REAL ESTATE PPP AND ECONOMIC DEVELOPMENT

1. REAL ESTATE PPP AND ECONOMIC DEVELOPMENT “LET’S MAKE A DEAL”

2. PPP AND ECONOMIC DEVELOPMENT • Formula for success • Create mutual opportunity for both public/private sector • Many times more “art than science” despite our best efforts • Human Factor • Political Dimension • Solve problems in novel way leads to more success and economic growth

3. THE ECONOMIC DEVELOPMENT CONUNDRUM IN THE UNITED STATES • Motivated by job creation goal • Competition is fierce • Pure Governmental units have limits on ability to engage private sector • ED Goal is to not only get jobs in the door—but good paying jobs

4. THE REAL ESTATE DEVELOPMENT CONUNDRUM IN THE UNITED STATES • Motivated by Profit • Highly competitive • Provincial attitudes • Barriers to entry • Building trust in an environment of high hopes and fear of failure • SPEED and EFFICIENCY

5. SOLUTION—PPP DRIVEN ECONOMIC DEVELOPMENT • PPP real estate Project • “What it takes” • Concept to Completion—VISION • Collaboration • Coordination • Communication

6. PPP CASE STUDY KILGORE, TEXAS BUILDING AN ECONOMIC DEVELOPMENT BASE—GROUND UP

7. SOLUTION—NEW GROWTH FOR KILGORE, TEXAS • Kilgore Economic Development Corporation (KEDC) always looking to diversify/expand economic base • Historically an Oil industry dominated economy • Located between Shreveport, Louisiana and Dallas, Texas on I-20 • Create additional base of jobs • Common goal with SP • Common “client” with SP • Objectives clear

8. SOLUTION—RETAIN AND GROW CORPORATE CLIENTS • Bring together resources of both KEDC and SP • Communication and Problem Solving Approach • Great Working relationship • KEDC provided 9.2 acre site to SP for $1 • KEDC provided grant $ and tax abatement to Alcoa Closure Systems International (CSI) • SP invested $8.5 Million USD • Provide 70 new jobs in Kilgore, Texas • Provide a new facility for Alcoa CSI

9. RESULTS—PRODUCING STRONG ECONOMIC GROWTH