programs that support economic development, site development, housing, workforce development and clean energy. These programs are key tools in our toolbelt as economic developers.
We’re enthusiastic about the project opportunities that are looking at Orange County. As spec projects become increasingly difficult to finance we expect a slight slow-down in vertical speculative construction and a shift to more build-to-suit driven construction activity. The good news is that the market is in expansion mode as sites continue to be advanced in the approval process, we’re confident that we’ll have tenants continuing to explore the market.
My very best,
Maureen Halahan
President & CEO
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From left to right: Robert Sanchez, President & CEO of Orange & Rockland and Christopher Capone, President & CEO of Central Hudson | From left to right: Melissa Cobuzzi - M&R Energy Resources Corp.; Alex Betke - Brown & Weinraub; Jay Goodman - Couch White; Rebecca Filbey - NYSERDA and Peter Mazsi - Core Development Group | |
Alliance for Balanced Growth Tackles New York’s Evolving Green Energy Future | |
The Alliance for Balanced Growth at is recent second quarter session entitled “Construction Development in the New Clean Energy Economy” tackled the complex and sometimes confusing seismic shift of New York State’s energy grid from fossil fuels to renewable green energy sources—solar, wind, biomass, water and geothermal. Participating panelists at the program held at The Country Club at Otterkill in Campbell Hall for the most part agreed that the state’s ambitious climate action goals are attainable, but perhaps not on the timeline state and environmental advocates are hoping for.
The ABG and The Orange County Partnership assembled two panels of utility executives, energy developers and attorneys to discuss the progress made in converting New York State’s energy industry to green technologies, the cost of those efforts and the likelihood that the state’s climate goals can be achieved over the next few years and following decades.
The cataclysmic changes in the energy sector stems from the Climate Leadership and Community Protection Act (Climate Act), which was signed into law on July 18, 2019. New York State’s Climate Act is among the most ambitious climate laws in the nation and requires New York to reduce economy-wide greenhouse gas emissions 40% by 2030 and no less than 85% by 2050 from 1990 levels.
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Orange County Economic Summit Focuses on Growing
Tourism, Hospitality & Film Production Sectors
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More than 300 people attended the second annual Orange County Economic Summit on Friday, Sept. 15 that focused on the county’s high-growth tourism, hospitality and film production industries.
The program, held at Orange Hall at the SUNY Orange campus in Middletown, featured presentations and panel discussions by a host of political and economic development leaders, as well as local and national experts in the respective tourism, hospitality and film production industries.
Orange County Director of Economic Development Steve Gross began the summit program by stating that an “influx of tourists has brought about a myriad of economic benefits that ripple through our community, creating jobs, stimulating local business and boosting our overall economy.”
His comments were right on the market and well-timed. New York Gov. Kathy Hochul announced just two days earlier that New York State welcomed a record 291.5 million visitors in 2022, the largest number of visitors in New York State’s history, generating more than $78.6 billion in direct spending and $123 billion in total economic impact. These figures represent staggering increases over 2021 and surpassed the previous records set in 2019, prior to the COVID-19 pandemic.
Tourism is very big business in Orange County, according to the latest data. Orange County Director of Tourism & Film Amanda Dana at the Orange County Summit reported that according to state data, tourism had a $1.1-billion economic impact in Orange County in 2022, generating $394 million in labor employment income; $95 million in local taxes and another $59 million in state taxes.
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From left to right: Former Orange County Executive, Edward A. Diana; OC Legislator, Katie Bonelli; OC Legislator, Robert Sassi & Maureen Halahan, President & CEO of the Orange County Partnership | From left to right: Orange County Executive, Steve Neuhaus and Director of Economic Development, Steve Gross | | |
Kelly Naughton, Orange County Partnership's 2023 'Woman of Achievement in Economic Development' Honoree | |
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Veteran Real Estate Attorney to Be Honored
As 2023 ‘Woman of Achievement in Economic Development’ on Oct. 3
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The Orange County Partnership has announced that Kelly Naughton, partner at the Goshen law firm Naughton & Torre, LLP, has been named the organization’s 2023 'Woman of Achievement in Economic Development' honoree.
Naughton, a resident of The Town of Wallkill, will receive her award at the Orange County Partnership’s Investor Breakfast on Tuesday, Oct. 3 at The Barn at Villa Venezia in Middletown. The event will begin at 8 a.m. with the program starting at 8:30 a.m.
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Peckham Industries Acquires E. Tetz & Sons, Inc. | |
Peckham Industries, Inc. announced earlier this summer the company had acquired E. Tetz & Sons, Inc. of Middletown, and its subsidiary, Tetz Asphalt LLC.
Collectively known as “Tetz,” the company is a leading aggregate, ready-mix concrete and hot-mix asphalt producer, serving customers in the Hudson Valley region with more than 130 employees.
The acquisition will expand Brewster, NY-based Peckham’s opportunities to serve customers in this fast-growing market. Northern Edge Advisors served as the exclusive financial advisor to the Tetz Family for this transaction. No financial terms of the transaction were disclosed.
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The E. Tetz & Sons acquisition will expand Brewster, NY-based Peckham’s opportunities to serve customers in the Hudson Valley region. | | |
Dana Distributors - Hatfield Lane in Goshen, NY | Fred Dana, President of Dana Distributors | |
Dana Distributors Expands Presence to Westchester-Putnam Counties | |
Goshen-based Dana Distributors recently expanded its presence in the Hudson Valley, acquiring Bertoline & Sons, a prominent wholesale distributor of domestic, craft and imported beers, fine wines, spirits and non-alcoholic products headquartered in the City of Peekskill in Westchester County.
The deal expands Dana Distributors operations to Westchester and Putnam counties. Dana, which began operations in 1970 out of the old Sweeny Bottling Works building in Middletown, has grown its operations over the years and is currently headquartered at 52 Hatfield Lane in Goshen.
Dana Distributors is a family-owned and operated business that distributes a wide variety of beverages, including Budweiser, Michelob, Bud Light, Stella Artois, Snapple, Canada Dry, Polar and many more. They also carry a wide selection of craft beers, hard seltzers, and other malt beverages. In addition to beer and soft drinks, Dana Distributors also distributes wine, liquor and ciders. The company sells more than three million cases of various beverages a year.
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Industrial Markets Post Sluggish Results;
‘Just in Time’ Stock Strategy Returning
Commercial brokerage firm JLL reported recently that rising inflation and economic uncertainties have resulted in the weakening of the once robust industrial real estate market.
JLL reported asking rates for the second quarter of this year at $9.48 per-square-foot up 18.4% year-over-year. However, JLL expects the rate of growth for asking rental rates to start slowing significantly. Absorption tumbled 41.3% year-over-year as only 61.9 million square feet was absorbed, bringing the year-to-date net absorption to 121.1 million square feet. With record amounts of new product being delivered to the market and lagging pre-leasing rates in recent quarters, the vacancy rate climbed to 4.2% at the end of the second quarter.
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Department of Energy Provides $15.5 Billion
To Support Retooling of Existing Plants to EV
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The U.S. Department of Energy announced on Aug. 31 a $15.5-billion package of funding and loans primarily focused on retooling existing factories for the transition to electric vehicles (EVs)—supporting good jobs and a just transition to EVs.
The funding includes making available $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host these manufacturing facilities. In the Domestic Conversion Grant Program, higher scores will be given to projects that are likely to retain collective bargaining agreements and/or those that have an existing high-quality, high-wage hourly production workforce, such as applicants that currently pay top quartile wages in their industry.
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Tesla, the renowned electric car manufacturer, has chosen Orange County, NY as the destination for their brand-new regional distribution facility!
The Orange County Partnership is ecstatic to announce that Tesla will be taking up residence in a state-of-the-art, 927,000 square foot spec building, developed by the accomplished Matrix Development Group in the Town of Newburgh. This center will serve as the hub for Tesla's East Coast vehicle parts distribution.
This venture will not only create numerous job opportunities for our community but also contribute to the development of a greener, more sustainable future. Together, we are taking significant strides towards reducing carbon emissions and embracing renewable energy solutions.
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You are invited to attend Poly Craft Industries
Ground Breaking Ceremony!
Wednesday, September 20, 2023
9:00 AM - 11:00 AM
30-60 Industrial Place | Middletown, NY
The Orange County Partnership is pleased to announce that Poly Craft Industries, an advanced manufacturer, and printer of laminated and non-laminated plastic products will be holding a ground breaking ceremony in the City of Middletown. The project will be located on Industrial Place, a key industrial corridor in the City of Middletown. Poly Craft manufactures plastic products for nationally recognized brands, such as Jelly Belly, Serta Mattress, and Whole Foods. The approximately $30 million project will create approximately 100 good paying jobs.
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Woodbury Common Embarks on Exciting Expansion: 100,000 SF Retail, Hotel, and Jobs Galore
Woodbury Common, the iconic shopping destination, is gearing up for a grand transformation with a colossal expansion plan. This week marks the kickoff as the first Planning Board Meeting sets the stage for this exciting tourism expansion development. Anticipated highlights include 100,000 square feet of new retail space, a state-of-the-art parking garage, and a lavish 100-room hotel.
The Orange County Partnership and the vibrant business community are rallying behind this ambitious project, recognizing its potential to elevate the region's economic landscape. With the creation of over 100 additional jobs and a staggering $300 million in capital investment, this expansion promises to be a game-changer for Woodbury Common and the local economy. Stay tuned for exciting updates as this project takes shape!
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FEATURED PROPERTY OF THE MONTH: | |
- Just 1.2 miles from I-84, 18 Leonards Drive in the Town of Montgomery is a strategic location for industrial, food and beverage and manufacturing companies seeking proximity to the NY-Metro area.
- The Town of Montgomery is home to Medline Industries, Amazon, Cardinal Health, McKesson, Mondelez International, PharmaCann and several other big-name companies.
- Need speed to market? This Class A space is available immediately.
Looking to relocate or expand your company? Reach out to our Vice President of Business Attraction, Conor Eckert today!
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SPECIAL THANKS TO OUR MEDIA SPONSOR: | |
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