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Wyoming Business Council’s Industrial Site Evaluation and Certification Program October 9, 2013 Mark Sweeney, Senior Principal Lindsey Myers, Senior Consultant.

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Presentation on theme: "Wyoming Business Council’s Industrial Site Evaluation and Certification Program October 9, 2013 Mark Sweeney, Senior Principal Lindsey Myers, Senior Consultant."— 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 The Main Thing To Remember Attracting investment and jobs is more competitive than ever… 2

3 The Main Thing to Remember … And being prepared creates competitive advantage. 3

4 Introduction to McCallum Sweeney Consulting 4

5 5 MSC Clients Kasle Steel Boy Scouts of America SGL Automotive Carbon Fibers LLC joint venture American Titanium Works

6

7 MSC Clients – Economic Development 7

8 8

9 What Can a Community Do to be More Attractive? (Be prepared!) 9

10 Business of Economic Development Overview 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

11 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

12 Sites and Infrastructure Severcorr Steel Columbus, MS Rural community Demanding site specs Community proactively prepared –Site certification $800 million 450 jobs 12

13 Organization Funding Funding –Secure –Reliable –Adequate –Long term –Broad participation / broadly supported –Flexible and discretionary Avoid too much “earmarking” 13

14 Sales and Marketing Customer 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

15 Sales and Marketing Market 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

16 Sales and Marketing Communication 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

17 Overview of the Site Selection Process 17

18 Competitive Site Selection Screening Process 18 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

19 Site Selection Process 19 Planning PhasePhase 1Phase 2Phase 3Phase 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

20 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

21 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

22 Role of Incentives 22

23 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 `

24 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 `

25 Final Thought on Incentives Incentives Do Influence the Final Decision –Impact the capital investment decision model –Timing is critical ` 25

26 Site Certification 26

27 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

28 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

29 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

30 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

31 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

32 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 Benefits of Site Certification

33 Site Selection Process and Certification 33 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

34 When Certification Paid Off Severcorr Steel Columbus, MS Rural community Demanding site specs Community proactively prepared –Site certification $800 million 450 jobs 34

35 Overview of Wyoming Business Council’s Industrial Site Evaluation and Certification Program 35

36 To develop a portfolio of certified sites that will make Wyoming more competitive in site selection projects 36 Program Objective

37 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

38 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

39 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

40 Certification Category Criteria Total Contiguous Acreage Minimum Developable Acreage (%) Rail Required Highway Access Water (gpd) Wastewater (gpd) Natural Gas (mcf/month) Small Site<25100%No State standards for truck access 50,00040,000Not required Medium Site25-249 20-200 1 (80%) No State standards for truck access 150,000100,00010,000 Large Site250-499 200-400 1 (80%) No State standards for truck access 300,000200,00015,000 Super Site500+ 400+ 1 (80%) Yes10 miles 4 500,000400,00025,000 Note 1.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 Total Acreage Minimum Developable Acreage Rail Required Highway Access Water (gpd) Wastewater (gpd) Natural Gas (mcf/month) Business Park 50+5252 No State standards for truck access 75,00050,000Not required Industrial Park 100+20 3 No State standards for truck access 300,000200,00015,000

41 1.Complete and Submit a Application of Intent 2.Receive Phase II Site Evaluation Materials 1.Complete and Submit a Phase II Evaluation Application 2.Receive Initial Feedback via Site Visit Letter 3.Conduct Site Visit 4.Receive Notification of Selection Status / Invitation to Proceed 5.Complete and Submit a Phase III Certification Application 6.Receive Feedback via Follow-up Letter 7.Provide Follow-up Information 8.Receive Notification of Certification Decision 9.Announcement Event or Press Release 41 Process Overview

42 1.Review Program Overview and Application of Intent 1.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 42 Process Details

43 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 43 Process Details CategoryTotal AcreagePhase 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

44 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. 44 Process Details

45 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 45 Process Details

46 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 46 CategoryTotal AcreagePhase 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

47 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 47

48 Process Details 11.Receive Notification of Certification Decision –MSC will issue a letter indicating site status to each participant –Notification will occur in the 4 th 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 48

49 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 49 Business Ready Community (BRC) Planning Grants

50 The Main Thing to Remember Attracting investment and jobs is more competitive than ever, and being prepared creates competitive advantage. 50

51 Questions? 51

52 MSC Contact Information Mark Sweeney Lindsey Myers Senior Principal Senior Consultant msweeney@mccallumsweeney.com lmyers@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


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