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Attachment 2 - Economic Development Site Related SWOT Analysis
Agenda ✓ Overview ✓ Why is Economic Development 4 �Q Important to the County ✓ Background Review ✓ Study Findings ✓ Study Recommendations • ✓ Wrap -up discussion /� THE RESEARCH TRIANGLE PARK TIMMONS GROUP • _ WlCarolanbcRealty 2 ORANGE COUNTY Copyright ® 2012-2018 Timmons Group All Rights Reserved NORTH CAROLINA 1/22/2018 1 Why do you need Economic Development? ✓ Creates "Living Wage" Jobs & Opportunity for ALL your citizens (blue collar and white collar jobs) ✓ Local tax revenue from Real Estate and Machinery & Tools ✓ State tax revenue from Employee Wages & State Income Tax ✓ Helps build resources for your locality and state ✓ Creates wealth within your community ✓ Social Justice - allows you to build schools, pay for healthcare and other social programs as well as help set up training programs for your citizens It's about YOUR COUNTY's FUTURE! TIMMONS GROUP NAICamiantic Realty 3 ORANGE COUNTY Co ht ©20122018 .... .,..Y.,.,a ��„1„�, NORTH CAROLINA P7�'�g Timmons Group AI I Rights Reserved Where Orange County stands today.... ✓ Lacking "Ready to Go" Sites and Buildings ✓ Not as much developable property as we thought once you place constraints on the properties & remove inhabited properties ✓ Ever increasing competitive market with shorter and shorter timelines for decisions to be made (i.e. Need diverse "Ready to Go" Product) ✓ Properties are overpriced compared to adjacent localities (Alamance) ✓ Lacking water & sewer capacity (gallons per day) in districts ✓ Missing out on opportunities for Prospects due to lack of Sites and Buildings as well as inadequate water & sewer capacities TIMMONS GROUP NAICaralantic Realty ORANGE COUNTY Co ht 0c2012-2018 �`m ---4 NORTH CAROLINA TimmP7T�g ons Group Al CM l Rights Reserved 1/22/2018 L Desired Outcomes of Study ✓ More "balanced" Residential vs. Non - Residential Split of Tax Revenues ■ Try to accomplish 70/30 Split Countywide ✓ Create Living Wage Jobs for existing residents ✓ Preserve Uniqueness & Culture of Orange County ✓ Economic Development outcomes should be a major consideration for infrastructure investments ✓ Better coordination with other County Departments and Utility Systems (i.e. Planning, Utilities, etc.) TIMMONS GROUP NMicarolanticRealty ORANGE COUNTY Co ht02012 -2018 .�.��.���,w, _,mwm��, 1 NORTH CAROLINA P7�'�g Timmons Group AI I Rights Reserved The Big Picture ORANGE COUNTY NORTH CAROLINA NORTH CAROLINA ✓ Economic Development Partnership of NC and North Carolina is moving up the business rankings ✓ Need to align your sites & infrastructure with the market ✓ It takes time and resource (financial and political) to commit to a long -term Economic Development Strategy ✓ Orange County appears to be at the intersection of Commerce and Trade with 1 -40 and 1 -85 merger ✓ We're bullish on the future of Orange County ✓ Now is the time to align your resources and commit to "make your own future" ✓ Economic Development is getting increasingly competitive •'••sue'• m TIMMONS GROUP NAICarolanticReafty 6 ORANGE COUNTY Copyright CCG2012 -2018 - l w NORTH CAROLINA Timmons Group Al CM `�`� I Rights Reserved 1/22/2018 3 Site Selection Magazine Site Selectors' Top Location Criteria Location Factor Orange County 1 Existing Workforce Skills Strong 2 State and local tax scheme Marginal to Competitor Localities 3 Transportation Infrastructure Strong 4 Utility Infrastructure Lacking / Needs Improvement 5 Land / Building prices & supply Marginal / High 6 Ease of permitting & regulatory procedures Marginal 7 Flexibility of Incentive Programs Neutral 8 Right -to -work State Strong 9 Availability of incentives Neutral 10 Access to higher education resources Strong • Source: Site Selection Survey of Corporate RE Executives 2015 • TIMMON� S G• f R OUP N A ICarolantiC Realty ORANGE COUNTY Copyrigh ,l 2012 -2018 NORTH CAROLINA Timmons Group All Rights Reserved How fast are prospects moving? Timelines for Project Announcements (in Months) 10 - 9 9 5 5 5 5 5 5 3 2 ■ Initial Contact to 0 Y" Announcement... ate o� ,�e o� cad scA- R' o,* 5co� Q-\\S Kati K, c� Loci Lame $4.93 billion investment & over 14,000 jobs 2014 — Boeing announced $1.1 billion & 2,000 add'i jobs T I M M O N S GROUP • _ NAlearolantic Realty 8 ORANGE COUNTY C,pyright © 2012-2019 ' NORTH CAROLINA Timmons Group All Rights Rcs—cd 1/22/2018 1H Orange County — Unique Assets & Opportunities ✓ Two Interstates: 1 -85 and 1 -40 Merge ✓ UNC Chapel Hill & Durham Technical 4 Q Community College ✓ Adjacent to Research Triangle Park ✓ RDU and GSO International Airports ✓ On the cusp of RTP and Piedmont Triad ✓ Diverse Culture & Millennial "Coolness" Factor ✓ Rural Character with Urban Access /Amenities Acts as a "Gateway" for Northeast US (via 1 -85) and Eastern NC (via 1 -40) to Western NC and THE RESEARCH Southeastern US TRIANGLE PARK TIMMONS GROUP _ NAICamlantic Realty 9 ORANGE COUNTY Copyright 0 20122018 .., .,..� NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 `, 1/22/2018 Orange County — Regional Perspective _'/1tLLSBUR0�1 I f3[df � , ♦LH (.�1 W'I'1.1. 156 II56 :tlS'UN \MN1N nN IIAMI ^f� ..•� e•; iil.Nilnrcn NGE GREENSBORO,15,' LANIL' L7URHA DU AIRh j Tn �\ / r r /---- I' LEIGH �j 6 169, �. ASNEBOIIO r [I N L ] s[ Ail _4-171S r ttiY .. Eli cNFL.. W ® IY F5�1.. �• •� . nNrr,nul xr - nraoNi _ _ .. TIMnO !,! ROUP Interstate EAYET 1U.E - s+ �CE UNTY x it aloutr Ilnxl. Lfl1, � ]IY e ul� 7G�SI INA L Orange County — 2015 NCDOT Interstate Traffic Counts _'/1tLLSBUR0�1 •" Q 7 41s- ry.M�E6AN _ smrd r r �. rnaett )P � v Interstate 2015 Traffic Counts r z 1 -40 58,000 to 73,000 y 1 -85 43,000 to 47,000 1 -40 & 1 -85 98,000 to 103,000 I `'-r . 1, pOw s4, clrnperxlcc Orange County vs. Rest of NC Comparative Traffic Counts County (City) Interstate 2015 NCDOT Traffic Counts Durham (Durham) 1 -85 46,000 to 96,000 1 -40 90,000 to 181,000 Wake (Raleigh) 1 -40 104,000 to 167,000 Alamance (Burlington) 1 -40 & 1 -85 111,000 to 123,000 Guilford (Greensboro) 1 -40 & 1 -85 69,000 to 135,000 Mecklenburg (Charlotte) 1 -85 108,000 to 178,000 1 -77 74,000 to 182,000 Forsyth (Winston - Salem) 1 -40 52,000 to 103,000 1 -40 Bus 50,000 to 77,000 Orange 1 -40 58,000 to 73,000 1 -85 43,000 to 47,000 1 -40 & 1 -85 98,000 to 103,000 T I M M O N S GROUP _ NAICarolantic Realty 13 ORANGE COUNTY Co py' htC) 2012 -2018 NORTH CAROLINA '�g Timmons Group All Rights Reserved Natural Opportunities - 8 Interstate Interchanges within the CITAN's and EDD's 1 — r M - _7 jj «L TE Interstate 2015 Traffic Counts 1 -40 58,000 to 73,000 1 -85 43,000 to 47,000 J 1 -40 & 1 -85 98,000 to 103,000 Ll ll Z. 5 << 1 5 .. - - � a A i- 91 Y s r s� �t 1/22/2018 7 1/22/2018 Opportunity Costs - Does Water &Sewer Matter? What Mfgr Opportunities has Orange missed out on... Initiation Announce Orange Site Size Building Size Investment Jobs Date Industry Industry Type Investment Jobs (acres) (SF) Water (GPD) Sewer (GPD) Apr 2015 Italian Specialty Food Processing $50 Mil 300 Sheetz Bakery 150,000 Exp 30,000 - 60,000 30,000 - 60,000 Meat Mfgr 250,000 300,000 June 2015 Manufacturing Lab Biopharmaceutical $450 -600 Mil 275-300 30 Mebane - NC 100,000 - 80,000 - $35,374 186 acres 450,000 submitted Center Commerce Park 160,000 130,000 Aug 2015 Manufacturing Pharmaceutical $325 Mil 500 15-20 Mebane - NC 636,000 636,000 Sep 2015 Manufacturing Air Separation $35 Mil 15-25 5-10 72,000 - 122,000 11,500 - 21,600 Nov 2015 Manufacturing Food Processing $20 -$25 Mil 100 30 150,000 Exp 100,000 100,000 $46,322 20 acres 135,000 Submitted 200,000 Jan 2016 Manufacturing, Food $35 Mil 150 20-40 Mebane - NC 52,800 - 264,000 52,800- $35,931 Processing 160,000 Submitted Industrial Center 264,000 Sep 2016 Manufacturing Chemicals $65 - $75 Mil 60-70 40-100 100,000 300,000- 300,000- $78,750 10 acres Industrial Center 400,000 400,000 Oct 2016 Manufacturing Textile $30 - $70 Mil 175-260 25-35 $35,374 to 10 to 160,000 500,000 470,000 Feb 2017 Manufacturing Biopharmaceutical $150 - $200 Mil 150 10 133,000 107,000 Mar 2017 Manufacturing Medical $180 Mil 600 50 -75 200,000 200,000 June 2017 Manufacturing Food Processing 75-100 30 550,000 250,000 200,000 $1.3 to $1.6 2,400 to 2,555 150,000 to 2.4 to 2.8 2.2 to 2.6 Totals Billion Jobs 550,000 MGD MGD TIMMONS GROUP _ Really IVilI - malantic 15 ORANGE COUNTY Copyright 020122018 e �,M��., - NORTH CAROLINA Timmons Group All Rights Reserved Opportunity Costs? What has Orange County lost out on to Alamance... Announce Orange Company Site Location Investment Jobs Average Site Size Building Size Date County? Wage (SF) Sep 2012 3 Visits Sheetz Bakery Burlington (1737 $52,000,000 254 44 acres 250,000 White Kennel Rd.) Dec 2013 Sites not Wal -Mart Dist Mebane - NC $100,000,000 550 $35,374 186 acres 450,000 submitted Center Commerce Park Jul 2015 3 Visits Lidl Dist Center Mebane - NC $125,000,000 80 full time $80,000 & 90 acres 850,000 Commerce Park 120 hourly $20.00/ hr Aug 2016 Sites Prescient Mebane - NC $18,800,000 205 $46,322 20 acres 135,000 Submitted Commerce Park Nov 2016 Sites Lotus Bakeries Mebane - NC $50,000,000 60 $35,931 20 acres 160,000 Submitted Industrial Center Nov 2017 4 Visits Airgas Mebane - NC $47,000,000 35 $78,750 10 acres Industrial Center Totals $392,800,000 1,304 $35,374 to 10 to 160,000 $80,000 186 ac to 850,000 RACarolarltic Reafty 6 ORANGE COUNTY T I M M O N S GROUP e Copyright ® 2012-2018 _ NORTH CAROLINA Timmons Group All Rights Reserved Project Sky — Large Grocery Distribution Center ✓ $328 Million Investment ✓ 1,100 jobs ✓ $41,000 / yr ( "Living Wage" Jobs) ✓ Orange County Submitted ✓ 4 site visits to Buckhorn Road Sites ✓ Met in closed session to pre- authorize local incentives ✓ TBD where they will locate.... copr;ghtozoGRO tic Realty 17 ORANGE COUNTY TIMMONS GROUP N�ICarolan .1 v.^°" NORTH CAROLINA Timmons Group AI Rights Reserved What has Orange County had a legitimate shot to win? Potential Investment P Opportunities from P Manufacturing $ 2012-2017 2,400 to 2,555 Distribution / Alamance $ $393 Million 1 1,304 Project Sky $ Totals $ $2.0 to $2.3 Billion 4 4,804 to 4,959 23wp TIMMONS GROUP ORANGE COUNTY Copyright -12012 -201 NORTH CAROLINA Timmons Group All Rights Reserved 9 1/22/2018 Potential Investment P Potential Jobs P Manufacturing $ $1.3 to $1.6 Billion 2 2,400 to 2,555 Distribution / Alamance $ $393 Million 1 1,304 Project Sky $ Totals $ $2.0 to $2.3 Billion 4 4,804 to 4,959 1/22/2018 Water & Sewer Capacities for EDD's / CITAN's 1 Permitted water and sewer capacity and 2016 average daily water demand per NC Local Water Supply Plan, actual availability to specific sites is still being determined TIMMONS GROUP _ 14AICarolantiCReafty is ORANGE COUNTY Copyright ®2012 -2018 NORTH CAROLINA Timmons Group All Rights Reserved Methodology for Site Analysis ✓ Sites Analysis • For Sale / Vacant • Less than 5 Acres / Residential (excluded from developable area) • Greater than 5 Acres with structures on land (excluded need to approach land owners) ✓ Environmental / Physical Constraints • Streams, Buffers • Easements • Topography • Wetlands, Floodplains TIMMONS GROUP Copyright ® 2012 -2018 Timmons Group All Rights Reserved ✓ Jurisdictional • Impervious limitations • Landscape Buffers • Building setbacks • Zoning • Highway overlay buffer ✓ Additional Considerations • Adjacent land use • Aesthetics • Engineering Judgement _ NAICarolantic Realty 20 ORANGE COUNTY a^w'- -l— NORTH CAROLINA 1/22/2018 10 Water 2016 Avg. Daily Available to the Existing Sewer EDD or CITAN Water Provider Capacity Water Demand Site Sewer Provider Capacity 1 (MGD)1 (MGD) 1 Buckhorn EDD Mebane 6 1.58 200,000 GPD Mebane 250,000 GPD Eno EDD Durham 37.9 27.7 1 MGD Durham 100,000 GPD (Avail Oct 2019) Hillsborough Hillsborough 3.09 1.47 200,000 GPD Hillsborough 108,000 GPD EDD (Avail Aug 2019) Buckhorn CITAN Mebane 6 1.58 200,000 GPD Mebane 250,000 GPD West Efland Orange - Alamance 2.05 0.60 0 GPD Mebane 250,000 GPD CITAN Water (Avail 2020) East Efland Orange - Alamance 2.05 0.60 0 GPD Mebane 250,000 GPD CITAN Water (Avail Dec 2019) Hillsborough Hillsborough 3.09 1.47 200,000 GPD Hillsborough <200,000 GPD CITAN Hillsborough Hillsborough 3.09 1.47 200,000 GPD Hillsborough <200,000 GPD CITAN U5 70/ Hillsborough 3.09 1.47 200,000 GPD Hillsborough <200,000 GPD Cornelius 1 Permitted water and sewer capacity and 2016 average daily water demand per NC Local Water Supply Plan, actual availability to specific sites is still being determined TIMMONS GROUP _ 14AICarolantiCReafty is ORANGE COUNTY Copyright ®2012 -2018 NORTH CAROLINA Timmons Group All Rights Reserved Methodology for Site Analysis ✓ Sites Analysis • For Sale / Vacant • Less than 5 Acres / Residential (excluded from developable area) • Greater than 5 Acres with structures on land (excluded need to approach land owners) ✓ Environmental / Physical Constraints • Streams, Buffers • Easements • Topography • Wetlands, Floodplains TIMMONS GROUP Copyright ® 2012 -2018 Timmons Group All Rights Reserved ✓ Jurisdictional • Impervious limitations • Landscape Buffers • Building setbacks • Zoning • Highway overlay buffer ✓ Additional Considerations • Adjacent land use • Aesthetics • Engineering Judgement _ NAICarolantic Realty 20 ORANGE COUNTY a^w'- -l— NORTH CAROLINA 1/22/2018 10 Buckhorn CITAN — Case Study ��i /��s.� "bra /�,✓i r�, . . ,�. /ir. i 1/22/2018 11 1/22/2018 12 Overall Summary — Developable Acres .... CITAN totals Total Environmental RAW Description Parcels Acres coverage / Developable constraints Acres* 425 589 87 502 Parcels Greater than 5 Acres 65 1,094 238 856 ith Structures vailable Parcels and Parcels Greater than 5 Acres 59 1,326 290 1,037 ithout Structures Totals 549 3,010 615 2,396 ACTUAL Developable Acreage of PODS = 668 Acres or 22% * Assumes no property constraints, structures, setbacks or parcel boundaries TIMMONS GROUP _ NAICarolanticReaty 2e ORANGE COUNTY Copyright Gc 2012 -2018 NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 13 Overall Summary — Potential Sites EDD /CITAN Potential Sites Devolpment Pod Size Comments / Issues Range(AC) Buckhorn CITAN 6 5 to 49 Inconsistent zoning, limited access Buckhorn EDD 9 6 to 98 Limited access north of interstate, asking prices too high, adjacent to schools, fields & residential West Efland CITAN 1 52 Limited access, Zoned AR East Efland CITAN 1 79 Limited water / limited access to east Hillsborough EDD 2 39 to 44 Sagefield Business Park No sewer, limited access & environmental Eno EDD 4 8 to 11 constraints NOTE: There are only 6 sites f in the EDD /CITAN's that could accommodate a i Morinaga today! TIMMONS GROUP Copyright © 2012 -2018 Timmons Group All Rights Reserved Overall Summary — Developable Acres Total County Acreage — 272,546 Acres EDD's Acreage within EDD's — 2,379 Acres GIS Acreage (Excluding R /W) —1,856 Acres Available & Vacant Lands — 832 Acres Developable Pods - 454 Acres - 0.17% of Total land in County CITAN's Acreage within CITAN's —1,494 Acres GIS Acreage (Excluding R /W) —1,154 Acres Available & Vacant Lands -495 Acres Developable Pods - 214 Acres - 0.08% of Total land in County *Numbers above Excludes Hillsborough CITAN and Cornelius * *Developable Pods consider vacant and or available lands, environmental features, jurisdictional setback /buffers, and engineering judgement '-7000 � TIMMONS GROUP _ NAIcarolanticRealty 28 ORANGE COUNTY Copyright ®2012 -2018 NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 14 Industrial Investment & Trends • Morinaga: $48 Million for 120,000 SF ($400 per SF) • Water & Sewer Requirements: 40,000 GPD • Site Size: 21 acres ✓ Adjacent Parcel: 55 acres ✓ Potential Build -out: 360,000 SF (3 Morinaga's) Industry $ /SF Investment Potential Investment Potential Annual Tax Revenue Existing W &S Capacity? Retail / Office / Commercial $150 $54,000,000 $452,358 Yes Logistics /Distribution $200 $72,000,000 $603,144 Yes Food & Beverage $400 $144,000,000 $1,206,288 Marginal Manufacturing /Bio $600 $216,000,000 $1,809,432 Marginal IT /Data Centers $1,200 $432,000,000 $3,618,864 No •••• TIMMONS GROUP Copyright ® 20122018 Timmons Group All Rights Reserved ro ntic Realty 29 ORANGE COUNTY 0 N�ICa la NORTH CAROLINA What can Economic Development afford the County? A realistic scenario... Capital Investment Capacity (20 yrs @ 4%) $100,000,000 Real Estate Tax Rate: $0.8377 per $100 $200,000,000 $1,675,400 $23,040,000 $300,000,000 $2,513,100 $34,560,000 $400,000,000 $3,350,800 $46,080,000 $500,000,000 $4,188,500 57,600,000 $600,000,000 $700,000,000 $5,026,200 $5,863,900 $69,120,000 $80,640,000 $800,000,000 $6,701,600 $92,160,000 $900,000,000 $7,539,300 $103,680,000 $1,000,000,000 $8,377,000 $115,200,000 T I M M O N S GROUP _ NAICarolantic Realty 30 ORANGE COUNTY Copyright ® 2012 - 2018 NORTH CAROLINA Timmons Group All Rights Reserved Real Estate Investment Annual Tax Revenue Capital Investment Capacity (20 yrs @ 4%) $100,000,000 $837,700 $11,520,000 $200,000,000 $1,675,400 $23,040,000 $300,000,000 $2,513,100 $34,560,000 $400,000,000 $3,350,800 $46,080,000 $500,000,000 $4,188,500 57,600,000 $600,000,000 $700,000,000 $5,026,200 $5,863,900 $69,120,000 $80,640,000 $800,000,000 $6,701,600 $92,160,000 $900,000,000 $7,539,300 $103,680,000 $1,000,000,000 $8,377,000 $115,200,000 1/22/2018 15 Other factors to consider... ✓ Curb Appeal & Compatible uses are factors ✓ Ease of access to Interstates & Turning Movements ✓ Residential Development & Potential Traffic Patterns v, Buckhorn EDD TIMMONS GROUP _ NAICarolanticRealty 31 ORANGE COUNTY Copyright ®20122018 " NORTH CAROLINA Timmons Group All Rights Reserved Land Prices RevisitedPNGE Cry` Alamance County — Comparable Land Sales SOS ��'�N CPPD�aP Site Location / Name Sale Date Acreage Sales Price Price Per Acre Lake Lantham Road & Hull Street May 30, 2014 27.47 $665,000 $24,208 S. North Carolina 62 Highway Feb 25, 2015 37.42 $887,500 $23,717 Park Center Drive June 16, 2015 151.8 $6,000,000 $39,516 3815 Melville Commerce Parkway Aug 3, 2015 87.53 $2,845,000 $32,503 Gibson Road Oct 14, 2015 22 56 $682,500 $30,253 1136 Cedarcrest Drive Jan 21, 2016 53.72 $1,860,000 $34,624 Totals - 2014 through 2017 YTD 380.5 $12,940,000 $34,008 Average- 2014 through 2017 YTD 63.42 $2,156,667 WICarolantic Realty 32 ORANGE COUNTY T I M M O N S GROUP _ Copyright ® 2012-2018 NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 16 Land Prices Revisited • 7w' Durham County - Comparable Land Sales Site Location / Name Sale Date Acreage Sales Price Price Per Acre Patriot Park/ 4050 Patriot Drive 7/28/2017 101.56 $4,300,500 $42,344 W Alexander Dr. & NC Hwy 55 9/1/2017 26.08 $1,195,000 $45,821 001 Stirrup Creek Dr. 12/20/2016 23.78 $1,406,000 $59,125 Former Sumitomo Land /76 TW Alexander Dr. 7/20/2016 14.62 $1,402,000 $95,896 Self Storage Site / 3415 US Hwy 70 11/2512015 7.17 $761,500 $106,206 Stirrup Creek Dr., Lot 3 (A &B spec) 7/25/2016 13.07 $1,029,560 $78,773 Stirrup Creek Dr., Lot 4 3/31/2016 22.15 $1,423,037 $64,245 Slater Road Office Land / 702 -720 Slater Rd. 10/30/2015 14.49 $2,000,000 $138,026 618 Stirrup Creek Dr. 7/29/2015 17.15 $806,935 $47,052 yron Distribution Warehouse Site / 2450 S. Miami Blvd. 8/5 /2015 12.6 $1,017,457 $80,751 Totals - 2014 through 2017 YTD 252.67 $15,341,989 $60,719 Average - 2014 through 2017 YTD 25.27 $1,534,199 TIMMONS GROUP Copyright ® 20122018 Timmons Group All Rights Reserved MMNAICarolantic Reality 33 ORANGE COUNTY °^^ ^---- y^'- - I°•"° NORTH CAROLINA Current Listings on Real Estate Market Alamance County (as of Dec 31, 2017) Size Acres Price Price per Acre Days on Market 53.77 $2,009,100 $37,365 1,515 202.72 $3,238,720 $15,976 194 29.82 $596,400 $20,000 1,332 79 $1,333,800 $16,884 211 38.03 $2,700,000 $70,997 415 33.7 $1,200,000 $35,608 325 25.1 $964,600 $38,430 157 603 $28,642,500 $47,500 3,021 43.48 $1,200,000 $27,599 472 61.79 $750,000 $12,138 3,994 55.3 $1,750,000 $31,646 187 30.87 $1,591,745 $51,563 850 104.7 $3,831,405 $33,809 1,056 TIMMONS GROUP Copyright ® 20122018 Timmons Group All Rights Reserved Average Price Per Acre = $33,809 �ph1GE COG< FAR _ MACarolantic Realty 34 ORANGE COUNTY 19 NORTH CAROLINA 1/22/2018 17 Current Listings on Real Estate Market Durham County (As of Dec 31, 2017) Size Acres Price Price per Acre Days on Market 25.60 $991,664 $38,737 1,614 85.32 $3,594,600 $42,131 933 65.33 $4,100,000 $62,758 198 38.72 $1,500,000 $38,740 102 181 $5,430,000 $30,000 593 50 $2,500,000 $50,000 346 129.47 $2,985,000 $23,056 170 82.21 $3,014,466 $40,774 56 TIMMONS GROUP Copyright ® 20122018 Timmons Group All Rights Reserved Average Price Per Acre = $40,744 DURHAM COUNTY [IQ � N . rolantic Realty m ORANGE COUNTY _ ��I ^�^� '- ^'� °'^ °��'�'� NORTH CAROLINA Current Listings on Real Estate Market Orange County (As of Dec 31, 2017) Size Acres Price Price per Acre Days on Market 53.25 $1,465,000 $27,512 295 40.38 $1,211,400 $30,000 2,014 56.9 $2,276,000 $40,000 345 79.23 $5,942,250 $75,000 473 50 $3,000,000 $60,000 933 80 $3,800,000 $47,500 148 149 $12,665,000 $85,000 240 58.85 $2,059,749 $35,000 155 62.51 $3,300,000 $52,792 1,451 34.37 $1,800,000 $52,371 109 47.5 $2,375,000 $50,000 295 47.41 $3,081,650 $65,000 1,360 63.28 $3,581,337 $51,681 652 • � •EE TIMMONS GROUP Copyright C 20122018 Timmons Group All Rights Reserved Average Price Per Acre = $51,681 ORANGE COUNTY NORTH CAROLINA _ NAICarolantiC Realty 36 ORANGE COUNTY NORTH CAROLINA 1/22/2018 • Relative Comparison of Real Estate Pricing Low Average Average Relative to ($ per Acre) ($ per Acre) ($ per Acre) Orange Orange $85,000 $27,512 $51,681 Alamance $51,563 $12,138 $33,809 Orange is 53% higher Durham $62,758 $23,056 $40,774 Orange is 27% higher . . pNCE �� eQs • �� ORANGE P t1l, COUNTY CPN NORTH CAROLINA T I M M O N S GROUP S` NAICarolantic Realty 37 ORANGE COUNTY Copyright P7'�'�g NORTH CAROLINA Timmons Group All Rights Reserved County High Low Average Average Relative to ($ per Acre) ($ per Acre) ($ per Acre) Orange Orange $85,000 $27,512 $51,681 Alamance $51,563 $12,138 $33,809 Orange is 53% higher Durham $62,758 $23,056 $40,774 Orange is 27% higher Buckhorn EDD — Optimistic Build Out 3.1 M SF Why are projects NOT locating here? • Adjacent Residential Development • Adjacent to Schools / Soccer Fields • Limited access due to rail on north side of interstate • Lack of Water & Sewer • Land costs significantly higher than competing sites in adjacent locals E E T I M M O N S GROUP _ NAI Carolantic Realty Copyright Gc 2012 -2018 Timmons Group All Rights Reserved ORANGE COUNTY NORTH CAROLINA 1/22/2018 19 Conclusion & Key Take Aways ✓ Data Indicates Orange County has Legitimate Prospect Activities and Opportunities to close deals ✓ There is less developable acreage than originally anticipated in the EDD's and CITAN's ✓ Water & Sewer capacity is an issue for recruiting high $$ per SF industries (Food & Beverage, Manufacturing /Bio, IT /Data Centers) ✓ Orange County has some legitimate properties that can be developed, however, the County needs to be thinking beyond the existing CITAN's and EDD's ✓ Economic Development opportunities can generate significant tax revenues to help pay for Infrastructure, Schools and other key County Services in addition to creating "living wage" jobs ✓ Land Pricing is an issue that needs to be addressed TIMMONS GROUP NAICarolanticRealty 39 ORANGE COUNTY Coht ©20122018 ll "...�"�,��� "-.,,�".�� NORTH CAROLINA P7�'�g Timmons Group AI I Rights Reserved Immediate Recommendations ✓ Enter discussions with Mebane to increase capacity within water & sewer agreement ✓ Have Planning Department interact with the Economic Development Department on a regular (monthly) basis and during infrastructure planning stages. ✓ Work with the Towns & revisit intergovernmental agreements to make sure they are conducive to the needs of Economic Development ✓ Approach property owners about willingness to sell their properties within the Buckhorn, Efland and Hillsborough EDD's / CITAN's TIMMONS GROUP NAICarolanticRealty 4o ORANGE COUNTY Copyright CCG2012 -2018 — l w NORTH CAROLINA Timmons Group Al CM `�`� I Rights Reserved 1/22/2018 20 Immediate Recommendations ✓ Prioritize development of the top sites in EDD's / CITAN's • Buckhorn CITAN: Property on Ben Wilson Road • Buckhorn EDD: Rohl / Collins Property, Flea Market Property, Clark Property • East Efland CITAN: 304 Mt Willing Road — Rezone to align with development goals • Hillsborough EDD: approach property owner on NW quadrant of intersection of 1 -40 and Old 86 to gage willingness to sell. Continue activity at southwest quadrant. TIMMONS GROUP NAICa olanticRealty 41 ORANGE COUNTY CopNight O 18 201220 0 ••••' .,. ^,�, ° °. NORTH CAROLINA Timmons Group AI I Rights Reserved Immediate Recommendations Complete necessary due diligence to achieve Tier 4 status on top sites. ■ Geotechnical, Wetland Delineations, Topographic & ALTA Boundary Surveys, etc. Tier 4 is considered "Certifiable" status and has eliminated any UNKNOWNS or RISKS regarding site or infrastructure development that could negatively impact timeline for development. Generally 9 -12 months of development timeline. BUDGET: Site dependent but generally $1,000 to $1,500 per Acre with infrastructure already in place (significantly increases value of property on a per acre basis) Afinh� •• ; ;* TIMMONS GROUP — CopyrightCCG2012 -2018 Timmons Group All Rights Reserved Have Nothing 8 Neetl to Flntl Siles • • � ��� R — lend, Willing Seller, No Control Site co fed, Zoned /Comp plan minimal due diligence SEMI Master Plen, Eatimeted C,,ts, Sigol/rcant due diligence ' Certifiable Site, Inlrastructum, Property issues cleared - 'Weedy to conshucY', Permits In hand 1/22/2018 21 Immediate Recommendations Consider adjusting boundaries of EDD's /CITAN's AND Water & Sewer Districts to include large tracts adjacent to these districts with low cost of development (utility extensions, etc.). Significant property within the EDD's and CITAN's have been lost to Non or Minimal Tax Paying entities such schools, soccer fields, solar farms, etc. In order to potentially gain that area back there may be opportunities to expand or redraw the boundaries of the EDD's and or CITAN's. There are a few larger tracts with minimal environmental impacts located near or adjacent to the existing EDD's/CITAN's that could be explored; however this may mean adjusting the water sewer agreements. BUDGET. $10,000 to $15,000 in Consultant time to evaluate parcels as well as Staff Time TIMMONS GROUP _ NAICarolantic Realty as ORANGE COUNTY Copyright C&12012-2018 `m '= NORTH CAROLINA Timmons Group All Righu Reserved 1/22/2018 22 Thinking outside the EDID's and CITAN's Buckhorn CITAN — Potential Expansion Properties � p ---1 10 15%-P� Creek Ch.— Fl— Hazard E,. A Greater Slops r S '! "M 1/22/2018 23 Study Recommendations Complete a countywide water and sewer study to identify options to increase water and sewer capacities. A countywide water and sewer study would identify opportunities to increase and expand water and sewer capacities within each service area. A full study would help the County to better understand the limiting factors and what the cost and timelines are needed to increase the availability. The ED staff is losing opportunities regularly based on not being able to meet the demands for water and /or sewer. This needs to be completed on behalf of the County, and not the jurisdictions or authorities who own and manage the water & sewer systems. BUDGET: $75,000 to $100,000 TIMMONS GROUP • _ NAICarolanticRealty a8 ORANGE COUNTY Copyright CCG2012 -2018 --l- NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 24 Study Recommendations Complete a GIs Site Selection Study to identify sites with greatest development potential near or adjacent to development corridors. A GIS site selection study is a non -bias computer based site selection study that can look over all parcels within a county or selected area to determine developability based on selection criteria defined. For example, if the parameters were to identify all parcels with XX acres of developable acres adjacent to rail within XX miles of the interstate, queries would be run to find the best parcels available. Once the data is assembled running queries can be run quickly. BUDGET: $15,000 to $25,000 TIMMONS GROUP NAICarolanticRealty a9 ORANGE COUNTY Co ht ©20122018 ll "...�"�,� ",- . "�".�� NORTH CAROLINA P7�'�g Timmons Group AI I Rights Reserved Study Recommendations Consider gaining "control" of properties (i.e. option agreements) with high development potential. These sites would be identified with the GIS Site Selection Study. Approximately 60 -70% of inquiries come in for Shovel/ Pad Ready Sites and /or Existing Buildings. Shovel ready and speculative building has some risk based on the financial investment needed to develop sites; however, it is best way to reduce development timelines and has proven to be a successful model in other locations throughout the state. BUDGET. $100 to $200 per acre for options TIMMONS GROUP K41carolanticReany e0 ORANGE COUNTY Copyright 0c2012-2018 CM NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 25 Study Recommendations Consider advantages of developing "Ready to Go" product. Could form a Public- Private Partnership to accomplish this task. • Shovel / Pad Ready Sites • Spec Buildings Approximately 60-70% of inquiries come in for Shovel/ Pad Ready Sites and /or Existing Buildings. Shovel ready and speculative building has some risk based on the financial investment needed to develop sites; however, it is best way to reduce development timelines and has proven to be a successful model in other locations throughout the state. BUDGET: $50 to $100 per SF for Spec Buildings (including site work) $50,000 to $100,000 per acre for Shovel /Pad Ready Sites TIMMONS GROUP `® _ NAICarolantic Realty 51 ORANGE COUNTY ^°° ° °"^, �. ",'° "" NORTH CAROLINA Cop}�'ight ©20122018 Timmons Group AI I Rights Reserved �• • ••• • • • � • l • Nance 1/22/2018 26 North Carolina Commerce Park — Regional Partnership between Alamance, Mebane & Graham ✓ 1,200 acre Business Park (originally 30 -40 landowners) ✓ Less than 3 yrs to: • Land Assembled, Zoned & Utilities Installed • Landed "Project Swordfish" — Walmart DC with $100M & 450 jobs ✓ To Date: $240 Million in Investment & 950 new jobs created • Mebane invested over $150,000 for easements / environmental work prior to full partnership coming together • Equitably share in costs ($12+ Million in infrastructure & utilities) and benefits ✓ Leverage state resources such as road construction and economic incentive funds ✓ Community leaders have a collaborative mindset TIMMONS GROUP NAICarolanticRealty 53 ORANGE COUNTY Cop},'ight ©20122018 ° —. ° ,_. NORTH CAROLINA Timmons Group AI I Rights Reserved Study Recommendations Reinitiate Discussions & explore developing a research park with LINC- Chapel Hill and taking advantage of the research and entrepreneurial culture of the Research Triangle Park (RTP). Developing a relationship with UNC and developing a common goal to create a research park could be an easy step to help the County and University attract talent and industry to the region similar to other Universities throughout the Country. BUDGET. Staff Time TIMMONS GROUP INWICarolantic Realty 54 ORANGE COUNTY Copyright CCG2012- 2018 _ d���smwo w NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 27 Comparable University Parks ASS '/ ' RRF�RCHmN OF Creating Commwiriss ofUnomdon University Facilities Acreage Centennial Campus (North Carolina State) 1,075 Coldstream Research Campus (University of Kentucky) 735 Purdue Research Park 725 Stanford Research Park 700 UVA Research Park 562 Innovista (University of South Carolina) 500 Discovery Park (University of North Texas) 290 University Research Campus (University of Oklahoma) 277 STAR Campus (University of Delaware) 272 University Research Park (University of Wisconsin, Madison) 255 Clemson University International Center for Automotive Research 250 Innovation Quarter (Wake Forest) 200 CLIIC/�' innovista Coldstream UNNERSITY OF SOIL TH CAHOLINA RFSEARC.i'i CAMPUS ralur< UNMERSITY of KENTUCKY TIMMONS GROUP wl NAICarolan , tic Realty 55 ORANGE COUNTY Copyright ®20122018 NORTH CAROLINA Timmons Group All Rights Reserved University of Virginia Research Park ➢ 562 acres ➢ 3 million SF of Master Planned Space ➢ 500,000 SF Exist ➢ 23 Tenants ➢ 1,200 Employees T I M M O N S GROUP • _ MAICarolarltic Realty 56 Copyright ® 20122018 Timmons Group All Rights Reserved ORANGE COUNTY NORTH CAROLINA 1/22/2018 • UK Coldstream Research Campus lr'7T' 'Idsn•eam W Research Campus ➢ 735 acres Over 50 organizations in biotech, pharmaceutical, equine health, and various other industries HQ or regional facilities for companies including: Tempur Sealy, Piramal Pharma, Open Text, Komatsu, A &W Restaurants, and Henry Schein Animal Health ➢ 2,100+ employees 1.3 million square feet under roof ➢ Office and lab space available for lease Development ready land with utilities, roads, redundant electrical power, and high -speed data connections TIMMONS GROUP `� _ NAICarol; Copyright © 2012201 m 8 "Pimans Group AI I Rights Reserved Other Considerations ✓ Re- evaluate and potentially reallocate funds for existing water and sewer projects that appear to have minimal ROL ✓ Evaluate and enhance the "express" review process to make sure it is consistent with "fast- track" permitting in the site selection market. ✓ Pursue grant opportunities for top sites (this will most likely require property "control "). • Gold Leaf • Duke Energy Site Readiness Program ✓ Evaluate underdeveloped interchanges in the county (Exit 263 & 266 in particular). TIMMONS GROUP N41carolanticReany 58 ORANGE COUNTY Copyright Gc 2012 -2018 CM NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 29 Recommendation Per Area Buckhorn EDD ✓ Work with Flea Market property owner on land price vs comps ✓ Complete due diligence items for available properties ✓ Work with the City of Mebane to increase water and sewer availability Hillsborough EDD ✓ Meet with land owner for property on northwest quadrant to gage willingness to sell ✓ Extend sewer south of interstate 40 ✓ Complete Due Diligence items such as environmental investigation. TIMMONS GROUP NAICarolantic Realty 59 ORANGE COUNTY Co ht ©20122018 " "...� w,,.. " ",." NORTH CAROLINA P7�'�g Timmons Group AI I Rights Reserved Recommendation Per Area Eno EDD ✓ Investigate willingness to sell large tracts on western side of district, (potential rail sites, although these do not have sewer, long term goals show providing sewer to this area). ✓ Look at reducing size of district to minimize residential ✓ Work to develop option to make the 70/85 interchange more user friendly Buckhorn CITAN ✓ Work to rezone parcels to protect them from development that is not in the best interest of Orange County and Economic Development staff. ✓ Secure the land south of Morinaga to prevent from residential development. ✓ Look to expand water and sewer boundary agreement and extend boundary south of Bowman Road ✓ Look for opportunities to extend water service within the district. TIMMONS GROUP • _ NAICarolantic Realty s0 ORANGE COUNTY Copyright --0" -2018 NORTH CAROLINA Timmons Group .Rights Reserved 1/22/2018 30 Recommendation Per Area West Efland CITAN ✓ Study options to provide access to site ✓ Review site to determine if rail service is possible ✓ Complete an environmental investigation to determine if streams and buffers are correct. ✓ If the above can be accommodated look to extend sewer service to the properties. East Efland ✓ Work to provide access from exit 160 at Ben Johnson Road to extend to the large pod to the west. • Work with Orange- Alamance water to expand serviceability for new users in the area • Complete environmental assessments for the largest developable property • Look into options to support one large user (may require relocation new sewer) - ,,�.,. TIMMONS GROUP NAICarolantiCRealty s, ORANGE COUNTY Copynght©20122018 r— ..�,w. �w..��µ� NORTH CAROLINA Timmons Group AI I Rights Reserved Recommendation Per Area Hillsborough CITAN ✓ Look for site options to expand the existing facilities should the existing user want to remain on site ✓ On the smaller site to the north, work with residents to see willingness to sell although this is a small parcel with heavy environmental constrains make this site challenging for development. Cornelius ✓ Look to market vacant properties for redevelopment ✓ Improve aesthetics within the district. ✓ Add sidewalks and bus shelters at bus stops ✓ Improve main intersections ✓ Focus on creating pedestrian connections from neighborhoods to Cornelius Street ✓ Look for grant opportunities for redevelopment TIMMONS GROUP • _ NAICarolanticRealty u ORANGE COUNTY Copyright C&12012-2018 NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 31 A Site Selector's Perspective Additional Consultant Recommendations ✓ Regional Cooperation and Collaboration is a Major Key to Economic Development Success. ✓ Abandon the EDD & CITAN names — confusing to the Site Selection professionals relative to other localities. Label them "Economic Development Corridors" or "Development Corridors" ✓ Look at developing supplier / logistics parks for OEM's and other manufacturing companies. Orange County has a tremendous opportunity given the logistics network in place with 1 -40 & 1 -85 and proximity to RTP & Research Universities ✓ More swiftly implement Article 46 Funds for infrastructure related projects. T I M M O N S GROUP N/AICarolantic Realty 63 ORANGE COUNTY ,.... • ".• "'., ^'°"'., NORTH CAROLINA Cop}n'ight Ch 2012 -2018 Timmons Group AI Rights Reserved Questions? Thanks for your time! T I M M O N S GROUP • _ WiCarolantic Realty 64 ORANGE COUNTY Copyright CCG 2012 -201 S NORTH CAROLINA Timmons Group All Rights Reserved 1/22/2018 32