SITE SELECTION AND INCENTIVE

NEGOTIATION SERVICES
COLLIERS INTERNATIONAL

Don Moss SIOR | CCIM & Grant Miller

PG. 1
Colliers International

THE COLLIERS
ADVANTAGE
Colliers International in Charlotte focuses on accelerating our clients success by seamlessly providing a full range of services to real estate users,
owners and investors.
The foundation of Colliers International in Charlotte is our innovative spirit. We deliver effective and unique solutions to our clients with their
leasing, sales, management and commercial real estate challenges. These successes can be largely attributed to our ability to adapt to our clients
needs and the use of a unique team approach.

$75.1B

TRANSACTION VALUE

$2.1B
IN REVENUE

15,800
PROFESSIONALS

1.46B SF
UNDER MANAGEMENT

486
OFFICES

63

COUNTRIES

Colliers Corporate Clients

COLLIERS INTERNATIONAL

PG. 2

LOCATION STRATEGY | The Basics

Business Needs Assessment

Real Estate Implementation

What are our largest expenses?

What is our best real estate solution?

Location Screening

Incentives Procurement

Where are our best logistical locations?

Can we improve our bottom line?

Business Climate Analysis

How do locations compare?

COLLIERS INTERNATIONAL

Labor Analysis
What communities meet
our labor metrics?

PG. 3

LOCATION STRATEGY | Site Selection Process

Initiation & Needs
Assessment

Major Steps & Data

Objectives

>> Establish project team

>> Define business needs
and scope

Business Climate
Analysis

>> Establish all viable

potential locations

>> Quantify and rank key

location variables

>> Eliminate states and

regions

>> Business climate &

operational analysis
>> Short-list of locations
(state/regions)

>> Detailed Needs

Analysis
>> Stakeholder inputs
>> Dialogue regarding key
issues
>> Project success
criteria

>> Business requirements

>> Key assumptions

Outcomes

Location
Screening

>> Site search areas

>> Project Search
Schedule
>> Project Completion
Schedule

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>> Update, collect, and

review all research
databases

>> State and local

economic developer
research

>> Conduct logistic and

transportation studies

>> Detailed business cost

comparisons

>> Screen out locations

using high-level data
points; supply chain
analysis; demographic
filtering, labor anaylsis,
key cost factors; etc.

>> Real estate options

analysis

>> Reduce search territory

to initial or long-list
locations

>> Weighted rankings of

locations

>> Regulatory & permit

reviews (where needed)
>> First-round location and
site visits

>> Confirmation 6-8

locations in 2-3 states
qualified on short-list
>> Real estate options
(buildings or sites) in
each location

Incentives
Procurement

Site Selection,
Incentives &
Real Estate
Implementation

>> Investigate and

identify state and local
government(s), utility
and non profit economic
incentives opportunities

>> Create list of locations

>> Primary research

and discussions with
state officials, local
and regional economic
developers and utility
provider representatives

>> Detailed location and

site/property tours

>> Identification and

prequalification of
incentives options

>> Incentive negotiations

(best & final offers)

>> Benefit analysis based

on usable incentive
programs

>> Executive/Board
approvals

>> Optimization of the

incentives packages
through a coordinated
negotiation strategy

>> 2-3 locations & sites

selected as finalists

>> Have communities

and states offer initial
packages

>> Gain alignment on

location and facility
decision
>> Project Go decision

>> Financial models

completed
>> Real estate offer(s)

>> Final due diligence

>> Final site selection

>> Real estate contracts
>> Procure, secure &
convey incentives

PG. 4

LOCATION STRATEGY | Incentives

The type and value of state and local economic incentives procured for a corporate project can be a significant
consideration when choosing new facility locations, or when selecting among existing business sites to inject new capital
or personnel.

When can companies pursue

government incentives?

What types of incentives are typically

available?

Equipment Purchases

Cash Grants

Creating or Retaining Jobs

Free Land

Mergers & Acquisitions

Tax Abatements

Building Purchases

Tax Credits

Lease Expansions

Tax Exemptions

Facility Renovations / Expansions

Utility Rate Discounts & Riders

Relocations

Infrastructure Investments &

Improvements

Consolidations

Employment Screening & Training

Workforce Skills Development Grants
Financing/Loan Guarantees

COLLIERS INTERNATIONAL

PG. 5

LOCATION STRATEGY | Incentives Process

COLLIERS INTERNATIONAL

Identify:

Procure:

Identify opportunities to negotiate state and local

incentives, tax benefits, grant opportunities, energy
discounts and other creative opportunities and
structure our research findings to maximize their
potential value.

Procure written agreements and commitments by all

parties and authorities so that senior management
decisions on project plans, schedules and budgets
can proceed based upon the net benefit available
from all future incentives based on best current
knowledge.

Quantify:

Secure:

Quantify preliminary estimates of benefits and

outline the procedures and commitments
required to secure them. We will work closely with
the Clients tax advisors (internal or external) to
analyze the state and local tax implications and
present a summary of the qualified opportunities.

Secure all available incentives programs with

each of the relevant authorities by preparing and
finalizing agreements, applications, and financing
documents, and coordinating their submission to,
and approval by, all authorities.

Optimize:

Conveyance & Administration:

Optimize the incentives package by designing and

executing formal incentives negotiation strategy
based on the Clients guidance, and coordinate the
negotiation process from start to finish, utilizing the
companys senior management time and influence
judiciously. The combination of incentives programs
will be structured to optimize the timing and type of
benefit delivered.

Convey all documentation, correspondence, and

instructions relevant to the procurement of the
economic incentives and their ongoing maintenance
and compliance management. Administration of all
reporting and follow up required by state and local
agencies to receive a grant, tax rebates and other
incentive funding.

PG. 6

WHY CLIENTS HIRE US

Staff Augmentation

Clients often have the right people and internal expertise

Community Relations

We promote our clients best interests and preserve a

Expertise

Clients may lack an internal project team with the broad

Internal Mediation

We provide a process and forum where competing business

Confidentiality

We perform detailed business and real estate studies and

Due Diligence

We fulfill our clients needs for independent, unbiased

Data and Tools

We maintain databases, information libraries, and

Integrated Services

As part of a multi-national company, we have access to a

Objective Review

We support our clients internal efforts with methods,

Financial Savings

Whether by finding lower labor costs, reducing

but lack the capacity to handle additional projects, and turn

to Colliers for support.

geographic experience and unique skills for a complex

study or incentives assignment.

negotiate government incentives while maintaining client

anonymity.

technology tools that are cost prohibitive for clients

to acquire for single projects.

strategies, recommendations and objective review of their

own analyses and findings.

COLLIERS INTERNATIONAL

positive local profile while working with government

entities and community interests.

assumptions and objectives can be vetted and assessed to

produce the best overall decision.

consultancy when they must have a thorough, methodical

and auditable process.

larger suite of real estate services that are available to

support client business needs.

transportation routes, identifying lower tax jurisdictions or

negotiating government incentives, we can demonstrate
real savings to our clients.

PG. 7

SUCCESS STORY | Industrial

TEXTILE PLANT - SITE SELECTION

Type:
400,000 SF textile plant - existing building search

Challenge:
An international textile company had a need to locate a yarn spinning operating within the
southeastern United States. The requirement called for a facility measuring over 350,000 square
feet in a rectangular shape in a location offering competitive utility rates, aggressive incentives
and a skilled and/or trainable workforce. Additionally, the company was seeking a site where
employees had previous experience with textile skills.

Key Services:

Detailed property search in four states for specific textile process oriented type facility
Tax incentive research, negotiation and implementation
Electric rate research and negotiation
Training program negotiation and implementation

Value:
Located and negotiated the most modern and best fit facility in multi-state area
Secured multi-million dollar incentive package in the form of cash grants; property tax rebates
and electric utility riders
Assisted with negotiation and implementation of the customized employee training plan

COLLIERS INTERNATIONAL

PG. 8

SUCCESS STORY | Industrial

PACKAGING & PRINTING PLANT - SITE SELECTION

Type:
240,000 SF printing and packaging plant build to suit

Challenge:
An international multi-plant manufacturing firm that supplies cigarette hard packs, was
awarded the print and paper converting portion contract by RJ Reynolds Tobacco located in the
Winston-Salem area. The company needed to locate its new manufacturing operation in an area
where many of the former RJ Reynolds packaging employees would be willing to work.

Key Services:
Identifying strategic communities and sites within 1.5 hours of their customer RJ Reynolds
Tobacco
Detailed analysis of suitable property sites with appropriate utility infrastructure
Tax research and incentives negotiation

Value:
Obtained free site, grading allowance and other cash incentives
Administration and implementation of incentives contracts and grants
Identification and coordination of pre-bid meetings with qualified general contractors

COLLIERS INTERNATIONAL

PG. 9

SUCCESS STORY | Industrial

TITANIUM FABRICATION PLANT - SITE SELECTION

Type:
80,000 - 120,000 SF titanium fabrication plant with expansion room for a foundry existing building

Challenge:
An international aerospace company was looking for a new fabrication and forging manufacturing
complex in a southeastern location in a community with a favorable labor climate. The building
needed to be 80,000 - 120,000 SF. The key drivers were: a site that could accommodate heavy
power requirements with a 20 mva connected load and 12 mva operating load, and 50 mcf per
hour of gas consumption. An existing facility needed to have at least 15-ton crane capacity, a
minimum of 60 bay spacings and a minimum of 25 clear ceilings heights.

Key Services:
Detailed property search in four states for specific buildings and sites that could accommodate
a very heavy power and natural gas load
Tax incentive research and negotiation
Utility rate and load capability research
Labor availability and skills research

Value:
Secured a donated 80,000 SF shell building and an additional 20 acre site
Identified a community who could screen, test and train their workforce for a highly skilled

COLLIERS INTERNATIONAL

PG. 10

COLLIERS COVERAGE MAP

Updated April 2013