Anne Arundel County Executive John Leopold appointed Bob Hannon to the position of president and CEO of the Anne Arundel Economic Development Corp. (AAEDC) on Jan. 4, 2007. He oversees a professional staff of 14, providing economic development services to the diverse businesses of the county; he and the AAEDC also oversee the county’s homeland security-focused business incubator, the Chesapeake Innovation Center (CIC).
Prior to his appointment, Hannon served as the assistant secretary for the Baltimore Region at the Maryland Department of Business & Economic Development, where he was responsible for supporting the economic health and growth of the business communities within Baltimore City and the surrounding counties.
His accomplishments in business development at his previous position include the location of Toyota Financial Services-East Coast, the T. Rowe Price Regional Operations Center, the GM-Allison Transmission Plant and the expansion of Dreyer’s Ice Cream Plant in Laurel. The redevelopment of Towson Town Center and GM’s Broening Highway Plant also rate among the high points of his career.
Hannon also has held executive positions with the Baltimore County Department of Economic Development and Baltimore Development Corp., among other similar organizations. Heading into his sixth year running the AAEDC for the Leopold Administration, he’s looking forward to seeing the growth in (and around) Fort Meade as the economy continues to move, albeit slowly, forward.
What were the AAEDC’s key accomplishments for 2011?
The AAEDC tracked and supported 137 companies that announced a new location or an expansion in the county during 2011. This business growth added (or will add) more than 4,000 new jobs to the county economy and absorb more than 2 million square feet of commercial space.
Our office took the lead for the county on strategic public financing to support commercial growth of such major projects as Greenberg Gibbons’ new Village South at Waugh Chapel, a 1.2 million-square-foot, mixed-use project in West Anne Arundel County [and] the National Business Park, a major business center for the nation’s top defense contractors.
AAEDC also provided assistance to other major projects that are in development or were recently completed, including five in Odenton: The Flats 170 at Academy Yard (apartments), The Village at Odenton Station (mixed-use), Town Center Commons (townhomes), Odenton Gateway (mixed-use) and the Seven Oaks Office Building.
Ciena Corp., which has been a large presence at Airport Square in Linthicum since the tech boom, considered moving out of the county. How did you keep them in the county, specifically in Hanover?
An important focus for us at the AAEDC is business retention — ensuring that our existing companies continue to have what they need to be successful. Outreach to existing businesses can alert us to issues or challenges that can be resolved early on. Our working with Ciena is a good example of successful company retention.
On an ongoing basis, AAEDC has maintained contact with the company at various levels [in discussing topics such as] real estate, help with the permitting process, workforce training and transportation issues. In spring 2011, AAEDC began working with Ciena Vice President, Corporate Real Estate & Facilities, Mark Gorman, to assist with the company’s goal to reach greater efficiency through space consolidation while implementing their global business strategy.
AAEDC coordinated with the Maryland Department of Business & Economic Development (DBED) to ensure that the company had full measure of state and county resources available it. In June, we convened a major meeting with Ciena principals and DBED Secretary Christian Johansson. Together, we presented the case for a Maryland and Anne Arundel County location to Ciena.
With the decision to stay in Anne Arundel County and move to a new building complex, our staff engaged with the new site’s developer, Archon Group, to coordinate all permitting necessary for Ciena to meet timelines established for smooth business transition to new facilities. AAEDC and Archon remain in constant contact to continuously monitor development approvals, permitting and inspections and to ensure that the construction project is proceeding well.
What is the county doing to encourage development and growth within the small business community?
That question can be answered from four angles. The first concerns financing. AAEDC has an array of small business financing programs that can help small businesses grow.
For example, the Arundel Business Loan (ABL) Program offers loans up to $300,000 with guarantees from the Small Business Administration. This past year, the ABL Fund was expanded to include a line of credit up to $100,000, with a state guarantee through the Maryland Industrial Development Financing Authority (MIDFA). And our Business Corridor Investment Loan Program offers zero-interest loans up to $35,000 for exterior improvements to businesses.
The AAEDC office houses several organizations that assist small businesses with profitability strategies. For instance, the Small Business Development Center (SMDC) conducted more than 1,200 counseling sessions in helping companies refine business plans, identify sources of capital, connect to information resources and develop strategies to grow; and the Chesapeake Regional Tech Council (CRTC) offers a forum for more than 250 members via various educational and networking programs throughout the year.
On that note, we also accelerate technological development via the CIC, which is an initiative of the AAEDC that provides counseling, marketing and business development support for early stage technology companies.
The CIC focuses on commercialization of new technologies and assistance with debt and equity financing for its 11 member companies.
AAEDC also partners with various business organizations that, in turn, support small businesses like the Fort Meade Alliance, the BWI Business Partnership and the various chambers of commerce throughout the county. For instance, in December 2011, AAEDC partnered with the Northern Anne Arundel County Chamber of Commerce for a Business Resource Day. Counselors from AAEDC and the SBDC were on site at the chamber offices in Glen Burnie to provide assistance to small businesses. We hope to expand this program in 2012.
What is the state of the AAEDC budget?
AAEDC is funded through a grant from Anne Arundel County. During the last three years, our budget has been reduced in line with reduced county revenues. In 2012, we expect to see our budget remain at the current level.
What do you see as your biggest challenge as we enter 2012?
The biggest challenge for 2012 is the threat of further cuts to the federal defense budget. In Anne Arundel County, both government agencies and private companies are already reacting to defense budget reductions that will come online in October of 2012. Further federal reductions will have a negative impact on businesses in Anne Arundel County.
What will AAEDC focus on in 2012?
In the coming year, AAEDC will continue to facilitate the development in Odenton Town Center and reach out to contractors seeking proximity to Fort Meade, NSA and DISA. An increased focus on revitalization will be among our top priorities as we identify, and make use of, resources to improve neighborhood commercial districts.
Focusing on the county’s designated Commercial Revitalization Areas, this effort will upgrade the quality of life for residents, grow businesses, reduce blight and increase property values.
Working with community and business organizations, we will facilitate infrastructure improvements and work to attract new investment to these older commercial districts. Existing tools, such as the Commercial Revitalization Tax Credit and the AAEDC Business Corridor Investment Loan Program, will be part of this effort, along with new funding sources, including foundations.
