< Previous164 JANUARY 2019 SI T E S E L E C T IO NWisconsin Econ. Dev. Corp.201 W. Washington AvenueMadison, WI 53703Mark HoganCEO855-469-4249Legislative Update• A $6.8-million mobile job center is part of a comprehensive talent attraction package (Assembly Bill 811) the Wisconsin Economic Development Corporation (WEDC) will coordinate with DWD and the Departments of Tourism and Veterans Affairs to recruit and retain workers. The program focuses on millennials, veterans, and University of Wisconsin System alumni.• Among other measures: Funding for Wisconsin Fast Forward training grants was increased by $11.5 million. Funding for expanding broadband access was increased by $35.5 million to $41.5 million. Tax measures include a new $100-per-child tax rebate, and elimination of the state levied property tax.• After the election of Democrat Tony Evers to the governorship, Republican legislators took steps in a special session in December to limit various aspects of the governor’s of ce’s authority, including a measure to delay his plans to dissolve and reconstitute the Wisconsin Economic Development Corp.Inwisconsin.com“People aren’t asking for handouts like Foxconn. They’re just asking for a loan.”— Gov.-elect Tony Evers, June 2018 in the La Crosse Tribune, on his plan to localize economic development resources and efforts.Higher Ed. R&D Expenditure: $1,503,746Number of NCRCs: 184,215 | Percent Improvement 2017-2018: 1.4%Business Tax Climate Rank Change 2018-2019: +3Lowest Electric Power Cost (cents/kWh): 7.74Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 2.02GDP21st2017 GDP(in millions of current US$)$292,270.10.00.20.40.60.81.01.21.41.61.82.020172016201520142013WisconsinPop. (2018): 5,847,633 Pop. growth 2018–2023: 0.39%Median household income: $57,408 Median age: 40Credit Rating: AA/Stable Right-to-work state: YesDid You Know?Planned for more than 20 million sq. ft., the Foxconn campus in Mount Pleasant will be large enough to hold 11 Lambeau Fields. It will become one of the largest manufacturing campuses in the world.The dairy industry contributes $43.4 billion to the Wisconsin economy.State unemployment dropped to a new all-time low of 2.8 percent in April 2018.Selected Corporate Facility Projects 2018 NEW/ INVESTMENTCOMPANY CITY COUNTY TYPE EXPANDED PRODUCT (US$ M) EMPGreen Bay Packaging Inc. Green Bay Brown MF N Paper, Printing & Packaging 475 200Amazon.com, Inc. Oak Creek Milwaukee DW N Electronics 200 1,500Promega Coporation Fitchburg Dane RD N Life Sciences 190 100WSBCP, LLC Waupun Fond du Lac MF N Food & Beverage 150 40Harris BMO Bank National Association/Michael Best and Friedrich LLP Milwaukee Milwaukee HQ N Business & Financial Services 133 Allegheny Technologies, Inc. Cudahy Milwaukee MF E Metals 95 125Great Lakes Cheese Co., Inc. Wausau Marathon MF N Food & Beverage 95 ATI Ladish LLC Cudahy Milwaukee MF E Metals 88 125UAS Laboratories LLC Wausau Marathon MF N Life Sciences 61 75Exact Sciences Corporation Madison Dane HQ N Life Sciences 60 S. C. JOHNSON & SON, INC. Racine Racine HQ E Chemicals & Plastics 50 J. W. Speaker Corporation Germantown Washington HQ E Automotive 46 100Gulfstream Aerospace Corporation Appleton Outagamie OF,MF,DW N Aerospace 40 200Oshkosh Corporation Oshkosh Winnebago HQ N Automotive 40 200Lakeside Foods, Inc. Manitowoc Manitowoc DW E Food & Beverage 40 40DT = Data Center | MF = Manufacturing | OF = Of ce | HQ = Headquarters | RD = Research & Development | DW = Distribution/Warehouse166 JANUARY 2019 SI T E S E L E C T IO NWyoming Business Council214 W. 15th St.Cheyenne, WY 82002Shawn ReeseCEO307-777-2800Legislative Update• Among around $40 million in economic development funding went toward enhancing high-speed broadband in the state and, via the Kickstart program, providing seed money for entrepreneurs to create businesses in the state. These and other components providing workforce training and supporting blockchain and virtual currency innovation are all under the 20-year strategy known as ENDOW (Economically Needed Diversity Options for Wyoming). • Under ENDOW, a total of $15 million will support Wyoming Department of Transportation’s (WYDOT) 10-year Commercial Air Service Plan (CASP), enabling WYDOT’S Aeronautics Division to contract with one airline to provide service to a major hub airport, such as Denver or Salt Lake City. “Commercial air service is a signi cant limiting factor to expanding and diversifying Wyoming’s economy,” said a state report, noting that Wyoming fares are 28 percent higher than the national average.wyomingbusiness.org“We were literally built around the pursuit of the American Dream — the idea that every single person should have the opportunity to achieve success through hard work and determination. At our core, I believe these are the values that still connect each and every one of us in Wyoming — independence, grit, and self-reliance.”— Gov.-elect Mark Gordon, Nov. 8, 20182017 GDP(in millions of current US$)$38,684.5-4-3-2-1012320172016201520142013GDP49thHigher Ed. R&D Expenditure: $125,032Number of NCRCs: 9,487 | Percent Improvement 2017-2018: 4.5%Business Tax Climate Rank Change 2018-2019: 0Lowest Electric Power Cost (cents/kWh): 6.80Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.87WyomingPop. (2018): 600,692 Pop. growth 2018–2023: 0.58%Median household income: $58,486 Median age: 38Credit Rating: AA+/Stable Right-to-work state: YesWest Virginia Development Of ce1900 Kanawha Blvd. ECharleston, WV 25305Kris HopkinsEXECUTIVE DIRECTOR304-558-2234Legislative Update• A measure legalized sports wagering, with the rst weekend of betting taking place in September and netting the state around $29,000.• A new law eliminates the state lm tax credit. • After signing two executive orders establishing a regulatory moratorium and regulatory review, Gov. Justice in April signed another one expediting the process for all permits and prioritizing permits for projects of critical economic concern.• Gov. Justice in July created a Blue Ribbon Commission to review, study and assess the current state of four-year higher education institutions in West Virginia.• An October release said that, since October 2017, when voters approved the Roads to Prosperity road and bridge improvement program, 286 projects costing $98.7 million and covering 691 miles have been completed, with another seven projects totaling more than $352 million in various stages of work.Westvirginia.gov“Tourism needs to be a cornerstone of our economy, and it’s great to see it growing again.”— Gov. Jim Justice, September 2018, on the news that West Virginia tourism spending grew by nearly 4 percent, after dropping by 14 percent over the previous five yearsGDP40th2017 GDP(in millions of current US$)$70,564.7-1.0-0.50.00.51.01.52.02.520172016201520142013Higher Ed. R&D Expenditure: $210,259Number of NCRCs: 67,458 | Percent Improvement 2017-2018: 2.4%Business Tax Climate Rank Change 2018-2019: +1Lowest Electric Power Cost (cents/kWh): 6.29Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.01West VirginiaPop. (2018): 1,895,717 Pop. growth 2018–2023: 0.15%Median household income: $43,555 Median age: 43Credit Rating: AA-/Stable Right-to-work state: Yes168 JANUARY 2019 SI T E S E L E C T IO N168 JANUARY 2019 SI T E S E L E C T IO NCeiling UnlimitedINVESTMENT PROFILE:NASHVILLE INTERNATIONAL AIRPORTA Blueprint for Airport & Regional Growthby MARK ARENDmar k .ar end@ site s ele c tion.c omAmazon’s recent selection of Nashville for its ,-job Operations Center of Excellence is only the latest contributor to the Metro’s booming economy and population growth. Conservative estimates put metro Nashville’s population at . million by . It’s about . million today. at’s where BNA Vision comes in. Launched in , BNA Vision is a comprehensive plan designed to enable Nashville International Airport (BNA) to accommodate the region’s booming population growth and meet the needs of the airport’s record-breaking passenger increases.Following is a mid-December conversation with Nashville International Airport (BNA) President and CEO Doug Kruelen, who explains the airport’s role in the region’s prosperity today and how it will keep pace with its growth in the years to come. How does BNA leadership de ne its role in metro-area economic development?Doug Kruelen: Nashville International Airport (BNA) is a major economic engine for the greater Nashville economy. is region has seen substantial population and economic growth, and the airport both fosters and accommodates those trends. We’re a signi cant employer, of course, but that’s really just a portion of the impact. From businesses within the airport footprint, to the many subsidiary enterprises that rise up and bene t from airport activities, BNA is critical to our economic landscape. e hospitality industry is a key part of our economy. Music City is a top destination for tourists and convention travelers, many of whom y in and out of BNA. Moreover, business travelers rely heavily on our airport to get them to the places they need to go in the least amount of time. An airport is only as strong as the nonstop service it can provide. We work hard to make sure we provide nonstop service to the destinations that our passengers need and want. Typically, the availability of air service is one of the top questions asked by businesses looking to relocate or expand, and we take that responsibility seriously. Nashville is an emerging corporate center and, combined with the hospitality scene, having a great airport is key to keeping it that way. S I T E S E L E C T I O N JANUARY 2019 169 S I T E S E L E C T I O N This Investment Profilehas been prepared underthe auspices of Nashville International Airport.For more information,visit BNAVision.com.To what extent did the Nashville business community weigh in on the BNA Vision plan formation?DK: e entire BNA Vision plan was developed with the needs of our passengers in mind, both business and leisure. We frequently reach out to the business community to understand their travel needs, be it new routes, parking packages or terminal-based facilities. Passenger tra c at BNA is growing at an unprecedented rate, and it was critical that dramatic changes were made now to prepare for what was on the horizon. Nashville is accustomed to an easy and e cient airport — one that is warm and welcoming, like Nashville itself. It is something we promote and in which we take much pride. We don’t want to lose that, so our expansion — BNA Vision — is very consciously designed to include those characteristics that have traditionally made our airport enjoyed by our passengers and embraced by our community. BNA Vision has been well received by our business community, and excitement is continually growing as we make more and more progress.Airports frequently are visitors’ and corporate site selectors’ rst (and last) impression of the city. What will they experience when BNA Vision is fully implemented that will differentiate Nashville from comparably sized markets?DK: Like Nashville itself, BNA has long been known for its accessibility and friendliness, and for the music, art and food o erings that de ne our culture. Our challenge is to keep BNA distinctive in the face of rapid growth. Ultimately, our mission is to be known as the premier airport for all travelers. With BNA Vision, we’re taking all of the best things about our airport and adding even more with bigger and better facilities, more air service to more destinations and more amenities.Our revamped concessions program is a prime example of how we’re growing and changing. Working with our partners at Fraport USA, our new concessions program will roll out in and will embody the best of Nashville with an emphasis on local avors and fare, including street pricing, that will fully embrace our renowned culinary scene. e look of the airport’s interior will be updated and upgraded to re ect Nashville in a visual way, drawing inspiration from the authentic craftsmanship of musical instruments and the region’s scenic beauty.Of course, we’re Music City, and BNA will continue to represent that brand in a way that no one else can match. We’ll continue to have live music and visual arts installations in several locations throughout the terminal. From the moment you get o the plane, you’ll know you’re in Nashville, and you’ll be glad you’re here. And when travelers think about the airports they y into, we want them to think of BNA as the best. Entertaining, welcoming and easy. What are some examples of how BNA will facilitate regional economic development when expansion projects are complete?DK: BNA is and has been one of the fastest growing airports in North America. e number of passengers in our terminal has grown by more than million people each year for the past ve years, and all projections indicate continued growth as far as the eye can see. is year, we had roughly million passengers ying in and out of BNA, an extraordinary increase of about percent over last year. By the time BNA Vision is complete in , we anticipate more than million passengers visiting our airport. at number continues to soar as we project long term. What we’re doing with BNA Vision is building capacity to meet those growing needs, especially on our land side. We think an increase in international service is highly likely in the years to come as Nashville receives more and more world-wide interest. is will come from both the leisure and business markets. With that in mind, BNA Vision includes a state-of-the art International Arrivals Facility to accommodate that speci c growth. Without a doubt, a major increase in international ights will signi cantly contribute to the region’s economic pro le. More air service means even more visitors to Nashville for business and leisure travel, which means more money spent in our hotels, restaurants and attractions. An e cient airport is the cornerstone of the continued growth and expansion of Nashville. As we say at BNA, “Buckle up. We’re taking o .” Doug KruelenHow Amazon’s Nashville pick ended a lot of anticipation in Tennessee.Good things come to those who wait. In Tennessee, a decade of preparation came to an end on Nov. 13 when Amazon announced it had selected Nashville for a $230-million, 5,000-job Operations Center of Excellence.“This was 10 years in the making,” says Bob Rolfe, commissioner of the Tennessee Department of Economic and Community Development. “This did not happen overnight. Nashville has been working up to this for years.”The much-ballyhooed site selection process itself took 14 months, but Tennessee sealed the deal when it offered Seattle-based Amazon up to $102 million in performance-based incentives. The package is conditional upon Amazon creating 5,000 jobs with an average annual wage of over $150,000. This includes a cash grant from the state of $65 million based on the company creating those 5,000 jobs over the next seven years — or $13,000 per job. It also includes a cash grant from the city of Nashville of up to $15 million based on $500 for each job created over the next seven years; and a job tax credit to offset franchise and excise taxes from the state of $21.7 million, based on $4,500 per new job over the next seven years.Amazon plans to build its operations center in Nashville Yards, a 15-by RON S TARNERr on. s t ar ner @ site s ele c tion.c omST A TE SPO TLIGHTTennessee170 JANUARY 2019 SI T E S E L E C T IO NNashville photo courtesy of Tennessee Department of Economic & Community Development172 JANUARY 2019 SI T E S E L E C T IO NWas it the scal tness of Tennessee and its capital that landed Amazon’s Project Gardendale — the code name for its 5,000-job Operations Center of Excellence and Eastern U.S. hub for Amazon’s Retail Operations division — in Nashville? Positive expansions and relocations to Nashville on the part of several major corporations (Lyft, UBS, Bridgestone and Philips Healthcare among others)? The region’s entrepreneurial and optimistic culture? State incentives worth about $102 million? All of the above? Whatever the combination of state and local factors, Nashville got the nod. Along with the City of Nashville, the State of Tennessee also worked with key partners, including the Tennessee Valley Authority and Nashville Area Chamber of Commerce, to recruit the project to the state. Among the nal exchanges between the Tennessee team and Amazon’s was a November 2 letter from Nashville Mayor David Briley to Amazon’s Holly Sullivan, a key player in the site selection process. Among other points, it summarizes the metro’s incentive proposal and outlines how the Job Grant component would work if agreed to by the Metropolitan Council and the Industrial Development Board. The letter also reminds Sullivan’s team of some key area attributes meant to boost con dence in siting the Operations Center in Music City U.S.A.; hot chicken, a Nashville staple, was not among them.Safety in Numbers“As we hope you have seen,” wrote Briley, “Nashville is a low-tax city that has a low cost and high quality of living. The cost of living is below the national average, the state of Tennessee does not have an income tax, and Nashville has the lowest property tax rate in the history of Metro Government. Tennessee has the lowest debt per capita of any state in the country, and the pension funds of the city and the state are fully funded. The strength of our economy and the prudent nancial stewardship of the government here should give you con dence that Nashville is a sound place for you to invest.”That’s not a small point. Site Selection regularly emphasizes the importance of scal soundness and predictability to capital investors. Not all areas can compete effectively in that arena.“It goes without saying that this investment will have a signi cant impact on the community in which it locates,” added the mayor. “Buildings, roads, parks and greenways will be built. Jobs will be created. But most importantly, the lives of human beings will be transformed. We believe that Nashville is well positioned to work with Amazon to make that transformation a universally positive one. Nashville is built on a solid foundation with a hospitable, entrepreneurial and optimistic culture. We want to grow with you into the future.” No Mention of HOT CHICKENacre ( -hectare) mixed-use development in downtown Nashville. e -million-sq.-ft. ( ,-q.-m.) o ce complex will house the tech and management functions of Amazon’s Retail Operations division, including customer ful llment, customer service, transportation and supply chain.“ is is a game changer for Tennessee,” said Gov. Bill Haslam. “ e ripple e ect of Amazon’s decision to invest $ million in our state and create , high-paying jobs in downtown Nashville will be felt for years to come. Amazon has spent the past year searching the nation for the best possible locations to expand and it chose Tennessee because of our business-friendly policies, low taxes and skilled workforce.”In an exclusive interview with Site Selection, Commissioner Rolfe said Tennessee thought it was competing for Amazon’s HQ project when the company informed the state in September that it had changed strategy and was considering Nashville for a new logistics center of excellence.“We were ecstatic when we learned this news,” says Rolfe. “ e original RFP of , jobs would have required Nashville to just about build a second city, but this new project was a perfect t for us. We were very excited.”‘The Kind of Jobs We All Dream About’Rolfe calls Amazon “the most outstanding economic development accomplishment in the tenure of Gov. Haslam. is is the largest jobs announcement in state history. e payroll alone will be $ million a year, based on , jobs paying [an average of] $ , a year.”Rolfe adds that “these are the HOT CHICKENby MARK ARENDNext >