W elcome to the 2010-11 Annual Report for Battle Creek

Unlimited. Businesses in Fort Custer Industrial Park may have cut back temporarily in response to a sluggish economy – but most saw stronger sales and employment levels this reporting year. Corporate commitment to Battle Creek is evident and enduring. Rösler began a 110,000 square foot expansion, approaching $5 million in investment. Rösler will add 58 new jobs. TODA America started the first phase of its lithium-ion battery components operation, and created 37 jobs. Denso Manufacturing Michigan celebrated 25 years in Battle Creek this year, NexThermal commemorated its 25th anniversary, and Geislinger Corporation celebrated its 10th anniversary. As we enter the third year of downtown transformation, an emphasis on STEM education is growing in our area schools. The International Food Protection Training Institute is on a solid foundation with the US Food and Drug Administration and the Food and Agriculture Protection Training Consortium. Covance invested more than $14 million to establish a laboratory with more than 65 employees researching nutritional chemistry and food safety. Progress on the Michigan Avenue streetscape, M-66 gateway and bridge lighting improvements bodes well for a new and exciting downtown environment. The Downtown Partnership, Direct Investment Fund, and BC CAL KAL Inland Port Development Corporation all contributed positive reports. I hope you’ll enjoy the details on the following pages. To wrap up, we include an overview of initiatives for FY 2011-12. On behalf of Battle Creek Unlimited, our sincere thanks to our boards of directors, staff, and the fine volunteers who made possible the successes this year.

Karl Dehn, President & CEO Battle Creek Unlimited, Inc.

Aviation and Aerospace An International marketing strategy under contract with OCO Global focuses on the robust aviation and aerospace sector in Battle Creek. Staff participates in domestic and international trade shows, with one-on-one meetings scheduled by OCO and impromptu introductions occurring on site. Thirty-eight leads were generated not only from trade shows but also from monthly reports received from OCO. Staff continues to improve upon the BCU business proposition for aviation and aerospace investment, while the database of vendors, customers, and service providers remains well-received. Battle Creek Air National Guard Base, in participation with the Defense Logistics Agency (at the Hart-Dole-Inouye Federal Center), the Fort Custer Training Center (Michigan Army National Guard and Reserves), the Marine Corps Reserve, the Navy Operational Support Center Battle Creek, and the Battle Creek Veterans Affairs Medical Center concluded an economic impact analysis conducted by the Upjohn Institute for Employment Research. In all, the operations employ more than 4,200 workers in Calhoun County, accounting for 7.5% of total employment in the county. Total impact of Department of Defense and Veterans Administration activities on employment and earnings in Calhoun County amounted to nearly 6,500 jobs and $283 million in wages and salaries in 2010, generating $333.2 million in added gross regional product for Calhoun County. Conclusions specific to the Air National Guard Base:

1,127 total base employment

14 indirect construction jobs

29 indirect retail trade jobs

8 indirect professional and technical services jobs

18 indirect administrative and waste services jobs

17 health care and social assistance jobs

27 accommodation and food service jobs

29 other jobs

39 state and local jobs W. K. Kellogg Airport aerial photos and computer-generated maps of available land sites have been incorporated into BCU sector-specific marketing materials. The new parallel runway is scheduled to open early during the BCU 2011-12 fiscal year.

Fort Custer Industrial Park

Project Activity The Fort Custer Industrial Park continued to grow and diversify:

TODA America held a ribbon cutting/grand opening event on May 24th hosting Governor Rick Snyder and Consul General of Japan Kuninori Matsuda as special guests. TODA America is one of the world’s oldest firms in the energy storage industry, manufacturing metal compounds for lithium-ion batteries. The company employs approximately 37 people and indicates that completion of phase one next year should bring employment to over 45. Phase two will increase the plant size by nearly 80% in the coming years.

SK Corporation employs five people, providing specialty metal materials for automotive and related industries. SK Corporation plans to expand their market into the US Midwest and beyond.

Next Alternative selected Battle Creek as its newest location by purchasing the building and property at 182 Elm Street. Further investment is anticipated.

Denso Manufacturing Michigan celebrated 25 years in Battle Creek, manufacturing automotive heating and cooling systems within a 1.3 million square-foot facility. With two sales and customer service executives in its first Battle Creek office in 1986, DMMI today employs a workforce of 1,700.

Rösler Metal Finishing USA, LLC this year began adding 110,000 square feet, doubling the size of its Fort Custer Industrial Park facility. Rösler plans the addition of 58 new jobs with its nearly $5 million expansion project. Rösler manufactures and services surface preparation equipment and accessories. The Rösler group is the leading supplier of surface finishing equipment and consumables in the world.

NexThermal, formerly Hotset Corporation, celebrated its 25th anniversary of manufacturing advanced heating elements and heating management products in Battle Creek. The company employs over 60 people at its Fort Custer Industrial Park facility and is a world leader in heating technology solutions in growth and emerging niche markets.

Geislinger Corporation celebrated 10 years in Battle Creek. Founded in 1958 in Austria, Geislinger is a leading worldwide supplier of steel couplings and dampers. With 15 employees in Battle Creek, Geislinger supplies the shipbuilding and marine industries.

Doug Voshell, Marketing Director Battle Creek Unlimited, Inc.

Applications filed for tax abatement certificates for personal property, real property or both totaled an estimated $56,122,000 in capital investment in the City of Battle Creek. Larger investments include: TODA America; Rösler Metal Finishing USA, LLC; Musashi Auto Parts; TRMI Inc.; Covance Laboratories; Exopack; Kellogg Company; NexThermal Corporation; Geislinger Corporation; Advanced Plastic Manufacturing and Clyde Union Pump. Prospect Activity Twenty-five new prospects requested information. Based upon project specifications and criteria, each received a detailed package. Industries represented ranged from low-volume, high-end vehicle components to recycling of lubricants and alternative energy component manufacturers. An additional 22 inquiries represented follow-up from previous years’ requests. The employment potential of these prospects ranges up to 1,000 jobs. Requests for information originated from site selection consultants, the Michigan Economic Development Corporation, or from the corporations themselves. As part of planning for prospects, the Battle Creek Tax Increment Finance Authority authorized site and infrastructure improvements to make two sites shovel-ready:

Brydges Road site measures approximately 9 acres;

Columbia Avenue site is approximately 81 acres.

Community Partnership The Veterans Affairs Medical Center (VAMC) now is home to a stone fountain once in Fort Custer Industrial Park and dating back to the presence of the Civilian Conservation Corps in Fort Custer. The fountain graces a common garden area at the VAMC, for the enjoyment of hospital residents and their families. BCU staff joined a community initiative designed to lift Battle Creek families from poverty. The team consists of representatives from Kellogg Community College, Michigan Works!, Goodwill Industries, W. K. Kellogg Foundation and BCU. City of Battle Creek officials and BCU staff entered into a partnership with Calhoun County and the City of Marshall to enhance the impact of US Environmental Protection Agency programs on all residents. Plans include submission of a funding application to the EPA for assessment of suspected contamination on prospective development sites in Battle Creek, Marshall and Calhoun County.

Downtown Transformation Initiative

Two-and-one-half years into a downtown transformation, significant changes are backed by technology and industry, with an emphasis on food innovation and protection. More than $85 million in public and private investments will fund the transformation over the next few years. The transformation evolves and blends the four structural pillars of education, food protection, private investment and streetscape enhancement: Education

Battle Creek Public Schools (BCPS) secured funding to relocate the Battle Creek Area Math and Science Center into the downtown.

BCPS created a science, technology, engineering and mathematics (STEM) education pilot project at Dudley Elementary.

BCPS rededicated the newly renovated and expanded high school.

St. Philip Catholic Central High School continued to renovate its campus.

Western Michigan University, Michigan State University (MSU), Kellogg Community College (KCC) and Miller College expressed interest in increasing programming downtown.

MSU and KCC worked toward food science/processing joint admissions degree program.

Food Protection

The US Food and Drug Administration (FDA) invited International Food Protection Training Institute (IFPTI) onto its National Job Task Analysis.

Food safety bill received congressional approval.

IFPTI entered into a cooperative agreement with FDA to implement its national training vision: 1) developing the training network; 2) serving as the administrative hub; 3) developing the national training curriculum; and 4) building a national instructor cadre.

Global Food Protection Institute (GFPI) hired new CEO.

GFPI implemented its plan for an Emerging Technology Accelerator to invest in and commercialize food pathogen detection technologies.

GFPI’s Imagined Food Futures developed a plan to serve as a national symposia on food protection policy and issues, taking leadership with government/regulatory, academia and industry sectors.

Cheryl Beard, Director of Commercial Development Battle Creek Unlimited, Inc.

Private Investment

Covance constructed a nutritional chemistry and food safety laboratory. The investment exceeded $14 million and employs more than 55 people.

Kellogg Company and Hinman Company completed renovations of K2 to accommodate 600 Kellogg associates from its Porter Street office complex. Improvements created a new connection between Michigan Avenue and Kellogg headquarters campus.

New businesses included Allstate Insurance, Enbridge, Kellogg Community Federal Credit Union, LynnIvan Salon, Malia Mediterranean Bistro, Sgt. Peppers Pizza & Deli and What A Do Theatre.

Expanded and/or relocated businesses included Barista Blues Café, Battle Creek Area Chamber of Commerce, Battle Creek Enquirer, Conway Photography, Elwell Salon, Interactive Learning Systems, and Worgess Insurance.

Battle Creek Community Foundation implemented a successful mural project at Jack Pearl’s and Team Active, serving as a successful model for youth engagement, youth employment and art enhancement.

Calhoun Street business district emerged with several new businesses and a re-energized focus.

Streetscape Enhancements

Battle Creek received a $3.8 million grant for bus/train station renovations.

Lighting on seven bridges continued, with programmable colored lights for seasonal events.

The M-66 gateway screening project created a sense of arrival into the downtown.

Access drive created between West Michigan Avenue and Jackson Street parking lot.

City of Battle Creek entered into a contract with Hoffman Brothers for the Michigan Avenue streetscape enhancements. The project began in April 2011 and concludes in August 2012.

Historic District Commission approved the demolition of 50 West Michigan Avenue.

Efforts are ongoing, to create a wi-fi campus in the downtown area.

BCU continued seeking public input through social media, public presentations and focus groups.

Downtown Partnership The Battle Creek Downtown Partnership is an initiative of Battle Creek Unlimited with the goal of creating a vibrant, urban living center through the enhancement of commerce, business, beautification and promotion. Business The Downtown Partnership works in collaboration on the Downtown Transformation initiative for business attraction and retention.

Marketing & Communications The Downtown Partnership marketing and communications plan is designed to increase foot traffic, change perceptions, highlight offerings available in downtown, and increase sales for downtown businesses through sponsorship of events throughout the spring, summer and fall. This reporting year, foot traffic averaged 1,250 persons weekly. Communication channels include electronic media (eblast and enewsletter Downtown Live) social media, complement print and radio campaigns to increase awareness of downtown investment, beautification, events and construction.

Events The Downtown Partnership hosted more than 30 free, open-air events:

Battle Creek Farmers Market

Fall into the Arts Art Walk

Festival Market Music Series

Outdoor Movie Series

Post Band Concert Series

Ready. Set. Glow! Halloween Walk

Spring into the Arts Art Walk

Vibe@5 Concert Series

Yoga in the Park Beautification During the 2010-11 fiscal year, the Downtown Partnership granted two downtown businesses funds to improve the exteriors of commercial buildings. The Façade Improvement Program, a 50/50 matching grant, is an interest-free, "deferred" loan forgivable over a five-year period. The FY 2010-11 recipients were 34 W. Michigan Avenue and Schlotzsky’s.

Up-to-date construction information can be found at downtownbattlecreek.com/

construction.taf, on Twitter

DowntownBTLCRK #reroutebc and on

Facebook

Alyssa Jones, Communications & Events Manager Battle Creek Downtown Partnership

Beautification of downtown continues with the merchant flower pot program and plantings along Michigan Avenue. The pedestal and way-finding system located throughout downtown and the City were updated, helping visitors navigate the downtown. The Battle Creek Farmers Market received light pole flags to further identify the fresh food market which has called downtown home for over 100 years. Downtown employees assisted in beautification efforts by cleaning and weeding the riverbed of the Battle Creek River. Grants Received To assist the Downtown Partnership in areas of programming and beautification, $16,000 in grant funding was secured from Post Foods, Women Who Care, Battle Creek Community Foundation and Keep America Beautiful. Social Media Tech savvy investors and downtown aficionados alike are only one post or tweet away. In this quick-response, consumer-focused business intelligence environment, BCU and the Battle Creek Downtown Partnership are one click away, too. You may keep up with the latest investments, thought-provoking commentary, events and more on Facebook at facebook.com/battlecreekunlimited and facebook.com/downtownbattlecreek or on Twitter @BCUnlimited and @DowntownBTLCRK. Social media strategies compliment our websites at www.BCUnlimited.org, www.WelcomeToBattleCreek.com, www.BCUKnowlegdeNow.com, and www.downtownbattlecreek.com

Business Improvement Districts Business Improvement Districts (BID) continue as successful economic tools for the Dickman Road and Columbia Avenue corridors. Both BIDs focus on providing matching grants to business owners for exterior improvements, maintaining and enhancing beautification efforts and sponsoring community events.

BC CAL KAL Inland Port Development Corporation BC CAL KAL supports economic development by providing international trade services through use of the Port of Battle Creek, Foreign-Trade Zone 43, and the Customs Cargo Center. A non-profit corporation in partnership with Battle Creek Unlimited, BC CAL KAL is governed by a 20-member board of directors representing manufacturing, education, service firms, and government from its service area across West Michigan. In its most recent annual report, BC CAL KAL reported statistics for FTZ 43:

$44,673,850 total exports

Two businesses were served in the Customs Cargo Center, both on a continuing basis, employing 10 full-time personnel

The FTZ supported four Subzones:

Mead Johnson Nutritionals in Zeeland

Ross Products Division of Abbott Labs in Sturgis

Perrigo in Allegan

Pfizer in Kalamazoo

An active General Purpose site, Silver Foam Distributing, is located in Jackson

BC CAL KAL increased and enhanced marketing and promotional efforts this year through publication of a quarterly newsletter, presentations to BCU prospects and others including:

“Foreign Direct Investment and Exports,” National Association of Foreign-Trade Zones Marketing Seminar

“Newsletters: FTZ Marketing Tool,” National Association of Foreign-Trade Zones Annual Conference

“FTZ 101,” for MEDC export and business development personnel

BC CAL KAL executive director has been elected to serve on the board of directors for the National Association of Foreign-Trade Zones and participates in local and national efforts to ensure the integrity of FTZs as economic development tools. Staff also serves as an advisor to the President via nomination on the Industry Trade Advisory Committee on Customs Matters and Trade Facilitation.

Jan Frantz, Executive Director BC CAL KAL Inland Port Development Corporation

Direct Investment Fund With the economy slowly emerging from its three-year downturn, the Direct Investment Fund saw slight momentum in loan and equity requests this fiscal year:

Two start-up ventures approached the Direct Investment Fund for equity financing. While neither came to fruition, the activity was encouraging.

A current Direct Investment Fund client, with a business located on the outer boundaries of the downtown district, received approval for both a new loan and a re-write of the existing loan.

To ensure that a popular downtown eatery would remain in the downtown district, the business owner and former Direct Investment Fund client was approved for a loan for relocation and renovation purposes.

The Direct Investment Fund assisted another former loan client needing to refinance business debt. Our efforts were instrumental in a successful refinancing with a local lending institution.

On May 5, 2011, the Direct Investment Fund successfully completed the sale of 201 Fritz-Keiper to EPI.

The Direct Investment Fund continued to cultivate its relationships with local lending institutions. In February, 2011, the Direct Investment Fund participated with the Michigan Economic Development Corporation in the “New Lending Programs – Federal, State, and Local Financing Tools” workshop. BCU hired a business accelerator consultant with the primary functions of fostering relationships with small business start-ups and mentoring them toward consideration by the Direct Investment Fund. The consultant attended several workshops and events on behalf of the Direct Investment Fund and assisted 11 potential Direct Investment Fund clients.

Lisa Albrant, Managing Director Direct Investment Fund

Initiatives for 2012 Create a healthy business climate

Augment available property diversity for appeal to potential investors

Promote economic development policy review, development, and implementation for local, state and federal government

Identify potential opportunities for enhanced transportation in the region

Strengthen assets related to US Customs Port of Battle Creek Facilitate job creation and retention

Schedule and operate a business retention program

Identify opportunities and impediments for business and employment growth

Strengthen the Direct Investment Fund portfolio

Improve database to manage business retention and expansion Facilitate capital investment

Schedule and operate a business retention program

Identify potential investments with non-Battle Creek-based companies

Improve database to manage business attraction and expansion

Position Battle Creek as a target for investment Organizational development and continuous improvement

Professional training and development for staff

Enhanced financial reporting Establish downtown Battle Creek as a vibrant, livable urban center

Enhance the downtown streetscape

Increase private investment

Elevate science, technology, engineering and mathematics (STEM) education at area schools

Position the Global Food Protection Institute as a national leader in food protection

Governance & Community Involvement Our governing body represents a cross section of the community including educators, entrepreneurs, manufacturers, health care and other professional service providers, elected and appointed public officials, labor representatives and leaders in philanthropy. Staff volunteer time and expertise to a variety of associations and organizations including education, health care, philanthropy, business membership and economic development.

4950 West Dickman Road, A-1 Battle Creek, Michigan 49037

115 West Michigan Avenue Battle Creek, Michigan 49017