Industrial Economic Incentive Negotiations
The Challenge:
After 6 months of trying to negotiate a deal on their own, the client engaged our team with just 7 months left on the existing lease. We were challenged with completing a multi state search, negotiating economic incentives and a lease agreement and completing a phased build out so the client was fully operational in their new facility with enough time to allow for restoration of their 400,000 sf facility before the lease expiration. This all would need to be done while mitigating interruptions in production and containing costs.
Our client had a 400,000 sf heavy manufacturing and distribution facility in Tennessee. The state and local municipalities did not initially offer incentives to keep the company in the state. With just seven months left of their lease and no option to remain in their current location, the Wildmor Advisors team needed to identify the optimum location including the most aggressive incentive package, best labor pool, strong community, quality of life factors and proximity to an international airport. The budget to move was limited making the upfront pricing estimates critical. The site selection, economic negotiation and transaction management process was condensed into a ten week period to allow time for a phased build out.
The Solution:
Wildmor Advisors conducted an in-depth strategic planning process in order to gain a complete understanding of the requirement from each of the clients stakeholders (Leadership, Finance, Operations, Engineering, IT, HR, Legal).
In order to perform the necessary due diligence within the severe timing constraint, our team ran a parallel path negotiating economic incentive packages, defining project costs upfront and negotiating lease terms with the top location in each of the three states being considered. Our team provided the client with three fully negotiated and priced options, allowing for a highly informed decision to be made.
testimonial:
“Following an extensive evaluation, Alo selected Greenville County, South Carolina, as the ideal location for our company to further strengthen service to our customers and reinforce our commitment to the North American market. We look forward to becoming part of the thriving business community in Greenville County.” -Alo Group CEO Niklas Astrom
Scope of services:
Strategic and Workplace Consulting
Multi-State Site Selection
Transaction Management
Project Management
Economic Incentive Negotiation
Move Management
Existing Facility Restoration Negotiation and Implementation
