GRE Economic Development Initiatives

GRE Economic Development Initiatives

• 1.
  GRE Economic Development TomLambrecht July 19, 2016
• 2.
  Economic development services Business attraction  Data center site assessments  Financing programs  Communication  Scholarships
• 3.
   Real estatemapping  Transmission capacity studies  Response coordination (manage timeline)  Site visit participation  GRE responded to 13 project RFI’s in 2015  Total electrical demand of 1,049 MW Business attraction
• 4.
  Project Energy demandIndustry In service date Data Bank 10,000 kW Data center 2015 TMI Industries 300-500 kW Manufacturing 2016 Aubright 300 kW Manufacturing 2016 Hansen industries 600 kW Manufacturing 2016 New Flyer 300-500 kW Manufacturing 2016 Faribault Foods 4,500 kW Manufacturing 2017 Total 16,400 kW Economic development success 23 projects in the active pipeline for direct assistance
• 5.
   Plastics fabricationbusiness  St. Cloud, Minnesota  Loan for new thermoforming machine  Annual CIP savings – 305,500 kWh  Annual new energy sales – 272,300 kWh  Total annual energy sales – 4,113,340 kWh  100 employees  Stearns Electric Association # 4 customer  OEM Products, Powersports, retail products Project snapshot: Aubright
• 6.
   Qualification ofproperty ■ List of properties qualified through Deloitte process ■ Status update (available and developed)  Industry marketing  Respond to RFI’s ■ Coordinating with economic development organizations (EDO’s) ■ Develop electricity rate offering ■ MN tax incentives  Wait to hear… GRE’s current RFI process
• 7.
  Review process  Industryconsultants ■ Represent customer ■ Issue RFI’s • Project Pine • Golden Gate • Project Volt ■ Perform site selection due diligence • Reduce from 100 to 1 site Location decision = avoiding risk
• 8.
   Rural Health Precision Farming  Manufacturing  Just in time inventory  Customer service Connectivity is the key
• 9.
   Historically underserved andsmall corporate facilities  Minneapolis/St. Paul saw over 400,000 square feet of data center development since 2012  GRE has responded to 11 RFI’s since 2015  Emerging market in United States Current Minneapolis/St. Paul market
• 10.
   Hired Deloitteconsulting; worked with members  Five sites selected for on-site evaluation  Minimum criteria ■ 20+ acres ■ At least two fiber service providers ■ <100 miles from a major airport ■ >1 mile away from rail line ■ No chemical plants within 1 mile ■ No nuclear plant within 10 miles GRE certified site program
• 11.
   Currently certified ■37 acres - North Mankato ■ 80 acres - St. Cloud ■ 23 acres - St. Cloud ■ 41 acres - White Bear Township  Sites in progress ■ 120 acres - Cannon Falls ■ 105 acres - St. Cloud ■ 80 acres - Lakeville Sites certified
• 12.
   Sales taxexemptions on capital expenditures and electricity ■ Investments of $30 million over 4 years ■ Sales tax rebate on initial/replacement equipment ■ Sales tax exemption on electricity ■ Length of incentive: 20 years or 2043 Minnesota data center incentives
• 13.
  Recent MN datacenter successes
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   Business Strategy ■Make strategic investments ■ Know the market ■ Leverage assets and capabilities  Sales Strategy ■ Be proactive ■ Develop solutions ■ Create vs. respond Strategic approach