Site Selection

CITE City Developers Pull Out From $1B New Mexico Project

Back in May, New Mexico Governor Susana Martinez and Economic Development Secretary John Barela announced with much fanfare that Pegasus Global Holdings LLC had chosen Lea County and Hobbs, New Mexico as the location for their $1 billion Center for Innovation, Testing and Evaluation (CITE) project aka the ghost town.

CITE

CITE (Photo – Pegasus Global Holdings)

The “CITE City” project was supposed to be a ground-breaking concept of building an entire city from scratch with no residents, to be used solely as a proving ground for research technologies.

It would be a complete medium-sized American city, including its urban, suburban, and rural areas, built with standard roads, buildings, power, water, telecommunications and operating systems.

CITE will then allow clients to test the benefits and costs of their proposed next-generation innovations and technologies, hardware and software in fields like green energy, intelligent transportation systems (ITS), smart grids, telecommunications, resource development and security.

CITE was scheduled to create 350 new direct jobs and more than 3,500 new indirect jobs through construction of the facility, supporting industry, and contractors. The project was supposed to break ground in June 2012 for construction of the 15 sq mile site on  parcels of both public and private lands.

At that time, NM Gov. Susana Martinez said that, “I’m proud that New Mexicois able to provide a home for a state-of-the-art project like CITE. We have worked closely with Pegasus Global Holdings to see the selection process through in order to bring jobs and innovation to our state, and I’m pleased that they are moving forward in New Mexico.”

But apparently they didn’t see it through completely, because Pegasus announced last month that the groundbreaking was going to be delayed. Now they say it’s off the table entirely because of “unforeseen issues with acquiring the land.”

They’re now back at the site selection drawing board, taking another look at 15 other communities in New Mexico which had earlier expressed interest in the project. Last time around, the battle had come down to Hobbs and Las Cruces. With Hobbs now out of the picture, Las Cruces likely begins as a strong contender.

Robert Brumley, CITE managing director, insists there are no problems with the billion dollar private investment the project needs and says the pull out was solely a site selection issue.

He adds that they are still committed to New Mexico, assuming a suitable alternative site can be found. But it’s a good bet there won’t be any announcements from the Governor this time if and when CITE announces the choice of another site.

Nuts and Bolts of the Smoothie King Site Selection Process

There’s a very nice article in the latest issue of Stores magazine about Smoothie King’s data-driven site selection process and priorities.

Richard Leveille, Smoothie King EVP of Franchise Development

Richard Leveille uses Buxton Scout for Smoothie King Site Selection (Photo – Buxtonco.com)

The New Orleans, Louisiana based company opened its first store in 1973 and now has 520 locations in the US and one hundred more franchise outlets overseas.

Smoothies are now a $2 billion a year business in the US, with a 13 percent annual growth rate.

Richard Leveille, executive vice president of franchise development and real estate for Smoothie King, has been scouting sites for the company for more than two decades.

He tells Stores.org that the company’s mission is about introducing people to a healthy lifestyle, and that making money is a secondary reason to be in business. But their site selection process is very much scientific, data driven and commerce-oriented.

Leveille says their top three priorities for site selection are visibility, convenience and locations where others have succeeded. He spent years tramping around to see sites and talk to people, but after spending some time to understand the “analytic modeling in a site-selection capacity,” Smoothie King has now made it easier by opting to use a Buxton tool named Scout.

Buxton is a company that provides customer analytics tools for site selection, marketing and e-Commerce for customers in the retail and restaurants sector. The Scout tool offers customer demographics, locations and purchasing history to match marketing criteria, so that you know where your customers are.

For example, a normal demographic study would lump two neighbors of the same age and income who went to the same college into the same category. But if one of them is single and the other one is married, their buying patterns will be vastly different.

These are the kinds of differences that can be caught by a data-driven tool that does not rely on old consumer lists or market surveys. The Buxton tool, says Leveille, can reach into the minds of consumers and divine how they live and how they spend their money. It also helps compare new sites being developed against existing and successful locations.

See this Youtube video where Richard Leveille discusses how he uses Buxton’s SCOUT tool to analyze sites for new locations.

California Tops Site Selection Sustainability Rankings

The July issue of Site Selection magazine includes their third annual Sustainability Rankings. California once again tops the list, followed by Oregon and Vermont.

California Sustainability

California Sustainability (Photo – ca.gov)

The top 10 most sustainable states:-

  1. California
  2. Oregon
  3. Vermont
  4. North Carolina
  5. Arizona
  6. New York
  7. Minnesota
  8. Washington
  9. Texas
  10. Pennsylvania

Illinois, Wisconsin and Florida get honorable mention. The criteria used to rank the states include factors such as LEED-certified buildings, renewable energy use, energy efficiency, renewable energy generation and green industry facility projects per capita.

Some states not in the top 10 list or very far down did do very well in some individual criteria. Massachusetts, for example, is the no.1 state for energy efficiency. Washington topped the list for renewable energy generation, and Pennsylvania was the no. 1 state for green industry facility projects per capita.

California’s cities also lead the way in the top nationwide sustainable metros list, with San Francisco-Oakland-Fremont in first place, followed by Los Angeles-Long Beach-Santa Ana in fifth place, San Diego-Carlsbad-San Marcos in seventh place and San Jose-Sunnyvale-Santa Clara bringing up the rear in ninth place.

Washington DC-Arlington-Alexandria metro area in DC/VA came in second place on the top sustainable metros list, and the New York-Newark-Edison area took third place.

The top sustainable foreign countries list was topped by Canada, with Germany and Brazil in second and third place respectively. Other countries on the top 10 list include Spain, China, the United Kingdom, Italy, South Korea, Chile and Mexico.

Dallas, Denver, San Jose Win US Patent Offices

Site selection battles for three new satellite offices for the U.S. Patent and Trademark Office (USPTO) have been won by Dallas/Fort Worth, Texas; Denver, Colorado; and San Jose, California. This is in addition to the earlier announcement of another patent office to be opened in Detroit, Michigan.

Regional Patent Offices

Regional Patent Offices (Photo – uspto.gov)

The America Invents Act of 2011, signed into law by President Obama in September last year, requires the USPTO to establish regional satellite locations as part of a larger effort to modernize the U.S. patent system over the next three years.

“By expanding our operation outside of the Washington metropolitan area for the first time in our agency’s 200-plus year history, we are taking unprecedented steps to recruit a diverse range of talented technical experts, creating new opportunities across the American workforce,” said David Kappos, director of the USPTO. “These efforts, in conjunction with our ongoing implementation of the America Invents Act, are improving the effectiveness of our IP [intellectual property] system, and breathing new life into the innovation ecosystem.”

The site selection for the four new USPTO offices was based upon criteria including geographical diversity, regional economic impact, ability to recruit and retain employees, and the ability to engage the intellectual property community.

Over 600 cities applied to be chosen as the site for the new patent offices. The site selection team narrowed it down to 50 MSAs based on the previously stated criteria to assess operational cost and feasibility, ability to improve patent quality, and ability to employ U.S. veterans.

Denver faced tough competition from Portland, Seattle, Salt Lake City, and Albuquerque. Metro Denver EDC, the Colorado Bar Association IP division and Colorado’s U.S. Sen. Michael Bennet’s office partnered to create and submit Denver’s application, “Accelerating Innovation: The Case for a Satellite Patent Office in Colorado.”

“There’s no doubt that this is an amazing development for our culture of innovation,” commented Tom Clark, CEO of the Metro Denver EDC. “Since Colorado ranks among the top five states for entrepreneurial activity, the new satellite patent office in our region will make it very efficient for our inventors and technology companies to get their intellectual property done here in Colorado.”

The patent office will bring hundreds of patent examiner jobs to Denver as well as a considerable number of related positions, and an anticipated economic impact of $440 million in the first five years of operation.

California’s Silicon Valley, which has the most number of patent registrations in the US, was a sure thing for one office. The only question was about which city would get it, and San Jose locked it up by offering a 20,000 sq. ft. space in City Hall.

“The Commerce Department’s decision to locate a new patent office in the Silicon Valley recognizes that California is the world capital of creativity and invention,” said California Gov. Jerry Brown. “Nearly a quarter of the nation’s patent applications originate here, and I join all Californians in applauding this decision.”

How Apple Won a $1 Billion Data Center in Nevada

Late last month, Apple Inc. confirmed that Nevada had won the site selection battle for a $1 billion data center in Washoe County just outside Reno and a business office in downtown Reno.

Apple Inc.

Apple Inc. (Photo credit – thms.nl via flickr)

Actually, turns out it was sort of the other way round, with Apple executives spending months with state and local officials trying to win as much in incentives as possible.

At the end of the day, Apple is the clear winner in strictly material terms. Apple will get an 85 percent abatement on the personal property tax on equipment purchased and will only pay 0.5 percent sales tax instead of 7.5 percent.

The project is forecasted to generate $105 million in tax revenues over 10 years, of which the state will get only $16 million. The Washoe County Commission agreed to an $89 million tax abatement deal.

It was a convoluted but ingenious loophole that allowed Apple to skate free of most of its sales tax burden. The state is allowed to waive all except 2 percent of its sales tax for equipment purchase. Two percent of a billion dollars worth of servers is still a lot, so Apple pushed harder.

As a solution, they were told to open an office in the special tourism improvement district in downtown Reno to receive the servers, which meant a 75 percent reimbursement of the two percent sales tax that was still owed. The final result – 0.5 percent sales tax instead of 7.5 percent.

Apple Inc. will hire about 40 employees at the data center and up to 200 independent contractors. A total of 329 direct and indirect jobs will be created and the construction will add a one-time economic impact of $103 million. Apple has agreed to state audits to ensure it keeps its commitments regarding wages and capital investment.

“Reno has been working to diversify its economic base,” said Reno Mayor Bob Cashell. “This is a project in which we can all work together for the good of the whole. Apple will create jobs and brings millions of dollars to our community which will help everyone.”

The main benefit is the huge push Apple just gave to the Reno Technology Park and Nevada’s new economic development strategy focused around seven industry clusters – one of which is Business IT ecosystems.

“When a company like Apple chooses to locate in Nevada, that causes other major companies to take a second look at the state, and I think that there will be significant interest on the part of others because this deal took place,” said Steve Hill, executive director of the Nevada Governor’s Office of Economic Development.

DHS Selects Oklahoma for Unmanned Aircraft Test Site

Oklahoma Governor Gov. Mary Fallin announced that a test site near Lawton, Oklahoma had been chosen for testing of the DHS Robotic Aircraft for Public Safety (RAPS) Program.

DHS UAS test flight

DHS UAS test flight (Photo – U.S. Coast Guard)

The program will research and test Small Unmanned Aircraft Systems (SUAS), focusing on possible applications for first responders, including search and rescue scenarios, response to radiological and chemical incidents and fire response and mapping.

The UAS research and testing facility, the first of its kind in the US, will be at based at Oklahoma State University’s Multispectral Lab (UML) site near Lawton, which comes under the restricted airspace around Fort Sill.

Unmanned aircraft currently need restricted airspace for testing, because their integration into the FAA air-traffic control system for commercial and military aircraft is still in the works.

RAPS is expected to bring a $1.4 million investment to Oklahoma in the first year, with potential for more growth in subsequent years. The program is expected to last at least three years.

“Aerospace is one of the most important sectors of Oklahoma’s economy, supporting over 150,000 jobs around the state and accounting for more than $12.5 billion in industrial output each year,” said Gov. Fallin. “Not only does UAS research attract investment and jobs to the state of Oklahoma, but it allows us to be part of an exciting new technology that will help our first responders as they work to save lives and keep our citizens safe.”

The site selection decision was made by Dr. John Appleby of the DHS Science and Technology Directorate. He said he visited a dozen sites in southwestern and western states before selecting Oklahoma.

“I continue to be impressed by the quality of UAS ideas and approaches in Oklahoma, the high level of experience and subject matter expertise concerning this technology and the breadth of available resources in the state needed for the program.” said Dr. Appleby.

Sacramento Bags 2000 New Call Center Jobs

Advanced Call Center Technologies, LLC (ACT) is going to open a big call center in Sacramento, California next month. The new unit is expected to start with 500 jobs by the end of the year and eventually create 2,000 direct new jobs in the Sacramento area.

Sacramento, CA

Sacramento, CA (Photo – Maveric149/Wikipedia)

ACT provides back office support services for companies in the financial services, communications, and technology industries.

They signed a lease for 87,000 square feet of office space in a warehouse north of Interstate 80, and are set to begin operations in the third quarter of 2012.

The announcement was made by the Sacramento Area Commerce and Trade Organization (SACTO), which was credited by ACT CFO Jimmy Griffiths for putting together an attractive incentive package to keep the company in Sacramento despite plenty of offers from other states.

The final site selection battle for the new call center came down to Sacramento, CA; Kansas City, KS; Tallahassee, FL; Fond du Lac, WI; and Weldon Springs, MO.

This is ACT’s second major setup in Sacramento. They opened a call center 2 years ago and hired 200 workers. In a statement, SACTO said the company selected Sacramento because of its experience at its existing facility in the area, the availability of a qualified workforce, and the benefits of locating in an Enterprise Zone. ACT gets tax credits as it hires more people.

“This is great news for the region and represents much needed job creation at a critical time,” said Ann Madden Rice, CEO of UC Davis Medical Center and SACTO Board Chair.

SACTO says it had plenty of support from the City and Countyof Sacramento, the City of Rancho Cordova, and the California Governor’s Office of Business and Economic Development (GOBiz).

“This project demonstrates companies’ desire to locate in our area, bringing with them new jobs and ultimately improving our economic health,” stated Phil Serna, Sacramento County Supervisor.

MIQ Logistics Facility To Move From New Jersey to Tannersville, Pennsylvania

www2.miq.com/

The Governor of New Jersey whose name is Tom Corbett has announced that the company called MIQ Logistics will be moving to an area in Tannersville, Pennsylvania.

The planned transition will also create nearly 80 brand new jobs within a time frame of 3 years. Governor Corbett states that his intention is to create a business environment so that the state of Pennsylvania can compete with economic investment and bring in brand new jobs.

The movement of the MIQ facility is testament to the pro business type of thinking. The distribution facility is currently 45,000 square feet and it will be expanded to an 116,000 square foot facility in the region of Tannersville.

There will be a 15 year lease in which there will be investment in infrastructure and training the employees. MIQ Logistics also received funding for the project in the amount of $356,000 dollars from the Department of Economic Development. The President of MIQ Logistics whose name is John Carr states that there were a myriad of locations to choose from but the Tannersville region was ideal because of the local talent pool and the business friendly climate. John Carr is glad that the company will now be associated with the region of Tannersville.

The coordination of the project is being managed by the action team of the Governor. The project will not only lead to new jobs but will also add a particular commercial user for the water system as revenue has steadily declined. The Executive Director of the Pocono Mountains Industry is thankful for the participation from the Governor’s Action Team and the Governor for the leadership as the decision was made to relocate the facility. The real estate industry will also receive a boost as the facility is moved to the region of Tannersville.

Overall, the new site selection will serve as an asset to the community of Tannersville.

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1,500 California Project In Walnut Creek, California

www.city-data.com/

The region of Walnut Creek, California is planning on implementing a “1,500 California” project.

The project will ultimately involve clearing a parking lot, Valley Bank Branch and a vacant restaurant which is in close proximity to a parking garage. All of the land will be redeveloped as 2 particular six story buildings will total approximately 160,000 square feet. There will be approximately 141 apartments in the buildings and nearly 18,000 square feet will be utilized for restaurant space. The shape of the buildings will be in the structure of an “L” and would stretch from Bonanza Street to California Boulevard.

The 1500 California project will be centered at the heart of Walnut Creek. Currently, there is no residential housing at the center of Walnut Creek. The developer of the 1500 California Project is Laconia LLC. The CEO of Laconia whose name is Paul Menzies states that more individuals want to move towards the downtown region of Walnut Creek. Paul Menzies finally elaborates on how the movement has been going on for a while especially in the state of California. The Mayor of Walnut Creek also pinpoints on how residential living has evolved over the past 20 years.

Mixed Use development will also be updated for the general plan of the 1,500 California project. The Mayor also hopes that there will be more housing proposals in the near future. Mayor Bob Simmons sees the project in a positive light as the downtown region will be much more active. The Chamber of Commerce in Walnut Creek and the Business Association also support the 1,500 project. The project will not look like ordinary apartments as they will be glass towers and transform into a traditional type of appearance as they stretch out. A mechanical lift system will also be implemented for the parking lot structure.

Overall, the site selection of the apartments is ideal for the downtown region of Walnut Creek.

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New State Ferry Terminal To Be Established in Washington

http://www.flickr.com/photos/monstermunch/

The state ferries in Washington are planning on putting a brand new ferry terminal east of a past terminal which is also in close proximity to a Tank Farm for the Air Force.

The location of the new ferry terminal will be called Elliot Point 2 and would avoid various impacts from the environment and address a myriad of complications that arise at the current terminal.

The site selection process was also rumored to remove a variety of local businesses but the establishment will keep many businesses in place as the new terminal is established.

The selection process was completed after government agencies, tribal leaders and the public debated the issue.

The Transportation Secretary whose name is David Moseley elaborates on how the success of the site selection was due to the community members, ferry riders and officials working together. The site selection of the ferry also moves the region one step forward in establishing a well functioned ferry station. The design and construction of the terminal still needs to be funded while the environmental process needs to be completed as well. Constructing the brand new Elliot Point terminal will cost about $120 to $130 million dollars. So far, $90 million dollars has been dedicated for the project from the legislature and an additional $29 million dollars from federal funding.

The federal funding money will be utilized to complete the EIS statement which focuses on the environmental impact of establishing the ferry terminal. The environmental statement is expected to be completed in the year 2013. The current ferry in the region had nearly 4 million riders in the year 2011 so an expansion would definitely help reduce the traffic. The local Mayor whose name is Joe Marine elaborates on how the new terminal will improve the bus service while also improving local access.

Overall, the new ferry terminal will be beneficial to the local community.

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