Wyoming Business Council’s Industrial Site
Evaluation and Certification Program
October 9, 2013
Mark Sweeney, Senior Principal
Lindsey Myers, Senior Consultant
Amanda Taylor, Consultant
The Main Thing To Remember
Attracting investment and jobs is more
competitive than ever…
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The Main Thing to Remember
… And being prepared creates
competitive advantage.
3
Introduction to McCallum Sweeney Consulting
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MSC Clients
Boy Scouts of America
American Titanium Works
Kasle
Steel
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SGL Automotive Carbon
Fibers LLC joint venture
MSC Clients – Economic Development
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What Can a Community Do to be More
Attractive?
(Be prepared!)
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Business of Economic Development
Overview
• Organization
• Product Development
– Vision & Strategic Plan
– Organization Design
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Leadership
Sites
Infrastructure
Human Resources
• Education
• Training
– Taxes
– Quality Of Life
– Community Assets
• Staffing / HR
• Programs
– Funding
• Sales & Marketing
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Market Segmentation
Product Knowledge
Customer Knowledge
Communication
Product Development:
Sites and Infrastructure
• Basic Need for Growing Companies
• “Dirt Won’t Do”
– “Property” does NOT equal “Site”
• Location Decision Demands Speed
– Site selection and facility start-up
• Be Prepared – maintain a portfolio of ready, available sites
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Sites and Infrastructure
• Severcorr Steel
Columbus, MS
• Rural community
• Demanding site specs
• Community proactively
prepared
– Site certification
• $800 million
• 450 jobs
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Organization
Funding
• Funding
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Secure
Reliable
Adequate
Long term
Broad participation / broadly supported
Flexible and discretionary
• Avoid too much “earmarking”
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Sales and Marketing
Customer Knowledge: Fundamental Characteristics
• Profit Driven
– Investment for purpose of return
• Deadline Driven
– Both the site selection and the project
• Competitive
– Multiple location options
• Comprehensive
– Complex decision involving most functional areas
• Risk Averse
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Sales and Marketing
Market Segmentation
• Investment and Jobs from Outside
– Recruitment
• Additional Jobs and Investment from Inside
– Expansion / retention
• New Investment and Jobs from Inside
– Entrepreneurial development
• Be Prepared – Position for All Segments
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Sales and Marketing
Communication
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Public Relations and Advertising
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Events
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Trade shows, industry conferences
Face to Face
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Electronic and print media
Get prospects to your place
You go to prospect’s place
Electronic Communication
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Effective web site
Social media strategy
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Overview of the Site Selection Process
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Competitive Site Selection Screening Process
Define Search Region
- Center-of-Market Analysis
Regional Screening based
on Project Criteria
RFP & Proposal Screening
Property Visits / Comparative
Assessment
Negotiations / Financial Modeling
Risk Analysis
Location Selection
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Site Selection Process
Planning Phase
• Conception
Phase 1
Phase 2
Phase 3
Phase 4
• Community
Visits
• Negotiations
• Prepare MOU
• Feasibility
• Alignment/
Criteria
• Evaluation
• Investment
Decision
• Regional
Analysis
• Location
Evaluation
• Site Due
Diligence
• Real Estate
Transaction
• Areas of
Interest
• Comparative
Analysis
• Request for
Proposal
and/or Web
Research
• Finalist
Locations
• Internal
Selection of
Preferred
Location
• Candidate
Locations
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• Public
Announcement
• Incentive
Capture
Support
Phase II – Field Competition
• Physical Conditions
– Sites, infrastructure
• Operating Conditions
– Labor, education/training, utilities, taxes
• Living Conditions (QOL)
– Housing, medical, education, leadership
– Appearance, congestion, culture & rec.
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Phase II – Community Visits
• Industry and Community Leaders
– Existing industry and businesses
• Private interviews
• Most important source of information
– Community leaders
• Elected and private leaders
• Represent community and government
• Subject to “managed access” to prospect
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Role of Incentives
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Role of Incentives in Economic Development
• Part of overall economic development strategy
• Designed to support your development goals by:
– Meeting the needs (and influencing the location decision) of
companies
– Enhancing the strengths of your location
– Mitigating the weaknesses of your location
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Role of Incentives in Site Selection
• Incentives are Important If and When
– They impact the prospect’s decision
– Differentiate one location from another
– Increase in importance as the decision process proceeds
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Final Thought on Incentives
• Incentives Do Influence the Final Decision
– Impact the capital investment decision model
– Timing is critical
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Site Certification
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Why Certify Sites?
• Companies are Very Deadline Driven
– Once market opportunity identified, company does not want to take
much time
• In selecting location
• In getting up and running
– Looking for sites ready for quick development
– Has influenced the process of site selection
– Communities with ready or certified sites have competitive
advantage
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What is Site Certification?
• Site Certification is a designation that a site meets certain
readiness criteria
– Criteria are based on location needs of private sector companies
– There is no national standard for site certifications
• Site Certification is a trend that is growing rapidly
– Driven by speed-to-market pressures on companies
• Site Certification is an initiative being undertaken by various
groups with a stake in economic development
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State and regional organizations
Utility providers
Individual developers
Etc.
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What is Site Certification?
• MSC believes that that there are three key attributes that are the
basis of site readiness required by a site certification program:
– AVAILABLE
Site really is for sale or lease, with established terms and conditions
– FULLY-SERVED
If all infrastructure is not already at the site, then at least detailed
plans with schedules and price tags have been developed
– DEVELOPABLE
Environmental and other related assessments (and mitigation, if
necessary) are complete
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What is Site Certification?
• A well-designed site certification program is:
– Realistic: Based on the due diligence necessary for projects
– Rigorous: Development projects are exhaustive, a site certification
process will be as well
– Educational: An opportunity to better understand the siting process
and to gain knowledge of a site’s strengths and weaknesses
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The Importance of Site Certification
• Attracting investment and jobs is highly competitive, and being
prepared creates a competitive advantage
• Company timeframes are getting shorter
– Site selection
– Start-up
• Communities need to be prepared with sites that are ready for
development
– At the end of the day, companies do not build facilities in
communities, they build them on sites
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Benefits of Site Certification
•
•
•
•
•
Allows for effective pro-active marketing
Prepares you for better re-active marketing
Educates you on the site’s strengths and weaknesses
Prepares you to offer development assistance as may be needed
Speeds up development schedule by having due diligence
completed
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Site Selection Process and Certification
Define Search Region
- Center-of-Market Analysis
Regional Screening based
on Project Criteria
RFP & Proposal Screening
Property Visits / Comparative
Assessment
Negotiations / Financial Modeling
Risk Analysis
Location Selection
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When Certification Paid Off
• Severcorr Steel
Columbus, MS
• Rural community
• Demanding site specs
• Community proactively
prepared
– Site certification
• $800 million
• 450 jobs
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Overview of Wyoming Business Council’s
Industrial Site Evaluation and Certification
Program
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Program Objective
• To develop a portfolio of certified sites that will make Wyoming
more competitive in site selection projects
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Phases (Round 2)
• Program Kick-off (Phase I): November 2013 – March 2014
• Evaluation (Phase II): April - September 2014
– No outside engineering assistance required
– Evaluation phase is conducted prior to embarking on full site
certification to allow for discontinuation if a fatal flaw is identified
– Site Evaluation does not equal Site Certification
• Certification (Phase III): September 2014 – September 2015
– Engineers will be needed to complete any utility extension plans,
environmental due diligence, etc.
– All required due diligence studies must be completed
– Participants have one year to complete Phase III
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Certification Categories
• Wyoming Business Council’s Industrial Site Evaluation and
Certification Program is designed with six categories
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Small Site
Medium Site
Large Site
Super Site
Business Park
Industrial Park
• Infrastructure requirements (utility, highway, etc.) are scaled for
each categories
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Site versus Park
• Site
– An industrial site is defined as a property that is appropriate for a
single industrial user, meaning there are no impediments to
development or mitigation for any known impediments can be
accomplished in less than 90 days.
• Park
– A park is defined as property that is appropriate for multiple industrial
users, meaning that the total acreage is subdividable into multiple
parcels. While there may be impediments to developability within the
park (streams, roads, utility easements, etc), the park will have
multiple developable, contiguous acreages identified and will have the
assets necessary to support industrial facilities.
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Certification Category Criteria
Total
Contiguous
Acreage
Minimum
Developable
Acreage (%)
Rail
Required
Highway
Access
Water
(gpd)
Wastewater
(gpd)
Natural Gas
(mcf/month)
50,000
40,000
Not required
<25
100%
No
State
standards for
truck access
Medium Site
25-249
20-2001
(80%)
No
State
standards for
truck access
150,000
100,000
10,000
Large Site
250-499
200-4001
(80%)
No
State
standards for
truck access
300,000
200,000
15,000
Super Site
500+
400+1
(80%)
Yes
10 miles4
500,000
400,000
25,000
Total
Acreage
Minimum
Developable
Acreage
Rail
Required
Highway
Access
Water
(gpd)
Wastewater
(gpd)
Natural Gas
(mcf/month)
50+
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No
State
standards for
truck access
75,000
50,000
Not required
100+
203
No
State
standards for
truck access
300,000
200,000
15,000
Small Site
Business
Park
Industrial
Park
Note
1. Developable acreage must be at least 80% of total acreage. (For example, a 250-acre site must have at least 200 contiguous, developable acres).
2. Business park must have at least one 5-acre, contiguous, developable parcel.
3. Industrial park must have at least one 20-acre, contiguous, developable parcel.
4. Interstate or 4-lane highway
Process Overview
1. Complete and Submit a Application of Intent
2. Receive Phase II Site Evaluation Materials
1.
2.
3.
4.
Complete and Submit a Phase II Evaluation Application
Receive Initial Feedback via Site Visit Letter
Conduct Site Visit
Receive Notification of Selection Status / Invitation to Proceed
5.
6.
7.
8.
9.
Complete and Submit a Phase III Certification Application
Receive Feedback via Follow-up Letter
Provide Follow-up Information
Receive Notification of Certification Decision
Announcement Event or Press Release
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Process Details
1. Review Program Overview and Application of Intent
1. Complete and Submit Application of Intent
– MSC will be available to answer questions
– Application of Intent must be submitted by March 31, 2014
– MSC is available to review Application of Intent prior to
December 1, 2013 planning grant application deadline
3.
Receive Phase II Evaluation Materials
– The MSC team will distribute the Site and Community Questionnaire
and Items Required for Certification by the end of April 2014
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Process Details
4. Complete and Submit a Phase II Evaluation Application
– MSC will provide participants with the Site and Community
Questionnaire and Items Required for Certification
– Completed applications must be submitted by June 13, 2014
– Proposals must be submitted to both MSC and WBC (electronic only
to WBC)
– A check must accompany the submission to MSC
Category
Total Acreage
Phase II Fee
Small Site
<25
$5,500
Medium Site
25-249
$6,500
Large Site
250-499
$7,500
Super Site
500+
$10,000
Business Park
50+
$6,500
100-249
$6,500
250-499
$7,500
500+
$10,000
Industrial Park
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Process Details
5.
Receive Initial Feedback
– MSC will provide a letter indicating items that will need to be
addressed during the site visit and may request additional information
– Letters will be issued in July
6. Site Visit
– The visit will be conducted similar to visits made for site selection
projects, and will include both MSC and WBC personnel
– Site visits are planned for August 2014.
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Process Details
7.
Notification of Selection Status
– The MSC Team will contact applicants to provide notification of
whether they have been selected to move forward with Phase III
– Notification is scheduled to occur September 2014
– Sites that are not chosen to move forward with Phase III will receive:
•
•
•
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Letter from MSC indicating site’s status
Report on site’s strengths and weaknesses
Recommendations for further improvements on the site
List of potential target industries
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Process Details
8. Complete and Submit a Phase III Certification Application
– MSC will provide participants with letter inviting them to proceed
with Phase III
– Completed proposals must be submitted by September 2015
– Proposals must be submitted to both MSC and WBC (electronic
copy only to WBC)
– A check must accompany the submission to MSC
Category
Total Acreage
Phase III Fee
Small Site
<25
$10,500
Medium Site
25-249
$11,500
Large Site
250-499
$12,500
Super Site
500+
$15,000
Business Park
50+
$11,500
100-249
$11,500
250-499
$12,500
500+
$15,000
Industrial Park
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Process Details
9.
Receive Feedback
– MSC will provide a letter indicating items that need further
clarification and/or additional documentation (site certification will
be contingent upon completing information requests generated
during review of the Phase III Application)
10. Provide Follow-up Information
– MSC will work with communities to ensure documentation is
received
– All follow-up information must be submitted within three months
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Process Details
11. Receive Notification of Certification Decision
– MSC will issue a letter indicating site status to each participant
– Notification will occur in the 4th Quarter 2015
– Upon certification, applicants will receive:
• Letter from MSC indicating site’s certification including certification
expiration date
• Report on site’s strengths and weaknesses
• List of potential target industries
12. Announcement Event or Press Release
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Business Ready Community (BRC)
Planning Grants
• Site Evaluation and Certification are eligible activities under the
Business Ready Community (BRC) Planning Grant Program
• BRC Planning Grants are available for Phase II (Site Evaluation)
and Phase III (Site Certification) of the Site Evaluation and
Certification Program
• Communities interested in applying for BRC Planning Grants must
submit an application by the December 1, 2013 deadline
• For more information about the BRC grant program, contact Dave
Simonsen at (307) 777-2813
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The Main Thing to Remember
Attracting investment and jobs is more
competitive than ever, and being prepared
creates competitive advantage.
50
Questions?
51
MSC Contact Information
Mark Sweeney
Senior Principal
Lindsey Myers
Senior Consultant
msweeney@mccallumsweeney.com
lmyers@mccallumsweeney.com
Amanda Taylor
Consultant
ataylor@mccallumsweeney.com
McCallum Sweeney Consulting
550 South Main Street, Suite 550
Greenville, SC 29601
(864) 672-1600
www.mccallumsweeney.com
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