HITS P12 – Step 3: Find out what incentives you can get for your project

HITS Logo 3 Cropped

If you went through the HITS (http://tinyurl.com/sehits) and answered yes to Hiring and Investing, you have a traditional economic development project. If you gave some brief answers and narrative in answering the HITS P3 questions (http://tinyurl.com/sehitsp3), you have defined the project in a way that lets an economic development professional determine if there is a good chance you qualify for incentives. Now, if the preliminary assessment is good, you’re ready to get down to the nitty gritty and get all of the information together needed to estimate the incentives for which you will qualify, the value of those incentives, and needed to fill out most of the applications for those incentives.  The HITS P12 questions will help uncover that information:

1. Parent: What is the corporate structure and how is the company organized (or how will it be organized if it’s not already)? Are there any affiliates, parents, or subsidiaries and if so, describe them and how they to the company being considered? What is the relationship in terms of commerce, control, cash? Are they public or privately owned? If privately owned, who is the owner/are the owners?

2. Products: describe in detail what products or service the company provides as well as any end products it goes into. Describe in detail the market, the company’s market share, as well as who the competitors, immediate and end customers, suppliers are. Describe how the product/service is made, distributed, sold, delivered, and serviced. What is the company’s/the product’s competitive advantage?

3. Performance: provide a detailed company history. How profitable is the company? How has profitability trended? How are sales? How have sales been? How large is the company? How many employees, facilities? How has it grown or declined in recent years in these areas?

4. People: who’s running the company? Who’s heading up the site selection process, and who is the main contact? Who also is involved with that process, both from inside and outside the company? Who will be managing the project once the site selection and development has been completed?  Do you want me to run point for all of the sites and incentives within the Springfield MSA/Clark County area?

5. Purpose: what’s the purpose for the project? What is motivating it? Why does the company need to expand this way? What assumptions are underlying the anticipated growth?

6. Positions: as jobs are the number one criteria for determining incentives, it also has the most questions. I’ve broken it up into five separate question areas.

  • 6a. Current Positions: How many current full-time, permanent employees do you have in the US, in Ohio, and at the proposed project site? How many did you have in Ohio and at the proposed project site one year ago? Is any of the workforce seasonal?
  • 6b. Future Positions: How many net, new, full-time jobs will the company create in three years, both related to the project and those that will be part of other growth? How many new permanent, part-time positions are expected to be created? Does the company expect to use a temporary agency? Will any of the future positions be seasonal?
  • 6c. Relocation: Will there be a relocation of jobs from any other Ohio location? If so, how many and from where? Will there be a relocation of jobs from another US location? If so, how many and from where? Please describe the reasons for the relocation.
  • 6d. Job Types: Please provide a general breakdown of the new permanent full-time jobs to be created by category and number (e.g., 200 customer service reps, 10 supervisors, 1 manager).
  • 6e. Wages: What will the average non-loaded (excluding benefits) wages of jobs (or payroll) for new employees expected to be by the end of the third year. Alternatively, provide the anticipated payroll for the new employees by the end of year three? What kind of benefits will be provided?

7. Property: this is the second most critical area.

  • 7a. Site: Has a site or sites been selected? If so, for each site being considered in the Springfield MSA/Clark County area, please provide the address or location. I can usually look them up on the County GIS system and get specific details. If known, provide acreage, owner, and price. If the company is searching for a site, please provide acreage desired and any requirements of the site (e.g., need to be 5 miles within an Interstate) as well as any desired characteristics (e.g., it would be great if rail were available).
  • 7b. Facility: Has a facility or space been selected. If so, for each facility being considered in the Springfield MSA/Clark County area, please provide the address or location. If known, provide acreage, owner, and price. As with sites, I can usually look them up on the County GIS system and get specific details. If the company is searching for a facility or space, please provide amount of existing space desired and any requirements of the site (e.g., needs to have 18’ ceilings) as well as any desired characteristics (e.g., it would be great if it were a stand-alone facility, but multi-tenant is OK).
  • 7c. Equipment: what equipment is needed for the project? Please provide a list of major pieces of equipment along with cost estimates, brief (very) description and/or brand name and number. How is the purchase of the equipment staged by year? Is there any other equipment that will be needed as a matter of course but is not related to the project?

8. Payment: how is the company planning on funding the project? Are they planning to finance the project externally? With which bank or banks are they working? If they are working with a bank, are there terms? Is the company interested in entertaining public financing as part of the project?

9. Process: When does the company want/need to receive an initial proposal by, and in what format would they like it. When is the short list going to be developed? When would a tour of prospective properties be scheduled? When would a site be selected, when would construction begin and end? When would hiring begin? When would product begin to be made and shipped?

10. Possibilities: What other locations, areas, regions, states, and/or countries outside of the Springfield MSA/Clark County are being considered?

11. Proposals: Are there other site/building proposals on the table? Are there incentives proposals on the table? If so, is any of that information available/can it be shared?

12. Publicity: Is the project public? Has the company already announced that they were doing it? Have they already purchased any of the assets or hired any of the people involved? If so, please describe. In working to assist the company gain incentives, is the company willing to meet with federal, state, regional, and/or local officials? Are they willing to have their company name shared with those folks? Are they willing to have project details shared?

To go through this or submit P12 information in order to get a preliminary assessment of incentives, contact David Zak, Vice President of Economic Development at the Greater Springfield Chamber.  (937) 631-5315 (cell), (937) 521-1935 (direct office), dzak@greaterspringfield.com.  Twitter: @springfieldedge, Blog: http://tinyurl.com/edgeblog, LinkedIn: http://www.linkedin.com/in/davidzak.

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