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Minkles Broadpointe LLC
Broadpointe Industrial Park Executive Summary
March 2017
Aerial photograph of Broadpointe Industrial Park and the Asheville Regional Airport (AVL) from June 2015.
The aerial shows the French Broad River, NC Hwy 280 connection with Interstate 26, Pisgah National Forest to the
west,and surrounding industrial companies UPM Raflatac, Continental, Electrolux, Raumedic AG, Empire
Distribution and Sierra Nevada Brewing Company.
For Additional Information Contact
Andrew Tate Brittany Brady
Henderson County Partnership for Economic Development
330 N.King Street Hendersonville, NC 28792
828.692.6373
INTRODUCTION
Broadpointe Industrial Park is a 125 acre industrial park that was initially
developed in the mid 1990’s by the Cadgene family. Since that time,
Northern Henderson County has become the North Carolina home to over
ten companies, including Sierra Nevada Brewing Company, Continental
Automotive, UPM Raflatac, Empire Distributors and Raumedic AG.
Minkles Broadpointe is one of the last undeveloped parcels in Broadpointe
Industrial Pak. The site has access to public and private infrastructure, major
east-coast transportation arteries and is adjacent to the Asheville Regional
Airport (AVL). The Minkles Broadpointe site is visually striking, positioned
close to the French Broad River with views to Pisgah National Forest. This
executive summary is designed to serve as a concise summation of the
property - focused on mitigating risk and providing defined information
relating to development. Supporting documentation is available upon
request.
BACKGROUND
The Minkles Broadpointe site was identified as one of the best available
industrial sites in Buncombe and Henderson Counties and the process to
acquire the property was finalized in late June 2015. The reasoning for
focusing on Broadpointe Industrial Park was best summed up by Martin
Bayer, Raumedic CEO, who selected the park in the Spring of 2015 as the
site of their new US headquarters and production facility. "We really fell in
love with the area," Mr. Bayer stated. "For us, Henderson County provides
an experienced and skilled workforce and the ideal business environment for
our investment."
During the due diligence process, ownership identified and addressed items
that would improve the marketability of the site and compress the timeline
for future industrial development. This process included obtaining a current
deed and survey, legal title searches and identification of easements and
right-of-ways. Other third-party verifications included the completion of a
Phase I and Phase II environmental site assessments,
geotechnical/subsurface reports, the development of a site plan and the
establishment of preliminary site development costs. Most of this work was
coordinated through WGLA Engineering PLLC, the pre-eminent civil
engineering firm in the area. With the assistance of WGLA, ownership
conducted a thorough review of these due diligence items, including
confirmation that the site had access to water, wastewater, electricity, natural
gas and telecommunication service.
SITE INFORMATION
Site Size: 15.0 acres (35.15 acres total)
Address: 69 Wonder Way, Town of Mills River, NC
County: Henderson
Utilities: All required utilities are either on-site or in the right of
way along Broadpointe Drive.
PROPOSED BUILDING
Manufacturing or Distribution Building
Proposed building up to 175,000 sf
30' clear height
ESFR sprinklers
1 dock door per 10,000 sf of space
5-8% office
Parking for 150 people. Can be expanded.
Trailer storage.
Rental Rate
$4.75/sf triple net, to be adjusted based on credit, term and cost. If the
tenant has exceptional credit, requires all or a substantial portion of the
building and wants a long term lease, the rate could be
lower. Additional and/or over-standard finish requirements would be
amortized over the term of the lease.
Construction Time
The site has a preliminary grading plan, preliminary stormwater
management plan and grading permits in place. Grading could
commence immediately upon acquisition. Building time would be 4 - 5
months, depending on finish requirements and availability of materials.
Site Plan Options
One potential site option for a 150,000 sf industrial building.
Second potential site option for two industrial buildings.
MINKLES BROADPOINTE - RISK MITIGATION
Documentation of Title, Boundary, Deed, Rights -of- Way, Easements, etc.
A thorough legal review and 85 year title search of the property uncovered no
recorded deeds of trust or encumbrances and states that the site is vested
with good, marketable, fee simple title with the exception infrastructure
rights of-way (power lines, gas line). A survey from June 2015 is available.
Phase I Environmental Site Assessment
ECS Carolinas LLP, a licensed engineering and environmental services firm,
completed a Phase I Environmental Site Assessment and a Phase II
Environmental Site Assessment on March 23, 2015 that suggested the need
to remove a limited amount of soil resulting from a leaking above ground
diesel storage tank that had been used in the original farming operation
conducted on the site. A final Soil Remediation Report was submitted on
June 1, 2015 that stated that the site was clean and with no further evidence
of recognized environmental conditions.
Geotechnical Review & Assessment
ECS Carolinas LLP also performed subsurface and geotechnical work
associated with the property. The assessment was completed on April 16,
2015 and included a visual reconnaissance of the property and the
performance of seven widely-spaced soil borings at depths ranging from 10
to 13 feet. Soil boring locations were established in the field by personnel
from WGLA Engineering. The final review of March 2015 work resulted in a
favorable assessment, indicating that the soils at the site appear suitable for
support of the proposed industrial building and pavements using conventional
construction techniques. The on-site soils should be able to be excavated
using conventional earthmoving equipment and are generally suitable for re-
use as fill. Additionally, the proposed building can be supported on
conventional shallow foundations bearing in properly evaluated and approved
alluvium and/or new engineered fill.
Stormwater Management
Designing a traditional stormwater basin or a bioretention cell based on recent
development in the industrial park would add approximately $32,000 per acre
to the cost of development. Given the location of the site along the French
Broad River, utilizing the adjacent 20 acres of land for stormwater
management with designed grading could lower the cost of stormwater
management to less than $8,500 per acre, which would equate to a savings of
approximately $350,000.
Grading Permits
Ownership has obtained a letter of approval from NCDENR dated July 15,
2015 that expires three years from the date of issue which would enable the
immediate initiation of site grading. Those permits are transferrable and
renewable if required.
INFRASTRUCTURE
Electrical Service
The Minkles Broadpointe site is situated within the Duke Energy electrical
territory. There are 12.5kV and 115 kV three phase power lines that
serve the site using overhead transmission lines. Duke Energy is the
largest electric utility in the United States, with 7.1 million customers.
Electricity is delivered using a combination of hydro-electric, nuclear, coal
and renewable energy sources.
Natural Gas Service
PSNC Energy has a 4" plastic distribution line located along Broadpointe
Drive which has a design operating pressure of 60 psi.
Water Service
Water service is provided by the City of Asheville. Water is committed
and permitted from the City of Asheville. The park is served by a 12"
waterline that extends into the park and originates at the City's 24"
waterline at NC-280. Normal operating pressure on this 12" waterline is
130 PSI and the current reserve capacity available to serve the park
exceeds 1 MGD.
•
Wastewater Service
Wastewater is committed from the Cane Creek Sewer District. An 8"
designated, gravity line has been extended to the site and is situated in
close proximity to the French Broad River. Wastewater is treated by the
Metropolitan Sewerage District located in Woodfin, North Carolina,
approximately 15 miles from the property. The current capacity for the
regional system is 40 MGD; peak utilization of the facility is approximately
23 MGD; resulting in excess capacity of 17 MGD.
Telecommunications
AT&T fiber optic cable is located along Broadpointe Blvd. They offer a
full range of U-verse commercial services including internet transport
speeds up to 75 Mbps. If needed, AT&T can pair bonding of their fiber
optic lines which will double the speeds available up to 1.5 Gbps.
TRANSPORTATION & ACCESS
Interstate Access
Interstate 26 serves as the primary transportation route to service the
region. The I-26 exit is located 2.4 miles from the Broadpointe Industrial
Park entrance, via 4-lane, divided NC Hwy 280. Other nearby interstates
include I-40 (10 miles), I-85 (50 miles), I-81 (85 miles), I-77 (111 miles), I-75
(123 miles) and I-20 (140 miles).
In May 2014, the North Carolina Department of Transportation began work on
an $8.8 million project to change the traffic pattern at Exit 40 where NC
Highway 280 crosses I-26 to what is called a diverging diamond interchange.
When completed, the unusual road layout will allow motorists to make most
left turns in the area without having to cross in front of traffic coming in the
opposite direction. This improvement will greatly enhance traffic flow moving
south along NC Highway 280. The entire project, including a re-vamped
entrance to the Asheville Airport, is scheduled for completion in late 2016.
Broadpointe Drive - Access Road
Access to Broadpointe Industrial Park is provided utilizing NC Highway 280
(Boylston Highway), a state-controlled and maintained four-lane, divided
highway, which connects to Broadpointe Drive. The NCDOT has committed
to consider the installation of a signalized intersection designed to enhance
access and safety. Access to the site is also available by exiting Highway
280 at Ferncliff Drive and turning west on Old Fanning Bridge Road.
The completion of the final segment of Broadpointe Drive has been initiated
by the NC Department of Transportation and a request for funding was made
on March 26, 2015. The improvements will consist of:
Widening the existing Broadpointe Drive from a gravel road to provide a
24 paved roadway;
Replacement of Bridge No. 107 with a Reinforced Concrete Box
Culvert on an adjusted grade to provide an improved vertical alignment
to make the grade more truck accessible.
The project is being coordinated directly by the NC DOT and work is
projected to commence in early 2016.
Air Service
Broadpointe Industrial Park is in close proximity to the Asheville Regional
Airport (AVL). The airport serves about 2,000 passengers a day, inbound
and outbound, with 22-25 daily flights on Delta, US Airways, United and
Allegiant, which offer direct flights from Asheville to eight cities: Atlanta,
Charlotte, Chicago, Detroit, Newark, New York, Orlando and Philadelphia.
Greenville Spartanburg (GSP) is a 45-minute drive away, and Charlotte
Douglas International (CLT) is 1.5 hours away.
On August 8, 2014 Asheville Regional Airport (AVL) broke ground on the
biggest construction project since the airport was originally built, titled Project
SOAR: Significant Opportunity for Aviation and the Region. The 5-year, 4-
phase project, slated for completion in 2018, will result in a new replacement
runway, a second taxiway and 40-plus acres of land suitable for aeronautical
development. The planned improvements will enable the airport to add
flights, attract additional cargo flights and enhance the region’s accessibility
for business relocation.
Deep Water Ports
The park is located within 311miles of three deep-water ports which
include the Port of Charleston, SC (246 miles), Port of Savannah, GA (276
miles) and Port of Wilmington, NC (311miles).
Greer Inland Port
Is a new intermodal facility that is owned and operated by the SC Ports
Authority with rail service provided by Norfolk Southern. Located 212 miles
from the Charleston port and 65 miles from the Minkles Broadpointe site, rail
service is provided five days a week and the facility can provide 40,000 lifts
per year with the ability to double the capacity.
Rail Service
Broadpointe Industrial does not have plans for direct rail service and
access, however rail could be provided utilizing an off-site rail transload
location in partnership with Norfolk Southern Corporation/Watco.
Automobile Manufacturing Plants
During the past twenty years, four European car manufacturing operations
have been or will be established in the Southeast US. Minkles
Broadpointe provides a central location for OEM companies interested in
providing goods to any or all of the manufacturers. The site is located 61
miles from Greer, SC (BMW), 221 miles from Chattanooga, TN
(Volkswagen Group), 223 miles from Ridgeville, SC (Volvo) and 346 miles
from Birmingham, AL (Mercedes Benz).
LAND USE
Mills River Zoning
Ownership obtained a zoning letter from the Town of Mills River dated March
23, 2015 that states the property is zoned MR-Light Industrial and is
compatible with a wide range of manufacturing and distribution uses.
Additionally, the letter states that any future code changes would not remove
any uses currently permitted and operating at the site.
Design Guidelines
While Broadpointe Industrial Park is an industrial development that
promotes quality, stewardship, job creation and encourages the most
current development and operational Best Management Practices
(BMP's), there are no set design guidelines that limit development nor
covenants that restrict operation.
APPLICABLE TAXES
Entity Tax Rate
Henderson County $0.5136 per $100 of assessed valuation
Town of Mills River $0.1124 per $100 of assessed valuation
Town of Mills River Fire District $0.900 per $100 of assessed valuation
North Carolina Personal Income Tax 5.75% (reduced in 2015)
North Carolina Corporate Income Tax 5.0% (reduced in 2015)
Inventory Tax No inventory tax
Sales Tax on Utilities No sales tax on utilities
DEMOGRAPHICS
Facts Henderson
County
Buncombe
County
Population, 2016 estimate 114,209 250,539
Population, % change from 4/1/2010 to
7/1/2014 4.1% 5.1%
Population, between ages of 18 and 65 49% 57.5%
High School Graduate or higher 87.5% 89%
Bachelor’s Degree of higher 27.7% 33.8%
Housing Units (2015) 55,614 114,556
Homeownership Rate (2009 – 2013) 74.3% 64.5%
Median Household Income (2009-2013) $44,815 $44,713
Source U.S. Census Bureau: State and County Quick Facts
Revised: Friday, 29-May-2015
BROADPOINTE INDUSTRIAL PARK AND IMMEDIATE AREA
Area Companies
Sierra Nevada Brewing Company specializes in the development and
production of craft beer. The North Carolina facility represents the
company's east coast facility. The operations encompasses
approximately 300,000 square feet of office, production, warehouse and
visitor facilities. Estimated cost of development exceeded $175 million.
Continental Automotive Systems Group - Continental is an international
automotive supplier, tire manufacturer, and industrial partner. The Mills River
facility operates in the Chassis & Safety division. In 2013, the company
expanded operations by 125,000 square feet and is now 335,836 square feet
in size.
UPM Raflatac - a Finnish company that makes pressure sensitive labels. The
facility is currently 237,135 sf in size.
Federal Express Ground Distribution – a 90,000 square foot facility.
Empire Distributors - beer and wine distribution, construction completed in
2014, developed a 171,833 sf distribution facility.
American Coating / Prince Manufacturing – the facility is 107,550 square
feet in size.
Smart Products, Inc. (announced in July 2016) – announced a new
manufacturing operation in Broadpointe Industrial Park.
Raumedic AG – opened 2016 - a German manufacturing company that
makes polymer components for the medical industry is building a 75,000 sf
initial phase and plans for a 75,000 sf expansion.
GF Linamar – under construction 2017 – a joint venture between Georg
Fischer AG and Linamar Corporation is building a state-of-the-art aluminum
die casting operation in Ferncliff Park to provide components to the
automotive industry.
Henderson and Buncombe County Relocations and Expansions- 2012 to 2015
New Belgium Brewery (2013) - established a craft brewery and distribution
location with an estimated cost of $100 million for site and building.
GE Aviation – estimated at $100 million, built 150,000 sf manufacturing
building.
Legacy Paddle Sports (2012) – built new manufacturing / distribution building
in Henderson County.
KYOCERA Precision Tools (2013) – relocated headquarters to Henderson
County.
Borg Warner Turbo / Borg Warner Thermal (2014) – expanded both
operations.
Elkamet (2014) – German manufacturing company expansion.
Multi Packaging Solutions (2012) - expansion and consolidation in
Henderson County.
Norafin Industries (2016) – first North American manufacturing facility
announced.
Gaia Herbs – announced June 2016 - natural foods manufacturer and
distributor of natural foods.
Demmell AG – a German based manufacturer opened their first North
American manufacturing facility in Henderson County in 2016