CoreNet Global 2005 Economic Development Leadership and Accomplishment Award Major Projects/Deals

1. CoreNet Global 2005 Economic Development Leadership and Accomplishment Award Major Projects/Deals Commonwealth of Pennsylvania Department of Community and Economic Development David J. Yeager, Director Governor’s Action Team

2. Governor’s Action Team -- Primary Dealmakers reporting to Governor Ed Rendell • Part of the Pennsylvania Department of Community and Economic Development reporting to Secretary Dennis Yablonsky • 20 Development Specialists/10 Support Staff • Harrisburg, Philadelphia, Pittsburgh, Lehigh Valley, Scranton, Erie, State College • Single Point of Contact (Public and Private Sectors)

3. Pennsylvania = Diversity • Ranked 3rd in the U.S. for Industrial Diversity#1 in the Northeast • “Like a healthy investment portfolio, a state’s traded sector should have diversity and not be too dependent on the fortunes of any one industry.” • Corporation for Enterprise Development 2005 Report Card • 6th Largest State in terms of Population • 16th Largest Economy in the World

7. Governor Ed Rendell’s Economic Development Strategy: • Opportunity is Present from Border to Border • in Pennsylvania • “Our goal from the beginning has been to develop and economic stimulus plan that will create jobs, retain talent, “jumpstart” the economy and position Pennsylvania for success in the 21st century.” • - Aconcagua Timber Company Announcement, August 14, 2004 • NEED MORE TOOLS

8. Diverse Arsenal of Economic Development Programs • Traditional Programs: Grants, Tax Credits, and Low Interest Loans • Private Sector Partnerships: Citizens Bank, Sovereign Bank ($350M) • BOLSTERED BY A $2 .3 BILLION ECONOMIC STIMULUS PACKAGE • PLUS LEVERAGING $5 BILLION IN PRIVATE SECTOR FUNDING

9. Economic Development Strategy Focuses on • Retention and Attraction • Business Retention and Expansion Program (BREP) • Largest statewide retention program in the country • Visit with over 9000 companies a year • Over 850 companies provided direct assistance since July 1, 2004

10. Economic Development Strategy Focuses on Retention and Attraction GAT Attraction, Expansion, and Retention Activities • Local Economic Development Partners • Utility Economic Development Offices • Real Estate Brokers • Developers • Site Selection Consultants

11. Economic Development Strategy Focuses on Retention and Attraction • GAT Top Projects Reflect Strategy • 25% Retention • 30% New Business Attraction • 45% Retention/Expansion

12. Overall GAT Impact • GAT performance 2003 vs. 2004 • Number of new projects increased by 54% • Number of offers made increased by 76% • Number of projects successfully completed increased by 65% • Total project cost increased by 75%

13. 2004 GAT Deals • 316 Offers Made • 250 Offers Accepted • 215 Successfully Completed Projects • 19,738 New Job Creation • 58,515 Jobs Retained • Nearly $2.8 Billion Total Investment

14. 2005 GAT Performance Continues! January 2005 – 42 Offers Made! HIGHEST EVER!!!

18. Top Projects Return on Investment • “Benefits Far Outweigh the Costs” • Average state incentive is $15,304 per new job created • Per worker incentive is $2,922 (created and retained)

19. On average, 7% of the total project cost is financed with state funds.

20. Compelling Projects • COMCAST • Bold strategic thinking • Growing/dynamic industry • Merck • Strong competition with New Jersey • Olympus • Creative solution • Aconcaqua Timber • Foreign investment transaction • Capitol Title Group • Community development partnering

21. Where Do We Go From Here? • Global Competitiveness Analysis, Strategy and Marketing • Proactive/Reactive • Fine Tune our Strategy

22. THANK YOU!