1. FORD SITE GREEN MANUFACTURING REUSE STUDY January 11, 2010 Presented by: Jay Demma Bonestroo, Inc.

2. PRESENTATION TOPICS  Project History/Background  Market Interviews  Workforce Analysis  Site Assessment  Conclusions

3. SITUATION/CONTEXT  Closing of Ford plant in 2011; 800 employees  Declining manufacturing base  Emerging green economy  Green attributes of the Ford site

4. PREVIOUS STUDIES  2007: Redevelopment of the Ford Motor Company Site  Five land use scenarios  2008: Green Cities Green Jobs Minneapolis Saint Paul  HVAC Controls  Sensors & Monitoring Systems  Bio-fuel Systems

5. RFP SCOPE 1.“Feasibility study and cost assessment for redeveloping or reusing the existing Ford site, and perhaps the buildings, for a new manufacturer.” 2.“Identify the specific site characteristics and building needs, and employee qualities and skills, sought by manufacturers in each of the identified green industry sectors.” 3.“Identify the job skills needed in the identified green industry sectors.” “Analyze the findings from the above work tasks to determine if the Ford site is appropriate for reuse by any of the identified industries.”

6. CONSULTANT TEAM

7. OVERVIEW OF RESEARCH PROCESS MARKET INTERVIEWS WORKFORCE ANALYSIS SITE ASSESSMENT

8. OVERVIEW OF RESEARCH PROCESS MARKET INTERVIEWS WORKFORCE ANALYSIS SITE ASSESSMENT OPTIMAL OUTCOME

9. NATIONAL TRENDS IN MANUFACTURING US Non-Farm Employment, 1939-2009 1944 Mfg is 38% of jobs 1979 Mfg peaks at 19.4 mil jobs 2009 Mfg is 9.3% of jobs (12.4 mil jobs)

10. TRENDS IN GREEN INDUSTRIAL PARKS  Highly competitive environment  “Green” has caught on among economic developers  Estimate of 100+ green parks actively marketing nationwide  All industrial properties, though, are potential competition  Many local governments subsidize cost of clean-up, land, and sometimes rent

11. MARKET INTERVIEWS  In-depth interviews with green manufacturers (45-50 min)  Company decision makers  Challenging environment  2,500 firms profiled  74 firms contacted (59 refusals)  13 completed interviews  Several interviews with firms outside of target industries (e.g. solar companies)

12. MARKET INTERVIEWS  Subsidies are essential  Access to highways is important  Green sites are desirable but not essential  Companies that sell direct to consumers need to be perceived as green  Companies on a supply chain are not motivated by a need to be perceived as green

13. WORKFORCE ANALYSIS  Alignment of workforce skills at Ford plant with skills/staffing patterns in 5 green industries  Electric vehicle manufacturing  HVAC controls manufacturing  Wind component manufacturing  Sensors and monitoring equipment mfgr.  Bio-fuels component manufacturing  Evaluation of training center

14. WORKFORCE ANALYSIS  Industries with strongest overlap with Ford workforce are:  Electric Vehicle Manufacturing  HVAC Controls  Occupations with strong overlap & retraining potential  Team assemblers  Painters  Inspectors  Electronic & electromechanical equipment assemblers  Welders, cutters, solderers, and brazers

15. WORKFORCE ANALYSIS  Manufacturers are increasingly integrating production with design & engineering  Ford facility and workforce is almost exclusively production-based  Most interviewed maintain a more diverse staffing pattern (production, engineering, sales, etc.)  Location of site will draw interest from firms looking for young engineers, technical & professional workers as well as production workers

16. WORKFORCE ANALYSIS  Built in 1997  Classrooms, media center, auditorium, robotics lab  Could be valuable for retraining workers  Most desirable among emerging industries with new technologies and skills (e.g. solar and wind)  Location of training facility may seriously limit effective reuse of site  Could be interim use in other redevelopment scenarios Training Center 40,000 square feet

17. SITE AND BUILDING ASSESSMENT  Tour of site to identify issues and assets  Estimate costs associated with four development scenarios

18. Scenario 1: Demolish All Buildings COSTS Demo: $8.2 mil Construction : TBD Manufacturing Sq Ft: TBD

19. Scenario 2: Reuse All Buildings COSTS Demo: $0.7 mil Const : $17.6 mil Manufacturing Sq Ft: 2 Million SF

20. Scenario 3: Reuse Paint Building Only COSTS Demo: $5.4 mil Const: $5.8 mil Manufacturing Sq Ft: 550,000

21. Scenario 4: Reuse Warehouse Building Only COSTS Demo: $5.9 mil Const: $2.7 mil Manufacturing Sq Ft: 250,000

22. CONCLUSIONS Subjective Decision Chart

23. CONCLUSIONS  Expect Heavy Subsidies  Focus the Marketing Effort  HVAC Controls  Sensors & Monitoring Systems  Solar Panels  Strategically Reuse Portions of the Site  Track the Economy and Time Any Investment  Consider Creating a Park or District with Strict Green Standards

24. QUESTIONS