Incentive Presentation

7/21/2019 Incentive Presentation

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COLLIERS INTERNATIONAL PG. 1

SITE SELECTION AND INCENTIVE

NEGOTIATION SERVICES Don Moss SIOR | CCIM & Grant MillerColliers International


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THE COLLIERSADVANTAGEColliers 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 eective 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 clientsneeds and the use of a unique team approach.

$75.1BTRANSACTION VALUE

$2.1BIN REVENUE

15,800PROFESSIONALS

1.46B SFUNDER MANAGEMENT

63COUNTRIES

486OFFICES

Colliers Corporate Clients


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LOCATION STRATEGY | The Basics

Business Climate Analysis

How do locations compare?

Real Estate Implementation

What is our best real estate solution?

Location Screening

Where are our best logistical locations?

Incentives Procurement

Can we improve our bottom line?

Business Needs Assessment

What are our largest expenses?

Labor Analysis

What communities meet

our labor metrics?


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Initiation & NeedsAssessment

LocationScreening

Business ClimateAnalysis

IncentivesProcurement

Site Selection,Incentives &Real Estate

Implementation

LOCATION STRATEGY | Site Selection Process

> Establish project team

> Dene business needsand scope

> Establish all viablepotential locations

> Eliminate states andregions

> Quantify and rank keylocation variables

> Business climate &operational analysis

> Short-list of locations(state/regions)

> Investigate andidentify state and localgovernment(s), utilityand non prot economicincentives opportunities

> Create list of locations

> Gain alignment onlocation and facilitydecision

> Project Go decision

> Detailed NeedsAnalysis

> Stakeholder inputs

> Dialogue regarding keyissues

> Project successcriteria

> Update, collect, andreview all researchdatabases

> Conduct logistic andtransportation studies

> Screen out locationsusing high-level datapoints; supply chainanalysis; demographicltering, labor anaylsis,key cost factors; etc.

> State and localeconomic developerresearch

> Detailed business costcomparisons

> Real estate optionsanalysis

> Regulatory & permitreviews (where needed)

> First-round location and

site visits

> Primary researchand discussions withstate ocials, localand regional economicdevelopers and utilityprovider representatives

> Identication andprequalication ofincentives options

> Benet analysis basedon usable incentiveprograms

> Detailed location andsite/property tours

> Financial modelscompleted

> Real estate oer(s)

> Incentive negotiations(best & nal oers)

> Final due diligence

> Executive/Board

approvals

> Business requirements

> Key assumptions

> Site search areas

> Project SearchSchedule

> Project CompletionSchedule

> Reduce search territoryto initial or long-listlocations

> Weighted rankings oflocations

> Conrmation 6-8locations in 2-3 statesqualied on short-list

> Real estate options(buildings or sites) ineach location

> Optimization of theincentives packagesthrough a coordinatednegotiation strategy

> Have communitiesand states oer initialpackages

> 2-3 locations & sitesselected as nalists

> Final site selection

> Real estate contracts

> Procure, secure &convey incentives

Objectives

MajorSteps&Data

Outcomes


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LOCATION STRATEGY | Incentives

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

or personnel.

When can companies pursuegovernment incentives?

What types of incentives are typicallyavailable?

Equipment Purchases

Creating or Retaining Jobs

Mergers & Acquisitions

Building Purchases

Lease Expansions

Facility Renovations / Expansions

Relocations

Consolidations

Cash Grants

Free Land

Tax Abatements

Tax Credits

Tax Exemptions

Utility Rate Discounts & Riders

Infrastructure Investments &Improvements

Employment Screening & Training

Workforce Skills Development Grants

Financing/Loan Guarantees


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LOCATION STRATEGY | Incentives Process

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Identify:

Identify opportunities to negotiate state and localincentives, tax benets, grant opportunities, energydiscounts and other creative opportunities andstructure our research ndings to maximize theirpotential value.

Quantify:

Quantify preliminary estimates of benets andoutline the procedures and commitmentsrequired to secure them. We will work closely withthe Clients tax advisors (internal or external) toanalyze the state and local tax implications andpresent a summary of the qualied opportunities.

Optimize:

Optimize the incentives package by designing andexecuting formal incentives negotiation strategybased on the Clients guidance, and coordinate thenegotiation process from start to nish, utilizing thecompanys senior management time and inuencejudiciously. The combination of incentives programswill be structured to optimize the timing and type of

benet delivered.

Procure:

Procure written agreements and commitments by allparties and authorities so that senior managementdecisions on project plans, schedules and budgetscan proceed based upon the net benet availablefrom all future incentives based on best currentknowledge.

Secure:

Secure all available incentives programs witheach of the relevant authorities by preparing andnalizing agreements, applications, and nancingdocuments, and coordinating their submission to,and approval by, all authorities.

Conveyance & Administration:

Convey all documentation, correspondence, andinstructions relevant to the procurement of theeconomic incentives and their ongoing maintenanceand compliance management. Administration of allreporting and follow up required by state and localagencies to receive a grant, tax rebates and otherincentive funding.


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WHY CLIENTS HIRE US

Sta Augmentation

Clients often have the right people and internal expertisebut lack the capacity to handle additional projects, and turnto Colliers for support.

Expertise Clients may lack an internal project team with the broad

geographic experience and unique skills for a complexstudy or incentives assignment.

Condentiality We perform detailed business and real estate studies and

negotiate government incentives while maintaining client anonymity.

Data and Tools We maintain databases, information libraries, and

technology tools that are cost prohibitive for clients

to acquire for single projects.

Objective Review We support our clients internal eorts with methods,

strategies, recommendations and objective review of theirown analyses and ndings.

Community Relations We promote our clients best interests and preserve a

positive local prole while working with governmententities and community interests.

Internal Mediation We provide a process and forum where competing business

assumptions and objectives can be vetted and assessed toproduce the best overall decision.

Due Diligence We fulll our clients needs for independent, unbiased

consultancy when they must have a thorough, methodicaland auditable process.

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

larger suite of real estate services that are available to

support client business needs.

Financial Savings Whether by nding lower labor costs, reducing

transportation routes, identifying lower tax jurisdictions ornegotiating government incentives, we can demonstratereal savings to our clients.


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SUCCESS STORY | Industrial

Type:

400,000 SF textile plant - existing building search

Challenge:

An international textile company had a need to locate a yarn spinning operating within thesoutheastern United States. The requirement called for a facility measuring over 350,000 squarefeet in a rectangular shape in a location oering competitive utility rates, aggressive incentives

and a skilled and/or trainable workforce. Additionally, the company was seeking a site whereemployees had previous experience with textile skills.

Key Services:

Detailed property search in four states for specic 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 t 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

TEXTILE PLANT - SITE SELECTION


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Type:

240,000 SF printing and packaging plant build to suit

Challenge:

An international multi-plant manufacturing rm that supplies cigarette hard packs, wasawarded the print and paper converting portion contract by RJ Reynolds Tobacco located in theWinston-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 ReynoldsTobacco

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 Identication and coordination of pre-bid meetings with qualied general contractors

PACKAGING & PRINTING PLANT - SITE SELECTION


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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 manufacturingcomplex 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 heavypower requirements with a 20 mva connected load and 12 mva operating load, and 50 mcf perhour of gas consumption. An existing facility needed to have at least 15-ton crane capacity, aminimum of 60 bay spacings and a minimum of 25 clear ceilings heights.

Key Services:

Detailed property search in four states for specic buildings and sites that could accommodatea 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 Identied a community who could screen, test and train their workforce for a highly skilled

TITANIUM FABRICATION PLANT - SITE SELECTION


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Updated April 2013

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