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HomeMy WebLinkAbout2007 ,. , ...." '. ... 1~ TCERDA DRAFT Treasure Coast Education, Research and Development Authority Conceptual Design/Infrastructure (CDI) Committee AGENDA January 9, 2007- Noon 2199 S. Rock Road Fort Pierce, FL 34945 PLEASE TURN OFF ALL CELL PHONES AND PAGERS PRIOR TO ENTERING THE AUTHORITY BOARD MEETING ALL MEETINGS CONDUCTED FOLLOWING ROBERTS RULES OF ORDER 1. Call to Order - .J. Bachelor, Chair Minutes Review for Additlons/Ch8ng_ Approval -.J. Bachel", /' (J ~r /1.... J (ì S ~{ -:::J,..;- ~~ Old Business b'1 ,,'- ~,{ J#" ¡t J::U- J:t---- . A. Update on Master Plan RFP - L. Cox a· ¡7 1t.,,- I':> B. Review of Survey and Environmental Reports - R. Maclaren " L' r-- {."u I rttJ C. Status of SFWMD Topographic Survey -.R. Maclaren - ÓA~ r /r..-( .Af..-.- D. Strategic Assessment status - J. Bachelor S/iN ___ ¡? r-'" New Business: A. Wetlabs Construction Presentation - J. Bachelorllnvited Guests B. Status of 10,000 SF TCERDA office center - J. Bachelor C. Park Security - R. Minton 2. 3. 4. 5. Announcements: A. Next meeting - February 13, 2007 at the TCERDA office, 2199 S. Rock Road, Fort Pierce (MAY HAVE TO RESCHEDULE DUE TO LEGISLATIVE CONFERENCE ?) Anyone with a disability requiring accommodation to attend this meeting should contact Jackie Bylsma at (772) 467-3107, at least forty~ight (48) hours prior to the meeting. C:\Documents and Settings~bylsma\TCERDA\Board\CDI Agenda 010907.doc 1 r Tuesday, December 5, 2006 Jane Bachelor Vice Chair Treasure Coast, Education, Research & Development Authority 2199 S. Rock Road Fort Pierce, Florida 34945-3138 Email: lighthorseharrylee2001@vahoo.comlibach@ufl.edu Dear Jane: It was good to meet with you in Atlanta and to receive your request last week that we submit a proposal for us to prepare a Strategic Assessment of the Park. This assessment is a very important part of the Treasure Coast Park planning process. The Authority needs to know: 1) What kinds of technology companies and other entities should be attracted to the park; 2) The pace at which they can be attracted to the park; 3) The sizes and locations of building sites and building space which will be required to attract these companies; and 4) The marketing and financing and development strategy which will be required to attract them, including the roles which must be played by the Authority and other entities. These outputs of the assessment guide and drive the preparation of the master plan. The consultant work required to produce them is described in the paragraphs which follow. Phase I Benefits and Revenue Which Can Be Achieved Financial and Economic Benefits. First, it is very important that the Authority members and total leadership have a clear understanding of the probable achievement level of success of a well developed research park project on your property in St Lucie in terms of jobs, payroll and County and total public tax revenue. This will be the "return" on any required public investment and will be very important to generating support for the park development effort. Economic and Development Consultants ~ Bachelor Treasure Coast Park, Strategic Assessment Page 2 of 5 Probable Project Revenue. Second, these same groups need a clear understanding of the probable project revenues which will be generated in the development of the research park. And as soon as development parcels are created and marketed through sale and/or lease, important revenues will be generated. High Confidence Assessment of What Can be Achieved. For each of these two very important assessments to be real, they must be based on a rigorous analysis of the amount of floor space and land which technology companies and developers will be able to market to theses companies. This is the probable market potential and drives the accuracy estimates of revenue and benefits. This work also provides the guidance needed for the site planning and costing needed in the second phase of the work. A very important step in the market analysis, and in the marketing and development strategy is the achievement of the "value added" or "anchor" strategy. In reality, there needs to be a finnIy committed primary anchor strategy, which is made up of the research results and associations and other benefits of the USDA, the University of Florida, Florida Atlantic University, Indian River Community College and other proximate entities which will be convenient and readily available to Treasure Coast Park tenants. And there needs to be a secondary anchor strategy focused on optimizing the potential benefits to tenants in the Treasure Coast Park of the proximity and relationships to the various parts of the Scripps complex, FAU Harbor Branch and Torrey Pines Institute at Port Lucie. Some numbers have been run in the past on this St Lucie project by "assuming a level of marketing success" and then attempting to estimate the costs and revenues which would result. But that approach hops over the key question which is, "in light of the probable size of the market and the strength of what can be created here compared to competing research park projects, how much revenue can be achieved in each phase of the park project by the Authority in its development efforts?" Work Program Components For This Phase Task 1 Identification and Assessment of Technology Resources Which Will Be Available On Site to Prospective Park Tenants. Prospective park tenant location decisions will be based on their assessment of the value of the research, specialized equipment, specialized consulting, part time and full time workforce availability and, as time goes on, proximity to other technology entities in the park. Assessment of program materials, in depth interviews on present and programmed future activities and examination of existing corporate linkages are important parts of understanding of the probable advantages of location in the park. The future plans of the existing and potential anchor entities are an important part of this process. As a part of the first work trip a work session will be held with Authority members to focus on the key development issues they identify and present relevant best practice information. Economic and Development Consultants r Bachelor Treasure Coast Park, Strategic Assessment Page 3 of 5 Task 2 Assessment of Scripps and Other Biotechnology and Total Technology Resources Which Will Be In the "Technology Region." Companies considering a location in the Treasure Coast Park will seek to have relationships not only with other technology entities in the Park but also others in this technology region. Here, full consideration of this very important . variable will include a specific understanding of what will be in place in and near the Scripps complex, but also the full profile of technology companies in the broader technology region. Task 3 Benchmarking and Best Practice Analysis of the Most Instructive Mature Parks. This work provides important input on the marketing and development techniques which have been most effective in the comparable agricultural and biotechnology parks which have exhibited success over a considerable period of time. Of equal importance, the experience of these other parks provides a solid base for comparison with the anticipated Treasure Coast Park performance and the preparation of absorption estimates of companies, floor space and revenues. Task 4 Understanding Potential Competitive Project Pressures. Some of the potential tenants considering the Treasure Coast Park will also be considering other parks and locations in this part of Florida and major parks in other regions. The impact of these on market potentials for TCERDP will be described and assessed. Task 5 Projections of Probable Marketing Success at Treasure Coast Park. Based on the actual marketing experience of the benchmarked parks relative to the strength of their technology resource base. These are forecasts for each five year period of floor space and land which will be absorbed by type of company. These become the primary drivers for the estimates of the economic and fiscal benefits of the research park development and the probable project revenue. These five year forecasts will be made for the technology company and other entity space which can be marketed at the park during the first ten years after building space comes available to market and in the second ten years. Task 6 Estimates of Employment and Related Economic and Fiscal Benefits. The actual tax rates and other revenue rates in the County and State and the actual employment and income ratios from the benchmarked parks will be used to translate the Task 5 marketing forecasts into estimates of jobs by type, total payroll, employment related tax revenues and other economic and fiscal benefits generated by employment in the Treasure Coast Park development. Task 7 Operating Revenues and Costs. Operating revenues, estimated based on the Task 5 market forecasts and operating costs based on this level of operations, other park experience and local cost factors will be estimated and combined into projections of probable project cash flow for the period once development begins in earnest. Task 8 Summary Briefing Book and Work Session. The primary findings and recommendations from this phase of the work would be presented in Power Point, briefing book format and presented to the Authority in a half day work session. After digestion by the Authority a second work trip/work session would be scheduled and held. Economic and Development Consultants · Bachelor Treasure Coast Park, Strategic Assessment Page 4 of 5 If a full text is required that will be provided as an optional cost or as a replacement for the second work trip. Time and Cost of This Work This phase of the work could be completed in nine weeks. We believe we have already collected valuable information on our two trips and sessions. The fee for this work would be $29,700. All time and charges and direct expenses are included in that cost. Phase II: Site Planning and Costing and Developer Roles. The revenue and benefits analysis described above is a logical first phase of the feasibility analysis for the research park. Once the scale of these are known, a second phase is needed to refine the preliminary (and quite general) site planning which was done some time ago to determine development parcels and inftastructure phasing and the associated costs. With this input, financial analysis can be carried out and alternative inftastructure financing approaches can be recommended and tested. Authority Development Approach. With this work done, the decision can be made as to whether to fully staff the Authority to develop and market the parcels or to select a master developer partner to work with a smaller Authority staff to achieve the park project. In either case it is likely most buildings in the park will be developed and marketed by private developers. The question will be the extent of private developer responsibility in financing and creating the improved park sites and marketing them to users and developers. Florida has experience with a range of private developer roles in its Authority research park development approach. Florida Atlantic has achieved impressive success by partnering with a developer who combined a strong development track record with a strong commitment to the University. South Florida seems to be moving in that direction. Florida/Gainesville has used this approach but without total success in university/research park integration. Florida State has moved ahead with relatively little private developer leadership and Central Florida has had success with a combined approach. With public financial resources limited, and the real estate transaction tax provision defeated, this decision on the optimum private developer participation is a very important one for this Treasure Coast park. This work can be completed in 75 days, depending on the schedule of the physical planning consultant. The planning work needed at this phase should cost $15,000 to $20,000 and our financial analysis and financing work would cost $10,000 to $13,000. This work can begin as soon as the Phase I work is completed and accepted by the Authority. Phase III Detailed Project Implementation Plan. Once a decision has been made on the optimum developer role, a detailed implementation strategy needs to be prepared and adopted by the Authority. The Authority continues in the process of selecting a senior staff member. Regardless of whether the "strong master developer" Economic and Development Consultants :- Bachelor Treasure Coast Park, Strategic Assessment Page 5 of 5 or "authority as master developer" is decided upon, the primary responsibility and skills most important to park success will be the successful track record in attracting biotechnology and other technology companies to the park. This will include an incubation/technology commercialization component as well as an effective program for attracting existing companies from other biotech centers in the nation and the multi-state region. Phase III will include: ~ Organization and staffing ~ Incubator feasibility and strategic planning ~ Marketing strategy. An organization, management and staffing manual and governing board operating procedures are also often important parts of this detailed implementation plan. This work can begun parallel with the latter stages of the Phase II work and completed within 60 days of the completion and acceptance of the Phase II work. Our fee for this work would be $15,000. Three Phase Totals The total three phase program could be completed in six months and for a fee of $57,700 for the work ofGHGP. In addition, the design components of the program at this stage would be done under separate contract and we estimate a cost of$15,000 to $20,000, as previously noted. We have enjoyed our previous work with the Authority and County leadership and would look forward to this new assignment. If it would be helpful to discuss our proposal in greater detail please let us know. Sincerely, Vernon George Economic and Development Consultants 01~/. ß ¿~/) ~ !( 6-~ ,~;-1 ,- / (;.- ¡J é¿/ ¿ ~~ /)yt' \/ ';.,.y¡¡t:.. ;. j) h //CHI/? ýp~;-;r; 7/~¿- (~ 7r 1),4tJ./1 / ~ ~,j4' ~ )~JlV / C/ ó - --2-S--ro <s / / / // vI) ¿. ý / <:: ;5 (/'.../ â ~ ~ J t$. ¿ ~ ,'")- 11 }\ .. 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