Yellowstone County Industrial Park Feasibility...

Yellowstone County

Industrial Park Feasibility Analysis

BSED Strategic Priorities

Strengthen Business Expansion and Recruitment

Opportunities

Initiate and Support Strategic Community Development

and Redevelopment Projects

Workforce Development

Strategically Grow our Business Finance Program

Target Industry Analysis

DCI/RDA Global

Industry Cluster Analysis

Understand industries we recruit

Benefit of Industry Clusters

Target Industry Analysis

Data Centers & IT Services

Manufacturing Industries

Warehousing, Transportation & Logistics

Upstream & Midstream Oil & Gas

Healthcare Services & Supply Chain

Regional HQ & Back-Office Operations

Yellowstone County’s Six Target Industries

Scope of Work

Virtual Tour Summary (Appendix 1)

Market Analysis

Demand for Industrial Lands

Certified/shovel ready sites = MOST IMPORTANT

18’-22’ Sidewalls, 25’ ceiling, 10K-25K (up to 40K) sq.ft.

Truck access primary; rail secondary but needed

200,000 sq.ft. absorbed annually

BBER Employment ÷ Employees per Acre (Univ of Oregon)

2030 = 305 to 460 acres

2040 = 400 to 600 acres

Market Analysis

Market Analysis

Supply of Industrial Lands

Inadequate access for large trucks (110’)

Insufficient utilities and communications infrastructure

Limited, if any, access to rail siding facilities

Floor space, ceiling height, and docking bays = too small

No certified ready sites

Vacant lands disjointed

Market Analysis

Economic Impacts

NPCC (Bismarck)

Port of Montana (Butte)

TRIP (Portland)

Acres Jobs Created

Employees per Acre

Impacts/Earnings

NPCC 243 250

(25 proj) 1.13 $296 M

Port of MT

800 500

(238 proj) 0.93 --

TRIP 366 7,916 21.62 $452 M

Market Analysis

Industry Expectations

Certified ready, tenant finished buildings

300 acre park – truck AND rail AND transloader

MFG, warehouse, office = Logistics

Trainable workforce

Sites needed NOW

3 businesses relocated because of missed opportunities

Site Options & Operational Plans

Alternative Screening

County-wide

100-500 acres

Transportation & utility infrastructure

Land use & planning compatibility

Stakeholder input (>30 interviews)

Developers and site selectors will have unique criteria


Infrastructure Evaluation

Utilities (public and private)

Transportation (roads & rail)

Infrastructure Deficiency – detailed analyses required

Environmental considerations

Planning, zoning and assemblage


Key Findings

1. Rail served locations are limited

2. Stakeholders generally support identified locations

3. Entitlement process could prolong development

4. All sites have infrastructure challenges


Report identifies 3 potential sites

Spurling Siding (Laurel, 150 Acres)

BN Industrial Subdivision (Billings, 230 Acres)

Lockwood Area (near I-90/I-94 interchange, 490 Acres)

Operational Ownership & Development

Alternatives

Public Ownership / Management Pros Cons

Control vision/land Compete with private sector

Grants Greatest risk for BSED

Private Ownership / Management Pros Cons

Private capital/willingness “Blinders” to vision for community

Least risk for BSED No access to grants

Operational Ownership & Development

Alternatives

Public-Private Ownership / Management Pros Cons

Guide vision/long-term Misaligned goals

Grants with private capital

Risk spread equally

Examples of Public-Private Projects Billings Industrial Revitalization District

Shiloh Crossing, Cabela’s, TransTech and GE

Implementation Strategy

Overall Feasibility

Sites have unique challenges

Demand is steady and growing for industrial space

Constrained supply

Project is feasible = public funding likely needed


Why the need for a park?

Existing BN Subdivision has limitations

Useful as intermediary

Parcel by parcel approach IS NOT CURRENTLY WORKING

Incentives needed to attract businesses

Competing on regional and national level


Janet Ady reported that: “The competition in business

recruitment is fierce and increasing in intensity

everyday….[r]eadiness will be the basis on which

communities and regions compete.”

When sites are not readily available, economic development

efforts are stunted.


Spurling Siding West Laurel I-90 Interchange

Mid-range timeline

Property development interest is low

BN Industrial Subdivision Fastest timeline

Infill development

Lockwood Area Mid-Long range timeline

Efforts already underway

Private investment occurring/Billings by-pass

Recommendations

1. Capture and synergize concentrated economic activity

Competitive advantage from clustering

Explore opportunities for TEDD or TIFD

Recommendations

2. Initiate TEDD in Lockwood area

Supports secondary value-added industry

Work w/ property owners

County Commission approval

Address infrastructure deficiency

Recommendations

3. Outline development roles and agreements

Explore public-private partnerships

Work with property owners and developers

Begin entitlement process

Recommendations

4. Determine best redevelopment scenario for BN

Industrial Subdivision

Coordinate with City/County Planning and Public Works

Understand existing property owner priorities

Recommendations

5. Pursue funding opportunities

Rail served parks are costly

Pursue grants (TIGER, EDA, State of MT, BSED)

Recommendations

6. Develop a marketing plan

BSED w/ property owners, developers & rail companies

Target anchor tenants

Continue refining site concepts

Begin dialogue with transloaders and operators

Questions?

[email protected] [email protected]

mailto:[email protected]

Yellowstone County Industrial Park Feasibility...

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