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City of Lancaster
Economic Development
Marketing Plan
R. Michael Pettit, Development Director
in association with M. Arcari Associates, LLC
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The following is
taken from the City of Lancaster's recently
completed Economic Development Marketing Plan and
provides a sense for the targeted focus of the City
of Lancaster's proactive program for business
recruitment. |
Table of Contents
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Introduction & Current Overview
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City of Lancaster Industrial Park Map
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Key Competitive Assets
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Targeted Business Attraction
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Business Incentives
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Tax Incentive Policy
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Other Business Assistance
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Introduction
The City of Lancaster has the opportunity to pursue
a program of vigorous economic growth for the
community. The City and surrounding area possess a
number of assets which can provide the foundation of
an economic development initiative resulting in the
increase of jobs, investment and economic vitality
to Lancaster and Fairfield County. The key to
success is to ensure that all of these resources are
utilized in a timely and well-coordinated fashion to
realize the maximum benefits to the community. |
| Lancaster has two primary areas for
economic development focus. The first is the
Rockmill Industrial Park area (see map). The
City works in close partnership with the local
Lancaster Area Community Improvement Corporation in
the development of this rapidly growing westside
industrial district. Businesses operating in the
park are of a diverse nature with the largest,
Anchor Hocking Distribution and Crown Cork and Seal,
employing over 300 of the area’s total of 670. The
total area of Rockmill is presently 345 acres
including 2.2 MM sq. ft. of buildings, with future
expansion possibilities of up to 625 acres. |
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The industrial area interfaces with U.S. Rt. 33 via
Collins/Lithopolis Roads and West Fair Avenue. The
new Rt. 33 Lancaster by-pass will provide immediate
access to the park at the St. Rt. 188 interchange.
Rail service is feasible via a short line provider,
Rail America, which connects with CSX Transportation
in Columbus.
Both water and sewer services are provided to the
industrial area by the City of Lancaster, which has
adequate current capacities and expansion plans
underway for future growth. The area is served with
electricity by South Central Power Company and
natural gas is provided by the Lancaster Municipal
Gas Company, which has its service and maintenance
facility located in the Rockmill area on Campground
Road.
Air passenger transportation is available from Port
Columbus International Airport in Columbus, and the
Fairfield County Airport has nearby facilities for
private and corporate aircraft. Express air freight
services are available at the Rickenbacker
International Airport in Columbus.
Another prime location for industrial and commercial
development is the Quarry East Commerce Park area
(see map). Located adjacent to St. Rt. 22,
approximately 2 miles east of U.S. Rt. 33, this area
is home to major production facilities for Ralston
Purina and Diamond Power. Large site possibilities
of up to 200 acres with full utility services
(water, sewer, gas, and electric) are available. The
City provides municipal water, sewer, and gas
services to the industrial area, and American
Electric Power is the provider of electricity. An
existing Rail America line connects with CSX
Transportation in Columbus for immediate rail
service. The Quarry East Commerce Park has over 500
industrial zoned acres in the vicinity ready for
development.
Other areas with potential for continued industrial
and commercial growth include the Lancaster
Industrial Park and the Hubbard Industrial
Park. Lancaster Industrial is owned by the City
and offers small users (1-5 acres) attractive
location alternatives within the Rockmill area.
Hubbard Industrial is located just off U.S. Rt. 33
in the northwestern part of Lancaster and has
property available for development. Both parks are
fully served by utilities and have excellent
transportation access. |
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With the completion of the new $160 MM U.S. Rt. 33
Lancaster by-pass (1st phase to the Rockmill
Industrial Park later this year, and total project
by 2005) many of the valuable business and cultural
resources of the Lancaster community will become
even more accessible to the Central Ohio region,
other parts of the state and the rest of the
country. The reduction in travel time for both cars
and trucks traveling the U.S. Rt. 33 Corridor
through Lancaster will result in |
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the
community being a more attractive place to do
business. Coupled with the completion of the Hill-Diley Interchange in 2004
and ODOT’s overall efforts to return Rt. 33 to a
limited access highway, there will be increased
opportunities for business attraction and expansion
in the City. Some of the area’s key assets which
will enhance this growth include: |
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Available Skilled
Workforce – A reduction in the
manufacturing sector over the past 20 years has
resulted in a loss of employment opportunities for
local workers with advanced skills. Over 50% of the
Fairfield County’s 60,000 workforce travel to
Franklin and other surrounding counties for better
employment opportunities each day. In addition,
there are labor surpluses in counties southeast of
Lancaster including: Hocking, Vinton, Meigs, and
Athens which will have shorter commute time with the
completion of the by-pass. |
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Easy Access to
Markets/Customers/Suppliers – Businesses
can reach out to over 60% of the North American
population in one day’s truck drive from Lancaster
industrial parks. The by-pass will enable quicker
drive times to Central Ohio and other regional
markets for product and service delivery. This is
especially important for “just-in-time” industries
such as auto and truck parts manufacturers and
distribution centers. |
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Competitive Land Cost
– In comparison to Columbus and other suburban
Central Ohio competitors, Lancaster industrial
property cost is at least 30-50% less. This lower
land cost can be a deciding factor on projects that
require large tracts. |
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Reasonable Property
Taxes – Fairfield County tax rates
are at least 30% lower than communities in Columbus
and its surrounding suburbs. This rate difference is
before any tax incentives. |
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Available Services and
Suppliers – Lancaster and Fairfield
County have a surplus of small to medium size
companies providing custom machining, welding, metal
fabricating, and other services necessary to support
value-added manufacturing industries such as auto
parts, plastics, glass, and packaging. |
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Education & Training
Resources – Ideally situated midway
between the main campuses of both the Ohio State
University in Columbus and Ohio University in
Athens, employers have access to student populations
in excess of 75,000 and extensive academic programs
from business to scientific research. Locally the
Ohio University Lancaster branch offers a wide range
of courses leading to a 4 year bachelor’s degree.
Hocking College in nearby Nelsonville offers 2 year
programs including nursing and environmental
studies. |
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Proximity to Urban
Amenities – Lancaster is just 30
minutes from the “big city” activities of Columbus.
Professional hockey and soccer, museums, theaters,
restaurants, and up-scale shopping mall experiences
are a short drive away. |
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Access to Airports
– Both Rockmill and Quarry Road are ideally situated
between two major airport facilities in Columbus.
Port Columbus International Airport for passenger
flights and Rickenbacker International Airport for
air freight and charter service are 30 minutes by
car. Less than 5 minutes from Rockmill on U.S. Rt.
33 is the Fairfield County Airport with facilities
for private and corporate aircraft. |
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Gateway to Parks and
Recreation – In addition to the local
recreation & leisure possibilities afforded by
attractive city parks, the Lancaster area also has
convenient access to a number of beautiful state
parks in the nearby Hocking Hills and surrounding
area. Boating, fishing, horseback riding, hiking,
and relaxation at a bed & breakfast or state lodge
are less than a half hour drive from the City. |
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Targeted
Business Attraction
The key location assets previously identified help
to provide a basis for the types of industries which
will be actively recruited to the Lancaster
industrial park community. These strategic resources
will be utilized to promote the attraction of
specific types of businesses to the area. With this
in mind, the industry targets are a mix which
(1) will enhance and add to the diversity of the
current business population (2) increase essential
tax base in the area (3) pursue the highest quality
of jobs and investment and (4) provide an overall
balanced approach to economic development for the
City.Targeted Sectors |
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Glass Industry & Related
Activities – With almost a century of
tradition in the glass industry, and local companies
with the name recognition of Anchor Hocking and
Lancaster Glass, Lancaster is a “natural” for
businesses looking for the products and services
associated with the glass industry. Glass and
related activities still employ over one third of
the manufacturing workforce. Companies that
manufacture, process, or utilize glass products in
their operations are important to the long term
success of glass production in Lancaster. Targeted
areas for recruitment include:
- House wares
- Decorative & Specialty Glass
- Industrial & Laboratory Glass
- Medical Glass
- Other Glass Product
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Additionally, to enhance upon the existing glass
industry, make use of the abundant local technical
expertise and diversify the business activities
associated with it, the following sectors are also
included for targeted attraction:
- Food Products
- Cosmetics
- Body & Personal Care Products
- Product Packaging & Labeling
- Lighting
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Medical
Services/Health Care Products – The
Fairfield Medical Center in Lancaster provides a
wide range of medical services for Fairfield and the
surrounding rural counties of Perry, Hocking,
Vinton, Meigs, and Athens. With the hospital
currently expanding its 222 bed main facility, an
increase in professional staff, and plans to offer
additional services, FMC is a catalyst for economic
growth in the City. Business activities which will
lend synergy to the hospital’s efforts and also add
great value to the local economy include: |
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- Medical Equipment Vendors
- Medical Product Suppliers
- Medical & Biotechnology Research
- Innovative Medical Technologies
- Nursing and Healthcare Professional Training
Programs
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General Manufacturing
– The area is currently home to a wide variety of
traditional business activities which are supportive
to the manufacturing industry. Lancaster and
Fairfield County have numerous small to mid-size
machine shops, welding operations, and metal
fabricators, serving the local and Central Ohio
markets. With improved transportation accessibility
of the U.S. 33 by-pass, there are tremendous
opportunities for companies looking for proximity to
qualified suppliers and the available workforce of
Southeastern Ohio. Companies benefiting from a
Lancaster industrial park location would include: |
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- Auto Products
- Home Appliances
- Electrical & Electronic Products
- Tool & Die Manufacture
- Plastic & Polymer
Products
- General Assembly Operations
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Printing and
Publishing – Lancaster is home to a
variety of printing operations. From industry
leader, Cyril-Scott Co., Inc., with over 350
employees to smaller independent operations, there
are 18 printing companies in the area with a
workforce of 650. In fact, the printing industry
employs approximately 8% of the manufacturing
population in the Lancaster area. Offering services
including: offset printing, typesetting, and book
binding, these companies and workers are a valuable
resource to the commercial printing industry, as
well as retailers, marketing and advertising firms,
educational and training organizations, and assorted
other business activities. Operations for attraction
in this category include: |
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- Advertising and Marketing
- Education and Training Publications
- Independent Magazines and Journals
- Labeling and Packaging
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Distribution Centers
– The excellent transportation and marketing
logistics associated with the new U.S. 33 by-pass
interchange at the Rockmill Industrial Park make
this area a natural magnet for product warehousing,
distribution, and servicing. Small to mid-size
facilities (100,000-300,000 sq. ft.) with owner
occupants are best suited to this sub-regional
market location. This type of targeting avoids
direct competition with the Rickenbacker area
communities that have immediate interstate access,
existing developer-owned industrial parks, and a
distinct advantage with mega warehousing and
distribution operations. Encouraging the development
of the smaller, multi-tenant buildings also will
present opportunities for a wider range of local
users. |
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- Small to Mid-size
- Company Owned
- Spec Developed for Multi-tenant Use
- Assembly & Packaging Operations
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Small to Mid-size
Professional Service Firms – There is
also a need for technical service providers for the
industrial, commercial, and residential growth in
the area. Located at the center of one of the
fastest growing counties in the state, Lancaster has
opportunities for mixed development which will
include a wide range of office operations that
create high paying professional jobs. Some of the
interest in this sector may come from firms already
doing business in the Central Ohio market from
Columbus and suburban locations. New “spin-offs”
from these operations, plus local professionals with
the potential to work closer to home in a “small
town” environment will be likely targets for
establishing new businesses. Firms in this category
include: |
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- Engineering
- Environmental
- Design
- Telecommunications
- Architectural
- Research & Development
- Data Processing
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Call/Service Centers
– Telephone service centers ranging from
telemarketing of products and services to
maintenance and servicing of existing accounts can
create optimum levels of employment per developed
space. A 10-20,000 sq. ft. building space can create
100-200 jobs. Although not as high paying as
manufacturing or technical positions, wages compare
to distribution facilities and hours are flexible
and geared toward a part time, student, or second
job possibility. Typical call centers will be located
in an industrial or mixed office/industrial setting
and present attractive building alternatives. |
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- Consumer products and services
- Financial
- Insurance
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Business Incentives
In the competitive market of Central
Ohio, there are a host of communities each promoting
its location as most beneficial for business. In
order to compete on a “level playing field” with
Columbus and the surrounding suburban communities,
the use of all possible business incentives will
be considered. Especially when considering the
addition of businesses that will create high paying
jobs, large capital investments, involve innovative
technologies, or add other benefits to the local
community, it is crucial to be able to offer the
type of local inventive that will “close the deal.”
Tax Incentives
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Enterprise Zone (EZ)
– The Fairfield County EZ provides tax abatement for
real and tangible personal property for up to 10
years. The maximum level of abatement in the City of
Lancaster under this program is 75%. The E Z tax
exemption is negotiated with a team of local
representatives which makes its recommendation to
the Fairfield County Commissioners for approval. The
EZ program is especially attractive to companies and
projects that are making substantial investments in
tangible personal property including machinery and
equipment. EZ is available at both Rockmill and
Quarry Commerce Center. |
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Community
Reinvestment Area (CRA) – provides
tax abatement for improvements to real property. The
City of Lancaster presently has a CRA in place at
Rockmill Phase I and has the ability to extend it to
new areas as the park grows. This tax abatement
program provides 100% tax exemption for up to 12
years for new building facilities and other
improvements to property. The abatement program is
especially attractive to industrial and commercial
developers who can utilize the tax break as an
inducement with potential end-users. The program is
administered locally by the City of Lancaster. |
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Foreign Trade Zone (FTZ)
– is a federal program which provides tax benefits
for certain operations. The Rockmill Industrial Park
contains 44 acres of FTZ property in which stored
merchandise is considered to be in international
commerce and not in the U.S. for Customs purposes.
The FTZ also provides exemption from the Ohio
inventory tax portion of the tangible personal
property tax. Location in the FTZ area of Rockmill
can greatly reduce property taxes for companies with
sizeable inventories. |
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Tax Incentive Policy
It is critical that any tax
incentive or business assistance be directed to
accomplish the marketing objectives of the City of
Lancaster. Inducements will be weighted to achieve
the maximum affect on job creation and investment,
quality of business activity, and overall impact on
the community. With this in mind, the following is a
list of qualities that will be carefully
considered in determining levels of abatement.
Greater incentives will go to projects that:
- Create high paying jobs
- Create high capital investment
- Create innovative and high tech. jobs
- Enhance existing local industries
- Do substantial business locally
- Contribute locally to schools, community, and other organizations
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Fairfield County Job &
Family Services – offers a wide
variety of resources for employers at no cost. The
job development team works with employers to
determine what their current and future needs are
for their workforce and to assist in meeting those
needs. Resources include free web-based job
postings, the opportunity to review resumes of
potential employees on-line, a professional
recruiting and interviewing facility, and job fairs.
The FCJFS staff has proven success assisting a wide
range of employers. |
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Fairfield County
Revolving Loan Fund – offers low
interest loans to companies with no more than 200
employees. The maximum loan amount is $60,000 and
can be used for new construction, purchase of real
estate, machinery & equipment, and a portion of
working capital needs. Terms are based on asset life
with a maximum of 15 years for land and buildings.
Interest rates can be up to 4 points below prime. |
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Tax Increment Financing
(TIF) – permits service payments in
lieu of real property taxes to be used for the
finance of public infrastructure improvements
connected to a development project and declared to
have a “public purpose.” Up to 75% of real property
taxes can be exempted for up to 20 years to cover
the costs of road, water, sewer, and other public
improvement. The City of Lancaster has the ability
to approve the establishment of a TIF district for
the affected property(ies) and thus creating an
income stream for the repayment of important
development infrastructure costs. |
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Infrastructure Grants
– are available to a local political subdivision
such as the City of Lancaster on a case-by-case
basis from the Ohio Department of Development. These
grant programs are targeted toward road
improvements, utility extensions, and other
infrastructure needs which are instrumental in
making a project go forward. ODOD considers the job
creation and investment level when determining grant
amounts. The City of Lancaster must apply for the
assistance on behalf of the project. |
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Other State Programs
– depending on the type and size of project, the
State of Ohio has a wide range of programs to assist
companies creating employment and investment. These
programs include business income tax credits, cost
reimbursement and tax credits for employee training,
and tax break for new equipment and warehouse
inventory. The City will actively pursue these
options for eligible projects. |
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