After nine months of study, Shell extended until December 31, 2013 its option to purchase nearly 1,100 acres of Potter Township industrial property from Horsehead Corp. The extension allows Shell to continue its evaluation of business issues including assessing market conditions, sourcing of natural gas from regional suppliers, and site factors for building an ethane cracker in the Northeast.

If built, the multi-billion dollar petrochemical plant would represent one the region’s largest private sector investments in decades. The project promises to bring up to 10,000 plant construction jobs at the peak construction period, and once operational, 400 new, direct, production positions. Additionally, Shell’s readily available, derived ethylene commodities could attract related “cluster industries” and a potentially significant number of additional downstream manufacturing jobs.

To encourage projects of this scale, state legislation was passed to approve up to 350 acres of the site as a Keystone Opportunity Expansion Zone (KOEZ). KOEZ designation can exempt certain Pennsylvania and local taxes over a prescribed timeframe, potentially up to 22 years if a company creates over 400 new jobs and invests over $1 billion during its first seven years of occupancy. A working partnership of officials and economic development agencies have organized to help coordinate local approvals needed to qualify for the KOEZ designation. This steering group consists of the Beaver County

Commissioners, the Potter Township Supervisors, the Center Township Supervisors, and the Central Valley School Board, assisted by economic development staff from the Pittsburgh Regional Alliance, CED, and the Pennsylvania Department of Community and Economic Development.

Shell Continues Assessment of Beaver County as preferred Ethane Cracker Plant Site

UPDATE

A private, non-profit development corporation

Dedicated to enhancing economic development by facilitating private investment and job creation

Governed by a highly motivated volunteer Board of Directors

A professionally staffed resource for business assistance

A partnership of private business and public sector experience and talents

A real estate developer and financing entity for projects that create significant economic opportunities

CED is:

ABOUT THE COVER: VEKA, Inc. utilizes 3-D coordinate measuring technology for high efficiency design. Photo by Emmanuel Panagiotakis - www.pittsburghpictures.net

1

This material was funded through a grant from the Commonwealth of Pennsylvania Department of Community and Economic Development

Annual Report 2013

The Beaver County Corporation for Economic Development (CED) is the lead economic development agency for Beaver County. CED undertakes activities

to expand and diversify the Beaver County economy.

Financial Highlights and Trends .............................. 2

Chairman’s Letter to the Membership .................. 3

Fiscal Year 2013

Review of Activities ....................................................... 4

Development Activities .............................................. 5-7

Special Initiatives ........................................................... 8

Performance Summary ............................................... 9

Financial Summary ....................................................... 10

CED Membership ........................................................... 11

CED Board of Directors ................................................ 12

T A B L E O F C O N T E N T S

organization profile

financial highlights & trends

Major Category x $1,000 FY 2011 FY 2012 FY 2013

Total Assets $ 37,936 $ 34,391 $ 32,429

Total Liabilities $ 3,041 $ 2,859 $ 2,732

Total Net Assets $ 34,895 $ 31,532 $ 29,697

Total Liabilities & Net Assets $ 37,936 $ 34,391 $ 32,429

Yearly Comparison

$3 M

$2.5 M

$2 M

$1.5 M

$1 M

$0

Total Support and Revenue

2011 2012 2013 2011 2012 2013

Total Expenses

Revenues Less Expenses

$5 M

$4 M

$3.5 M

$3 M

$2.5 M

$2 M

$1.5 M

$1 M

Financial Trends

$4 M

$3 M

$2 M

$1 M

$0

($1 M)

($2 M)

($3 M)

($4 M)2011 2012 2013

2 Annual Report 2013

$1,598

$1,111$1,872

$4,474

($273) ($3,363)$1,495

$3,331

($1,836)

3 Annual Report 2013

September 23, 2013

Dear Voting Class Members:

On behalf of the Board of Directors, I am pleased to provide you this 26th Annual Report summarizing the activities and accomplishments of the Beaver County Corporation for Economic Development (CED) during the fiscal year ending June 30, 2013. It is with regret we recognize the departure of Dr. Gary Keefer from the Board of Directors during the past year. As Penn State – Beaver Campus Chancellor, Gary brought a unique and valuable perspective on a wide variety of economic matters, especially those pertaining to engineering, education, and job training and workforce issues.

Responding to changing organizational circumstances and marked increased external activity in the local energy sector, the CED Board undertook a thorough analysis of its internal Board management practices and staff functionality and adopted a comprehensive 2013 Strategic Plan. With the assistance of a consultant, the Plan will help guide CED activities in areas of strategy, business model, and organizational design by implementing specific action items.

With your highly valued support, we will continue to thoughtfully invest to help optimize future employment opportunities and economic benefits for Beaver County’s current and future generations.

With best wishes, I am

Sincerely,

Robert RimbeyChairman, Board of Directors

ROBERT RIMBEYChairman

letter to the membership

PROJECT NAME LOCATION NEW JOBS PROJECT INVESTMENT

Creekside Springs, LLC New Brighton/Pulaski 20 New $ 1,355,000

Beemac Trucking, LLC Harmony 50 New $ 3,100,000

Selectrode Industries, Inc. Hopewell 5 $ 275,000

Cessna Hospitality Associates Chippewa 20 New $ 5,732,000

Sensible Organics Beaver Falls 15 New $ 3,000,000

Hopewell Business & Industrial Park Hopewell Speculative Investment $ 1,000,000

VEKA, Inc. Marion 38 New $ 5,800,000

TMK IPSCO Koppel 37 New $ 22,750,000

Danzer Veneer Americas Darlington 105 New $ 5,000,000

Culver Industries Hopewell 40 Retained NA

PGT Trucking, Inc. Potter 90 Retained $ 120,000

FY 2013 TOTALS 290 $ 48,132,000

Completed Projects

f i s c a l y e a r 2 013 r e v i e w o f a c t i v i t i e s

4 Annual Report 2013

CED activities are focused on efforts to encourage diversified job creation and private investment. The listing below provides a summary of the projects in which CED participated or involved CED developments during the year.

New

Annual Report 2013 5

Marion Township - In the mid 1980s, Beaver County was reeling from a seemingly endless string of plant closures and downsizing. The first good news reversing that downward spiral was welcomed from an American subsidiary of a German company, which would invest $12 million to build a cutting edge PVC extrusion plant on a reclaimed strip mine in northeastern Beaver County. Over the past 25 years and after numerous expansions, VEKA has become one of the county’s biggest and best success stories, now employing over 360.

VEKA manufacturers and distributes vinyl extruded PVC window and door profiles, PVC fencing, railing, and deck products, and accessories predominately to the residential remodeling and new construction markets. VEKA’s latest investment is a $5.8 million expansion involving new equipment, infrastructure, and employee training resulting in an additional 38 new jobs at its Beaver County facility.

The company received an offer from the Department of Community and Economic Development (DCED) including a $190,000 Pennsylvania First Program grant, $114,000 in Job Creation Tax Credits, and a $17,100 Guaranteed Free Training grant which will be used to prepare its new workforce. The project was coordinated by the Governor’s Action Team, in collaboration with the Pittsburgh Regional Alliance, and CED. For more information on VEKA, Inc. visit www.vekainc.com.

Veka expands local plant

development activities

6 Annual Report 2013

Supporting business and job growthdevelopment activities

CED is designated by the Commonwealth of Pennsylvania as Beaver County’s certified provider for the Commonwealth’s loan programs. To be certified, CED staff must meet performance standards in underwriting and servicing loan requests on an on-going basis.

With certification, CED can directly offer assistance to clients on a number of Commonwealth incentive programs, including Small Business First (SBF) and Pennsylvania Industrial Development Authority (PIDA) loans. SBF can provide up to $200,000 for fixed assets and working capital to eligible enterprises. PIDA can provide up to $2 million in fixed rate, long term financing for real estate projects involving acquisition, renovation, or construction.

As of June 2013, CED had nearly $5.1 million in PIDA financing outstanding representing 11 projects, three closed SBF loans with over $300,000 in outstanding financing, and 16 active loans under its Business Development Fund, with receivables of over $1.7 million.

Sensible Organics - WEST MAYFIELD BOROUGH

• In 2001, CED funded Sensibility Soaps, a startup company which established a manufacturing facility for its line of organic bath and beauty products with four employees, including the owners.

• Ahead of and successfully riding the wave of popularity of organic products with pioneering in-house research and development, Sensibility Soaps became the first personal-care manufacturer to receive USDA’s National Organic Product Certification.

• SensibilitySoapswas sold toanprivateequityfirm,whichearlier in 2013 raised $3 million with expansion plans in all areas of custom product formulation, private labeling, and contract manufacturing.

• The new company, SensibleOrganics, currently employs 40with an additional 15 jobs to be added as operations expand.

PGT Trucking, Inc. - POTTER TOWNSHIP

• PGT Trucking is a leader in interstate freight transportation serving steel, building materials, machinery, oil and gas, and automotive industries nationwide from its 31 terminals.

• To assist in recruitment and training, PGT purchased a state-of-the- art, hands-on visualization simulator that effectively replicates a controlled, virtual reality tractor trailer driving environment.

• PGT can now efficiently test and train new drivers as well as reinforce safety practices by retesting current driving staff, reducing costs of fuel, insurance, accident claims, and equipment depreciation.

• CED provided a $102,000 loan toward the acquisition of the $120,000 simulator Investment.

Beemac Trucking, LLC - HARMONY TOWNSHIP • Beemac Trucking, LLC is a full service truck transportation, warehousing, and materials handling company.

• CEDapproveda$250,000BusinessDevelopmentFundloanand a $200,000 Small Business First loan to assist in the company’s $1.9 million construction of a compressed natural gas fueling station. • Beemacwillinvestanadditional$1.2millioninpurchasingtennew CNG tractors and retro-fit another thirty.

• The CNG fueling facility, the first of its kind in Beaver County, is expected to save the company almost 50% of its cost of fuel, and create 50 new jobs within the company.

Annual Report 2013 7

development activities

Creekside Springs, LLC NEW BRIGHTON BOROUGH AND PULASKI TOWNSHIP

• CreeksideSpringsIsasupplierofbottledandflavoredwaterfor private label, co-package, and corporate brand products from its Ambridge and Salineville, Ohio plants.

• CEDpurchasedtheformerTegrantDiversifiedBrandsplant,entering into a long term lease/purchase agreement with Creekside, to accommodateexpansionofthecompany’sflavoredwaterproducts.

• CEDsecureda$677,500PIDAloanonCreekside’sbehalfandwill provide $300,000 in additional financing toward Creekside’s purchase of the facility.

• The company currently employs 20 and anticipates hiring an additional 20 as a result of the project.

TMK IPSCO - KOPPEL BOROUGH/AMBRIDGE BOROUGH

• TMKIPSCOmanufacturesseamlesstubulargoods,drillpipe,coupling stock and line pipe for the oil field industry. It is the current successor to Koppel Steel, which CED assisted in acquiring certain properties from Babcock & Wilcox in the early 1990’s.

• TMKplanstoexpanditscapacityinBeaverCountyduetoincreased market demand for its product lines, and expects to create 37 new jobs.

• The $22.7 million expansion includes purchasing new finishing equipment and employee training.

• DCED pledged $150,000 of support in the form of Job Creation Tax Credits and a Pennsylvania First Program grant.

CED Owned Properties Year-End Development Project SummaryPROJECT STATUSAliquippa Industrial Park Marketing site Bridgewater Crossing Marketing site Hopewell Business & Industrial Park Expansion underwaySteel Street Commerce Center Fully leased1200 Airport Road Fully leasedMonaca Commerce Center Marketing site; 60% leasedWestGate Business Park Marketing site; funding approved for infrastructure expansion

Danzer Veneer Americas - DARLINGTON TOWNSHIP • CED assisted in establishing the predecessor company, Penn Beaver Veneer, a $7 million project, in 1989.

• Danzeristhelargestproducerofdecorativeveneerworldwideanda top 10 producer of hardwood lumber in North America.

• The North American Darlington plant is one of four Danzer Veneer plants, with others in Africa, Europe, and South America.

• DCEDofferedaPennsylvaniaFirstProgramgrantof$200,000to assist in the expansion of the Swiss based firm, which expects 105 new jobs resulting from its $5 million investment.

special initiatives

8 Annual Report 2013

Working together for future growthRIVERFRONT DEVELOPMENT Twenty years ago, the Beaver County Corporation for Economic Development spearheaded a program to capitalize on the unique opportunities created by the Ohio and Beaver Rivers for communities in Beaver County. The Beaver County Riverfront Development Program was created with the cooperation and support of the Beaver County Board of Commissioners, the Community Development Program of Beaver County, and nine riverfront municipalities. The idea was simple: create investment opportunities by improving public access to the Beaver and Ohio Rivers. A plan was completed that identified a series of improvements and guiding principles for development of the county’s riverfronts focusing on sites with unencumbered access to the waterways. The municipalities formed an advisory panel that prioritized and selected the projects to undertake and CED administered the program.

The program completed its last project in 2013, the Bridgewater Connector – Trail North to link the Bridgewater riverfront to the new Veterans Memorial Bridge. The overall program resulted in 30 completed projects with an investment of over $9.8 million of public and private funds, created a resurgence of activity along the riverfronts of the Beaver and Ohio Rivers, and leveraged substantial indirect investment in riverfront communities.

ENTERPRISE ZONE PROGRAM CED has provided staffing and management assistance to the county for the Enterprise Zone Program since 1987. Tax credits for new construction and a streamlined environmental remediation

processing are among the benefits to the 26 Enterprise Zone communities. Since inception, over $12.8 million of Enterprise Zone grants and tax credits have been awarded. This year an application to include Chippewa Township as an Enterprise Zone community was approved, a $500,000 Enterprise Zone Tax Credit was awarded to Cessna Hospitality Associates for a $5.7 million hotel development in Chippewa, and a $50,000 grant was received through the program to assist with CED’s administrative costs.

PA ROUTE 18 CORRIDOR ANALYSISThe funding was approved for a consultant-led real estate study that will first evaluate the potential of various underutilized industrial and commercial properties surrounding the proposed Royal Dutch Shell ethane cracker plant, and then develop master plans for at least two priority sites. Planning leadership is headed by a broad-based coalition including CED, Beaver County Board of Commissioners, and representatives from Central Valley School District, Center and Potter Townships, and Pittsburgh Regional Alliance. CED applied for two grants from DCED totaling $50,000 this past year and will provide a $25,000 match to finance the planning effort. Results are expected in spring 2014.

BEAVER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITYSince 1994, CED has provided management services to the Beaver County Industrial Authority (BCIDA). BCIDA is a tax exempt financing conduit lender for projects that qualify under the Internal Revenue Code. As of December 31, 2012, BCIDA had almost $950,000,000 in outstanding tax exempt financing.

During the year, BCIDA approved an application on behalf of National Gypsum Company to the Pennsylvania Economic Development Financing Authority for $87.35 million in bond financing. Of that amount, $79.35 million will be used to refinance a portion of the company’s 1997 bond issue used to construct and equip its wallboard production facility in Shippingport, which produceswallboardfromsyntheticgypsummadefromflyash.Another $8 million will finance new equipment at the site. National Gypsum currently reports employing 77 in Shippingport.

Riverfront Development Program Funding By Source

Riverfront Development Program Funding By Source

47%

27%

12%

8%5% 1%

CED Cumulative Totals

Completed Projects 333

New Jobs 10,384

Average Yearly Wage $33,394

Temporary Jobs/FTEs 3,276

New Private Investments $1,419,432,000

Number of Grants/Loans 297

Dollar Amount of Grants/Loans $126,535,000

CED actively supports the retention and growth of existing firms, while also attracting new ones to the County. The table and graph demonstrate the progress made by CED in meeting its goals.

9 Annual Report 2013

p e r f o r m a n c e s u m m a r y

Measuring another year of progressJobs Review

0 200 400 600 800 1,000 1,200

1,083186

459799

283733

427798

222990

649402

263567

315148

338216

372188

283140

36180

140290

19881989

19901991

199219931994199519961997199819992000200120022003200420052006

2007200820092010201120122013

Measuring another year of progressJob Created Review

SUPPORTGrants $ 627,535

REVENUESLoan Fees, Membership Dues, Interest, Rental Income and Miscellaneous $ 867,172

TOTAL SUPPORT & REVENUE $ 1,494,707

EXPENSESEconomic Development Projects $ 2,812,324Management and General $ 518,494

TOTAL EXPENSES $ 3,330,818

EXCESS OF SUPPORT AND REVENUE OVER EXPENSES $ (1,836,111)Net Assets, June 30, 2012 $ 31,532,492Net Assets, June 30, 2013 $ 29,696,381

ASSETSCash and Cash Equivalents $ 12,860,873 Loans Receivable $ 1,725,175 Grants Receivable $ 151,554 Lease Receivable $ 1,058,134 Inventory of Lots $ 9,836,308 Property held for transfer $ 300,063 Property and equipment net $ 6,496,680

TOTAL ASSETS $ 32,428,787LIABILITIES AND NET ASSETSLiabilities Accounts Payable and Accrued Expenses $ 927 Notes Payable $ 2,634,470 Deferred Revenue/Deposits $ 97,009 TOTAL LIABILITIES $ 2,732,406

Net Assets Unrestricted $ 25,063,998 Temporarily Restricted $ 4,632,383 TOTAL LIABILITIES AND NET ASSETS $32,428,787

Summary of Statements of Support, Revenue, Expenses and Changes for the Year Ended June 30, 2013.

Summary of Statement of Financial PositionJune 30, 2013.

CED’s financial condition is continuously monitored by the Board of Directors through monthly financial reports. Fiscal year activities are audited and certified by an independent CPA.

Annual Report 201310

financial summary

0 10 20 30 40 50 60 70 80 90 100

89%

11%

CED enjoys financial support from a significant number of governmental, business community, and individual contributors. This support is used for a variety of projects which stimulate job creation and private investment through locally evolved initiatives. The Beaver County Board of Commissioners continued its strong and ongoing financial support of CED activities since its inception by contributing $200,000 from its general fund during the 2013 fiscal year. Further demonstrating the strength of the public-private partnership in Beaver County is the degree of support received from individual and business contributions. In 2013, membership from the private sector represented 86 local companies and individuals. Membership involves a minimum contribution of $200 and allows participation in the annual election of the CED’s Board of Directors. Members are gratefully acknowledged as follows:

Thanks to those who support progress in Beaver County

11 Annual Report 2013

ced membership

2013 MEMBERSHIPAirport Area Business ComplexArdex, L.P.I. David Atcheson, Jr. D.M.D.Aurora Environmental, Inc.Avelli ManufacturingDaniel C. Baker Associates, Inc.Michael Baker CorporationBeaver County Building & Construction Trades CouncilBeaver County Chamber of CommerceBeaver County Transit AuthorityBeemac Trucking, LLCC. J. Betters EnterprisesBolland Machinec3controlsCastlebrook Development Group, LLCCivil & Environmental Consultants, Inc.Colona Transfer, LPColumbia Gas of PennsylvaniaCommonwealth Real Estate Services, LLCCommunity College of Beaver CountyCottrill Arbutina & Associates, P.C.Creekside Springs, LLCDanzer Veneer Americas, Inc.Duquesne Light CompanyESB BankFirst National Bank of PennsylvaniaGatewayRehabGeneva CollegeGreek Catholic Union of the U.S.A.

Halama Brothers Electric, Inc.Hannon ElectricHenderson Brothers, Inc.Heritage Valley Health SystemHerr/Voss StamcoHomer Nine & Sons, Inc.Horsehead CorporationIBEW Local Union 712Job Training for Beaver County, Inc.Keystone Profiles, Ltd.Laborers’ District Council of Western PALennon, Smith, Souleret Engineering, Inc.Lombardo Industries IncorporatedMartino, Inc.McCarl’s, Inc.McDanel Advanced Ceramic Technologies, LLCMetalwerks PMD, Inc.Moderne Glass Co., Inc.MVM Associates, Inc.Nalco CompanyNeo Solutions, Inc.NOVA ChemicalsJohn P. O’Leary, Jr.Penn State BeaverPenn State Special Metals, LLCPenna-Flame IndustriesPeoples GasPGT Trucking, Inc.Pittsburgh Intermodal Terminals, Inc.

Pittsburgh Mineral & Environmental Technology, Inc.Pittsburgh Tubular Shafting, Inc.Precision Kidd Steel Co. Inc.Q-Cast, Inc.Rome Monument, Inc.Sardello, Inc.Shasta, Inc.Sippel Co., Inc.Southwestern PA Area Labor Management CommitteeStandard Steel Specialty CompanySteel Built CorporationSteel Street Services, Inc.Surface Engineering AssociatesTown Center AssociatesBob Tracy InsuranceTri-State River Products, Inc.Tucker Auto-Mation Holdings USA, LLCTurney Electric, Inc.Uhl Construction Co., Inc.Union Building & Loan Savings BankValue Ambridge Properties, Inc.Veka, Inc.West-Aircomm Federal Credit UnionWHEMCO, Inc.Widmer Engineering, Inc.Woodske Law OfficesWolfpac Technologies, Inc.W. D. Wright Contracting, Inc.

CED Board of Directors formulates policy and provides direction for staff activities. Corporation bylaws assure a blend of private and public sector experience and talents. This is achieved by the representation of the three Commissioners of Beaver County, at least one representative of labor, and the community at large. Other members are selected based on demonstrated leadership capabilities in both large and small business and education. At least four members of the Board of Directors are elected each year by the members of CED at its annual meeting.

Policy set by community leaders

CHAIRMANRobert Rimbey

Retired Banker

VICE CHAIRMANCharles O’ Data

PresidentBeaver County

Foundation

Dennis NicholsBeaver CountyCommissioner

BarbaraD’Alessandris

Retired Bank of New York

Tony AmadioChairman

Beaver CountyCommissioners

Mark PelusoOwner

Town CenterAssociates

TREASURER/ SECRETARY

Carolyn RenningerCEO

c3controls

Joe SpanikBeaver CountyCommissioner

Dr. Melvin Steals Retired School Administrator

Gary KeeferChancellor

Penn State - Beaver

Daniel Martone Principal

Martone Engineering and Surveying Co.

David O’LearyRetired

Business Executive

Kraig DiehlMembership

Development Coordinator,

IBEW Local 712

12 Annual Report 2013

2013 board of directors

Karen BarnessNOVA Chemicals

Manager, Community Relations, Retired

Joe Bevevino, CPAVice President/Share Holder

Cottrill, Arbutina & Associates, P.C.

Richard Shaw

Site work underway expanding the Hopewell Business & Industrial Park.

250 Insurance Street • Suite 300 • Beaver, PA 15009 • 724-728-8610www.beavercountyced.org