SEC US-41 and Kracker Avenue Tampa, Florida www.schafer-dev.com
TABLE OF CONTENTS Project Overview Site Plans Aerial/Site Plan Overlay Aerial Photograph Area Maps Competitive Characteristics Economic Development Data Demographics News Article Contact Information
PROJECT OVERVIEW SITE: US 41 Industrial Park LOCATION: SEC US-41 and Kracker Road Tampa, Florida ACRES: 113 Acres SQUARE FEET: 1,400,000 Square Feet 1,700,000 Square Feet ZONING: Planned Development Approved for Industrial, Distribution, Manufacturing Zoning Usage and 50,000+/- Sq. Ft. of Commercial Uses, with a Flex Option. FUTURE LAND USE: Suburban Mixed Use-6 with a proposed 1,750,000 +/- Sq. Ft. of Manufacturing Zoning Usage and 50,000 +/- Sq. Ft. of Commercial Uses, with a Flex Option. UTILITIES: Water and Sewer: Electric: Telephone/Cable: Natural Gas: Hillsborough County Tampa Electric AT&T, Verizon and DPI Teleconnect People Gas System A Division of Tampa Electric ACCESS: There are 2 (Two) point of access into and out of the site at the median cuts on US41. RAIL: CSX Railroad is at the site with spur available at east and south sides. REPORTS: Phase I, Topographical survey, Wetland delineation and Seven SPT borings completed. TRAFFIC: Traffic impact study complete and concurrency/impact fees/developer s Agreement are in discussion with the county. Access points are achievable and desirable by FDOT.
CONCEPTUAL SITE PLAN - A 14,350 S.F. 205 340 69,700 S.F. 520 205 106,000 S.F. 630 US-41 TOTAL BUILDING AREA 1,696,600 S.F. 4,200 L.F. OF ROADWAY 2225 1,400,000 S.F. 11,550 S.F. 125 380 47,500 S.F. 125 380 47,500 S.F.
CONCEPTUAL SITE PLAN - B TOTAL BUILDING AREA 1,254,000 S.F. 4,200 L.F. OF ROADWAY
CONCEPTUAL SITE PLAN - C
AERIAL/SITE PLAN OVERLAY
AERIAL
AREA MAPS SITE SITE
COMPETITIVE CHARACTERISTICS New Market Tax Credit Part of the Community Renewal Tax Relief Act of 2000, the New Markets Tax Credit Program spurs approximately $15 billion in investment capital for low-income communities. Based on confirmed census tract data, the US 41 Commerce Park qualifies for New Market Tax Credits. This qualification is based on area wide unemployment and poverty rates, and serves as an incentive for the development of employment centers. This incentive translates through tax credit allotments to qualified lending institutions Community Development Entities (CDE) into below market loans available to developers currently quoted at approximately 2.5%, interest only, for a 7 year term. These funds are available for acquisition and development of land, infrastructure and buildings which create jobs. The US 41 Commerce Park is situated in a census tract which qualifies for New Market Tax Credit program. Applications have been made, and staged approvals have been given by a qualified lending institution, with a loan allocation estimated of $15,000,000 for the development of the US 41 Commerce Park at a rate of approximately 2.5% as an interest only, seven year term. This loan must remain outstanding for its full term in support of fulfilling the community based objectives. During the application and servicing process, both the Community Development Entity, arm of the bank as well as the Credit Department, are active in the relationship. These NMTC Financing benefits allow a competitive, below market lease rate, and a potential reduction in equity required, while achieving the same or greater return on investment. The NMTC offers both a direct financial benefit as well as adding a community minded and socially conscious identity to the development organization. The US 41 Commerce Park has received strong support from two lending institutions, a strong indication of the value. The project is forecasted to generate 4,400 direct and indirect jobs though the development and stabilization. Brownfields-BSRA (Brownfields Site Rehabilitation Agreement) The Brownfields Redevelopment Act empowers stakeholders in economic development to prevent, asses and reuse sites complicated by actual or perceived environmental conditions. The US 41 Commerce Park was historically used as a commercial fish farm and as a result has a portion designated as the Tampa Livestock Distribution Dump Brownfields Area. As such, a BSRA is underway with the Hillsborough County EPC, and upon final approval will provide for appropriate clean up actions and associated financial benefits to the developer. These benefits include state income tax credits, cleanup costs tax credits, and job creation bonus tax refunds in the amount of $2,500 per job. Additionally, regulatory benefits include cleanup liability protection and EPA comfort letters for lenders and users.
COMPETITIVE CHARACTERISTICS Rail Served Industrial Park The US 41 Commerce Park s eastern boundary consists of 3,000 liner feet of CSX Main line rail tract, facilitating various spur design options for a Rail Served Industrial Park. CSX is the largest railroad in the east and one of the nation's leading hauler. It owns and maintains over 20,000 miles of track in the east, and transports a wide variety of other products. Using an extensive network of dedicated terminals and purchasing rail transportation services from CSXT and other railroads, CSXI offers the competitive rail and trucking services that provides reliable and cost-effective shipment. CSX is in full support of the rail served US 41 Commerce Park and plays a role in the long term inter modal vision, and promotion of rail as the cost effective component to the logistics and transportation industry. Port Proximity International Trade This site is also conveniently located within a quarter mile of the Port of Tampa s Red Wing Facility and six miles south of the Port of Tampa s Main Terminal. Tampa handles approximately 50 millions tons of cargo per year encompassing container, bulk, break bulk, ro-ro, and project cargoes. This location provides the most direct route to Mexico, Latin America and the Caribbean and the region's rapidly expanding load center hubs providing worldwide services. With a main shipping channel depth of 43 feet, Tampa is also the closest full service U.S. port to the Panama Canal.
ECONOMIC DEVELOPMENT DATA Florida Florida's economic growth is one of the success drivers for businesses that choose to locate in Florida. With a growing consumer market, an expanding talent pool, a supportive government and a strong asset base, Florida offers companies the right conditions for longterm success. The state s vitality and economic growth are evident in its strong business and economic indicators. If Florida was its own country, it would be the 19th largest economy in the world. It is not only one of the largest states in the U.S., but also one of the fastest growing, in terms of population, economic growth, personal income, employment and other statewide indicators. Economic facts about Florida Florida s population grows by about a third of a million new residents each year. Florida's economic growth has businesses hiring. The state is adding about a third of a million jobs a year the most in the nation in sheer numbers, and also at one of the fastest growth rates. Florida s booming economy supports a higher standard of living. The state's total personal income lands it at the #1 spot in the Southeast, and its 2006 per capital income of $35,798 places it at #2 in the Southeast and #20 in the nation. Florida's economy encourages the growth of high tech companies. Florida led the Southeast and ranked 4th nationwide in high tech employment in 2006. Some of the other industries that have recorded significant economic growth in the state include professional & business services, trade, transportation, construction, leisure and hospitality, education and health services, and others. Florida leads in international trade and investment. The total value of merchandise trade flowing in and out of the U.S. via Florida has nearly doubled in the last decade, reaching $109.75 billion in 2006. Similarly, total foreign direct investment (FDI) in Florida reached $35.3 billion, making Florida one of the top states for FDI and FDI-related employment and further boosting the state's economic growth. Favorable Business Climate Florida is consistently ranked as one of the top pro-business states, and for a number of good reasons. It has a favorable business environment, with a low corporate income tax rate and no state personal income tax. In addition, Florida offers competitive cost-of-doing-business, especially when compared to other high tech states. The state is also one of only a few rightto-work states in the U.S.
ECONOMIC DEVELOPMENT DATA Proactive, Pro-business Government Florida s government and economic development leaders are working together to ensure the state s economic growth and competitiveness by implementing needed legislative, fiscal and marketplace initiatives. From tort reform targeting rising insurance and worker compensation rates, to building a strong culture of preparedness, and providing targeted industry incentives, Florida offers businesses the right conditions for success and growth. Competitive Edge in Innovation Florida is one of the emerging forces in the Innovation Economy due to the state's sustained efforts to create the right conditions for creative, knowledge-based businesses. The state is strategic about its economic development activities, which include funding research & development, attracting venture capital, building state-of-the-art infrastructure, fostering innovative high tech firms, and preparing the qualified workforce to work in them. Tampa The Tampa Bay Region is home to two of the state's most populous cities: Tampa and St. Petersburg. In the last decade, the region has become a hotspot for high-tech company growth. It anchors one end of the Florida High Tech Corridor, which houses more than 50% of Florida s high-tech companies. Transportation is a key factor in Tampa/Hillsborough's continuing economic success and in the region's ability to attract new businesses. Road transportation in the region is excellent, with a network of upgraded Interstates (I-75, I-275 and I-4) and major roadways. The Hillsborough County Metropolitan Planning Organization notes nearly $3 billion in funded projects for the next 20 years. The Port of Tampa is the largest seaport in Florida, handling as much tonnage as Florida's 13 other deepwater seaports combined. Container equipment at the Port makes overseas or Gulf of Mexico merchandise shipping convenient. CSX rail lines run directly to the Port from throughout the region. Tampa International Airport (TIA) is located within the City of Tampa. TIA is easily accessed by an excellent road network. Business travelers have repeatedly named TIA a top business airport in survey after survey. In addition to TIA, general aviation and private airports serve the region, and several major airports are located within a 90-minute drive from Tampa. Tampa, with its strategically located port and excellent airport, serves as an ideal platform for international distribution, especially to the Americas. The Tampa/Hillsborough area has a skilled workforce in the trade and transport industries. Transport rates are highly competitive, and the market offers scores of transport and delivery companies.
ECONOMIC DEVELOPMENT DATA Tampa/Hillsborough County offers relocating or expanding manufacturers a host of ways to reign in their business costs. Florida has a low corporate income tax of 5.5 percent for C- corporations. There is no corporate income tax on limited partnerships or S-corporations. There is also no corporate franchise tax, no property tax on business inventories, no property tax on goods-in-transit for up to 180 days, and no sales and use tax on goods manufactured in Florida for export outside the state. There is no sales and use tax on co-generation of electricity or boiler fuels. There is also no tax on electricity used in manufacturing processes, among other tax advantages for manufacturers. Additionally, Florida has no personal income tax. The state offers a variety of fiscal inducements for expanding or relocating companies. One of the most popular is the Economic Development Transportation Fund, known as the "Road Fund," designed to ease transportation woes that discourage a company's location or expansion decision. Infrastructure Tampa Bay offers the right infrastructure needed for firms to quickly and effectively move products, services and data. With three seaports and airports, it is a major entry point for domestic and international shipping. In addition, the region is continuously updating its interstate and highway infrastructure, spending more than $1.8 billion in new construction and improvements (current, proposed, and recently completed). Industry Home to multiple universities and colleges with prime research facilities, Tampa Bay s industry clusters range from life sciences and healthcare to homeland security, avionics and marine electronics. Tampa Bay has also been called "Wall Street South" for the size and scope of its financial services industry. Workforce Comprised of about 2 million professionals and equal to 22% of the state s total labor force, the Tampa region is rich in talent. University of South Florida (USF) and local colleges collaborate with companies in the development of products and services and thus are able to graduate students that are equipped with the most practical, industry-relevant skills and knowledge. Thus, local employers enjoy a consistent supply of well-educated and ambitious professionals.
ECONOMIC DEVELOPMENT DATA Quality of Life Tampa Bay offers a competitive cost of living and some of the best healthcare facilities in the United States, including three hospitals ranked as "America's Best Hospitals" by U.S. News and World Report. Its urban appeal is clear: it is one of the few markets in America with two major metropolitan newspapers and it boasts the largest performing arts center in the southeast and the largest science museum in the south. Tampa Bay Region: Economic Indicators Population, 2007 Labor Force, 2007 Total Employment, 2007 Unemployment Rate, 2007 Personal Income, 2006 ($billions) Per Capita Personal Income, 2006 Number of Foreign-Affiliated Companies Cost of Living Index, 2007 (U.S. average=100) Median Home Price, 2007 4,126,045 1,999,265 1,914,921 4.2% $148.6 $36,012 307 102.4 $221,233
Hillsborough County Visit eflorida.com to learn more. County Seat: Tampa Nearest MSA: Tampa-St. Petersburg-Clea Largest Cities: 1 Tampa 2 Plant City 3 Temple Terrace Miles* To: Tallahassee... 204 Orlando... 80 Tampa... 0 Jacksonville... 174 Miami... 205 Atlanta... 418 Chicago... 1003 Dallas... 918 New York... 1006 *Miles are calculated from county seat. Time Zone: Eastern Local Area Code(s): 813 Hillsborough 1980: 646,939 1990: 834,054 2007: 1,174,727 2015(p): 1,382,660 2030(p): 1,680,553 (p) Denotes Projected Population Florida 9,746,961 12,938,071 18,251,243 21,767,500 26,419,200 Average Temperature High Low January: 70 50 July: 90 75 Florida Mean Annual Precipitation... 53 Average Annual Rain Days... 107 (2006) In-Migration 69,684 Out-Migration 58,950 Net-Migration 10,734 *Estimates based on IRS Statistics of Income data
(2007) Labor Force 610,845 Labor Force % of County Population 52.0 Number in County Unemployed 24,206 Unemployment Rate 4.0% Major Private Sector Employers Hillsborough County School District Business Line: Educational Services Number of Employees... 25,487 N/D = No Data Hillsborough Florida (2006) Average Annual Employment 586,639 7,952,023 Natural Resources & Mining 2.1% 1.2% Construction 7.4% 8.0% Manufacturing 5.5% 5.1% Trade, Transportation and Utilities 18.1% 20.8% Information 3.6% 2.1% Financial Activities 10.1% 6.9% Professional & Business Services 23.0% 17.0% Education & Health Services 12.0% 18.4% Leisure & Hospitality 10.2% 11.4% Other Services 3.0% 3.1% Public administration 4.6% 5.8% Unclassified 0.1% 0.1% Average Annual Wage (2006) All Industries $40,397 Construction $42,915 Education & Health Services $43,234 Financial Activities $57,502 Information $64,464 Leisure & Hospitality $20,574 Manufacturing $42,639 Natural Resources & Mining $18,603 Other Services $27,462 Professional & Business Services $39,598 Public administration $48,706 Trade, Transportation and Utilities $36,927 Unclassified $34,339 Verizon Communications Business Line: Information Number of Employees... 14,000 University of South Florida Business Line: Educational Services Number of Employees... 11,607 Tampa International Airport Business Line: Transportation, Warehousing Number of Employees... 7,760 St Joseph's Hospital Business Line: Healthcare & Social Assistance Number of Employees... 5,242 JPMorgan Chase Business Line: Finance & Insurance Number of Employees... 5,237 Publix Super Markets Business Line: Food Services Number of Employees... 4,630 Bank of America Business Line: Finance & Insurance Number of Employees... 3,754 Outback Steakhouse Business Line: Food Services Number of Employees... 3,625 TECO Energy Business Line: Utilities Number of Employees... 3,211 Hillsborough Florida 2004 $31,994 $32,618 2005 $33,677 $34,798 2006 $35,079 $36,720 Federal Interstates Federal Highways State Highways Railroads I-4, I-75, I-275 US-41, US-301 SR-60 Amtrak, CSX Railroad Nearest Airport with Scheduled Commerical Airline Service: Tampa International Airport # Runways 3 Longest Paved Runway(ft.) 11000 General Aviation Airports Peter O. Knight, Plant City, Vandenberg Local Deep Water Port Tampa Port Authority Miles to Closest Port 3
COUNTY Countywide Ad Valorem Millage Rates: Government 6.6153 Schools 7.8230 Special 1.1420 Total 15.5803 STATE Corporate Income Tax 5.5% Personal Income Tax 0.0% Retail Sales Tax 6.0% Ad Valorem Tax Exemption: No Retail Sales Tax (Local Option) 1.00 Federal Enterprise Zone Yes State Enterprise Zone EZ-2901, EZ-2902 Electric Companies: TECO Energy Public Schools Teachers Enrollments Natural Gas Companies: TECO People's Gas Telephone Companies: Verizon Water & Sewer Companies: City of Tampa Tampa Bay Water District Southwest Florida Water Management District Exisiting Industrial Zoned Land Yes Number of Acres 25,579 Largest Available Contiguous Parcel 0 Industrial Parks Yes Number of Acres 0 Largest Available Contiguous Parcel 79 Foreign Trade Zones Yes Zone Number(s) 79 Elementary: 146 5,149 94,444 Secondary: 114 3,448 99,036 Totals: 260 8,597 193,480 Private Schools Available: Yes POST SECONDARY EDUCATION SERVING THE COUNTY: Colleges/Universities: University of South Florida Eckerd College University of Tampa Florida Metropolitan University Stetson Law School Junior/Community Colleges: Hillsborough Community College Southwest Florida College- Tampa Campus Vocational/Technical Schools: Brewster Technical Center ITT Technical Institute Erwin Technical Center Learey Technical Center International Academy of Design Other Schools: University of Sarasota - Tampa Campus University of Phoenix- Tampa Campus Local Radio Stations: WQYK- FM 99.5 WFLZ-FM 93.3 WFLA-AM 970 WBTP- FM 95.7 WMTX- FM 100.7 Local Television Stations: WXTB- FM 97.9 WDAE- AM 620 WTBT- FM 103.5 Number of Banks: 23 Number of Savings and Loans: 6 Number of Credit Unions: 19
WEDU 3 WFLA 8 WFTS 28 WPSP 10 WTOG 44 WXPX 66 WTTA 38 Locally Printed Newspapers: St. Petersburg Times Tampa Bay Business Journal Free Press Weekly Planet Tampa Tribune La Gaceta Cost of Living Price Level Index, (2006) Florida State Average = 100 Sample Total 95.55 Food 100.56 Housing 89.07 Medical Care 96.59 Personal Goods and Services 101.01 Transportation 103.94 Medical Services: Brandon Regional Hospital H. Lee Moffitt Cancer Center & Research Institute James A. Haley Veterans Hospital St. Josephs Hospital Tampa General Hospital Town & Country Hospital University Hospital- Medical Center Recreational Opportunities: 200+ Parks and 35+ Golf Courses Busch Gardens Carnival, Holland America, Royal Caribbean and Celebrity Cruise Ships Lowry Park Zoo Museum of Science and Industry (MOSI) Professional Sports: NFL, MLB, NHL Tampa Bay Performing Arts Center Historical Points Of Interest: Florida Center for Contemporary Art Florida International Museum Henry B. Plant Museum at University of Tampa Tampa Bay History Center Veterans Memorial Museum & Park Ybor City State Museum Cultural Events/Festivals: Air Fest Fiesta Day Florida State Fair Florida Strawberry Festival Gasparilla Pirate Invasion Guavaween at Ybor City Outback Bowl and Parade Enterprise Florida, Inc. 800 North Magnolia Avenue, Suite 1100 Orlando, Florida 32803 Phone 407-956-5600 Fax(407)956-5599 Visit us on the World Wide Web: http://www.eflorida.com
CITY HIGHLIGHTS, MARCH 2008 TAMPA CITY HIGHLIGHTS Brian P. Rettig, Patrick Duffy, Cheri O Neil, David Diaz and Alan Kaye Tampa Industrial Market The entire Tampa Bay trade area, consisting of Hillsborough (Tampa), Pasco, Manatee (Bradenton), Pinellas (St. Petersburg/Clearwater), Polk (Lakeland) and Sarasota counties had an industrial market vacancy rate of 4.88 percent. During the second quarter, 925,160 square feet of industrial space was absorbed. The statistics for the industrial submarkets of the counties relative to the Tampa Bay Area are as follows: Continuing demand for industrial space to service the area s growing population, coupled with the limited land available for development and relatively limited delivery of supply of new completed improved product, has and is expected to continue putting upward pressure on rental rates. The growth in rental rates is justifying the delivery of additional new product to the marketplace. Further, as traditional corporate industrial space users come up for renewal in third generation space with lower clear heights and substandard sprinkler systems, in lieu of paying an increased rental in such space, we believe these users will elect to pay slightly more per square foot for the new product which has (i) more cubic storage space due to increased clear heights, and (ii) ESFR fire sprinkler systems. So, the net cost to the user in new construction can actually come at a minimal increase due to a greater number of pallet positions and lower insurance cost for a similar footprint. The growth in Tampa Bay s industrial property market is also limited by natural barriers such as the Gulf of Mexico and Tampa Bay. More specifically, the lack of land in Pinellas and Western Hillsborough counties has pushed users east (along I-4) and southward (along I-75) in search of supply. As of the end of 2007, the industrial property sector was the new most wanted investor demand rental rates are on the rise, quarterly absorption is positive again (12 quarters in a row) and vacancy remains at a 20-year low. The overall average asking rental rate is $6.69 per square foot; however, the majority of the submarkets are above $7.05 NNN per square foot. This rate represents a 28.8 percent increase from 2005 and a 36.3 percent increase from 2004, which is attributable to a decreasing supply of industrial space combined with Tampa s strong job and population growth. The market has experienced a continuation of the demand that has occurred during the last few years. The Tampa MSA had 2.75 million square feet of positive absorption during 2007, which is remarkable given the vacancy rate is 5.6 percent. Further, the expansion in container business at the Port of Tampa has fueled the entire West Central Florida industrial market. With such low vacancy rates across the Tampa Bay market, new construction had been long overdue. There is now 2.16 million square feet of new product being built in Hillsborough County, 619,000 square feet in Pinellas County, 881,180 square feet in Polk County and 451,701 square feet in Sarasota/Bradenton.
East Tampa s I-75 Corridor is the Bay Area s largest submarket (67.19 million), and it is greatly influenced by access to the area s transportation network, which consists of I-75, US-301, US-41, the Selmon Expressway, SR-60 and extends westward along the I-4 Corridor to the Tampa Central Business District. The vibrant East Tampa/I-75 Corridor submarket saw 825,631 square feet of positive absorption in 2007. Of the total 2.75 million square feet of positive industrial absorption that occurred in the entire Tampa Bay area, approximately 30 percent occurred in the East Tampa/I- 75 Corridor submarket. The year-end vacancy rate stands at a stellar 3.6 percent, which is below the overall Tampa industrial market rate of 5.63 percent. Average asking rental rates are $6.75 NNN per square foot for East Tampa, and there is approximately 2.16 million square feet under construction in the I-75/US 301 submarket as of fourth quarter 2007. Going forward, the trend of rising rental rates and low vacancy rates is expected to continue because of tenant demand and a limited supply of large blocks of space. Projects include IDI s 700,000-square-foot Madison Industrial Park, Ryan Companies 492,000 square feet of speculative product at South Shore Corporate Park and Trammell Crow/ING s 650,000-square-foot Madison project. Current rental rates for the new construction are between $5.75 per square foot and $6.65 NNN per square foot. The primary attraction to the tenants of the East Tampa submarket is the inventory s proximity to the major transportation routes that serve not only the MSA, but the entire state of Florida. Nearly half of all national freight destinations are within a day s drive of the market; thus, proximity to the major roadways that serve the region is critical for tenant operations that rely heavily on transportation. The I-75 Corridor has also been the most rapidly growing residential market in the Tampa Bay area. Easy access to I-75 and I-4 allows companies to attract employees to the I-75 Corridor from Pasco to Sarasota Counties and Polk County as well. Brian P. Rettig, SIOR is first vice president with the Tampa office of CB Richard Ellis.
CONTACT INFORMATION Michigan Corporate Headquarters: Steven Schafer / Adam Ossipove 29800 Middlebelt Road Suite 150 Farmington Hills, Michigan 48334 248-613-6262 Cell 248-932-7500 Office 248-932-0128 Fax steve@schafer-dev.com Company Website: www.schafer-dev.com