Celebrating 20 YearsANNUAL REPORT 2014

This year marks the 20th Anniversary of the Sullivan County Partnership for Economic Development. The road has been challenging, as limited local resources, infrastructure, location and other issues, have tested our ability to compete with other areas. Yet, there have been numerous successes. Organizations that have invested and created jobs here include: Kohl’s Distribution, Nonni’s, Ideal Snacks, Crystal Run Health Care, Home Depot, D.C. Welding, ASB Greenworld, and Prohibition Distillery. For large or small business, The Partnership continues to be the ‘go to’ place for economic development assistance.

Our organization—a private-public partnership—was incorporated in 1994 as a 501 C (6) to in large measure to help lift Sullivan County out of an economic downspin.

Today, we stand proud of our acheivements over twenty years. Our efforts show a most favorable return on investment to Sullivan County. The total annual taxes collected for Partnership-assisted projects that also received incentives in 2014 is more than $2.6 million. The County portion equals just over $503,000 this year with respective school districts and local taxing jurisdictions receiving the bulk of the generated tax revenues. What is most telling is that these tax revenues continue to grow each year as more projects are completed. Another $2.4 million, and $500,000 in additional county tax dollars are collected from businesses that did not receive incentives. In addition, over 1,311 net jobs are generating an annual payroll of over $40 million, further underscoring the value of investing in the Sullivan County Partnership. While Sullivan County lost jobs from 2013 to 2014, Partnership assisted projects increased jobs by 111.

Three significant Partnership facilitated projects materialized in our last fiscal year that will have an extraordinaryly positive impact on our economy: Veria Lifestyle at the former Kutsher’s Resort (see story on pageXX); Lost Lake, a gated community in the Town of Forestburgh (story on page XX); and the quest for two casino licenses. (story on page xx). The Partnership also assisted small businesses in most every district utilizing the Sullivan Investments Revolving Loan Fund as well as the Incubator Without Walls Revolving Loan Fund. (see story on page XX)

As we celebrate twenty years, we continue to face challenges that make attracting and developing businesses difficult in the region. Yet a core group of dedicated members and partners have been providing unwavering support since our beginning. These people believe in our mission and clearly understand that we help foster new and expanded opportunities for Sullivan County businesses. We honor these lifetime members and fully appreciate the support of those who have followed. The strength of the organization depends on that commitment. Finally, we welcome new directors and members and look forward to making our twentieth year a successful and memorable one.

Sincerely yours,

Fred StabbertChairman of the Board

Marc BaezPresident

Celebrating 20 Years OF ECONOMIC DEVELOPMENT IN CHALLENGING TIMES

A. ALPORT & SON INC.Plumbing & Heating Supplies

SERVING THE HUDSON VALLEY FOR FOUR GENERATIONS

f i s h e r m e a r sA S S O C I A T E S

HonoringTHE LOYALTY & SUPPORT OF OUR CORE MEMBERS

TONIGHT’S SPONSORS:

When we began in 1994, we knew the economic conditions of Sullivan County were such that there was a critical need to pursue and respond to businesses interested in locating to, expanding within, or starting up in Sullivan County at the speed of the market place.

Without the dedication, perseverance and guidance from this group of successful business people who have been with us from the start, our organization simply would not be able to do all we do today to support, advocate and help build the business community while still helping to preserve the quality life in Sullivan County.

Proudly, we recognize and honor a core group of dedicated members and partners for their support and belief in the mission:

The Sullivan County Partnership promotes and coordinates the economic development of private

business in Sullivan County to help enhance the quality of life and improve the standard of living

while protecting and preserving the environment.

A.Alport & Son Plumbing Supplies

Allison-Devore General Contractors, Inc.

Associated Mutual Insurance Cooperative

Bridgeville Office Center

Catskill Hudson Bank

Catskill Regional

Medical Center

Clearwater Distributors Inc.

Cooper Arias LLP

County of Sullivan

Firestorm Solutions LLC

Jeff Bank

First Niagara Bank

Granite Associates, LP

Grey’s Woodworks, Inc.

Irwin Siegel Agency Inc.

Klugman Associates, Inc.

Knack Pavloff & Company, LLP

Liberty Iron Works

Marshall & Sterling Monticello Branch

Misner Agency, Inc.

NYSEG

Schmidt’s Wholesale Inc.

Skoda Enterprise Inc.

Southern Tier Title Agency, LLC

Stone-Myer Consultants Inc.

Sullivan Arc

Sullivan County BOCES

Sullivan County Chamber of Commerce

Sullivan County Democrat

Sullivan County IDA

Times Herald Record

Woodstone Lakes Development, LLC

MID-HUDSON SMALL BUSINESS DEVELOPMENT CENTERS (SBDC) Small businessowners and aspiring entrepreneurs recieve free, face-to-face business consulting and at-cost training on writing business plans, accessing capital, marketing, regulatory compliance, international trade and more. The SBDC network is cost-effective and helps create jobs to ultimately grow the economy.

SCORE A Sullivan County volunteer network of skilled, retired executives. They educate and mentor entrepreneurs for success in small business. SCORE volunteers conduct local workshops and events and provide resources, templates and tools to assist entrepreneurs.

THE COUNTY OF SULLIVAN This is a major funding source for our organization. We work closely with the Division of Planning and Environmental Management on small and main street development. We also work on general project management with the Economic Development Coalition, an advisory board and think tank created by the county and comprised of successful local business leaders in a continuing effort to market our resources to companies and visitors looking to relocate their operations in Sullivan County.

SULLIVAN COUNTY IDA We are a long-time strategic partner with the Industrial Development Agency because we share the commongoals of creating and retaining jobs. IDA grants loans, incentives and tax abatementsto large and small businesses and helps promote economic welfare, recreation opportunities, prevent unemployment and economic deterioration, ensure the prosperity of Sullivan County’s inhabitants, and promote tourism and trade.

PATTERN FOR PROGRESS This public policy research and planning institute of the public and private sectors serves nine counties: Columbia, Dutchess, Greene, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester. Pattern’s mission is to preserve and promote the social, economic and natural environments of the Hudson Valley region by building consensus for a pattern of growth that will ensure a high quality of life.

THE HUDSON VALLEY ECONOMIC DEVELOPMENT CORPORATION This one-stop shop serves companies considering relocation or expansion in Sullivan and six other counties including: Westchester, Rockland, Putnam, Orange, Dutchess, and Ulster. HVEDC provides comprehensive market data, including economic indicators, workforce information, industrial and commercial real estate and other relevant information to location decisions.

EMPIRE STATE ECONOMIC DEVELOPMENT CORPORATION In partnership with the public and private sectors ESD spurs continued innovation and growth, constantly revising the economic development toolbox to give businesses the competitive advantage they need to succeed in New York.

NYSEG When we put together a deal to bring a new business to town or help an existing business expand, New York State Electric and Gas helps make the package even more attractive offering rate discounts and funding assistance. For details: www.nyseg.com/YourBusiness/economicdev/progandincentives.html

WORLD ECONOMIC DEVELOPMENT ALLIANCE (WEDA) A clearinghouse targeted at site selectors that suggests suitable locations to companies desiring relocating or expansion. WEDA also offers strategic consulting services to provide preliminary services free andconfidentially to member companies such as ours to aid in theirsite search.

HVADC AGRICULTURE This alliance becomes more crucial as agricultural business continues to grow. It is the only economic development agency in the Hudson Valley that focuses on the growth and viability of the agricultural economy HVADC assists both new and existing agri-businesses, and supports policies and regulations that recognize and support New York State’s agricultural economy.

Strategic ALLIANCESWe align ourselves with the following local,

regional, state and national organizations also committed to economic growth and vitality.

Business Preservation Seminar Breakfast Hosted by The Partnership and Sullivan County Chamber of Commerce this seminar helped educate business owners on how to minimize or eliminate certain federal and state taxes, minimize retirement taxes, and maximize retirement income. Attendees also learned about managing legal, health, and tax issues to successfully leave a business to one’s heirs.

Sullivan United MixerHeld at the premiere Monticello Motor Club, this power networking opportunity was sponsored by a united business community including: The Partnership, Sullivan County Visitors Association, The Sullivan County Chamber of Commerce and The County of Sullivan IDA.

Preparing Students for Future Workforce DemandsIn December, education leader, Dr. Bill Daggett, Ed.D., showed members specific strategies the nation’s most rapidly improving schools have developed to prepare students for success in a global economy, and the blueprint they used to meet these challenges successfully.

THE PUSH FOR 2 CASINO LICENSES

The Partnership took on a key role in the drive to site two casinos in Sullivan County. Having been an active and vocal member of Citizens for NYS Gaming, our efforts helped push the approval of the referedum. Since passage, in partnership with country legislators, the County of Sullivan IDA, Sullivan County Visitors Association, and The Chamber of Commerce, we traveled state-wide debating the benefits of casinos in Sullivan County. We coordinated the comparative analysis study.

In the final stretch of an arduous and will-testing competition to secure a casino license for both remaining projects in Sullivan County the Sullivan County economic development team made the case for two casino projects at the former Concord site, presenting a united and compelling case that captured the attention of the siting board and made a strong argument for “MO Squared,” the combination of the Montreign and Mohegan Sun proposals. As the vote is eminent the Partnership, continues to work with the County, the IDA and our other economic development stakeholders to help ensure we are successful.

Veria Lifestyle at the former Kutsher’s Resort is proposing a Canyon Ranch-Style spa resort slated for over $85 million in investment. A boutique hotel will be built and scheduled to open in 2015 featuring 75 rooms and a

sportsman’s club, with the bulk of the development taking place thereafter. By any measure this project is an extraordinary economic development project.

Veria Lifestyle, plans to transform the 1,310-acre resort and all its properties outside Monticello into a Nature Cure Lifestyle

Management Center or Destination Wellness Resort. Veria Lifestyle, which is connected to the Veria Living media conglomerate, will feature everything from “yoga sciences” and “ayurvedic medical treatment” to “biodynamic restaurants,” golf, tennis and “a wide range of health-driven activities.” Veria anticipates 300 jobs.

As part of the adaptive re-use, Veria will convert the existing theatre/auditorium to state of the art healing facilities to accommodate the wide range of holistic treatment which will rely on Eastern philosophies of natural medicine. The center will have 265 rooms, championship golf, tennis, indoor & outdoor swimming pools.

SECOND HOME COMMUNITY COMES TO FORESTBURG

Lost Lake Resort is a master-planned, residential, gated golf community located in Forestburgh, NY and featuring over 2,000 acres of lush land, including a 50-acre lake. Over 2,500 lots have been approved for development along with public spaces and community amenities. Commitments have already been secured, with over 40 lots in process currently. This predominantly second home community is a win-win for the Town of Forestburgh and the County as there will be virtually no negative impact on cost of services and the local school system. In addi-tion the residential construction industry as well as sales tax on materi-als will be two areas that will be significantly positively impacted. The project is under development by Double Diamond Companies in Dallas, TX. At completion it will feature: an 18 hole championship golf course, fine dining, full service spa and fitness xenter, conference center with on-site activities director, tennis courts, swimming pools and more.

SWEET, DELICIOUS GROWTH IN LIVINGSTON MANOR AND MONTICELLO

We routinely assist small businesses, providing technical assistance, financing, site location and other related services. We partner with the SC IDA, SC Chamber, SC Planning, SBDC, SCORE, NYSEG, where applicable, to better assist prospects. We have assisted micro businesses with over $1 million in financing, while providing countless hours of technical assistance. The projects we closed on thus far in fiscal 2014 represent approximately $200,000 in loan proceeds which will help catalyze over $1.3 million in gross sales cumulatively for these projects.

MEMBER EDUCATION SEMINARS & NETWORKING

Our INVESTOR-MEMBERS benefit from EDUCATION-based seminars on relevant business topics that also double as wonderful networking opportunties. Our member education programs during our last fiscal year included:

Yanni’s Gyro Express is a Greek style restaurant on Pleasant Street in Monticello for local working professionals as well as a steady second home population with 60% of the business made up of take out customers. The business has grown steadily over the past four years and wanted to expand an eat-in business area. The Partnership assisted Yanni’s through its Incubator Without Walls Loan Fund. Yanni’s has retained four full time jobs and the expansion project results in an additional five jobs.

SEQRA Education ConferenceThe State Environmental Quality Review Act plays such a significant role in development, that updating key stakeholders is critical to the success of any Economic Development entity. This event does just that.

Local land use attorneys and environmental analysts gathered in January to review SEQRA basics and recent changes. Attendees left the day evening conference with a substantial reference guide to review the material covered during the conference.

If the way to people’s hearts is through their stomach, Brandenburg Bakery owns a lot of hearts. The company relocated last spring from Jeffersonville to Main Street in Livingston Manor. This Partnership funded $35,000 of this $200,000 + move and relocation project that now also employs three full and three part-time positions. The family-owned bakery, is operated by Errol and Sarah Flynn and features handmade pastries and artisan breads baked fresh daily, coffee cakes, cookies, custom cakes, desserts and artisan chocolates. It’s all made from scratch using all local and natural milk, cheese, eggs, honey, maple syrup and, when available, local seasonal and organic produce for great-tasting cakes and pastry. Most recently the couple partnered with, The Catskill Brewery’s new “Ball Lightning” pilsner, and crafted “brewery bread” made from the barley mash used in producing the pilsner. Bread made from barley is high in nutrients, fiber and has a lower glycemic value.

DEL

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IC INITIATIVES

A SPA AND WELLNESS RESORT TO RISE AT KUTSHER’S SITE

CORPORATE ATTRACTION BUSINESS EXPANSION

Partnership for Economic Development Board of Directors

INVESTMENT REVENUE

Michael Dollard MDM Fitness Factory, Inc. 2016Dan Grady Hospice of Orange and Sullivan Counties 2016Lela Nussbaum First Niagara Bank 2016Gerald Skoda Skoda Enterprises, Inc. 2016Alan Zuckerman Verticon, LTD 2016

Jim Bates Ecological Analysis 2015 Suzanne Loughlin Firestorm Solutions, LLC 2015Randy Resnick Bernie’s Holiday Restaurant 2015Gary Schmidt Schmidt’s Wholesale 2015

John Conway The Center for Discovery 2014Darlene Fedun Bethel Woods 2014Glenn Gidaly Barton and Loguidice 2014Karin Hilgersom SUNY Sullivan 2014Lew Klugman Klugman Associates 2014Josh Sommers Focus Media 2014Richard Sush Town of Thompson 2014Glenn Sutherland Catskill Hudson Bank 2014Larry Wolinsky Jacobowitz and Gubits, LLP 2014

Gerard Galarneau Catskill Regional Medical CenterCathy Paty Sullivan County Chamber of CommerceJoshua Potosek County of Sullivan

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2009 2010 2011 2012 2013

INVESTMENT REVENUE

2009 $76,599.16 2010 $77,089.50 2011 $75,250.00 2012 $90,350.00 2013 $115,100.00

TOTAL REVENUE/ALL SOURCE

2009 $421,210.10 2010 $280,706.85 2011 $265,755.89 2012 $275,019.59 2013 $349,097.03 2013 REVENUE

Investment Revenue $115,100.00Special Events $11,615.00Annual Meeting $40,850.00Program Administration $3,506.52Interest Earned $525.51IDA Contract $75,000.00County Contract $75,000.00Special Projects $27,500.00 Grand Total $349,097.03

2013 REVENUE

Investment Revenue

33%

SpecialProjects

8%

AnnualMeeting

12%

Interest Earned0%

Program Administration1%

Special Events

3%

County Contract21%

IDA Contract21%

Fred Stabbert III, Sullivan County Democrat (2015) ChairmanGeorge Kinne, Jeff Bank (2015) Vice Chairman

Karen Fisher, FisherMears Associates, LLC (2015) Secretary

Jacob Billig, Billig, Loughlin and Baer (2015) Treasurer

Term Expires Term Expires

2013 FINAN

CIAL SNAPSHOT

OUR MEMBERSA.Alport & Son Plumbing SuppliesA.Servidone Inc./B. Anthony ConstructionAchieve Rehab & Nursing FacilityAdvance Testing CompanyAflac-Maia Aron InsuranceAlbella Restaurant , Inc.All Around the House EnergyAll Bright ElectricAllison-Devore General Contractors, Inc.Alman Monti Taxi Corp.ALSCO Management, Inc.Argenio Brothers, Inc.Armistead Mechanical, Inc.ASB GreenworldAssociated Mutual Insurance CooperativeAtzl, Scatassa & Zigler, P.C.Baez AssociatesBarriger & Company, Inc.Barton & Loguidice, D.P.C.Bella Poultry, Inc.Bernie’s Holiday RestaurantBillig, Loughlin and BaerBlack Creek DevelopmentBlooming Grove Stair CompanyBlue HorizonBluestein, Shapiro, Rich and Barone, LLPBold Gold Media Group, LP/Thunder 102Bridgeville Office CenterBurnwell PropaneCallanan Industries, Inc./Clemente Latham ConcreteCapacity Business ConsultingCarmine’s Meat Market LLCCatskill Dermatology, P.C.Catskill Distilling Co. LTD.Catskill Hudson BankCatskill PrimeCatskill Regional Medical CenterCD Trips, LLC (Liberty Real Estates Ventures LLC)China City Regional Center, LLCClearwater Distributors Inc.Clough, Harbour & Associates LLPCochecton Alpha LLCCombined Energy ServicesCombined Properties of Sullivan CountyCommunity Foundation of Orange and Sullivan County, Inc.Concord Associates LPConstruction Contractors AssociationCoombe Financial ServicesCooper Arias LLPCo-Oper8 Marketing GroupCouncil on Alcoholism & Drug Abuse of Sullivan County, Inc.County of SullivanCounty Petroleum Products, Inc.Crystal Run Healthcare, LLPCunningham Family Farms Inc.Cushman & Wakefield/Pyramid Brokerage Co.David Goldstein Construction Inc.DC Fabrication & WeldingDeb El FoodsDelaware Engineering PCDelaware Valley Job Corps.Dennis Lounsbury Builders, Inc.Design Cooperative (also Thomas V. DeCarlo)Detailed CreatingsDom Resort Inc./Delano ResortDrew, Davidoff & Edwards Law Offices, LLPDunbar Equity Partners LLC-Sullivan RegencyE. Tetz & Sons, Inc.Ecological Analysis, LLCEcotech Spray FoamEmpire Inspections and AppraisalsEngineering & Surveying Properties, PCEnter Equity, Inc.EPR Properties(Formerly EPT:Concord)Fallsburg Central School DistrictFirestorm Solutions LLCFirst National Bank of JeffersonvilleFirst Niagara BankFisherMears Associates, LLCFocus Media, Inc.Formaggio CheeseGarigliano Law Offices, LLP

Glenn L. Smith, P.E., Consulting EngineerGlenwild Industrial LLCGlobal Natural FoodsGozza Graphics LLCGranite Associates, LPGrey’s Woodworks, Inc.Harold Brey & Sons, Inc.Harris, Monti & McLaughlin, Inc.Herschel Realty Corp.Hospice of Orange & Sullivan Counties, Inc.Hudson River Ventures LLCHudson Valley Contracting/Hudson Valley DKIHudson Valley Foie GrasHudson Valley Investment Advisors, Inc.Hysana GarageIdeal SnacksInn at Lake Joseph/Ivan Weinger Ass’ts, LTDIrwin Siegel Agency Inc.Jacobowitz and Gubits, LLPJoseph Gottlieb, P.E., P.C.Judelson, Giordano and Siegel CPA, PCKalish Capital MgtKelly EngineeringKeystone Associates, LLCKlugman Associates, Inc.Knack Pavloff & Company, LLPKohl’s Distribution CenterKristt Kelly Office Systems Corp.Laborers Local 17 LecetLanc and Tully Engineering and Surveying PCLander’s River TripsLaw Office of Charles T. BazydloLaw Office of M.L. Zager, P.C.Law Office of Paula Elaine KayLaw Office of Steven KurlanderLawrence B. Miller Insurance AgencyLC Construction and Sons Inc.LeChase Construction Services, LLCLiberty Community Development Corp.Liberty Iron WorksLiberty Press/Liberty Litho, Inc.Liberty Trading PostLMP Realty LLC (Jose Lima)Luzon Environmental ServicesM & M Auto Group, Inc.M&T BankMajek Furniture WarehouseMajestic Drug Co., Inc.Marshall & Sterling Monticello BranchMartco Management Corp.Martin Hersh Attorney at LawMB Food Processing, Inc.McGoey, Hauser & Edsall Consulting Engineers, P.C.MDM Fitness Factory, Inc.Media SolsticeMedical Professional Liability Agency, LLCMid-Hudson Co-Operative Ins., Co.Mike Preis Inc.Millenium PipelineMisner Agency, Inc.MJ Hospitality and Remodeling Service LLCMonticello Casino and RacewayMonticello Central School DistrictMonticello Motor ClubMonty Alpha LLCMorgan Construction Enterprises, Inc.Mount Saint Mary CollegeMS and DS Holdings Inc.Muss OrganizationNaser Agency, Inc.ND Pro Media, Inc.NES RentalsNew Hope Community, Inc.New York Federal Regional Center LLCNYSEGOld Homestead RestaurantOrange and Rockland Utilities, Inc.Orange County Bancorp, Inc. (Orange County Trust)Parkwood Partners LLCPartners In Safety, Inc.PC PayrollPerreca Electric Co., Inc.Pestech Exterminating, Inc.

PF Jefferson HoldingsPiccolo Paese Plans and Profits, LLCPomona Lake Partners LLC (Aaron’s Sales & Lease)Positive Design and DevelopmentPrecision EngravingPrestige Towing and RecoveryProhibition DistilleryRandolph Katz, D.M.D.Resnick GroupRettew Engineering and Surveying, PCRJ Katz RealtyRJ Smith RealtyRobert Green Auto and Truck DealershipRolling V Bus Corp.Roto Rooter Plumbers and Septic ServiceRoyal T Ranch Corp.Schmidt’s Wholesale Inc.Schumacher Systems, Inc.SDTC - The Center for DiscoveryService Scaffold Company, Inc.Shawanga Lodge LLCShepstone Management Co.Skoda Enterprise Inc.Sneaker WorldSnowdance FarmSouthern Tier Title Agency, LLCSpencer Daniels Agency, Inc.Steingart Associates Inc.Sterling National BankStockbridge Munsee TribeStoloff & Silver, LLPStone-Myer Consultants Inc.Stuart Communications, Inc./The River ReporterSullivan ArcSullivan CCRC (New York Resorts for Seniors)Sullivan County BOCESSullivan County Chamber of CommerceSullivan County Chamber of Commerce Foundation, Inc.Sullivan County Community CollegeSullivan County DemocratSullivan County Farms Inc.Sullivan County IDASullivan County Paving & Construction Inc.Sullivan County SCORESullivan County Supervisor’s AssociationSullivan Fire Protection Corp.Sullivan First RecyclingSuperior Surfacing Systems, LTD.Tectonic Engineering & Surveying Consultants P.C.The Ruby GroupThe SullivanThomas B. Hurbanek Insurance AgentThompson Sanitation CorporationTime Warner CableTimes Herald RecordTown & Country Preferred Properties, LLCTown of BethelTown of FallsburgTown of LibertyTown of MamakatingTown of ThompsonTown of Wallkill Boys & Girls Club, Inc.Travel Inn/NuDesign FurnitureTurner Construction CompanyUnited Way of Sullivan CountyVan Etten Oil Co., Inc.Veria Lifestyle Inc.Verticon LTDVillage of LibertyVillage of MonticelloWarwick Resource GroupWasson EngineeringWestage Management, LLCWhite Lake MansionWindows on Broadway LLCWindsor SchoolWoodbourne Landscape Supply, Inc.Woodstone Development, LLCWoodstone Lakes Development, LLCWSUL/WVOSYanni’s Gyro CaféYogi Bear’s Jellystone ParkYukiguni Maitake Manufacturing Corporation of America

THE SULLIVAN COUNTY PARTNERSHIP FOR ECONOMIC DEVELOPMENT198 Bridgeville Road | Monticello, NY 12701 | Tel: 845.794.1110 | Email: info@scpartnership.com | www.scpartnership.com