Expert site selection firm McCallum Sweeney identified the junction of interstates 40 and 81 as an ideal location for a megasite

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Site selection firm McCallum Sweeney identified the site at the junction of interstates 40 and 81 as the ideal location for a megasite because of its highly-visible, accessible location and its strategic position in relation to other competitive megasites in the Eastern United States. Mark Sweeney, senior principal of McCallum Sweeney, presented about the thorough site evaluation process and the reasons the East Tennessee Regional Megasite has the recipe for success.

Evidenced by the five successful certified megasites in the Southeast and other development experience, Sweeney said the East Tennessee Regional Megasite has the potential to be a game changer for this region and bring thousands of jobs and millions in economic impact to the region.

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Expert site selection firm McCallum Sweeney identified the junction of interstates 40 and 81 as an ideal location for a megasite

  1. 1. Attracting Investment and Employment:Prepared Communities WinEast Tennessee Regional MegasiteCarson Newman CollegeJefferson City TNJanuary 15, 2103
  2. 2. Introduction toMcCallum Sweeney Consulting 2
  3. 3. MSC Clients SGL Automotive CarbonBoy Scouts of America Fibers LLC joint venture Kasle SteelAmerican Titanium Works 3
  4. 4. The Opportunities 5
  5. 5. U.S. Auto Sales Projections 6
  6. 6. Drivers for Future Auto Assembly Capacity Needs• Recovering Economy• Pent-up Demand• Exchange Rates• Natural/Man-Made Risks (Earthquakes, floods, strikes, etc…)• Growing Export Markets 7
  7. 7. Auto companies needing North America capacity in the next three years 2012 - 2014 2014 - 2015 8
  8. 8. Megasite Locations in the Southeast – Most Competitive Tier 1 Supplier (source ELM) 60 MILE RADIUS Existing OEM Plants MRM Competitive Megasites Missing Product 9
  9. 9. What Can a Community Do to be More Attractive? (Be prepared!) 10
  10. 10. Business of Economic Development Overview• Product Development • Organization – Leadership – Vision & Strategic Plan – Sites – Organization Design • Staffing / HR – Infrastructure • Programs – Human Resources – Funding • Education • Training • Sales & Marketing – Taxes – Market Segmentation – QOL – Product Knowledge – Community Assets – Customer Knowledge – Communication 11
  11. 11. Sites and Infrastructure• Severcorr Steel Columbus, MS• Rural community• Demanding site specs• Community proactively prepared – Site certification• $800 million• 450 jobs 12
  12. 12. 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 13
  13. 13. Overview of the Site Selection Process 14
  14. 14. 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 15
  15. 15. Site Selection ProcessPlanning Phase Phase 1 Phase 2 Phase 3 Phase 4• Conception • Alignment/ • Community • Negotiations • Prepare MOU• Feasibility Criteria Visits • Evaluation • Real Estate• Investment • Regional • Location • Site Due Transaction Decision Analysis Evaluation Diligence • Public • Areas of • Comparative • Internal Announcement Interest Analysis Selection of • Incentive • Request for • Finalist Preferred Capture Proposal Locations Location Support and/or Web Research • Candidate Locations 16
  16. 16. 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. 17
  17. 17. 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 18
  18. 18. Phase III – Negotiations• Incentives / Real Estate • Public announcement Negotiations (MSC and Client team) (MSC and Client team) – Align company and community – Property objectives – Site preparation – Press releases, events, etc. – Infrastructure – Utilities • Incentive capture support – Transportation – Training (MSC) – Taxes – On an as-needed basis – Permitting – Low cost financing 19
  19. 19. Certified Sites 20
  20. 20. TVA Certified Megasite Program Results to Date 21
  21. 21. Certified 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 22
  22. 22. Advantages of Certified Sites• An Opportunity to be More Competitive in Site Selection Projects – Know site’s strengths and weaknesses – Allows for effective pro-active marketing – Better re-active marketing • During site selection, have comprehensive and thorough information for rapid response – Better prepared to offer development assistance as may be needed – Present properties that offer a company a minimum development schedule and minimal risks 23
  23. 23. Technical Evaluation• Site • Infrastructure - Transportation – Developable, contiguous – Access to interstate acreage • Distance – Topography • Quality of route – Configuration • Quality of interchange – Property control – Site ingress / egress – Zoning – Proximity to commercial – Surrounding land use service airports – Prior site use – Proximity to ports – Due diligence – Rail service • Feasibility 24
  24. 24. Technical Evaluation• Infrastructure - Utilities – Electric – Natural Gas – Water – Wastewater – Telecommunications• Evaluate – Feasibility of providing service to the site (cost and schedule) – Capacity of lines and systems to provide adequate utility service 25
  25. 25. Marketing Evaluation• Community • Transportation – Proximity to business services – Interstate – Presence of existing industries – Airports – Job growth • Distance – Amenities (hotels, restaurants, • Number of carriers etc.) • Number of non-stop flights per day• Workforce • Project Start-up Schedule – Educational attainment – Manufacturing employment • Site Costs – Unionization • Site Characteristics 26

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