Buy + Build + Lease

Site selection isn’t just the real estate in the right location. Companies need to validate labor availability – not just take for granted what they’re told. It also includes verifying the right tax climate and regulatory environment exist as well as the impact of securing financial incentive programs. All of these are competencies of The Brookshire Company.

Justin Erickson, The Brookshire Company, Economic Development & Site Selection Specialist, emphasizes that real estate and location considerations must be explored in parallel with labor and incentive considerations, and The Brookshire Company offers a seamless approach to our clients to make sure all aspects are addressed.

1

Buy, build or lease?

  • Is this location a fit logistically? Too often, that’s where the conversation stops.

2

Our clients know it entails far more:

  • Are we going to have the right quantity and quality of labor?
  • What compensation and benefits package do we need to offer to be competitive?
  • Are we competitive or complementary to existing local and regional employers?

3

Then there are Financial Incentives — Local, regional, state and federal:

  • What are the programs and how do we know if we qualify, what steps are taken to procure incentives and what is the benefit to our business?
Six Step Selection Process

First, we establish a project code name to ensure confidentiality until the appropriate time to disclose the company name. Second, we identify a) the real estate needs of the company –projected size of building, buy vs. lease and, if known, estimated purchase/lease price; b) 5-year labor projections for new jobs to be created; and c) projected CAP Ex spend over 5 years. We provide a simple template to be populated in conjunction with the client.

Preliminary proposals will be solicited to identify local-to-state financial incentive programs, dollar benefit to the company and timeline for securing incentives.

It is important to note that most states operate with a ‘but for’ clause, meaning but for the financial incentives, the project will not happen. If any activity takes place which the state could interpret as a commitment being made, the company will be disqualified from receiving incentives. Seemingly benign activities such as signing a non-binding LOI to purchase a facility, ordering equipment with a ship to address, registering with the state as an operating entity –to name a few –are all activities which can jeopardize incentives. Therefore, it is critical that the individuals leading the real estate negotiation are working in close contact with those who are soliciting and structuring incentives. Too often, large real estate brokerage firms are not coordinated in these efforts, with brokers and ED specialists residing in different offices and with limited experience of working together. This is not the case with The Brookshire Company and is a strength of our organization.

We have local ED include all local financial incentive programs, which then get married to state-level incentives previously provided.

Too often companies and consultants rely on publicly available labor shed surveys and documents.

Greater analysis needs to be done in the following sequence:

First, we ask each community to provide examples of local employers with jobs/skills like what we projected in our labor pro forma. This provides a more accurate comparison of whether we will be a lower/higher paying employer in the area.

Second, we seek a minimum of 3 employers within proximity of the proposed location to conduct one-on-one ‘HR interviews.’ It is important to conduct the interviews company-to-company, eliminating any outside influences or biases. It is invaluable for our clients to get feedback from business owners, upper management and/or HR Directors as to what their experience with the labor market is and how they feel the proposed jobs –quantity, skill sets and proposed pay scale –will fit into the market.

It typically requires 60 -90 days to secure all incentive awards and we must complete this work prior to final commitment/announcement so-as-to not jeopardize the incentive awards.

It is not required but is free publicity to the company as well as a great labor recruitment tool. Further, should it be desired, we work with local ED organization to provide space and resources for initial employment screening and interviewing, should the client wish to begin the hiring process in parallel with facility retrofit.

Note: It is important to note that while every step in the 6-Step sequence is equally important, Steps 2-4 may be conducted simultaneously or in varied order.

Meet Justin Erickson, Economic Development and Labor Specialist
For over 15 years Justin has been instrumental in helping a variety of companies find the right state and the perfect city for their expansion or relocation needs.

Partnership + Excellence

I recently contracted the services of Justin Erickson and have been extremely pleased with the work he has conducted on our behalf. Justin’s knowledge, expertise and experience with site assessment and government economic development incentive processes has allowed Justin to quickly and successfully partner with our site selection team to provide insights and information critical to our process. Justin has been professional, proactive, and readily available to the team. I highly recommend Justin and would be glad to provide a personal reference for his organization and services.

Skip Barrick

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