1. Economic Development Site Selection Seminar: Is your Community Ready? Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Site Selectors 101 Boot Camp – Part 1 September 7 th, 2011 Ed McCallum, Senior Principal

2. MSC Overview Specializes in site selection and incentive negotiation services Established in July 2000 by Ed McCallum and Mark Sweeney Brings more than 50 years of combined location consulting experience to our clients worldwide Provides clients with uncompromised service, conducting site selection and incentive negotiations with the highest standards of integrity

3. Introduction

4. Introduction Private Sector Clients Kasle Steel Boy Scouts of America SGL Automotive Carbon Fibers LLC joint venture American Titanium Works

5. Introduction Economic Development Clients Charleston Regional Development Alliance

6. Presentation Overview IS YOUR COMMUNITY READY? –The Competitive Environment –Managing Your Site Inventory –Responding to RFPs –Preparing for Site Visits

7. The Competitive Environment Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Ed McCallum, Senior Principal

8. The Competitive Environment Attracting investment and jobs is highly competitive, and being prepared creates a competitive advantage

9. The Competitive Environment Company decision-making timeframes are getting shorter Communities need to be prepared with sites that are ready for development

10. Site Selection Factors l Strategic Planning - Growth/Location l Center of Market Analyses l Regional Definition l Competition Analysis Marketing Human Resources Financial Logistics / Transportation Site Development Negotiations Manufacturing/ Production Other l Work Ethic/Labor Climate Assessments l Competitive Wage Surveys l Productivity Assessments l Qualitative Evaluations l Training Resources l Demographic Survey l Legal Environment l Pro-Forma Analysis l Breakeven Analysis l Recurring and Nonrecurring Cost Comparisons l Optimization Studies l Sensitivity Analysis l Project Financing l Alternatives l Risk Analysis l Topographic Surveys l Environmental Conditions l Boundary Surveys l Zoning Status/Modification l Access and Site Planning l Permitting l Infrastructure Suitability l Project Scheduling Sensitivity l Support Services Assessment l Expandability/Flexibility Determinations l Livability, Quality of Life Assessment l Factor Ratings (Kepner-Tregoe Decision Making) l Market Assessment l Engineering/Construction/Cost Comparisons l Real Estate Negotiations l Incentive Negotiations l Site Acquisition l Purchase Options l Product Distribution Evaluation l Raw Material Identification l Comparative Transportation Cost Analysis l Multi-Model Scenario Studies

11. The Competitive Environment

12. Competitive Site Selection Screening Process Candidate Locations Site Decision Define Search Region - Center-of-Market Analysis Decision-Making Analysis Regional Screening - Project Criteria (Musts & Wants) Proposal Screening Risk Analysis Comparative Assessment

13. The Competitive Environment Project Time Line The Old Way The New Way Response Time and Information Relevance Information from Candidate Project Time Line Response Time and Information Relevance

14. Information Management (The old Way) The Old Way The New Way

15. Desire vs. Reality Quality of Candidate Site Site Readiness

16. Process vs. Reality Planning Phase Phase IPhase II Phase III

17. Affecting the Decision Influencing Where your advantages are perceived as important Planning Phase Phase IPhase II Phase III Positioning Where your assets are recognized as relevant

18. Critical Factors in Site Selection

19. Critical Factors in Site Selection Recurring and Non-Recurring Costs $540,000 $5,150,000 $7,500,000 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Alternative 1Alternative 2Alternative 3 Non-Recurring Costs Series1

20. Critical Factors in Site Selection Combined NPV $70,123,839 $71,784,910 $71,241,385 $69,000,000 $69,500,000 $70,000,000 $70,500,000 $71,000,000 $71,500,000 $72,000,000 Alternative 1Alternative 2Alternative 3 10 Yr. NPV at 10.0% Series1

21. Fundamentals of Facility Siting Profit Driven –Part of an overall capital investment decision Deadline Driven –Market opportunities must be seized quickly Comprehensive –Impacts and is impacted by many aspects of a company Risk Averse –Favors location that are less risky

22. Fundamentals of Facility Siting Profit Driven Think of the siting process as part of the overall capital investment decision Models for evaluating capital investment –NPV –Payback Period –IRR Bottom line: Timing is Critical!

23. Fundamentals of Facility Siting Deadline Driven Increasing speed / shorter time frame is dominant theme in recent years –Market opportunities must be seized quickly –Once decision made to move forward, want minimum time spent on location decision and start-up –Strongly favors prepared locations with project-ready sites

24. Fundamentals of Facility Siting Competitive Most investment activity has choices with regard to location –Industrial: contiguous region or regions –Office: selected metropolitan areas –Not just competing with neighboring counties – competing with locations all over the world

25. Fundamentals of Facility Siting Risk Averse Siting decisions must account for risk –Identify risks –Assess probability –Estimate impact Favors locations that are project-ready because they are less risky

26. The Competitive Environment Speed –Siting decision and project development Confidentiality –Critical for a variety of reasons Professionalism –Integrity, reliability Determination and persistence

27. Managing Your Site Inventory Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Kimberly Williams, Consultant

28. Managing Your Site Inventory Responding to RFP Preparing for Site Visits Overview: Facility Sting Process

29. Why Establish a Site Inventory? Company decision-making timeframes are getting shorter Communities need to be prepared to respond quickly with sites that are ready for development

30. Why Establish a Site Inventory? Fundamentals –Deadline driven –Risk averse “Land” and “site” are not synonymous

31. Why Establish a Site Inventory? It is a logical step to creating “shovel- ready” sites –Available: it really is for sale, preferably with established terms and conditions –Fully-served: if all utilities are not already at the site, then at least plans and price tags have been developed –Developable: wetlands delineated and mitigated, environmental assessments (and mitigation, if necessary) are complete

32. Fundamentals of Site Inventory Create both a hard copy and electronic file for each site Maintain all information in both hard copy and electronic format

33. Fundamentals of Site Inventory Visuals are extremely important –Identify the site boundaries on maps!!! –Include a north arrow, scale, data source, and date

34. Components of a Site Inventory Site Characteristics Zoning Transportation Utilities Environmental Emergency Protective Services* Workforce* Education* Labor Management Relations* *Data on these items is most often maintained at the community or county level, but certain site-specific items should be included in the site inventory.

35. Site Characteristics Data –Size –Configuration / shape –Number of parcels –Property ownership / control –Easements and right-of-ways –Topography –Bodies of water –Soil types

36. Site Characteristics Visuals / attachments –General location map –Aerial photograph –Topographic map –FEMA floodplain map –Ownership map / tax map –Documentation of property availability –Easements / right-of-ways map –Soils map

37. Zoning Data –Zoning designation(s) of the site –Surrounding zoning / land use –Process for rezoning (if applicable) Visuals / attachments –Zoning map –Letter of willingness to considering rezoning (if applicable)

38. Transportation Data –Roads –Rail –Airports –Ports Visuals / attachments –Transportation infrastructure maps –Letter from rail service provider

39. Utilities Data –Electric –Natural gas –Water –Sewer Visuals / attachments –Utility infrastructure maps –If utilities are not at the site, a letter from the service providers regarding utility extension

40. Environmental Data –Studies: Phase I Environmental, Geotechnical Assessment, Wetlands Delineation, Archaeological –Permitting process –Mineral rights ownership (if applicable) –Any past mining / drilling (if applicable) –Sink holes, natural springs, caves (if applicable) Visuals / attachments –Copies of studies –Map of mining / drilling locations –Map of sink holes, natural springs, cave locations

41. Emergency Protective Services Data –Ambulance / EMT Provider, distance from site, personnel –Fire Provider, resources, distance from site, personnel, insurance rating –Police Provider, resources, personnel

42. Workforce Data –Largest employers –Largest manufacturers –Recent new or expanding projects –Recent closings or layoffs –Employment statistics

43. Education Data –Public School Districts (K-12) Enrollment, spending, student / teacher ratio –Community colleges, technical schools Enrollment, distance from site, programs –Universities Enrollment, distance from site, programs

44. Labor Management Relations Data –Largest unionized companies Union(s), number of employees, % unionized

45. Economic Development Site Selection Seminar: Is your Community Ready? Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Site Selectors 101 Boot Camp – Part 2 September 7 th, 2011 Ed McCallum, Senior Principal

46. Responding to RFPs Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Kimberly Williams, Consultant

47. Planning Phase Conception Feasibility Investment Decision Phase I Alignment/Criteria Regional Analysis Areas of Interest RFP Candidate Communities Phase II Community Visits Site Evaluation Comparative Analyses Finalist Communities Phase III Negotiations Evaluation Site Due Diligence Selection Announcement Managing Your Site Inventory Responding to RFP Preparing for Site Visits Overview: Facility Sting Process

48. Context of the RFP Process Through advances in technology and the increased availability of data, the initial steps of the site selection process can be conducted in-house, without contacting the state or local economic development officials When you are contacted, you are already an “Area of Interest”

49. Fundamentals of Responding Strive to be –Accurate –Timely –Complete Use communication to distinguish your community –Acknowledge receipt of RFP –Follow-up after sending proposal

50. Fundamentals of Responding Focus on providing the information that is requested Supplement the submission with other information you would like to provide

51. Responding to RFPs Use a 3-ring window-view binder –Provides space for a cover page –Allows contents to be removed, copied, and replaced –Keeps materials intact

52. Responding to RFPs Prepare each cover page to include –Project name –Site name –Location (City, County, State) –Submitting organization –Date of submission Label the spine of the binder

53. Responding to RFPs When submitting more than one site, include all parallel / common information (i.e., cover letter, road maps, etc.) with each site

54. Responding to RFPs Provide a Table of Contents or Reference Page at the front of the submission Use tabs or colored paper to separate sections and attachments

55. Responding to RFPs Any large documents that cannot be bound (i.e., E-size plats) should be placed in sheet protector sleeves

56. Responding to RFPs When submitting more than one site, create a CD for each site Place CD within the binder sleeve, or an adhesive CD sleeve

57. Summary Characteristics of a good proposal –Clearly labeled –Organized –Thorough –Meets deadline

58. Preparing for Site Visits Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Ed McCallum, Senior Principal

59. Planning Phase Conception Feasibility Investment Decision Phase I Alignment/Criteria Regional Analysis Areas of Interest RFP Candidate Communities Phase II Community Visits Site Evaluation Comparative Analyses Finalist Communities Phase III Negotiations Evaluation Site Due Diligence Selection Announcement Planning Phase Conception Feasibility Investment Decision Phase I Alignment/Criteria Regional Analysis Areas of Interest RFP Candidate Communities Phase II Community Visits Site Evaluation Comparative Analyses Finalist Communities Phase III Negotiations Evaluation Site Due Diligence Selection Announcement Managing Your Site Inventory Responding to RFP Preparing for Site Visits Overview: Facility Sting Process

61. Fundamentals for Site Visits Goal is to understand –Site conditions and / or –Operating conditions and / or –Living conditions

62. Preparing for Site Visits Understand the function of the visit, and who is coming –Where are they in the site selection process –What specific information is required for next step or project milestone –If possible, get names and positions –There are only two leaders (Clients and Yours)

63. Preparing for Site Visits Provide materials –Itineraries (with names) –Site summary sheet –Maps!!! Provide –What they ask for first –What you think they need next –NEVER refer back to “information I have already sent you” (have duplicates)

64. Preparing for Site Visits Review the project drivers and specifications, and be prepared to address how the site meets them Assemble a site visit team that can provide additional expertise Control the experts – you are in charge, not them

65. Preparing for Site Visits Make sure that all members of the site visit team are familiar with –Project specifications –Site that was submitted –Who is in charge (it is not them)

66. Conducting Site Visits Position –Strengths to match client needs Maximize value –Mitigate weaknesses Minimize impact Communicate –Answer the questions!

67. Zen According to MSC You are a service organization first –Know where you are in site selection process –Answer the questions asked –Facilitate information flow –Provide support as necessary You are a sales organization last –Selling does no good if you are eliminated due to lack of information

68. 6 Legitimate Points of Contact Verification of receipt of RFP Questions about the RFP RFP response is on its way – Verification of receipt to consultant Follow up – are there any questions about the RFP Follow up on Status

69. Summary Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Ed McCallum, Senior Principal

70. What Does This Mean For You? Siting is a process driven by some key fundamental issues –Understanding those fundamentals and the process will enable you to better influence the decision Responsiveness with quality, critical, and relevant information is the best way to influence the decision Know your product, know your customer, and respond appropriately

71. McCallum Sweeney Consulting Ed McCallum Senior Principal McCallum Sweeney Consulting 550 S. Main Street - #550 Greenville, SC 29601 864-672-1600 864-672-1610 (fax) emccallum@mccallumsweeney.com www.mccallumsweeney.com