Economic Development Leader, Industrial Site
Consulting Team
One of the hottest
economic development
trends right now involves
site certification. Site certification involves identifying a list of diligence factors, assessing a site for assets and deficiencies, curing deficiencies, and then preparing the site to accommodate prospective users.
While
site certification programs are helpful in quickly identifying site attributes, these programs
were never intended
to be all-encompassing. The programs
just weren't designed
to replace thoroughly assessing a site for suitability to specific, individual
users. That responsibility resides with the site selector
and the company to make the decision on the location for the business'
new home. Site selection
decisions are optimally made following a thorough
site diligence investigation.
Why Diligence Matters
The average American
will state that the largest capital investment they will make in their lifetime will be their homes. Now, if you own a home, consider all of the diligence you underwent in making the decision
to purchase. You likely checked the school district,
the transportation routes to areas of personal significance, the home's condition,
the property's suitability, the property tax rates, and the proximity to services. Diligence matters.
Now, consider the
site selection process
for an industry. Company representatives are making multimillion- if not multibillion-dollar capital investments when they invest in a site. The products they produce
require significant infrastructure support and capacity.
Labor matters.
Roads matter. Rail matters.
Zoning matters. Other analytical site preparedness items matter. Timeliness to market is paramount. An underestimation of a site's ability
to serve specific industrial needs can result in catastrophic outcomes, including closures, layoffs, or
worse. Diligence matters.
It is critical for companies to thoroughly perform the due diligence and planning of industrial sites as part of the location decision-making process. Companies simply
cannot afford to take a risk on a "maybe this site can serve"
or "we think we
can obtain property control. Absolutely, without
a doubt, risk avoidance
in the form of site preparedness is crucial
to site selection decisions.
No Shortcuts
Site selection has evolved considerably over the last few decades. As companies have become more
efficient in their processes, the timelines
for selecting new sites have become shorter. The shortened
duration of
time to vet sites under consideration can lead site selectors
and company decision-makers toward a
path
of least resistance, creating an environment where important site attributes are missed prior to selecting
the final site for development. This
mistake can lead to costly
development delays and missed opportunities. As many as 75 different site and community attributes may be needed to provide an in-depth analysis of a company's ability
to function at optimum efficiency. Identifying the risk-to-development factors is not only wise, but also assists
the site
selector and company in playing the selection game intelligently.
Additionally, thorough site diligence
provides site selectors and companies with the ability to save
critical resources by limiting the amount of land purchased
to the amount of
land needed; the means to determine how their sites will serve
their facilities and if the sites are zoned properly to protect them from adjacent users; as well as the ability
to negotiate incentives that provide the
most impact. Foregoing
assumptions on site
preparedness and practicing thorough site diligence is crucial to successful
development.
Courtney
Dunbar has 17+ years of combined career
experiences in economic
development and project funding.
In her current role as economic development leader, she is actively engaged in industrial site planning, community
planning, economic analysis, and identification of project
funding options.
