Economic Development Company of Lancaster CountyEDC Finance Corporation

2009 Annual Report

PEOPLE. PROGRAMS. PROJECTS. PROSPERITY.

PEOPLE & PARTNERSYou’re the common catalyst to success in Lancaster’s economic development.

COVER: Hershey Farm, Rapho Township; PK Machine, Pequea Township; Hardy North America, West Hempfield Township; Liberty North, City of Lancaster;Northwest Gateway Project (redevelopment of former Armstrong World Industries), City of Lancaster

Mission Statement The Economic Development Company of Lancaster County and EDC Finance Corporation, collectively “EDC,” work to enhance the physicaland economic well-being of Lancaster County, Pennsylvania by bringing together the essential elements affecting modern business — human resources, capital and government — in an environment of responsible and orderly change.

2 l 2009 Annual Report

I am pleased to introducethe 2009 EDC and EDC FinanceCorporation Annual Report. As you review it and reflect back on a year of accomplishments and milestones, I believeyou’ll agree that Lancaster County is indeed fortunate to have such proactiveorganizations serving our local businessand agriculture communities with theireconomic development endeavors.

As notable as these efforts surely are— whether rural or urban, large or small,high-profile or mom-and-pop — an economic development project’s true success is determined by the dedicatedpeople behind it and theirability to partner with other organizations andcommunity members. People in partnership drivesuccessful economic development.

And no partnership is more importantthan that formed with our Membershipand volunteers who, while workingtirelessly and often unnoticed, enable us to collectively make positive changeand significant achievement possible.As outgoing EDC Board Chair, I wishto personally thank each of you foryour dedication and support, andwould like to acknowledge your involvement and leadership by including our Membership List

front and center in this report. The list’sprominence here is but a small reflectionof your value and importance. You haveMade the Investment in EDC and that investment will continue to Make a Difference in our community.

To a large extent, we are able toquantify the projects that make such adifference to our business men andwomen, farmers, families and community.John Rose, Board Chair of EDC FinanceCorporation, will review 2008 Projectactivity later in this report.

David Nikoloff, President of EDC and EDC Finance, will conclude by discussing how these differencescontribute to the Progress and Prosperityof Lancaster County.

I now pass the leadership baton toDavid Keller, who on the next few pageswill review strategic Programs he willlead as EDC’s next Board Chair. Pleasejoin me in welcoming David.

Nancy S. Arnold, 2007-2008 EDC Board ChairPartner, Reinsel Kuntz Lesher LLP

PARTNERS$7,500-$14,999 annuallyAuntie Anne’sD&E CommunicationsHorst GroupM&T BankPNC BankTurkey Hill DairyUnion National Community Bank

MEMBERS $3,500-$7,499 annuallyBarley SnyderCitizens BankFlyway ExcavatingFranklin & Marshall CollegeHarrisburg Area Community CollegeHartman Underhill & BrubakerHerley IndustriesHorst RealtyIBS DevelopmentIntelligencer PrintingIrex CorporationMars Snackfood USMillersville University of PennsylvaniaPaul Risk AssociatesProvidence Engineering CorporationReinsel Kuntz LesherSchool District of Lancaster Sovereign BankWarfel Construction CompanyWohlsen Construction CompanyWonderland Amusement Management

ASSOCIATES $1,750-$3,499 annuallyAbel Construction CompanyAcuity Advisors and CPAsAlcoa Mill ProductsAmerican Home BankAppel & YostB.R. Kreider & SonBenchmark Construction CompanyBeyond ArchitectureBowser Construction CompanyBrown Schultz Sheridan & FritzBurnham Holdings

Carel USA Certified CarpetCharter Homes & NeighborhoodsCity of LancasterClair Brothers Audio SystemsCommerce BankConewago Industrial ParkConrad Siegel ActuariesCoreSourceCornerstone Design ArchitectsDavid Miller/AssociatesThe Drogaris CompaniesDutchlandEastern Alliance Insurance GroupELA Group/Land Grant SurveyorsElizabethtown CollegeEngle-Hambright & DaviesEphrata Community HospitalFidelity National Title Insurance CompanyFriendly TransportationGraystone BankHamilton Precision MetalsHomeTowne Heritage BankJC Snavely & SonsJ. Walter Miller CompanyThe Jay GroupJohnson & Johnson Consumer Group

of CompaniesKasun DevelopmentKellogg CompanyLancaster Barnstormers/Keystone BaseballLancaster County Career and

Technology CenterLancaster Regional Medical CenterMartin LimestoneMeadow Valley Electric/ESCOMount Joy Wire CorporationMurray Risk Management and InsuranceMurry Management CompanyNAI Commercial Partners National Bearings CompanyNikolaus & HohenadelNorthwest Savings BankRadnor Property GroupRealty Settlement ServicesRedcay Development Company

Rettew AssociatesRhoads EnergyRoss Buehler Falk & CompanyR.R. DonnelleySechan ElectronicsSelect SecuritySimon LeverStevens & LeeStoner, Inc.StoudtAdvisorsSuccess Performance SolutionsThaddeus Stevens College of TechnologyTriple H ConstructionTrout, Ebersole & GroffVanguard Development GroupVersatek EnterprisesWalz, Deihm, Geisenberger, Bucklen & TennisWeinstein Realty AdvisorsWickersham Construction and EngineeringWillow Valley Associates

SUPPORTERS $500-$1,749 annually(municipalities and non-profit communityand economic development organizations)ASSETS LancasterColumbia BoroughCommercial & Industrial Real Estate

Council/LCARCommunity First FundThe Family Business Center

at Elizabethtown College Housing Development CorporationKutztown University Small Business

Development Center (SBDC)Lancaster County Workforce Investment BoardLancaster Downtown Investment District

Authority (DID)Library System of Lancaster CountyManheim Area Economic Development

CorporationManheim TownshipMount Hope Nazerene Retirement CommunityMount Joy Borough AuthorityPennsylvania Dutch Convention

& Visitors Bureau (PDCVB)

SPONSORS $15,000-$24,999 annually

BUILDERS $25,000-$49,999 annually

FOUNDERS$50,000 annually

MEMBERSHIP Economic Development Company of Lancaster County

2009 Annual Report l 3

4 l 2009 Annual Report

PROGRAMSAchieving our strategic goals requires outreach and collaboration, persistence and innovation.

These are interesting times for Lancaster County. As we all know, economic development is not what itused to be. From the early days ofsmokestack chasing to the knowledge-based retention and attraction practicesof today, EDC has grown and evolvedapace. Today, EDC remains cutting-edgewith its vision and ability to strategizeand initiate programs in order to helpLancaster County businesses remaincompetitive.

EDC and our partners continuallyassess economic challenges and opportunitiesand address areas of need or concern. Oneavenue is through the LancasterProspersinitiative. The Business Retention andExpansion Program program gives us a more individualized, personal under-standing of the local business climate.Later in this Report, John Rose, BoardChair of EDC Finance, will mention two incentive financing programs, the LancasterProspers Urban CapitalFund/Building PA and the SBA 504 programs, which qualified business menand women can take advantage of thisyear because last year EDC Finance staff aggressively and persistently sought loanprogram administration approvals.

In addition to these established formalprograms, many of EDC’s undertakingsinvolve functions that often go unnoticed.They require time, sometimes years toevolve, but in the end make a significantpositive impact on our community. Forexample:

• EDC assisted two international companies, GlaxoSmithKline in EastDonegal Township and, more recently,Hardy & Greys in West HempfieldTownship, with their location efforts in Lancaster County

• EDC has been working withthe urban areas of Columbia, Lititz, Elizabethtown and Mount Joy to address functionallyobsolete commercial and industrial properties

• EDC continues to facilitate community development projects that jump-start economic improvement, such as the Northwest Gateway project in Lancaster City

David R. Keller, Esq.2009-2010 EDC Board ChairPartner, Barley Snyder

MembershipEDC recently launched an ambitious

rolling Membership Campaign to addressthe expanding demands placed on staff in assisting our local business andagriculture communities.

EDC’s Membership is critical to theeconomic vitality of Lancaster County.Membership support allows staff to availthemselves of as many opportunities aspossible in assisting our local businessmen, women and farming families togrow their operations and improve theirquality of life so that we all, as a community,benefit. If you are not already a member,please consider joining us.

2009 Annual Report l 5

LancasterProspers RevisitedIn 2008, the LancasterProspers

Steering Committee released the LancasterProspers “Revisited” report,Leading with Vision: Successes, Challenges & A Plan for MovingForward. It summarized the challengesencountered and achievements obtainedby the LancasterProspers seven originalstrategy committees during the first threeyears of the initiative, and presented future plans and recommendations for each strategy. The year-long“Revisited” evaluative process resulted inthe realignment of the original strategiesinto six action groups (shown here withtheir respective chairs):

• Regional InitiativesRalph Simpson, Warfel Construction Company

• Economic Research CapacityScott Sheely, Lancaster CountyWorkforce Investment Board

• Countywide Economic Development Marketing

John M. Levitski,PPL Corporation

• Community-wide InnovationScott Sheely, Lancaster CountyWorkforce Investment Board

• EntrepreneurshipTom Baldrige, The LancasterChamber of Commerce & Industry

• Urban Center DevelopmentMatthew Sternberg,Lancaster County Housing & Redevelopment Authorities

In addition to the strategy chairs, theLancasterProspers Steering Committeeincludes members-at-large:

Nancy Arnold, Reinsel Kuntz Lesher

James Black, Board Chair, LancasterCounty Workforce Investment Board(Ross Technologies)

William Griscom, Thaddeus Stevens College of Technology

Dan Heller, Flintrock Farms

Craig Lehman, Commissioner, Lancaster County

Wendy Nagle, Bird-In-Hand Corporation

David Nikoloff, Economic DevelopmentCompany of Lancaster County

Tim Peters, Warfel Construction Company

Jim Smucker, Board Chair, The Lancaster Chamber of Commerce& Industry (Bird-In-Hand Corporation)

Cindy Stewart, Board Chair, Lancaster County Housing and Redevelopment Authorities (FamilyHealth Council of Central PA)

Business Retention & Expansion Program (BREP)With goals to assist, retain and expand localbusinesses, EDC staff outreach specialistsvisited a record 365 Lancaster Countybusinesses in 2008 as part of EDC’sproactive outreach program in partner-ship with the Commonwealth. Theseconfidential, one-on-one interviews with

local business executives identifiedtrends, issues and

needs ofthe localbusinesscommunity.

EDC and EDC Finance Corporation Joint CommitteesSTRATEGIC PLANNING It startedwith a simple, eight-page strategic plandrafted in 1990 that established EDC as the growing, engaged organization it is today. Now, as EDC’s role in thecommunity continues to expand, it istime to take a thorough and hard look at all of our activities to determine wherewe are as an organization and where wewant to be in five years. During 2009,both EDC and EDC Finance will undertake a top-to-bottom strategicplanning process of all activities.

AUDIT COMMITTEE With a com-mitment to being responsible fiscal stew-ards, EDC and EDC Finance establishedan Audit Committee in 2007 to ensurethe organizations’ financial, legal andregulatory integrity. As a result of theAudit Committee’s efforts, both organi-zations have received unqualified auditsfor the last two years.

INVESTMENT COMMITTEE EDCutilizes its investment base to leverage select economic development projectsthroughout Lancaster County. To ensurethe integrity of our management practicesas our roles expand, EDC and EDC Finance have created a joint InvestmentCommittee whose objectives are clear:

• Develop investment policies and procedures

• Review and select professional investment managers/firms that meetthe investment objectives of each organization

• Monitor all areas of the investmentprogram

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PROJECTSPutting the right resources in place strengthens our constituent businesses, farms and communities.

continued page 8

During my tenure asBoard Chair, I have witnessed EDC Finance Corporation adapt and expand in order to best serve Lancaster County’sbusiness and agriculture communities.

As the “doer of projects,” EDC Finance continues to aggressively seekout and implement new programs andservices that will strengthen our county’seconomic base. You can review a summaryof all economic development achievementson the following page in the 2008Growth and Investment Report.

Most notably, in 2008 EDC FinanceCorporation:

• Received Certified DevelopmentCompany designation (only the 8thin the Commonwealth) from theSmall Business Administration to administer the SBA 504 program,following a rigorous 18-month qualification process. As a result, EDCFinance now stands as an independent,separate entity from EDC with itsown By-laws and Membership.

• Became the first Building PA loanprogram fund manager in the Commonwealth to be awarded three rounds of funding for urban

redevelopment projects, bringing thetotal awarded in 2007 and 2008 to $11.7 million.

• Facilitated the infrastructure effortsat the Northwest Gateway project (theArmstrong redevelopment site) inLancaster City as the final step beforeconveying clean title of property tocommunity partners, Franklin & MarshallCollege and Lancaster General.

• Helped fund agriculture projects thatwill help keep 2,645 acres of land —slightly larger than the Ephrata Borough footprint — in viable farming activities.

• Assisted Lancaster County businessesand farms to access 72 loans andgrants, representing a sizable 44% increase over 2007 (50 loans andgrants). EDC and EDC Finance Corporation are busier today thanever due to increased demand forproject financing.

John H. Rose,EDC Finance Corporation Board ChairSenior Vice President and CFO, Horst Group

U.S. SBA 504 ProgramThe SBA 504 program provides growingqualified businesses with long-term fixed-rate financing for major fixed assets, suchas land, buildings and equipment.

EZSolution Corp. East Hempfield Township

EZSolution provides website design andmaintenance, computer hardware andnetworking consulting services. TomMalesic, EZSolution’s president, used anSBA 504 loan to purchase an office suitefor his growing company. In doing so, EZSolution became EDC Finance’s firstSBA 504-approved loan project.

Crescendo Training Centre, LLC West Earl Township

Crescendo Training Centre, LLC is afull-service facility that provides horsetraining and riding instruction, summer

2009 Annual Report l 7

Beiler Farm (Elam/Barbara) 48 2 $400,000 NGFLP - $150,000Beiler Farm (Ira/ Priscilla) 69 2 $565,000 NGFLP - $250,000

SBF/FIF - $200,000Beiler Farm (Jacob/Elsie) 100 2 $750,000 NGFLP - $250,000

Beiler Farm (John/Mary Ellen) 125 2 $500,000 NGFLP - $160,000Benner Farm (Arlin/Deborah) 111 15 $2,040,000 SBF/FIF - $200,000Blank Farm (David/Ruthie) 70 0 $650,000 NGFLP - $310,000

Bollinger Farm (Andrew/Andrea) 78 2 $1,669,200 SBF/FIF - $200,000NGFLP - $250,000

Breckbill Farm (David/Janelle) 23,000 2 $525,000 SBF/FIF - $200,000Brubaker Farm (Luke) 325 3 $1,320,000 MELF/FIF - $415,000

Brubaker Farm (Randy/Jodie) 84 2 $1,850,000 SBF/FIF - $200,000Brubaker Farm (Robert/Andrea) 56,592 2 $620,000 SBF/FIF - $200,000

Craig Farm (Charles/Elaine) 2 $2,615,000 SBF/FIF - $200,000MELF/FIF - $200,000

Crescendo Training Centre, LLC 2 1 $416,700 SBA 504 - $150,000 Eckman Farm (Brian) 108 2 $500,000 SBF/FIF - $200,000

NGFLP - $300,000Esh Farm (Ephraim/Mattie) 69 2 $575,000 SBF/FIF - $200,000

EZSolution Corp. 5,500 3 13 $632,950 SBA 504 - $262,000Fisher Farm (Jacob/Mary) 34 2 $485,000 SBF/FIF - $200,000

Fisher Farm (Melvin/Barbara) 30 2 $400,000 NGFLP - $250,000Generation Three Farm Partnership 78 3 $1,700,000 SBF/FIF - $200,000

Glick Farm (Emanuel/Sadie) 52 $700,000 NGFLP - $250,000Glick Farm (Samuel/Malinda) 80 2 $400,000 SBF/FIF - $200,000

Gochenaur Farm (Scott/Jennifer) 29,500 21 2 $1,450,000 NGFLP - $250,000SBF/FIF - $200,000

Gypsum Agricycle, Inc. 5 3 $446,000 SBF - $200,000Hardy & Greys, Ltd 14 $1,000,000 Location Assistance

Herr Farm (Eric/Melissa) 100 2 $700,000 NGFLP - $450,000SBF/FIF - $200,000MELF/FIF - $50,000

Hershey Farm (Stephen/Heidi/Philip) 80 3 $1,310,000 SBF/FIF - $200,000Hess Farm (Jim/Carolyn) 23,000 0 2 $550,000 SBF/FIF - $200,000Hess Farm (Paul/Sheryl) 20 2 $400,000 SBF/FIF - $200,000Hess Farm (Eugene/Susan) 120 2 $418,700 SBF/FIF - $200,000Hollinger Farm (Randy) 40 1 $815,000 SBF/FIF - $200,000

King Farm (Christian/Emma) 80 2 $400,000 NGFLP - $235,000Kline’s Services, Inc. 8,000 29 70 $2,060,000 SBF - $200,000

PK Machine 6,000 1 2 3 $340,000 SBF - $125,000Landis Farm (Brian/Annice) 56,160 2 $710,000 SBF/FIF - $200,000Lapp Farm (David/Anna) 60 2 $425,000 NGFLP - $150,000

LSC Properties, L.P. 66,170 2 100 $10,500,000 Bldg PA - $1,200,000M&R Grains 1 $200,000 MELF/FIF - $100,000

Meuhlenberg Farm (John/Jana) 1 $410,000 MELF/FIF - $205,000Museum Partners, LP 35,000 3 40 $9,439,000 Bldg PA - $2,314,000

Musser Farm (Carl/Wanda) 29,500 2 $617,500 SBF/FIF - $200,000 Nissley Farm (Kirby) 90 2 $600,000 NGFLP - $175,000

SBF/FIF - $200,000Norwich Properties, LLC 13,000 3 $1,836,000 Bldg PA - $275,400

Rohrer Farm (Mark) 34 2 $275,500 SBF/FIF - $137,500Rottmund Farm (Jared/Shelby) 10 1 $600,000 SBF/FIF - $200,000Sensenig Farm (Clifford/Andrea) 149 2 $794,000 NGFLP - $250,000

SBF/FIF - $200,000Stoltzfus Farm (Daryl/Kimberly) 27,000 2 $340,000 SBF/FIF - $170,000 Stoltzfus Farm (John/Annie) 57 $600,000 NGFLP - $450,000

Stone Mill Farms LLC/Stricklin Farm 98 2 $1,376,000 SBF/FIF - $200,000Swanger Farm (Duane/Stacy) 57 2 $706,000 SBF/FIF - $200,000

NGFLP - $250,000TBA* 260 158 $2,800,000 CJT - $350,000

JCTC - $520,000MELF - $1,400,000

OG - $500,000Thornberry, Ltd. 2,500 2 7 $290,000 SBF - $145,000

U.S. Recycled Wood Products 8 $591,000 SBF - $200,000Versatek Enterprises, LLC 7 62 $340,000 SBF - $170,000 Weaver Farm (Brian/Elsie) 23,000 37 1 $820,000 MELF/FIF - $90,000

SBF/FIF - $200,000Wissler Farm (Donald/Holly) 72,884 2 $1,169,000 MELF/FIF - $207,500

SBF/FIF - $200,000Zimmerman Farm (Donovan/Cheryl) 28,080 2 $1,350,000 NGFLP - $450,000

SBF/FIF - $200,000Zimmerman Farm (Lawrence/Judy) 82 $1,350,000 NGFLP - $450,000

TOTALS: 504,886 2,645 432 408 $67,342,550 $20,666,400*TBA — Project not yet publicly announced.

Bldg PA — Building PACJT — Customized Job TrainingJCTC — Job Creation Tax Credit

MELF/FIF — Machinery & Equipment Loan Fund/ First Industries Fund

NGFLP — Next Generation Farmer Loan ProgramOP — Opportunity Grant

SBA 504 — Small Business Administration 504SBF — Small Business FirstSBF/FIF — Small Business First/First Industries Fund

Project Building Agriculture New Retained Total FinancialSq. Ft. Acre Jobs Jobs Investment Assistance

2008 Growth & Investment Report

PROGRAMS

8 l 2009 Annual Report

Museum Partners, LPColumbia BoroughWith the help of a $2.3 million BuildingPA loan, the Ashley & Bailey Silk Millproperty (shown below) will be redevelopedinto an agri-tourism attraction anchoredby the “Turkey Hill Experience.”

camps, breeding, boarding, showing,judging and horse rehabilitative services.Kristine Phelps, principal, is using anSBA 504 loan to construct a new indoorriding arena and barn.

Building PA Program —LancasterProspers UrbanCapital FundBuilding PA monies, managed throughthe LancasterProspers Urban Capital Fund,are allocated solely to redevelopmentprojects within urban areas. 2008 EDCFinance Corporation Building PA projectinvolvement includes:

Auntie Anne’s, Inc. City of Lancaster

Sam Beiler, President & CEO of AuntieAnne’s Inc., used a $1 million Building PAloan, which was approved in 2007, to helpredevelop the Chestnut Street post officebuilding into the Auntie Anne’s corporateheadquarters and comprehensive trainingcenter for retail franchisees.

Notably, EDC Finance is privileged tohave assisted the first-ever Building PAloan to close in the Commonwealthsince the program’s inception.

Liberty North City of Lancaster

Developer Ed Drogaris is taking advantageof a $1.2 million Building PA loan to redevelop two former Armstrong WorldIndustries buildings into mixed-use facilities.

In 2007, Mr. Drogaris received his first$900,000 Building PA loan to redevelopthe former Swisher Tobacco building onNorth Prince Street into a mixed-usecommercial/residential property.

Norwich Properties, LLC City of LancasterFred and Lisa Groff stand outside theformer West End Market, which theyplan to redevelop with the help of aBuilding PA loan into a multi-tenant

commercial building, including a newGroff Family Funeral Home.

2009 Annual Report l 9

Upper Leacock TownshipSmall Business First Loan ProgramSBF provides low-interest loan financingfor a portion of the costs of land, building,machinery, equipment and working capital to qualified small businesses (100employees or fewer).

Kline’s Services, Inc.East Hempfield Township

Since 1955, Kline’s Services has been a leader in the wastewater and septicsystem business in Southcentral Pennsylvania. An SBF loan helped thefamily-management team, Marsha, Davidand John Kline, to construct an 8,000sq. ft. building that will house their recent recycling venture — convertingfood-grade oil and grease waste into fuel-grade oil capable of running a boiler or being mixed into biofuels.

U.S. Recycled Wood Products, Inc.,

Entrepreneurs Ed Druffner and Ed Zook(above) took advantage of an SBF loan tostart up U.S. Recycled Wood Products, Inc.,where they recycle wood scrap obtainedfrom local wood manufacturers and producean alternative firewood product, an environmentally-friendly wood brick.

PK MachinePequea TownshipPaul and Sandra Kralicek used an SBFloan to purchase an existing 6,000 sq. ft.building to house their growing specialtyniche machine shop business.

Thornberry Ltd.East Hempfield TownshipTom and Linda Peth, principals ofThornberry Ltd., manage a company thatdevelops software for the home healthcareand hospice industry. Anticipatingcompany expansion, the Peth’s used SBFfinancing to purchase an office suite tohouse additional programmers.

10 l 2009 Annual Report

Next Generation Farmer Loan ProgramNGFLP provides next-generation (beginningor first-time) farmers the opportunity topurchase land and other capital intensiveassets to begin their agriculture enterprise.

Notably in 2008, 19 Lancaster Countyfarms received NGFLP approval, whichis up from 12 the previous year. LancasterCounty now exceeds all other counties inthe Commonwealth with the number ofNGFLP-approved projects.

First Industries Fund —Small Business First LoanProgramFIF-SBF is aimed at strengthening PA’sagriculture industries by providing accessto funding to aid qualified for-profitagriculture-related businesses.

First Industries Fund —Machinery & EquipmentLoan ProgramFIF-MELF provides funding to qualifiedfor-profit agriculture-related businessesto acquire and install new or used, andto upgrade existing machinery andequipment.

Gochenaur Farm,

For several years, Scott and JenniferGochenaur had been looking for a starterfarm that would allow them to enter thefarming industry and where they couldraise their young family. With assistancefrom the NGFLP and the FIF-SBFprograms, these first-time farmers nowwork a 21-acre egg-production farm.

Hershey FarmRapho TownshipUsing an SBF-FIF loan, Stephen andHeidi Hershey along with their son,Philip, purchased 80 acres of the familylayer farm, which includes seven vacantlayer houses. They plan to renovate fourof them and bring the younger generationinto the ownership of the family farmingoperations.

Mount Joy Township

2009 Annual Report l 11

2009 MEMBERSHIP EDC Finance Corporation

Jeff Ainslie Triple H Construction, Inc.

Jim Appel Apple & Yost, LLP

Chris Barrett PA Dutch Convention & Visitors Bureau

Timothy Bianchi Lancaster County Career & Technology Center

Jeffrey Bleacher Ross, Beuhler, Falk & Co.

Joan Brodhead Community First Fund

Michael Carper Housing Development Corporation

Joshua Cohen Hartman Underhill & Brubaker LLP

Michael Davis Barley Snyder, LLC

Michael DeBerdine Rhoads Energy

Larry Downing Manheim Township

Patrick Egan Select Security

Dan Fichtner Providence Engineering

Earl Furman Versatek, Inc.

R. Edward Gordon Wohlsen Construction Company

Robert Heiserman, Jr. Donegal Real Estate

Barry Huber Trout, Ebersole, & Groff, CPA

Charlotte Katzenmoyer City of Lancaster

Walter J. Legenstein Certified Carpet

Craig Lehman County of Lancaster

Glenda Machia ASSETS Lancaster

Michael Peachey Acuity Advisors and CPAs

Barbara Reist Dillon Nikolaus & Hohenadel, LLP

John Rose Horst Group

Stuart Savin Harrisburg Area Community College

Thomas Showers Manheim Area EDC

Betty Tompos Thaddeus Stevens College of Technology

James Warner Lancaster County Solid Waste Management Authority

The EDC Finance Corporation Membership is comprised of representatives from government,financial institutions, community organizations and business. It meets annually to be updatedon EDC Finance activities and to discuss and vote on necessary matters.

Brubaker FarmsEast Donegal Township

Luke Brubaker (right) and sons, Mike andTony, took advantage of a $415,000 FIF-MELF loan to assist with an alternative energy project on their farm, where theyinstalled a methane digester to take animalwaste from their dairy herd and convert itinto electricity.

www.edcfinancecorp.comLaunched in July 2008, the EDC FinanceCorporation website provides in-depth information about our business andproduction agriculture financing programs,including current loan rates. You canlearn much more about all programs byvisiting www.edcfinancecorp.com.

There are those who attempt to define economic development in termsof the number of jobs retained or created,the number of businesses started,expanded or relocated, the per capita income level, improved infrastructure or the expansion of the tax base.

None of these considerations is inaccurate, but with economic developmentin recent years becoming increasingly sophisticated and highly professionalized,they are overly simplistic and incomplete.Keeping our economic foundationsstrong is important, but moving forward,we also must begin to understand thestructure and competitive position ofLancaster County’s economy, takingsteps to increase its competitive advan-tages and build prosperity.

As we work to strengthen LancasterCounty’s economy, EDC understandsthat economic development begins withlocal stakeholders. Through teamwork,we build strategic partnerships with industry leaders, economic and communitydevelopers and elected officials to helpattract investment and further developLancaster County’s business and agriculturecommunities.

Programs abound to encourage or

incentivize development, but no onestrategy, policy or program has everachieved successful economic development.Each community faces a unique set ofchallenges and opportunities and has adistinct set of needs based on its history,heritage, issues and objectives. LancasterCounty is no different.

By keeping our eyes on the horizon,we at EDC aggressively seek out programs and opportunities to meet our communities’ current needs while considering opportunities for our futuregenerations. Listed below are just a fewof EDC’s 2008 initiatives:

• Facilitated the redevelopment ofbrownfield sites, such as the formerArmstrong World Industries complex,to remove a potential blight and replace it with new facilities, jobsand community amenities

• Assisted in landing the Hardy NorthAmerica distribution center, office andshowroom facility in West HempfieldTownship, a significant U.S. marketpresence for this high-end UK fly-fishingequipment manufacturer

• Pursued U.S. Small Business Administration approval to administerthe flexible SBA 504 loan program,an additional tool in the financialtoolbox for our small businesses

• Sought additional funding throughthe Building PA/LancasterProspersUrban Capital Fund to accommodatemore urban redevelopment projectsand return to the tax roles vacant, obsolete or underutilized buildings

• Assisted our agriculture communitywith their needs to work farmland inmore productive and efficient ways, aswell as to pass their farming legacy onto future generations

However, all that we do — our myriadof Programs and Projects — is only possiblethanks to the support and generosity ofour Membership. Your partnership withEDC fuels our achievements. You are theindispensable and requisite key to oursuccess, and by extension, to the Progressand Prosperity of our growing community.

David K. Nikoloff, President, Economic DevelopmentCompany of Lancaster County and

EDC Finance Corporation

12 l 2009 Annual Report

PROGRESS & PROSPERITYA proactive, long-term approach to economic development takes vision and teamwork.

2009 Annual Report l 13

Our activities and achievements can only happen with Membership support.

2009 PROJECTED REVENUES

2009 PROJECTED EXPENSES

Membership $475,000

State Funding$124,000

Investments and Interest Reimbursements$70,000

EDC Finance Corporation$65,000

Business Retention and Expansion Program$60,000

Project Income$40,000

Other$30,000

Staff/Programming$584,347

Operating$157,153

LancasterProspers$40,500

Marketing$37,000 Fundraising

$5,000

2009 BUDGET $864,000

Strategic Planning$40,000

Rest assured, your support goes a long way in strengthening the economic well-being of our county. EDC is privileged to receive such commitmentfrom so many local companies, organizations and municipalities (see Membership list on page 3), and to whom we say thank you.

With our Investment and Audit Committees, EDC and EDC Finance Corporation not only remain visionary in efforts to maximize your supportdollars, but also to act as good stewards of those funds.

OFFICERSDavid R. Keller, Board ChairRandall L. Horst, Board Vice ChairDavid K. Nikoloff, PresidentJohn W. Biemiller,

Vice President, Secretary, Treasurer

DIRECTORSNancy S. Arnold

Partner, Audit Services GroupReinsel Kuntz Lesher LLP

Thomas T. BaldrigePresidentThe Lancaster Chamber of Commerce & Industry

Thomas E. BeemanPresident and CEOLancaster General

Samuel R. BeilerPresident and CEOAuntie Anne’s

John M. BuckwalterChairman of the BoardLancaster Newspapers

Nevin D. CooleyPresident & CEOHigh Real Estate Group

John D. CoxExecutive VPTurkey Hill Dairy

Joe CrosswhiteRegional PresidentM&T Bank

Michael G. FesslerRegional Marketing Manager, West RegionUGI Utilities

Mark D. GainerChairman, President & CEOUnion National Community Bank

Randall L. HorstPresident & CEOHorst Group

David R. Keller, Esq.PartnerBarley Snyder

Gregory S. LefeverMarket PresidentPNC Bank

John M. LevitskiRegional DirectorPPL Corporation

Theodore E. LongPresidentElizabethtown College

Keith A. OrrisVP Adm. Services & External AffairsFranklin & Marshall College

Philip B. ShoberSenior Vice PresidentWachovia

R. Scott Smith, Jr.Chairman, CEO & PresidentFulton Financial Corporation

David G. WilliamsPresidentSechan Electronics

EMERITUS DIRECTORSGibson E. ArmstrongRobert S. Bolinger Dr. Joseph A. CaputoRobert C. GrayJohn M. HallgrenAlexander Henderson IIICalvin G. HighEsther G. GemmillCalvin E. LevisW. Kirk LiddellJessica H. MayC. Eugene MooreTimothy W. PetersG. William RuhlJohn O. Shirk Kenneth G. Stoudt Daniel C. Witmer

EXECUTIVE COMMITTEENancy S. ArnoldThomas E. BeemanJohn M. BuckwalterJohn D. CoxRandall L. HorstDavid R. KellerJohn M. LevitskiR. Scott Smith, Jr.

COUNSELBarley Snyder

2009 EDC Board of Directors The EDC Board of Directors meets monthly to review EDC's involvement with community development efforts and to be updated on the numerousbusiness, agriculture and community development and revitalization projects around Lancaster County. We thank the Board for their active interestand participation in all EDC initiatives.

14 l 2009 Annual Report

OFFICERSJohn H. Rose, ChairR. Edward Gordon, Vice ChairDavid K. Nikoloff, PresidentJohn W. Biemiller,

Vice President, TreasurerLyle D. Hosler, Secretary

DIRECTORSChristopher S. Barrett

President & CEOPA Dutch Convention & Visitors Bureau

Joan M. BrodheadVP & COOCommunity First Fund

Michael R. CarperPresident & CEOHousing Development Corporation

Joshua D. Cohen, Esq.PartnerHartman Underhill & Brubaker

Michael W. Davis, Esq.PartnerBarley Snyder

Lawrence A. DowningCommissionerManheim Township

Patrick M. EganPresidentSelect Security

R. Edward GordonExecutive VP, CFOWohlsen Construction Company

Robert W. Heiserman, Jr.Broker/OwnerDonegal Real Estate

Charlotte A. KatzenmoyerDirector of Public WorksCity of Lancaster

Walter J. LegensteinChairman and CEOCertified Carpet Service

Craig LehmanCommissionerCounty of Lancaster

Michael P. PeacheyCPA, PartnerAcuity Advisors & CPAs

John H. RoseSenior VP and CFOHorst Group

Stuart J. SavinCampus VP and DeanHarrisburg Area Community College, Lancaster Campus

Betty K. TomposVP for Finance and AdministrationThaddeus Stevens College

of Technology

COUNSELAppel & YostNikolaus & Hohenadel

SPECIAL PROJECTSBarley Snyder Hartman Underhill & Brubaker

ACCOUNTANTS Walz, Deihm, Geisenberger,

Bucklen & Tennis

AUDITORSBrown Schultz Sheridan & Fritz

AUDIT COMMITTEEDavid R. Keller, ChairJoe CrosswhiteGregory S. LefeverWalter J. LegensteinBetty K. Tompos

EDC MEMBERSHIP COMMITTEEJohn M. Levitski, ChairNancy S. ArnoldJohn D. Cox

Earl FurmanR. Edward GordonRandall L. HorstDavid R. Keller

INVESTMENT COMMITTEER. Edward Gordon, ChairThomas E. BeemanMichael G. FesslerMark D. GainerNancy S. Arnold, Ex-officioJohn H. Rose, Ex-officio

STRATEGIC PLANNING COMMITTEEDavid R. Keller, ChairNancy S. ArnoldThomas E. BeemanJohn H. Rose

MARKETING & COMMUNICATIONSHamilton Gregory Advertising

PHOTOGRAPHYRobert Polett Photography

STAFFDavid K. Nikoloff, PresidentJohn W. Biemiller, Vice PresidentLyle D. Hosler, Project ManagerJean K. Rehrig, Office & Systems DirectorAnnette E. Bart, Program Analyst Tara L. Claudio, Business Retention SpecialistJanet L. Foster, Administrative Assistant

2009 EDC Finance Corporation Board of Directors The EDC Finance Corporation Board of Directors meets to assess local business and production agriculture applications for select federal,state and local financing assistance. The board also reviews, as needed, significant community real estate development/redevelopment projects in Lancaster City and the county's boroughs and townships. The all-volunteer Board serves multi-year terms and we are grateful to them for theirmany hours of dedicated service.

2009 Professional Services, Committees and Staff

2009 Annual Report l 15

100 South Queen Street l P.O. Box 1558 l Lancaster, PA 17608-1558 l 717-397-4046 l edc@edclancaster.com