The Largest Industrial Park in the Northeast Has a New Name – and a Strategy for Long-Term Growth

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From left: Jack Kulka, Lifetime Board Member, HIA-LI; Joe Campolo, Board Chair, HIA-LI; Hon. Ed Wehrheim, Smithtown Supervisor; Hon. Steve Bellone, Suffolk County Executive; Hon. Angie Carpenter, Islip Town Supervisor; Terri Alessi-Miceli, President & CEO, HIA-LI; Kelly Morris, Deputy Executive Director, Suffolk IDA; and, James Lima, President, James Lima Planning + Development.

It’s hard enough figuring out how to grow our businesses and organizations over the next, say, six months . . . or year . . . or even two years.

So, how do we chart a course for growth over the next decade? Or two decades?

Well, we now have clear and specific answers.

First, based on feedback from park occupants, our government partners and our future workforce, we are changing the name of the Hauppauge Industrial Park.

Its new name is the Long Island Innovation Park at Hauppauge with the tagline: “Where Business Meets Innovation.”

As the largest business park in the Northeast, we’re already the unrivaled cornerstone of the Suffolk County economy. This Park is home to 55,000 employees – and our $13 billion of annual output accounts for eight percent of Long Island’s Gross Domestic Product.

Our proven capacity for innovation will be the key to decades of new growth, so innovation is now our middle name.

And what is our blueprint for decades of expansion?

Last year, we assembled the talents of Stony Brook University, the Suffolk County Industrial Development Agency, and the Regional Plan Association to compile a comprehensive inventory of the park’s assets.

The Suffolk IDA then brought in James Lima Planning + Development to match up our assets against the anticipated demands of tomorrow’s regional and national economy.

The result: a 167-page report that Suffolk County Executive Steve Bellone called a “comprehensive roadmap” that spells out “the building blocks needed to strengthen, expand and attract key industry clusters that will push our innovative economy to the next level.”

The analysis found that we held a big advantage over the rest of Long Island through our powerful contingent of “tradeable” business. “Tradeable” commerce involves goods and services exportable to other locations — and not consumed solely by local markets.

This is a hard-core metric of regional economic development value because it measures an asset’s capacity to serve, in essence, as a “dollar magnet” – and to attract outside wealth into the area.

The Island-wide ratio of “tradeable” business runs only 23 percent, contrasted with a national rate of 36 percent.

But the figure for Long Island Innovation Park at Hauppauge stands at an impressive 58 percent, over 20 percent higher than the national average.

That’s a platform worth building upon, and one that is destined to elevate the Park’s status as a regional business driver.

The report pinpointed five essential, high-level economic development strategies for the Park to grow and influence the entire Long Island economy:

First, facilitate business growth. Second, strengthen training and workforce development. Third, attract and retain knowledge workers. Fourth, promote innovation and technology transfer. And fifth, fortify connections among business, government and institutions.

“This reimagining of the Park,” says Suffolk IDA chair Theresa Ward, “gets everyone involved in economic development in this region excited because the potential is so real and obtainable.”

With this insightful, five-part game plan in hand, Long Island Innovation Park at Hauppauge is today equipped to fulfill a growth scenario that will redouble its contributions to our regional economy.

Ambitious? Yes.

And do we have the assets – and the will – to pull it off?

Absolutely!

Prevailing Wage Bill Would Deliver Devastating Blow to LI Economy

prevaling wage blog imageA bill has passed the New York State Assembly and is now sitting in the State Senate (A1261/S1947) that would require all Industrial Development Agency (IDA) funded projects to pay “prevailing wage.”  The bill is co-sponsored by State Senators James Gaughran and Monica Martinez.

While we appreciate the good intentions of the bill’s supporters, it must not pass. The bill’s adoption would deliver a devastating blow to future economic growth in Suffolk County. In addition to inhibiting the creation of new manufacturing enterprises, this radical change in IDA guidelines would also suppress the introduction of new housing into our region, including affordable housing.

Over the course of 41 years, HIA-LI has grown to represent tens of thousands of Long Island business professionals. We serve as a widely recognized advocate for regional development. It is our core mission.

A centerpoint of our constituency is the Hauppauge Industrial Park, which ranks second in size only to Silicon Valley among America’s industrial parks. This 1,400-acre Park houses more than 1,350 businesses employing some 55,000 people. These workers collectively represent a post-tax payroll accounting for more than $2 billion in local spending. Many of our projects have benefited from IDA support.

More broadly, the Suffolk IDA plays an essential role in Long Island’s economy. It has been a vital economic development resource with an excellent record of success helping local companies expand or renovate, build or add new facilities, or relocate to Suffolk County.

In the Town of Smithtown alone, the Suffolk IDA has been instrumental in the delivery of 34 projects – 13 ground-up developments among them. Most of these IDA projects have been situated in the Hauppauge Industrial Park. Townwide, they are helping to create 4,624 jobs and leverage more than $322 million in private capital.

A new prevailing wage provision is expected to shoot average IDA projects skyward by as much as 40 percent. Such a surge will instantly transform this new requirement into nothing short of a deal-killer for vast numbers of new developments. Contrary to the feelings of some lawmakers this bill will not increase the salary of construction jobs but will decrease the availability of jobs. This would not only stymie the creation of tens of thousands of permanent jobs and construction jobs but would also suppress creation of the kind of workforce housing that allows Long Island to allure and retain skilled personnel including millennials.

Over recent years, New York State witnessed the way that a new prevailing wage requirement had choked off the pipeline of IDA projects in Ulster County and the City of Yonkers. That same harmful scenario would surely play out here, too.

Our analysis is clear: imposing these onerous new costs on future IDA projects would severely diminish Long Island’s competitive status – and badly dampen our hopes for the future.

We urge our State lawmakers to reject this unsustainable new burden on our region’s economy.

HIA-LI’s 2019 Agenda Aims to Boost Long Island’s Competitive Status

Click the image above for a copy of our 40th Anniversary Report.

Coming off our 40th anniversary last year, the HIA-LI is looking to the future and carrying forward our momentum into 2019.

We’re working together to promote the interests of the Long Island business community – and of America’s second-largest industrial park. And we’re fueled by the knowledge that everyone benefits – our companies, our organizations, our employees, and our households – when we successfully strengthen Long Island’s regional competitiveness.

This year, HIA-LI will center much of our attention on three strategic initiatives:

First, we’ll build upon the groundbreaking work of the Hauppauge Industrial Park Task Force – chaired by Joe Campolo, Esq., of Campolo, Middleton & McCormick, LLP – which focuses on elevating the park’s economic impact.

Initiated through the collaboration of our members, along with the Suffolk County IDA, the Regional Plan Association, and Stony Brook University, HIA-LI is now working with James Lima Planning + Development to pinpoint ways to maximize the Park’s growth and competitiveness.

One component of our Task Force work will be to fortify relationships with Long Island’s educational institutions to help better meet the workforce needs of the region. We’ll also be looking at re-branding the Hauppauge Industrial Park to better reflect the pride we have in this critical economic engine.

Our second area of concentration in 2019 is the HIA-LI Solar Initiative – co-chaired by Jack Kulka of Kulka Construction Corp. and Scott Maskin of SUNation Solar Systems – which will leverage our park’s 20 million square feet of unused rooftops. Solarizing this untapped resource will reduce electricity costs, generate jobs and revenues, and help preserve our environment.

And third comes our Small Business Task Force – chaired by Rita DiStefano of Portnoy, Messinger, Pearl & Associates – which is working to enhance HIA-LI’s ability to engage with Long Island’s small business community.

Our small and mid-sized business owners have asked us to concentrate on three critical needs: The first is to find, train and retain good talent. The second is to promote business development and generate fresh revenue streams. And the third is to secure financing that facilitates business growth.

While we’re always looking to recruit new board members, this year we’ll be specifically aiming to attract young entrepreneurs to our association, to our park, and to the Long Island region’s leadership ranks.

And it makes sense to mark your calendar now for one of our seminal annual events, the HIA-LI 31st Annual Trade Show, which this year will be held on Thursday, May 30.

In 2019, let’s keep working together to elevate Long Island as one of the country’s great and vibrant economic centers.

40 Years of “Personal Touch”

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Pictured from left: Grant Hendricks, Vice Chairman, Suffolk IDA; Hon. Ed Wehrheim, Supervisor, Town of Smithtown; Terri Alessi-Miceli, President & CEO, HIA-LI; Jack Kulka, President & Founder, The Kulka Group and HIA-LI Lifetime Board Member; Sophia Serlis-McPhillips, Director, Middle Country Public Library; and, Joe Campolo, HIA-LI Board Chair and Managing Partner, Campolo, Middleton & McCormick, LLP

I’ve said it before: One special attribute of HIA-LI is that we bring “a personal touch” to our work.

This pleasing dimension of our operations was evident at last week’s 40th Anniversary Gala at Stonebridge in Hauppauge.

We were able to have some fun, interact socially, honor some great friends, and reflect on HIA-LI’s many accomplishments over four decades.

It’s nice that HIA-LI doesn’t default into clinical-style, by-the-book networking. Instead, we enjoy each other’s company. We engage each other as people, not just business prospects.

It calls to mind my initial encounters with the group about 30 years ago. As an executive with Dale Carnegie Training, I was a rank-and-file member of HIA-LI, hoping to drum up some local business.

But what treatment I received! Marcy Tublisky introduced me to virtually every CEO in the organization.

My first reaction was, “This group is different. Sure, they’re all aiming for business success. But these people bring ‘a personal touch’ to the whole enterprise!”

And it was a personal thrill for me last week when we recognized four honorees:

We applauded an HIA-LI founding father and development icon Jack Kulka — President and Founder of The Kulka Group — who was there on Day One in 1978.

We recognized the Miller Business Center of Centereach, represented by Middle Country Public Library Director Sophia Serlis-McPhillips. Few know that HIA-LI had been poised to launch our own business library years ago when we realized that the nearby Miller Business Center was an ideal partner to fulfill our needs.

Attendees also praised the Suffolk County Industrial Development Agency – represented by Vice Chair Grant Hendricks – which aggressively promotes the growth of our business park.

Supervisor Edward Wehrheim spoke for the Town of Smithtown, our final honoree. He’s already begun building upon the legacy of former Supervisor Pat Vecchio in facilitating the enrichment of our complex.

And I was truly surprised and humbled to be given an award by the HIA-LI board. It is my honor to serve as president and C.E.O., and I share this honor with the outstanding staff at HIA-LI who work hard every day in order to make my job look easy.

We also recounted some of HIA-LI’s achievements over four decades, including our growth from 350 to nearly 1,000 member companies.

HIA-LI remains an effective agent of regional economic growth, while maintaining the “personal touch” that facilitates relationship building among members. And HIA-LI keeps advocating for the Hauppauge Industrial Park, whose 1,350 businesses and 55,000 employees make it America’s most job-rich industrial park east of the Mississippi River.

We’ve leveraged dozens of assets for the Park and its member firms, such as a Northern State Parkway exit ramp, a dedicated COPE car in cooperation with the Suffolk County Police Department, one of the country’s first-ever industrial park-based childcare centers, dozens of sewage, lighting, and road improvements, and a truly lengthy list of other deliverables.

Click here to check out our 40th Anniversary Report for a more complete list of accomplishments, current initiatives, and along with the history of HIA-LI.

So, bravo to you, HIA-LI! And congratulations on 40 proud years of successful business advocacy – all carried out in a way that maintains a warmly appreciated “personal touch.”

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