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GRE Economic Development
Tom Lambrecht
July 19, 2016
Economic development services
 Business attraction
 Data center site assessments
 Financing programs
 Communication
 ...
 Real estate mapping
 Transmission capacity studies
 Response coordination (manage timeline)
 Site visit participation...
Project Energy demand Industry In service date
Data Bank 10,000 kW Data center 2015
TMI Industries 300-500 kW Manufacturin...
 Plastics fabrication business
 St. Cloud, Minnesota
 Loan for new thermoforming machine
 Annual CIP savings – 305,500...
 Qualification of property
■ List of properties qualified through Deloitte process
■ Status update (available and develop...
Review process
 Industry consultants
■ Represent customer
■ Issue RFI’s
• Project Pine
• Golden Gate
• Project Volt
■ Per...
 Rural Health
 Precision Farming
 Manufacturing
 Just in time
inventory
 Customer service
Connectivity is the key
 Historically underserved
and small corporate
facilities
 Minneapolis/St. Paul saw
over 400,000 square feet of
data cent...
 Hired Deloitte consulting; worked with members
 Five sites selected for on-site evaluation
 Minimum criteria
■ 20+ acr...
 Currently certified
■ 37 acres - North Mankato
■ 80 acres - St. Cloud
■ 23 acres - St. Cloud
■ 41 acres - White Bear Tow...
 Sales tax exemptions on capital expenditures and
electricity
■ Investments of $30 million over 4 years
■ Sales tax rebat...
Recent MN data center successes
 Business Strategy
■ Make strategic
investments
■ Know the market
■ Leverage assets and
capabilities
 Sales Strategy
■ B...
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GRE Economic Development Initiatives

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GRE Economic Development Initiatives

  1. 1. GRE Economic Development Tom Lambrecht July 19, 2016
  2. 2. Economic development services  Business attraction  Data center site assessments  Financing programs  Communication  Scholarships
  3. 3.  Real estate mapping  Transmission capacity studies  Response coordination (manage timeline)  Site visit participation  GRE responded to 13 project RFI’s in 2015  Total electrical demand of 1,049 MW Business attraction
  4. 4. Project Energy demand Industry In service date Data Bank 10,000 kW Data center 2015 TMI Industries 300-500 kW Manufacturing 2016 Aubright 300 kW Manufacturing 2016 Hansen industries 600 kW Manufacturing 2016 New Flyer 300-500 kW Manufacturing 2016 Faribault Foods 4,500 kW Manufacturing 2017 Total 16,400 kW Economic development success 23 projects in the active pipeline for direct assistance
  5. 5.  Plastics fabrication business  St. Cloud, Minnesota  Loan for new thermoforming machine  Annual CIP savings – 305,500 kWh  Annual new energy sales – 272,300 kWh  Total annual energy sales – 4,113,340 kWh  100 employees  Stearns Electric Association # 4 customer  OEM Products, Powersports, retail products Project snapshot: Aubright
  6. 6.  Qualification of property ■ List of properties qualified through Deloitte process ■ Status update (available and developed)  Industry marketing  Respond to RFI’s ■ Coordinating with economic development organizations (EDO’s) ■ Develop electricity rate offering ■ MN tax incentives  Wait to hear… GRE’s current RFI process
  7. 7. Review process  Industry consultants ■ Represent customer ■ Issue RFI’s • Project Pine • Golden Gate • Project Volt ■ Perform site selection due diligence • Reduce from 100 to 1 site Location decision = avoiding risk
  8. 8.  Rural Health  Precision Farming  Manufacturing  Just in time inventory  Customer service Connectivity is the key
  9. 9.  Historically underserved and small corporate facilities  Minneapolis/St. Paul saw over 400,000 square feet of data center development since 2012  GRE has responded to 11 RFI’s since 2015  Emerging market in United States Current Minneapolis/St. Paul market
  10. 10.  Hired Deloitte consulting; worked with members  Five sites selected for on-site evaluation  Minimum criteria ■ 20+ acres ■ At least two fiber service providers ■ <100 miles from a major airport ■ >1 mile away from rail line ■ No chemical plants within 1 mile ■ No nuclear plant within 10 miles GRE certified site program
  11. 11.  Currently certified ■ 37 acres - North Mankato ■ 80 acres - St. Cloud ■ 23 acres - St. Cloud ■ 41 acres - White Bear Township  Sites in progress ■ 120 acres - Cannon Falls ■ 105 acres - St. Cloud ■ 80 acres - Lakeville Sites certified
  12. 12.  Sales tax exemptions on capital expenditures and electricity ■ Investments of $30 million over 4 years ■ Sales tax rebate on initial/replacement equipment ■ Sales tax exemption on electricity ■ Length of incentive: 20 years or 2043 Minnesota data center incentives
  13. 13. Recent MN data center successes
  14. 14.  Business Strategy ■ Make strategic investments ■ Know the market ■ Leverage assets and capabilities  Sales Strategy ■ Be proactive ■ Develop solutions ■ Create vs. respond Strategic approach

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