AUBURN EMPIRE ZONE DEVELOPMENT POLICY
Section I Overview
The Empire Zone Program provides powerful economic incentives for growing, attracting and incubating companies. The strategic basis upon which zone implementation policy is based includes citywide comprehensive planning and zoning, focus on low and moderate income neighborhoods and block groups using census data and Federal Housing and Urban Development definitions and guidelines. Using these criteria the Auburn Zone Administrative Board (AZAB) is able to focus Zone incentives strategically in order to revitalize the most distressed areas of the community. In addition, the AZAB has sought a regional perspective to identify industrial clusters active in the region that have the potential for global competitiveness.
The City of Auburn faces many opportunities and challenges as the local market adapts to globalization. The City has a mature economy based on agriculture and manufacturing. While the national percentage continues to drop, manufacturers located in the City of Auburn employ sixteen (16) percent of Auburn’s workforce. This is six (6) percent higher than New York State’s percentage and two (2) percent higher than the national average.
Auburn is an established, built-out city with a low cost of living and affordable housing stock. The size (8.4 square miles) and age of the City requires adaptive reuse of existing structures. This can be a strength and weakness as a place to do business. The reuse of existing buildings can mitigate the costs of building new and encourages best practices for land use (reuse of infrastructure, preservation of open space, etc.). Though, often times, large and mature businesses seek out greenfields for development of new structures.
The City of Auburn is located within eighty-five (85) miles of twenty-eight (28) colleges and universities. This is an advantage in that young educated individuals come to the region and are available to recruit. The competitive disadvantage of this is that Auburn has a difficult time retaining the educated youth of the area and it does not boast its own four (4) year institution. The City often is witness to the flight of its own youth, as they leave for college and do not return. The Empire Zone Program is and will continue to be an effective tool for reversing the trend that Auburn and other New York municipalities face in attracting businesses and minds ready to fully participate in the knowledge-based economy.
The Auburn Empire Zone Administrative Board has identified nine (9) community planning documents with economic and community development components that reference and inform actions and implementation of relevance to Empire Zone planning and policy.
The nine (9) documents are:
1. Cayuga County Strategic Economic Development Plan (SEDP), June 2000 – Provides a detailed Strengths, Weakness, Opportunities, Threats (SWOT) analysis. “Cayuga County’s Economic Development Plan focuses on three crucial elements of the county’s economy – the Work force, the Business Environment, and the Community’s Attitude toward economic development. Each component of the plans action program can fit within these elements; each can be tied back to a specific goal and objective that will meet the County’s overarching goal of a strong and vital economy.” – SEDP “Goals, Objectives and Action Plan” III-1
2. Metropolitan Development Association’s (MDA) Essential New York Initiative: Transforming Central Upstate to a Knowledge-based Economy 2004 - The Essential New York Initiative spells out the following six strategies for transforming Central New York into a highly competitive knowledge-based economy: “(1) Aggressively Targeting Middle –Market Companies With High Potential for Expansion and Supporting Existing Industries; (2) Optimizing Key Industry Clusters; (3) Creating, Retaining, and Attracting Talent in Central Upstate New York; (4) Leveraging Colleges and Universities as Economic and Community Growth Engines; (5) Encourage the Creation and Growth of a Stronger Entrepreneurial Culture; and (6) Developing a Broader Regional Consciousness.” The document
identifies key industrial clusters, which the AZAB uses for targeting businesses.
3. The Downtown Auburn Economy: Policy for Growth 2004 – The Auburn Business Improvement District (BID) prepared this document which reveals the consumer market analysis performed and ways in which the BID plans to enhance the economic viability and quality of life of the community. “Downtowns give a city its identity. A Downtown’s health affects the attitudes of visitors and residents alike…. If Downtown businesses pool their resources, they will be better equipped to compete in the marketplace.” This document also explains the retail leakage of $72 million from Cayuga County and provides evidence that when retail businesses locate in the City the leakage shrinks.
4. Cayuga County Convention and Visitors Bureau 2004 Annual Report on Tourism – Mission Statement – “The mission of the Cayuga County Convention and Visitors Bureau is to promote the tourism and convention industry in Cayuga County, increase visitors to the County, and ultimately stimulate economic growth in the County.” The annual report provides figures on tourism in the area and outlines goals for increasing tourism revenue in the future. This is particularly relevant as tourism is important to Auburn’s economy and is a target business type.
5. Five Points Neighborhood Plan 2002 – This document outlines specific plans for the neighborhood located in Empire Zone Area 1. The purpose of the plan is to improve the infrastructure and housing stock in this mixed-use neighborhood commercial neighborhood.
6. Owasco-Osborne Neighborhood Plan 2002 – This document outlines specific plans for the neighborhood located in the Empire Zone Area 1. The plan focuses on infrastructure and housing stock improvements, along with utilizing the Owasco River for commercial and recreation use.
7. Dunn & McCarthy West and Garden Street Area Neighborhood Design and Planning Study 2003 – This document outlines very specific plans for the neighborhood located in Empire Zone Area 2. The purpose of the plan is to significantly improve the infrastructure of the area and increase the aesthetics of the surrounding commercial and residential neighborhood.
8. City of Auburn 2005-2009 Consolidated plan for CDBG Program – The Consolidated Plan outlines long-term and short-term economic development objectives. The long-term objectives support the implementation of the SEDP and the creation of a venture capital fund. Short-term goals are focused on continuing micro-enterprise assistance and supporting the BID.
9. City Code of the City of Auburn Zoning Ordinance – The new targeted distinct and separate contiguous areas cover all commercially and industrially zoned parcels in the two main census tracts (413, 419). The City of Auburn Zoning Ordinance covers the permitted uses of the appropriate zoning.
The number one priority of the Empire Zone Program in Auburn is the creation of well paying jobs. This priority is supported by the above documents and is highlighted in every section of this document. Job creation has been, and will continue to be the most important priority for the City of Auburn.
Section II Goals and Strategies
The purpose of the Auburn Empire Zone is to support actions, activities and projects that make the greatest contribution to a viable economy and support real growth as defined by capital investment, new and higher paying job opportunities and enhanced the tax base.
This goal will be achieved when:
· Existing businesses expand through new job creation and private investment and
· New businesses are attracted to the City of Auburn’s distressed census tract and
adjacent tracts and
· The taxable value of properties located in the distressed census tract and tracts
immediately adjacent increase.
The staff of the Auburn Empire Zone Board is proactive in providing support to businesses. Staff will continue the practice of visiting at least seventy-five (75) zone certified businesses per year. These visits help foster and continue the good relationships with businesses around the City have with the Zone Board staff. These visits often result in staff packaging financial support for businesses, averaging two (2) per quarter, by utilizing the subject businesses’ capital leverage with public funds such as: low-interest micro enterprise loans, home repair loans, and façade improvement loans, to name a few. It has been and will continue to be the practice of the City of Auburn to include other programs and incentives to help achieve the Zone Development Plan’s goals.
Auburn Empire Zone will target facilities and businesses that have job creation potential with pay levels at a minimum of 145% of minimum wage, and with career and financial growth potential. Priority will also be given to the distressed central and neighborhood commercial business districts, as identified in the community planning documents. Target businesses and projects include those that will contribute positively to the restoration and revitalization of the City’s Neighborhoods and Central Business District.
Open Space Protection
The Auburn Empire Zone Board has and will continue to ensure that the program will protect open space and environmentally sensitive areas by identifying only areas located within the City of Auburn for Zone area allocation to maximize the adaptable reuse of existing structures. Municipal water and sewer currently serve all properties with in the City. By allocating all zone area within the City limits, the ZAB insures that the program will not be used to encourage Greenfield development or suburban sprawl.
Participation by Not-For-Profit Business Corporations
The staff of the AZAB will solicit input and support of the staff and programs of the Syracuse Regional Office of Empire State Development each time a business prospect or existing business requests assistance with location or expansion in the Auburn Empire Zone. Prior to identification Auburn’s Economic Development staff will encourage participants to utilize the resources and services of the participating not-for-profits identified in Section V.
Auburn’s Economic Development staff participates and/or attends board meetings of the Auburn Downtown Business Improvement District, the Cayuga County Convention and Visitors Bureau, Women’s Business Network, Small Business Revolving Loan Committee, Auburn Industrial Development Authority, Auburn Local Development Corporation, and the Team for Economic Growth. Through the input and support of volunteers and staff participating with the above listed organizations, not-for-profit business organizations assist in the creation and implementation of Empire Zone Economic Development Plan.
Marketing Strategy to Promote Business Development in the Zone
As a small city, targeted and direct outreach to business owners has proven to be the most cost effective method to promote business development in the zone. The City’s website www.ci.auburn.ny.us has proven to be a successful tool providing information to individuals interested in Auburn, New York. Zone employees work closely with real estate agents and project developers to identify available properties and to match tenants. Individuals that own property and have available space make a point of letting zone staff know the
details about the available space. Zone staff subscribes to an online database of companies through www.hoovers.com. Direct calls to targeted company representatives are initiated by staff.
The City of Auburn funds small business development classes at Cornell University Cooperative Extension of Cayuga County with an annual grant of $25,000 and makes zone staff available to speak to each class member. Print advertising has focused on attracting the attention of technically minded entrepreneurs through ads in Wired Magazine and Cornell University Alumni News. The City has budgeted approximately $10,000 per year for the past few years. Zone staff is participating with Cornell University’s CEE Program to match technologies emerging from Cornell University with Auburn based business owners and entrepreneurs ready to advance great new ideas.
The Empire Zones Program provides needed support and financial incentives to key economic development locations within the City of Auburn. The goal of the application of these incentives is to promote the City’s future economic growth and development in those areas that have the greatest potential to generate renewed economic development.
Key emphasis is given to the creation of the maximum number of jobs at the highest possible level of pay by companies that manufacture goods for export from Auburn and from New York State. It must be noted that the Auburn Empire Zone boundaries were established and designated to the key locations referenced in the reports listed above before the neighborhood reports were generated. The three (3) neighborhood plans reflect the desires of residents and citizens rather than research documents.
Top priority and marketing efforts for the use of Empire Zone benefits are given to the
· Retention of existing businesses with special attention to manufacturers and sole
source providers of goods and services.
· Expansion of existing businesses with special attention to manufacturers.
· Incubation of new business start-ups by area residents with special attention given to
manufacturers and entrepreneurs launching sole source enterprises.
· Attraction of new businesses with special attention to manufacturers and suppliers and
customers of existing manufacturers with potential for job creation.
· Re-adaptation of existing structures
Goals for Area 1
Goal: Downtown Improvements and Waterfront Redevelopment
Strategies: Promote business investment and expansion through infrastructure improvements
downtown.
· Office of Planning and Economic Development (OPED) has secured over $2.4 million
dollars from the Department of Housing and Urban Development for Downtown and
Waterfront Redevelopment and approximately $500,000 in various state and federal
grants.
· OPED held several public workshops and has collaborated with downtown businesses,
many zone certified, to work on a strategy for improvement downtown.
· The first phase of this project was the reopening of the State Street Pedestrian Mall to
vehicular traffic and significant hardscape and landscape improvements.
· OPED worked with local design firms to develop plans for waterfront park
improvements on the Owasco River in downtown. Plans have also been developed to
install brick pavers for a portion of sidewalks downtown, plant additional trees
downtown, and improve the aging Exchange Street Mall in downtown Auburn.
Performance Measures: The downtown improvements project is anticipated to begin
construction the in next six (6) months.In the next 1-2 years the waterfront
redevelopment project will begin construction and be complete.The BID has
estimated the project could attract $500,000 of Main Street development.
Goal: Develop a Market Study for Downtown Businesses
Strategies: Target specific businesses that could locate in the Downtown Area
· OPED worked with the Auburn Downtown Business Improvement District (BID) to
select The Buxton Company, Inc., a real estate agent/manager management consulting
service to analyze Auburn’s downtown market and identify a pool of companies that
match Auburn’s psychographics and historically located in central business districts.
· The BID will focus on attraction offers to entice businesses.
Performance Measures: Attract one (1) national business within the next year.
Goal: Facilitate Business Start-ups
Strategies: Assist start-up business with location and assistance
· OPED has worked extensively providing assistance to start-up businesses
entrepreneurs.
· The City of Auburn offers the Small Business Assistance Program (SBAP), through
our Community Development Block Grant (CDBG) funding. The SBAP offers gap
financing for small businesses, which include start-ups, which help spur job growth and
retention.
Performance Measures: Assist with one (1) start up business per year.
Goals for Area 2
Goal: Facilitate Attraction of Value Added Businesses
Strategies: Attract businesses to locate within the Empire Zone
· Area 2 has several vacant parcels and building that could be utilized for industrial
development.
· Continue to market these opportunities through the City of Auburn and the Empire
Zone Program.
· Market the speed of permitting and access to the available benefits
Performance Measures: Host a visit by business representatives from outside the Central
New York area.
Goal: Facilitate Business Start-ups
Strategies: Assist start-up business with location and assistance
· OPED has worked extensively providing assistance to start-up businesses
entrepreneurs.
· The City of Auburn offers the Small Business Assistance Program (SBAP), through
our Community Development Block Grant (CDBG) funding. The SBAP offers gap
financing for small businesses, which include start-ups, which help spur job growth and
retention.
Performance Measures: Assist with one (1) start up business per year.
Section III Target Areas/Infrastructure Development
The AZAB recognizes Auburn’s history of manufacturing, small businesses, and desire for a vibrant Central Business District. Many of the documents presented enforce the need of Auburn to return to its roots and in turn move forward with new industry. The AZAB’s strategy is to focus on development within the municipal boundaries of the City of Auburn. With this focus the AZAB directs zone benefits to companies that take advantage of existing infrastructure, reuse of buildings, aesthetic enhancements, improvement of neighborhood commercial and the Central Business District.
As indicated by the new Zones Map the City of Auburn is proposing two (2) distinct and separate contiguous areas. Certain previously designated areas were not included within the distinct and separate contiguous areas because there simply was not enough acreage available to accommodate such lands within the 1280 acres available for distinct and separate contiguous areas.
The AZAB is promoting new development patterns to take advantage of existing public sewer and water infrastructure. Public sewer and water do not serve many of the previously designated areas from on the Zone Map. Development of these areas would require significant infrastructure improvements. Public sewer and water already serve the new target areas and large portions of new areas are served by redundant telecommunications infrastructure.
The geographic configuration of the zone was selected to meet several criteria. The proposed target areas have been returned to the City of Auburn and therefore the distinct and separate contiguous areas are located within the municipal boundaries. The proposed distinct and separate contiguous areas are mostly located along the City’s major thoroughfares and include all areas zoned commercial and industrial within the distressed and contiguous census tracts.
The following two (2) distinct and separate contiguous areas have been identified to allocate Empire Zone area:
1. Auburn’s Distressed Census Tract & Central Business District
2. Auburn’s Northwest Commercial and Industrial area.
Distressed Census Tract & Central Business District (Area 1) has been selected because this area has seen economic resurgence with investments made by Gould’s Pumps, Auburn Armature, Currier Plastics, Emcom, Schott-Fostec, and Bombardier/Auburn Technology. These six companies employ over 800 individuals. This area covers census tract 419, which meets the Federal definition of distressed census tract due to a poverty rate of 27.46% and an unemployment rate of 8.22%. The eastern portion of this distressed census tract includes Auburn’s Central Business District (ACBD) has been selected because the Downtown has and continues to experience slow steady revitalization.
The City of Auburn has committed resource in the form of infrastructure improvements and investments by dedicating $3 Million to invest in six (6) capital improvement projects which include re-opening State Street Mall to one way traffic (project completed November 2004), construction of a park along the Owasco River, Exchange Street Pedestrian Mall redevelopment, Streetscape improvements to Genesee, North and South Streets with in the Auburn Central Business District (ACBD), greening of the Loop Road, and façade improvements. Downtown property values are not appreciating. Return on investment for entrepreneurs are less than other opportunities in the national and global marketplace. The incentives offered by the Empire Zones Program have successfully stimulated investment in blighted
and underutilized buildings. Renovated buildings have attracted medical, legal, and business service uses, as well as high tech manufacturing and prototyping companies. Additionally, the City of Auburn provides small business revolving loans and a façade improvement program. Municipal water and sewer serve all of the properties in this area. Auburn’s Central Business District is also served by redundant telecommunication infrastructure.
This area was selected because:
· It captures existing designated acreage.
· It utilizes areas with existing infrastructure.
· It accommodates expected business expansion.
Types of businesses currently in this area are manufacturers at the west end of the area. The east portion of this area is of the service and commercial nature, many medical and law offices and restaurants and specialty retail. Current service and commercial business are finding success in their locations though the Central Business District has a high vacancy rate. This leaves open the possibility for additional commercial activity, which is targeted for this area.
Auburn’s Northwest Commercial and Industrial Area (Area 2) has been selected because it is an area of economic resurgence, located in census tracts that are immediately adjacent to the distressed tract and include census block groups where the more than 50% of the households have low or moderate income. This manufacturing area includes Technology Park, NUCOR Steel, Hammond and Irving, McQuay International, Weaver Machine, Northbrook Farms, Auburn Vacuum Forming, Bo-Mer, Inmech, and Corrosion Control. Properties included in this portion of the Empire Zone are zoned commercial or industrial. This area of the City is home to companies that are currently zone certified and have the highest potential to continue to grow new living wage jobs. Municipal water and sewer serve all
of the properties in this area. The Technology Park area is also served by redundant telecommunication infrastructures.
This area was selected because:
· It captures existing designated acreage.
· It utilizes areas with existing infrastructure.
· It accommodates expected business expansion.
Types of businesses currently in this area are manufacturers and industrial suppliers. Most companies have current capacity within their current buildings to accommodate growth as well as land they currently own to expand upon. There are a few parcels available for development in 8-20 acre sizes. Land and buildings are affordable in this area. The assessed value for vacant land in the City served by water & sewer is $17,500/acre. The City of Auburn is targeting manufacturers for this area.
Inventory of real property located within the proposed economic development zone that is owned by the City of Auburn:
Address |
Tax Parcel Number |
Current Use |
4100 Tech Park Blvd |
108.65-1-4 |
Technology Park (Industrial Park) |
296 State Street |
108.67–1-20 |
Taken for back taxes |
2 Commerce Way |
108.73-1-1.12 |
Technology Park (Industrial Park) |
4 Commerce Way |
108.73-1-1.123 |
Technology Park (Industrial Park) |
3 Commerce Way |
108.73-1-1.14 |
Technology Park (Industrial Park) |
4200 Tech Park Blvd |
108.73-1-1.161 |
Technology Park (Industrial Park) |
4500 Tech Park Blvd |
108.73-1-1.177 |
Technology Park (Industrial Park) |
1-3 Allen Street |
108.81-1-5.1 |
Falcon Park Baseball Stadium Parking |
141 N. Division Street |
108.81-1-1-5.23 |
Falcon Park Baseball Stadium Parking |
1-15 Pulaski Street |
108.84-1-29.11 |
Taken for back taxes |
202 State Street |
115.28-1-40 |
Taken for back taxes |
204 State Street |
115.28-1-41 |
Taken for back taxes |
60 Canoga Street |
115.32-1-1 |
Warehouse |
40-46 Frazee Street |
115.41-1-1 |
Taken for back taxes |
41-55 Washington Street |
115.51-1-31 |
Housing for Traffic Control Equipment |
15-17 Washington Street |
115.59-1-65 |
Taken for back taxes |
54 LaFayette Place |
115.65-1-50.1 |
Taken for back taxes |
18 Jefferson Street |
115.67-1-37 |
Taken for back taxes |
7 Orchard Street |
115.67-1-39 |
Taken for back taxes |
62 Franklin Street |
116.31-2-2 |
Taken for back taxes |
16 Arterial East |
116.45-1-50 |
Police/Fire Station |
18 Arterial East |
116.45-1-51.2 |
Police/Fire Station |
5-13 Seminary Ave. |
116.45-1-54 |
Municipal Parking Lot |
59 Owasco Street |
116.54-2-31 |
Taken for back taxes |
61 Owasco Street |
116.54-2-32 |
Taken for back taxes |
There are no properties located within the proposed economic development zone that are owned by the State of New York.
Section IV Target Businesses and Strategic Industries
Attraction of new businesses to the Auburn EZP will fulfill the goal of the SEDP to support a strong, vital, and sustainable economy. Business attraction efforts will continue to focus on market sectors that are compatible with existing businesses, will consider employer job numbers and wage scales and be sensitive to demands for natural resources like water and zoning and land use limitations.
Strategic Industries
Pursuant to GML Section 957 (q) (vi), the City of Auburn Empire Zone shall consider a business to be a strategic industry or supply chain business if such business meets the following criteria:
Key industrial clusters compatible with Auburn’s existing economic base, sector experience and expertise include the following:
· Advanced and precision metal forming, shaping and finishing
· Medical implement manufacturers
· Information technology research, support, service and distribution
· Electronic and fiber-optic components
· Packaging
· Smart Energy/distributed generation equipment manufacture
· Value added agriculture and food processing
The following list of strategic industries refers to "traded” businesses, wealth creating businesses, and/or "at risk" businesses within the City of Auburn.~For purposes of this plan, "traded" businesses includes those where at least 60% of their product/service is sold, delivered or provided to customers/clients that are outside of Cayuga County. The list of strategic industries does not include retail or local service operations that are captive to the local market. At-risk businesses are those that are “at-risk” of locating or relocating outside of New York State.
Strategic industry supply chain businesses are also considered part of the above-identified strategic industries if the business is either:
· A major supplier of a product or material essential to the primary operations of a
strategic business, or
· A major provider of a unique or specialized service that adds significant economic
value to the primary operations of a strategic business, or
· A business that is a major customer or buyer of the primary output of such strategic
business.
There are other target businesses within the City of Auburn that are very important to the economic vitality of the City:
· Medical Service Providers and specialist
· Tourism Related Neighborhood and Commercial Service and Retail Business
Precision Metal Forming, Medical Implement Manufacture, Information Technology, Electronic and Fiber-Optic Components
Inclusion of the first four (4) industry clusters listed above was informed by the concentration of these types of businesses currently located in Auburn and the twelve county central upstate region as outlined in the MDA’s Initiative. As Auburn hosts a cohort of individuals skilled and trained in the areas required by these industries, new businesses such as Inmech Fabrication and Corrosion Control, which receive substantial revenues from outside of New York State have recently located in Auburn near the Nucor Steel Mill and small machine tool shops that will subcontract parts fabrication from those businesses.
The majority of Auburn’s manufacturing companies make parts for larger manufacturers in the region. For example, the plastics molders and fiber-optics manufacturers supply Welch Allyn and Goulds; machine metal companies sub-contract for Borge-Warner, New Venture Gear and Lockheed Martin. These in industry clusters have historically seen job growth in Auburn and will continue to be targeted as some of the aforementioned companies are in expansion mode.
A formative cluster of information technology companies serves medical offices in a five (5) state region. Efforts to assist and attract IT firms fits well with the State supported pre-permitted CHIP FAB site in Aurelius and the NASA Regional Application Center at Cayuga Community College.
Packaging
The MDA’s initiative indicates that packaging is a key industrial cluster with potential for global competitiveness. A cluster of blow injection and vacuum forming plastics manufactures is located in the City of Auburn. Some of Auburn’s examples are Currier Plastics Autech Plastics, Bo-Mer Plastics, Auburn Vacuum Forming, DeWitt Plastics, and RPM Industries employ over two hundred and forty (240) employees. These companies make packaging for medical implements, auto parts, shampoo and baby wipes, syrup, and liners for coffins.
Paperboard and cardboard recycler; Mulcoor and pallet maker; Finger Lakes Wood products are members of this sector, along with graphic artist and printers; Coburn Design, Jacobs Press, Finger Lakes Press, Seward Avenue Printing, and Mack Studios.
Smart Energy/Distributed Generation Equipment Manufacture
Cornell University reports that Syracuse’s environmental systems industry (firms that specialize in indoor environmental control) is an example of a sector that has developed to a “critical mass” level. Firms located in Auburn, which lend their weight to this mass, include Beardsley Design, McQuay International and Emcom. These firms have successfully partnered with the City of Auburn to create a municipal power agency to implement creative and affordable strategies to generate gas and electric power. Hydro, geothermal, bio-digester and wind applications have all been implemented successfully in Auburn to lower heating and cooling costs and create opportunities for additional companies to take advantage of local knowledge and expertise.
Value Added Agriculture and Food Processing
As mentioned the Cayuga County SEDP, agriculture is the largest net wealth earner in Cayuga County. Value added agriculture and food processing businesses such as Caro-Vail and New Hope Mills have located in Auburn recently to take advantage of the proximity to farms. These companies have gone further and have made investments and improvements to blighted and underutilized buildings.
Target businesses within the City of Auburn that are very important to the economic vitality of the City.
Medical Service Providers and Specialists
Auburn hosts an aging cohort seniors growing faster than the national average. Cayuga County’s only hospital is located in Auburn. As a sub-regional safety net provider of medical services, Auburn residents demand suppliers of services. The hospital has been challenged to bring appropriate medical specialists to the community. Recently and due to the aging population, medical providers have been purchasing vacant and dilapidated properties in downtown and distressed census tract and have invested and rehabilitated buildings in the downtown area. Doctors and medical service providers provide living wage employment.
Tourism Related Neighborhood and Commercial Service and Retail Business
Much of Auburn’s central business district is located in the City’s distressed census tract. Due to post urban renewal and competition by malls, the downtown area has suffered decades of disinvestments. There are few business types willing or able to locate and invest in Auburn’s downtown or in the distressed tract as the market does not consistently provide an attractive return on investment. Owners of retail, service and tourism related businesses have been willing to enhance the traditional neighborhood and central business districts with their stores.
According to the Cayuga County Convention and Visitors Bureau (CCCVB) 2004 Annual Report, the economic impact measured by visitor spending on tourism in Cayuga County was $51.16 million. Tourism employs 778 individuals Countywide and generates $2.05 million in New York State taxes. Auburn hosts a number of historic resources including Harriet Tubman’s and William Seward’s Homes, The Willard Chapel’s interior designed by Tiffany, the home and laboratory of Theodore Case (who developed and commercialized sound on film), the Eberson designed Shine Theater, and the Schweinfurth Art Center.
These historic resources together with lakes, boating, hiking, wine trails and a minor league baseball team, indicates tourism is growing as a wealth generator. With the exception of the Tubman Home, all of the historic sites are located in downtown or in the distressed census tract. Continued growth of tourism depends upon the development of retail and hospitality type businesses. CCCVB exit interviews indicate that tourist would stay longer and spend more if there were more upscale restaurants, downtown books stores, specialty shopping, spas, and live entertainment.
Starting at page 22 in the Downtown Auburn BID’s Policy for Growth, the “Pull Factor” for retail is defined and quantified at $78 million. This represents the value of retail sales leaving Auburn and Cayuga County. As a distressed census tract zone and with downtown as the anchor of the eastern end of the tract, attracting retailers to this disadvantaged location is difficult. In addition to downtown five (5) neighborhood commercial areas outlined in the City of Auburn’s CDBG One Year Action Plan 2001-2002 represent areas in which retail and service businesses have been demanded by resident at public meetings; Five Points, Owasco-Osborne, State Street, North Street, Genesee Street, and Downtown. Neighborhood plans have been completed for three (3) of the five (5)
neighborhoods mentioned in the CDBG plan. Empire Zone had been designated in these neighborhoods prior to the completion of the neighborhood plans. Each neighborhood is surrounded by low- and moderate-income residences and is located within the distressed census tract or in immediately adjacent census tracts.
Neighborhood commercial zoning allows only retail and service uses. In the Five-Points Neighborhood, the only sign maker in the City started a business a few years ago. Start-up costs are affordable in these areas, but without the benefits of the Empire Zone, businesses are unable to add employees or make continued investment in buildings and equipment. Small business owners report that the benefits of the Zone program, mostly sales tax savings, allow them to purchase advertising to attract customers and grow and subsequently grow their business.
Targeting for Area 1 and Area 2
Targeted business in each of the zones relies on the key industrial clusters. Though each zone has very distinct types of targeted and strategic businesses.
Area 1 encompasses our central business district and our distressed census tract. Tourism Related Neighborhood and Commercial Service and Retail Business are a primary target in the central business district. This sector is important to the central business district and the residential neighborhoods that reside within Area 1. On the western section of Area 1 the majority of businesses that are in place are part of the MDA’s strategic industry clusters:
· Advanced and precision metal forming, shaping and finishing
· Medical implement manufacturers
· Information technology research, support, service and distribution
· Electronic and fiber-optic components
· Packaging
Target Businesses:
· Medical Service Providers and specialists
· Tourism Related Neighborhood and Commercial Service and Retail Business
Businesses that are targeted for growth in Area 1 would continue to be the Tourism Related Neighborhood and Commercial Service and Retail Businesses in the central business district. The central business district has seen a target in growth for places such as the Auburn Public Theatre, which is a promotion for tourism and neighborhood commercial sales in downtown Auburn. The City of Auburn is also focusing on targeting Service and Retail Business for the large 14,000 square foot abandoned Kalet’s Department store in downtown Auburn.
On the western section of Area 1, mostly located in our distressed census tract, targeted businesses for growth and expansion would focus on Smart Energy/distributed generation equipment manufacturing and Value added agriculture and food processing.
Area 2 is the City of Auburn’s Northwest Commercial and Industrial Area. The primary industrial clusters in Area 2 are:
· Smart Energy/distributed generation equipment manufacture
· Medical Service Providers and specialists
· Advanced and precision metal forming, shaping and finishing
· Packaging
· Information technology research, support, service and distribution
Target Businesses:
· Medical Service Providers and specialists
· Tourism Related Neighborhood and Commercial Service and Retail Business
Businesses that are targeted for growth and expansion in Area 2 are the smart energy/distributed generation equipment manufacturers, such as McQuay International. McQuay International is a manufacturer of HVAC equipment, and the City of Auburn contracted them for the manufacturing of new geothermal heating and cooling system.
Medical Service Providers and specialist, such as the numerous medical related offices in the Central Medical building, are targeted for growth and expansion. As the aging population continues to grow in the Central New York region, it is important to assist medical service providers.
Area to is host to several of Auburn’s businesses that would be considered part of the Packaging strategic industry cluster. Companies such as Bo-Mer Plastics and Mack-Studios have been and have the potential to grow and expand within the City of Auburn, with the assistance of the Empire Zones Program.
The industry cluster at risk of relocating out of the area is the Advanced and precision metal forming, shaping, and finishing cluster. This industry cluster has a number of businesses that rely on 16th century technology. Some of the examples would be: Auburn Foundry, Hammond & Irving, and 4-M Precision. Certain jobs are of a low-tech nature of this need of production contract are now being filled by companies in China.
Empire Zone staff has supported these at risk companies by providing capital for investing in equipment that allows for companies to make small custom runs of metal pieces efficiently. Staff provides contact support to diversify their customer base from a few large customers to many small customers.
Section V Business Development Assistance and Zone Administration
The City of Auburn, along with several other agencies, provides extensive, hands-on business development assistance. Special assistance efforts are provided to businesses in the zone, in addition the Empire Zone benefits.
· Preference has been granted for allocation of private activity bonding authority for
projects located in the proposed economic development zone as all industrially and
commercially zoned properties eligible to support IDA projects are in the Auburn
Empire Zone.
· The following tax incentives are provided through the Auburn Industrial Development
Authority (AIDA): 485-b Real Property Tax Exemption for Commercial, Business or
Industrial Real Property or PILOTs agreements
· The Design Review Committee in the City of Auburn is composed of staff from
several City departments and in place to expedite the issuance of local permits or
licenses, normally within sixty (60) days.
· The following is list of programs and services available to stimulate the creation of
businesses and jobs:
City of Auburn Office of Planning & Economic Development: www.ci.auburn.ny.us Administers the Auburn Empire Zone and provides technical assistance to start-up and developing businesses through the City of Auburn Small Business Assistance (SBAP) and Façade Improvement programs. The SBAP selection criterion includes location in Auburn’s Empire Zone. The Façade Improvement program is offered only on the CBD, which is in the areas selected for inclusion in the Zone. In addition,
assistance with site selection, financial packaging, specialized research and technical questions is offered. Entrepreneurs may seek counsel in identifying and applying to local, regional, and New York State programs for business assistance, which makes the most sense for a specific business owner. The City of Auburn provides the additional portion of sales tax to zone certified businesses such that Zone businesses can operate sales tax free in Auburn. 315-255-4115
Auburn Industrial Development Authority: www.ci.auburn.ny.us All industrially and commercially zone properties eligible to support IDA projects are in the Auburn Empire Zone. The Auburn IDA provides access to the following:
Tax exempt Municipal Bonds or Bank Eligible Debt to finance building and equipment,
sales tax exemption on construction materials, equipment, furniture and fixtures acquired during facility construction phase, mortgage tax exemption, payment in lieu of property tax agreements (PILOT), along with competitively priced land are made available to zone certified businesses.
Cornell University Cooperative Extension of Cayuga County:
Provides step-by-step classroom instruction coordinated by Extension business development staff and enhanced by area business professionals on topics that include business planning, financing, accounting and tax issues, marketing, business development and legal issues. Graduates of the program enjoy preferred status for loan funds from the City of Auburn of Cayuga County to expand or start their business within the City or County. For additional information from campus go to www.SmallBiz.Cornell.edu
Cooperative Extension of Cayuga County also sponsors and supports the Women’s Business Network (WBN). Through networking, presentations and information sharing, WBN provides professional development and personal growth for women business owners. 315-255-1183
Cayuga County Chamber of Commerce: www.cayugachamber.com Provides no-fee mentoring and business counseling to help small businesses through the Service Corps of Retired Executives (SCORE). SCORE conducts pre-business start-up, as well as ongoing business counseling.
The Small Business Development Center (SBDC) of Syracuse operates satellite office at the Chamber of Commerce twice per month. Those looking to start a business or seasoned business owners facing new challenges are invited to meet with a certified business advisor on an appointment basis for one-on-one business planning, financial planning, and business idea testing. Certified business advisers also introduce management, market research and marketing concepts.
The Cayuga County Chamber of Commerce also offers training and education seminars focused on the needs of small business owners, an Energy Alliance program, networking and advertising opportunities, health and dental insurance to help new entrepreneurs. 315-252-7291
Cayuga Community College Business and Industry Center: www.cayuga-cc.edu Business owners can use of the library to develop plans and complete Internet based market research in addition to business classes offered by Cayuga Community College. 315-255-1743
Provides printed material specific to small business start-up, searchable internet web page of properties available in downtown Auburn, cooperative advertising and marketing opportunities, consumer demographics and market analysis and data for the market trade area and leakage and pull factors. The BID serves only Zone eligible businesses. 315-252-7874
· The City of Auburn’s Economic Development Staff provides support to the
Cooperative Extension of Cayuga County, which supports the Women’s
Business Network (WBN). Through networking, presentations and information
sharing, WBN provides professional development and personal growth for women
business owners.
· The Auburn Zones Administrative Board (AZAB) is a nine (7) member body that
comprises of individuals from a Financial Institution, a Zone Business, Education
Institution, two (2) Labor Institutions, Community Organization and three (3) residents.
The AZAB meeting on a monthly basis and provides services essential to the
development of business and job opportunities with the zone.
· The AZAB coordinates economic development programs through the Team for
Economic Growth (TEG). The TEG was established to prepare and implement the
Strategic Economic Development Plan (SEDP) for Auburn and Cayuga County.
The members of the TEG are extensive; they include members of Planning Staff from
Auburn and Cayuga County, along with staff from other regionally significant entities
(i.e. tourism boards, labor, chamber of commerce, etc.)
· See attached letter from the Central New York Regional Planning & Development
Board for a statement from our regional economic development council setting forth the
specific resources to be allocated for business development in the zone.
Section VI Human Resources Development/Training
There are several human resources development and training programs and agencies for residents of the City of Auburn to take advantage. Loans granted to businesses for the purpose of job creation require business to advertise the jobs to be created through the Cayuga Works One-Stop Center and the New York Department of Labor. Business owners who are loan recipients are required to facilitate the services of the Cayuga County Office of Employment and Training, the local One-Stop Service Center, in addition each zone application packet contains a Fast Fax Job Order form. The following are other examples of professional human resources development and training in the City of Auburn.
Cayuga Works Employment Training Assistance offers new employee recruitment, training support and screening coordination through the Cayuga Works One-Stop Center and the New York Department of Labor. New hire training funds can pay for the cost of training events for new employees. New hire on-the-job training wage subsidy provides a 50% wage subsidy for the first six (6) months an employee works on the job. Minimum hourly wage rates apply.
Unity House of Cayuga County Inc. provides a job readiness program to increase job employability and business competitiveness by assessing reading, math and vocational skills and giving instruction in necessary job and communication skills. Assess skills and interests through completion of profiles for each participant. The Unity House also assists participants with cover letters, resumes and interview practices and job placement.
For-Profit Temp Agencies (e.g. Kelly’s, Manpower, Adecco) provide local job seekers with another network to employment in the City of Auburn. They provide job in-service training and assistance, along with assisting in resume creation.
The Cayuga County SEDP spells out several goals in its “Implementation Profile” for the work force.
1. Expand programs and activities based on rewarding achievement and instilling pride
of accomplishment at all levels. Institutionalize recognition activities such as award
programs for youth and for small businesses.
2. Expand opportunities for youth to gain first hand knowledge and understanding of the
world of work through actual work experience as well as one-on-one mentoring and
shadowing matches.
The Cayuga-Onondaga BOCES and New Visions has been expanding opportunities for
youth to gain first hand knowledge and understanding the world of work through actual
work experience as well as one-on-one mentoring and shadowing matches.
3. Explore resources and program models for improving life skills, particularly of young
families. Cornell Corporative Extension and the Child Care Council of the Finger Lakes
have been involved in providing resources and program models for improving life skills,
particularly of young families.
4. Participate with educational partner in evaluating the public school curriculum to
make modifications as necessary that will emphasize new skill requirements in addition
to the basic reading, writing, and math.
5. Continue and expand quality management initiatives that instill the value of customer
service and the importance of quality in school and in the work place. The Chamber of
Commerce and the Auburn BID have provided training classes on the value of
customer service and the importance of quality in school and in the work place.
6. Ensure that supportive services are in place that enables all works to perform at their
best.
7. Evaluate skill upgrading needed and put appropriate programs in place that ensure
that the currently employed work force can compete effectively in a rapidly changing
job market.
The Workforce Investment Board (WIB) has helped establish a priority list of demand
occupations and has set aside funds to train individuals for the demand occupations. The
WIB is a combination of Cayuga County and Cortland County assets. The WIB has help
accomplish the goal of evaluating skill upgrading needed and has put appropriate programs
in place to ensure that the currently employed work force can compete effectively in a
rapidly changing job market.
Section VII Community Development
The City of Auburn has several projects that are certified by the Zone Board and the following project have and will continue to improve the overall economic and social climate of the targeted areas. The areas in which the projects are located are characterized by pervasive poverty, high unemployment, and general economic distress.
YMCA Renovation Project: The YMCA is located immediately adjacent the distressed census tract and sits in the front of one of the most economically depressed areas in Auburn. The YMCA undertook a $2.1 million renovation project to improve life safety issues, accessibility and physical integrity of the building, along with increasing community oriented programs. The YMCA has over 4,000 members and attracts over 1,000 people per day to downtown Auburn. The YMCA’s preschool program serves 100 children with approximately ? of the parents working within the City of Auburn’s Empire Development Zones. The YMCA employs over 140 people and has been a key asset to the Central Business District.
Auburn Building Community Daycare Project (ABCD): The ABCD is a project in conjunction with the Neighborhood House of Auburn, which is located within the distressed census tract. The project involves the new construction and renovations to its current building. The new construction will be used to incorporate a childcare center for eighty (80) children age six (6) weeks through twelve (12) years. The Neighborhood House project targeted an area in the City of Auburn that is underserved by childcare facilities. The facilities at the Neighborhood House offer 25% of their day care slots to low income families or the local Department of Social Services. Families with low or moderate income fill another 50% of the slots. The slots are created due to the ABCD are
marketed to the employees of businesses located with Auburn’s Empire Zones.
Cayuga County Arts Council – Auburn Schines Theater: The Schines Theater is a local historic landmark building located in the heart of downtown Auburn and within the Empire Development Zone. The Art Deco style theater, built in 1938, has been slated in past for demolition. The theater was acquired in 1996 by the Cayuga County Arts Council and is in the process of being slowly renovated and restored since. A market study performed reviled that the restoration and reuse of the Schines Theater would result in $1,000,000 of impact. The Cayuga County Arts Council received Empire Zone status in 1997.
The Cayuga Museum: The Cayuga Museum project is an ongoing renovation and restoration project that has been taking place for the past decade. The Cayuga Museum is located in the Willard/Case Estate mansion, which is situated on the western cusp of the Central Business District and within the distressed census tract. The mansion is home to archived items pertaining to Cayuga County and Auburn history. The building to the rear houses the laboratory in which Theodore Case invented sound film. The Cayuga Museum is an important asset to the cultural health of Auburn, as it receives over 8,000 visitors a year. The museum and Case laboratory attracts visitors from all over the county and world. The Cayuga Museum serves patrons from pre-K to the elderly throughout the
Cayuga County area.
Child Care Council of the Finger Lakes: The Child Care Council of the Finger Lakes proposed to provide a child care subsidy program to bring affordable quality childcare to Empire Zone residents. The council will set up an endowment fund through a local bank and childcare subsidy participants must meet low to moderate-income guidelines.
Other community development project will be eligible in the City of Auburn’s Empire Zone, if they are:
· Childcare programs serving zone residents and businesses.
· Projects in direct support of economic development and business revitalization
activities, such as commercial revitalization projects
· Business development activities of local development corporations
Section VIII Certification/Cost Benefit Analysis
Businesses seeking certification must show how Empire Zone benefits are important to the company’s proposed expansion and improvement of the overall health of the organization. Auburn best serves a niche of privately held businesses that employ between five (5) and ninety-five (95) people with sales of between $150,000 and $15 million. Many of these established businesses have grown from entrepreneurial endeavors that started with between one (1) and five (5) workers. Companies with potential to grow jobs will be given priority for certification. For this reason, businesses of all sales levels and employment make up will be considered for certification.
All applicant businesses will be required to:
1. Make commitments to create net new jobs or prevent the loss of jobs for individuals
working in the zone.
2. In the event that a company seeking certification will result in the transfer of
employment from an existing business enterprise to similar employment net new job
creating will have to be committed.
3. Enhance the economic climate of the zone, businesses will have to create or retain
good paying, quality jobs, and investments in its empire zone facilities.
4. In compliance with laws for the protection of workers.
5. Meet the requirements of a cost benefit analysis, with a ratio of 15:1.
Commitments to create net new jobs and make new investments will be required for certification. Businesses that fit the criteria below in addition to businesses that make available good and service with otherwise would not be reasonably accessible to resident of the community will be strong candidates for certification.
Cost Benefit Analysis
Businesses must provide sufficient information so that staff can prepare a cost benefit analysis. The cost benefit analysis, along with the application, will be reviewed and approved by the Zone Board prior to review by the zone certifier. In addition, businesses considered for approval as Empire Zone certified businesses should be consistent with targeted industries and targeted areas. The cost benefit benchmark established for the separate and contiguous areas in the City of Auburn will be 15:1
Businesses will also be required to demonstrate how the Empire Zone benefits will have a significant and meaningful impact on their operations as follows:
· Each business use must comply with applicable zoning laws
· Real estate developers will be required to demonstrate their plan and ability to make
significant long term investment in zone property and be owned by an operating
company creating net new jobs and located at the Zone address
Qualitative Factors
Businesses that do not meet the 15:1 benefit/cost benchmark may still be considered for certification if they are consistent with the AZAB’s goal of job creation, they meet a 4:1 cost benefit benchmark and one of the following is applicable:
· The business will have a positive impact on an area that has high commercial vacancy
rates, and/or is characterized by blight and disinvestments. The areas specifically
targeted in the City of Auburn would be the Central Businesses District (or BID), State
and Wall Street Commercial Corridor, and the Five-Points Commercial District. Each
of these areas is being targeted for revitalization and has subsequent neighborhood
plans. These plans that have received extensive public input and research studies are
growing loser to the implementation stages. These plans, along with the City’s many
economic development tools, will come to see fruition with the aid of Empire Zones.
· The business is part of a strategic industry cluster or supply chain, as defined in
Section IV of this plan.
· The business is anticipated to access zone capital credits. The business must indicate
whether the business/project expects to use zone capital credits to raise equity capital to
finance a business expansion, or new business start-up, or for financing a community
development project, and whether the AZAB has approved the use of credits for this
business or community development project.
No Certificate of Designation through a Joint Application for Empire Zone Certification will be approved for any business, including but not limited to an individual, partnership, or corporation due to the following:
· Is delinquent or has a history of being delinquent in payment of property taxes in
Auburn or Cayuga County. This includes municipal real property taxes, PILOTs,
school taxes, special district taxes, etc.
· Certification will also be denied to any individual, partnership, or corporation that owns
real property in the City of Auburn and has been found to have serious safety, building
code and/or housing code violations by the City of Auburn within the past five (5) years.
· Persons who own businesses that are currently zone certified risk de-certification for
same causes.
Section IX Program Performance Evaluation
The AZAB evaluates the performance of the Zones Program on the following criteria:
· Job Creation: the number of job created annually, with a goal of one-hundred and fifty
(150); 1% of our workforce
· Job Retention: the number of job retained annually, with goal of fifty (50)
· Open Space Protection: reduction of vacant and under-utilized commercial and
industrial properties
· The amount of private capital leveraged with public funds, based on a ratio of private
capital versus public funds of at least: 3:1
· Economic Development Staff will continue to visit seventy-five (75) zone certified
businesses a year.
· Facilitate the attraction or creation of one (1) new business each year
· Demonstrate an increase asset value of property in the zone
Businesses can be eligible for public funds and in the City of Auburn, including the Small Business Assistance Program, Micro-Enterprise loans, assistance from the Business Improvement District, Façade Improvement program, and aid from the Auburn Industrial Development Authority (AIDA) to name a few. Capital leverage with public funds pertains to the benefits received from the City of Auburn along with aid from the county, state government, and Federal government. These, along with Empire Zone benefits and other public funds will be measured against the businesses private capital.
Decertification
The Zone Administrative Board may recommend decertification of a zone business pursuant to Section 959(a)(iv) of the law and Part 11.9 of the regulations.
In addition, the zone administrative board will annually review businesses that have been certified for at least a 24-month period to determine if the businesses are meeting their investment and job creation goals, and/or whether they are otherwise operating in a manner consistent with this zone development plan.
Businesses found to not be meeting their goals and/or operating in a manner consistent with this development plan, will be notified in writing of this finding and provided an opportunity within 60 days of the notification, to explain to the Board what circumstances are causing this failure.
The Board, after hearing the circumstances, shall recommend decertification for any business that has failed without sufficient economic justification to substantially meet its investment and job creation goals or has operated in a manner inconsistent with this development plan.
As part of the Zone Annual Report to the State, the Board will summarize the results of its annual review and indicate which businesses are being recommended for decertification.
Annual Report
The AZAB will provide a report annually to the ESD pursuant to General Municipal Law § 963 (b) (ii). The following information will be reported annually:
· Information which would allow for substantive review of the zone’s strategies and
progress in meeting its short-term objectives;
· An analysis of the extent to which the long-term goals set forth in the empire zone
application have been met;
· The report will include a current description of the specific strategies and priorities for
economic revitalization of the zone, including, but not limited to:
· The number of jobs created
· The number of jobs retained
· The amount of private capital leveraged with public funds
· The number of businesses expanded or retained and new businesses created
· The type of businesses expanded or retained or created
· Consideration of the improvements in the physical infrastructure of the zone and
how this matched goals of the plan, and if not, why.
These program performance measures will be updated as economic condition chance and other factors trigger adjustment to this plan.
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