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




                                                 SGL Automotive Carbon
                                                 Fibers LLC joint venture   American Titanium Works




                                                                                    Kasle
                                                                                    Steel



Boy Scouts of America
     Introduction
Economic Development Clients




    INDIANA MUNICIPAL
    POWER AGENCY




                        Charleston Regional
                        Development Alliance
            Presentation Overview


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




Buckeye Power
Economic Development Site Selection Seminar
November 7, 2006

Ed McCallum, Senior Principal
        The Competitive Environment


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


• Company decision-making timeframes
  are getting shorter

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


Response Time and Information Relevance
 Response Time and Information Relevance
   Information from Candidate




                                The Old Way



                                                     The New Way




                                              Project Time Line
                                               Project Time Line
     Information Management
              (The old Way)



The Old Way                   The New Way
                            Desire vs. Reality
Quality of Candidate Site




                               Site Readiness
               Process vs. Reality


Planning
Phase      Phase I       Phase II    Phase III
                  Affecting the Decision


Planning
Phase          Phase I         Phase II      Phase III




                                           Where your
                                           advantages are
           Where your assets
                                           perceived as
           are recognized as
                                           important
           relevant
               Critical Factors in Site Selection
                                                         Local Occupational Tax

                       Recurring Cost Assessment
                                                               Franchise Tax

                                        Income Tax
                                                               Real Property


                                                               Personal Property
                            Utilities

                                                               Inventory Tax


                                                               Uemployment Insurance



Transportation Costs




                                                     Wages and Benfits
               Critical Factors in Site Selection
                  Recurring and Non-Recurring Costs


                              Non-Recurring Costs



$8,000,000



$7,000,000



$6,000,000



$5,000,000

                                                                     Series1
                                                        $7,500,000
$4,000,000



$3,000,000                        $5,150,000



$2,000,000



$1,000,000
                 $540,000


        $0
             Alternative 1    Alternative 2         Alternative 3
                 Critical Factors in Site Selection
                                Combined NPV

                                 10 Yr. NPV at 10.0%




$72,000,000




$71,500,000




$71,000,000



                                                                         Series1
$70,500,000                          $71,784,910

                                                           $71,241,385

$70,000,000


                  $70,123,839

$69,500,000




$69,000,000
              Alternative 1      Alternative 2         Alternative 3
          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
           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!
            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
            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
            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
             The Competitive Environment


• Speed
  – Siting decision and project development

• Confidentiality
  – Critical for a variety of reasons

• Professionalism
  – Integrity, reliability

• Determination and persistence
                  Managing Your Site Inventory




Buckeye Power
Economic Development Site Selection Seminar
November 7, 2006

Kimberly Williams, Consultant
            Overview: Facility Sting Process




Managing     Responding   Preparing
Your Site      to RFP         for
Inventory                 Site Visits
         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
        Why Establish a Site Inventory?



• Fundamentals
  – Deadline driven
  – Risk averse


• “Land” and “site” are not synonymous
           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
        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
        Fundamentals of Site Inventory


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


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


• Data
  – Roads
  – Rail
  – Airports
  – Ports

• Visuals / attachments
  – Transportation infrastructure maps
  – Letter from rail service provider
                       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
                        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
           Emergency Protective Services


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


• Data
  – Largest employers
  – Largest manufacturers
  – Recent new or expanding projects
  – Recent closings or layoffs
  – Employment statistics
                     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
         Labor Management Relations



• Data
  – Largest unionized companies
    • Union(s), number of employees, % unionized
Economic Development Site Selection
Seminar: Is your Boot Camp Ready?
Site Selectors 101 Community – Part 2
Buckeye Power
September 7th, 2011 Site Selection Seminar
Economic Development
Ed McCallum, Senior Principal
November 7, 2006
                           Responding to RFPs




Buckeye Power
Economic Development Site Selection Seminar
November 7, 2006

Kimberly Williams, Consultant
                  Overview: Facility Sting Process


   Planning
   Phase           Phase I                  Phase II                Phase III

   •Conception     •Alignment/Criteria      •Community Visits       •Negotiations

   •Feasibility    •Regional Analysis       •Site Evaluation        •Evaluation

   •Investment     •Areas of Interest       •Comparative Analyses   •Site Due Diligence
    Decision       •RFP                     •Finalist Communities   •Selection

                   •Candidate                                       •Announcement
                    Communities




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


• Strive to be
  – Accurate
  – Timely
  – Complete

• Use communication to distinguish your
  community
  – Acknowledge receipt of RFP
  – Follow-up after sending proposal
         Fundamentals of Responding


• Focus on providing the information that is
  requested

• Supplement the submission with other
  information you would like to provide
             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
              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
             Responding to RFPs


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


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


• Characteristics of a good proposal
  – Clearly labeled
  – Organized
  – Thorough
  – Meets deadline
                        Preparing for Site Visits




Buckeye Power
Economic Development Site Selection Seminar
November 7, 2006

Ed McCallum, Senior Principal
                  Overview: Facility Sting Process


   Planning
   Phase           Phase I                  Phase II                Phase III

   •Conception     •Alignment/Criteria      •Community Visits       •Negotiations

   •Feasibility    •Regional Analysis       •Site Evaluation        •Evaluation

   •Investment     •Areas of Interest       •Comparative Analyses   •Site Due Diligence
    Decision       •RFP                     •Finalist Communities   •Selection

                   •Candidate                                       •Announcement
                    Communities




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


• Goal is to understand
  – Site conditions
     and / or
  – Operating conditions
     and / or
  – Living conditions
                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)
            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)
           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
                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)
               Conducting Site Visits



• Position
  – Strengths to match client needs
     • Maximize value
  – Mitigate weaknesses
     • Minimize impact


• Communicate
  – Answer the questions!
            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
           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
                                   Summary




Buckeye Power
Economic Development Site Selection Seminar
November 7, 2006

Ed McCallum, Senior Principal
           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
      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

				
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