A CUSTOMIZED STRATEGY BUILT TO SHORTEN THE SITE SELECTION TIMELINE AND DRIVE VALUE
EXECUTIVE OVERVIEW 45 DAY STRATEGY
PROJECT TEAM PROJECT TEAM OVERVIEW
13 14 15
PROJECT TEAM DESCRIPTION
SCOPE OF WORK TRANSACTION MANAGEMENT
INTEGRATED SITE SELECTION
C&W DIFFERENTIATORS SPEED TO MARKET
23 24 24 24 24 25 25 25
BATTERY EXPERTISE & CLIENT FAMILIARITY
INTEGRATED SITE SELECTION
CORPORATE CAPITAL MARKETS
SUPPLY CHAIN OPTIMIZATION
APPENDIX BUSINESS INCENTIVES
PROJECT MANAGEMENT 28 TABLE OF CONTENTS
Proposal for Real Estate Services GOTION 3
4 GOTION Proposal for Real Estate Services
Steve Billigmeier & Rob Bain will lead the Transaction Team and be the primary points of contact for Gotion throughout the entire process. Understanding this requirement may ultimately land in the Southeast, we’ve taken the initiative to identify top-of-market brokers in several key Midwest and Southeast markets that will further augment the project team’s site selection efforts. Understanding this requirement may ultimately land in the Midwest or Southeast, we’ve taken the initiative to identify top-of-market brokers in these respective markets that will further augment the project team’s site selection efforts. Amy Gerber & Tyler Hales will lead the Location Strategy team, and as such, will manage the various service offerings that fall within this jurisdiction. Manufacturing location strategy, supply chain impact analysis, financial modeling, and economic development engagement are all intricate components of the broader Site Selection Team that must work in parallel as the process evolves. We will layer in other handpicked resources across the country to specifically lead each service offering based upon past experience and success on behalf of other clients. Kyle Schneider will lead the Project Management Team due to his previous experience assisting large battery manufacturers design their facilities while ensuring efficient construction timelines, which is particularly important given today’s supply chain constraints. While we understand project management isn’t currently in scope for this project, we wanted you to be acutely aware of our breadth of knowledge, experience, and expertise should your strategy change in the future. We wanted you to be acutely aware of our breadth of knowledge, experience, and expertise should your strategy change in the future. Further we will leverage Kyle and his team’s expertise as we perform due diligence on potential sites as part of our Transaction Management process.
On behalf of Cushman & Wakefield (C&W) and our entire project team, we are thrilled to present our real estate site selection proposal for Gotion’s next U.S. manufacturing facility. Below we have outlined our unique strengths and experience, proposed scope of work, and pricing structure. We know that speed to market is key for this project - our team is ready to immediately run a comprehensive search to identify ~1 million square foot facilities optimal for Gotion’s requirement. We have outlined our action plan for the next 45 days to ensure we are successful. In addition, we will synthesize other important location data (talent, supply chain, business continuity, etc.) to holistically evaluate the sites we identify. We have included other relevant information in the appendix following this Executive Overview. Understanding Gotion requires a trusted partner who understands the complexities of business incentives negotiations combined with the ability to mitigate supply chain obstacles while also ensuring speed-to-market delivery remains top of mind, we have assembled a world class team prepared to work in tandem to achieve excellence. We recognize projects of this scale require careful coordination and seamless execution. As such, we realize the importance of defining responsibilities, aligning objectives, driving sustainability, and ultimately securing a favorable real estate solution. In attempt to clearly define roles at the onset, we’ve divided the project team into three distinct subcategories – Transaction Management, Site Selection, & Project Management with a brief description of the leads for each below. Refer to the Project Team section for the full team and organization structure. C&W UNIQUE STRENGTHS THE RIGHT TEAM
Proposal for Real Estate Services GOTION 5
INTEGRATED SITE SELECTION Our scope of work includes transaction management and location selection advisory (collectively referred to as our Integrated Site Selection Process). This integrated approach ensures seamless coordination of these three primary workstreams (with designated leads for each identified above) which is critical to speed to market and overall success of the project. The proposed Project Timeline illustrates how the three major components of this project will be overlaid into a cohesive process. Transaction Management - C&W Transaction Management services are fully geared to enhancing Gotion’s business and real estate strategy. Our disciplined approach is based upon our team’s experience assisting similar clients facing similar challenges. The Transaction Management team will quarterback the entire transactions process keeping all parties aligned on Gotion’s business objectives and mitigate risk through the entire real estate life cycle regardless of the ultimate location.
THE RIGHT EXPERIENCE While we realize most global brokerage firms are able to create an extensive list of large-scale site selection clients, C&W is uniquely positioned given our experience within the battery / battery component manufacturing industry. To name just a few examples, C&W recently advised Honda & LG on a $4.4 billion production facility to be built in Ohio. In addition, C&W was recently hired by Rivian to open several manufacturing facilities throughout the country. Furthermore, C&W has been Albemarle Corporation’s exclusive real estate provider for the last 2 years and recently executed a 5-year extension to assist with transaction management and site selection services across the world. Our proposed Site Selection Team has extensive experience advising these and countless other advanced manufacturing projects throughout the country. We will apply this experience to execute this project efficiently and methodically for Gotion.
6 GOTION Proposal for Real Estate Services
Location Selection Advisory – We have a best-in class team of location strategy, labor analytics, and supply chain considerations. Our process starts by identifying mission-critical criteria and screening viable markets. Potentially viable markets are run though a scorecarding process incorporating all factors of influence important to the success of this project for Gotion. Once a short-list of markets is determined our location advisory team works closely with Transaction Managers to evaluate sites in each market as well as Incentives experts to initiate a competitive incentives procurement process. The Location Advisory process often incorporate hundreds of data points into market screening and scorecarding. A sample of those factors of influence, data platforms utilized, and interactive models are included in the Scope of Work section .
While this initial scope does not include incentives procurement services, Tyler Hales and Amy Gerber, have strong working relationships with city, regional, and state level economic development organizations across the U.S. We will lean on these organizations to provide data and site validation. We would be happy to perform incentives services (supporting negotiations, meetings, applications, contract oversight, and ongoing administration) if desired by Gotion. We have outlined our incentives scope of work and pricing in the appendix . It is critical that these activities take place in lockstep with real estate and location strategy workstreams.
Proposal for Real Estate Services GOTION 7
Determine Target Employee Profiles & Create Labor Model for Target Markets Create Interactive Esri Map Layering 50+ Metrics (Labor, Battery Manufacturing Locations/Announcements, Union Activity, Business Continuity Risk, Cost, etc.) Evaluate State & Municipal Regulatory Environment DESKTOP RESEARCH & MODELING (FACTORS OF INFLUENCE)
LABOR & LOCAT
COMMENCE SURVEYING EFFORTS
Building Size & Necessary Zoning
Comprehensive Industry Database Search
C&W National Industrial Forum Outreach (Confidential)
Required Clear Height, Power, & Parking Desired Adjacent Land (Expansion Needs)
C&W Managing Principal Outreach for each Selected State (Confidential) Survey State & Regional Economic Development Agencies in Markets of Interest (Confidential)
Rail & Highway Connectivity
Rank Markets with Viable Real Estate Options Based on Overall Operational Desirability Qualitative Market Research (Operating Costs, Peer & Competitor Companies, Recent Announcements/Press, etc.) Review Requirement with Economic Development Resources (Confidential) SYNTHESIZE DATA
Prepare Site Level Scorecard Providing Ranking for all Sites Based on Key Project Factors of Influence - Site Readiness, Availability of Utilities, Labor Profiles, Fully Loaded Operating Costs, Business Friendliness, etc.
Cross-Layer with Real Estate Survey to Create Short-List FINALIZE SURVEYING EFFORTS
FINALIZE SURVEYING EFFORTS Prepare Detailed Survey with all Necessary Information Incorporate Customized Scorecard Based on Criteria
Review Electric Infrastructure Requirements with Respective Electric Providers (Confidential) Gather Timeline to Install Necessary Infrastructure by Facility Obtain Rate Estimates Based upon Ramp Up Use & Demand Gather Green Energy Production for Each Electric Provider & Timeline to be Carbon Neutral
Cross-Layer with Labor & Demographic Survey to Create Short-List
For a lease transaction , the Transaction Team would be compensated by the property owner payable upon successful completion of a lease transaction, at the market rate as applicable for each particular market. The compensation structure, once determined for each market under consideration, will be communicated to the Gotion team. For a sale transaction , the Transaction Team would typically be compensated by a sale commission payable by the seller through escrow; or by Gotion if and only if the characteristics of that particular market dictate the “Buyer Pay” model. The compensation model, once determined for each market under consideration, will be communicated to the Gotion team.
Gotion shall only be charged a transaction management fee if the seller is unwilling to pay C&W’s fee. The fee to C&W from Gotion shall be capped at 2% of the gross purchase price.
Procurement of real estate solution
Landlord or Developer
Gotion (cost fully
Full market screening and scorecard process to determine viable markets and sites for facility.
If C&W completes and collects fees outlined above associated with Transaction Management services, Gotion will not be charged for location selection advisory work.
absorbed by C&W if hired to perform Transaction Management Services)
Location Selection Advisory
*Please refer to C&W’s MSA Agreement for more details on the proposed pricing structure.
We trust that this proposal provides a greater understanding of how excited we are to become your partner on this journey. Please do not hesitate to contact us with any further questions or comments.
Steve Billigmeier Vice Chairman
Rob Bain Managing Director
Tyler Hales Executive Managing Director
Amy Gerber Executive Managing Director
10 GOTION Proposal for Real Estate Services
Proposal for Real Estate Services GOTION 11
12 GOTION Proposal for Real Estate Services
PROJECT TEAM OVERVIEW
TYLER HALES LOCATION SELECTION & STRATEGIC ADVISORY LEAD
TYLER HALES LOCATION SELECTION & ECONOMIC DEVELOPMENT LEAD
STEVE BILLIGMEIER TRANSACTION MANAGEMENT LEAD
ROB BAIN TRANSACTION MANAGEMENT LEAD
SUPPLY CHAIN OPTIMIZATION Tim Foster ACCOUNT LEADERSHIP ACCOUNT TEAM PROJECT MANAGEMENT*
Local Cushman & Wakefield transaction management experts will be included based on qualified sites and potential cities under evaluation
INDUSTRIAL LOCATION STRATEGY Ben Harris
FINANCIAL MODELING Olan Young
PROJECT MANAGEMENT Kyle Griffith
PROJECT MANAGEMENT Chad Stevens
MANUFACTURING DESIGN Jon Zimmerman
KYLE SCHNEIDER PROJECT MANAGEMENT LEAD
*We understand project management services are not part of the core scope of this project. We are illustrating this team due to their depth of experience in this space as well as the role this team will play in helping technical site evaluation as part of the transaction management process.
Proposal for Real Estate Services GOTION 13
PROJECT TEAM DESCRIPTION As illustrated on the previous page, the team was specifically assembled for this project based on background and experience. Team members were chosen to provide world class transaction management & site selection services and if needed, incentives procurement & compliance. TRANSACTION MANAGEMENT The Transaction Management team will work in tandem with the Location Selection and Strategic Advisory team to ensure a seamless process whereby the physical real estate opportunities align with the results of their work. Once a site or existing building is identified, the Transaction Management will work closely with the local team within the selected market to drive the best deal terms possible. With the multitude of moving pieces involved in this process, it’s imperative the Transaction Management Team communicates daily with Gotion as well as the broader project team to maintain all parties are working toward a common goal.
LOCATION SELECTION AND STRATEGIC ADVISORY
We understand the complexity, risk calculus, and capital investment associated with this project. Tyler Hales and Amy Gerber, the Strategy Leads for this project, have extensive experience across location strategy, business incentives, and advanced financial analytics. Industrial Location Strategy – C&W’s location strategy and site selection team, led by Ben Harris (Atlanta), has unparalleled experience ascertaining your business drivers, synthesizing market data, and making data-driven location recommendations. Supply Chain Optimization – Tim Foster leads C&W’s Supply Chain Optimization group. We understand that proximity to suppliers and customers is a key driver for this project’s ultimate location. Time will ensure that we optimize logistics costs and shipping times across the network to mitigate potential future hurdles. Financial Analysis – Olan Young will work closely with the account team to lead financial analysis and guidance required for executive-level decision making and transaction execution throughout all phases of the project. He will perform comparative economic analysis of potential solutions including cash flow, income statement, and balance sheet impact to conform to Gotion’s financial methodologies.
14 GOTION Proposal for Real Estate Services
PROJECT MANAGEMENT Cushman & Wakefield offers a diverse team of project managers who offer a high level of relevant expertise. We start by listening to the needs of every client and every project in order to gain an understanding of what success means. We are nimble and flexible and believe that in order to deliver a successful project we must set the groundwork early in the process. Specifically, Kyle Schneider, who will service as lead Project Manager for this project if needed, has extensive battery materials manufacturing experience and understands how to delivery ground-up as well as T.I. manufacturing projects, especially focusing on growing companies who are looking to scale. Kyle Griffith and Chad Stevens provide additional geographic coverage in the Central and Eastern US, as needed. Jon Zimmerman brings 35 years of manufacturing planning experience specializing in helping companies integrate all business operations cohesively into new facilities.
C&W EXPERIENCE C&W TRANSACTIONAL EXPERIENCE
C&W INCENTIVES EXPERIENCE (LAST 3 YEARS)
25+ PROJECTS OF 250,000 SF+ 8,000+ JOBS $2.0B+ CAPITAL SPEND
Proposal for Real Estate Services GOTION 15
SCOPE OF WORK
16 GOTION Proposal for Real Estate Services
SCOPE OF WORK
TRANSACTION MANAGEMENT AND REAL ESTATE FEASIBILITY Real estate feasibility evaluation of potential markets may include the following as appropriate: • General location attributes such as soft-support for production and manufacturing facilities • Access to transportation nodes, railways, ports, and interstates • Zoning and entitlements support in key industrial areas • Local permitting processes • Quantity of potential sites, existing facilities and under construction buildings that could potentially meet project objectives The real estate feasibility study is an iterative process that starts after identifying potential markets that meet labor and workforce requirements. The real estate feasibility study will be conducted in parallel to the site selection analytics process. As both studies complete, C&W will combine all relevant data into integrated deliverables for a holistic view of the top candidate market locations and all of the appropriate attributes. Each market location will be benchmarked against each other with scorecards. This integrated process is described in more detail in the Executive Summary . INTEGRATED SITE SELECTION APPROACH There are numerous factors influencing the decision and level of success for your site selection project, including variables around manufacturing, transportation, distribution and the delivery of products to end-users. We also examine factors around your business strategy, supply chain, people, real estate and financial goals. Using the data gathered, we produce customized reports, maps and deliverables that unlock the best location for your facility. PROCESS
Our Integrated Site Selection Approach Includes:
OUR INTEGRATED SITE SELECTION APPROACH
Business Objectives Business Case Approval Network Strategy
Meet Service Level Requirement Cost Containment Growth Enablement
Incentives & Financial Implications
Supply Chain Analysis
MHE Requirements Concept Design
Employee Headcount Skill Requirements Organizational Design Training & Recruiting Demographics
Build-to-Suite vs. Existing Infrastructure Market / Site Proximity Project Management
Cost of Capital Construction Costs Incentives / Tax Environment Leave vs. Own
Equipment & Software Systems Freight Transportation Costs Inventory Optimization
CLICK HERE for full size version
Scoring Matrix of: Cost Quality Long-term Sustainability Quantity Scalability Competitive Set
Visualize Site Variables Lease/Site Negotiations Budgets & Timelines
Negotiate Incentive Package Total Operating Costs Board-Ready Financial Deliverable
Function Number Geography
OPTIMAL BUSINESS LOCATION
SCOPE OF WORK
SITE SELECTION FACTORS OF INFLUENCE C&W’s site selection process incorporates hundreds of data points into market screening and scorecarding. We’ve outlined some key site selection categories here (note this list is not exhaustive and will be customized to Gotion’s specific drivers).
Materiality and application of business incentives Cost of labor for each relevant hiring category Cost of real estate and capital improvements Transport costs Cost of utilities Corporate tax environment: income, sales, property taxes Business friendly climate
Cost & Ease of Doing Business
Proximity to large clients Proximity to natural resources Supply Chain considerations: supplier/customer locations Supply Chain considerations: proximity to transportation/rail/ports/etc.
Accessibility & Supply Chain
Availability of viable real estate solutions Timeline of permitting process
Speed to Market
Developer readiness Overall Infrastructure Non-financial government incentives: land grants, expedited permitting, utilities/infrastructure, etc.
Natural hazard/disaster risk Humidity Availability of water and other critical resources
Key labor pool size by market for each relevant hiring category Key labor pool density by market for each relevant hiring category Hiring competition and presence of competitors/peer companies Job postings vs hiring volume by market
Skills assessment: detailed talent insights to identify current and future skills gaps and competitor analysis Diversity - presence of underrepresented communities and women in key hiring categories in market Submarket trends - commute patterns, density of talent, etc. Higher education pipeline: number of graduates, collaboration opportunities, trade programs, upskilling, etc.
Battery/Advanced Manufacturing & Life Sciences/Biotech Sector Concentration Peer/Competitor analysis - identification of other battery facility announcement trends
18 GOTION Proposal for Real Estate Services
SCOPE OF WORK
SITE SELECTION DATA We use best-in-class datasets in our location strategy and site selection process. A sample of those tools and associated capability/update cadence is here:
FREQUENCY OF UPDATE
Workforce supply, demand and talent pool profile data and analytics.
Real time talent intelligence data from LinkedIn database
LinkedIn Talent Insights
Workforce analytics, diversity, cost
Salary and wage benchmarking by city
Customized C&W Industrial Site Selection app showing availability of manufacturing talent, rail and port networks, location of major logistics, providers, demographic data and any other critical custom layers
Annually - midyear
U.S. property data subscription service
Data platform that uses mobile location data to track visitors, employees and residents for a location used for trade analysis, visitor journeys, demographic segmentation, neighborhood assessment, traffic and more. Global deal database tracking real-time financial incentives awarded to companies for foreign and domestic investment projects
Comprehensive economic data and forecasts
Proprietary C&W database of real estate statistics and comps
Proposal for Real Estate Services GOTION 19
SCOPE OF WORK
MARKET/SITE EVALUATION & DECISION SUPPORT Our integrated site selection process incorporates interactive models that provide a data foundation for an eventual location and site decision. These decision support tools allow for comparison of candidate markets and sites as well as sensitivity analysis by changing weightings of all input criteria. Additionally, the output from this process is board-ready deliverables supporting the location decision.
20 GOTION Proposal for Real Estate Services
Proposal for Real Estate Services GOTION 21
22 GOTION Proposal for Real Estate Services
SPEED TO MARKET We understand speed to market is one of the most critical drivers for this project. The sample project timeline below shows our typical integrated process as an example. We will aggressively pursue the 45 day workplan as outlined earlier in this document. Note that the Project Execution section will depend heavily on the type of real estate solution identified, but understand existing infrastructure is strongly preferred given Gotion’s expedited timeline. We are committed to ensuring an expedited location evaluation process.
FULL TEAM |
PROJECT MANAGEMENT |
TRANSACTION MANAGEMENT |
SITE SELECTION |
2023 2024 J F M A M J J A S O N D J F M A M J J A S O N D
PROJECT INITIATION AND LOCATION ANALYTICS
Project Kickoff - stakeholder interviews, data room, master schedule, etc. Confirmation of key location drivers & factors of influence Project start up / determine initial facility requirements (power, infrastructure, etc.) Assess project risks & determine risk mitigation strategies Finalize financial objectives & ROM budget Current & future talent impact analysis Market screening to determine viable long-list (~10 cities that meet mission critical criteria) Initial & confidential tax/incentives due diligence Customized location scorecard and short-list determination (qualified list of ~3 cities to pursue further) Design Team Procurement GC Procurement Procure NDA's & send RFP to relevant economic development agencies - city, regional, state, etc. Short-list market surveys and real estate due diligence Intramarket labor and site analysis Program definitions Tour top performing cities/sites & meet with economic development authorities Prepare and send real estate (site/developer) RFP packages Building due diligence / initial financial evaluation INITIAL integrated site analysis: real estate, tax & incentives, labor, building/infrastructure comparisons Schematic Design / integration / owner approval Review 1st round real estate/development proposals from landlord/developer teams Issue 2nd round real estate RFP to shortlisted landlords/developers Issue 2nd round incentives RFP package to economic development authorities UPDATED integrated site analysis: real estate, tax & incentives, labor, building/infrastructure comparisons Finalize best and final real estate RFP with top developer / landlord Finalize best and final incentives offer with authorities FINAL integrated dashboard & recommendation (supply chain, labor, incentives, real estate combined) Gotion review, alignment, approval & selection Technical Site Due Diligence SHORT-LIST MARKET & SITE EVALUATION PROJECT EXECUTION
Development/lease contracts negotiations & execution (whichever is applicable) Incentives implementation, applications submission, hearings, & execution Long lead items / material sourcing Construction Documents / Code analysis Permits / Jurisdictional approvals Construction Equipment Delivery and Commissioning
CLICK HERE for full size version
Proposal for Real Estate Services GOTION 23
BATTERY EXPERTISE & CLIENT FAMILIARITY
CORPORATE CAPITAL MARKETS Cushman & Wakefield provides corporate occupiers and owners with real estate solutions created and executed to yield optimum results by arbitraging corporate credit and real estate market underwriting. Our customized advisory services and financing solutions provide our clients with key advantages to meet their objectives. Our full-spectrum financial services platform provides clients with customized and integrated capital solutions for all asset classes. A deep understanding of the capital stack allows us to structure optimal strategies and negotiate the best terms for each transaction. Through long-standing relationships and industry expertise, we provide comprehensive advice and execution services to meet our clients’ needs. SUPPLY CHAIN OPTIMIZATION Our supply chain optimization team, led by Tim Foster, will work to identify the infinite variables around Gotion’s manufacturing, transportation, warehousing and product delivery requirements to optimize the flow of goods from production to final sale. Whether it’s optimizing Gotion’s network and inventory or securing the right facility in the right location, we assist you along the entire continuum of the supply chain. C&W’s sophisticated software evaluates and optimizes millions of supply chain components including product sourcing costs, inventory carrying costs and facility costs to design a supply chain with the lowest total landed logistics and inventory costs.
Albemarle Corporation recently signed a 5-year exclusive global MSA with C&W that provides global site selection & transaction management services across the U.S. Further, Cushman & Wakefield is rapidly becoming a leading partner for additional battery manufacturing projects. C&W recently advised Honda and LG on a $4.4 billion production facility to be built in Ohio. In 2021, C&W helped Enevate scale from an R&D facility to a full scale battery manufacturing facility including analytical lab, pilot line and full scale production line. The property was built speculatively in 2019. Lastly, Cushman & Wakefield was recently hired by Rivian to open several manufacturing facilities throughout the country. INTEGRATED SITE SELECTION C&W realizes the challenges you’re up against and understands the complexity of making huge capital investments in your physical assets. Our team of site selection experts will help you confidently choose the best site for your business needs with easy-to digest data analysis and local market insights. We put your real estate to work for you by making it a competitive advantage that mitigates risk, lowers the total costs of operations, and meets service delivery pressures. We partner with you to evaluate locations and identify the best site for your business using data-driven analysis and local market expertise. Our Integrated Site Selection methodology employs a hub-and-spoke model in which a single-point of-contact leads, strategizes and coordinates all relevant services. This model ensures transparent communication and the successful delivery of a holistic real estate solution.
24 GOTION Proposal for Real Estate Services
MANUFACTURING PROGRAMMING AND DESIGN Cushman & Wakefield’s Programming & Design Group takes a fresh, innovative approach at the organization of the manufacturing space to consistently improve operations and allow businesses to scale and grow successfully. This service is led by Jon Zimmerman who brings over 35 years of manufacturing planning experience. Jon has a gift to examine and understand what the best methodologies are for integrating all business operations cohesively. His involvement has proven time and again to be an instrumental part in the growth of many companies. SUSTAINABILITY Cushman & Wakefield’s Sustainability Services offering provides a unique advantage to deliver actionable solutions by helping discover cost-saving opportunities, implement best practices that optimize building operational performance, enhance the occupancy experience and mitigate environmental risk. Cushman & Wakefield helps clients track and analyze sustainability KPIs, including energy, water, waste and indoor environmental quality with third party tools and real-time metering. From tenant spaces to whole building assets or portfolios, our services create ROI by boosting building operating efficiency and lowering operating costs.
GLOBAL PLATFORM Cushman & Wakefield (C&W) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Founded in 1917, C&W is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. C&W has a strong entrepreneurial spirit and is known for its dedication to its clients. C&W’s mission, as published in its mission statement, always puts the client first, mobilizing and delivering vast knowledge, resources and talent throughout the world on behalf our clients, enabling them to make the most informed real estate decisions. The ability to marshal and integrate a wide range of diverse services from our own in-house resources is a substantial advantage that sets us apart from other real estate firms.
P I T
E C P M
F A C I L I T
I N G
CORE SERVICE LINES
26 GOTION Proposal for Real Estate Services
package that truly benefits the company both from a short- and long-term perspective. In addition to state and local agencies, we also evaluate the applicability of federal incentive opportunities either based upon the real estate location (e.g. New Markets Tax Credits) or working with specific federal agencies such as DOE where the grants could be appropriate and applicable. C&W also understands that an incentive only has value if it is captured and realized by the company. If requested, C&W will manage the incentive compliance for Gotion to ensure the economic development and government agencies achieve their commitments to the project. The C&W incentives team has developed an in-house proprietary incentive compliance platform that will support the realization of the incentives by Gotion, giving Gotion an on-line portal for real-timing incentive tracking and incentive reporting. HOW WE CAN HELP • Evaluate and estimate the tax and operating cost impacts for each location being evaluated • Identify potential hurdles/opportunities available in each market • Develop a comprehensive negotiation strategy based on the project scope and the project’s financial impacts in each market • Expertly engage local and state officials and economic development agencies through our time-tested relationships • Identify utility partners to support initial infrastructure requirements and on-going operating costs • Effectively compare multiple incentive offers
Our understanding is that Gotion’s initial focus is identifying optimal sites and existing infrastructure for this new manufacturing facility. As such we have not included incentives procurement and project management services in the initial proposal. However, we have outlined our scope and pricing for both of these services in this appendix. If desired by Gotion now or in the future, C&W would be thrilled to partner on either of these. BUSINESS INCENTIVES Capital intensive projects, such as the project Gotion is undertaking, create a financial strain on the company’s Profit and Loss statement. Gotion will spend a significant amount of money up front to establish and build out the new facility and recruit and hire new talent. All of this investment outflow will occur prior to the facility generating the new revenues, which creates financial and timing risk. C&W understands that risk, and our incentives team excels at identifying the best economic development and government partners to help mitigate that risk, both timing and financial. Our team maintains strong engagement with public/private partnerships and incentives granting agencies across the country at all levels, including city mayor’s and state governor’s offices. Gotion’s presence in a particular location has tremendous financial implications not only for your company but also for the local municipality, state and utilities. The C&W incentives team utilizes a Profit & Loss Statement approach to incentive negotiation. This approach allows us to understand the costs to establish and operate a facility in each market and also the revenue streams that would be generated by the state and local governments as a result of the new investment and job creation. Our incentive negotiation approach is customized for each market being evaluated based upon those costs and revenue streams. This allows us to ensure that the applicable agencies develop an incentive
against a wide range of quantitative and qualitative factors and benchmark incentive awards against
Proposal for Real Estate Services GOTION 27
Development Services (PDS), understands that real estate decisions go beyond scope, schedule, and budget. We manage the planning, design, and construction process, to ensure value and savings, without sacrificing quality. Our project managers consistently deliver 10% to 15% construction cost savings to our clients and schedule improvements, while minimizing project risks. C&W’s PDS team pursues the best solutions on behalf of our clients. It is not as simple as saying, on time and on budget. We listen closely to our clients, fully grasping their project goals and business needs while driving quality beyond their expectations. It takes determination to produce that level of work, and world-class expertise to do it well. C&W provides expert, end-to-end Project Management services that remove the risk for our clients. The key to our success is early involvement. Our Project Management team assists transaction teams with initial building selection activities while providing advice and input on work letters and related lease provision. Ultimately, we are engaged to bring work culture to life. C&W will manage the entire construction process from upfront strategic planning to move and relocation services. Lined-Up Service Providers – Cushman & Wakefield maintains a network of external architectural and engineering service providers and is able to make contractor recommendations based on site location and scope of the services required. These providers are accompanied by our in-house project and development services team. The Request for Proposal (RFP) & Competitive Bidding Process – Cushman & Wakefield has a highly developed process for the creation and distribution of RFPs, analyzing the responses, and ultimately providing disciplined recommendations on vendors and consultants for this project based upon cost, quality, experience, industry reputation, and more.
• Negotiate to ensure all possible benefits are secured • Lead the incentive approval efforts to achieve full incentive approvals prior to executing any real estate transaction or public announcement • Coordinate public announcements with state and local Governor’s and Mayor’s offices • Monitor terms for compliance • Provide a seamless connection to a full range of in-house services including brokerage and construction management COST-MITIGATION AND INCENTIVE PROGRAMS MAY INCLUDE • Free or discounted land • Utility and transportation infrastructure support • Cash grants to support capital investment • Construction sales tax relief • Operating cost relief » Property, sales, income/excise tax » Utility usage cost reductions » Local gross receipts tax • Recruitment and training assistance • Expedited permitting, zoning and variance support • Building permit and impact fee relief • Federal incentives PROJECT MANAGEMENT While we understand this isn’t of initial concern, we wanted to expand on C&W’s Project & Development Services offerings in the event our assistance is required as the process evolves. Cushman & Wakefield’s project management team, Project &
28 GOTION Proposal for Real Estate Services
Response – The responses are received, date stamped, and logged-in as they are delivered to the office. A bid opening meeting will be scheduled with all applicable team members promptly after receipt of the responses. An analysis of the responses will then be undertaken to ensure that all responding firms are consistent in their understanding of the project. In many instances, inconsistencies in the content of the responses are evident and inquiries will be made to clarify the responses. Award – Upon completion of the leveling process, a series of interviews will be scheduled to establish a comfort level prior to awarding the contract. Gotion will then select award winners.
Process – After identifying all team members, Cushman & Wakefield will create a list of potential bidders for each discipline that will receive an RFP. We routinely include all the vendors and consultants that have an existing relationship with our clients on the RFP distribution list. RFP Package – After having identified the need for a specific consultant on your project and created a potential bid list, the RFP package will be prepared. This document is extremely flexible and can easily be customized for the relevant discipline. Each RFP must assure that the appropriate scope is presented to the bidders and will help establish each vendor’s qualifications for the work at hand.
Financial Analysis - fully loaded operating cost modeling including tax, incentives, labor, real estate, utilities, etc. Incentive Consulting - C&W providing advisory services on negotiations, meetings, applications, etc. on an as needed basis. Incentive Administration - C&W to provide full administration and ongoing incentive support services through our platform
Flat fee - can be performed in parallel with initial 45 day real estate and site selection work.
$50K flat fee
$30-50K/month (depending on number of cities/ regions under consideration)
Monthly retainer through term of negotiation period (estimated 4-5 months)
3% of incentives captured in each respective year
Calculated as a percentage of realized benefits in each respective year administered by C&W
Project Management Fees are customized to client needs. C&W’s hourly PM rates are $165-$185. However, contract proposals are typically structured as a lump sum based on scope of services. For a typical project of this scale and complexity, we expect the commitment to be $150K - $200K
3rd party service provider sourcing, management of planning, design, and construction process
Proposal for Real Estate Services GOTION 29
Made with FlippingBook Annual report maker