www.fcadc.com1

FCADC BOARD OF DIRECTORS(2008)

OFFICERS

ChairCharles Sioberg Mar n & Mar n, Inc.

Vice ChairGreg Duff eyCraig, Friedly, Po er, and Moore Insurance Agency

SecretaryDalton Paul Former Director, Franklin County Career & Technology Center

TreasurerDawn Keller M&T Bank

President L. Michael RossFCADC

DIRECTORS

James Duff ey Franklin County Career & Technology Center

Brad EverlyShippensburg Area Development Corpora on

Dan FisherDL Mar n Company

Gary Gembe Greencastle-Antrim Area Development Corpora on

Dr. David Gnage Penn State Mont Alto

Mary-Anne GordonMercersburg Area Chamber of Commerce

Bill Gour Greencastle-Antrim Chamber of Commerce

Bruce HockersmithShippensburg Area Chamber of Commerce

Jim Junkin Franklin County Farm Bureau

David KellerFranklin County Commissioner

John McDowell First Na onal Bank of Greencastle

Jim RockWaynesboro Industrial Development Corpora on

William (Buzz) Shank Franklin County Industrial Development Authority

David Sciamanna Greater Chambersburg Chamber of Commerce

Bob ThomasFranklin County Commissioner

Carlene WillhideGreater Waynesboro Chamber of Commerce

Bob ZiobrowskiFranklin County Commissioner

SolicitorJohn McD. Sharpe, Jr.Sharpe & Sharpe, LLP

AccountantEd StraleyBoyer and Ri er

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2008 Annual ReportChairman’s Message

As Chairman of the Franklin County Area Development Corpora on’s Board of Directors, I am pleased to provide you with our 2008 Annual Report.

Over the past 23 years, the FCADC has taken a proac ve approach to ensure that the Franklin County economy remains strong enough to weather any downturns in the local, na onal, and global markets. It’s no secret that in 2008 we experienced one of the most turbulent economic

climates in memory…if not in history. However, as fi nancial sector bailouts, a crumbling housing market, and threatened bankruptcies of Detroit’s “Big Three” dominated the media, the FCADC quietly had one of its most successful years ever.

In 2008, the FCADC was an ac ve par cipant in 41 successful economic development projects totaling over $26 Million of investment, of which more than $14.3 Million was in the form of low interest fi nancing provided directly through the FCADC. Addi onally, we completed construc on on two major industrial buildings within the County while at the same me announcing the start of construc on on a third. Meyer Distribu ng, Inc., an Indiana based distributor of truck parts, is currently leasing a 15,000 square foot industrial building located on the FCADC Gateway Parcel at the Cumberland Valley Busi-ness Park. The Meyer facility was completed in July and represents a total investment of $1 Million. In December we completed construc on of a 34,950 square foot manu-facturing and offi ce building for Tilman Dump Trailers, LLC, which is being leased. This facility is also located within the Cumberland Valley Business Park and represents over a $2.5 Million investment. Finally, one of the most exci ng projects involving the FCADC was announced in December. Vacon, Inc., a global leader in the design and manufac-ture of alterna ng current drives has entered into an agreement with the FCADC and Chambersburg Area Development Corpora on (CADC) (jointly opera ng as CFDC, LLC) for the design build of their North American headquarters. The 69,000 square foot facility is currently under construc on on Lot 28 within the Chambers-5 Business Park and represents an investment of $8.5 Million (total project cost will be in excess of $9 Million). The Company will take occupancy of the facility in November 2009. At a press conference announcing the construc on, the joint venture between FCADC and CADC was recognized by Governor Rendell for its crea vity in bringing the project to frui on.

Although a poten al deepening of the current economic crisis is certainly possible, the past year has proven to be indica ve that things in Franklin County are moving forward in a posi ve direc on. The FCADC takes nothing for granted and remains commi ed to its core mission of balanced economic growth. We fi rmly believe that the challenges posed by today’s economy will ul mately result in opportuni es for tomorrow’s growth.

CHARLES SIOBERG

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FCADC MissionThe FCADC is charged with formula ng, implemen ng, and promo ng a comprehensive county-wide economic development strategy. The Corpora on strives to create an atmosphere that nourishes planned growth and family sustainable employment opportuni es.

Business Reten onReten on and expansion of exis ng companies is the cornerstone to any successful economic development strategy. The FCADC staff spends approximately 90% of its me and resources assis ng Franklin County fi rms. Working in coopera on with Team PA, the staff conducted 116 industry surveys during 2008. The informa on provides fi rst-hand knowledge of issues impac ng local businesses. The FCADC supported the reten on and expansion of 41 companies within the County, including the comple on of at least one project in each school district.

Selec ve A rac on The a rac on of new industries is intended to diversify and strengthen the local economy. The FCADC staff provides a vast array of services to those companies considering reloca ng to Franklin County. In 2008, the FCADC provided informa on and assistance to 25 companies looking to locate in the County.

Start-UpThe Corpora on spends considerable me assis ng individuals considering business start-ups. The staff is well acquainted with resources and programs that lower the costs of ini a ng and opera ng a successful enterprise. In 2008, the FCADC supported several start-ups in the County; among those new start-ups are River Raider Snorkel Systems, ACS Precision, LLC, and Green Concrete Works.

FCADC ServicesThe FCADC provides a host of services including:

Site Loca on…Maintains a county-wide inventory of industrial sites and buildings

Financing…Markets, packages, and administers low-interest loans through the PA Department of Community & Economic Development and the Small Business Administra on

Facilita on…Brings together diverse interests in support of a common goal

Liaison…Maintains eff ec ve rela onships with DCED, the Governor’s Ac on Team, and elected offi cials serving Franklin County

Leadership in iden fying and suppor ng issues that impact the enhanced economic vitality of Franklin County

Informa on…Provides comprehensive socio-economic data for the County. All FCADC informa on is documented and updated as changes occur.

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TOP TEN IN FRANKLIN COUNTY, PAEmployers

1. Le erkenny Army Depot 3,400 2. Summit Health 2,8003. Manitowoc Crane Group 1,8004. Chambersburg Area School District 1,400 5. Franklin County Government (County Offi ces) 9506. Volvo Construc on Equipment 800 7. Target Distribu on Center 6008. Johnson Controls, Inc. / Frick Co. 5759. Food Lion, Inc. 550 10. Waynesboro Area School District 500

TOP TEN MANUFACTURING EMPLOYERSFranklin County, PA

1. Manitowoc Crane Group 1,8002. Volvo Construc on Equipment 8003. Johnson Controls, Inc. / Frick Co. 5754. Mar n’s Famous Pastry Shoppe, Inc. 4855. TB Wood’s, Inc. 4406. Oshkosh Corpora on Co. (Jerr-Dan Corp.) 3657. Ventura Foods, LLC 350 8. Beck Manufacturing (two loca ons) 3259. Eldorado Stone, LLC 30010. Valley Quarries, Inc. 300

TOP TEN DISTRIBUTION/LOGISTICS EMPLOYERSFranklin County, PA

1. Target Distribu on Center 6002. Food Lion, Inc. 5503. World Kitchen, LLC 450 4. Ingram Book Company 440 5. K-Mart Chambersburg Specialty Center 4006. Staples Direct 325 7. Na onal Book Network 325 8. Cressler Trucking 250 9. Amazon.com 15010. Hagemeyer North America (Tri-State Electric) 150

*Employment is approximate*Prepared by the FCADC, January 2009

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Since 2003, Franklin County has led the state in the number of Small Business First Fund loans provided to business and industry.

2008 Successful ProjectsCompany Loca on Low Interest Financing

1. Alpha Space Control Company, Inc. Chambersburg $200,0002. 5K Logis cs, Inc. Chambersburg $200,0003. Tilman Dump Trailers, LLC Chambersburg $100,0004. JA Davis & Sons Falling Spring Decorators Chambersburg $37,5005. Le erkenny Army Depot Chambersburg $416,0006. Le erkenny Army Depot Chambersburg $312,0007. Step by Step Dance Studio, LLC Chambersburg $50,0008. River Raider Snorkel Systems Chambersburg $50,0009. 7P’s Deli & Catering Chambersburg $32,00010. David Alexander Insurance Agency Chambersburg $100,00011. Huber-Coleman Auto Repair Solu ons, LLC Chambersburg $50,00012. Guilside Farm Chambersburg $171,13513. Route 5 Retail Stores, LLC Chambersburg $200,00014. Childhood Early Interven on, LLC Chambersburg $50,00015. Vacon, Inc. Chambersburg $9,057,00016. Gish Logging, Inc. Fort Loudon $137,50017. Precision Manufacturing & Engineering Co., Inc. Greencastle $150,00018. Antrim Restaurants, Inc. Greencastle $200,00019. Franklin Barr (Farm) Greencastle $200,00020. Gate 7, LLC Greencastle $78,00021. AJ Stove and Pellet, LLC Marion $50,00022. ACS Precision, LLC Mercersburg $200,00023. Just Wood Industries, Inc. Mercersburg $250,00024. Lee David Group, LLC Mercersburg $50,00025. Armaclad Doors and Windows, LLC Quincy $100,00026. Mar n Custom Farming Shippensburg $150,00027. Paul Wi er (Farm) Shippensburg $200,00028. Superior Sep c Systems, Inc. Shippensburg $200,00029. PA Lyn-Leigh (Farm) St. Thomas $200,00030. M&K Market, LLC Waynesboro $50,00031. Gareth & Tina Myers (Farm) Waynesboro $100,00032. Rebuilders Unlimited, Inc. Waynesboro $120,00033. M.E.L’s Landscaping Waynesboro $200,00034. Rita’s Italian Ice Waynesboro $50,00035. Tri-Fab, Inc. Waynesboro $25,80036. Garden Light Healing Center Waynesboro $50,00037. Golden Corral Waynesboro $50,00038. Green Concrete Works Waynesboro $250,00039. Navitor, Inc. Waynesboro $150,00040. Just ‘N Case Commercial Hardware Waynesboro $50,00041. The Tennis Club Zullinger $50,000

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Industry Sector Breakdown (By Number of Projects)

2008 Successful Projects Summary Total Projects 41 Total Project Investment $26,142,007 Total Low Interest Financing $14,386,935 New Jobs Created 274 Exis ng Jobs Retained 615

FCADC / Meyer Distribu ng, Inc. facility located on Sunset Pike in Chambersburg

FCADC/Tilman Dump Trailers, LLC facility located on Opportunity Avenue

in Chambersburg

2% Educa�on5% Recrea�on, Arts7% Construc�on

7% Retail Trade

5% Transporta�on

17% Agriculture

37% Manufacturing

10% Professional, Scien�fic & Tech.

10% Accomoda�ons & Food Services

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FCADC PLAN OF ACTION 2009

I. Facilitate FCADC Owned Development Projects• Joint venture with the Chambersburg Area Development Corpora on (CADC) for the

construc on of a 69,000 square foot offi ce/industrial building• Renovate and expand FCADC offi ce building at 1900 Wayne Road• Partner with Antrim Township Municipal Authority for the expansion of water treatment

plant• Partner with Cumberland Valley Regional Development Corpora on (CVRDC) on the

development of the United Business Park• Evaluate the need for future industrial spec building • Provide administra ve/logis cal support for the I-81 Point-of-Access Study for a possible new

interchange in Chambersburg

II. Enhance & Expand Economic Development Services• Avail economic development resources (to include low cost fi nancing and/or job training) to a

minimum of 52 businesses throughout Franklin County• Ac vely facilitate the development of publicly and privately owned proper es that are

suitable for economic development• Conduct a minimum of 100 Team PA calls • Provide administra ve support to the FCADC Angel Network• Provide administra ve support for the Franklin County Manufacturing Consor um• Develop targeted marke ng campaigns in coopera on with local and regional affi lia ons• Provide consistent and mely responses to prospect inquiries• Support Franklin County Comprehensive Plan• Avail all Ag-related economic development resources to the Franklin County Agricultural

Community• Con nue eff orts in support of Ag Preserva on Ini a ves

III. Support Educa onal and Workforce Development Ini a ves• Par cipate and coordinate with South Central Workforce Investment Board (SCWIB)• Support “cluster-related” training ini a ves• Meet regularly with educa onal administrators and workforce development offi cials

regarding integrated workforce development strategies

IV. Support the Reten on, Expansion, and Growth of the Le erkenny Army Depot• Facilitate purchase of property in support of a new employee gate on PA Route 997• Avail economic development resources to defense contractors seeking to locate within the

County or do business with the Depot• Provide oversight and funding for the design/construc on/opera on of a traffi c signal at the

intersec on of US Rt. 11 and PA 433 in Greene Township• Con nue to provide administra ve/logis cal support to the Le erkenny Business Opportunity

Showcase• Secure funding in state budget for future LEAD ini a ves

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V. Review/Update FCADC Data Base/Publica ons• Update and maintain FCADC internet web site• Update Franklin County Data Book• Publish 2009 Franklin County “Profi le”• Publish 2008 FCADC Annual Report• Publish 2009-10 FCADC Industrial Directory• Update Franklin County Township & Borough Profi les• Periodic review and update of economic development incen ve programs• Maintain a current industrial sites and buildings inventory that includes property photos and

detailed spec. sheets

VI. Improve FCADC Administra ve and Opera onal Effi ciencies• Review/reclassify/reduce current FCADC fi ling system to include electronic archiving/storage

of documents • Provide con nuous improvements for administra ve repor ng and oversight of all state and

federal grants• Develop addi onal revenues to support FCADC ini a ves• Make con nuous improvements to the FCADC Board orienta on program that be er defi nes

the Directors roles and responsibili es• Increase FCADC reserve account by not less than 10%

VII. Publicize FCADC Ac vi es• Develop and disseminate press releases for all FCADC sponsored projects• Develop and publish ar cles and op-ed pieces regarding per nent issues impac ng economic

development• Sponsor and publicize annual Industry Apprecia on Dinner• Sponsor and publicize workshops, seminars, and forums on relevant issues that impact

economic development• Regularly publicize FCADC accomplishments and events on the website

VIII. Maintain Organiza onal Linkages With Local, State, and Regional Service Providers including, but not limited to:• South Central Team PA• SCWIB• PA CareerLink• Chambers of Commerce• Community Development Corpora ons• QUADCO• MANTEC• LIDA• SBDC• Ben Franklin Partnership

IX. Maintain Posi ve Working Rela onship with all Local, State, & Federal Elected Offi cials

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2008 FCADC Industry Apprecia on Dinner

The FCADC’s Annual Industry Apprecia on Dinner is one of the most an cipated dinner events of the year in Franklin County. The event pauses to honor those employers…both large and small…who make Franklin County’s economy prosper. The dinner, which brings together approximately 500 business and community leaders, is an evening of good food and excellent networking. 2008’s dinner was no excep on, especially as we moved to a new loca on at Green Grove Gardens in Greencastle.

2008 Large Business of the Year…

2008 Small Business of the Year…

2008 Zane A. Miller Award…Marelin K. Sites, Re red CEO First Na onal Bank of Mercersburg

2008 FCADC Chairman’s Award…Sen. Terry Punt, Re red 33rd Senatorial District

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The FCADC would like to thank our sponsors for the 2008 dinner. Without their generous fi nancial support the dinner would not have been as successful as it was.

“Event Sponsor”

“Recep on Sponsors”

“Corporate Sponsors”

Prin ng

Complimentary prin ng services for the dinner provided by Printed Image, LLC of Chambersburg

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The FCADC is extremely dedicated to the reten on and growth of the Le erkenny Army Depot (LEAD). In 2008, the FCADC was an ac ve partner with the Depot on the following projects…

• Comple on and renova on of a workforce educa on and training classroom which was dedicated in May 2008 and represents a $416,000 total investment

• Awarded a $312,000 grant for the construc on of a traffi c signal at the intersec on of US Route 11 and Sunset Pike suppor ng the main truck route for the Depot. Expected comple on is the second quarter of 2009

• Planning and design of a new secure vehicle access gate off of PA Route 997

• Planning of new barracks and recrea on facili es at the Depot

• Provided administra ve and planning support for the Le erkenny Business Opportunity Showcase, including produc on of a promo onal and marke ng DVD for the Depot

• Honored COL. Jerry Warnement (re red) with an FCADC Chairman’s Award for his hard work and dedica on to the reten on of Le erkenny Army Depot

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The FCADC . . .

Over the past year, the FCADC:

• Completed its 600th successful economic development project

• Formed a for profi t LLC with the Chambersburg Area Development Corpora on (opera ng as CFDC, LLC) for the purpose of construc ng the North American headquarters of Vacon, Inc.

• Completed “looping” of the water system of the Gateway Parcel at the Cumberland Valley Business Park represen ng a $150,000 investment

• Purchased the former Duraclean Specialist, Inc. facility located at 190 Industrial Drive, Chambersburg represen ng a $315,000 investment

• Co-founded with Volvo Construc on Equipment the crea on and administra on of the Cumberland Valley Manufacturing Forum

• Partnered with ABC Networks Extreme Makeover Home Edi on on the planning of their South Mountain renova on project

• Marke ng, promo onal, and support services for the Wharf Road Industrial Park (Zullinger), Century Industrial Park (Greencastle), Antrim Commons Business Park (Greencastle), Chambers-5 Business Park (Chambersburg), Cumberland Valley Business Park (Chambersburg), and United Business Park (Shippensburg)

• Prime sponsor of the Department of Community and Economic Development’s Franklin County seminar on Interna onal Trade

• Developed an award winning website and county profi le publica on

• $500 sponsor of the Penn State Workforce Development Center

• $500 sponsor of the Shippensburg University Small Business Development Center

• $500 sponsor of the Wilson College Community Partners Program

Rendering of the Vacon, Inc. North American headquarters currently under construc on in the Chambers-5 Business Park

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ACKNOWLEDGEMENT OF CONTRIBUTORSThe FCADC is extremely privileged and apprecia ve to enjoy broad county-wide support.The Board of Directors extends its sincere thanks to those who have contributed toour funding . . . because without your support, there would not be an FCADC.

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Mr. and Mrs. Greg Duffey

W.R. Oyer, Inc.

Dr. David C. Gnage

Sharpe & Sharpe, LLP

1900 Wayne RoadChambersburg, PA 17202(717) 263-8282Fax (717) 263-0662www.fcadc.comEmail: info@fcadc.com

FCADC Staff

Not responsible for any errors or omissions.

L. Michael Ross, President

David B. Mackley, Business Outreach Specialist

Judy Evans, Opera ons Manager

Rhonda Wojciechowski, Special Projects Coordinator