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Potsdam-based LC Drives asks for county support as they seek $50 million from state

Posted 12/11/19

BY ANDY GARDNER North Country This Week CANTON -- LC Drives will seek $50 million from the state to build an expanded manufacturing facility in Potsdam and is asking the St. Lawrence County Board of …

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Potsdam-based LC Drives asks for county support as they seek $50 million from state

Posted

BY ANDY GARDNER
North Country This Week

CANTON -- LC Drives will seek $50 million from the state to build an expanded manufacturing facility in Potsdam and is asking the St. Lawrence County Board of Legislators to support them.

At the board's Monday, Dec. 9 Services Committee meeting, Devon Sutton from LC Drives outlined their vision for the next five years. She is the company's director of strategic operations.

"We plan to grow to about 300 employees in the next five years," Sutton said, later adding that they are targeting $1 billion in annual sales in 10 years.

The $50 million from the state would go toward building a permanent facility on a Route 56 lot that their CEO, Russ Marvin, now owns.

"We're asking for state funding of roughly $50 million, and we intend to put in $60 million," Sutton told the Services Committee. "That $50 million would ensure these jobs stay here in Potsdam."

"Should you not get the funding ... what is your alternate plan?" asked committee member Legislator Nance Arquiett, D-Winthrop.

"There are other suitable locations, but our preference would be to exhaust all options here first," Sutton said.

"So it is vital the state funds it," Arquiett said.

"It is vital to project success," Sutton replied.

Legislator Kevin Acres, R-Madrid, said he is concerned that an anticipated state budget shortfall for 2020-21 could mean cuts to economic development programs to close the gap. Sutton said she doesn't believe that will be the case.

"I'm concerned Potsdam, which has been granted the $10 million, if the state is going to fall back on those awards ... or what they're going to do to balance the budget," Acres said.

"In terms of economic development, there's a formula ... if the state invests X amount of dollars, they expect to get Y amount of return in taxes and spending," Sutton replied.

Legislator David Haggard, D-Potsdam, also said he isn't worried about the shortfall.

"I'm not concerned about the state funding ... I think the sate has a certain amount of money they're looking at at any time for business development," he said.

Sutton described all of the employment positions at LC Drives as "competitive living wages" with "good benefits."

At the committee meeting, Arquiett asked Sutton their specific wages. Sutton said they start in the $15 per hour to $20 per hour range, but in a phone call the day after the meeting Sutton called the exchange "a misleading question and a misleading answer."

"We treat them according to who they are, in terms of their professional development path," Sutton said. "The wage is sort of a small part of it."

She said their workers come in with a wide range of experience, ranging from "absolutely entry level, no skills, versus someone who spent time in the military with welding certification."

She said their workers are not unionized.

"We hope to treat our people incredibly well so there is no reason (for the workers to organize)," she said the day after the meeting.

She said their main sources of employees are local colleges, and an internship program with Fort Drum where soldiers go on an unpaid internship then get a job when they leave the service.

"We've had a 100% hire rate out of that program," Sutton said.

She also said they've attracted laid off workers from manufacturing plants, and drawn in senior executives from elsewhere in the country. Some of their executives are from the area originally and are returning, while others were persuaded to relocate.

The company makes motors and at full capacity they expect to have four or five production lines each making a motor per day.

Sutton said they can be used in marine propulsion or for harnessing wind energy, among other uses.

LC Drives motors are "half the size, (which) means it's also half the weight of our competitors," Sutton told the board, "making wind energy much more feasible in sustainable energy."

Acres asked if they would consider installing a rail line at the new facility, but Sutton said they find they're best moved by truck.

"Your model fits perfectly with a North Country that has a lack of transportation ... no interstate highway for miles and miles and miles," Haggard said.