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CAF USACAF USACAF USA
More great news rolled into Elmira Heights this fall
when Houston’s Metropolitan Transit Authority gave the green light to purchase 39
light-rail vehicles from CAF after approving the company’s proposal to be fully com-
pliant with “Buy American” provisions. The $153.1 million contract was re-awarded
to CAF after the company and other rail manufacturers were made to reapply.
CAF was awarded a $298 million contract with Amtrak to construct 130 rail cars in
2010. The company is investing in a new robotic welding line to manufacture car
shells. CAF’s employment reached over 100 employees in 2011, with projections of
400 employees in 2012 thanks to the addition of this new Houston contract.
CAF purchased the 50 acre, 400,000 sq. ft. Elmira Heights facility in 2000 and has constructed rail vehicles for the
Transit Authority in Washington, D.C., Pittsburgh and Sacramento to name a few, however employment nor work orders
have never been to this magnitude. Both projects are scheduled to last ve years with options for additional rail vehi-
cles.
Sikorsky Military Completion Center North
Renovations took the entire year, but the $15 million
Sikorsky Military Completions Center North is now
home to over 300 administrative and production per-
sonnel as well as a world class international customer
delivery center.
Thanks to a banking partnership between Five Star
Bank, Chemung Canal Trust Company, Elmira Savings
Bank and construction management by Welliver Con-
struction, the newly renovated 120,000 square foot facility, which once served as the National Warplane Museum, is
not only on the tax rolls, but a signicant contributor to the economic success of the Elmira-Corning Regional Airport.
Transforming the museum facility into a state of the art manufacturing facility and customer delivery center required
the design of re suppression systems in two hangars capable of extinguishing aviation fuel res, as well as a complete
overhaul of facility electrical systems. The project was designed and engineered by McFarland Johnson Engineers. Sup-
porting Welliver on the construction project were Collins & Walton, John W. Cook Painting, Hale Contracting, John Mills
Electric and Allied Fire Protection Systems.
2011 Annual Report
Steven E. Agan, Esq., Partner
Sayles & Evans
Arthur D. Ambrose
Manager & Associate Broker
Realty USA
Joan L.S. Ballinger, Executive Director
Workforce Development & Community
Education
Corning Community College
William H. Beecher, President
Linn S. Chapel Company
William Benedict, Managing Member
Magee Point Associates LLC
Ronald Bentley, President/COO
Chemung Canal Trust Company
John S. Booth III, Vice President
I. D. Booth Inc.
John J. Burin, Jr, City Manager
City of Elmira
Charles Burke, Vice President
Swift Glass Company Inc.
Daniel J. Burke, President
Swift Glass Company
Dawn Burlew, Manager Business Develop-
ment
Corning Enterprises
Teresa M. Dean, Town Supervisor
Town of Big Flats
Daniel F. Dimon, Jr., Vice President
Dimon & Bacorn, Inc.
Jodi Edger, President
Edger Enterprises of Elmira
Michael Edwards, Supervisor
Town of Horseheads
Arne C. Feyling, Plant Manager
Kennedy Valve
Michael Fuller, Chairman
Pipeline 4 Progress
John T. Gough, Chairman
Gough Holding Corporation
Thomas Gough, President
Gough Holding Corporation
Michael Heine, Vice President & General
Manager
Vulcraft of New York Inc.
Walter Herbst, Village Manager
Village of Horseheads
Michael P. Hosey, President & CEO
Elmira Savings Bank, FSB
George L. Howell, Chairman
F. M. Howell & Company
William E. Huffner MD
Chief Medical Officer & Senior Vice Pres-
ident Medical Affairs
Arnot Ogden Medical Center/St. Joseph’s
Hospital
Ron Johnson, President/CEO
Cameron Manufacturing & Design
Kevin D. Keeley, President/CEO
Chemung County Chamber of Commerce
Jeffrey P. Kenefick, Regional President
Five Star Bank
Ronald Lerner, Plant Manager
SYNTHES USA
George Maloney, President
Pal’s Sports Center
Michael J. Manzari, Managing Director
Pyramid Brokerage Company
Ralph Marino, Jr., Superintendent
Horseheads Central School District
Kevin McGurgan, Regional President
Excellus BlueCross BlueShield
Robert B. McKinnon, CEO
Elm Chevrolet Company
John Meier, President
Meier Industries
Thomas K. Meier, President
Elmira College
Martin Metzger, President
Silicon Carbide Products Inc.
Cornelius J. Milliken, Chairman
Chemung County Legislature
John V. Moore, Esq., Partner
Moore & Woodhouse LLP
Scott D. Moore, Partner
Moore & Woodhouse LLP
Daniel P. O’Connell, President
Swan & Sons-Morss Company Inc.
Thomas F. O’Mara, Partner
Davidson & O’Mara P.C.
Daniel P. Panosian, President
Arnot Realty Corporation
Robert L. Pass, Regional Manager
Community Outreach & Development
New York State Electric & Gas
Roger C. Phillips Jr.
Engineering & Support Manager
Belden Inc.
John F. Potter, President
Seneca Beverage Corporation
Donald G. Quick, Jr. Partner
Mengel, Metzger, Barr & Company
Randy Reid, President
Reid Media Group LLC
George Richter, Town Supervisor
Town of Chemung
William Roe, Corporate Secretary
Hunt Engineers, Architects & Land Sur-
veyors
Joseph Roman
Economic Development Specialist II
New York State Empire State Develop-
ment
Thomas J. Santulli
Chemung County Executive
David J. Sheen, Town Supervisor
Town of Southport
Mark J. Smith, Vice President of US Op-
erations
CAF USA Inc.
Michael J. Sopp, General Manager
Anchor Glass Container Corporation
Jerald M. Stemerman, President
Chemung Supply Corporation
Marc Stemerman, Vice President
Chemung Supply Corporation
Mark Stensager, President & CEO
Guthrie Healthcare System
Jeffrey B. Streeter, President
Streeter Associates Inc.
Mary Swan, Vice President
Travelers Insurance
Richard W. Swan, Chairman
Swan & Sons-Morss Company
Douglas C. Tifft
Senior Vice President Administration
Hardinge Inc.
Joseph M. Valicenti, President & COO
Valicenti Advisory Services
Nelson Mooers van den Blink
Retired
The Hilliard Corporation
Peter C. Wallin, President
Wallin Insurance Agency, Inc.
Stephen Welliver, Director of Purchasing
Welliver-McGuire, Inc.
Gareth O. Wick, President
G. O. Wick, Inc.
STEG 2011 BOARD MEMBERS
Annual Report 2011
Message from the President
The past year has been extremely busy at STEG. For the past several months, I have
been engaged in an economic development planning process through Governor
Cuomo’s Southern Tier Regional Economic Development Council. Chemung County
was well represented on this planning process from the ranks of the County Execu-
tive, to private business representatives, to organized labor, to yours truly. While
much of the attention from the media focused on the competition for scarce State
funding, the council focused on an economic development plan to benet our region.
As this regional planning effort was winding down, STEG’s capital campaign, Prospects
Progress Partnership 2012-2016 was initiated. When providing information to our
consultants to generate a Return On Investment analysis, I was asked how many jobs
will be created in Chemung County over the next 5 years and what wage rate can be
anticipated? This was probably the most complicated question I have been asked all
year. With natural gas exploration scheduled for 2012, coupled with a lingering severe
international economic recession it is difficult to predict the immediate future. The
greatest challenge to our region will not be to supply labor for gas exploration, but
rather to insure that when the international economy improves, that there is suffi-
cient labor to meet the demands of our diverse manufacturing base. This will remain
a primary initiative of STEG’s for the coming years.
Thank you for your investment in STEG and the economic prosperity of our region.
George E. Miner
President
Message From the Chairman
My rst year as Chairman of STEG’s Board of Directors has been more diverse than I had
anticipated. While STEG is working to help businesses like CAF, Sikorsky, Meier Industries
and Chemung Supply Corporation grow; and we cut a ribbon on the new CVS Distribution
facility in Chemung, the agency has been much more involved with other aspects of eco-
nomic development than ever before. STEG commissioned a housing study to conrm
that new multi-family housing was needed and to encourage the development of Colonial
Manor Apartments and a new extended stay hotel, Candlewood Inn & Suites. More
apartments and hotels are on the menu for 2012 to meet the growing housing demand of
people working in and around Chemung County.
A major focus for STEG for the coming years will be workforce development. The ability
of existing businesses to compete is contingent upon a trained, educated and available
labor force. The ability to balance the workforce needs of new and expanding businesses
is a delicate task that STEG, along with its education and training partners is ready to un-
dertake.
For those businesses which have already contributed to STEG’s Capital Campaign, your
support is greatly appreciated. For businesses who have never been asked to contribute,
or have not yet determined their level of participation, I encourage you to invest in
Chemung County’s future.
Arthur D. Ambrose
Chairman
Contact
Southern Tier
Economic Growth
400 East Church
Street
Elmira, NY 14901
P 607-733-6513
F 607-734-2698
www.steg.com
2011 STEG Budget
Income
Chemung County $ 60,000.00
City of Elmira $ 30,000.00
Town of Big Flats $ 5,000.00
Town of Chemung $ 5,000.00
Town of Elmira $ 7,500.00
Town of Horseheads $ 10,000.00
Town of Southport $ 15,000.00
Town of Ashland $ 1,000.00
Village of Elmira Heights $ 5,000.00
Village of Horseheads $ 10,000.00
Municipal Grants $ 1,000.00
Private Business Contributions $144,000.00
Chemung County Industrial Development Agency $ 90,000.00
Fees & Interest $180,550.00
TOTAL $563,050.00
Expenses
Salaries/Fringe $438,750.00
Facilities/Utilities $ 13,400.00
Equipment/Supplies $ 23,200.00
Project Costs $ 25,000.00
Marketing $ 10,000.00
Fund Drive $ 52,700.00
TOTAL $563,050.00
Tara J. Cofone
Business Manager
Mary K. Rocchi
Administrative Assistant
STAFF
George Miner
President
Sherri Geary
Economic Development Specialist
Village of Horseheads
Staff has been working with Village offi-
cials, Community Progress and business-
es to eliminate vacant storefront space
and attract businesses to the village.
After several weeks of planning, the
Merchants Association kick off was held
at Village Hall on November 17th.
Many
of the Village businesses attended the
session.
Village of Elmira Heights
Efforts are underway with Village offi-
cials, STEG and Community Progress to
secure a partnership with Cornell Uni-
versity’s Design Connect program to
assist the Village of Elmira Heights with
architectural design guidelines to pre-
serve and rehabilitate historic buildings
in the Village. Staff is facilitating a village
wide survey, as part of the process. An
application to Cornell University’s Design
Connect program was submitted in early
December for acceptance into their pro-
gram.
Loan Programs
Elmira
In early 2011, Carbide USA utilized
$100,000.00 from the City loan fund to
purchase machinery and equipment for
the property located at 100 Home
Street. The property had been vacant
since 2006. This project focused on
scrap recycling using the material to re-
manufacture carbide for use in their
center less grinding and brazing opera-
tions. Carbide USA projected the crea-
tion of 9 full time jobs.
Lakestreet LLC
In Spring of 2011, Lake Street LLC re-
ceived a loan in the amount of
$200,00.00 to relocate several manu-
facturing businesses into one location.
An expected 14 new jobs will be created.
Twin Graphx Located on Water Street,
Twin Graphx received a $30,000 loan to
purchase screen printing and embroi-
dery equipment. Two full time jobs will
be created.
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3
Natural Gas Industry Finds a Home in Chemung County
While a moratorium on natural gas exploration persists in New York, gas related companies continue to nd a home for
their business in Chemung County. To date, over one million square feet of commercial buildings have been leased,
purchased, or constructed in Chemung County, housing 28 energy companies and their employees.
Schlumberger, to date, has constructed over 110,000 sq. ft. of new buildings on 85 acres the company purchased to
house the various technology services it provides to gas drillers in Pennsylvania. Schlumberger has already met its pro-
jected employment goals when initiating their New York based operations of 400 employees.
Schlumberger is located at the Center at Horseheads, which is also home to other companies serving the Marcellus
Shale play in Pennsylvania. Like Kayden Industries, headquartered in Calgary, who purchased a ve acre parcel and con-
structed a 10,000 sq. ft. building to support the company’s Centrifuge and Dewatering Systems. Another neighbor is
Gas Field Specialists, with 20 acres of land and 35,000 sq. ft. of building providing gas pipe and specialized equipment
to the industry. All totaled over 1,000 gas related workers are based out of Chemung County.
Why are these businesses here instead of Pennsylvania? Chemung County has the infrastructure necessary to support
new businesses and in particular, the gas industry, like Norfolk Southern Railroad, Interstate 86, housing, services and
commercial airport. Equally attractive is Chemung County’s location in the center of the gas rich Marcellus Shale region
of New York and Pennsylvania. One piece of infrastructure in Chemung County that wasn’t intended for use by gas
drilling in Pennsylvania and New York is the Millennium Pipeline. The pipeline, running from neighboring Steuben
County to the suburb of New York City, went into service in 2008. The pipeline interconnects with the Trans Canada
Pipeline at Niagara Falls via the Empire Pipeline and was intended to bring Canadian natural gas into the northeast mar-
ket after gas prices spiked considerably after Hurricane Katrina in the Gulf of Mexico. The pipeline now serves as the
primary transmission source for natural gas harvested in Northern Pennsylvania. The Millennium Pipeline is now ow-
ing gas out of the Twin Tiers not into it.
Warehouse/Distribution Space Reaching Full Occupancy
Ten years ago, Texas based Sysco Foods shut down its 73,000 sq. ft. distribution center in Horseheads, dis-
placing over 250 workers. Within six months, the facility was acquired by Pepsi Bottling Group who made
the facility its new regional distribution center. Since that time, warehouse and distribution space has been
at premium.
The long vacant Remington Rand plant in Southport has received a huge facelift thanks to investors Equilibri-
um Equities who took a half million square foot eyesore adjacent to Southside High School and transformed
the property into a 100% occupied distribution and manufacturing center. The property purchased from Ty-
co, Inc., is located on 48 acres and shares a property line with Norfolk Southern railroad. Earlier in 2011, the
Town of Southport approved a site plan for a new rail spur(s) to hopefully serve a trans-loading facility in the
near future.
The 280,000 sq. ft. Flickingers Distribution Center in Horseheads was originally constructed as a food distri-
bution facility for now defunct Super Duper grocery stores. Acquired by the owner of Horwitz Packaging, the
property has remained fully leased to various users in addition to Horwitz for over a decade. Horwitz Pack-
aging’s old warehouse on Philo Road is now home to Godwin Pumps who have upgraded the 27,000 sq. ft.
facility to serve the natural gas industry.
This fall, Southern Tier Logistics leased 125,000 sq. ft. of the former Toshiba plant providing third party ware-
house services to various companies including Corning Inc., Crown Tank Company, who manufactures mobile
liquid storage tanks for the gas industry, has also located into this building
Annual Report 2011
CVS Distribution Center Grand Opening
Over 90 New York State businesses contributed labor or materials to construct the
$90+ million CVS Chemung Distribution Center over the past two years. The 751,000
square foot facility, constructed on 148 acres in Chemung is the largest building in
New York to receive LEED Gold Certification. Over 300 full-time employees have
been hired to date, with 600 projected by the end of 2012, serving over 350 CVS
stores in the northeast region.
Representatives of NYSEG, Tri-County Rural Electric Cooperative, Aqua Pennsylvania
and Athens Township Sewer District, joined STEG, CVS and various levels of elected
5
The demand for hotel rooms and apartments in the Chemung Valley remained strong in 2011. Following
the construction of a new Hampton Inn in 2010, and an extensive renovation to the Elmira Holiday Inn, a
new extended stay hotel, Candlewood Suites opened in Big Flats this past fall. A new Faireld Inn is
planned for construction in 2012 in the same corridor, this time across I-86 in the Town of Horseheads.
Much of this demand for rooms, especially extended stay rooms, has been brought by natural gas explora-
tion in Pennsylvania. With natural gas exploration scheduled to be resumed in New York in 2012, more
temporary and long term housing is anticipated.
One hundred forty four new apartments called Manor View Apartments are being constructed by Elmira
Structures in the Village of Horseheads to help meet the demand for multi-family housing in the Twin Tiers.
A recent housing study commissioned by STEG revealed a 100% occupancy rate for apartments in Chemung
County.
Hotel and Apartment
Demand
Soars in 2011
Colonial Apartment Complex
