Site selection and incentive services colliers charlotte


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Site selection and incentive services colliers charlotte

  2. 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. 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. 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. 5. COLLIERS INTERNATIONAL PG. 5 LOCATION STRATEGY | Incentives Process 1 2 3 4 5 6 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. 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. 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. 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. 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