Real Estate Development and Reuse (part 2), TN Basic Economic Development Course 2013

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Kingsley Brock
TN Dept. of Economic & Community Development

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  • Real Estate Development and Reuse (part 2), TN Basic Economic Development Course 2013

    1. 1. TN Basic ED Course 2013Real Estate Development & ReuseSITES and BUILDINGS
    2. 2. • The Internet and technology play a significant role –you are being looked at without your knowledge• Most projects start out looking for an existing building• Shovel-ready sites give a competitive advantageThe prospect is looking for a locationwith the fewest?????Site Selection Process
    3. 3. RISKS!Site Selection Process
    4. 4. Sample Consulting is working on behalf of a confidential client that seeks toidentify a community and site for a North American manufacturing operation.The search area for this confidential project includes a multi-state area. Thestates, counties and local/regional jurisdictions that receive this Request forInformation (RFI) have been qualified for the project through pre-screening.Estimated Project Investment:Our client is anticipating hiring 300 to 500 employees and investing $200 millionin capital, not including investments in the site and site development.ALL SUBMISSIONS SHOULD BE SENT DIRECTLY TO SAMPLE CONSULTING. SUBMIT THETOP THREE (3) SITES PER COUNTY ONLY. IF MORE THAN THREE SITES PER COUNTYARE SUBMITTED, ONLY THE FIRST THREE RECEIVED WILL BE REVIEWED. IT ISACCEPTABLE FOR ONE OR ALL OF YOUR THREE SITES SUBMITTED TO BE PROXIMIALLYADJACENT TO ONE OF THE COUNTIES APPROVED THROUGH THE PRESCREENINGPROCESS AND LISTED IN THE SET OF ELIGIBLE COUNITES (SENT TO YOU UNDERSEPARATE COVER).Project Sample
    5. 5. Key Project Drivers:• A labor force with the education and experience to support this operation• Access to reliable, high quality utilities and infrastructure• Proximity to a major interstate highway (within 10 miles)• Convenient access to a modern transportation network• A business and regulatory environment that will support the timelydevelopment of this project• Compatible setting, zoning (suited for manufacturing), and surroundings• Access to an airport with small parcel and cargo services stronglypreferred• Competitive overall operating, real estate, and utility costs (electric)• Competitive incentives and access to relevant training programs• Access to government agencies experienced with the attraction,development, permitting, and operations of distribution facilitiesThe RFI (Request for Information)
    6. 6. Please provide the following information on each of the available site(s) you are proposing:• Location, including address, community name, population, and distance to Interstate andappropriate airport (please provide airport name);• Map identifying site boundary and local and regional location;• Site size (acreage, etc.);• Date available;• Present use and user;• Past use(s) and user(s);• Surrounding uses;• Zoning (provide applicable ordinances, and verify suitability)• Photographs;• Map showing utility and road infrastructure servicing the site;• Depiction/description of known or potential easements;• Names of utility-service providers;• Site ownership, and demonstrable intent/willingness to sell;• Land asking price, indicating/reflecting market rate commissions;• Property tax rates, including millage rate and assessment ratio.The RFI (Request for Information)
    7. 7. Site Requirements:Suitable Available Site and Site SpecificationsThe primary requirement for an existing site to be suitable for Project Sample is the site’spotential for manufacturing. We are interested in evaluating only those sites that meet thiscriterion and are otherwise generally consistent with the specifications below.• Site Size:Minimum of 62 acres, and up to 76 acres (of useable acreage)• Dimensions:Rectangular/square site preferred, with a maximum length to width ratio of 1.5 to 1• Special Site Characteristics:Standard soil load bearing characteristics, no wetlands, flat terrainwith no hills, ravines or quarries. The site must have no known environmental concerns. Dualcarriage way access is preferred, wastewater treatment is necessary, and the adjoining usesmust be odor free• Building Size:400,000 sqft, expandable to 600,000 sqft. 75% for production, 15% for offices,5% for warehousing, and 5% for pilot plant / R&D• Ceiling height:Minimum 55’ to 60’ preferred• Car parking: 200 spaces, tentatively• Fire protection: ESFR sprinkler system
    8. 8. • Electric:2.23 million kWh/month usage, 24 hour operation. Electricityprimarily used for chillers, HVAC, compressors, and process equipment. Theload cannot be interruptible and a dual feed may be required• Water supply:Municipal water supply with dual 14” lines required. 400 milliongallons per year usage for boilers, process water, and as an ingredient.Water pressure must be constant. The company is willing to consider use ofa septic tank or other private disposal system• Wastewater:275 million gallons annually, will contain some clean in placedetergents• Natural gas:3.06 million therms annually, primarily used for boilers andHVAC. Service must be constant, natural gas with propane backup• Telecom:Fiber optic access; T-1 connectivity• Zoning:Compatible with manufacturing and distributionSite Requirements:Suitable Available Site and Site Specifications
    9. 9. • ECD launched the Tennessee Premier Sites program in Spring 2012 to certifyhigh-quality sites across the state through a respected national site selectionfirm• ECD will aggressively market Premier Sites to site selection consultants andcompanies, helping create a level playing field for all high-quality sites acrossthe state• Austin Group was selected for the project.Tennessee Premier Sites
    10. 10. What can be a deal breaker?Deal Breakers
    11. 11. 1. Infrastructure Costs2. Not having a site action plan3. Lack of answers and data and info4. Uncontrolled site – who owns it?5. Lack of community leadership6. Poorly maintained site7. Unknowns?Deal Breakers
    12. 12. Toyota, MS
    13. 13. Hyundai, AL
    14. 14. VW, TN
    15. 15. Questions?Questions?
    16. 16. Thank You!

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