encore fayette - anatomy of a deal

Bringing Sany America to Fayette County

Importing Chinese Industry to GeorgiaA Behind the Scenes Perspective of How Sany America Came to Fayette County, GeorgiaFebruary 14, 2013

Matt ForsheePresident/CEO

OverviewPrimer on Economic Development in Georgia

Sany: The Company, Products and Equipment

Project Development, Recruitment & Location

Facility Site & Building Plans

Lessons Learned

Questions

What is Economic Development?

Creation of Wealth

How do we do that in Fayette County?

Recruiting New Industry & Office

Helping Existing Business and Industry Expand

FCDA Organization Breakdown

MarketingFayettega.orgNewsletter

MarketingAdvertisementsProspect Travel

Project ManagementSite SelectionBuilding Selection

ResearchDemographicsExisting Industry Data

Economic Development in Georgia

Site Selection: Project Origins

Project originated as a direct call-in to the Metro Atlanta Chamber in September of 2005.

Site Selection: Project OriginsSany began a comprehensive nationwide site search , which considered several Metro Areas.

SANY: The CompanyHeadquartered in Changsha, Hunan Province, ChinaHong Kong JacksonvilleShanghai Wash. DCBeijing Green BayPop 6 m + (19th largest in China)

Distance to Hong Kong = Distance from Atlanta to Orlando.Distance to Shanghai = Distance to Washington, D.C.Distance to Beijing = Distance to Green Bay, WI16

Sany: The Company Sany has manufacturing operations in Changsha, Beijing, Shanghai, & Shenzen. They have announced additional facilities in India, Germany and the US.

Sany: The Products

Sany: The Products

Sany: The Products

Sany: The Products

Sany: The Products

Sany: The Products

Sany: The Products

Sany: The Products

Sany: The ProjectsSany currently holds the Guinness world record for the highest elevation reached by a single pump 406 meters (1332 feet). This was performed during the construction of the Hong Kong International Financial Center.

Sany: The projects

Sany equipment has been involved in the construction of the Three Gorges Dam on the Yangtze River, the largest hydro-electric power station in the world.

Site Selection: Project OriginsThe initial requirement from the company called for 350,000 square feet of existing space under roof for assembly of concrete pumps and pump trucks.

Site Selection: Timeline SummarySEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUG

20052006Representatives from Sany make initial contact with the Metro Atlanta Chamber of Commerce


20052006Initial Georgia Team is built


20052006Initial Sites Submitted for an assembly facility: McDonough (I-75) & Palmetto (I-85)


20052006Additional Sites Submitted: Waynesboro (I-20),Griffin (I-75) & McDonough(I-75)


20052006DEcD and GPC meet with Sany at World of Concrete Trade Show in Las Vegas, Nevada.


20052006Additional Sites Submitted: Stockbridge (I-75), Newnan (1-85) and Morrow (I-75).


20052006Sany changes the parameters dramatically. The project is reduced to a small warehouse for parts, 1-2 acres & 30,000 sf, to be operated as Synnium.


20052006Georgia Team begins looking for new sites that meet parameters for small distribution location.


20052006Project returns to original parameters for Assembly & adds HQ function. Peachtree City site is proposed on paper to Sany.


20052006Local team is added.

Sany: The Site

We proposed the Cooper Loopproperties: 228acres in the PTC industrial park. Hasaccess to all utilities, on a state divided highway and in foreign trade zone.


20052006Sany officials first visit Peachtree City. First incentive proposal is sent to Sanys Board of Directors.


20062007DEcD and GPC make 2nd trip to WOC in Las Vegas to call on Sanys project team.


20062007A revised proposal of incentives from DEcD and Fayette County is sent to Sanys Board of Directors.

Site Selection: Incentives

State ProposalJob Tax Credits$ 3,618,750GA Quick Start$ 2,316,000Sales & Use Tax Exemption$ 600,000REBA Grant$ 900,000Local ProposalTax Abatement (Real & Personal)$ 4,693,696FCDA Grant$ 150,000Fayette County Grant$ 150,000PTC Grant$ 50,000Total$12,478,446

Site Selection: Incentives

Average Incentive Per JobState$12,391.25Local$ 8,406.16Total$20,797.41

Fayette County Cost/Benefit AnalysisAfter all incentives local taxes, fees and services are accounted for, Fayette County still shows a positive growth of $29,000 in Year 1 of the facility. By Year 10 we have accumulated an average annual net benefit of $603,744. After YR 10, average annual benefits are $1,157,739.


20062007DEcD and GPC team makes 1st trip to China to call on Sany. Visits headquarters in Changsha.

Site Selection: China Visit #1Company reps had indicated several times that Georgia was at a disadvantage by not having visited the board members in China

Site Selection: The Grand Tour


20062007FCDA and Pathway Communities accompany DEcD and GPC on 2nd trip to Changsha and Sanys HQ.

Sany: Fayette goes to Changsha

Sany: Fayette goes to Changsha


20062007Sany Board of Directors votes 8-1 to select Georgia over competing other states and cities.

Site Selection: Announcement

Sept 2007: Sany publicly announces intent to locate NA HQ and Assembly in Peachtree City. From Sept 05 to Sept 07, process was a 2-year effort!

Site Selection: AnnouncementInitial investment announced was $30MM USD, now revised to roughly $70MM USD. It will employ up to 600 people over 10 years.

After Site Selection: Legal DocsCrafting a Memorandum of UnderstandingSignatories (and Attorneys) included Sany, FCDA, Fayette County & Peachtree CityTax Abatement BondsInitially issued $30MM in bonds for Tax Abatement structuringGrant ApplicationREBA grant required a large application process that took longer than expected

Site Data228 AcresAssembly Bldg 1 (ph 1)325,000 sfAssembly Bldg 2 (ph 2)500,000 sfAssembly Bldg 3 (ph 3)500,000 sfDistribution Center (ph 1)100,000 sfOffice, R&D Bldg (ph 1)140,000 sfTotal 1.5 million sfSany: Proposed Site Plan

Sany: Proposed Site Plan




Sany: Lessons Learned

Time was always on Sanys side (and they used it!)To balance this, we had to formulate unique qualifiers and expirations for land and incentives.

Sany: Lessons Learned

Sanys site selection process was very unique and quite different from most US or European companies. The process could be quite frustrating at times.

Sany: Lessons LearnedThe Chinese concept of Guanxi has no true comparison in Western Culture. You must understand the implications to succeed in Chinese business, industry & society.

Sany: Lessons LearnedThere are some major visa issues for permitting Chinese Nationals to work in the US, but the companies are also aware of the tax benefits to rotating employees.

Sany: Lessons LearnedTo do business in China, you have to experience China.

To learn more about the business opportunities in Fayette County, contact the Fayette County Development Authority. We can help you with: Available site and building information Comprehensive demographic information Labor statistics Community tours Customized state incentive proposals Groundbreaking ceremony coordination

Matt Forshee, President/[email protected]

PH: 770-461-5253 FX: 770-460-0259www.fayettega.org

200 Courthouse SquareFayetteville, GA 30214

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