Entergy Teamwork Arkansas Annual Luncheon February 9, 2005 Automotive Site Selection Process
26
Entergy Teamwork Arkansas Annual Luncheon February 9, 2005 Automotive Site Selection Process Presented by Dr. Buzz Canup Canup & Associates, Inc.
description
Entergy Teamwork Arkansas Annual Luncheon February 9, 2005 Automotive Site Selection Process. Presented by Dr. Buzz Canup Canup & Associates, Inc. Location and Site Selection A SYSTEMATIC AND PROVEN PROCESS. PHASE 0: PRE- PROJECT ANALYSIS. PHASE I: MACRO ANALYSIS. PHASE II: MICRO - PowerPoint PPT Presentation
Transcript of Entergy Teamwork Arkansas Annual Luncheon February 9, 2005 Automotive Site Selection Process
Entergy Teamwork ArkansasAnnualLuncheonFebruary 9, 2005
Automotive Site Selection Process
Entergy Teamwork ArkansasAnnualLuncheonFebruary 9, 2005
Automotive Site Selection ProcessPresented by Dr. Buzz Canup
Canup & Associates, Inc.
Presented by Dr. Buzz Canup
Canup & Associates, Inc.
PHASE I: MACRO ANALYSIS
PHASE 0: PRE-PROJECT
ANALYSIS
PHASE II: MICRO ANALYSIS
PHASE III: FINALNEGOTIATIONS
Location and Site Selection A SYSTEMATIC AND PROVEN PROCESS
EVERY ECONOMIC
DEVELOPMENT PROJECT IS
DRIVEN BY A “NEED!”
THE “NEED” ESTABLISHES
PROJECT CRITERIA
TWO TYPES OF PROJECT CRITERIA
“MUSTS”
AND
“WANTS”
“Must” Criteria
Criteria
1. Property Size
2. Rail Available
3. Airport - 1 hour
4. Water Available
5. Gas Available
Yes
Yes
No
No
Yes
• Are absolute for success• Can not be compromised
Go/No Go
Screen
Alternative
Eliminated
“WANT” CRITERIA•IMPORTANT!!! BUT NOT ABSOLUTE
•Willing to concede in one area to gain in another
Criteria
1. Labor Size
2. Operating Cost
3. Logistics Cost
4. Incentives
5. Competitor
Locations10 9 8 7 6 5 4 3 2 1
Most LeastImportant Important
Typical “Musts” for Assembly Plants
• Labor
• Competitor Location Avoidance
• Transportation
• Site & Infrastructure
• Air Quality Status
Typical “Wants” for Assembly Plants
• Recruitment & Training
• Acceptable Recurring Costs
• Acceptable Investment Costs
• Risk Minimization
• Competitive Incentives
The Cold Hard FactsAbout Site Location
Searches• DEFINE
• DELINEATE
•DISCRIMINATE
• Eliminate
Evaluating MEGA Project Sites
What Is the Objective?
Eliminate?
Define How to Make it Work?
Spend Whatever It Takes?
SITE CONSULTANT’S JOB:
FIGURE OUT WHY A SITE WILL NOT WORK
ECONOMIC DEVELOPER’S JOB:
FIGURE OUT HOW TO MAKE THE SITE WORK
Typical Site Factors
• Size, Configuration & Control
• Environmental & Geotechnical Conditions
• Utilities, Zoning & Neighboring Land Use
• Ingress & Egress
NISSAN & MISSISSIPPI
AN EXAMPLE
OF A
MEGA PROJECT SUCCESS STORY
NISSANNISSAN
$930 M Investment$930 M Investment
4,000 Jobs4,000 Jobs
1.5 M Sqft Facility1.5 M Sqft Facility
250,000 Vehicles/Year250,000 Vehicles/Year
MISSISSIPPIMISSISSIPPI
$295 M Investment$295 M Investment
InfrastructureInfrastructure
Pad Ready SitePad Ready Site
Custom IncentivesCustom Incentives
The CommitmentsThe CommitmentsPhase I Announcement Phase I Announcement November 9, 2000November 9, 2000
The CommitmentsThe CommitmentsPhase II-A AnnouncementPhase II-A AnnouncementJune 24, 2002June 24, 2002
NISSANNISSAN
$500 M Investment$500 M Investment
1,300 Jobs1,300 Jobs
1.0 M Sqft Addition1.0 M Sqft Addition
150,000 Vehicles/Year150,000 Vehicles/Year
MISSISSIPPIMISSISSIPPI
$68.5 M Investment$68.5 M Investment
Infrastructure UpgradesInfrastructure Upgrades
Site Development GrantSite Development Grant
Extended IncentivesExtended Incentives
Total CommitmentsTotal CommitmentsPhase I & II-APhase I & II-A
NISSANNISSAN$1.43 Billion Investment$1.43 Billion Investment
5,300 Jobs5,300 Jobs
2.5 M Sqft Facilities2.5 M Sqft Facilities
400,000 Vehicles/Year400,000 Vehicles/Year
MISSISSIPPIMISSISSIPPI$363.5 M State Investment$363.5 M State Investment
$ 24.6 M Federal Highway Funds$ 24.6 M Federal Highway Funds
$ 17.0 M Federal Highway Funds$ 17.0 M Federal Highway Funds
$ 20.0$ 20.0 M County Investment M County Investment
$415.1 M Total$415.1 M Total
Mississippi Investments by CategoryMississippi Investments by Category
Category Phase I Phase II-B TotalsCategory Phase I Phase II-B Totals
Site & R-O-W AcquisitionSite & R-O-W Acquisition $40.0 $40.0 $0.0 $0.0 $40.0$40.0
Site DevelopmentSite Development $40.0 $40.0 $15.0 $15.0 $55.0$55.0
Roads & HighwaysRoads & Highways $30.0 $30.0 $2.0 $2.0 $32.0$32.0
Water, Sewer, Gas Pre-treatment Water, Sewer, Gas Pre-treatment $42.0 $42.0 $18.0 $18.0 $60.0$60.0
Transportation Cost Off-setTransportation Cost Off-set $28.0 $28.0 $10.0 $10.0 $38.0$38.0
Recruit & TrainingRecruit & Training $80.0 $80.0 $23.5 $23.5 $103.5$103.5
University – CAVSUniversity – CAVS $28.0 $28.0 $0.0 $0.0 $28.0$28.0
Advertising & MarketingAdvertising & Marketing $5.0$5.0 $0.0 $0.0 $5.0$5.0
Administration & MiscellaneousAdministration & Miscellaneous $2.0 $2.0 $0.0 $0.0 $2.0$2.0
TotalsTotals $295.0 $295.0 $68.5 $68.5 $363.5$363.5
Federal Highway FundsFederal Highway Funds $24.6 $24.6 $17.0 $17.0 $41.6$41.6
County BondsCounty Bonds $20.0 $20.0 $0.0 $0.0 $20.0$20.0 Grand TotalsGrand Totals $339.6 $339.6 $85.5 $85.5 $415.1$415.1
IMPACT OF NISSAN ON MISSISSIPPI2001 - 2025
C umul ati ve A dj us ted (Futur e V al ue) P ayout vs . T ax C ol l ec ti ons
$ -
$ 200, 000, 000
$ 400, 000, 000
$ 600, 000, 000
$ 800, 000, 000
$ 1 , 000, 000, 000
$ 1 , 200, 000, 000
2001 2004 2007 201 0 201 3 201 6 201 9 2022 2025
ADJ USTED ACCUMUL. PAYOUT COLLECTED TAXES
Break-Even Point
2007
NISSAN PHASE IBREAK EVEN
A break-even point during 2007…when revenues of the projectexceed cost to the State
A break-even point during 2007…when revenues of the projectexceed cost to the State
$$
TOTAL TAXES TO MISSISSIPPI
2005 $ 63,390,040
2010 $258,971,506
2020 $727,629,412
By 2025, a total of nearly $1 billion in quantifiable taxes will have been contributed to the state treasury by Nissan Phase I.
NISSAN PHASE IREVENUES
Questions&
Answers
Questions&
Answers
