Site selection and incentive services colliers charlotte
1. COLLIERS INTERNATIONAL PG. 1
SITE SELECTION AND INCENTIVE
NEGOTIATION SERVICES
Presented By: Don Moss SIOR | CCIM
Colliers International
2. COLLIERS INTERNATIONAL PG. 2
LOCATION STRATEGY | The Basics
Business Climate Analysis
“How do locations compare?”
Real Estate Implementation
“What is our best real estate solution?”
Location Screening
“Where are our best logistical locations?”
Incentives Procurement
“Can we improve our bottom line?”
Business Needs Assessment
“What are our largest expenses?”
3. COLLIERS INTERNATIONAL PG. 3
Initiation & Needs
Assessment
Location
Screening
Business Climate
Analysis
Incentives
Procurement
Site Selection,
Incentives &
Real Estate
Implementation
LOCATION STRATEGY | Site Selection Process
>> Establish project team
>> Define business needs
and scope
>> Establish all viable
potential locations
>> Eliminate states and
regions
>> Quantify and rank key
location variables
>> Business climate &
operational analysis
>> Short-list of locations
(state/regions)
>> Investigate and
identify state and local
government(s), utility
and non profit economic
incentives opportunities
>> Create list of locations
>> Gain alignment on
location and facility
decision
>> Project “Go” decision
>> Detailed “Needs
Analysis”
>> Stakeholder inputs
>> Dialogue regarding key
issues
>> Project success
criteria
>> Update, collect, and
review all research
databases
>> “Screen out” locations
using high-level data
points; supply chain
analysis; demographic
filtering, key cost
factors; etc.
>> State and local
economic developer
research
>> Detailed business cost
comparisons
>> Real estate options
analysis
>> Regulatory & permit
reviews (where needed)
>> First-round location and
site visits
>> Primary research
and discussions with
state officials, local
and regional economic
developers and utility
provider representatives
>> Identification and
prequalification of
incentives options
>> Benefit analysis based
on usable incentive
programs
>> Detailed location and
site/property tours
>> Financial models
completed
>> Real estate offer(s)
>> Incentive negotiations
(best & final offers)
>> Final due diligence
>> Executive/Board
approvals
>> Business requirements
>> Key assumptions
>> Site search areas
>> Project Search
Schedule
>> Project Completion
Schedule
>> Reduce search territory
to initial or “long-list”
locations
>> Weighted rankings of
locations
>> Confirmation 6-8
locations in 2-3 states
qualified on “short-list”
>> Real estate options in
each location
>> Optimization of the
incentives packages
through a coordinated
negotiation strategy
>> Have communities
and states offer initial
packages
>> 2-3 locations & sites
selected as “finalists”
>> Final site selection
>> Real estate contracts
>> Procure, secure &
convey incentives
ObjectivesMajorSteps&DataOutcomes
4. COLLIERS INTERNATIONAL PG. 4
LOCATION STRATEGY | Incentives
The type and value of state and local economic incentives procured for a corporate project can be a significant
consideration when choosing new facility locations, or when selecting among existing business sites to inject new capital
or personnel.
When can companies pursue
government incentives?
What types of incentives are typically
available?
• Equipment Purchases
• Creating or Retaining Jobs
• Mergers & Acquisitions
• Building Purchases
• Lease Expansions
• Facility Renovations / Expansions
• Relocations
• Consolidations
• Cash Grants
• Free Land
• Tax Abatements
• Tax Credits
• Tax Exemptions
• Utility Rate Discounts & Riders
• Infrastructure Investments &
Improvements
• Employment Screening & Training
• Workforce Skills Development Grants
• Financing/Loan Guarantees
5. COLLIERS INTERNATIONAL PG. 5
LOCATION STRATEGY | Incentives Process
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Identify:
Identify opportunities to negotiate state and local
incentives, tax benefits, grant opportunities, energy
discounts and other creative opportunities and
structure our research findings to maximize their
potential value.
Quantify:
Quantify preliminary estimates of benefits and
outline the procedures and commitments
required to secure them. We will work closely with
the Clients tax advisors (internal or external) to
analyze the state and local tax implications and
present a summary of the qualified opportunities.
Optimize:
Optimize the incentives package by designing and
executing formal incentives negotiation strategy
based on the Clients guidance, and coordinate the
negotiation process from start to finish, utilizing the
company’s senior management time and influence
judiciously. The combination of incentives programs
will be structured to optimize the timing and type of
benefit delivered.
Procure:
Procure written agreements and commitments by all
parties and authorities so that senior management
decisions on project plans, schedules and budgets
can proceed based upon the net benefit available
from all future incentives based on best current
knowledge.
Secure:
Secure all available incentives programs with
each of the relevant authorities by preparing and
finalizing agreements, applications, and financing
documents, and coordinating their submission to,
and approval by, all authorities.
Conveyance & Administration:
Convey all documentation, correspondence, and
instructions relevant to the procurement of the
economic incentives and their ongoing maintenance
and compliance management. Administration of all
reporting and follow up required by state and local
agencies to receive a grant, tax rebates and other
incentive funding.
6. COLLIERS INTERNATIONAL PG. 6
WHY CLIENTS HIRE US
Staff Augmentation
Clients often have the right people and internal expertise
but lack the capacity to handle additional projects, and turn
to Colliers for support.
Expertise
Clients may lack an internal project team with the broad
geographic experience and unique skills for a complex
study or incentives assignment.
Confidentiality
We perform detailed business and real estate studies and
negotiate government incentives while maintaining client
anonymity.
Data and Tools
We maintain databases, information libraries, and
technology tools that are cost prohibitive for clients
to acquire for single projects.
Objective Review
We support our clients’ internal efforts with methods,
strategies, recommendations and objective review of their
own analyses and findings.
Community Relations
We promote our clients’ best interests and preserve a
positive local profile while working with government
entities and community interests.
Internal Mediation
We provide a process and forum where competing business
assumptions and objectives can be vetted and assessed to
produce the best overall decision.
Due Diligence
We fulfill our clients’ needs for independent, unbiased
consultancy when they must have a thorough, methodical
and auditable process.
Integrated Services
As part of a multi-national company, we have access to a
larger suite of real estate services that are available to
support client business needs.
Financial Savings
Whether by finding lower labor costs, reducing
transportation routes, identifying lower tax jurisdictions or
negotiating government incentives, we can demonstrate
real savings to our clients.
7. COLLIERS INTERNATIONAL PG. 7
SUCCESS STORY | Industrial
Type:
400,000 SF textile plant - existing building search
Challenge:
An international textile company had a need to locate a yarn spinning operating within the
southeastern United States. The requirement called for a facility measuring over 350,000 square
feet in a rectangular shape in a location offering competitive utility rates, aggressive incentives
and a skilled and/or trainable workforce. Additionally, the company was seeking a site where
employees had previous experience with textile skills.
Key Services:
• Detailed property search in four states for specific textile “process oriented” type facility
• Tax incentive research, negotiation and implementation
• Electric rate research and negotiation
• Training program negotiation and implementation
Value:
• Located and negotiated the most modern and best fit facility in multi-state area
• Secured multi-million dollar incentive package in the form of cash grants; property tax rebates
and electric utility riders
• Assisted with negotiation and implementation of the customized employee training plan
TEXTILE PLANT - SITE SELECTION
8. COLLIERS INTERNATIONAL PG. 8
SUCCESS STORY | Industrial
Type:
240,000 SF printing and packaging plant build to suit
Challenge:
An international multi-plant manufacturing firm that supplies cigarette hard packs, was
awarded the print and paper converting portion contract by RJ Reynolds Tobacco located in the
Winston-Salem area. The company needed to locate its new manufacturing operation in an area
where many of the former RJ Reynolds’ packaging employees would be willing to work.
Key Services:
• Identifying strategic communities and sites within 1.5 hours of their customer RJ Reynolds
Tobacco
• Detailed analysis of suitable property sites with appropriate utility infrastructure
• Tax research and incentives negotiation
Value:
• Obtained free site, grading allowance and other cash incentives
• Administration and implementation of incentives contracts and grants
• Identification and coordination of pre-bid meetings with qualified general contractors
PACKAGING & PRINTING PLANT - SITE SELECTION
9. COLLIERS INTERNATIONAL PG. 9
SUCCESS STORY | Industrial
Type:
80,000 - 120,000 SF titanium fabrication plant with expansion room for a foundry -
existing building
Challenge:
An international aerospace company was looking for a new fabrication and forging manufacturing
complex in a southeastern location in a community with a favorable labor climate. The building
needed to be 80,000 - 120,000 SF. The key drivers were: a site that could accommodate heavy
power requirements with a 20 mva connected load and 12 mva operating load, and 50 mcf per
hour of gas consumption. An existing facility needed to have at least 15-ton crane capacity, a
minimum of 60’ bay spacings and a minimum of 25’ clear ceilings heights.
Key Services:
• Detailed property search in four states for specific buildings and sites that could accommodate
a “very” heavy power and natural gas load
• Tax incentive research and negotiation
• Utility rate and load capability research
• Labor availability and skills research
Value:
• Secured a donated 80,000 SF shell building and an additional 20 acre site
• Identified a community who could screen, test and train their workforce for a highly skilled
TITANIUM FABRICATION PLANT - SITE SELECTION