INVESTOR NEWSLETTER - JUNE 2009

Company Growth
Company growth remains steady in our region. So far, 10 companies have announced projects creating 1,600 new jobs for Northeast Florida.

SAFT, the world’s largest battery manufacturer, is in final discussions with the city and JEDC to build a new $200 million lithium ion battery manufacturing facility at Cecil Commerce Center. This will bring the latest technology in clean energy manufacturing and energy storage products to our region and employ 300 in its first phase.

Regional Announcements
Nassau County announced the relocation of Science First's operations to Yulee. Science First, a manufacturer of science teaching aids, is relocating from Buffalo, N.Y. to Nassau and will add 20 new high-wage jobs to the county. The company is moving into a new 25,000 square foot facility in the Nassau Tradeplex.

Flagler County announced the expansion of National Direct Response, a call center that currently employs 40. This expansion is bringing 250 additional jobs to Bunnell, with 60 new jobs by June 2010. The company will add another 190 jobs by 2011 and the construction of a new building. Flagler also won the "Deal of the Year" award for Rural Counties at the 2009 Florida Economic Development Council conference for their hard work keeping Palm Coast Data Center in Flagler, retaining 1,000 jobs and adding 700 new jobs.
Congratulations to our partner counties for recruiting these great projects to the region.

Paris Air Show
Cornerstone participated with the mayor, City Council and Airport Authority in the Paris Air Show recently. We were able to meet with 15 outstanding companies in the aviation industry. These high level contacts introduced new possibilities and advanced existing projects. Our involvement in this show has set the stage for potential new business in our region.

Cornerstone Unveils Its New Website
Since the beginning of the year we have been hard at work redesigning and updating our economic development website. The new site has a fresh and unique feel and is a one-stop-shop for information about our region for corporate executives and site consultants examining our region for business expansion and relocation opportunities.

A tremendous amount of planning and effort went into the site redesign, led locally by St. John and Partners. Whether it’s a CEO looking to relocate or expand a company, or a site selector looking to add Jacksonville to a project short list, both can find all the information they are looking for on this site.

Everyone is encouraged to visit the new site to explore the wide variety of detailed information on the region’s real estate opportunities, Northeast Florida’s business environment and quality of life.

George Gabel Named Northeast Florida’s “Volunteer of the Year”
The Florida Economic Development Council named George Gabel, partner with Holland & Knight, Northeast Florida’s “Volunteer of the Year.” The Council selected George for this prestigious award because of his active involvement in economic development for Cornerstone and other organizations.

George has been and continues to be the driving force behind the region’s “internationalizations” and is recognized as a leader in fostering awareness of international business. He remains at the forefront in educating our region on the importance of doing international business and what international business means to Northeast Florida when a presence is established.

George has served as International Chair for the Cornerstone Regional Development Partnership since 2004 and has actively developed programs that have provided education and outreach for the region's business community.

What We Learned from Reality Check
At our June 10 Regional Economic Development Forum we heard from Rob Palmer, incoming chair of ULI and co-chair of Reality Check, on the results from our recent Reality Check visioning exercise. Business, community and government leaders from across the region came together to study and evaluate job and population growth in our region through 2060. Participants were divided into teams and developed guiding principles, prioritized barriers and decided on solutions we need to overcome and discussed solutions to help the region grow. Here are the highlights:

Guiding Principles

• Develop and utilize alternative transportation modes.
• Redevelopment and urbanization.
• Leverage development of existing and planned transportation.
• Promote economic vitality and competitiveness.
• Leverage natural and geographic resources to maximize value for existing and future residents.
• Create an educated workforce for existing and future jobs.

Barriers to Change Development

• Inadequate infrastructure funding.
• Concern surrounding urban sprawl.
• Opinions on traditional definitions of transportation and infrastructure development.
• The willingness of public and political leaders to drive growth.
• Lack of water transportation
• Dealing with existing development.

Solutions for Future Development

• Enhance the region's IT infrastructure to reduce the commute time to and from work.
• Develop a solution for enhanced water transportation.
• Work to better align jobs with existing talent.
• Demonstrate and educate communities on how population and job density should look like with new development tactics.

Implementation of these results will begin and extend over the next 18 months. Northeast Florida Reality Check (NEFRC) is developing scenarios based on the guiding principles selected at Reality Check and will get as much public input into them as possible. NEFRC also is asking all seven county local governments to sign a 'compact' to try and implement the principles. Out of this and public input a vision will be developed and included in the NEFRC Strategic Regional Policy Plan.

Regional Planning Forum Discusses Key Issues
At the June 10 Enterprise Florida Northeast Regional Strategic Planning Forum, regional and state panelists came together to discuss Jacksonville and Northeast Florida's economic development future. Three key issues became clear as top priorities for business leaders and government officials: Port Expansion, Transportation and Education.

• Port Expansion - this is a key to the economic future of Northeast Florida. We need to be prepared when the Panama Canal's widening is complete and Pacific shipments can bypass the West Coast and head to the East Coast.
• Transportation - panelists emphasized the importance of the First Coast Outer Beltway, which will connect communities and open up new areas of growth. The issue of public transportation was also discussed as our region's population grows outside Duval County.
• Education - in order to capitalize on the expected growth, there needs to be a greater emphasis placed on educating students to fill available, high-growth jobs and ensure we don't lose high-level talent to other states.

The Forum was a great success, where important issues were discussed and plans for the future of our region and state were developed.

Labor Study Underway for Northeast Florida
Cornerstone, JAA, JEDC and WorkSource have kicked off a labor study that will analyze the size and quality of the industrial labor force in Northeast Florida. This study will provide existing and prospective companies looking to relocate or expand to our region the necessary information needed to make that decision.

The Wadley Donovan Gutshaw Consulting firm teamed up with Biggins, Lacey and Shapiro to conduct this study. They will focus on three specific targeted industry sectors - advanced manufacturing, aviation/aerospace and logistics. Cornerstone and other Northeast Florida businesses will use the study results to convince companies and displaced workers that our region has an attractive labor pool for those targeted industry companies.

Advanced Manufacturing - A Cornerstone Targeted Industry
In our last newsletter, we took a closer look at the finance and insurance services industry. This month we will focus on the advanced manufacturing industry, the current environment and how we are looking to grow this sector in the future.

Although manufacturing accounts for roughly six percent of the overall Northeast Florida economy, Duval County is one of two areas in Florida that currently has seen positive growth in manufacturing. Our advanced manufacturing industries are diverse and include companies engaged in breakthrough technologies, including electronics, medical devices and aviation and aerospace. Companies such as Atlantic Marine, Northrop Grumman, Vistakon, Rulon, International Flavors and Fragrances and Medtronic have all experienced success in our region.

The region's network of excellent logistics infrastructure for distribution provides access to the fastest growing population market in the United States as well as international customers through local port facilities. With a flexible, mission-oriented and skilled workforce, lower business operating costs and great quality of life, Jacksonville will continue to position itself as a growing area for manufacturing. The recent work with Saft is a great example of a project in this targeted industry.

For more information on our advanced manufacturing industry, contact John Haley, senior vice president of Business Development, at (904) 366-6671 or John.Haley@jacksonvillechamber.org.





Tell Florida Trend Why You Live in Jacksonville
Throughout 2009, Florida Trend is publishing a series of profiles of Florida communities called "Community Portraits." The fifth Community Portrait on Jacksonville will appear in the August issue. To add to the profile, Florida Trend is asking Jacksonville residents to share why they like living here. If you grew up in Jacksonville, share why you decided to stay. If you relocated here, share why you chose to make Jacksonville your home. You can submit up to 200 words to feedback@floridatrend.com.

Sincerely,
Greg Smith

Cornerstone Chair
Jacksonville and Northeast Florida President, Bank of America

Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns Counties
3 Independent Drive • Jacksonville Fl 32202 • 904.366.6639
bizrelo@jacksonvillechamber.org • www.expandinjax.com
Where the Future Leads®