User Solutions for Brownfields

NATIONAL BROWNFIELD CONFERENCE 2011

Location Selection and the “Right Site”Connecting Communities and Brownfield Properties to End Users

April 5, 2011

© 2011, CWS Consulting Group LLC

INTRO

DU

CTION

TO LO

CATION

STRATEGY

What is Site Selection?

Are we selecting a site,….

….Or a home for a business

Location Strategy

Business Goals

Workforce/Talent

Business Environ-ment

Logistics and AccessAll-In Costs

Internal and External Partners

Intangi-bles

Location In a

Business Context


THE EVALU

ATION

PROCESS

The Location Process allows companies to define their business needs and then narrow the list of candidates based upon best-fit. A business-based methodology matches companies to locations that will meet their needs for the long-term.

A Business-Based Process

FinalNegotiations

andLocationSelection

Planning and Strategy

CostModeling

Field Validation

Preferred and Alternate Location(s)

LocationScreening

InitialScreening

Def ined Strategyand Evaluation Criteria

Universe ofLocation Candidates

Short-List of Location Candidates


Key questions:

Which operations are taking place at which location in the current configuration

Proximity to key partners or clients Logistics and shipping concerns Key labor requirements and

recruitability Facility, space, and layout

requirements Business continuity factors Cost and availability of corporate

capital

BUSIN

ESS NEED

S ASSESSMEN

T

Competitive and Market factors Regulatory concerns Infrastructure requirements Transitional or implementation

requirements Preferred or most applicable

incentives requirements Real or perceived barriers to

consolidation Other key location criteria

Understanding the Core Drivers


1. Begin by determining the universe of candidate areas meeting basic thresholds

2. Construct a model to evaluate and rank the candidate locations

3. Test and develop shortlist

General Demographics and Labor Force Dynamics

Transportation and Logistics

Industry & Occupation Specific Labor Force Availability

Labor Costs and Dynamics

Real Estate Availability, Suitability and Cost

Business Environment, Taxation, and Incentives

Education

Quality of Life

LOCATIO

N SCREEN

ING

Weighting, Ranking, and Tradeoffs


Challenge: How can your brownfield sites apply this process to bring new

investment/development to the site or community?

Is This an Opportunity?


How do we match site (and community) strengths to the needs of business?

INVESTM

ENT ATTRACTIO

N STRATEG

YUnderstand the needs of the market


Understand the link between site attributes and business needs

INVESTM

ENT ATTRACTIO

N STRATEG

YReverse Site Selection


UN

DERSTAN

DIN

GWhat Do Users Think of Brownfields?

Brownfield Disadvantages

• Environmental legacy• Older infrastructure• Image and perception• Site layout and access• Requires investment to bring to buildable status

Brownfield Advantages

• Robust infrastructure• Proximity within key markets• Access to other economic partners• Additional financial incentives• Green/LEED opportunities


PROPERTY CH

ARACTERIZATION

Location Planning for Business

• What is the existing ownership structure? What does the land owner (and community) want to achieve? What are the development goals

• Are there existing buildings that can be adapted and re-used? What is the status of existing infrastructure/utilities

• What are the known (or suspected) environmental liabilities?• What is the existing zoning and allowable uses?• What public and private resources can be brought to bear on the

process?


FOCU

SED M

ARKET ANALYSIS

Screening – Determining Relative Advantages

• An honest, objective and complete assessment of the community’s strengths, weaknesses, and goals

• This then gives a basic definition of the ingredients that may be combined to develop the strategy to qualify and attract end-users

• This also identifies areas where competitive improvement is required

Criteria Ranking/Weighting %1. Labor Force Availability 202. Existing Business, Industry, and

Functional Base15

3. Total Operating Costs 204. Regulatory and Tax

Environment5

5. Cost and Complexity of Environmental Remediation

15

6. Zoning/Permitting Process and Timeline

10

7. Infrastructure and Utilities 108. Availability and Applicability of

Incentive Programs5

TOTAL 100%

Sample Ranking/Weighting Model


Internal/Site Factors• What is the existing regional base for the industry, and what are the dynamics• What are the greatest pressures and opportunities facing the industry• What typically forces changes in any of these companies’ real estate and asset

strategies

External Market/Industry Factors• Which industry target are facing or will be facing a key decision in the near future• What are the roadblocks keeping these companies from changing to meet new

business demands• What is the market risk associated with each opportunity

IND

USTRY SELECTIO

N AN

D PRO

FILING

Identifying the Likely Suspects

What is the match between the Site and Target Users?


• What is degree of match between site/community and target user?

• Is the plan financially (and politically, organizationally, etc) feasible

• Do we have the resources (and partners) to implement the plan?

RE-USE ALTERN

ATIVES, DISPO

SITION

, & RED

EVELOPM

ENT

Moving from Plan to Reality

Alternatives Evaluation

• Identify key target opportunities (users/industries)

• Financing plan (both public and private)• Remediation and Infrastructure plan• Conceptual (schematic) development plan• Site and community marketing plan

Disposition/Redevelopment Strategy

Type Internal Score

External Score

Combined Score

Med Device Light Mfg/Assembly

80 100 80

Life Sciences Lab/R&D

85 90 76.5

Life Sciences Back Office

70 90 63

Financial Serv Back Office

100 60 60

Multi-Family Rental Residential

65 90 58.5

Sample Outcome


DISPO

SITION

/DEVELO

PMEN

T STRATEGY

• Development Plan should be sustainable

• Focus on end-user/build to suit developers (instead of “buy and flip”)

• Focus on long-term use opportunities, not flavor of the month

• Both community and developer incentives should be tied to key performance metrics ensuring beneficial relationships

• Environmental liabilities should be seamlessly allocated

• Public sector commitments should be realistically incorporated

Putting it all Together

THANK YOU VERY MUCH

Chris SteelePhone: (617) 314-6527Email: [email protected]

User Solutions for Brownfields

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