KAED Conference: Regionalism

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People, Process and Product

KAED CONFERENCE: REGIONALISM

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Why InSite – The Voices in our Heads!

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• Bausch and Lomb• BorgWarner• Caterpillar• CertainTeed• Chicago Pneumatic Tool• Colgate-Palmolive• DuPont• Eastman Kodak• Fluor• Freightliner• Fuji• General Electric

• General Motors• Gerber Products• IAMS Foods• Levi Strauss• Mercedes-Benz• Michelin• Nanolife Technologies• Navistar• Philip Morris• PPG Industries• Sumitomo Sitix• Taiwan Semiconductor• Volkswagen

EXAMPLE SITE SELECTION CLIENTS


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• American Electric Power• APEG• Atlanta, TX• Birmingham, AL• Camden, AR• Kentucky Power• Fargo, ND• Forth Worth, TX• Grainger County, TN• Graves County, KY• Greenville, NC• Indy Partnership, IN• Kentucky Power

• Lee County, VA• Louisiana Department of Commerce• Lowndes County, MS• Lyon, NV• Myrtle Beach Regional Economic

Development Alliance• North Carolina’s Southeast• Northern Alabama Industrial

Development Association• Pekin, IL• Sacramento, CA• Shreveport, LA• Taney County, MO• Tucson, AZ

EXAMPLE ECONOMIC DEVELOPMENT CLIENTS


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• What does Site Selection mean?

− Company chooses one location out of many for their capital and job investment

• What does Economic Development mean?

− Being the one location chosen for the investment in capital and jobs (tax base and putting unemployed individuals to work)

• Do you have the operational and functional basics to bring jobs and capital investment to your community?

Key Questions for Today

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Client’s Frame-of-MindBecome the CEO for General Electric Choosing Next U.S. Site

• A multi-million dollar RISK ADVERSE decision.

• Mission: Find the best site within 5 states.

• Best of the best with no compromise.

• Report to a board of directors.

• Impacts possibly hundreds of people’s jobs within the company.

• Impacts her / his job.

Need for You to Have an Out-of-Body Experience

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• Words that Get the Client’s Attention:

− Excess sewer capacity.

− Excess water capacity.

− Electric capacity.

Baseline Expectations of the ClientThat YOU Speak Their Language

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• Words that Get the Client’s Attention:

− Attainment Zone.

− Clean Phase 1.

− Regional population and workforce numbers.

The New Normal-Baseline Expectations of the ClientThat YOU Speak Their Language

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• Words that Lose the Client’s Attention:

− I don’t know the excess capacities.

Even worse: “what does that mean?”

− City and county population and workforce numbers.


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• Words that Lose the Client’s Attention:

− Quality of life.

− Recreation.

− “We assure you, we will get it there”.

The New Normal-Baseline Expectations of the ClientThat YOU Speak Their Language

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• Elimination – motivates the entire process and it is due to efficiency. Typically 200+ submissions.

• Product is this first round of elimination.

• Product is the most powerful elimination tool.


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• Customized On-line Site Selection – Phase 1; Websites are the first window into your world by the client and 90 percent don’t speak the client’s language.

- No “real” product data available.

- City and county data creates great risk for elimination.

- Local names for industrial park, sites, buildings, etc. cause you to miss out on a great deal of projects on the front-end.


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• RFIs have become computation models:

- They are really fill-in-the-blank tests on your community and product.

- If you can’t fill them out and use Excel, you eliminate yourself.

• Confidentiality is a deal-killer.


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• Schedule – if your team can’t mobilize as fast as the company – you’re out; schedules are much shorter putting the focus where it should be – RADICAL PACE.

− Project completion timeframes have shortened from 9 months to 3 months.

• No wining and dining; No golf – they are out.


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• A written, formalized program of work / business plan.

• Budget to allow for ample personnel (minimum of 3).

• Business Retention and Expansion Program.

Baseline Expectations of the Client

Program investment is indicative of E.D. Commitment

YOU Have an E.D. Program that can Handle Their Projects

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• Stand-alone E.D. Website.

• Product and Infrastructure Strategies (short- and long-term; pipeline sites).

• Formalized local incentive policy – even if there are none to be granted.

Program investment is indicative of E.D. Commitment

Baseline Expectations of the ClientYOU Have an E.D. Program that can Handle Their Projects

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• The bar has completely changed – it’s Way higher!

− No viable product; No Client! (and no, all the great labor in the world won’t matter).

− Drastically more competitive.

− Can find what they are looking for so there is no need for compromise.

− Everyone has a fantastic Quality of Life.

Baseline Expectations of the ClientYOU Have Product that can Handle Their Projects

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Must Haves for your sites to be client-ready:

• In an industrial park with covenants.

• At least 30 acres.

• Outside the100-year flood zone.

• Industrial Zoning or Park Covenants.


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• To the industrial park boundaries: Sewer lines and

- Excess sewer capacity of at least 200,000 gpd.

• To the industrial park boundaries: Water lines and

- Excess water capacity of at least 200,000 gpd.


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• To the industrial park boundaries: Electric lines and

- Excess electric capacity of at least 2 MW.

• Natural gas lines to the industrial park boundaries.

• Fiber infrastructure to the industrial park boundaries.


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Must Haves” for your sites to be client-ready:

• Completed and clear status archeological study.

• Completed wetlands delineation.

• Documented price.


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• Surrounding uses manufacturing / industrial.

• 1 mile from:

− Residential subdivisions.

− Schools.

− Recreation centers / parks.


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• 1 mile from:

− Daycares.

− Retirement / assisted living.

− Correctional facilities.

− Goats and graves.


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Must Haves for your buildings to be client-ready:

• 1 mile from:

− Daycares.

− Retirement / assisted living.

− Correctional facilities.

− Goats and graves.


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Must Haves” for your buildings to be client-ready:

• Over 85% of all projects begin with an existing building search

• Clear height of at least 28 ft.

• Column spacing of at least 40 x 40

• Less than 15 years old


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• Have a 6” floor – poured for a spec

• Paved office area parking and entranceway (spec)

• Don’t fall for the virtual building – the client doesn’t

• 10 percent office space


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• Expansion capabilities to double the size of facility

• Paint the exterior if necessary

• One floor

• Minimal interior walls


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Must Haves for your buildings to be client-ready:

• At least 5 dock doors and 3 drive-in doors

• Not a former special use

• No pits

Having Product that is Ready Now to Handle Their Project


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• What is excess sewer capacity? In volume, total permitted capacity minus current daily usage to the park boundaries.

• Is not knowing a fatal flaw? Yes!

• What is excess water capacity? In volume, total permitted capacity minus current daily usage to the park boundaries.

• Is not knowing a fatal flaw? Yes!

• What is a fatal flaw? Site characteristic(s) that eliminates a site from project / location consideration.

Ability to Respond To RFIs Completely and Concisely


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• Will points be deducted if my electric rate is high? No!

• Will points be deducted if my utility rates are left blank? Yes!

• Should I include a quality of lifepiece even though it was not requested? No!

Baseline Expectations of the ClientAbility to Respond To RFIs Completely and Concisely

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• Must know excess capacities!

• Must be able to complete an exhaustive RFI.

• Dedicated staff focusing on research and support in order to effectively and efficiently respond to detailed RFIs.

• Make no excuses. Always error on the side that any late response, no matter the personal or professional situation, will be eliminated.


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• Rigid and relentless! Unyielding!

• Concise and specific answers.

• Provide only what is asked for in the requested format.

• No flash drives or videos.


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• No fluff.

• Seeks and destroys – eliminates risk.

• Must give a response in the RFI. Any cell lacking a response receives a score of 0.

• The response of N/A receives a score of 0. Give an explanation.


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• Unknown or don’t know is unacceptable. It receives a “0”.

• The response of “see attachment, see above or see page 3” receives a score of “0”. The community must interpret the data. The consultant / company will not take time to “read through” then process.

• Client wants to know the answer, community has to be the source.

• Spell check the RFI before submitting to consultant / client.


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• Priority participants: Economic Development Director, existing industry representative, utility providers, state project manager, regional project manager and local official responsible for negotiating and approving incentives.

• Limit the number of officials and only incorporate allies when strategically necessary.

• Have your local incentive package ready to offer.

The Ability to Professionally Close the DealBaseline Expectations of the Client

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• Don’t discuss your political persuasion.

• Don’t talk about your hobbies or your personal life.

• Don’t profess to know the company -if it’s confidential.

• Don’t discuss your or anyone else’s religion.

Baseline Expectations of the ClientThe Ability to Professionally Close the Deal

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• Don’t ever say to the client “catch me up on this project”.

• Don’t ever use your cell phone / smartphone.

• Do practice with each member that participates in the client visit on what to say and not to say.

• Don’t ever forget to ask for the sale!!


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• Don’t say I hate technology.

• Don’t have a wimpy handshake – practice with someone who has a commanding one.

• Do pre-plan your route.

• Do start the community welcome with an existing industry person.


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• Don’t start the community welcome with a politico or high ranking E.D. person.

• Do briefly explain your community vision.

• Do know that community upkeep and gateway signage matters.

• Do appreciate that downtown image makes a difference.


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• Do know the names and employment levels of all employers you pass-by while driving.

• Don’t encourage loose lips - one drink limit with the client.

• Don’t fall asleep at any point during the meeting –get some coffee (or someone might take your picture).

• Don’t GD the consultant.


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• Do visit companies that have visited your location.

• Don’t do red carpet tours; Do visit consultants and clients on their turf.

• Don’t provide videos or CDs ever – RFI or visit; Doanswer all the questions on the RFI.

• Don’t send fruit, cookies, and most other gifts.

• Do email information on product with real data.

Definite Dos and Don’ts

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• Do include leadership and stakeholders in training on best-in-class economic development practices.

• Local advertising is a waste of money.

• 90% of the communities do not get the message right on their collateral and sales materials.

• Billboard, really? Don’t!

Definite Dos and Don’ts

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• Having the ability to respond in the beginning controls your fate – not having it gets you eliminated.

• Having viable product controls your fate –not having it gets you eliminated.

• Understanding that all your work and focus will be on the “gap” positions you to win.

• Honesty won’t get you eliminated but dishonesty will get you black-listed.

Takeaways

Economy & Finance

KAED Conference: Regionalism