gemmen- industrial site certification & site readiness
DESCRIPTION
Jonathan Gemmen Tuesday October 7 @ 10:15am-10:45amTRANSCRIPT
Roundtable in the Desert Scottsdale, Arizona
Jonathan Gemmen
Senior Location Consultant
Austin Consulting
October 6-9, 2014
Markets Served:
Food and Beverage
General Manufacturing
Aerospace / Aviation
Logistics and Distribution Centers
Research and Development
Pharmaceuticals
Office / Back Office
Information Technology
Energy / Renewable Energy
Designers | Engineers | Constructors | Consultants
The Austin Company
Full service design, engineering and construction management firm
Founded 1878 in Cleveland
Initiated Design/Build project delivery method 1901
Member of Kajima family of companies - Tokyo based engineering/construction giant
is the site selection arm of
Austin Consulting – Strategy to Implementation
Short List
Cities /
Sites
Favorable Region
Long List Regions
Stay in the race
by IMPROVING
COMPETITIVE
STANDING
Selected Location
Location Selection is a Process of Elimination
October 2014 5
Location Selection Process
3. Deliver on Your
Promises - (a.k.a.)
“Close the Deal”
1. Get on the Radar
Screen with Your
Brand 2. Demonstrate You
are the Right Place
Evaluate Strategic
Alternatives
Screen & Evaluate
Communities/Sites
Negotiate Incentives
Conduct Due Diligence
Avoid Giving
Prospects a Reason to
Walk Away from Your
Community
Strategy
Development Location
Investigation Due
Diligence Implement
Project
MINIMIZE OPERATING
COSTS
MINIMIZE RISK
MINIMIZE ONE-TIME
COSTS
Identify location
through an “apples to
apples” comparison of
alternatives
OPTIMAL LOCATION
Optimal Location Balances Competing Interests
Current Site Certification Experience
October 2014 8
1. Control of the property
– Community owns or has property under contract
– Willing seller with published asking price
2. Utility access
– All utilities at site or near with construction plans
designed and approved
– System capacity & delivery capacity
3. Developable
– Environmental & cultural
– Transportation access
– Community in step
Basic Elements of Certification
Tennessee Valley Authority’s (TVA) Megasite Program
One of the oldest (2002), most specialized, and
most successful in the country
Designed to develop large industrial
sites (1,000 acre minimum) to attract
large automobile manufacturers
Successful in attracting major employers:
– Toyota
– Volkswagen
– Paccar
– Hemlock Semiconductor
– Severstal*
TVA Megasite Program
October 2014 11
Introduction
Asking the “Frequently Asked Questions”
Three elements of a certified site
Brief Review of “Best Practices Analysis” of six site
certification programs
Site size & utility requirements
“To Preserve & Align”
Some examples:
─ Straightening the channel
─ The Mega Site alibi
The reasonable next step
Presentation Outline
October 2014 12
• What is a “certified” or “shovel-ready” site?
• What is the national standard for such
programs?
• What sets a “certified” site apart?
• In what ways are most certification programs
similar?
• Can any site become a “certified” site?
• Do all end-users demand a “certified” site?
• Does my community have to have a
“certified” site to be competitive?
Frequently Asked Questions
October 2014 13
Mitigates risks for the prospect
Help get more prospect visits
Great marketing tool
Conversation starter
Sends a message that you are committed
to attracting new business
Note: The effort and investment should pay off,
but the ROI will likely not be immediate.
What sets a “certified” site apart?
Iowa City Area Shovel Ready Sites Program
Best Practice Analysis
15
Comparison Areas
16
Commonalities
At least 5 of the 6 programs . . .
• are built around the regional or state industry targets and/or competitive advantages
• use their shovel-ready sites program to drive its marketing message on the worldwide web
• follow utility requirements
– Minimum thresholds for electricity, water, wastewater
– Access to natural gas service
– Fiber optic (usually T-1)
– Minimum proximity to interstate or four-lane highway
17
Commonalities
• Required the following documentation:
– Surrounding land use (including maps and aerials)
– Utilities at, adjacent, or near to site
– Floodplain maps (outside of 100-year floodplain)
– Clean environmental assessment (minimum Phase I)
– Soils report (usually soil borings report)
– Archeological/historical clearance
– Endangered species
– Written permitting process with probable timelines
– Land price
18
Differences
• Number of categories (low 1, high 8)
• Varying application processes
• Professional assistance with reviewing applications
• Grant monies for infrastructure improvements
• Certification timeline after application approved
• Minimum acreage (3 acres to 1,000 acres)
• Documentation
– Wetland Delineation
– Workforce Data
– Restrictive Covenants
19
Conclusions
• TVA Megasite Program - by far most successful in terms of sites sold, jobs created, and capital investment attracted
• Ohio Job Ready Sites Program - most successful in terms of new sites spurred by infrastructure grant funding
• 3rd-party consultants - promote more location/expansions and maintain an objective process with minimal political intrusion
20
Conclusions
• Oklahoma Site Ready - most inclusive in terms of the categories of sites (and detail of application)
• Build Now-NY - greatest benefit has been to expedite permitting time, thereby getting projects to market sooner
• Missouri’s Certified Sites - encouraged good cooperation between competing utility companies and economic developers.
21
Conclusions
• Oregon Certified Industrial Site Program - offers stringent environmental requirements consistent with new sustainable or “green” practices.
• Direct program ties to other state and local incentive programs help promote development.
• Time requirements can affect project outcomes, and, therefore, must be set carefully and updated regularly.
22
Recommendations
• Focused target industries and a good understanding of their site/building needs
• Create a well-planned program criteria (due diligence checklist)
• Diverse sites for the market and a method to replenish the pool of sites
• Infrastructure grant fund and other funding
• Utilize a “3rd-party site selection consultant”
23
Recommendations
• Develop a thorough and graduated pre-application and application process to minimize administrative costs
• Well-defined schedules, timelines, and deadlines for the certification process
• Professional methods designed to expedite the development process (i.e. permitting)
• Good regional cooperation and participation
• Sustainable or “green” practices
End of Best Practice Analysis
October 2014 25
Other Certification Program’s Utility Criteria
West & Mid-Tennessee Deal Ready Sites
Minimum Site Size: 50 acres
Utility Minimums:
• Electricity: 7,500 KVA
• Natural Gas: Available
• Water: 250,000 GPD
• Sewer: 250,000 GPD
• Telecom: T-1 Line
October 2014 26
October 2014 27
Build Now – NY Certified Sites
Category: High-Technology Manufacturing Sites
Minimum Site Size: 25 acres
Utility Minimums:
• Electricity: 7,500 KVA / 15 kV line /
substation <3 miles
• Natural Gas: 9,300 CFH
• Water: 20,000 GPD / 10’ diameter line
• Sewer: 20,000 GPD
• Telecom: T-1 Line
Other Certification Program’s Utility Criteria
October 2014 28
Oregon Industrial Site Certification
Category: Heavy Manufacturing Sites
Minimum Site Size: 25 acres
Utility Minimums:
• Electricity: 1 MW
• Natural Gas: -
• Water: 36,100 GPD
• Sewer: 32,500 GPD
• Telecom: -
Population ≥ 30,000 within 50-radius
Other Certification Program’s Utility Criteria
October 2014 29
Mississippi Power – Project Ready
Categories: Industrial Large Industrial
Minimum Site Size: 100 acres 250 acres
• Electricity: - -
• Natural Gas: Available Available
• Water: 100,000 GPD 500,000 GPD
• Sewer: 100,000 GPD 500,000 GPD
• Telecom: - -
Other Certification Program’s Utility Criteria
October 2014 30
Ohio Certified Job Ready Site Program
Category: Manufacturing Sites
Preferred Minimum Site Size: 200 acres
Utility Minimums:
• Electricity: 6 MW
• Natural Gas: 300,000 CFH
• Water: 500,000 GPD
• Sewer: 300,000 GPD
• Telecom: Reliable Service
(fiber optics preferred)
Other Certification Program’s Utility Criteria
September 2014 31
Eastwood
Commerce Center ______________________________
Wood County, OH
September 2014 32
Lemoyne Substation:
• First Energy’s largest
substation in Ohio is
adjacent to the site.
Eastwood Commerce Center
Wood County, OH
September 2014 33
• Owned by Dominion East Ohio Gas
• 30-inch natural gas transmission line
crosses neighboring property
• $3.9 million Job Ready Site (JRS) grant
recently brought both water and sewer
service to the site
446 Acres
Eastwood Commerce Center - Wood County, OH
September 2014 34
151± acres
Eastwood Commerce Center - Wood County, OH
N
1,625,000 SF
October 2014 35
Scrap yard across
the street
Well-used road
without curb and
gutter
Multiple power
easements across
the most level
portion of the site
No wetland
delineation study
No soil boring in a
rocky region
October 2014 36
CSX Select Site:
Belfast Commerce Centre
Richmond Hill, GA
Belfast Commerce Centre Richmond Hill, GA
306 Acres
Belfast Commerce Centre Richmond Hill, GA
• Memorandum of Understanding between the developer and the City of Richmond Hill for water and sewer expansion.
• Purchase right-of-way for off-site utilities
• Design and permit for future off-site utility installations
Belfast Commerce Centre Richmond Hill, GA
Certification required significant clearing and thinning of forested land.
Belfast Commerce Centre Richmond Hill, GA
Approval of interchange justification report (IJR), which results in the U.S. Dept. of Transportation allowing new interchange on Interstate 95 to be built, once funding is identified.
Belfast Commerce Centre Richmond Hill, GA
Identifying Pockets of Suitable Fill
Belfast Commerce Centre Richmond Hill, GA
Belfast Commerce Centre Richmond Hill, GA
Belfast Commerce Centre Richmond Hill, GA
CSX Select Site:
INland Logistics Port – Kingsbury
LaPorte County, IN
INland Logistics Port - Kingsbury LaPorte County, IN
INland Logistics Port - Kingsbury LaPorte County, IN
INland Logistics Port - Kingsbury LaPorte County, IN
INland Logistics Port - Kingsbury LaPorte County, IN
Assisted in drafting the new Kingsbury Overlay District - a less restrictive land
use ordinance specific to this industrial re-development
Questions?
Thank You
Jonathan Gemmen Senior Location Consultant
Austin Consulting 6095 Parkland Blvd. Cleveland, OH 44124 Phone: 440-544-2254