Jonathan Gemmen Tuesday October 7 @ 10:15am-10:45am

1. Roundtable in the Desert
Scottsdale, Arizona
Jonathan Gemmen Senior Location Consultant Austin Consulting October 6-9, 2014

2. 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

3. Austin Consulting – Strategy to Implementation

4. 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

5. 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

6. 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

7. Current Site Certification Experience

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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

9. 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*

10. TVA Megasite Program

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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

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•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

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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?

14. Iowa City Area Shovel Ready Sites Program Best Practice Analysis

15. 15
Comparison Areas

16. 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. 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. 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. 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. 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. 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. 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. 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

24. End of Best Practice Analysis

25. 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

26. October 2014 26

27. 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

28. 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

29. 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

30. 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

31. September 2014 31
Eastwood Commerce Center ______________________________ Wood County, OH

32. September 2014 32
Lemoyne Substation:
•First Energy’s largest substation in Ohio is adjacent to the site.
Eastwood Commerce Center
Wood County, OH

33. 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

34. September 2014 34
151± acres
Eastwood Commerce Center - Wood County, OH
N
1,625,000 SF

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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

36. October 2014 36

37. CSX Select Site:
Belfast Commerce Centre
Richmond Hill, GA

38. Belfast Commerce Centre
Richmond Hill, GA
306 Acres

39. 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

40. Belfast Commerce Centre
Richmond Hill, GA
Certification required significant clearing and thinning of forested land.

41. 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.

42. Belfast Commerce Centre
Richmond Hill, GA
Identifying Pockets of Suitable Fill

43. Belfast Commerce Centre
Richmond Hill, GA

44. Belfast Commerce Centre
Richmond Hill, GA

45. Belfast Commerce Centre
Richmond Hill, GA

46. CSX Select Site:
INland Logistics Port – Kingsbury
LaPorte County, IN

47. INland Logistics Port - Kingsbury
LaPorte County, IN

48. INland Logistics Port - Kingsbury
LaPorte County, IN

49. INland Logistics Port - Kingsbury
LaPorte County, IN

50. 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

51. Questions?

52. Thank You
Jonathan Gemmen
Senior Location Consultant
Austin Consulting
6095 Parkland Blvd.
Cleveland, OH 44124
Phone: 440-544-2254
Jonathan.Gemmen@theaustin.com