SPECIAL ADVERTISING SECTION: PROJECT FAST-TRACKING

n a world of Blackberries, the Internet, and e-mail, the speed of business has vastly changed over the past decade. This change is seen not only in the way in which people communicate, but also in the way in which business decisions are made.

Michelle Comerford, Senior Location Consultant,
Austin Consulting

      Companies today are pressured to deliver new products to market much quicker and more efficiently, which in turn shortens corporate location decision making and construction timelines. Companies looking to locate new plants and warehouses must consider the ability of a community to meet a fast-track timeline. As the speed of business continues to accelerate, communities who are competitive in the site selection process for new investment will be those who create innovative ways to eliminate unnecessary bureaucracy to assist in project fast-tracking.

      In location decisions, companies are looking for communities that offer a “business friendly” environment which, among other things, allows businesses to locate and/or expand in the community quickly and efficiently. Business friendly communities offer rapid response from government agencies on requests, streamlined and accelerated permitting and approvals process, and the elimination of any red tape that could otherwise prevent a project from moving ahead quickly.

      By definition, project “fast-tracking” is an attempt to shorten the duration of a project by scheduling tasks that are typically sequential to instead occur at the same time. In order to fast-track local permitting and building approvals, a community must eliminate unnecessary steps in the process.

To do so, a community should first look at its entire approval process for new and expanding investment and benchmark the timeline and number steps required to complete. By looking for places to eliminate steps or streamline activities, a community can typically shave some time off the process pretty easily.

      For example, the City of Morristown, Tennessee recently implemented a new streamlined permitting system using a software program called EnerGov. This system connects the government departments – including Engineering, Inspections, Planning, and Wastewater – through a computer system which allows the departments to share information and access applications simultaneously.

      EnerGov automates the permit submittal and approvals process by allowing developers, builders, engineers, and architects to submit applications via computer. Through the new system, Morristown is then able to conduct a comprehensive review by multiple departments more efficiently, thus offering project approvals much quicker. Morristown offers to demonstrate this system to prospective companies who are considering their community as a commitment of the community’s ability to fast-track the approval of a project.

      Another way a community can demonstrate its ability to fast-track is by becoming “certified” for new investment. “Site certification” is a familiar buzz word in the world of economic development and site selection. To most, this means sites that are “certified” to have infrastructure in place and ready to go for a new industry to develop the site without needing to extend utility lines and services which can add money and time to a project. However, “community certification” takes this concept a step further. A certified community is one that, among other things, possesses and demonstrates a business friendly environment with programs such as formalized project fast-tracking.

      The Ohio Department of Development recently implemented a program called Job Ready Sites which improves and certifies sites throughout the state for various industry development based on specific criteria for each industry type. As part of the application for consideration, a community must provide an overview of its permitting process and schedule. In order for a site to become certified, the respective community must demonstrate the ability to approve development plans and permitting using an accelerated schedule.

      Fast-track permitting can also be offered as an “incentive” to attract new investment. As a fast-track program can help save a company time and money, this is in essence an incentive for them to locate in a community.

      The city of College Station, Texas, promotes “Fast Track Permitting Process” as an incentive on its economic development Web page, and clearly lays out what its permitting approvals process entails.

A project is eligible for fast-tracking in College Station provided it meets some minimum criteria which are also clearly laid out in writing on the Web site.

      In a recent Austin Consulting project, a Fortune 500 company was considering two communities for a new 600,000 square foot distribution center. Among other important operating requirements for the facility such as labor and transportation infrastructure, the project timeline was also critical. It was imperative that the facility begin operation in first quarter 2009, which meant the complete project timeline was about 15 months long, including all site work and construction.

      In order to meet this timeline, a community which could offer a fast-track permitting approval was strongly desired. One community understood this requirement, and included “Two Week Permitting Approvals” as one of its incentive offerings in writing to the company. In this offering, the community pledged that they would work with the company to approve plans and permitting within two weeks by assigning a county engineer to work closely with the project engineer before the plans were submitted and thus guaranteeing a quick final approval that actually exceeded the company’s expectations. This community ultimately won the project and the facility is set to begin operations in January 2009.

      “Going green” and “creating sustainable communities” are also frequently discussed topics in economic development today. When considering new locations, more and more companies are attracted to communities that are “green,” meaning they promote green development and offer sustainability programs such as recycling and reducing waste. Some communities are encouraging green development by offering incentive programs to builders who incorporate green concepts such as LEED-certified buildings and other methods in which to reduce the carbon footprint of a community.

      As part of the “green” movement, many communities are implementing restrictions and regulations on industry and development. Although demonstrating commitment to being a “green community” is good for attracting new business, it is important that communities also be sure that the regulatory and approvals process is simple and concise enough so as not to dissuade new development in the community.

      San Mateo County, Calif., recently passed a Green Building Ordinance which requires all commercial and industrial development of 3,000 square feet or more to submit a checklist demonstrating that the project will receive LEED certification in order to receive approval for a building permit. In recognizing that business may be concerned that these extra requirements could hold up approval for a project, San Mateo County also commits itself in the ordinance to provide comments on the first round of building permit applications within 30 days of submittal. If a project achieves LEED Silver certification, which is a higher accreditation than the basic certification, the applicant may opt for an even faster expedited permitting process that guarantees building inspection within two working days of a request for inspection.

      As the speed of business shows no sign of slowing down, communities and governments must adapt their processes to keep up. Those who are innovative, creative, and flexible to meet the needs of business will be highly successful at attracting new and expanding investment. Those who don’t will be left in the dust.