Presentation Transcript

1. Wyoming Business Council’s Industrial Site Evaluation and Certification Program October 9, 2013 Mark Sweeney, Senior Principal Lindsey Myers, Senior Consultant Amanda Taylor, Consultant
2. Attracting investment and jobs is more competitive than ever… The Main Thing To Remember 2
3. … And being prepared createscompetitive advantage. The Main Thing to Remember 3
4. Introduction to McCallum Sweeney Consulting 4
5. MSC Clients Kasle Steel Boy Scouts of America SGL Automotive Carbon Fibers LLC joint venture American Titanium Works 5
6. MSC Clients – Economic Development 7
7. 8
8. What Can a Community Do to be More Attractive?(Be prepared!) 9
9. Business of Economic DevelopmentOverview Product Development Leadership Sites Infrastructure Human Resources Education Training Taxes Quality Of Life Community Assets Organization Vision & Strategic Plan Organization Design Staffing / HR Programs Funding Sales & Marketing Market Segmentation Product Knowledge Customer Knowledge Communication 10
10. Product Development:Sites and Infrastructure Basic Need for Growing Companies “Dirt Won’t Do” “Property” does NOT equal “Site” Location Decision Demands Speed Site selection and facility start-up Be Prepared – maintain a portfolio of ready, available sites 11
11. Sites and Infrastructure Severcorr SteelColumbus, MS Rural community Demanding site specs Community proactively prepared Site certification $800 million 450 jobs 12
12. OrganizationFunding Funding Secure Reliable Adequate Long term Broad participation / broadly supported Flexible and discretionary Avoid too much “earmarking” 13
13. Sales and MarketingCustomer Knowledge: Fundamental Characteristics Profit Driven Investment for purpose of return Deadline Driven Both the site selection and the project Competitive Multiple location options Comprehensive Complex decision involving most functional areas Risk Averse 14
14. Sales and MarketingMarket Segmentation Investment and Jobs from Outside Recruitment Additional Jobs and Investment from Inside Expansion / retention New Investment and Jobs from Inside Entrepreneurial development Be Prepared – Position for All Segments 15
15. Sales and MarketingCommunication Public Relations and Advertising Electronic and print media Events Trade shows, industry conferences Face to Face Get prospects to your place You go to prospect’s place Electronic Communication Effective web site Social media strategy 16
16. Overview of the Site Selection Process 17
17. Competitive Site Selection Screening Process Define Search Region - Center-of-Market Analysis Regional Screening based on Project Criteria RFP & Proposal Screening Property Visits / Comparative Assessment Negotiations / Financial Modeling Risk Analysis Location Selection 18
18. Site Selection Process Planning Phase Phase 1 Phase 2 Phase 3 Phase 4 Conception Feasibility Investment Decision Alignment/ Criteria Regional Analysis Areas of Interest Request for Proposal and/or Web Research Candidate Locations Community Visits Location Evaluation Comparative Analysis Finalist Locations Negotiations Evaluation Site Due Diligence Internal Selection of Preferred Location Prepare MOU Real Estate Transaction Public Announcement Incentive Capture Support 19
19. Phase II – Field Competition Physical Conditions Sites, infrastructure Operating Conditions Labor, education/training, utilities, taxes Living Conditions (QOL) Housing, medical, education, leadership Appearance, congestion, culture & rec. 20
20. Phase II – Community Visits Industry and Community Leaders Existing industry and businesses Private interviews Most important source of information Community leaders Elected and private leaders Represent community and government Subject to “managed access” to prospect 21
21. Role of Incentives 22
22. ` Role of Incentives in Economic Development Part of overall economic development strategy Designed to support your development goals by: Meeting the needs (and influencing the location decision) of companies Enhancing the strengths of your location Mitigating the weaknesses of your location 23
23. ` Role of Incentives in Site Selection Incentives are Important If and When They impact the prospect’s decision Differentiate one location from another Increase in importance as the decision process proceeds 24
24. ` Final Thought on Incentives Incentives Do Influence the Final Decision Impact the capital investment decision model Timing is critical 25
25. Site Certification 26
26. Why Certify Sites? Companies are Very Deadline Driven Once market opportunity identified, company does not want to take much time In selecting location In getting up and running Looking for sites ready for quick development Has influenced the process of site selection Communities with ready or certified sites have competitive advantage 27
27. What is Site Certification? Site Certification is a designation that a site meets certain readiness criteria Criteria are based on location needs of private sector companies There is no national standard for site certifications Site Certification is a trend that is growing rapidly Driven by speed-to-market pressures on companies Site Certification is an initiative being undertaken by various groups with a stake in economic development State and regional organizations Utility providers Individual developers Etc. 28
28. What is Site Certification? MSC believes that that there are three key attributes that are the basis of site readiness required by a site certification program: AVAILABLE Site really is for sale or lease, with established terms and conditions FULLY-SERVED If all infrastructure is not already at the site, then at least detailed plans with schedules and price tags have been developed DEVELOPABLE Environmental and other related assessments (and mitigation, if necessary) are complete 29
29. What is Site Certification? A well-designed site certification program is: Realistic:Based on the due diligence necessary for projects Rigorous:Development projects are exhaustive, a site certification process will be as well Educational: An opportunity to better understand the siting process and to gain knowledge of a site’s strengths and weaknesses 30
30. The Importance of Site Certification Attracting investment and jobs is highly competitive, and being prepared creates a competitive advantage Company timeframes are getting shorter Site selection Start-up Communities need to be prepared with sites that are ready for development At the end of the day, companies do not build facilities in communities, they build them on sites 31
31. Benefits of Site Certification Allows for effective pro-active marketing Prepares you for better re-active marketing Educates you on the site’s strengths and weaknesses Prepares you to offer development assistance as may be needed Speeds up development schedule by having due diligence completed 32
32. Site Selection Process and Certification Define Search Region - Center-of-Market Analysis Regional Screening based on Project Criteria RFP & Proposal Screening Property Visits / Comparative Assessment Negotiations / Financial Modeling Risk Analysis Location Selection 33
33. When Certification Paid Off Severcorr SteelColumbus, MS Rural community Demanding site specs Community proactively prepared Site certification $800 million 450 jobs 34
34. Overview of Wyoming Business Council’s Industrial Site Evaluation and Certification Program 35
35. Program Objective To develop a portfolio of certified sites that will make Wyoming more competitive in site selection projects 36
36. Phases (Round 2) Program Kick-off (Phase I): November 2013 – March 2014 Evaluation (Phase II): April - September 2014 No outside engineering assistance required Evaluation phase is conducted prior to embarking on full site certification to allow for discontinuation if a fatal flaw is identified Site Evaluation does not equal Site Certification Certification (Phase III): September 2014 – September 2015 Engineers will be needed to complete any utility extension plans, environmental due diligence, etc. All required due diligence studies must be completed Participants have one year to complete Phase III 37
37. Certification Categories Wyoming Business Council’s Industrial Site Evaluation and Certification Program is designed with six categories Small Site Medium Site Large Site Super Site Business Park Industrial Park Infrastructure requirements (utility, highway, etc.) are scaled for each categories 38
38. Site versus Park Site An industrial site is defined as a property that is appropriate for a single industrial user, meaning there are no impediments to development or mitigation for any known impediments can be accomplished in less than 90 days. Park A park is defined as property that is appropriate for multiple industrial users, meaning that the total acreage is subdividable into multiple parcels. While there may be impediments to developability within the park (streams, roads, utility easements, etc), the park will have multiple developable, contiguous acreages identified and will have the assets necessary to support industrial facilities. 39
39. Certification Category Criteria Note Developable acreage must be at least 80% of total acreage. (For example, a 250-acre site must have at least 200 contiguous, developable acres). Business park must have at least one 5-acre, contiguous, developable parcel. Industrial park must have at least one 20-acre, contiguous, developable parcel. 4. Interstate or 4-lane highway
40. Process Overview Complete and Submit a Application of Intent Receive Phase II Site Evaluation Materials Complete and Submit a Phase II Evaluation Application Receive Initial Feedback via Site Visit Letter Conduct Site Visit Receive Notification of Selection Status / Invitation to Proceed Complete and Submit a Phase III Certification Application Receive Feedback via Follow-up Letter Provide Follow-up Information Receive Notification of Certification Decision Announcement Event or Press Release 41
41. Process Details Review Program Overviewand Application of Intent Complete and Submit Application of Intent MSC will be available to answer questions Application of Intent must be submitted by March 31, 2014 MSC is available to review Application of Intent prior to December 1, 2013 planning grant application deadline Receive Phase II Evaluation Materials The MSC team will distribute the Site and Community Questionnaire and Items Required for Certification by the end of April 2014 42
42. Process Details Complete and Submit a Phase II Evaluation Application MSC will provide participants with the Site and Community Questionnaire and Items Required for Certification Completed applications must be submitted by June 13, 2014 Proposals must be submitted to both MSC and WBC (electronic only to WBC) A check must accompany the submission to MSC 43
43. Process Details Receive Initial Feedback MSC will provide a letter indicating items that will need to be addressed during the site visit and may request additional information Letters will be issued in July Site Visit The visit will be conducted similar to visits made for site selection projects, and will include both MSC and WBC personnel Site visits are planned for August 2014. 44
44. Process Details Notification of Selection Status The MSC Team will contact applicants to provide notification of whether they have been selected to move forward with Phase III Notification is scheduled to occur September 2014 Sites that are not chosen to move forward with Phase III will receive: Letter from MSC indicating site’s status Report on site’s strengths and weaknesses Recommendations for further improvements on the site List of potential target industries 45
45. Process Details Complete and Submit a Phase III Certification Application MSC will provide participants with letter inviting them to proceed with Phase III Completed proposals must be submitted by September 2015 Proposals must be submitted to both MSC and WBC (electronic copy only to WBC) A check must accompany the submission to MSC 46
46. Process Details Receive Feedback MSC will provide a letter indicating items that need further clarification and/or additional documentation (site certification will be contingent upon completing information requests generated during review of the Phase III Application) Provide Follow-up Information MSC will work with communities to ensure documentation is received All follow-up information must be submitted within three months 47
47. Process Details Receive Notification of Certification Decision MSC will issue a letter indicating site status to each participant Notification will occur in the 4th Quarter 2015 Upon certification, applicants will receive: Letter from MSC indicating site’s certification including certification expiration date Report on site’s strengths and weaknesses List of potential target industries Announcement Event or Press Release 48
48. Business Ready Community (BRC) Planning Grants Site Evaluation and Certification are eligible activities under the Business Ready Community (BRC) Planning Grant Program BRC Planning Grants are available for Phase II (Site Evaluation) and Phase III (Site Certification) of the Site Evaluation and Certification Program Communities interested in applying for BRC Planning Grants must submit an application by the December 1, 2013 deadline For more information about the BRC grant program, contact Dave Simonsenat (307) 777-2813 49
49. Attracting investment and jobs is more competitive than ever, and being preparedcreates competitive advantage. The Main Thing to Remember 50
50. Questions? 51
51. MSC Contact Information Mark Sweeney Lindsey Myers Senior Principal Senior Consultant msweeney@mccallumsweeney.comlmyers@mccallumsweeney.com Amanda Taylor Consultant ataylor@mccallumsweeney.com McCallum Sweeney Consulting 550 South Main Street, Suite 550 Greenville, SC 29601 (864) 672-1600 www.mccallumsweeney.com 52