HANDOUT #1 EDASR 08-10-2009
___ __
SOB LOSSES fN RECEN7 RECESSIONS
5~,9
N.WYR b. RRaRaRa n..u R•• lw R~mwni
as
'1
Fcw ~
1590 '.
)MA, r
µ} J;anA ?.
-l~xb S
y^,~
., n r R elo F~a~al ~•l.z 1s F*In rv:n 11 zz zs za xs ra zr rn:v sos~xr y+srv:rv rn.~a. al ex ar al a,
'~+~FA49 R(!'ASaM1[N ~~39R)RRK[msWlre -~__. RwKR>Riersxn•
Source: Office of the Speaker, U.S. House of Representatives
~!
5%
4%
3%
jR ~ nj Q1
1% ~ ~ ~ ~ ~
~ ~
~% 71^ O ^q N ~` O
O O
~ C ~ ~ O
0
f`9
~ ~ SP ~ 4 ~ Q
-'j% 'xr, ~ Q Q M Q 4
~ ' ~ ~ ~
~ ~ ~
~% N
~ ~ ~ a
z
swa wwauwsmm
~ ~ ~
Select Industries Short Term Growth
(2010) Long Term Growth.
(2016)
Professional Services -4.2% 22.7%
Education/Health Svcs 2.7% 21.6%
Financial Activities -.06% 19.3%
Mgmt of Companies -2.3% 18.7%
Leisure & Hospitality -2.2% 13.8%
Construction -20.8% 7.4%
Wholesale Trade -1.5% 4.4%
Information -3.5% 3%
- Retail Trade
- ~ ~ •. -1.8% 2.7 °~°
We are Seeing:
• Reduced prospect activity
• Companies in survival mode
• Consolidation/portfolio review
of existing manufacturing sites
and leases
• Incentives playing a bigger
role
• More entrepreneurs
• Affordable rents and great
investment opportunities
Clients are seekin>r:
• Existing Facilities 1.00,000 sqr. ft to
150,000 sqr. ft.
• Greenfield -rapid development
site (20 - 50 acre sites)
• Data Centers (1.50-350 acre sites)
• Existing Workforce
• Supply Chains/Supplier Networks
• Considering Alternative Energy
Options
• University/Product Development
Support
• God, grant me the Serenity to accept the
things I cannot change, Courage to change
the things I can, And Tax Incentives to
cover the difference.
What is your "Sphere of Influence"
to Attract and Secure a
:`_ top t:~ ~xt
1.
2. State and local
incentives
Highway accessibility
3. Availability of skilled
labor
4. Energy availability and
costs
5. Tax exemptions
b. OccupancT and
Construction Costs
?. Corporate Tax Rate
~, .Proximity to major
actors
9. Available land
10. Labor costs
11. Expedited or "fast-track"
permitting
12. Available Buildings
13. Accessibility to major
airport
14. Availability of advanced
IT services
15. Proximity to supplier (tie)
Low union profile (Tie)
Top 15 Site Selection Factors
1. Highway accessibility
2. Labor costs
3. Occupancy and
Construction Costs
4. Tax exemptions
5. Energy availability and
costs
6. Availability of skilled
labor
~.#ate and. loca~incgr~itivg~
an:
9. Low union profile
10. Available land
11. Available Buildines
12. Proximity to major
markets
13. Right-to-work state
14. Environmental regulation
15. Expedited or "fast-track"
permitting
• Phase I
- Initial Discussion With Search Team to Define Key Selection Criteria
- Screen Locations and Identify Top Sites
• Geographic Preferences
- (llriven by logistics or other business considerations)
• Industry Presence
- (Indicator for determining the presence of certain skills or industry cluster)
• Resource Availability
- Demographic profile (population, growth rates, education levels, etc.)
- Transportation access (air, interstate, rail and port depending on operation)
- Workforce (quantity/quality of available skills)
- Education and training resources
- Overall costs (real estate, labor, construction, taxes, power, insurance, etc.)
- Availability of water, sewer, gas, telecom and electric power
- Ability to recruit staff to an area (quality of life/cost of housing)
- The presence of certain eupf,tiers, competitors and/or fndustrypartners
- - C'afbrr @x3Aiyl~ of 1vai13bt~ r<~(c tart cpti~na and It~-er)~ur h-~se t~ t`; terms'
tawo.'enet4Aae,. •NO.'61.ruWie.edMilp IMoNAoauilGq wo..iwa.~i rav.wa,.>~
ih%a,e® 4ciy! a W W in 12Ai ma. 6uiigv~tlYn 9 moo or OeiM~p rrihtn a mos_ a Oul~nOwMin 3 mos. a
•~edl OdlM:nwsYMO elyd ort Ytteokh 0.12 bitl onlW Yeakh0.l] YIIId Ori trtba[kb0.12
rdatrp ~Y wl7fin 2 mn. mw. mos. mos.
f~canY pbaUnWeetO • Nrk GaM A altos • YYMtlry tabs • ProdncBan • 8breps alas t21• i
• Mok ONr: Chw NBK. • Oibss • ibmps asdap, SM i aobrln
Dios •pMyry ~psos br Plat •OIIfoM Wo4p.t00Aai sr
ioi+ need ~
moor
o/MarYk~lril res W a prololyps
esasaey • MsefllytreiNllp rooms
• CaiMSlielfrest room eiNaen4~eldsEls )
• Olfas
.
anA balne toonls. t1o cry also
prwidp esaoiss amwlily. • GIMSIiMdldrrll ales
•Laakw rooms • Lodler roans • WadnyEleelc raarn
•Loaker looms
•J1111VA irlla~TlaM CarvelsaM. ~ elld YaslalY Com/aniA. YAs end /WepuYs PelWr9 dear ~tda9111i1s Obi Ileot
owem0prtspls hyarWlt VosanlYPmkhC phos of wok geosdwark
M htporYnt
hock Tw.wC Not apptkras Not AppNra0ls VrMS 14ayr .
/KGiil TO M19MTATF aR tmQalhllt bropmisnr eCONS. hpgrnt br oalmMlhr LOCW WNIIk12-S m1/~ 10CYW MM1h 21111W
OtMYR Ian F.MM~D e~War YAeO Ior tI1MY br}nrk ea0e~e
~ {bMWY 111Mmw a Q11M br WIN.
' VbMdYdak br ailare
PttJC YIUtIMattrAT10N
ACglee NnVOlludrlaer metro teas MrlDalhrrt rlaer meYo
mess tmporlrt br sesrls ~
emgoyss MlgorteM for solrr
empgwss
Ms.IVOCFDO NOl mglisd Nbt naked tmWrarrbsomstypss Nry bl more mlpOdotM
.
O(apIWOtM M ensr{yaosls Ilse
MCMT McEes YIrIIMI 30~Smhstss WfAhh 30-1b mirM Ylflllin.ISiO ninYs Nal ususlsr m ihw
6lwBtlW~t~t TypioWy tow drlrrW 1Ne1tr prosy Dry M an 1VeYr quelty sIW Typcely lour deroslW
tmous9ilElvrp Fnlls 4rlriymWiwry
COST OF 6/ACittlc trawi8t Low b modarels iswe Law b tlydxMS last t`wWOY kaus ModaraM issue
Aaxes ro C+ws Not en last MeY M.re4ohi0 Can M aicsl lre r tlssalp ovtion
Ta~waMCilluHt 9rasebslW win Esak+4 eraedbard win tndcilp iesie sarvsa [misN &Nia sarYlos nYsas
ColEnnaE Mre an ePSOist doh lit
leis Mlsle am inoW doh Ylle
loft
A4Ciis ro t1ltlvpnltY RiD Not O road Aooess b aopaDOnson h TaolmioN gooses Not s eipslleaN need
Proximity (3fl-d5 mintrtes)
•Labor resources (educatiorrldemographics) ~~_ -
•Quality of life/housing costs - ^-~~.~
•BusinessR&D partners
•Airport access ~.
Lirval 2: Local Access
•Distanck to limited access highway
•Public transportation access
• Restaura nts/shopping/services
-Bus'~n®ss services
•SensJtive areas for trucks
Leval 3l Site Conditions '
•Dverall size of site/lot sizes
•DptJons for future expansion
•WeSiands/flood plains/soil
•UNI}ty capacity, cost, backup
:Zt3ttfr~d~iacent site use
~i
._
~ ___--_
Lava14: Facility Situation
•Sizetage/corlditlon Of sirucWre
• Phase II
- On-Site Field Visits
• Review available real estate and related lease/purchase
options (buildings and sites)*
• Evaluate labor and other resources critical to the company's
operation '
- Incentives Negotiation (where available)
• Review available incentives that are applicable to the
company's situation
- Feasibility Analysis
• De~~elop Net Present V ~1ue (RTP~'} of eostsand ii~centi~~es(10
~<:;~;:
uu~:ia~~,. nr%'?C}_v~aar..~rnfnr~nal
~~ 7 -Developed site, new building needing
finlstt and minor modifications.
• Lev+;s! 2 -Developed site, building shell in place
or®xisting building needing modest renovation.
• LoYei 3 -Developed site with virtual permitted
building.
• LQVaI 4 -Developed site ready for building
Construction.
• Lave! 5 -Undeveloped Shovel Ready site.
• Level 6 -Properly zoned but in hands of original
owner.
,~
• Definitions may vary but "Shovel-Ready" refers to
commercial and industrial site that has:
- All of the planning, zoning, surveys, title work, environmental
studies, soils analysis and public infrastructure engineering
completed prior to putting the site up for sale.
And is under the legal control of a cgmmunity or other
"willing' third party partner.
~.a .
~ ~~ ~ gym.
,.
.:;.f. ..... ........
-You have time to work on the deal rather than
looking for information (while your prospect talks to
someone else).
- You are better prepared to offer development
assistance without guessing cost.
Your competition is doing it!
- It builds confidence in your client. "Your are
Business Friendly .and Business Keady." Yc-t~r client
r, ~ti'ill ktlow they, can depend on you to get the job.........,
~` ~~n every site. seaxch there are representations
regarding the site(s) made that are incorrect.
• Everything has to be verified.
• When site information is incomplete, that gives
me or the client time to look elsewhere.
can't risk discovering something bad .after we
• General Sits Information
- Site selectors need a wide variety of information to determine
whether a location is suitable. General site information must
include:
• A legal description of all parcels that make up the site
• A site map and schedule for site plan approvals and permits
• A zoning description of the site plus current and future planned
zoning of adjacent sites. Land use maps must be provided.
• Information about whether the site or adjacent sites fall within the
boundaries of special Economic Development Zones
• Aerial photos noting site boundaries
• The current price offering for land
• Current real estate taxes and special assessments on all parcels that
make u~ the site
,;: 1de~nEi#ication of <u~rezlt and fornu:r_land use of the. site; and
• Specific Tests and Assessments
- Site selectors need to know whether the
ground on a particular site is suitable for
specific structures or uses. Certain tests and
site assessments must be completed and
documented, including:
• Geotechnical soil tests
• Phase I Environmental Assessment and Phase II (if
rr~rn~irPd~
• Utility Services
- The availability of utilities is an extremely important
factor that site selectors consider. The types of
services available at the site and the names of the
providers must be documented, including:
• Electric power
• Sanitary sewer
• Natural gas
• Telecommunications
• Water atld tt`~ste~~~ater treatrii~nt
• Transportation Access
- The ability to receive raw materials and
components and move finished products to
market is crucial to manufacturers.
Transportation access documentation
includes:
• Distances to major state highways and Interstates
• Access to navigably river, inland or sea ports
1: Download Shovel Ready Site Application and
support documents from the Positively Minnesota
Web Site.
• Step 2: Gather required information and complete
testsiassessments.
• Step 3: Submit documentation in electronic and hard
copy to MN DEED along with $2,950 fee.
• Step 4: Submit documentation to DEED and Moran,
Stahl & Bpyer (MS&B) for review.
• Step 5: MS&B to review application and have
discussions with applicant.
• Step 6: MS&B conduct on-site review
~."~-..
~~ E g O't T~..~--
.aO~~ ~ -N
=~
But it costs too much! -You have to pay to
play.
• Did you really want that? (code for -
Looks like too much work or I don't have
the time! )
Why do you need that? -Because the
client asked for it.
1. Can a community or site owner submit more that one site?
Ye<, but each site will be considered separately a require its own application and fee. Note that a
site consists of parcels that are contiguous to one another.
2. Can we contact MS&B during the review process?
Yes, the MS&B project team will be interfacing with the site contact during the review phase.
3. Is there a minimum or maximum size limitation to a site?
No, as long as the sites consists of contiguous parcels.
~4. If a site is certified, what actions are required to maintain certification?
S+ta contact confirms accuracy of site information every 120 days
~~~~
...-- 1,1.1 .---_
i;~~ ~,, ae~elo~
cer
~`~l+.a^II111