06-B PEDC Budget 2007-2008 - Laserfiche WebLink

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Lamar County - Paris Economic Development Plan The issue of real estate is so important, that today, more than 70% of the counties in the United States which have economic development programs have "community or government owned industrial parks." Presently, Paris has a limited supply of property. To reach the economic goal set forth of3000 primary industry jobs, 500 net usable acres will be needed over the next twenty years. To be successful, the community not only needs to have the land available but it also needs to control the property, relative to price and use. Recommendation: Paris must create an abundant supply of inexpensive, improved, approved industrial real estate which it can offer to primary employers under favorable terms and conditions. The Task: Within two years, the PEDC shall purchase and develop a multi-use "industrial park," 500 acres in size, which shall be marketed exclusively to qualified primary employers. · Within one year, PEDC will purchase additional land and continue development of our existing industrial park. · Within one year, the horizontal development of the industrial park shall commence and criteria for the sale or lease of the land shall be established. Existing Buildings: Most businesses looking to locate would prefer to lease or purchase an existing building which exactly meets their facility needs. The reasons include: 1) the facility cost is certain (as opposed to uncertain construction costs), 2) there typically are not any zoning or community issues to confront, and 3) the time necessary to begin production is truncated significantly compared to constructing a facility. The most desirable situation for a community is to have a plethora of modern, existing buildings available which meet the specific structural needs of a business and are ready for occupancy on the desired date. Few, if any, communities in the United States are in this position. Between 1988 and 1992, there was a collapse of the commercial, industrial marketplace. As a result of overbuilding, millions of square feet of new industrial and office space were available for immediate occupancy at depressed prices. This space has since been absorbed and commercial developers are reluctant to construct speculative product. After the "dot-com" boom busted in California and Oregon, there was and still is an abundant supply of modern office - high tech buildings available. However, on a national basis few communities have vacant, modern buildings which have been constructed in the last ten years that specifically meet the needs of most industrial users. Communities which have constructed speculative buildings, however, have a competitive advantage. Paris Economic Development Corporation Page 18