2014 F l orida R U R AL E C ON OM IC D E V ELOP MENT S U MMIT - - PowerPoint PPT Presentation

2014 F l orida R U R AL E C ON OM IC D E V ELOP MENT S U MMIT

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Company Overview

OUR NETWORK

21,000 MILES

CARLOADS

6.5 MILLION 23 STATES

SERVE NEARLY

2/3 OF U.S. POPULATION $11.7 BILLION REVENUE

CSX Industrial Development Group

• Rail Site Selectors
• New or expansion

projects on CSX totaled

• ver 120 in 2013

– About 570 over last five years

• Customer investments

total $15 Billion since 2009

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2013 Customer Investments

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So what does “Shovel Ready” actually mean?

Favorabl e Region Long List Regions

Selected Location

Location selection is a process of elimination

Short List Cities / Sites

Location selection is a process of elimination…

Favorabl e Region Long List Regions

Selected Location

Location selection is a process of elimination

Sites need to improve their competitive positioning

To stay in the race for manufacturing plants…

Sites needing permitting, zoning, infrastructure, etc. are eliminated quickly

Short List Cities / Sites

Property readiness claims…

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As Advertised by the Broker

Don’t match up…

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As Seen on the Web Site

To reality!

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As Validated by our Site Consultant

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CSX Certified Rail-Served Sites

CSX Select Sites are the first premium, certified, rail-served sites for industrial development and expansion

Program initiated Spring of 2011 Austin Consulting is 3rd party administrator

Maintain strict high standard of certification (Best in class): criteria include

Size Access to rail services Proximity to highways Workforce availability Utilities Environmental and geo-technical standards Excellent branding and marketing campaign around the program

www.csxselectsite.com

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What characteristics are site selectors

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prospect companies looking for in an industrial site? I.E. How not to get eliminated!

Zoning is consistent with the desired use of the land

Ideally land is zoned industrial If the land is still zoned “agricultural” (for tax assessment purposes), it must be identified as “future industrial” on a comprehensive plan or future land use map

Zoning Ordinance (code)

Does your zoning code allow for a variety of industrial uses? Is your zoning code stuck in the 1960’s? Antiquated code often lists permitted uses that are not relevant today. Limit the amount of times that a permitted use or variances requires a public hearing (companies don’t like public hearings) Get familiar with your zoning ordinance – take time to read it

Keep schools, parks, and platted residential communities away from your future industrial land Permitting: be able to articulate the processes and how long they are going to take.

Site Readiness: Zoning

Ensure there are no known environmental conditions that restrict the use OR they are defined and mitigated AND Agreements with the respective agencies are complete Hire a trusted environmental engineer to guide the process- they will help you avoid landmines and rabbit holes:

Environmental Site Due Diligence includes: Paper trail (and blessing from) with the regulatory agencies:

• State Historic Preservation Offices (SHPO)
• U.S. Fish & Wildlife
• U.S. Army Corps of Engineers
• Phase I Environmental Site Assessment
• Wetland Delineation Study – a must if your site has any wetlands
• Soil borings (geotechnical) – provides an idea of what is underground

and soil conditions are known as well as solutions should the soil need compacting or additional soil brought in

Site Readiness: Environmental

All roadways connect to the site and intersections or curb- cuts are known and approved - no public hearings are required for the desired use!

If your access road is not installed, it needs to be permitted and the curb cuts approved Does your community require to enter into the Developments of Regional Impact (DRI) process with the State?

What are the ground water rights? Is the property is free and clear of liens or other encumbrances? Is there an agreed upon public price?

Site Readiness: Entitlements

Know your impact fees

Does your community give a break to businesses that create jobs? Or are new businesses just a wind fall opportunity to pay down municipal bond debt? Is there a mechanism to waive them as an incentive?

Site Readiness: Impact Fees

All utilities connect to the site Electric

Proximity to the substation is important – Florida has hurricanes Underground service strongly preferred

Natural Gas

It’s a luxury in Florida, if you have it, you have a competitive advantage

Water & Sewer

Know your limits! How much capacity do your water and wastewater treatment facilities have? Can you WWTP handle anything other than domestic waste (or are they permitted to accept anything other an flushed toilets and dishwater?) Are price breaks given to large water user?

Site Readiness: Utilities

Know your labor force demographics

Be prepared to discuss where your labor pool draws from.

Site Readiness: Labor

Protect your rail-served sites - they are from “very expensive” to “impossible” to replace Have both rail and non-rail industrial sites “Talk to me”

I will let you know if you have a rail-served site Provide an estimate of frequency of local service & a realistic assessment of on-site track layout feasibility

Site Readiness: Rail

PROTECT FREIGHT RAIL CORRIDORS

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• Create inventories of industrial sites to attract rail users. Development of

rail freight options will make a community more competitive.

• Use long term comprehensive planning opportunities to enhance

potential rail served locations for job creation.

• Connecting or converting a company to the CSX network when they

think rail is not an option. Your community may be in heavy trucking areas and benefit from companies that use rail.

• Many areas are challenged by topography which limits the number and size
• f sites which can be served with rail within a reasonable cost - so guard

those sites FIERCELY.

• Understand your region’s business environment to attract rail users.

To r e q u e s t o u r I n d u s t r i a l D e v e l o p m e n t q u a r t e r l y n e w s l e t t e r s e e m e a f t e r t h e p a n e l d i s c u s s i o n .

S t e p h a n i e L a n e , D i r e c t o r C S X R e g i o n a l D e v e l o p m e n t

s t e p h a n i e _ l a n e @ c s x . c o m

Strategic Sites-Duke Energy

Rural Summit, November 6, 2014

The New Duke Energy

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115 years of service 4,000 employees 1.7 million customers 35 counties 20,000 square miles

Florida

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Commitment to Economic Development

• In 2013, helped attract 11 companies

to Florida, generating or retaining more than 1,678 jobs and bringing in more than $64 million in capital investment

• Recognized among the nation’s ten

best utility companies in promoting economic development

How Do You Find The Right Site?

• Finding the best site
• Greenfields opportunities
• How it all started

LEO

OEM Suitability Model

OEM Suitability Map

OEM Site Inventory Map

LEO Shortlisted Site

EFI Shortlisted Site

Product Development

Strategic Sites Inventory

• Partnership
• EFI
• LEO
• Duke
• 23 County area (initial)
• Goals/Benefits

Suitability Model Phase

Suitability Model Phase

Site Inventory Process

Strategic Sites Inventory Duke Site Readiness Program

Duke Energy Florida Site Readiness

Duke Site Readiness-Moving Forward

• Topography
• Soils
• Geography
• Animal Species
• Zoning
• Land Use
• Utility(electric, water & wastewater) infrastructure
• Road Infrastructure-proximity to major roadways
• Telecommunications infrastructure

Community Workforce Transportation Project Start- Up Schedule Site Costs Site Characteristics

Duke Energy Site Readiness Program

Speed to Market

Competitive Site Selection Process

Questions?

Florida Rural Economic Development Summit

Jennifer Conoley Economic Development Gulf Power Company

9 sites in 5 Northwest Florida counties

Why Certified Sites?

• Site certification benefits:

– Prospects want to move fast – improves speed – Removes risk – Allows for effective pro-active marketing – Educates you on the site’s strengths and weaknesses – Your competition has certified sites – A catalyst for a more competitive community – Puts you in the real game

How it works

 Gulf Power hired McCallum Sweeney  Invitation to submit sites – private and public  Phase I – evaluation – split costs  Phase II – make improvements  Phase III – final certification – split costs  Marketing plan

Thank you!

Jennifer Conoley jconoley@southernco.com www.FloridaFirstSites.com