Rockefeller Group / IDI Foreign Trade Zone

Rockefeller Group/IDI Foreign Trade Zone, Scranton,
Pennsylvania is located in one of the most vital distribution
markets in the United States. The property is strategically
situated in the Interstate 81 corridor and Boston, New
York,Philadelphia and Washington, D.C. are all within a fourhour drive from the park.
The Scranton area has an outstanding highway network.
Interstate highways 81, 84, 380 and 476, as well as
Pennsylvania Route 6, all converge in Scranton. These
highways provide direct access to major population centers
and to Interstate highways 76, 78, 80,87 and 95. The park's
location allows shipping by truck to approximately 80% of the
country's population within 2 days.
Rockefeller Group/IDI Foreign Trade Zone, Scranton,
Pennsylvania has received Keystone Opportunity
Expansion Zone (KOEZ) designation and an application is
currently pending to get the park designated a Foreign Trade
Zone (FTZ). The combination of KOEZ and FTZ offers
unparalleled benefits to companies and is a rare feature.
There is skilled, productive and cost-effective workforce in the
Scranton area. Rockefeller Group/IDI Foreign Trade Zone's
location at exit 3 of Route 6 allows an easy commute for
workers.
Wilkes-Barre/Scranton Airport is located approximately 13 miles from Rockefeller Group/IDI Foreign Trade Zone. Both freight
operations and passenger service are offered at the airport.
Major corporations with distribution centers in the Scranton area include: Harper-Collins, Lord & Taylor, Lowe's, Maytag, Office
Max, Procter & Gamble, Sears and T.J. Maxx.
Rockefeller Group/IDI Foreign Trade Zone is in the heart of the I-81 Corridor, which is one of the most
sought-after distribution areas on the entire East Coast. In all, there are 247 acres in this
warehouse/distribution park, which can accommodate 100,000 to over 1 million square feet of development.
Shipping to 80% of the nation's population is in 2 days or less. The heavily populated Boston-Washington
Corridor is within 8 hours. This is certainly one of the most vital distribution locations in the entire Northeastern
United States.
Close proximity to major markets
from Boston to Washington, DC
and west to Chicago:
Cities
Boston
Buffalo
Chicago
Cleveland
New York
Philadelphia
Pittsburgh
Toronto
Washington DC
Miles
300
300
715
380
125
117
288
392
230
Location Advantages
Excellent Highway Network: Interstates 81, 84, 380, 476, and 80, as well as major PA Route 6 converge in
Greater Scranton.
Freight operations at the airport include the handling of air cargo and express and regular mail. Nine air
express companies use the airport on a regular basis.
Major corporations with distribution facilities already in the area:
Harper-Collins Publishers
W.W. North Company
Sears
Lord & Taylor
Procter & Gamble
Time-Warner
Cintas
Supermarket Services
Lowe's
Office Max
US Airways, US Airways Express, United Express and COMAIR/Delta provide regularly scheduled passenger
service at the Wilkes-Barre/Scranton International Airport, just 9 miles south of Scranton.
Recreation
Northeastern Pennsylvania's rugged terrain, spectacular scenery, meandering waterways, and four seasons of
weather combine to offer a tremendous setting for outdoor activities.
Seasonal Activities
Thirteen ski resorts, including Montage (www.skimontage.com), which is located five miles from Downtown
Scranton, combine to create one of the most popular winter sport destinations on the East Coast. Downhill and
cross-country skiing, snowmobiling, and snowboarding are just a few of the wintertime activities enjoyed by visitors
and residents. During the warmer months campers from all over the country travel to Northeastern Pennsylvania to
enjoy the scenery, hiking trails, swimming areas, and fishing streams.
Golfing
The rolling hills and breathtaking scenery of Northeastern Pennsylvania
contribute to some of the best public and private golf courses on the East
Coast. There are 36 public golf courses within a 45-minute drive from
Downtown Scranton. Lackawanna County is home to four excellent private
county clubs, which have hosted prestigious tournaments and have been
recognized for excellence by national golf magazines. Each spring, scores of
professional golfers flock to Glenmaura National Golf Club to play in the
Northeast PA Classic, a regular stop on the PGA Tour.
Biking and Hiking
The Region is a paradise for hikers and mountain bikers. Bike clubs and great biking trails are avaiable. The
Lackawanna Bike Club can introduce you to trails ranging from 11 to 15 miles including some "top secret" routes
within the County.
Fishing and Hunting
Even the worst fisherman reguarly pull rainbow, brown, golden and brook trout, walleye and muskellunge, small
mouth, large mouth, and striped bass, pickerel and panfish from area lakes and streams. Fly-fishing and ice fishing
are also widly popular here.
The diverse habitat produces an abundance of wildlife and offers sportsmen excellent hunting opportunities for big
and small game and trapping for furbearers. The region is home to bears, deer, turkeys and snowshoe hares. It has
cottontails, grouse, woodcock, squirrels, waterfowl and stocked pheasants.
Sports
Greater Scranton offers tons of fun to sports fanatics including AHL hockey, NASCAR Winston Cup racing, AAA
baseball and professional golf. Samples of the array of sporting activities you will find in Northeastern Pennsylvanai
include:
The Wilkes-Barre/Scranton Penguins (www.wbspenguins.com), the AHL affiliate of the Pittsburgh Penguins, play
40 annual home games at the $44 million First Union Arean at Casey Plaza.
The Scranton/Wilkes-Barre Red Barons (www.redbarons.com), the AAA affiliate of the Philadelphia Phillies, play
72 home games on Montage Mountain each season. Lackawanna County Stadium features 11,000 seats, great
views and a roaring crowd.
The Wilkes-Barre Scranton Pioneers (www.wbspioneers.com), a member of Arena Football League 2, play eight
home games in the First Union Arena at Casey Plaza each season.
Retail
Downtown Sranton consists of a 25-square-block area including parts of Spruce, LInden,
and Mulberry Streets, and Lackawanna, Adams, Jefferson, North Washington, Wyoming, and
Penn Avenues. Smaller commercial areas are located in nearly all the City's neighborhoods.
Major Shopping Plazas and Malls:
Mall at Steamtown - Scranton, PA
The Crossing Outlet Center - Stroudsburg, PA
Viewmont Mall - Dickson City/Scranton, PA
Higher Education
The Greater Scranton area has many outstanding colleges, universities and
business schools. Sixteen post-secondary institutions, enrolling more than
41,000 students are located within a 60-mile radius of Downtown Scranton.
Our regional institutions of higher education offer a multitude of choices and
degrees.
Baptist Bible College
Bloomsburg University
College Misericordia
East Stroudsburg University
Johnson College
Keystone College
Kings College
Lackawanna College
Luzerne County Community College
Marywood College
The Pennsylvania State University
University of Scranton
Wilkes University
Some industries in which companies have realized the benefits of locating in an FTZ:
Automobiles
Automobile Parts
Bicycles
Chemicals & Related Products
Computers/Office Equip. & Related Parts
Consumer Products
Crude & Petroleum Oils & Related Products
Electrical Equipment & Related Parts
Electronic Products & Parts
Food Products
Footwear
Home Appliances/Furnishing & Decorations
HVAC Equipment
Jewelry/Watches
Juice Concentrate
Liquor
Luggage/Handbags & Related Products
Machinery/Equipment & Supplies
Metal & Mineral Products
Milk Products/Infant Formula
Motorized Vehicles
Pharmaceuticals & Related Products
Photo Optical Equipment & Supplies
Plastic/Rubber Products
Ship Parts & Related Equipment
Toiletries/Cosmetics & Related Products
Vacuum Fluorescent Displays
Wearing Apparel/Textiles & Related Products
Wood Products
The traditional financial benefits for a company using an FTZ include:
Duty reduction through manufacturing, assembling or processing goods in an FTZ. Upon
obtaining the necessary authority, users may elect to pay Customs duty at the tariff rate
applicable to either the finished product produced in an FTZ or its foreign components imported
into an FTZ, whichever is lower.
Duty deferral through warehousing and distribution of imported goods in an FTZ, including
testing, inspection and packaging. Customs Duty is not paid until goods leave the FTZ. Duty is
not assessed when shipping from one FTZ to another.
Duty elimination through re-exportation of goods from the FTZ or destruction of damaged or
defective goods in the FTZ.
In addition to the traditional FTZ benefits, and as a result of changes to the FTZ Act adopted in
July 2000, companies are integrating the benefits of FTZs into their overall supply chain
planning. Combining two Customs procedures available to foreign trade zone users, direct
delivery and weekly entry/export, users can move merchandise faster through the delivery cycle,
thereby reducing inventory levels and removing costly time from the supply chain.
Direct delivery allows qualified merchandise to be delivered directly form the port to a foreign
trade zone without lengthy clearance delays, removing costly hours or days from the receiving
process. The FTZ operator inspects the merchandise at the zone and receives it into the FTZ for
immediate placement in inventory or production. The next day the operator prepares a report for
Customs summarizing the prior day's receipts.
Weekly entry/export allows users to ship unencumbered form an FTZ based on a weekly
permit obtained from Customs prior to the beginning of the business week. Following the end of
the business week, a summary report is prepared and filed detailing shipments from the FTZ
and triggering any applicable duties or fees. In a high-volume facility with hundreds of incoming
and outgoing shipments per year, this consolidated and post-reporting structure can reduce
administrative costs and burdens significantly while speeding delivery from vendors to
customers, and keeping on-hand inventory to a minimum. Companies that currently file
hundreds of custom entries could reduce their number of entries to one a week in this matter.
While manufacturing has historically been the main source of savings associated with FTZ
usage, these logistics-oriented benefits are attracting a new profile of users to the FTZ program,
including large-volume distribution and retail companies whose business survival depends on
inventory management and speed to market.
There is no better time to explore the benefits of FTZs than during planning and site selection.
While existing facilities can be designated as foreign trade zones, a company can optimize the
benefits of the program by integrating FTZ implementation into its overall supply chain model.
As many corporations expand their global sourcing capabilities, the FTZ program provides
flexibility and a savings plan that can grow with a company's business while offering shared
savings opportunities and closer integration with its vendors and customers.
What is a Foreign Trade Zone?
A foreign trade zone (FTZ) is a parcel of land deemed to be outside the United States for
specific customs purposes, including duty collection. The FTZ program is an extension of U.S.
trade policy designed to encourage U.S.-based activity associated with participation in the global
marketplace while maintaining and attracting U.S. jobs and investment.
Companies operating in an activated FTZ are able to defer, reduce and/or eliminating import
duties on goods stored, processed, assembled or manufactured in the FTZ and realize
significant logistical benefits. Once the goods are withdrawn from the FTZ and enter the
commerce of the United States, the applicable duty is paid.
The Foreign Trade Zone in the International Trade Center, northern New Jersey, has been a successful
Rockefeller Group development for more than 20 years. It has been home to companies from 13 countries
and is one of the most successful inland FTZs in the country.
Rockefeller Group / IDI Foreign Trade Zone, Scranton, Pennsylvania has
recieved Keystone Opportunity Expansion Zone (KOEZ) designation, which
exempts tenants in the park from virtually all state and local income, real
estate and business taxes until December 31, 2013. Actual benefits are
subject to review of the State of Pennsylvania.
The Rockefeller Group and IDI, two of the largest real estate developers in the United States, have entered into a joint venture
to develop warehouse and light manufacturing facilities in a network of FTZ's throughout the United States. The partnership
provides unprecedented development capabilities and end-to-end FTZ advisory services. RGI/IDI enables companies to work
with a single entity in implementing a supply chain strategy that utilizes the full advantages of FTZs.
The Rockefeller Group commenced operations in the 1930's with the development of Rockefeller
Center in midtown Manhattan. Today, The Rockefeller Group is a national owner, developer and
manager of prestigious commercial real estate, and the company is one of the nation's most
experienced developers of FTZs. In the approximately 70 years since its inception, The Rockefeller
Group has developed, leased and managed tens of millions of square feet of commercial real estate.
The company currently has operations in New York, New Jersey, Pennsylvania, Florida, Illinois and
California, with over 13 million square feet of building space under development.
IDI is a full-service industrial real estate developer that is consistently recognized as one of the top
national developers of warehouse, distribution and light manufacturing facilities in the United States.
Since the company was founded in 1989, IDI has developed more than 90 million square feet of
industrial space worth over $3.2 billion. As a testament to the quality and professionalism of IDI, more
than 40% of the firm's projects are with repeat clients. In addition to its Atlanta headquarters, IDI
operates seven district offices in Atlanta, Chicago, Cincinnati, Dallas, Fort Lauderdale, Memphis and
Los Angeles.
The Rockefeller Group and IDI have extensive experience in all aspects of developing commercial real
estate, including acquiring land, master planning, obtaining approvals, constructing buildings and providing first class
management. The companies have developed over 350 warehouse and light manufacturing facilities in more than 50 markets
across the United States for numerous companies, including manufacturers, retailers, distributors and third party logistic
providers. These developments include both FTZ and non-FTZ operations from California to New Jersey.
The Rockefeller Group and IDI offer a unique and complete range of services, which goes well beyond the construction and
management services typically offered by real estate developers. RGI/IDI tie the real estate component of warehouse and light
manufacturing facility development to cost-saving FTZ and logistics strategies and procedures. In addition to developing
facilities on time and on budget, The Rockefeller Group and IDI make specific recommendations as to the best use of FTZs
after analyzing a company's distribution network, potential sites and critical markets, which results in a complete strategic
solution for clients dealing in international trade and distribution.
The Rockefeller Group and IDI develop warehouse and light manufacturing facilities throughout the United States both within
and outside Foreign Trade Zones. The RGI/IDI nationwide network of FTZs has locations in prime distribution markets
throughout the country, with "ready to go" sites that are immediately available for development. Additionally, when a company's
logistics planning mandates that a facility be located in a market that is not part of the partnership's network, RGI/IDI acquire a
site to accommodate the company's specific requirements. The properties that The Rockefeller Group and IDI develop are
available for lease or purchase.
The economic and logical advantages of locating in an FTZ are significant. RGI/IDI work with companies from planning through
implementation and provide on-going support to ensure that companies realize the economic and logistical benefits of locating
within FTZs and the operational benefits of utilizing new state-of-the-art facilities.
www.rockgroupdevelopment.com/ftz
www.idi.com/ftz
Cushman & Wakefield
1717 Arch Street, 30th Floor
Philadelphia, PA 19103
tel: 215 963 4000
fax: 215 568 2604
Stephen A. Cooper
Senior Director
stephen_cooper@cushwake.com
Jeffrey L. Williams
Associate Director
jeffrey_williams@cushwake.com
Rockefeller Group
Development Corporation
New Jersey Headquarters
500 International Drive North, Suite 345
Mt. Olive, NJ 07828
tel: 973 347 9100
fax: 973 347 4047
Edward J. Guiltinan, Sr.
Assistant Vice President
eguiltinan@rockgrp.com