Economic Development Site Selection Seminar:
Is your Community Ready?
– Part 2
Buckeye Power th
Economic Development Site Selection Seminar
Ed McCallum, Senior Principal

Site Selection Factors
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Strategic Planning - Growth/Location
Center of Market Analyses
Regional Definition
Competition Analysis
Pro-Forma Analysis
Breakeven Analysis
Recurring and Nonrecurring Cost
Comparisons
Optimization Studies
Sensitivity Analysis
Project Financing
Alternatives
Risk Analysis
Financial
Site
Marketing
Development
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Work Ethic/Labor Climate Assessments
Competitive Wage Surveys
Productivity Assessments
Qualitative Evaluations
Training Resources
Demographic Survey
Legal Environment
Human
Resources
Logistics /
Transportation
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Product Distribution Evaluation
Raw Material Identification
Comparative Transportation
Cost Analysis
Multi-Model Scenario Studies
Negotiations
Topographic Surveys
Environmental Conditions
Boundary Surveys
Zoning Status/Modification
Access and Site Planning
Permitting
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Manufacturing/
Production
Infrastructure Suitability
Project Scheduling Sensitivity
Support Services Assessment
Expandability/Flexibility Determinations
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Other
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Real Estate Negotiations
Incentive Negotiations
Site Acquisition
Purchase Options
Livability, Quality of Life Assessment
Factor Ratings (Kepner-Tregoe Decision Making)
Market Assessment
Engineering/Construction/Cost Comparisons

Competitive Site Selection Screening Process
Candidate Locations
Define Search Region
- Center-of-Market Analysis
Regional Screening
- Project Criteria (Musts & Wants)
Proposal Screening
Comparative Assessment
Decision-Making Analysis
Risk Analysis
Site Decision

Changes in Metrics for Site Selection

North American Pre-Site
Transportation
Infrastructure
Market Logistics
Wind Energy
Support
Cost
Suppliers/Companies
Major Cities
Companies
Suppliers
North American Pre-Site
Category
Factor Assessment
Market Logistics
Transportation
Infrastructure
Market Logistics
North American Pre-Site
Infrastructure
Business Climate
Wind Energy
Support
Transportation
Infrastructure
Labor
Market Logistics
Cost
Wind Energy
Support
Cost
GIS Screening Process Area of Interest
Suppliers/Companies
Major Cities
Companies
Suppliers
Suppliers/Companies
State A
Area of Interest 1
Area of Interest 2
State B
Area of Interest 1
State C
Area of Interest 1
Major Cities
Companies
Suppliers
Determination of Areas of Interest
State D Area of Interest 2
Area of Interest 1
State C
Area of Interest 1
Area of Interest 2
Area of Interest 3
State D
Area of Interest 1
2
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1
3
6
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State A
Area of Interest 1
Area of Interest 2
State B
Area of Interest 1
State C
Area of Interest 1
Area of Interest 2
Area of Interest 3
State D
Area of Interest 1

Site Selection Process – Phase I
• Finalize Areas of Interest
• Issue request for proposal
– Defines project and information needs
• Desktop evaluation of proposals
– Screen against project criteria
• Milestone Meeting I
– Determine Candidate Communities
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Phase I – What should you be doing?
• Have a great website – can prospects find you quickly and find out what they need to know about your community?
• Image building – are you on the top of decision-makers’ minds in your key targeted industries?
• Relationship marketing – do we know you? Do we know your community?
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Site Selection Process – Phase II
• Site/community visits
– Conduct physical inspection and site data verification
– Determine site readiness
– Meet with community leaders
• Mid-Phase Adjustment
• Client team site/community visits
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Site Selection Process – Phase II (Site Conditions)
• Location
• Configuration
• Topography
• Access
• Zoning
• Neighboring land use
• Environmental
• Ownership
• Construction feasibility
• Transportation Infrastructure
• Utilities
• Acquisition cost
• Site development cost
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Site Selection Process – Phase II (Operating Conditions)
• Labor market
– Availability
– Quality/work ethic
– Wages/benefits
• Training resources
• Education resources
– Higher education
– Vocational education
• Utility services
– Reliability
– Costs
• Taxes
– Income, sales, property
• Leadership
• Community acceptance
• Incentives
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Site Selection Process – Phase II (Living Conditions)
• Attractiveness
• Physical conditions
• Movement/congestion
• Housing
– Availability, costs
• Recreation
• Social/Cultural
• Education
– Facilities
– Achievement
• Medical/health care
– Facilities/capabilities
• Shopping
• Hotel/meeting space
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Site Selection Process – Phase II
• Milestone Meeting II
– Review comprehensive location analysis
– Select Finalist Locations
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Phase II – What should you be doing?
• Meet the deadlines
• Know your properties and be prepared to answer detailed questions
• Provide backup documentation as requested
• Provide support for multiple site visits
• Be prepared to provide a lot of information and data
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Site Selection Process – Phase III
• Incentives/Real Estate
Negotiations
– Property
– Site preparation
– Infrastructure
– Utility rates
– Training
– Taxes
– Permitting
– Low cost financing
• Financial analysis
• Comparative evaluations
– Risk
– Other issues
• Final site due diligence
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Site Selection Process – Phase III
• Location selection and communication to Finalist Locations
– Internal decision process
– Manage message to all candidates
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Phase III – What should you be doing?
• Be responsive
– Have relevant subject-matter experts on hand to answer questions
• Be professional
– It can be intense, but don’t let it get to you
• Be creative
– Opposition research
• Go the extra mile…
– …but don’t overstep the boundaries
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Phase III – What should you be doing?
• Incentives
– Know your weaknesses – make sure your incentives mitigate those weaknesses
– Be prepared for customized incentive evaluations and a lot of “what if” scenarios
– Don’t offer what you can’t deliver
• Incentive Due Diligence
– Be prepared to provide backup documentation on incentives – specifically on process and legal authority
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Site Selection Process – Phase IV
• Prepare development agreement/MOU
• Public announcement
– Align company and community objectives
– Press releases, events, etc.
• Incentive capture support
– On an as-needed basis
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Phase IV – What should you be doing?
• Be prepared to work quickly through numerous versions of the
MOU
• Provide on-the-ground assistance with any public meetings to formally award project incentives
• Support the company on their preferred public announcement plans
• Be consistent – your previous incentives commitment should match your commitment in the MOU
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Site Evaluation Considerations
• Companies are extremely deadline driven
– Once they identify a market opportunity, they don’t want to take much time
– Looking for sites with the fewest risks and ready for development
– Has influenced the site selection process
• MSC has evaluated countless industrial sites on behalf of corporate clients in a variety of industries
– Sites must meet the minimum client requirements with as little risk as possible
• Site evaluation starts with the RFP process
– Proposals are requested for properties that meet the minimum criteria, with as many “want” factors as possible
• Recommendations:
– Submit a completed proposal according to the deadlines
– No need to submit a property that doesn’t meet the minimum requirements
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Site Evaluation Considerations
• Be prepared to respond to numerous questions related to the following:
– Property
– Transportation
– Utilities
– Environmental
– Permitting
– Other
• Employment
• Education/training
• Taxes
• Development fees
• Emergency protective services
• Community/quality of life
• Incentive opportunities
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Site Evaluation Considerations - Property
• Location
– Inside city limits, rural location with annexation necessary
– Industrial park with covenants, greenfield
– Foreign trade zone
• Size and configuration
– Adequate acreage, shape, dimensions
• Ownership/control (including mineral rights)
– City or economic development entity owned or optioned
– Private landowner(s) with willingness to sell
– Clear title required
• Previous use
– Agriculture, golf course, razed industrial facility
• Existing structures on site
– Barns, underground storage tanks, above ground tanks
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Site Evaluation Considerations - Property
• Asking price - negotiable is not a price!
• Topography
– Elevation change for developable acreage
– Site preparation cost estimate
– Sinkhole risk
• Impediments to development
– Rights-of-way (ROW)/easements
– Bodies of water
– Flood zone
– Runway protection zone
– Cemeteries
– Inadequate zoning
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Site Evaluation Considerations - Property
• Zoning
– Current zoning and future zoning upon annexation, if applicable
– Process and timeline to rezone, if necessary
– Height limitations
– Building coverage limitations
– Landscaping requirements
– Noise restrictions
– Incompatible neighboring zoning or land use if no zoning in place
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Site Evaluation Considerations - Transportation
• Transportation Infrastructure
– Road
• Site access
• Transportation route for trucks (including weight limits) and distance to closest east/west and north/south interstates
• Transportation route for trucks (including weight limits) and distance to closest 4-laned divided highway
• Necessary road improvements
– Rail
• Distance to extendable rail siding and indicate if ROW controlled
• Confirmation that rail carrier can service the property
• Estimated cost and schedule to extend rail infrastructure
• Weekly schedule for switching service
• Service limitations due to height, width, schedule, etc.
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Site Evaluation Considerations - Utilities
• Utility infrastructure
– Electric
• Distance to adequate voltage service
• Estimated cost and schedule to extend adequate service, if necessary
• Distance to closest substations
• Estimated cost and schedule to extend dual electric service, if required
– Natural gas
• Size, pressure, capacity of line serving site
• Distance to adequate service line, if not adjacent to site
• Estimated cost and schedule to extend adequate service, if necessary
– Water
• Size, pressure, capacity of line serving site
• Distance to adequate service line, if not adjacent to site
• Estimated cost and schedule to extend adequate service, if necessary
• Permitted capacity of water treatment system, average utilization, and peak utilization
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Site Evaluation Considerations - Utilities
• Utility infrastructure “continued”
– Sewer
• Size, pressure (if not gravity), capacity of line serving site
• Distance to adequate service line, if not adjacent to site
• Estimated cost and schedule to extend adequate service, if necessary
• Permitted capacity of wastewater treatment system, average utilization, and peak utilization
– Telecom
• Distance to adequate voice/data service line, if not adjacent to site
• Estimated cost and schedule to extend adequate service, if necessary
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Site Evaluation Considerations - Environmental
• Environmental due diligence
– Phase I Environmental Site Assessment
• Plus Phase II, if recommended
– Wetlands delineation
• Plus U.S. Army Corps of Engineers Jurisdictional Determination
– Protected species study
– Historical/archaeological study
– Geotechnical investigation
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Site Evaluation Considerations - Permitting
• Air quality status
– Attainment, non-attainment, partial attainment for six criteria pollutants
• Ozone
• Carbon Monoxide
• Particulate matter
• Lead
• Sulfur dioxide
• Nitrogen dioxide
• Permitting process and timeline
– Air
– Erosion control
– Building
– Other
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Site Evaluation Considerations - Other
• Employment
– Major employers
– New projects, recent closings and downsizings
– Labor management relations
– Wage rates
• Education/training
– Primary
– Secondary
– 2-year and 4-year
– Industry training programs
• Taxes
– Local (property, sales)
– State (corporate income, sales)
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Site Evaluation Considerations - Other
• Development fees
– Plan review, building permit
– Impact fees
• Emergency protective services
– Fire
• Distance, response time
• Resources available
• International Service Organization (ISO) rating
– Police
• Distance, response time
• Resources available
– Ambulance/EMT
• Distance, response time
• Resources available
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Site Evaluation Considerations - Other
• Community/quality of life
– Climate
– Housing
– Medical
– Crime
– Cultural
• Incentive opportunities
– Income tax credits
– Property tax abatement, tax increment financing
– Sales tax exemptions/refunds
– Transportation and utility infrastructure
– Utility rates
– Low cost land
– Grants - site preparation, equipment, etc.
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Site Evaluation Considerations - Other
• Incentive opportunities (continued)
– Training
– Fee waiver - permits and utility tap fees
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Ed McCallum
Senior Principal
McCallum Sweeney Consulting
550 S. Main Street - #550
Greenville, SC 29601
864-672-1600
864-672-1610 (fax) emccallum@mccallumsweeney.com
www.mccallumsweeney.com