RULES OF

ATTRACTION AND

THE ART OF

SEDUCTIONMain Drivers for Industrial Projects and What To Do To Persuade Investors

Catalina ValenciaSenior Consultant

Global Location Strategies

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Drivers for capital intensive projects

Common denominator

What communities can do to attract them

3|

Global Location StrategiesGLS +40

Years of experience

$3.6BCapital investment

4,000Jobs created

70Countries

4|

Top Investment ProjectsSoutheast

Source: SB&D Investments 100; Top 100 development projects in the South in 2015

$43 $19 $10 $8 $3 $2 $2 $1.6 $1.6 $0.7Billion USD

~85%Capital intensive

~73%Without oil & gas

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Capital Intensive vs. Labor Intensive

CapitalIntensive

Labor Intensive

Sit

e &

B

uild

ing

250 acres50 min.

50 acres15 min.

300K sq. ft. 100K sq. ft.

Cap

ital

Inve

stm

en

t

$300MM $65MM

80% 75%

Em

plo

yees

200 300

35% 30%

6|

Capital Intensive vs. Labor Intensive

CapitalIntensive

Labor Intensive

Uti

litie

s

20 MW166.4 MM kwh

10 MW83.22 MM kwh

1,080,000 MCF 270,000 MCF

365 MG 62 MG

329 MG 57 MG

Log

isti

cs

Usually No

10 Miles 10 Miles

Possible No

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Capital Intensive Project Drivers High

Low – Moderate

More technically trained

More

Intensive

Longer

Utilities

Logistics

Permitting/ Zoning

8|

Capital IntensiveProject Drivers

Logistics

Deep-water port or barge terminal

RailColocation of supply

chain partners

Heavy truck movement Airport runwayx

Intermodal

Utilities

Heavy utility dependency

Other industrial gases –e.g. oxygen, nitrogen

Raw water

Direct discharge

Pipelines

9|

Capital IntensiveProject Drivers

Permitting/ Zoning

Air quality attainment

Waste disposal for hazardous/ non-

hazardous materials

Availability of credits, if non-attainment

NPDES permit

Tall buildings with stacks

Steam plumes of visible water vapor

Heavy-industrial zoning or no zoning

Chemicals storage permitting

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Conditional Criteria2015 –Case Study 1

25%

15%

15%

20%

10%

15%

Workforce

Logistics/ Supply Chain

Utilities

Environmental/ Permitting/

Zoning

Schedule

Site Prep/ Site Characteristics

100 MW

550 MCF/hr.

5 MGD

3.6 MGD

700People

Utilities + Logistics:31% of Criteria

Weight

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Cost Impact2015 –Case Study 1

39%

11%

31%

14%

2%2% 1% -1%

Outbound Freight

Inbound Freight

Utility Costs

Labor Costs

Property Taxes

Lease

Sales & Use Tax

Incentives

100 MW

550 MCF/hr.

5 MGD

3.6 MGD

700People

Utilities + Logistics:81% of operational

costs

12|

Conditional Criteria2015 –Case Study 2

$300MM

20MW

125MCF/hr.

1MGD

200People

10%

15%

10%

15%20%

5%

25%

Workforce

Logistics/ Supply Chain

Utilities

Environmental/ Permitting/

ZoningSchedule

Other

Site Prep/ Site Characteristics

Utilities + Logistics:25% of Criteria

Weight

13|

Cost Impact2015 –Case Study 2

$300MM

20MW

125MCF/hr.

1MGD

200People

32%

29%

18%

12%

12%

5%1% 0.4%

Inbound Freight

Natural Gas/ Steam

Labor

Other/ RM VAT

Electricity

Lease

Industrial Water

Industrial Wastewater

Utilities + Logistics:86% of operational

costs

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Capital Intensive ProjectsCommon Denominator

Infrastructure

Utilities Logistics

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What communities can do to attract capital intensive projects? Get control

Characterize

Understand capacities & limitations

Consider non-traditional needs

16|

What communities can do to attract capital intensive projects?

Think outside of…your town, your county,your state…

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Takeaways

Finding the right site

Big challenge

Site readiness

Priority

Infrastructure

Common denominator

Big or small

Opportunities for all