Florida Brownfields Association

Presented by: Michael Maier Real Estate Manager, Southeast US

2 Tampa

  World’s leading home furnishings company

  Still privately held; still based in Sweden

  565 million people visited IKEA in 2008   Global sales for 2008: $31 billion

–  Germany: 16% –  U.S.: 10% –  France: 10% –  U.K.: 7% –  Sweden: 6%

  U.S. sales for 2008: $3.16 billion   Recent focus has been on expansion in U.S.

IKEA: Inside the Numbers

Tampa

3 Tampa

  France

  Germany

  Greece

  Hungary

  Iceland

  Ireland

  Israel

  Italy

  Japan

  Kuwait

  Malaysia

  Netherlands

  New Zealand *

  Norway

  Poland

  Portugal

  Romania

  Russia

  Saudi Arabia

  Serbia *

  Singapore

  Slovakia

  Slovenia *

  Spain

Where We Are: Countries with IKEA Stores

(* = new country with store opening planned)

  Sweden

  Switzerland

  Taiwan

  Turkey

  Ukraine *

  United Arab Emir

  United Kingdom

  USA

  Australia

  Austria

  Belgium

  Bulgaria *

  Canada

  China

  Croatia *

  Cyprus

  Czech Rep.

  Denmark

  Domin. Rep. *

  Finland

Tampa

4 Tampa

Existing and Future Stores

5 Tampa

  New Stores are between 350 – 400k SF   Prototypical store design.   Parking at 4.5 / 1,000 SF.

  Land area ranges from 15 – 30 acres   Direct highway access and visibility   Major markets with 2 million

population   Draw 80% within 60 minute drive-time

Site Requirements for IKEA

Tampa

6 Tampa

Why Tampa?

7 Tampa

The Location of IKEA Tampa

8 Tampa

IKEA Project

9 Tampa

December 2007

Tampa

10 Tampa

Transaction Timeline

Tampa

  March 2007: IKEA places property under contract

•  Due Diligence begins; tight timeframes to satisfy closing conditions and to build and open the store

  April 2007: Existing and open environmental

SRCO (solvent area) being handled by DEP

  May 2007: Phase I and II identify contaminants

(soil & groundwater)   June 2007: Initial discussion with the City of

Tampa re: brownfield inclusion

  July 2007: Amend purchase contract to reflect new environmental

11 Tampa

Site Rehabilitation Completion Order (“SRCO”)

Tampa

  The ‘No Further Action’ declaration to be issued by the Hillsborough County Environmental Protection Commission (EPC)

  Contains two major elements: 1.  Requirement that two feet of clean fill remain

permanent on most of the IKEA site. 2.  For areas that could not meet this requirement

(retention pond, truck docks), a Declaration of Restrictive Covenant was agreed-upon restricting selected areas to industrial uses only.

12 Tampa

Transaction Timeline   August 2007: Brownfield Site Rehab. Agreement

(BSRA) prepared   Sept 2007: Rezoning of parcel   Dec 2007: Initial SRCO (solvents) finalized.   Dec 2007: Brownfield designation approved

by City of Tampa; ‘BSRA’ finalized

  Jan 2008: NOI SRCO was finalized.   Jan 2008: Property Closing.

–  Post-closing work included remediation by Seller; obtaining regulatory close-out for all environmental matters (SRCO); pad prep and off-site work

  June 4, 2008: IKEA breaks ground   Aug 2008: No Further Assessment –Tank Area   May 6, 2009: IKEA Tampa opens!

13 Tampa

May 2009

Tampa

14 Tampa

SRCO ‘reports and documents’ 1.  Phase I Environmental Assessment 2.  Phase II Environmental Assessment 3.  Combined Site Assessment Report /

Remedial Action Plan 4.  Supplement to Site Assessment

Report 5.  Site Assessment Report Addendum 6.  Second Supplement to Site

Assessment 7.  Interim Source Removal Completion

Report 8.  Groundwater Sampling Testing

Results; No Further Action w/ Controls Proposal

9.  Groundwater Monitoring Summary 10.   Underground Storage Tank Closure

Assessment Report 11.   Interim Source Removal Supplement 12.   Engineering Controls Certification 13.   Engineering Controls Clarification 1 14.   Engineering Controls Clarification 2 15.   Soil Disposal Documentation

16)   Engineering Controls Clarification 3

17)   Engineering Controls Clarification 4

18)   Site Rehabilitation Completion Report

19)  Maintenance of Engineering Controls During Site Development

20)   Engineering Controls Clarification 21)   Supplement 1: Engineering

Controls Clarification 22)   Supplement 2: Engineering

Controls Clarification 23)  Brownfield Site Rehabilitation

Agreement 24)  Declaration of Restrictive

Covenant – Recorded 25)  Conditional Site Rehabilitation

Completion Order 26)   Potable Well Survey 27)  Well Abandonment Report.

15 Tampa

Brownfield Designation Benefits

Tampa

Statutory Brownfield Benefits:   Florida Brownfield Redevelopment Bonus

Program. –  Approved to receive up to $450,000 over five

years; based on job creation measures, salary and benefits.

  Florida Enterprise Zone –  Business Equipment Sales Tax Refund –  Business Material Sales Tax Refund –  Property Tax Credit

  Voluntary Cleanup Tax Credits

16 Tampa

IKEA stores located on former industrial sites

Tampa

  IKEA Elizabeth, NJ (NYC market)   IKEA Renton, WA (Seattle market)   IKEA Emeryville, CA (SF market)   IKEA New Haven, CT   IKEA Atlanta, GA   IKEA Brooklyn, NY   IKEA Tampa (FL)   IKEA Somerville, MA (Boston market)**

20% of IKEA stores in the US are located on redeveloped former industrial sites

17 Tampa

Questions or Comments?

Tampa