The Anatomy ofCompetition: CompetingCommunities Discuss the     Same Deal           1
About Atlas AdvertisingAtlas Advertising helps economic developers reach national and internationalprospect and site selec...
Questions We Will Answer1.   About New Belgium:     –   Why did this company decide to conduct an expansion?     –   Where...
View the slides, continue thedialogue • Continue the Conversation:    – Follow us on Twitter: www.twitter.com/AtlasAd    –...
Your Panelists                 Josh Birks                  Ben Wright        Economic Health Director        CEO, Atlas Ad...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout New Belgium:Why did the CompanyDecide to Condu...
New Belgium was trying toachieve the following objectives:1. Meet distribution / customer               3. Qualitative con...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout New Belgium: Where Didit Start in the Site Sel...
The process New Belgiumfollowed                                                         LOCATION ASSESSMENT AND EXECUTION ...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout New Belgium: How Didthe Company Compare andEva...
Location Intelligence Model#         Site selection priorities                     Model FAQ     Destination location--wit...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealFor this Project, Why DidAsheville Win?             ...
Asheville, NC – 163 Craven StreetStrengths• The “Fort Collins east of the  Mississippi” with year around  activities and t...
14
Chat your Question:Chat your question to Kris andwe‟ll post the answers on ourLinkedIn group.                      15
The Anatomy of Competition: CompetingCommunities Discuss the Same DealHow was this Deal Experiencedfrom the Perspective of...
Role: City of Fort Collins• The company has a long history  and a close relationship with the  City of Fort Collins.• New ...
Experience: The City of FortCollins‟                     18
Perspective: The City of FortCollins‟• Economic Development is  about influencing good  business decisions   – A heavy and...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealHow was this deal experiencedfrom the perspective of...
Role: Philadelphia Industrial Development CorporationPhiladelphia Industrial Development Corporation (PIDC)   – Philadelph...
Experience: Philadelphia IndustrialDevelopment Corporation • Philadelphia: “Smart City. Smart Choice.”     – Central locat...
Experience: Philadelphia IndustrialDevelopment Corporation• Response package   – Technical: Site conditions, utilities,   ...
Perspective: Philadelphia IndustrialDevelopment Corporation • Overcoming obstacles    – Demonstrating locations: • Updatin...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealHow was this deal experiencedfrom the perspective of...
Role: Asheville-Buncombe  County EDCApril 2011The first call:Real estate                                                  ...
Experience: Asheville-BuncombeCounty EDCHurdles:  – World Class Competition –    Apples to Apples?  – High profile clients...
Experience: Asheville-BuncombeCounty EDCPreliminary Site Concept (Perkins & Will Architects) and Aerial of Downtown Ashevi...
Perspective: Asheville-Buncombe County EDC• Lessons Learned   – Authenticity and „telling the Asheville story‟ (CEO  CEO)...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout the Market Today: Whatare the Drivers of Busin...
Trends in BusinessLocation Decisions in 2012• Information companies have gathered has remained  relatively constant.• The ...
Top Drivers of CompanyRelocation Today: Driver                      Number of Mentions   % Growth/Access to Markets       ...
How Have Those Criteria ChangedOver the Past Few Years?•   “Companies are not as reluctant and have the dollars to expand....
How Have Those Criteria ChangedOver the Past Few Years?• “They are willing to investigate in studies, but corporations hav...
The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout the Market Today: WhatCommunities See and Clos...
Highest Performers byMarket Size, 2011 Extra Large Market EDO:                Large Market EDO (Over 2,500,000 pop):      ...
How do I help my              For information, call:community make the most       303 292.3300 ext 232of its opportunities...
Steps you can take to helpyour community compete:1. Research and benchmarking  –   Knowing where you stand  –   http://Atl...
Chat your Answer:What is one thing that youlearned in today‟s webinar?                    39
Q+A      40
Thank You!                                Contact information:                                     2601 Blake Street, Suit...
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The Anatomy of Competition in Economic Development

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Jones Lang LaSalle deconstructs major economic development deal. Learn how 3 communities competed for the same $175 million economic development deal.

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The Anatomy of Competition in Economic Development

  1. 1. The Anatomy ofCompetition: CompetingCommunities Discuss the Same Deal 1
  2. 2. About Atlas AdvertisingAtlas Advertising helps economic developers reach national and internationalprospect and site selection audiences. We deliver branding, website development,GIS mapping, research, social media, and creative services professionally andwith a staff experienced in economic development.Our strategies bridge the gap between exhaustive strategic plans and focused,action that drives results. To further this practice, Atlas is spearheading the firstbenchmarking effort that compares results from communities all across the USand Europe.Featured clients: – State of Ohio – Alabama Power Company – Indy Partnership – Hoosier Energy – Right Place, Grand Rapids Michigan – State of Oregon 2 – City of Fort Collins – City of Richmond, VA
  3. 3. Questions We Will Answer1. About New Belgium: – Why did this company decide to conduct an expansion? – Where did it start in the site selection process? – How does a company compare and evaluate presentations from multiple cities? – For this project, why was Asheville selected?2. How was this deal experienced from the perspective of the headquarters City?3. How was this deal experienced from the perspective of a city that competed, but was not selected?4. How was this deal experienced from the perspective of the city that was selected?5. About the market today: – What are the drivers of business relocation and expansion today? 3 – What communities see the most deals, ranked by population size?
  4. 4. View the slides, continue thedialogue • Continue the Conversation: – Follow us on Twitter: www.twitter.com/AtlasAd – Tweet questions using hashtag #AskAtlas – Join Next Gen Economic Development Marketers LinkedIn Group • View and share the slides with your colleagues (available now): http://bit.ly/fQB6hC 4
  5. 5. Your Panelists Josh Birks Ben Wright Economic Health Director CEO, Atlas Advertising City of Fort Collins, CO benw@atlas-advertising.com jbirks@fcgov.com www.twitter.com/atlasad Ben Teague Guillermo Mazier Senior Vice Business Development, President/Executive Atlas Advertising Director of the Economic guillermom@atlas- Development Coalition advertising.com bteague@asheville www.twitter.com/atlasad chamber.org Kristian D. Bjorson, SIOR Mark Seltzer Managing Director Director of Development Jones Lang LaSalle PIDC 5 Americas, Inc. MSeltzer@pidc-pa.org
  6. 6. The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout New Belgium:Why did the CompanyDecide to Conduct anExpansion? WhatDrove It? 6
  7. 7. New Belgium was trying toachieve the following objectives:1. Meet distribution / customer 3. Qualitative considerations: demands on the East Coast  Consistent with culture and brand - environmentally and socially2. Identify location for a 300K barrel responsible brewing facility (Phase 1) with  Highly efficient & safe for an expansion potential to 600K barrels educated & capable workforce within (Phase 2) a walk or bike ride to work Close on real estate 4Q-2011, conduct 4. Quantitative considerations detailed design in 2012, commence construction 1Q-2013, ship beer 1Q-  150,000 to 300,000 square feet, plus 2015 expansion, on 10 to 20 acres with 75 to 125 employees for Phase 1 plus close proximity to workforce and 50 to 82 employees for Phase 2 customers $40M to $80M capital investment for  Annual utility consumption – 10M Phase 1 plus $40M to $60M capital investment for Phase 2 Kwh of electricity, 720K thermos of natural gas, 96 MG of water flow 7 volume
  8. 8. The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout New Belgium: Where Didit Start in the Site SelectionProcess? 8
  9. 9. The process New Belgiumfollowed LOCATION ASSESSMENT AND EXECUTION 12/1/10 1/1/11 2/1/11 3/1/11 4/1/11 5/1/11 6/1/11 7/1/11 8/1/11 9/1/11 10/1/11 11/1/11 Supply Chain Snapshot High Level Screen Location EliminationProject Steps Site Selection Taxes / Business & Economic Incentives Real Estate Acquisition Project Design & Construction 9
  10. 10. The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout New Belgium: How Didthe Company Compare andEvaluate Presentations fromMultiple Cities? 10
  11. 11. Location Intelligence Model# Site selection priorities Model FAQ Destination location--within 1 hour of a1 major urban center or a progressive Used CBSA tourist destination Created a cultural Index using Progressive climate - culturally, number from population that2 environmentally, politically, culinarily have a high propensity to go to plays, concerts and museums Used a ratio of water to land from3 Plentiful water supply USGS Proximity to a town so employees can4 bike to work, have access to services; or Brokerage proximity to commuter rail5 Utility availability and reliability iLocate Municipal development favorability6 BEI / Brokerage (zoning, permitting, fast-tracking) Used MRI data for population7 Vital lifestyle with a high propensity to exercise Previously developed site--able to8 redevelop a beautiful, old building--or a BEI / Brokerage naturally beautiful site Close to a major interstate and off9 ramp--or at least unfettered access to ilocate one 11 Temperate climate, suitable to natural10 Need definition from client ventilation11 Ability to have an influence BEI / Brokerage
  12. 12. The Anatomy of Competition: CompetingCommunities Discuss the Same DealFor this Project, Why DidAsheville Win? 12
  13. 13. Asheville, NC – 163 Craven StreetStrengths• The “Fort Collins east of the Mississippi” with year around activities and tourist destinations• Culture consistency with site being near the arts district for a walk and bike workforce• Right to work state• Moderate tax with low utility costs• Population growth area Property DescriptionWeaknesses • Approximately 19 acres across 3 separate• No direct flight to Denver parcel owners – French Broad River• Smallest market under consideration Group (6 acres), McLamb (1.5 acres) and• Need to assemble and purchase land Main Auto Parts (10.35 acres) • Urban place zoning to be rezoned to 13 commercial industrial
  14. 14. 14
  15. 15. Chat your Question:Chat your question to Kris andwe‟ll post the answers on ourLinkedIn group. 15
  16. 16. The Anatomy of Competition: CompetingCommunities Discuss the Same DealHow was this Deal Experiencedfrom the Perspective of theHeadquarters City? 16
  17. 17. Role: City of Fort Collins• The company has a long history and a close relationship with the City of Fort Collins.• New Belgium reached out to the City about a possible local expansion• After a brief discussion of the company‟s objectives, the City did not hear back, and assumed that the company was looking at locations elsewhere.• Once the deal was announced • Answered questions from the press reinforcing the business case for satellite locations 17
  18. 18. Experience: The City of FortCollins‟ 18
  19. 19. Perspective: The City of FortCollins‟• Economic Development is about influencing good business decisions – A heavy and perishable product requires short distributions lengths Influencing – Therefore, City assumed Economic Good Development Business expansion would eventually Decisions include satellite facilities• As the HQ City‟s focus remains maintaining a strong relationship“Expansion ultimately means continued success for New Belgium – this 19strengthens their role in our community”
  20. 20. The Anatomy of Competition: CompetingCommunities Discuss the Same DealHow was this deal experiencedfrom the perspective of thecompeting City? 20
  21. 21. Role: Philadelphia Industrial Development CorporationPhiladelphia Industrial Development Corporation (PIDC) – Philadelphia‟s city-wide economic development corporation – Founded in 1958 as a non-profit, joint venture between the City of Philadelphia and the Greater Philadelphia Chamber of Commerce – PIDC plans and implements real estate and financing transactions that attract investment, jobs, and tax bases to PhiladelphiaThe Navy Yard Former Naval Shipyard, closed in 1996 Mixed-use campus that includes office, industrial/manufacturing, and research and development sectors Over 120 companies with 10,000 employees by end of 2012 Major tenants include: Urban Outfitters, Inc., GlaxoSmithKline, Tasty Baking Company, Aker Philadelphia Shipyard, U.S. Navy (NAVSSES), Destination Maternity, Energy Efficient Buildings Hub (EEB Hub) 21
  22. 22. Experience: Philadelphia IndustrialDevelopment Corporation • Philadelphia: “Smart City. Smart Choice.” – Central location with unparalleled transportation and access – Smart and skilled workforce – 46.1 million people live within a 200-mile radius – Bicycle-friendly community – “Best Beer-Drinking City in America” including Philly Beer Week: 10-day celebration, featuring hundreds of festivals, dinners, tours, pub crawls, and tastings throughout the region • PIDC‟s role in “Project Jo” – Led recruitment of New Belgium Brewing on behalf of City of Philadelphia. Integrated City officials, Mayor, Governor‟s Action Team – Gathered project team including architect, developer, and engineer 22 – Assembled a financial incentive package
  23. 23. Experience: Philadelphia IndustrialDevelopment Corporation• Response package – Technical: Site conditions, utilities, access, etc. – General commerce, workforce, and demographics for the City and PA – Financing and incentives• Challenges – Major U.S. city – Urban environment – Not as much acreage as NBB preferred 23
  24. 24. Perspective: Philadelphia IndustrialDevelopment Corporation • Overcoming obstacles – Demonstrating locations: • Updating Master Plan for The Navy Yard • Philadelphia 2035 – Comprehensive plan to guide physical development for the next 25 beyond – Tool to implement zoning map revisions, effective August 22, 2012 – Educate and empower citizens to 24 an active role play – Making Philadelphia a more competitive place to do business
  25. 25. The Anatomy of Competition: CompetingCommunities Discuss the Same DealHow was this deal experiencedfrom the perspective of theselected City? 25
  26. 26. Role: Asheville-Buncombe County EDCApril 2011The first call:Real estate January 2012search September 2011 Sierra Nevada April 2012 Large NBB Delegation announcement announcement December 2011 July 2011 March 2012 NBB Delegation Limited RFP NBB Delegation Site narrowed to October 2011 “stockyard site” Traveled to Ft. Collins June 2011 Community Visit City Committed infrastructure aid NBB Delegation attended County assembled and Brewers Alliance Christmas controlled site through Party options February Transportation 26 Engaged Architect and studies informed City Legislation signed by engineer for pro bono work MOU Governor
  27. 27. Experience: Asheville-BuncombeCounty EDCHurdles: – World Class Competition – Apples to Apples? – High profile clients recognized in the market. • Consultant shows EDC real time tweet at Sept mtg. – Sierra Nevada project at the same time. Announcing before NBB – Site: Stream, Brownfield, landfill, on river, flood plain, floodway, urban heart of river arts district. 27
  28. 28. Experience: Asheville-BuncombeCounty EDCPreliminary Site Concept (Perkins & Will Architects) and Aerial of Downtown Asheville – showing urbanlocation of NBB site 1.5 mi from City Hall: 28
  29. 29. Perspective: Asheville-Buncombe County EDC• Lessons Learned – Authenticity and „telling the Asheville story‟ (CEO  CEO) – Confidentiality vs. Community Collaboration (100‟s of pro bono hours) – Understand what you control versus uncontrollable • Sierra announcement, workforce study. • Legislative change to benefit our clients and successful legislation• A collective win – River advocates – Community planners and neighborhoods, – Downtown/ river district 29
  30. 30. The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout the Market Today: Whatare the Drivers of BusinessRelocation and Expansion Today? 30
  31. 31. Trends in BusinessLocation Decisions in 2012• Information companies have gathered has remained relatively constant.• The time frame they are making decisions in has become dramatically shorter.• Companies have cash to make investments now – and they are doing so. Deal flow has been very high the last two years. 31
  32. 32. Top Drivers of CompanyRelocation Today: Driver Number of Mentions % Growth/Access to Markets 21 31% Lower Costs 14 21% Labor/Talent 11 16% Real Estate 6 9% Transportation/Logistics 6 9% Quality of Life/Amenities 3 4% Be Closer to Suppliers 2 3% Unions 1 1% Separate From HQ 1 1% Incentives 1 1% Investment Partnerships 1 32 1%
  33. 33. How Have Those Criteria ChangedOver the Past Few Years?• “Companies are not as reluctant and have the dollars to expand.”• “Lower costs is still tops.”• “Not very much.”• “Yes, but in different ways depending on use and industry.”• “Markets in general have been expanding more rapidly putting more emphasis on ability to develop project more quickly.”• “I think transportation cost have become more of a realized cost saving driver for companies, as well as lower employment numbers and higher investment in machinery and equipment.”• “Labor is first.”• “My clients have just not wanted to make a move until the economy or their markets started to turn around.”• “Somewhat stayed constant less about cost savings, more about gaining revenue not In our business of about the last 45 years this is typical.” 33
  34. 34. How Have Those Criteria ChangedOver the Past Few Years?• “They are willing to investigate in studies, but corporations have been hesitant to go forward with large expansion.”• “We have seen a strong transition from strategy related projects in 2008-2010, to expansion related projects.”• “Focus on cost reduction to maintain market share.”• “Increasingly important I would say the recession has not ended and that companies are still skeptical about the current administration and pending financial impacts adopted and pending regulations (health care, energy, etc).”• “Fewer deals.”• “There is still a magical something relocating to the west that appeals to many.”• “Transportation costs continue to increase and are becoming the biggest operating cost factor in some operations. This factor is also driving some of the Re-shoring operations back to the US from overseas.” 34
  35. 35. The Anatomy of Competition: CompetingCommunities Discuss the Same DealAbout the Market Today: WhatCommunities See and Close theMost Expansion and RelocationDeals, Grouped by populationSize? 35
  36. 36. Highest Performers byMarket Size, 2011 Extra Large Market EDO: Large Market EDO (Over 2,500,000 pop): (1,000,000 to 2,500,000 pop):Large Mid- Market EDO: Mid - Market EDO:(250,000 to 1,000,000 pop): (100,000 to 250,000 pop): Micro - Market EDO: Small - Market EDO: (Less than 25,000 pop): (25,000 to 100,000 pop): 36
  37. 37. How do I help my For information, call:community make the most 303 292.3300 ext 232of its opportunities withexpanding and relocatingcompanies? Guillermo Mazier Business Development, Atlas Advertising guillermom@atlas-advertising.com www.twitter.com/atlasad 37
  38. 38. Steps you can take to helpyour community compete:1. Research and benchmarking – Knowing where you stand – http://Atlas2012BenchmarkingSurvey.questionpro.com2. Branding and messaging – Any town USA vs. “Your Community”3. Business development – establishing relationships, making connections4. Economic development websites and technology5. Be ready to be evaluated, know your product and have the data to support it. 38
  39. 39. Chat your Answer:What is one thing that youlearned in today‟s webinar? 39
  40. 40. Q+A 40
  41. 41. Thank You! Contact information: 2601 Blake Street, Suite 301 Denver, CO 80205 Contact: Guillermo Mazier t: 303.292.3300 x 232 guillermom@atlas-advertising.com www.Atlas-Advertising.com LinkedIn Profile | LinkedIn Group | Twitter | Blog | Slidespace 41
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