Economic developers link in regional unit

CNY Business Journal (1996+), Jan 29, 1999 by J, Patricia

Herkimer County appears to be riding Oneida County's coat-tails to financial stability. In 1998, Utica's Edward A. Hanna became the first mayor in New York State to extend his city's economic-development zone into another county. "I view all of the Mohawk Valley as one community," he says.

The Utica EDZ now encompasses the new Frankfort Industrial Park on Route 5S, just beyond the border with Utica/Oneida County.

"A lot of local companies have been doing really well," points out Mark Kaucher, coordinator of the Herkimer County Industrial Development Agency. "It's going to be a busy construction season again this year because of new equipment purchases and investments. And we have a lot of projects ahead."

The Herkimer County work force is just under 30,000. The unemployment rate of 4.8 percent is the lowest in at least 10 years and 2.3 percent better than in 1996.

The only tenants of the Frankfort Park at present are Fiberdyne Labs and HMO Metal Finishing Group, LLC (formerly H.M. Quackenbush). Fiberdyne, a manufacturer of fiber-optic cables, cabling connectors, assemblies, and computer products, was the first tenant in the park. It announced in December it would develop a new product line and add 70 jobs, boosting its total employment to 115.

"1998 was an outstanding year," says Fiberdyne President Peter Polus, Sr. "We planned it. We introduced some new products. In 1999, we will introduce more new products, open a new sales office, and start trading internationally. We're expecting another strong year."

Fiberdyne, which was founded seven years ago in Little Falls, now occupies a 22,000-sq.-ft. facility. Polus says his company will begin exporting to Canada, South America (Argentina and Brazil), and Germany. "I think there's a new global attitude with the Euro [currency]. The South American economies are strong, and Canada is becoming stronger, too."

HMQ is leaving the village of Herkimer, where it was landlocked, to build a more cost-efficient electroplating and metal-finishing plant in the business park. It has 100 employees at the present time. It expects to be in total operation by the fall.

Another major development in Herkimer County was the issuance of a $500,000 state bond to Remington Arms Company, the gun manufacturer in Ilion. Remington's 1,000 employees build pump-action shotguns, bolt-action shotguns, muzzleloaders, sporting rifles, and custom guns.

In 1996, it closed down its plant for a few weeks and cut 130 workers -- 10 percent of its work force -- due to what it called a stagnant economy. But Remington also built a new production plant in Mayfield, Ky. the same year. In response, Herkimer County and New York State chipped in with power and tax-rate reductions to help keep the factory afloat.

The new state loan is another effort to bring stability to one of Herkimer County's largest employers.

A $14-million, 220,000-sq.-ft. Wal-Mart soon will anchor a new shopping center in Herkimer, along with Agway, Inc., a farm-and-home store. The site was formerly occupied by the Library Bureau, a furnituremaker, which went out of business many years ago. Demolition of the old Library Bureau building is now under way. Herkimer IDA is providing property-tax reductions for Wal-Mart.

Adirondack Bat Company of Dolgeville flexed its muscles in 1998 along with one of its customers, Mark McGwire. By issuing commemorative and replica bats celebrating McGwire's record-breaking 70 Major League home runs, Adirondack Bat was able to hire 50 additional employees in November. Adirondack Bat is a division of the Rawlings Sporting Goods Company.

At its annual meeting in December, Oneida County's economic-development agency, EDGE, expanded its board of directors to include private, business, and government officials from Herkimer County. The original members of EDGE are the Griffiss Local Development Corporation, Oneida County Industrial Development Corporation, and Oneida County Industrial Development Agency. It now will negotiate contracts with Herkimer County and its economic-development agencies. Herkimer County IDA will remain the legal vehicle for issuing tax-exempt bonds on Herkimer County projects.

"EDGE recognizes Herkimer County's contribution as fully equal and active members of the board and signals the organization's mission as one with a regional scope," said an EDGE press release.

The EDGE board now has 41 members who serve one-, two-, or three-year terms. There are business leaders, elected and nonelected government officials, and ex-officio members.

The new board members are Richard Collins, president of Herkimer County Area Development Corp.; Laura Marcantonio, president of Herkimer County Trust Co.; Robert Ranger, retired regional president of Fleet Bank; Harrison "Chip" Hummel III, president of Hummel's Office Plus: Larry Bull, president of Bull Brothers (convenience stores); and Domiano Contino, chairman of the Herkimer County Legislature.

Kaucher says Herkimer County has always worked alongside Oneida County and previously was involved in a marketing campaign with Oneida and Fulton-Montgomery counties. "We've done cooperative marketing before, only now it's more formalized."