duke energy site readiness program€¦ · 1 duke energy site readiness program garner, wake...

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Duke Energy Site Readiness ProgramGarner, Wake County, North Carolina

July 31, 2015

Attracting Investment and Employment:Prepared Communities Win

Duke Energy Site Readiness Program

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This presentation has been prepared by, and remains the sole property of, McCallum Sweeney Consulting. This presentation is proprietary to McCallum Sweeney Consulting and is to be used and distributed solely to the attendees present at the session. No portion of this document may be reproduced or copied in any form or by any means otherwise disclosed to any other parties without the express written permission of McCallum Sweeney Consulting.

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Program Design: Goals and Objectives

Identify, improve, and increase awareness of industrial sites in the region that are best suited for new manufacturing facilities in Duke

Energy’s targeted growth segments.

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Review of Garner Industrial Site – Greenfield Park South

(GIS – GPS)

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Site Visual

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Technical Evaluation

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• Site – Developable, contiguous

acreage

– Topography

– Configuration

– Property control

– Zoning

– Surrounding land use

– Prior site use

– Due diligence

• Transportation– Access to interstate

• Distance

• Quality of route

• Quality of interchange

– Site ingress / egress

– Proximity to commercial service airports

– Proximity to ports

– Rail service• Feasibility

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• Utilities– Electric

– Natural Gas

– Water

– Wastewater

– Telecommunications

• Evaluate– Feasibility of providing service to the site (cost and schedule)

– Capacity of lines and systems to provide adequate utility service

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Technical Review of GIS-GPS

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LegendInformation complete, meets minimum criteriaInformation meets criteria, but could be perceived as a weaknessIssue to address, Information currently unknown

Site CharacteristicsStrengths & Weaknesses Recommendations

Property is 151.99 total acres, with 124.67 developable acres. Largest contiguous developable parcel is 61.14 acres.

Property has only one owner, Cralyn Holdings, LLC.

All due diligence studies have been completed for the property by the property owner.

Majority of park is zoned Mixed Use District, I-1 Industrial, and I-2 Industrial. A zoning change is not necessary.

Continue discussions with landowners and possibly pursue options on the property.

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Site Characteristics (Continued) Strengths & Weaknesses Recommendations

There are four existing structures onsite; all structures are vacant.

Eastern portion of property is zoned CR Community Retail. A zoning change is necessary. Schedule to rezone is typically 70 days.

10.89 acres are within the 100- and 500-year FEMA flood zones.

Streams and wetlands are located throughout the property (6,460 linear feet of jurisdictional stream and 19.02 acres of jurisdictional wetlands).

Electric transmission line runs east to west, which will impact developability.

The Phase I ESA found one onsite recognized environmental concern (REC) and two offsite RECs. Onsite REC is a 500-gallon propane underground storage tank.

Obtain cost and schedule estimates to have four existing structures removed from property.

Start rezoning process to change park’s zoning to appropriate category OR be prepared to describe in detail the rezoning process including likely timelines.

Continue developing Master Development Plan taking flood zones, wetlands, easements, etc. into consideration. Property is more likely to be developed as a park with multiple users.

Gather cost and schedule for removing the UST.


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TransportationStrengths & Weaknesses Recommendations

Property is accessed via Raynor Road, South Greenfield Parkway, and Waterfield Drive. All roads are capable of handling industrial traffic (80,000 lbs.).

Property is adjacent to U.S. Highway 70 (four-lane divided highway).

Property is 1.5 miles from I-40.

Multiple points of ingress/egress possible.

Continue developing plans to design and fund access roads/entryway.

Park will not be served by rail.

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Utility Adequacy / CapacityStrengths & Weaknesses Recommendations

12.47 kV electric distribution lines are adjacent to the property along Raynor Road and Greenfield Parkway. Existing electric distribution infrastructure can provide 3 MW service. 5 MW can be provided within 9-12 months. 10 MW can be provided in 12 months.

8-inch natural gas line runs adjacent to the property along Raynor Road and Greenfield Parkway, a 4-inch line runs adjacent to the property along Waterfield Drive and can provide 15,000 mcf per month within 6 months. A 12-inch transmission line runs along U.S. Highway 70.

12-inch water lines run along the property boundary on Raynor Road, Waterfield Drive, and Greenfield Parkway with 300,000 gpd of excess capacity readily available.

Water system has an excess capacity of 8 mgd, factoring average utilization.

Continue developing plans, including cost and schedule, for extending utility infrastructure to the various parcels within the park.


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Utility Adequacy / Capacity (Continued)Strengths & Weaknesses Recommendations

A 10-inch wastewater line is adjacent to the property along Waterfield Drive with 2.4 mgd of total capacity and connects to a pump station with 325,000 gpd of capacity. Pump station may need some upgrades and will cost approximately $50,000.

Wastewater system has an excess capacity of 20 mgd, factoring average utilization.

Telecommunications infrastructure is adjacent to the property.

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OtherStrengths & Weaknesses Recommendations

Land price has been established.

Master Plan has not been developed.

Protective covenants and restrictions have not been created for entire property.

Continue developing master plan that takes easements, wetlands, etc. into consideration.

Draft protective covenants for park that at a minimum address the following: building type, landscaping, parking, outdoor storage, setback specifications, and sign control (if property is developed as multi-user).

Marketing Evaluation

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Marketing Evaluation

• Community– Proximity to business services

– Presence of existing industries

– Job growth

– Amenities (hotels, restaurants, etc.)

• Workforce– Educational attainment

– Manufacturing employment

– Unionization

• Transportation– Interstate

– Airports • Distance

• Number of carriers

• Number of non-stop flights per day

• Project Start-up Schedule

• Site Costs

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Marketing Review of GIS-GPS

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Community / WorkforceStrengths & Weaknesses

Good ability to recruit technical and professional workforce.

Wake County had more overall job growth over the past three published years, 2011-2013 (8.6% job growth compared to NC average of 4.2% job growth).

High School Attainment in Wake County is higher than NC average;o Wake County: 91.6%o NC Average: 84.9%

Bachelor’s Degree Attainment in Wake County is higher than NC average;o Wake County: 48.0%o NC Average: 27.3%

Moderate union activity in Wake County. Wake County has had seven union elections, and six wins reported. (2005 to August 2015).

Percentage of workforce employed in manufacturing is 5.7% for Wake County (2013), a rate lower than the state of North Carolina at 13.4%.

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TransportationStrengths & Weaknesses

Property is accessed via Raynor Road, South Greenfield Parkway, and Waterfield Drive. All roads are capable of handling industrial traffic (80,000 lbs.).

Property is adjacent to U.S. Highway 70 (four-lane divided highway).

Property is 1.5 miles from I-40.

Multiple points of ingress/egress possible.

Property is 24 miles from Raleigh-Durham International Airport and 14 miles from Johnston Regional Airport.


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Start-Up ScheduleStrengths & Weaknesses

All infrastructure is available at the park and service is readily available:

o Electric – 2.5 MW within six months; 10 MW within 12 months

o Natural gas – 15,000 mcf within six months

o Water – 300,000 gpd readily available

o Wastewater – 200,000 gpd readily available

Zoning change is necessary for the CR Community Retail portion of the property and can be completed within 70 days.

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Site CostsStrengths & Weaknesses

Electric infrastructure should be at minimal cost to customer due to revenue credit.

Natural gas infrastructure should be at minimal cost to customer due to revenue credit.

Water, wastewater, and telecommunications infrastructure are adjacent to the park.

A range for the land price has been established with the property owner.

Four structures are located on the property. Costs to remove structures is unknown.

Potential End Users

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MSC Recommendations

• Recommendations for each site are based on: – Site-specific conditions (strengths & weaknesses)– Site selection drivers for each industry

• Key characteristics for location decisions of each industry

• Within each recommended industry, the drivers vary by facility type and size

• Should not be used as hard and fast rules for classifying sites

Recommendations

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Target Industry Location Requirements MSC JustificationBack Office/Shared Services / Headquarters

Access to workforce

Quality of life amenities

Access to airport

Telecommunications infrastructure

Proximity to Raleigh MSA

Close proximity to University of North Carolina at Chapel Hill, North Carolina State University, and Duke University

24 miles to Raleigh-Durham International Airport

Telecommunications infrastructure available Food and Beverage Processing

Larger site size requirement

Good transportation infrastructure

Proximity to customers and end markets

Large manufacturing labor force

Excess water and wastewater capacity

Rail service required for some projects

Property is adjacent to US 70 and 1.5 miles from I-40

Water system has 8 mgd of excess capacity available

Wastewater treatment plant has an excess capacity of 20 mgd

Proximity to customer and end markets

Existing skills can be found in the labor force

Note: Lack of rail service may be a weakness for some prospects

Pharmaceutical / Life Sciences

Larger site size requirement

Proximity to population centers with strong quality of life components to recruit required personnel

Adequate manufacturing labor force

Good transportation infrastructure

Close proximity to the Research Triangle Park

Property is adjacent to US 70 and 1.5 miles from I-40

Existing life science industries in the region

Note: Site size may be a weakness for some prospects

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O’Brien Atkins Site Visuals

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Duke Site Readiness Program – Phase II

• O’Brien Atkins performed a “buildability” study of the park to determine the acreage available for development

• Developed conceptual plans for the park

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Site Context Map

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Buildable Area Map

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Conceptual Plan

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3D Conceptual SW

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3D Conceptual NW

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3D Conceptual NE

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3D Conceptual SE

Mark M. Sweeney Kyle Neu

Senior Principal Consultant

[email protected] [email protected]

McCallum Sweeney Consulting

15 South Main Street, Suite 950

Greenville, SC 29601

864-672-1600 (main)

864-672-1610 (fax)

www.mccallumsweeney.com

@McCallumSweeney

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MSC Contact Information

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