Stacking the Deck in Your Favor: Tips for Getting Inside the Site Selectors Head

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Stacking the Deck in Your Favor Tips for
Getting Inside the Site Selectors Head
Community Survivor 3Michelle Marquette / Don
SchjeldahlThe Austin Company
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Austins Location Strategy Consulting
Mission assist clients in developing and
implementing location strategies for
manufacturing, distribution and office operations
Number, Location, Function of Facilities

• Food and Beverage
• General Manufacturing
• Aerospace / Aviation
• Publishing / Broadcasting
• Research and Development
• Pharmaceuticals
• Information Technology

Serving Industry for Over 60 Years
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Outline of Presentation

• Overview of the site selection process
• Preparing a competitive proposal - what you need
  to do in order to compete
• Community Survivors put your community to the
  test
• Lessons Learned maximizing your chances for
  winning the project

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Location Selection Process
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Elimination
Location Selection Process
Long List of Strategies / Location Alternatives
Process
Favorable Strategies / Regions / Candidate Cities
of
Short List Locations
Finalists
Selected Location
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Location Selection Process Looking for reasons
to eliminate communities from further
consideration
Evaluate Strategic Alternatives
Screen Evaluate Communities/Sites
Conduct Due Diligence
Negotiate Incentives
Acquisition / Lease Agreements
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Overview of the Site and Drivers

• How big is the market?
• What are we (Austin) chasing? What should you be
  chasing?
• How is the process changing for site selectors
  and what you can do about it?
• What is Certification and is it here to stay?

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How Big is the Market?


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Questions to ask Where are corporate investments
going? What companies make sense for me?
What Are We Chasing?
-
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Changing Nature of Location Decision Making
Successful ED organizations recognize and respond
to constant change in the investment decision
landscape
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Characteristics of Competitive Communities
Certification Gets a Community in the Game

• Inventory of Sites and Buildings
• Appropriate Utility Infrastructure
• Labor Force Ready to Work
• Community Support for Industry
• Professional Presentation

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Ready to Go Sites

• Mix of settings
• 1 to 100 acres
• Utility served
• Transportation access road and rail
• Suitable soils, drainage
• Proper zoning
• Free of contamination
• WILLING SELLERS

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Ready to Go Buildings

• Multi-function space, incubator space
• Clear height gt24 plus
• Lots of truck docks
• Ample room for vehicle circulation

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Design Standards Make for Good Industrial Sites

• Ingress/egress Sight lines, acceleration/
  decelerations lanes
• Roads - All season industrial quality road
• Drainage - Centralized storm water system
• Water Service - Looped water lines reduces
  insurance rates, avoids need for on-site water
  tank
• Design - Landscaping, architectural standards
• Safety - Fire fighting capability and
  distance/routing to station, fire fighter
  training and equipment
• Buffers - Minimize neighborhood impact (odor,
  dust, noise, traffic, light pollution, litter)

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Transportation
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Utility Services

• Potable Water
• Waste Water
• Electricity
• Natural Gas
• Communications

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Waste Water Treatment
Certification Considerations

• System capacity (current, future, rain event)
• Treatment capacity (BOD, COD, TSS)
• Service to site (line capacity, lift stations)
• Connection fees, costs and surcharges
• Quality rating of service provider

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Access to Reliable Electric Power is an Essential
Component of Business
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Electric Power Service
Certification Considerations

• Distance to sub-station(s)
• System capacity (reserve capacity)
• Condition of infrastructure
• Feasibility of dual feed,
• Cost of infrastructure improvements
• Surrounding power users
• Service history
• Incentives (rates, infrastructure)
• Quality rating of service provider

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Labor Force Considerations

• Site Consultants Document
• Local wage and benefit structure
• Recruiting practices
• Work schedules
• Work ethic
• Availability of skilled workers
• Availability of unskilled workers
• Labor/management relations
• Industrial mix/industrial history

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Certified Sites Are Ready for Development and
Have the Documentation to Prove It
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Certified Sites Are Ready for Development and
Have the Documentation to Prove It
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Certification is More than Just Sites
Creating a Business Friendly Community

• Successful industry retention program
• Fast-track permitting for new investment
• Well versed on federal, state, and local
  incentive programs
• Incentives tailored to meet the needs of
  individual businesses
• Local business participates in community
  organizations, events
• Active community programs include festivals,
  public art, recreation
• Community is in good condition including roads,
  public buildings, schools, parks
• BOARD MEMBER EDUCATION (BUY-IN)!!!

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Certify Your Community for Site Selector Visits
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When Projects Go Walking(and what YOU can do to
prevent it)
Prevention
Deal Killing Situation

• A REAL Retention Program means REALLY getting to
  know local businesses dig deep!

• Community has a DARK SIDE (Employer reports
  whisper campaign against him. Local company has
  mysterious rail derailments)

• Have a process in place that controls the
  transfer of property protecting community
  integrity

• Land price increased when client came back for
  community visit

• Everyone from your community involved in ED
  efforts should be trained in the fundamentals of
  business ethics

• Unethical behavior (ED director suggested
  special arrangement with county appraiser to
  lower inventory tax. Consultant cash gift of
  5,700 offered)

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When Projects Go Walking(and what YOU can do to
prevent it)
Prevention
Deal Killing Situation

• In front of outsiders present challenges as
  opportunities - talk about your plans for
  resolving problems

• Heavy water use project city manager/service
  director battled over conflicting views on
  community resources

(Hint have a plan)

• Keep stakeholders in-the-loop and demand they be
  engaged if they demand to be involved

• 3rd visit (2nd w/client) city was pressed for
  utility extension commitment mayor quipped, So
  tell me about your project

• Educate the community about the economic
  development PROCESS and stick with the program

• Picture tube plant needing clean rooms -
  community pushed old foundry as solution (board
  members building)

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When Projects Go Walking(and what YOU can do to
prevent it)
Prevention
Deal Killing Situation

• Educate the community about the importance of
  good customer service

• Negative attitudes dominate the town hotel
  clerk, Chamber receptionist, city manager shared
  a common sour demeanor

• Be prepared. Follow through with commitments

• Community/site visit agenda not developed by ED
  staff wasting consultants day

• Take control of the uncontrollable by putting a
  friendly and thoughtful face on negative
  situations have umbrellas at the ready, ease
  the weariness of travel with a food gift in the
  hotel

• I spent a week in that town one night Rainy
  weather, grueling travel experience it happens
  all the time

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Outline of Presentation

• Overview of the site selection process
• Preparing a competitive proposal - what you need
  to do in order to compete
• Community Survivors put your community to the
  test
• Lessons Learned maximizing your chances for
  winning the project

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The Site Selector RFP A Unique Opportunity to
Market Your Community
(Dont blow it!)
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Location Selection Process
Site Selector Issues RFP to Community
Evaluate Strategic Alternatives
Screen Evaluate Communities/Sites
Conduct Due Diligence
Site Selector Community Visit
Negotiate Incentives
Acquisition / Lease Agreements
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The Proposal is Your Opportunity to Create a
Lasting Positive Image of Your Community First
Impressions are Lasting
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Create a Clear Understanding of Where and Who
You Are
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Interpret Project Requirements and Customize the
RFP This Demonstrates Your Community Knowledge
and Removes Doubts About the Suitability of the
Community for the Project
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If Your Community is Not Shovel Ready You Will
Have Trouble With This
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Take Your RFP to the Next Level Demonstrate
Abilities to Expedite the Schedule
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Demonstrate Your Willingness / Ability to Share
Costs
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Selection Process More Information, Faster!
ED Attraction Branding and Websites
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Customized Responses to Inquiries
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Start to Influence the Location Decision by
Monitoring Who Views the Website and When
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Outline of Presentation

• Overview of the site selection process
• Preparing a competitive proposal - what you need
  to do in order to compete
• Community Survivors put your community to the
  test
• Lessons Learned maximizing your chances for
  winning the project

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Community Survivors 3

• Match Your Community and Your Skills
• Against the Site Selectors

Critical Eye
Will Your Community Survive to Win the Project?
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How the Game is Played(Hint the game simulates
the site selection process)

• Site selector describes the project
• Communities interested are asked to stand
• Candidates are screened by applying ever more
  stringent location criteria (if you cant meet
  the requirement you have to sit down)
• The process continues until there are two short
  listed communities
• Each finalist makes a 2 to 3 minute presentation
  to the site selectors (you have to be honest)
• Site selectors confer (privately) and then
  announce the SURVIVOR and why they were selected

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FabricatedMetals
Four Projects Up for Grabs
CallCenter
DistributionCenter
FoodProcessing
Community Survivors 3
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Project 1 Fabricated Metals Manufacturing
Facility

• Product Manufacture aluminum structural shapes
  (domes) for western states distribution
• Building 100,000 sf. steel framed structure with
  metal panel skin, 24 clear height, 6 truck docks
• Site 15 acres to support outside storage and
  expansion

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Project 1 Fabricated Metals Manufacturing
Facility
Employment 80 to 100 jobs including welders,
assemblers, material handling, office Wages
12.00 to 15.00 plus benefit package for
employee and family Investment
6-8,000,000 Timing Begin operation within 12
months
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Fabricated Metals ProjectCan You Meet Key
Location Requirements?

• 10 to 15 acre site in a fully served industrial
  park
• Sufficient workforce to meet current and future
  needs (min 5,000 population)
• Metal working tradition within the community
• Community college nearby with welding, industrial
  maintenance, and electronic controls programs
• Average manufacturing wage under 15.00/hour
• Incentive programs including reduced property
  cost (free land is good), site development
  assistance, recruitment and training

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Project 1 Fabricated Metals Manufacturing
Facility
and the winner is?
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Project 2 Major Financial Institution Call
Center

• Product Inbound call center for major financial
  institution
• Building 60,000 sf. Class B office building (or
  suitable structure) with dual telephone and fiber
  optic feeds
• Site 6 acres to support building, parking area,
  and green space

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Project 2 Major Financial Institution Call
Center
Employment 125 to 150 full-time jobs Wages
Average salary 27,500 plus benefit package for
employee and family Investment
5-6,000,000 Timing Begin operation within 9
months
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Call Center ProjectCan You Meet Key Location
Requirements?

• Existing 60,000 sf. office building with
  sufficient parking OR retail building to convert
  OR 6 - 8 acre site in office park or other
  business area
• Sufficient workforce to meet current and future
  needs (min 10,000 population)
• At least one existing call center existing in
  community
• Average customer service annual salary under
  27,000
• Commercial airport within 90 minute drive
• Incentive programs including training grants for
  new hires

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Project 2 Major Financial Institution Call
Center
and the winner is?
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Project 3 Food Processing Manufacturing Facility

• Product Produce line of refrigerated food
  products for distribution to Northwestern US
  markets (raw produce ingredients to be purchased
  locally)
• Building 80,000 sf food grade industrial
  facility
• Site 12 acres to support building, truck
  circulation and parking, and employee parking

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Project 3 Food Processing Manufacturing Facility
Employment 125 hourly plus 8 salaried Wages
Average hourly wage of 10.75/hour plus benefit
package for employee and family (shared
cost) Investment 13,000,000 Timing Begin
operations within 12 months (could double in size
within 3 years)
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Food Processing ProjectCan You Meet Key Location
Requirements?

• 10 - 12 acre site in fully served industrial park
  OR existing 80,000 sf. clean, food compatible
  industrial building (min clear height of 24)
• Community water and wastewater systems have
  available capacity for major new user
• Sufficient workforce to meet current and future
  needs (min 10,000 population)
• Unskilled or semi-skilled workers at anticipated
  wages of 10.75/hour
• Other food processing operation in community
• Incentive programs including reduced property
  cost (free land is good), site development
  assistance, recruitment and training

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Project 3 Food Processing Manufacturing Facility
and the winner is?
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Project 4 Retail Distribution Center

• Product Distribute consumer products nationally
  via LTL and contract carrier TL shipments Most
  inbound products imported from Asia
• Building 200,000 sf warehouse facility, 32
  clear height
• Site 20 acres to support building, truck
  circulation and parking, and employee parking

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Project 4 Retail Distribution Center
Employment 250 hourly plus 15 salaried Wages
Average hourly wage of 14.00/hour plus benefit
package for employee and family (shared
cost) Investment 20,000,000 Timing Begin
operations within 12 months
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Distribution Center ProjectCan You Meet Key
Location Requirements?

• 20 acre site in fully served industrial park
• Interstate or highway access within 10 miles of
  site
• Rail access from Seattle or Portland to local
  intermodal yard
• Sufficient workforce to meet current and future
  needs (min 15,000 population)
• Starting wages for semi-skilled workers
  anticipated to be 9.50/hour
• Incentive programs including reduced property
  cost, site development assistance, recruitment
  and training

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Project 4 Distribution Center Facility
and the winner is?
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Outline of Presentation

• Overview of the site selection process
• Preparing a competitive proposal - what you need
  to compete
• Community Survivors put your community to the
  test
• Lessons Learned maximizing your chances for
  winning the project

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Circular Logic in Site Selection

• Site consultants assess location alternatives
  (states, regions, communities)

• Communities that best meet project requirements
  (have the fewest flaws) win the projects
• Site consultants gravitate to communities who
  have performed well in the past

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What Site Consultants Look for in Communities

• Up-to-date and Forward Looking communities that
  frequently asses strengths and weakness and
  adjust strategies accordingly
• Regional Approach communities that take a
  regional approach to coordinate marketing and
  attraction efforts
• Provide Professional Assistance communities
  that follow a high standard when working with
  site consultants and company prospects
• Data Rich communities that invest in robust
  data resources

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What Site Consultants Look for in Communities

• Know Themselves communities that keep site,
  city and regional maps up-to-date (on top of
  growth)
• Involve the Real Estate Community communities
  that make brokers, property owners and developers
  part of the team
• Educated Stakeholders communities that involve
  board members, politicians, government officials,
  business community
• Professional communities that are responsive,
  punctual, honest, thorough in all dealings
• Good Restaurants ED professional who prefers a
  local dive to Applebees and isnt afraid to
  admit it

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Economic Development is a Hoot! Have Fun!
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Michelle M. Marquette Location Consultant The
Austin Company Facilities Location
Group Michelle.Marquette_at_TheAustin.Com (440)
544-2682
Don C. Schjeldahl Vice President The Austin
Company Facilities Location Group Don.Schjeldahl_at_T
heAustin.Com [phone]