Jennifer J' Lantz is Executive Director of the Wilson Economic Development Council and Corporate Sec

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Jennifer J. Lantz is Executive Director of the
Wilson Economic Development Council and Corporate
Secretary of Wilson County Properties, Inc. She
is a graduate of the University of Richmond, with
a B.A. in Political Science and a B.A. in Urban
Studies with aconcentration in Economics. She
has developed over 800 acres of industrial
property and overseen eight build to suit
facilities over the past decade. Jennifer served
on the North Carolina Economic Development Board
from 1997-2000 and the GTP Commission Board from
1992-1995. She is a member of numerous Boards in
Wilson. Drawing from her experience, Jennifer
Lantz will provide a guideline on Adding
Shareholder Value Through Design Build
Construction as a Non-Profit Development
Corporation. The primary objective is to provide
both corporate leaders and economic developers
with a cost effective way of providing new
facilities. In the competitive environment
today, corporate leaders often turn to
communities to provide customized solutions, that
meet corporate goals. Learn how to provide the
right building, for the right price and in the
right timeframe. Discover how to be creative in
structuring a deal that meets the best interests
of the company.
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Build To Suit

• By A Non-Profit Corporation

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Wilson County Properties Mission

• To develop state of the art industrial parks,
  sites and buildings that entice global
  manufacturers to Wilson, NC
• To provide cost effective solutions that enhance
  our community and improve corporate profits

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Structure of A Non-Profit with Build to Suit
Capabilities

• Build consensus for a non- profit development
  corporation
• Establish a 501C-6 non-profit development
  corporation
• Develop partnerships with financial institutions
  so that non-recourse financing can be obtained
  (establish a pool of banks for larger projects)
• Retain a construction management consultant
• (architect, engineer, builder)
• Strengthen relationships with Federal, State and
  Local regulatory agencies
• Ensure local government(s) support concept

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Tools Needed To Talk With Companies

• Purchase or develop basic building specifications
  that can readily be used in talking with
  companies
• Develop sample lease, lease-purchase and purchase
  contracts
• Create draft financing contracts and documents in
  conjunction with banks, particularly for pooled
  financing

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Appropriateness of Build To Suit

• Determine the suitability of the companies you
  are working with this option does not work for
  every company
• Research the financial stability of the company
• Ascertain whether this option enhances the
  companys goals for this project
• 1. reduces company man-hours used during
  construction
• 2. provides a cost effective solution for a
  building
• 3. allows company to retain capital
• 4. company does not pay for space until it is
  producing product

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Common Sense for Successful Projects

• Determine what the company really wants
• Select your construction partners very carefully,
  you will be held responsible
• Be honest about delays, costs and other issues
• Have the company sign off on plans, timeframes
  and costs
• Adopt a no change order policy
• Deliver your project on time and within budget

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Typical Steps in a Build To Suit
Company selects a lease or purchase option
Company and Non-Profit receive proposals
and select builder
Non-Profit develops site plan,
geotechnical and building specifications
Non-Profit solicits build to suit proposals from
3 to 5 builders
Company, Non-Profit and Builder finalize plans,
timeline and execute contracts
Non-Profit manages construction, contacting
the Company when necessary
Non-Profit delivers building to Company
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Primary Stakeholders
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Illustrative Terms

• Loan is non-recourse, usually a variable rate at
  prime with both a floor and a cap
• The companys monthly payment is set based on 1
  above prime.
• The loan is adjusted every 5 years without any
  additional fees.
• The term is generally 10 to 15 years
• Most companies opt for a lease-purchase
• All lease payments applied directly to the loan
• No fees for Non-Profits services

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Primary Benefits

• Allows companies to locate in a new facility
  without allocating capital
• Reduces company man hours typically involved in
  constructing a facility
• Provides both lease or purchase capabilities
• Assures companies that the community will be a
  long term partner