In this episode of the Industrial Insights podcast, Justin Smith interviews David Hickey from Hickey & Associates about the complexities of economic incentives in site selection. They discuss the various factors influencing site decisions, the misconceptions clients often have about incentives, and the importance of compliance and administration in capturing these incentives. David emphasizes the role of utilities in economic development and the current trends in industrial development, particularly in relation to power demand and sustainability. The conversation highlights the need for strategic planning and early engagement in the incentives process to maximize benefits for businesses.

 

Key Takeaways

• Incentives can strengthen business cases but won't fix bad locations.
• Clients often have unrealistic expectations about incentives.
• Understanding the local business climate is crucial for site selection.
• Compliance is a significant factor in receiving incentives.
• Utilities are becoming key partners in economic development.
• Economic development strategies should focus on retention and expansion.
• The California Compete Tax Credit is a competitive program.
• Many incentives are underutilized due to lack of awareness.
• Timing is critical when considering incentives for projects.
• The demand for power is a growing concern for industrial users.

 

Chapters

• 02:49 - Understanding Client Mindsets and Expectations
• 05:25 - Navigating Incentives: The Role of Brokers
• 08:18 - The Importance of Compliance in Incentive Programs
• 11:28 - California Competes Tax Credit: A Competitive Process
• 14:25 - Utility Incentives and Economic Development
• 23:07 - Utility Partnerships and Performance Targets
• 24:57 - The Role of Utilities in Site Selection
• 27:29 - Community Engagement and Power Demand
• 30:38 - The Semiconductor Boom and Infrastructure Needs
• 34:25 - Incentives and Economic Development Trends
• 37:09 - Navigating the Fiscal Cliff of Incentives
• 42:03 - Timing in Strategic Decision Making

 

Episode Resources

Connect with David Hickey

• https://www.linkedin.com/in/davidphickey/
• https://www.hickeyandassociates.com/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [email protected]
• https://www.linkedin.com/in/justinbsmith