REAL ESTATE PPP AND ECONOMIC DEVELOPMENT

“LET’S MAKE A DEAL”

PPP AND ECONOMIC DEVELOPMENT

Formula for success Create mutual opportunity for both public/private sector Many times more “art than science” despite our best efforts Human Factor Political Dimension Solve problems in novel way leads to more success and economic growth

THE ECONOMIC DEVELOPMENT CONUNDRUM IN THE UNITED STATES

Motivated by job creation goal

Competition is fierce Pure Governmental units

have limits on ability to engage private sector

ED Goal is to not only get jobs in the door—but good paying jobs

“Seller” “Buyer”

1500 MajorPlant

Expansions

15,000 EDOrganizations

THE REAL ESTATE DEVELOPMENT CONUNDRUM IN THE UNITED STATES

Motivated by Profit Highly competitive Provincial attitudes Barriers to entry Building trust in an

environment of high hopes and fear of failure

SPEED and EFFICIENCY

SOLUTION—PPP DRIVEN ECONOMIC DEVELOPMENT

PPP real estate Project “What it takes” Concept to Completion—

VISION Collaboration Coordination Communication

PPP CASE STUDYKILGORE, TEXAS

BUILDING AN ECONOMIC DEVELOPMENT BASE—GROUND UP

SOLUTION—NEW GROWTH FOR KILGORE, TEXAS

Kilgore Economic Development Corporation (KEDC)

always looking to diversify/expand economic base

Historically an Oil industry dominated economy

Located between Shreveport, Louisiana and Dallas,

Texas on I-20

Create additional base of jobs

Common goal with SP

Common “client” with SP

Objectives clear

SOLUTION—RETAIN AND GROW CORPORATE CLIENTS

Bring together resources of both KEDC and SP

Communication and Problem Solving Approach

Great Working relationship

KEDC provided 9.2 acre site to SP for $1

KEDC provided grant $ and tax abatement to Alcoa Closure Systems

International (CSI)

SP invested $8.5 Million USD

Provide 70 new jobs in Kilgore, Texas

Provide a new facility for Alcoa CSI

RESULTS—PRODUCING STRONG ECONOMIC GROWTH