Master Redevelopment Plan for the I-16 / US 301 Interchange

Transcription

1 Master Redevelopment Plan for the I-16 / US 301 Interchange Bulloch County GA The Consulting Team

2 Presentation Outline Presentation Outline

3 Key National and Regional Trends 5 1. The increasing effects of Globalization 2. The lingering effects of the Great Recession 3. Georgia s rapid growth 4. The emergence of a powerhouse SE United States global portal combining Port of Savannah and Hartsfield- Jackson International Airport 5. The importance of interstates as the connective tissue of the economy Key National and Regional Trends 6

4 Globalization is the defining economic trend of the coming decade based on four essential elements: Hyper-connectivity (Friedman) through the internet and telecom revolution removing distance as a barrier to commerce The rise of the rest (Zakaria) means we are competing worldwide for goods and services Global logistic system we are creating logistic networks worldwide to ease/spread the flow of goods and services Natural resources to power the system are not equally distributed oil, gas, coal, food, wood products price spikes can slow the system National Trends-- --Globalization The scope of the Great Recession is vast, and its impacts will linger for years. National Trends Source: BLS, CalculatedRisk.com 8

5 Georgia s population grew more than 3.4 million people between 1990 and 2010 it will add 2.8 million more in next twenty years Georgia added almost 1.6 million jobs will add another 1.7 million by Georgia projected to add a new job for every 1.7 new residents in next twenty years, verses a new job for every 2.3 residents last twenty years. Source: BAG, Woods & Poole National Trends Georgia Growth Combination of Port of Savannah and Hartsfield-Jackson International Airport unique global portal for all of Southeast US HJAIA is busiest airport world-wide since million passengers annually global connections to 80 cities Delta Hub, SWA major expansion Major focus is expansion of cargo activity Port of Savannah leading SE port facility Fourth busiest container port in U.S.-- #1 in SE Undergoing major deepening for arrival of larger Panamax ships No other SE State has this combination of access to global markets National Trends Global Portal

6 Proximity to the port of Savannah creates opportunities for industrial growth in Bulloch County which are likely to increase as the port continues to grow. The port is responsible for 295,443 full- and part-time jobs (6.7 percent of Georgia s total employment) Fastest growing container port in the nation. Responsible for moving more than18 percent of all East Coast container trade. Between FY2001 and FY2010,the Port of Savannah has grown percent in its container throughput. Influence of the Port of Savannah Importance of Interstate System for economic growth: Georgia is bracketed by two dominant N/S Interstate routes I-95 for eastern seaboard I-75 Midwest/Florida route E/W linkages I-20 to Port Charleston I-10 Port of Jacksonville I-16 links Georgia s Global Portal, Port of Savannah and Atlanta region, I-20, Connects to I-95, I-75. key linkage GA development highway system also key National Trends Interstate Network

7 Ogeechee Tech. College Over 2,900 students Provides GA Quick Start customized training to new area employers Wide range of programs in health, law enforcement, GED, business administrative, accounting Georgia Southern University Over 19,600 students, grad and undergrad 3,378 graduates in 2010 New civil, electrical and mechanical engineering programs Programs in logistics and information tech. Educational Synergies in Bulloch Local Demographic and Economic Overview 14

8 Demographics analyzed at several levels Bulloch County 20 Mile Radius 10-County I-16 Corridor Data Sources: Woods & Poole Claritas US Census Bureau of Labor Statistics Analysis Geographies Bulloch s population has been growing relatively quickly, at 2.5% annually for the last 20 years. Pace will continue, somewhat slower at 2.2% over next 20 years. Represents an average of 1,700 new residents annually. 700 to 900 new households annually over next 20 years. Growth exceeds neighboring counties, but lags major Metro areas. Population growth is projected to outpace job growth. Population Employment Demographic Forecast: Bulloch County Source: Woods & Poole 16

9 Bulloch County has a high percentage of non-family households, largely due to the presence of the university. Bulloch County Demographics: Household Composition Source: Claritas 17 Bulloch s population is significantly younger than the region or statewide. Significantly fewer middle-agers, suggests that students tend to leave the county when they are done with school. Median age is 10 years younger than state. Source: Claritas Bulloch Co. Demographics: Age Profile 18

10 Bulloch County has among the highest educational achievement levels in the region Significantly higher than other I-16 Corridor Counties 78% are high school graduates 25% have 4-year degrees 12% have advanced degrees. Source: Claritas Bulloch Co. Demographics: Education 19 Existing income levels in Bulloch are modest: More than half of Bulloch households earn less than $35,000 9 % of households in Bulloch earn over $100,000 compared to 14% of Statewide Bulloch median income is 74% of Georgia median income Bulloch Co. Demographics: Income Distribution Source: Claritas 20

11 Bulloch County s housing inventory reflects the student population. 45% of residents rent their homes, compared to 33% state-wide 51% live in single-family detached housing, compared to 66% statewide. 19% live in mobile homes, compared to 10% statewide. Home values tend to be more modest: $125K median vs. $144K state-wide Bulloch Co. Demographics: Housing Source: Claritas Bulloch County/ Statesboro is the capitol of the I-16 Corridor Strongest concentration of people, jobs, & culture Bulloch has 12% of corridor s land, 25% of population, and 29% of jobs. Share of jobs & population expected to increase to 30% by Best educated in corridor Most/best cultural amenities Bulloch s s role in the I-16 I Corridor Source: Woods & Poole

12 Employment Profile Strongest Employment Sectors over next 30 years are projected to be: Government (Including GSU) 2.3% Growth, 231 new jobs/yr Healthcare & Education 2.7% Growth, 166 new jobs/yr Service & Hospitality 1.8 % Growth, 122 new jobs/yr Manufacturing is forecast to be stable, However, Bulloch s economy is small enough that a supportive industrial policy can counter this trend. Source: Woods & Poole Bulloch County Employment: Job Growth

13 Top Bulloch County Employers Braswell Foods (Food) Briggs & Stratton (Machinery) Brodie Meters (Manufacturing) Bulloch County City of Statesboro East Georgia Regional Medical Georgia Southern University Great Dane (Manufacturing) King America (Textile) Robbins Packing (Food) The Sack Company (Construction) Vericon (Manufacturing) Wal-Mart Distribution Bulloch County Employment: Job Growth Bulloch County Job Share Georgia State-wide Job Share Bulloch Co. will see growth in the share of governmental, retail and F.I.R.E. and construction jobs over coming decades Manufacturing, knowledge based industries, and service and hospitality jobs will maintain their share of a growing local job market Georgia will see growth in Health and Education, F.I.R.E. (Finance Insurance & Real Estate), and knowledge-based jobs Gov. & Military Healthcare & Education Retail Service & Hospitality FIRE Knowledge, Info, Admin, Mgmt & Arts Manufacturing Wholesale, Transportation & Warehouse Construction & Utilities Farm, Forestry & Mining Source: W&P,BAG Employment: Share of All Jobs

14 Bulloch Co. benefits from a lower wage structure than the 9-County Coastal Georgia region in key employment sectors: Manufacturing wages in Bulloch Co. at $716 per week are 63% of the average for Coastal Georgia Transportation and warehousing wages in Bulloch at $689 per week are 79% of the Coastal Georgia average. Bulloch Wages vs. Coastal GA Source: Woods & Poole Market Assessment

15 We looked at 43 industrial parks and sites in 12 counties between Macon and Savannah along Interstate 16. The facilities covered a wide spectrum of quality, size and style. How should your park be positioned among all this competition? Competitive Sites Top Six Competitive Sites: Gateway Regional Industrial Park, (Bulloch) Metter-Candler County Industrial Park Interstate Centre (Bryan) AMB- Morgan Business Center (Chatham) Chatham County Economic Development Site I-16 North Industrial Park (Twiggs) Competitive Sites

16 Gateway Regional Industrial Park 970+ Acres Statesboro, GA 6 mi to I mi to Port Warehouse & Manufacturing orientation Key Features: Tier 1 job tax credits Pads ready to build 1 vacant building Rail Water & power Strong, diversified tenant base anchored by Wal-Mart, Briggs & Stratton Good services nearby Lacks interstate/ga 301 visibility Reaching build-out Competitive Sites Interstate Centre (Bryan) 1,100Acres East of Pooler, GA Adjacent to I-16 18Mi to Port Key Features: 2 phases Consistent high-quality quality design & identity Pads ready to build Available facilities Water & power Excellent infrastructure Room for expansion Water & power Fire Station Anchors Oneida, Oracal Competitive Sites

17 Metter-Candler County Industrial Park(Candler) 250+ Acres Metter GA Adjacent to I Mi to Port Primarily Warehouse & Distribution Key Features: Pads ready to build 2 Vacant buildings Airport nearby Room for expansion Water & power Good services nearby Poor entrance & design Lacks 1-16 visibility Competitive Sites AMB- Morgan Business Center (Chatham) 250 Acres Near Pooler, GA 1 mi to I-16, 3 mi to I-95 7 mi to Port Key Features: 500K SF Spec Building Water & power High-quality infrastructure Poor entrance & visibility Pads ready to build No tenants yet Competitive Sites

18 Chatham County Economic Development Site 1,557+ Acres Near pooler, PA 1 mi to I-16, I-95 8 mi to Port Key Features: Water & power Excellent Infrastructure Poor entrance & visibility Pads ready to build Anchor: Mitsubishi Competitive Sites I-16 North Industrial Park (Twiggs) 115+ Acres Jeffersonville, GA Adjacent to I mi to Port, 22 to Macon Academy Sports Key Features: Pad ready to build Limited room for expansion Water & power available Poor entrance & few nearby services Excellent highway presence & visibility Anchor: Academy Sports Competitive Sites

19 Assessment of Competitive Facilities: The majority of the 43 facilities visited would not be competitive with a new Bulloch County facility: Lack infrastructure No access in site No development has occurred Poor interstate access and/or visibility Lack of effective marketing/minimal information and promotion Older buildings not competitive with new client requirements Competitive Sites Characteristics of Top Competitors Facilities are well planned, with access roads, key infrastructure in place Facilities are being actively marketed by County or public/private partners to prospects On radar screen of Georgia Ports Authority marketing staff Have defined incentive program Have pad-ready sites, available building inventory Are development ready, ability to act within 90 days critical in current market Have support services in proximity Local leadership responsive and flexible to changing demands market conditions Competitive Sites

20 Competition for Incentives The competition between counties is fierce. Common incentives in the current marketplace include: Free or subsidized land Nominal lease/sale prices Property tax abatements (5 to 20 years) START Job Training Local facilitation of Design, Engineering & Construction Entitlements & Permitting Economic Development & Incentives Training & staffing Direct cash subsidies Competitive Sites Competitive Assessment

21 Strengths Interstate 16-adjacency and visibility Tier-1 State tax credits High capacity interstate design & truck-friendly exit Access to educated labor pool with competitive skills at reasonable cost GSU and Ogeechee Tech presence Flat, buildable terrain Bulloch established as industrial location (Gateway/Wal-Mart) Bulloch/Statesboro s strong business recruitment track record Agglomeration-clustering potential County already owns potential site Weaknesses Distance from Port No rail, but nearby Current lack of sewer and water, telecom infrastructure Distance from Statesboro s/ Bulloch s many other assets/services Depth of skilled labor pool? Competitive Assessment Opportunities Expansion of Port-related business, W & D, advanced manufacturing, logistics, transportation services Broaden county job base with top tier facility Creative partnership with GSU & Ogeechee Tech Tap into student labor pool Statewide Economic Development support Threats Substantial inventory of existing built inventory & vacant sites in I-16 corridor Strong competition from other top tier sites Incentives war could intensify On-going Recession limits ability to prepare for future Competitive Assessment

22 How much industrial park do we need? Typical land coverage is 10%, meaning 100 acres will typically yield 450,000 SF of industrial space. Average industrial building in area is approximately 200,000 to 300,000 SF Gateway Industrial Park has 18 buildings with +/- 4 Million SF on 1,000 Acres. Gateway took years to get to its current level Gateway has room for approximately 4 to 5 more typical buildings Industrial Potential Long Term Recommendation: Phase 1: 250 Acre Industrial/Business Park 1 million SF of industrial/flex/warehouse or Manufacturing 3 to 5 typical buildings/tenants Would support estimated 1,000-1,250 jobs Front-load infrastructure for phase one, Infrastructure for subsequent phases as needed. Heavily subsidize & incentivize first user to prime site 750-1,000 acre Industrial/Business Park Subsequent Phases: Build out to 750-1,000 acres Multi-phase single park or multiple parks on interchange quadrants Could support 10 to 15 typical major tenants of 300,000 SF Similar in Size to Gateway Industrial park Absorption Span +/- 20 years (assuming one 300,000 SF deal/2 years) Industrial Recommendations

23 Critical Elements In order to for the proposed I-16 / 301 Industrial park to be competitive: Ensure that Phase 1 sets a strong template for subsequent phases: Quality design, infrastructure, & landscaping Strong visual presence and highway visibility Extend consistent theme with subsequent phases. Ensure staff readiness Deals need to move quickly or prospects will move on down the road Ensure all infrastructure, permitting, & zoning either in place or ready to go within 90 days. Industrial Recommendations Potential future retail demand: Bulloch s retail base will grow modestly to accommodate local population growth Bulloch represents nearly 40% of all growth in corridor 1.3 M SF of new retail county-wide over next decade. Additional retail inventory will have to be induced (Destinationoriented retail) Source: Woods & Poole Local Serving Retail Potential

24 Bulloch has a well-balanced retail inventory. No major gaps between supply and demand. Source: Claritas, ULI, BAG Bulloch Co. Retail Opportunity Gap Highway & Tourism Potential Bulloch s travel & tourism industry far exceeds most counties. Bulloch ranks 29 th out of 159 Georgia Counties in Travel & Tourism related spending & jobs I-16 traffic is relatively low: 18,000 Veh/day vs. 69,000 on I-95 Source: GA. Dept of Economic Development, 2008 Destination Retail Potential

25 The I does not appear to have strong potential for general localserving or destination retail. Traffic volumes, population densities, and incomes do not support significant retail over next decade. Most growth-related retail will tend to cluster closer to existing population concentrations in Statesboro. Retail tenants will be drawn to larger population centers and traffic volumes. We do see potential for the development of travel-related commercial uses adjacent to the interchange. Recommendation: Interstate Travel Plaza Challenge Metter s dominance of interstate commercial. Compete on quality & experience Commercial services to support industrial park 2 to 4 mid-range hotel/motels Dining Options Landscaping & Design options Public Space Travel Services Retail Recommendations Population forecasts indicate modest household growth countywide new households annually over next 20 years. Most new housing will be build closer to existing population centers and university. No clear demand driver for significant new housing construction near interchange. Long term, redevelopment and shifting land use patterns may support additional housing in study area at far end of study period (15+ years) Residential Potential & Recommendations

26 Land Use Existing Land Use The map on the following page shows the land uses that currently exist in the Study Area, on a propertyby-property basis. I 16/US 301 Study Area Existing Land Use by Acres Land Use Number of parcels Total Acres Active Agriculture 28 1,269.1 Farmstead Residential Commercial Sales & Service Mixed Residential & Commercial Trans., Communications & Utilities Public & Institutional Undeveloped Total 80 1,741.4

27 Development Focus Areas The map on the following page identifies areas that best lend themselves to particular types of future development, in a broad sense. These areas are delineated in general terms based on such factors as existing land use patterns, ownership patterns (including both personal and corporate holdings), transportation access, and market-driven locational factors. The table to the right defines the various Focus Areas that are shown on the map.

28 Master Redevelopment Plan for the I-16 / US 301 Interchange Bulloch County GA