Economic Development Site Selection Seminar: Is your Community Ready?

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Economic Development Site Selection Seminar Is
your Community Ready?
Site Selectors 101 Boot Camp Part 1
Buckeye Power Economic Development Site
Selection Seminar November 7, 2006

• September 7th, 2011
• Ed McCallum, Senior Principal

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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

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Introduction
4
Introduction Private Sector Clients
American Titanium Works
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Introduction Economic Development Clients
Charleston Regional Development Alliance
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Presentation Overview

• IS YOUR COMMUNITY READY?
• The Competitive Environment
• Managing Your Site Inventory
• Responding to RFPs
• Preparing for Site Visits

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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

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The Competitive Environment

• Company decision-making timeframes are getting
  shorter
• Communities need to be prepared with sites that
  are ready for development

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Site Selection Factors
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The Competitive Environment
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Competitive Site Selection Screening Process
Candidate Locations
Define Search Region - Center-of-Market Analysis
Regional Screening - Project Criteria (Musts
Wants) Proposal Screening
Comparative Assessment
Decision-Making Analysis
Risk Analysis
Site Decision
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The Competitive Environment
Response Time and Information Relevance
Response Time and Information Relevance
The Old Way
The New Way
Information from Candidate
Project Time Line
Project Time Line
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Information Management (The old Way)
The Old Way
The New Way
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Desire vs. Reality
Quality of Candidate Site
Site Readiness
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Process vs. Reality
Planning Phase
Phase I
Phase II
Phase III
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Affecting the Decision
Planning
Phase I
Phase II
Phase III
Phase
Influencing
Positioning
Where your advantages are perceived as important
Where your assets are recognized as relevant
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Critical Factors in Site Selection
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Critical Factors in Site SelectionRecurring and
Non-Recurring Costs
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Critical Factors in Site SelectionCombined NPV
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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

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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!

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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

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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

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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

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The Competitive Environment

• Speed
• Siting decision and project development
• Confidentiality
• Critical for a variety of reasons
• Professionalism
• Integrity, reliability
• Determination and persistence

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Managing Your Site Inventory

• Buckeye Power
• Economic Development Site Selection Seminar
• November 7, 2006
• Kimberly Williams, Consultant

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

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Why Establish a Site Inventory?

• Fundamentals
• Deadline driven
• Risk averse
• Land and site are not synonymous

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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

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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

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Fundamentals of Site Inventory

• Visuals are extremely important
• Identify the site boundaries on maps!!!
• Include a north arrow, scale, data source, and
  date

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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.
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Site Characteristics

• Data
• Size
• Configuration / shape
• Number of parcels
• Property ownership / control
• Easements and right-of-ways
• Topography
• Bodies of water
• Soil types

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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

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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)

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Transportation

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

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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

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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

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Emergency Protective Services

• Data
• Ambulance / EMT
• Provider, distance from site, personnel
• Fire
• Provider, resources, distance from site,
  personnel, insurance rating
• Police
• Provider, resources, personnel

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Workforce

• Data
• Largest employers
• Largest manufacturers
• Recent new or expanding projects
• Recent closings or layoffs
• Employment statistics

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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

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Labor Management Relations

• Data
• Largest unionized companies
• Union(s), number of employees, unionized

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Economic Development Site Selection Seminar Is
your Community Ready?
Site Selectors 101 Boot Camp Part 2
Buckeye Power Economic Development Site
Selection Seminar November 7, 2006

• September 7th, 2011
• Ed McCallum, Senior Principal

46
Responding to RFPs

• Buckeye Power
• Economic Development Site Selection Seminar
• November 7, 2006
• Kimberly Williams, Consultant

47
Overview Facility Sting Process

• Planning Phase
• Conception
• Feasibility
• Investment Decision

• Phase II
• Community Visits
• Site Evaluation
• Comparative Analyses
• Finalist Communities

• Phase I
• Alignment/Criteria
• Regional Analysis
• Areas of Interest
• RFP
• Candidate Communities

• Phase III
• Negotiations
• Evaluation
• Site Due Diligence
• Selection
• Announcement

Preparing for Site Visits
Managing Your Site Inventory
Responding to RFP
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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

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Fundamentals of Responding

• Strive to be
• Accurate
• Timely
• Complete
• Use communication to distinguish your community
• Acknowledge receipt of RFP
• Follow-up after sending proposal

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Fundamentals of Responding

• Focus on providing the information that is
  requested
• Supplement the submission with other information
  you would like to provide

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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

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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

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Responding to RFPs

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

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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

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Responding to RFPs

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

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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

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Summary

• Characteristics of a good proposal
• Clearly labeled
• Organized
• Thorough
• Meets deadline

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Preparing for Site Visits

• Buckeye Power
• Economic Development Site Selection Seminar
• November 7, 2006
• Ed McCallum, Senior Principal

59
Overview Facility Sting Process

• Planning Phase
• Conception
• Feasibility
• Investment Decision

• Planning Phase
• Conception
• Feasibility
• Investment Decision

• Phase II
• Community Visits
• Site Evaluation
• Comparative Analyses
• Finalist Communities

• Phase II
• Community Visits
• Site Evaluation
• Comparative Analyses
• Finalist Communities

• Phase I
• Alignment/Criteria
• Regional Analysis
• Areas of Interest
• RFP
• Candidate Communities

• Phase III
• Negotiations
• Evaluation
• Site Due Diligence
• Selection
• Announcement

• Phase I
• Alignment/Criteria
• Regional Analysis
• Areas of Interest
• RFP
• Candidate Communities

• Phase III
• Negotiations
• Evaluation
• Site Due Diligence
• Selection
• Announcement

Preparing for Site Visits
Managing Your Site Inventory
Responding to RFP
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Fundamentals for Site Visits

• Goal is to understand
• Site conditions
• and / or
• Operating conditions
• and / or
• Living conditions

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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)

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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)

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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

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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)

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Conducting Site Visits

• Position
• Strengths to match client needs
• Maximize value
• Mitigate weaknesses
• Minimize impact
• Communicate
• Answer the questions!

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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

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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

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Summary

• Buckeye Power
• Economic Development Site Selection Seminar
• November 7, 2006
• Ed McCallum, Senior Principal

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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

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McCallum Sweeney Consulting
Ed McCallumSenior PrincipalMcCallum Sweeney
Consulting550 S. Main Street - 550Greenville,
SC 29601864-672-1600864-672-1610
(fax) emccallum_at_mccallumsweeney.com www.mccall
umsweeney.com