wyoming business council’s industrial site evaluation and certification program october 9, 2013...
TRANSCRIPT
![Page 1: Wyoming Business Council’s Industrial Site Evaluation and Certification Program October 9, 2013 Mark Sweeney, Senior Principal Lindsey Myers, Senior Consultant](https://reader035.vdocuments.us/reader035/viewer/2022062421/56649d9d5503460f94a872fe/html5/thumbnails/1.jpg)
Wyoming Business Council’s Industrial Site Evaluation and Certification Program
October 9, 2013
Mark Sweeney, Senior PrincipalLindsey Myers, Senior ConsultantAmanda Taylor, Consultant
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The Main Thing To Remember
Attracting investment and jobs is more competitive than ever…
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The Main Thing to Remember
… And being prepared createscompetitive advantage.
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Introduction to McCallum Sweeney Consulting
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MSC Clients
KasleSteel
Boy Scouts of AmericaSGL Automotive CarbonFibers LLC joint venture
American Titanium Works
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What Can a Community Do to be More Attractive?
(Be prepared!)
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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
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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
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Sites and Infrastructure
• Severcorr SteelColumbus, MS
• Rural community• Demanding site specs• Community proactively
prepared– Site certification
• $800 million• 450 jobs
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OrganizationFunding
• Funding– Secure– Reliable– Adequate – Long term– Broad participation / broadly supported– Flexible and discretionary
• Avoid too much “earmarking”
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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
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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
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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
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Overview of the Site Selection Process
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Competitive Site Selection Screening Process
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Define Search Region - Center-of-Market Analysis
Negotiations / Financial Modeling
Regional Screening based on Project Criteria
Risk Analysis
Property Visits / Comparative Assessment
Location Selection
RFP & Proposal Screening
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Site Selection Process
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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
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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.
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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
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Role of Incentives
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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
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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
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Final Thought on Incentives
• Incentives Do Influence the Final Decision
– Impact the capital investment decision model
– Timing is critical
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Site Certification
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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
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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.
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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
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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
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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
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• 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
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Benefits of Site Certification
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Site Selection Process and Certification
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Define Search Region - Center-of-Market Analysis
Negotiations / Financial Modeling
Regional Screening based on Project Criteria
Risk Analysis
Property Visits / Comparative Assessment
Location Selection
RFP & Proposal Screening
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When Certification Paid Off
• Severcorr SteelColumbus, MS
• Rural community• Demanding site specs• Community proactively
prepared– Site certification
• $800 million• 450 jobs
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Overview of Wyoming Business Council’s Industrial Site Evaluation and Certification
Program
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• To develop a portfolio of certified sites that will make Wyoming more competitive in site selection projects
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Program Objective
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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
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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
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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.
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Certification Category Criteria
TotalContiguous
Acreage
Minimum Developable Acreage (%)
RailRequired
Highway Access
Water(gpd)
Wastewater(gpd)
Natural Gas(mcf/month)
Small Site <25 100% NoState
standards for truck access
50,000 40,000 Not required
Medium Site 25-24920-2001
(80%)No
State standards for truck access
150,000 100,000 10,000
Large Site 250-499200-4001
(80%)No
State standards for truck access
300,000 200,000 15,000
Super Site 500+400+1
(80%)Yes 10 miles4 500,000 400,000 25,000
Note1. Developable acreage must be at least 80% of total acreage. (For example, a 250-acre site must have at least 200 contiguous, developable acres).2. Business park must have at least one 5-acre, contiguous, developable parcel.3. Industrial park must have at least one 20-acre, contiguous, developable parcel.4. Interstate or 4-lane highway
TotalAcreage
Minimum Developable
Acreage
RailRequired
Highway Access
Water(gpd)
Wastewater(gpd)
Natural Gas(mcf/month)
Business Park 50+ 52 No
State standards for truck access
75,000 50,000 Not required
Industrial Park 100+ 203 No
State standards for truck access
300,000 200,000 15,000
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1. Complete and Submit a Application of Intent
2. Receive Phase II Site Evaluation Materials
3. Complete and Submit a Phase II Evaluation Application
4. Receive Initial Feedback via Site Visit Letter
5. Conduct Site Visit
6. Receive Notification of Selection Status / Invitation to Proceed
7. Complete and Submit a Phase III Certification Application
8. Receive Feedback via Follow-up Letter
9. Provide Follow-up Information
10. Receive Notification of Certification Decision
11. Announcement Event or Press Release
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Process Overview
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1. Review Program Overview and Application of Intent
2. 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
3. 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
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Process Details
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4. 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
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Process Details
Category Total Acreage Phase II Fee
Small Site <25 $5,500
Medium Site 25-249 $6,500
Large Site 250-499 $7,500
Super Site 500+ $10,000
Business Park 50+ $6,500
Industrial Park
100-249 $6,500
250-499 $7,500
500+ $10,000
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5. 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
6. 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.
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Process Details
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7. 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
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Process Details
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Process Details
8. 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
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Category Total Acreage Phase III Fee
Small Site <25 $10,500
Medium Site 25-249 $11,500
Large Site 250-499 $12,500
Super Site 500+ $15,000
Business Park 50+ $11,500
Industrial Park
100-249 $11,500
250-499 $12,500
500+ $15,000
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Process Details
9. 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)
10. Provide Follow-up Information– MSC will work with communities to ensure documentation is
received– All follow-up information must be submitted within three months
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Process Details
11. 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
12. Announcement Event or Press Release
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• 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 Simonsen at (307) 777-2813
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Business Ready Community (BRC) Planning Grants
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The Main Thing to Remember
Attracting investment and jobs is more competitive than ever, and being prepared
creates competitive advantage.
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Questions?
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MSC Contact Information
Mark Sweeney Lindsey Myers
Senior Principal Senior [email protected] [email protected]
Amanda Taylor
McCallum Sweeney Consulting
550 South Main Street, Suite 550
Greenville, SC 29601
(864) 672-1600
www.mccallumsweeney.com
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