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Title: PowerPoint Presentation Author: Deloitte & Touche Last modified by: June Johns Created Date: 8/14/2000 7:47:27 PM Document presentation format – PowerPoint PPT presentation

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1
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2
Contents
Page Number
  • Background and Introduction Page 2
  • Site Evaluation Approach Methodology Page 7
  • Site Evaluation Findings Page 12
  • Detailed Summaries of Tier 1/Recommended
    Sites Page 18
  • Conclusions and Next Steps Page 27
  • Appendix Candidate Site Data Summary Forms

3
Background and Introduction
4
Background
  • The Jefferson Parish Economic Development
    Commission (JEDCO) is in the process of
    implementing The Jefferson EDGE, its five-year
    strategic plan for economic development.
  • The Jefferson EDGE identifies the development of
    the Parishs technology sector as an essential
    component of future economic growth.
  • The Jefferson EDGE Committee is currently
    directing an audit of Parish technology resources
    to assess its capacity to support the retention,
    expansion, and attraction of technology
    investment and jobs.
  • While the Technology Audit findings suggest the
    Parish can generally support technology-sector
    expansion, JEDCO believes the Parish lacks the
    higher-end business parks and developable land
    needed to attract and retain technology
    companies.
  • Ready-to-go buildings and land are crucial assets
    when competing for locationally active companies
    and not only those in the technology sector.

5
JEDCOs Vision for the Technology Park
  • JEDCO envisions the new development as a
    high-quality business / office park that will
  • Provide an attractive option in the Parish for
    expanding local and regional companies currently
    operating within and beyond Jefferson Parish
    and,
  • Compete successfully for investment by external
    prospects considering the New Orleans metro area
    for their regional, national, or international
    site searches.
  • Ideally, the new Park will target
    technology-oriented companies however, JEDCOs
    vision for the Park is broadly inclusive.
  • To achieve this vision, the Park layout and
    features should be flexible enough to attract and
    accommodate various types of facilities and
    industries, including
  • Centers for technology development and learning
    (e.g., an incubator or academy)
  • Operations / offices of companies in
    traditionally less-technical industries that are
    leveraging technology in innovative ways (e.g.,
    manufacturing, logistics, and service-sector
    companies) and,
  • Facility types that could range from high-end
    office to light manufacturing.

6
Deloitte Touche Fantus Our Role and
Perspective
  • To identify the optimal location(s) for the
    Technology Park, JEDCO retained Deloitte
    Touches Fantus Group to comparatively evaluate
    the Parishs real estate assets in a two-phase
    process
  • Phase 1 Identify several sites with the most
    potential to support the efficient development of
    the Park (i.e., within one year) and,
  • Phase 2 Identify the optimal site in the
    context of the Technology Audits findings, the
    anticipated development process, and JEDCOs
    objectives for the Technology Park.
  • In this role, we bring deep expertise in the
    assessment of potential facility locations, and
    the invaluable perspective of corporate
    executives responsible for making location
    decisions.
  • As a practice, we have decades of experience
    conducting site-selection projects for corporate
    clients in all industry sectors, including
    technology.
  • Our team has field-evaluated hundreds of office /
    technology parks throughout the United States and
    abroad on behalf of, and with, our corporate
    clients.
  • We have helped various economic development
    agencies evaluate, rationalize, and improve their
    real estate assets to support economic
    development and growth.

7
What Prospects Look for in a Technology Park
  • Based on our experience, corporate clients
    typically expect the following attributes in a
    built-out, higher-end business / office park
  • Location
  • Close proximity to major roads, airport
  • Access to amenities such as restaurants, hotels,
    recreation, and day care providers
  • Attractive surrounding land uses and a secure
    environment
  • Construction
  • High quality buildings
  • Restrictive land-use and operating-standard
    covenants throughout the park
  • High parking ratios
  • Landscaping
  • Wide building / street setbacks, and tree-lined
    or landscaped roads
  • Greenspace buffers between the park and
    surrounding developments
  • Higher-end signage at entrance and buildings
  • Walking paths, water features, or green space to
    create a campus setting
  • Utilities
  • Strong telecommunications infrastructure, and
    sometimes redundant service
  • Underground utilities throughout the park

8
Site EvaluationApproach and Methodology
9
Baseline Criteria for the Technology Park Sites
  • Based on the projects stated objectives, JEDCO
    and Deloitte Touche identified baseline
    requirements for candidate sites to be
    appropriate for the Park
  • Minimum of 25 acres developable land
  • Ability to be developed in the short-term
    (beginning within one year)
  • Compatible (higher-end) image and surrounding
    uses
  • Favorable access to local road network and
    population centers / amenities
  • Appropriate utility and telecommunications
    infrastructure and,
  • Moderate overall cost structure for land
    acquisition and development.
  • For the purpose of this analysis, the developed
    state to be achieved at the chosen site in one
    year is defined as
  • Land controlled by JEDCO for development (by
    purchase, lease, or agreement)
  • Access road and utilities extended to the Park
    boundary and,
  • Cleared and graded (i.e., filled) site, with
    entrance signage in place.

10
Approach and Methodology
  • The first step in the process was to identify
    parcels of developable land greater than 25 acres
    within Jefferson Parish.
  • To identify potential sites, JEDCO contacted
    various stakeholders in the local real estate
    community, including
  • Real estate agents, developers, and private land
    owners
  • Local companies believed to have excess land
  • Louis Armstrong New Orleans International
    Airport and,
  • Individual municipalities within the Parish.
  • Deloitte Touche then developed and issued a
    Request for Information (RFI) to interested
    property representatives, soliciting key data on
    each site related to its access, infrastructure,
    image, surrounding uses, land-use history, etc.
  • Ultimately, information on 19 sites was received
    and evaluated.

11
Site Submittals in Response to RFI
12
Field Evaluation of Sites
  • After reviewing the RFI responses, Deloitte
    Touche and JEDCO met with the property
    representatives and field-evaluated the sites on
    January 28 and 29.
  • These evaluations included verification of
    information provided in the RFI responses, and
    first-hand assessment of various factors,
    including
  • Image of the property and its surroundings
  • Quality of access routes to major roads
  • Issues that might preclude development of the
    site within the required timeframe, including
  • Significant wetlands
  • Environmental concerns resulting from past or
    neighboring operations
  • Utility extension requirements
  • Required process to obtain appropriate zoning
  • Willingness of the land owners to lease the
    property to JEDCO and / or to partner with JEDCO
    for the development of the park.

13
Site Evaluation Findings
14
Comparative Ranking of Submitted Sites
Based on our field evaluations and review of the
RFI responses, the candidate sites were
categorized according to their apparent capacity
to support the Technology Park development.
  • Tier 3 Sites One or more significant issues
    suggests these sites are incompatible with the
    Technology Parks development. Primary reasons
    for elimination of a site might include
  • Incompatible image (generally located in heavy
    industrial areas) and
  • Required acreage is not available under
    consolidated ownership.
  • Tier 2 Sites These sites are not as well suited
    for Technology Park development as the Tier 1 /
    Recommended sites, but can serve as alternates
    should substantial flaws emerge in Tier 1 sites.
    These sites might exhibit
  • Potentially restrictive site size, configuration,
    or other development hurdle
  • Locational characteristics better suited for a
    different type of development (e.g. retail,
    industrial, etc.) and/or,
  • Sub-optimal road access or surrounding image.
  • Tier 1 / Recommended Sites Sites that offer the
    greatest potential to meet JEDCOs requirements
    for Technology Park development.

15
Summary of Tier 3 Sites
After field-evaluating and reviewing the RFI
responses for these nine sites, they were judged
to be incompatible with the Technology Park
development.
Site Acreage Location Rationale for Tier 3 Status
2900 Peters Road 70 acres East side of Harvey Canal, Harvey Heavy industrial image, and potential environmental concerns.
4400 Peters Road 40 acres East side of Harvey Canal, Harvey Heavy industrial image, and potential environmental concerns.
Harvey Canal Site 540 acres Destrehan Ave. and Lapalco Blvd., Harvey Incompatible surrounding image (heavy industrial and residential land uses).
Peters Road Site 241.5 acres Across from Boomtown Casino, Harvey Incompatible surrounding image (heavy industry and casino). Significant infrastructure improvements required.
S. New Orleans Subdivision 500 acres Manhattan Blvd. near Gretna Blvd., Harvey Required acreage not available under consolidated ownership.
Gretna Site 26 acres Madison Street near Port of New Orleans, Gretna Restrictive site size and layout. Owner has not demonstrated motivation toward selling / leasing the property.
Knight-Celotex Site 25 acres 7500 Fourth Street, Marrero Heavy industrial image, and limited acreage available.
South and East of Airport Sites (2 sites) Many parcels comprise 38 and 41 acres, respectively South site is between Kenner Avenue and Jefferson Hwy.East site is northwest of Kenner City Hall and south of 23rd Street. Significant land aggregation required for acreage to support office development. Building height restrictions and airport runway proximity may concern prospects.
Additional detail on these sites is provided in
the Appendix to this report.
16
Summary of Tier 2 Sites
Six of the 19 sites appear to be marginally
suited to support the development of the
Technology Park.
Site Acreage Location Rationale for Tier 2 Status
Manhattan Blvd. near Target Store 44 acres Manhattan Blvd. south of Gretna Blvd., Harvey Minimal room for future expansion. Comparatively high asking price (3.50 psf). Acceptable location and image, but better suited for retail development.
Former Belle Promenade Mall 25 acres in total Lapalco Blvd. and Barataria Blvd., Marrero Potentially restrictive site size and configuration. Acceptable location and image, but is better suited for retail / commercial development.
Union Pacific Railroad Site 138 acres LA Highway 18, Westwego Lower land price, but marginal surrounding image (tank farm, intermodal yard). Access along LA-18 is congested.
Behrman Highway Site 65 acres Behrman Hwy near LA Hwy 23 Large parcel with marginal image. Ownership groups willingness to sell land is not known. Reported price is 3.50 per square foot.
Marrero Golf Course Site 68 acres Lapalco Blvd. near US 90 Significant wetlands on property. High asking price for land expected (5.00 per square foot). Owner contemplating covenants and codes that may be too restrictive for multi-use Technology Park.
North End of Airport Site 21 acres North of Louis Armstrong Intl Airport, at Williams Blvd. exit off I-10 Good I-10 access / visibility on Eastbank, and close to airport. However, significant land aggregation, expropriation, and street closures required. Development time requirements and overall available acreage are likely to compromise stated objectives for the Technology Park development
Additional detail on these sites is provided in
the Appendix to this report.
17
Summary of Tier 1 / Recommended Sites
Our evaluation suggests three Westbank sites
offer the greatest potential for the successful
development, and long-term expansion, of a
Technology Park for Jefferson Parish.
Site Acreage Location Rationale for Tier 1 Status
Marrero Site A 103 acres LA Hwy 18, Bridge City Large, somewhat rectangular site.Favorable access to the Huey P. Long Bridge and Eastbank population centers. Acceptable (but not ideal) surrounding image, and no wetlands on site.
Marrero Site B 67 acres LA Hwy 18, Bridge City Large, elliptically shaped site.Favorable access to the Huey P. Long Bridge and Eastbank population centers. Acceptable (but not ideal) surrounding image, and no wetlands on site.
Churchill Farms 3,700 acres Nicole Blvd., near its intersection with Lapalco Blvd. Large tract of land offers flexibility to control surrounding image and develop site for multiple uses. Favorable road access (to northeast portion of site only).
Additional detail on these sites is provided in
the Appendix to this report.
18
Tier 1 / Recommended Sites Location Map
19
Detailed Summariesof Tier 1 / Recommended Sites
20
Marrero Land Sites A and B Site Plan
Site A
Site B
21
Marrero Land Sites A and B Site Summary
  • The Marrero Sites A and B offer favorable
    access to US 90 and the Huey P. Long Bridge.
  • The areas surrounding image is acceptable
    (though slightly more industrial than preferred),
    and the land price is somewhat lower than for
    land in more developed / commercialized areas.
  • Greenspace buffers and selection of a parcel
    toward the southeast corner of Parcel A may
    alleviate image concerns.
  • Wetlands assessments of the site suggest this
    will not be an issue. This could represent
    meaningful reductions in site improvement costs.
  • Parcel A, north of LA Highway 18, appears to be
    the preferred site of the two due to its
    rectangular, larger and more flexible site
    configuration versus Parcel B and,
  • The following utility extensions would be
    required to serve Site A
  • Water (approximately 800 to edge of parcel A
    from US 90)
  • Gas (approximately 1600 to edge of parcel A
    from US 90) and,
  • Telecommunications (to be determined).

22
Marrero Land Sites A and B Site Details
Site Size / Configuration Site A Approximately 102 acres in a roughly rectangular configuration Site B Approximately 67 acres in a long, somewhat narrow configuration
Location LA Hwy 18 and LA Hwy 541, Bridge City
Owner Marrero Land Improvement Association, Ltd.
Asking Price Estimated at 1.25 - 1.50 psf (or 55,000 - 65,00 per acre) sale price for a 25-acre parcel Marrero would prefer to lease the property to JEDCO at an estimated price of 0.18 to 0.25 psf (or 7,800 - 10,900 per acre)
Highway Access LA Hwy 18 to US 90 (less than ¼ mile)
Current Use Pasture for cattle grazing no permanent facilities on site other than barns, stables, and sheds
Surrounding Uses Avondale Shipyards (west) US 90 (east, south) Rail yard (south) Church, school (north)
Former Use Pasture
Zoning Site A R-1A (Residential) / M-1 (Industrial) Site B M-1 (Industrial)
Utilities Water 12 main along US 90 (approximately 800 from site) Sewer 20 force main runs along/through the sites Gas Line runs along east side of US 90 (approximately 1600 from site) Electric Adjacent to site along LA 18 and LA 541.
Environmental / Wetlands No environmental site assessments have been completed. Property was designated as a non-wetland area by USACE in 1999.
Advantages Good access to US 90 Property has been designated a non-wetlands area comparatively low land costs vs. most sites in the Parish
Disadvantages Marginal (though acceptable) surrounding image due to Avondale and rail bridge/yard Extensions required for all utilities except electric
23
Marrero Land Sites A and B Site Photos
24
Churchill Farms Site Plan
US 90
Lapalco Blvd.
Nicole Blvd.
25
Churchill Farms Site Summary
  • This sites location, size and surroundings
    present the opportunity to develop and maintain a
    distinct image in and around the Technology Park.
  • The northeast portion of the site appears to be
    the preferred area to initiate the Park
    development based on
  • Better access to area roads, population centers,
    and recreation amenities
  • The extent of utility extensions needed in this
    area is expected to be less.
  • The northeast part of the site has better road
    access
  • At this time, the primary development concerns
    and unknowns for the site include the level /
    location of utility service to the area, as well
    as the location and extent of wetlands on the
    site.
  • If not already available, a broad wetlands
    assessment of the site may be an important step
    toward identifying the areas of the site best
    suited for development, and possible mitigation /
    site improvement measures needed.
  • The need for other condition assessments (e.g.,
    geotechnical) also needs to be evaluated.

26
Churchill Farms - Site Details
Site Size / Configuration Property includes approximately 3,700 acres.
Location Primary access to the property is Nicole Blvd. via Lapalco Blvd. The property extends southwest to the edge of the hurricane protection levee system.
Owner Joseph Marcello
Asking Price The owner has not committed to an asking price, but is reportedly willing to lease portions of the property to JEDCO, and participate in the development process.
Highway Access Lapalco Blvd. to US 90 (approximately 1 mile).
Current Use The majority of the property is currently vacant and undeveloped. Some portions are being used for agriculture or pastureland.
Surrounding Uses TPC golf course currently under construction along Nicole Blvd. Most land adjacent to the site is vacant and undeveloped. The Avondale subdivision is close to a remote portion of the site.
Former Use Agriculture, pasture, or undeveloped.
Zoning The majority of the property is currently zoned U-1 (Unrestricted District).
Utilities Necessary information has not yet been received. The preferred portion of the site the northeastern corner is reportedly served by utilities along Lapalco and/or Nicole Blvd.
Environmental / Wetlands No environmental site assessments or wetlands delineations have been reported.
Advantages Large, flexible tract that offers the ability to establish desired image and uses. Good access to US 90 via Lapalco Blvd. Owner would like to participate development process. Proximity to TPC Golf course and recreation area.
Disadvantages The amount of wetlands is not known, but could appreciably affect parcel selection and development process. Extent of needed utility extensions is unknown. Asking price for as is land has not been made available.
27
Churchill Farms Site Photos
28
Conclusions and Next Steps
29
Overall Conclusions
  • The sites we believe are best suited for the
    long-term development of the Technology Park are
    on the Westbank.
  • Based on our perspective as outsiders, and,
    more importantly, as site-selection consultants
    that regularly direct companies location
    strategies and decision-making, we believe the
    Westbank is better suited for the Park.
  • Larger sites can best support long-term
    development of a mixed-use park, and accommodate
    a wider spectrum of prospects and facilities.
  • The absence of Westbank development south of the
    Huey P. Long Bridge enables new projects / parks
    to establish their own identity and image.
  • The new Tournament Players golf course and
    anticipated Westbank housing developments may
    serve as key supporting / catalytic amenities on
    the Westbank.
  • The expansion of the Huey P. Long Bridge will
    open up the Westbank to workers traditionally
    concentrated on Eastbank, and increase the
    impetus for Westbank residential development
    (versus north of Lake Pontchartrain).

30
Overall Conclusions (continued)
  • While our Tier 1 / Recommended sites are on the
    Westbank, the site north of New Orleans
    International Airport offers compelling traits
    for office park development, including
  • Proximity to the airport
  • Visibility on the I-10 Interstate and
  • Favorable Eastbank access to population centers
    and overall Parish resources.
  • However, in its present state, the site presents
    significant potential difficulties meeting the
    stated objectives of the Technology Park
  • Only 21 acres are airport-controlled, and the
    parcels in their current state may not be large
    enough to accommodate an office building and
    needed infrastructure
  • Additional land would need to be expropriated
    from multiple residential owners, a process that
    is expected to take no less than 3 months
  • Several public streets and their associated
    utility infrastructure would need to be abandoned
    and removed
  • The sites position at the end of a runway may
    not appeal to some prospects due to concerns with
    noise levels, physical safety, height
    restrictions, etc. and,
  • The site is surrounded mostly by residential
    development, and this could ultimately limit the
    image that can be cultivated for the Technology
    Park.

31
Overall Conclusions (continued)
  • In light of these considerations, JEDCO and The
    Jefferson EDGE Technology Committee may wish to
    consider pursuing the development of the Airport
    site on a parallel track with a larger Westbank
    site.
  • Once aggregated, the airport site could
    accommodate in-fill development of office
    buildings, which might be particularly desirable
    to local companies concerned with locating on the
    Westbank.
  • To this end, the process of aggregating the land
    and abandoning the streets could be explored
    further.
  • In order for the site to be attractive to
    external companies seeking ready-to-go sites,
    substantial progress toward site aggregation is
    needed.
  • In order to further assess the development
    feasibility of the site to the north of the
    airport, we will include it in our Phase 2
    analysis, along with the Tier 1 / Recommended
    sites.

32
Additional Considerations
  • We recommend that JEDCO use the site information
    gathered during this project to create
    site-information packages that can be used to
    respond rapidly to corporate prospects in the
    future.
  • Complete and uniform site profiles/descriptions
    should be developed for each site. Thorough,
    high-quality site profiles are a competitive
    advantage in the site-selection process.
  • This will require additional follow up and
    documentation regarding unknowns for the sites.
  • Furthermore, JEDCO should consider identifying
    developers possibly interested in speculative
    buildings and / or park development for this and
    future opportunities.

33
Next Steps and Discussion
  • The Tier 1 sites, and the site north of the
    airport, present unique strengths and challenges
    that must be further evaluated to determine which
    is the optimal site (i.e., the finalist site).
  • Phase 2 of the Project entails additional due
    diligence regarding the steps, timing and cost of
    the process to get each site to the developed
    state.
  • The primary steps to develop these greenfield
    sites could include
  • Conduct environmental, soils, and other condition
    assessments as needed to evaluate site
    preparation requirements / costs, and identify
    preferred sections of parcel(s)
  • Gain access to or control the land via purchase
    or lease
  • Identify, qualify and establish relationship with
    development partners
  • Re-zone the site (and possibly surrounding areas)
    to appropriate designation
  • Develop preliminary design drawings to support
    development and permitting process
  • Obtain permit(s) to clear and grade (including,
    as necessary, wetland delineation and
    permitting)
  • Complete utility and infrastructure (road)
    extensions (could include securing right of
    ways) and,
  • Complete site improvements.

34
Next Steps and Discussion (continued)
  • For each site, we will determine the steps and
    approvals likely to be required to develop the
    site, along with an estimate of the associated
    costs and timeline.
  • In Phase 2, we will also evaluate the Tier 1
    sites suitability within the broader context of
    the Parishs technology-related assets, and the
    manner of technology-sector development
    envisioned in The Jefferson EDGE plan.
  • The evaluation criteria and process will be
    developed in conjunction with the findings of the
    Technology Audit and other considerations, but
    examples may include
  • The types of facilities, industries and companies
    identified as the Parishs target market by the
    Technology Audit
  • Access / support provided by the sites to the
    Parishs technology assets and infrastructure
    (labor, universities, key companies, etc.) and,
  • Relationship to the Parishs master land use plan
    (Envision Jefferson 2020) and long-term community
    development initiatives.

35
Next Steps and Discussion (continued)
  • At the start of Phase 2, it might be beneficial
    for JEDCO and The Technology Committee to
    re-establish and confirm their vision and
    objectives for the Park, as well as their role in
    its development.
  • What is the spectrum of facility types to be
    included in the Park? Should the development of
    a second park on Eastbank be considered?
  • Is a 1-year development timeframe still the
    target?
  • To what extent should the site be improved so as
    to be desirable for prospects?
  • What level of ownership or control will JEDCO and
    Parish entities have in the Park and its
    infrastructure, speculative buildings, etc.?
  • How can the capabilities of JEDCO and other
    Parish entities be leveraged to reduce the
    development costs and timeframe?
  • What are the potential and desired roles for
    developers and owners?
  • What funding mechanisms will be used to fund /
    finance utility extensions, site improvements,
    spec-building construction, etc.?
  • Revisiting these issues and confirming the
    collective vision for the Park is essential for
    building consensus and soliciting participation
    among stakeholder entities (developers, land
    owners, permitting agencies, municipality
    jurisdictions and constituents).

36
APPENDIXData Summary Formsfor All Candidate
Sites
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