Ogdensburg Company Deal Depends On Federal Contract

A Canadian defense contractor's plan to create over 200 jobs in Ogdensburg is contingent upon securing a contract with the U.S. Armed Forces, but no contract yet exists.

The company, General Propulsion Inc., will make Ogdensburg its new corporate headquarters.

"As soon as we have a contract in place and the contract creates cash flow, we will begin hiring," said John M. Hensler, director of General Propulsion.

In a Tuesday press release, City Manager Arthur J. Sciorra said that the company plans on creating 20 jobs within the next six months and 200 more after they begin production.

"I was just quoting him," said Mr. Sciorra. "He was telling me what he thought his time line could be, that is a preliminary thing that could change when he works on the details."

Mr. Hensler has been working with Mr. Sciorra to create conditions for his company to flourish in Ogdensburg.

"I made contact for Mr. Hensler through some area political offices," said Mr. Sciorra. "They, in turn, contacted with people in various departments."

One of those departments is the Defense Advanced Research Projects Agency, which develops new technologies for the U.S. Department of Defense.

"Our contact at DARPA indicated that they would have an answer for us within six weeks," said Mr. Hensler. "If everything goes without a hiccup, we are looking at maybe a month and a half before we contract."

Mr. Hensler's company is currently headquartered in Kanata, Ontario, a suburb of Ottawa.

"We have five employees right now," said Mr. Hensler. "We were much bigger when we had a contract with the Canadian Navy, but the Navy has since shut down the contracts and the money dried out."

Mr. Hensler says his company has a history of working with the Canadian Forces.

"I did quite a bit of work for the Canadian Forces," said Mr. Hensler. "I started in the early 1980s."

Through the 1990s, Mr. Hensler's company was known as Hensmand Ltd. It declared bankruptcy at the end of the decade, a victim of the tech crash.

"The story is that we underwent some financial difficulties," said Mr. Hensler. "Our last project was to the Navy under another company. That was last year. Since then we haven't had any projects because the Navy apparently did not have any money for it."

General Propulsion was a smaller division of Hensmand Ltd. According to a registry of Canadian intellectual property, Mr. Hensler has not patented any of his technology.

"We have a patent pending in the United States," said Mr. Hensler. "We didn't patent anything because once you go through the process, your technology becomes public knowledge. We don't yet have the financial backing to hire lawyers to protect our intellectual property."

Though there are plans to apply for a grant to help the company start up through Gov. Andrew M. Cuomo's Regional Economic Development Commission, Mr. Hensler's move is not contingent on the grants.

"These projects stand alone without the grants, but the opportunity presents itself," said Mr. Sciorra. "We are also told that getting into the process might have funding benefits later."

Mr. Hensler said his business does not operate using grant or loan money.

"That has never been our plan," said Mr. Hensler. "Our policy states that we don't want to create corporate debt. We don't go for matching grant arrangements or bank loans because that means we have to borrow money. The funds for this will come from contracts and investments."

Growing a company that employs a staff of five to a large manufacturing operation with 200 employees is no small task.

"All there is right now is that he is interested in the possibility of manufacturing," said Mr. Sciorra. "We're not there yet. We'll see what happens."

Still, Ogdensburg's leaders are excited about the possibilities.

"This has a lot of promise and the opportunity is great," said Councilor Nicholas J. Vaugh. "The potential to create at least 200 jobs is certainly positive. In general, we have to go after each opportunity. Some will pan out and some won't."

The potential to create a technology hub in Ogdensburg could turn the city's stalled economy around, said Councilor Daniel E. Skamperle.

"If the guy can market and build the products he's planning to have, this is going to turn the city upside-down," said Mr. Skamperle. "The potential is out there, and I hope it comes to fruition."