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Home My Public Portal About2008-01-14 City Council Work SessionJefferson City Area Chamber of Commerce City Council Work Session January 14, 2008 1 Jefferson City Area Chamber of Commerce 2 Staff Resource Reports Jefferson City Area Chamber of Commerce 3 Jefferson City Area Chamber of Commerce 4 Jefferson City Area Chamber of Commerce 5 Jefferson City Area Chamber of Commerce 6 Jefferson City Area Chamber of Commerce 7 Jefferson City Area Chamber of Commerce 8 Economic Development Jefferson City Area Chamber of Commerce 9 Community Development Jefferson City Area Chamber of Commerce Community Development Downtown Southside Old Town Incentives Group MSP/Whitton Environmental Impact Statement Highway 50 Partnership Riverfront Development Business Arts Council 10 Jefferson City Area Chamber of Commerce Existing Business 11 Jefferson City Area Chamber of Commerce Existing Business 45 company visits have identified:  4 expansions and 4 potential expansions  Net new jobs created in 2007-2008 = 168  Total private investments = $43.3 million 11 companies have received customized training funding of $233K 12 Jefferson City Area Chamber of Commerce Business Attraction 13 Jefferson City Area Chamber of Commerce Top Recruitment Projects Several projects that we were involved in this year the top three were: Project Alloy Project Barsee Project Companion 14 Jefferson City Area Chamber of Commerce Project Alloy 15 Jefferson City Area Chamber of Commerce Number of Jobs This project is precision metalworking. The workforce projection is 150 total (135 production and 15 salaried) The skill set requirements would be: 20% skilled 50% semi-skilled 30% low skilled 16 Jefferson City Area Chamber of Commerce Capital Investment The investment for Project Alloy: Facility = $ Value TBD Equipment = $20 to $30 million 17 Jefferson City Area Chamber of Commerce Building Site The building criteria was 100,000 to 150,000 sq. ft. We proposed the Chamber Spec Building located in the Partnership Business Park. While the spec building is 50,000 sq ft currently – it is expandable to 130,000 sq ft. It is located on 10.6 acres. 18 Jefferson City Area Chamber of Commerce Spec Building 19 Jefferson City Area Chamber of Commerce Spec Building Site 20 Jefferson City Area Chamber of Commerce Infrastructure Requirements The needs for Project Alloy were Good highway access Water – 100,000 gpd (378,500 l) Wastewater – 100,000 gpd (378,500 l) Electric – 1,000 kW demand; 300,000 kWh/month Process Natural Gas – 1,000,000 cu. ft./month (30,000 cu. m./month) Telecommunications – Digital, fiber optics and satellite access preferred 21 Jefferson City Area Chamber of Commerce Challenges of the Project Very aggressive incentive package had to be offered to stay in the game. Free or low cost building and site Tax abatement Building smaller than company requirements. Other two communities had 100,000 square foot buildings. 22 Jefferson City Area Chamber of Commerce Status of the Project Jefferson City, MO and Paragould, AR final two candidates for this project. This division was recently spun off from the parent company, putting the project on hold. Recently received word project could be reactivated in first quarter 2008. 23 Jefferson City Area Chamber of Commerce Project Barsee 24 Jefferson City Area Chamber of Commerce Number of Jobs This project was international in origin. The facility would be a steel mill that produces reinforcing bar for use in the construction and building industries Project Barsee was prepared to commit to creating a minimum of 100 direct jobs with an average salary of $50,000 25 Jefferson City Area Chamber of Commerce Capital Investment Investment of approximately $120 Million in machinery and equipment. Over 800,000 square feet under roof. 26 Jefferson City Area Chamber of Commerce Site Location Project initially required a minimum of 80 – 100 acres. We proposed 200 acres of land that was controlled by two private individuals near the Partnership Business Park. 27 Jefferson City Area Chamber of Commerce Site Location 28 Jefferson City Area Chamber of Commerce Infrastructure Requirements Rail access to and from the site was important as well as proximity to the interstate highway system. Access to low cost electrical power (up to 35 mva). Availability of process water at a rate of 450,000 gallons per day and potable water at 9,000 gallons per day. Sewage needs are best met through the availability of existing facilities, however, an on-site treatment facility could be considered. Natural gas – maximum usage of 21,000 cu./ft. per hour (12,600 cu/ft per hour average). Pressure requirements are 30 to 60 lbs. 29 Jefferson City Area Chamber of Commerce Challenges of Project Identify acreage that fit the company’s criteria. No control of site which made it necessary to negotiate with two separate property owners. Our site was very raw with little infrastructure. Very aggressive incentive package had to be offered to be competitive. 30 Jefferson City Area Chamber of Commerce Status of Project Jefferson City was considered for this project and had two site visits. Montgomery County still being considered. Jefferson City was eliminated based on logistics, further west than Montgomery County. Since that time, we have received a lead from the same consulting firm for 700-1000 acres for a $1.3 Billion Project that we were unable to identify a suitable site for. 31 Jefferson City Area Chamber of Commerce Project Companion 32 Jefferson City Area Chamber of Commerce Number of Jobs Project Companion is a food related industry. This project expected to initially start with 150 jobs and expand to 200 jobs within three years. The skill level for the production/distribution related personnel would be 15% skilled 20% semi-skilled 65% low skilled Projected wage level to be in the 75 percentile level of similar existing area industries. 33 Jefferson City Area Chamber of Commerce Capital Investment Projected ultimate Initially within three years Facility $8,000,000 $16,000,000 Site Value TBD Equipment/Personal Property $22,000,000 $43,000,000 TOTALS $30,000,000 $59,000,000 34 Jefferson City Area Chamber of Commerce Site Location Site criteria was 35-40 acres with approximate dimensions 1,500 x 1,100 ft. We proposed a 34.86 acre site in the Partnership Business Park to the east of the Fabick site 35 Jefferson City Area Chamber of Commerce Site Location 36 Jefferson City Area Chamber of Commerce Infrastructure Requirements This project would need: Sheet metal fabrication shops, electric motor repair shops, machine shops, contract electrical services, automated equipment services, and temporary personnel services Access to major highways On-site rail preferred but not mandatory Commercial air services within 2 hour drive time Overnight package delivery services by FedEx and UPS Motor freight – up to 100 trucks daily 37 Jefferson City Area Chamber of Commerce Infrastructure Requirements Utilities: Water – 236,000 g/d initially and projected 430,000 g/d within three years Wastewater – 200,000 g/d initially and projected 400,000 g/d within three years  Electric •kW demand 1,000 initially and 2,000 within three years •kWh/month 375,000 initially and 700,000 within three years  Natural Gas • Facility space heating volume TBD • Process 20,000,000 cu.ft./mo initially and 40,000,000 cu.ft./mo  Telecommunication high speed digital and fiber optic services 38 Jefferson City Area Chamber of Commerce Challenges of Project 23 page Request for Information that had to be turned around in four days HUGE user of water HUGE wastewater requirements that our system currently couldn’t serve. The system would take two years to build and minimum $4 million investment Low skilled positions to be filled 39 Jefferson City Area Chamber of Commerce Status of Project Jefferson City was eliminated based on low property tax abatement package Major upgrade to the wastewater treatment system without a plan on how this would be funded Not willing to provide a free site Later learned this company was M&M Mars, Pedigree Dog Food Division 40 Jefferson City Area Chamber of Commerce Where do we need to be to compete? Shovel ready sites including all infrastructure provided Own or control land Free or very discounted land Aggressive property tax abatement Team assembled and ready to act fast! 41