Authored By: Jacob Di Mattia
Navigating the complexities of site selection for a major offshore wind (OSW) manufacturing facility is no small feat, but Evergreen’s Location Strategies team rose to the challenge with LS GreenLink’s ambitious $680 million+ project. In our latest Q&A, we sit down with Evergreen Advisors Location Strategies’ Vice President, Jacob Di Mattia, who led the LS GreenLink site selection, to uncover the journey behind selecting Chesapeake, Virginia, as the ideal location.
Join us as we delve into the details of this two-year endeavor and discover how the perfect site was found for LS GreenLink’s groundbreaking venture.
Key Facts and Figures of the Project:
Investment
In Investment Tax Credits
Jobs Created
LS GreenLink’s Quest for the Perfect US Location
Q: What challenges was LS GreenLink facing when they decided to look for a new location in the US?
Jacob: LS GreenLink had quite a few hurdles when they started searching for a new US location. This was their first OSW manufacturing facility, so they were stepping into uncharted waters. They were unfamiliar with the best locations for such a facility and wanted to avoid the common pitfalls associated with the wind industry. This new project was bigger, costlier, and aimed to create more jobs with higher visibility. They needed experts to help them understand the US market and develop effective location strategies.
Q: What made LS GreenLink choose Evergreen’s Location Strategies team for this project?
Jacob: LS GreenLink chose us because of our deep expertise in the US market and our proven track record in helping companies find the best locations for their facilities. They needed a partner who could navigate the complexities of the OSW industry and who understood the intricacies of site selection, logistics, and community engagement.
Q: What was the timeline for this project?
Jacob: The process spanned a little over two years. We kicked off our work with LS GreenLink in May 2022. Initially, we focused on two states in the Northeast due to their ambitious OSW energy goals and available funding. As the project evolved, we widened our search to find the best opportunity for our client.
Q: How extensive was the search for the right location?
Jacob: It was a pretty comprehensive process. We evaluated sites across the entire Gulf Coast and Eastern Seaboard, conducting detailed assessments of each potential location. This included site visits, consultations with local authorities, and thorough analyses of logistical capabilities. Our goal was to leave no stone unturned in finding the ideal site to meet all of LS GreenLink’s needs. In the end, a site in Norfolk was the final competitor to Chesapeake, but Chesapeake ultimately won the project. Norfolk Economic Development was instrumental in helping us become acquainted with the area, making it a very hard decision for us.
Key Factors Influencing the Site Selection
Q: What specific factors did you consider when selecting a site for LS GreenLink’s OSW manufacturing facility?
Jacob: A few of the unique key factors on our checklist were:
Q: What were some unexpected challenges you encountered during this project?
Jacob: One unexpected challenge was the shift in LS GreenLink’s preference from leasing to purchasing a site. This required us to revisit and reassess several locations. Another challenge was coordinating with multiple state and local authorities to ensure all regulatory requirements were met. However, our team’s flexibility and experience allowed us to navigate these hurdles effectively.
Chesapeake, Virginia: The Perfect Match for LS GreenLink’s Vision
Q: Why was Chesapeake, Virginia ultimately chosen?
Jacob: The Hampton Roads region offers excellent port facilities with deep water access.
- A site in Chesapeake became available for purchase.
- There is strong support from local and regional authorities.
- The area’s workforce, with its military background and manufacturing know-how, is very appealing.
- The site offers room for potential future expansion.
- Zoning and permitting conditions are favorable.
- The community, alongside the state of Virginia, is exceptionally supportive. The Virginia Economic Development Partnership, Chesapeake’s Mayor, Chesapeake City Council, Chesapeake Economic Development, and the Hampton Roads Alliance effectively promoted their region as an ideal place to do business.
Q: How did the $99M investment tax credit factor into the decision-making process?
Jacob: The $99 million investment tax credit was a significant factor in the decision-making process. It not only made the project financially more viable but also underscored Virginia’s and the United States’ commitment to supporting large-scale manufacturing initiatives. This tax credit helped make Chesapeake an even more attractive option, aligning well with LS GreenLink’s financial and strategic goals.
Q: What are the next steps now that the site has been selected?
Jacob: With the site selected, the next steps include finalizing the purchase, securing the necessary permits, and starting the site development. We’ll continue to support LS GreenLink through these phases, ensuring everything stays on track and any new challenges are addressed swiftly. Beyond just establishing a successful operation in Chesapeake, LS GreenLink is committed to becoming an integral part of the local community, fostering positive relationships, and contributing to the region’s growth and development.
Q: Looking back, what do you think were the key factors to the success of this project?
Jacob: I would definitely say our comprehensive understanding of LS GreenLink’s needs, thorough market analysis, and ability to adapt to changing circumstances were crucial. Strong communication, collaboration with local stakeholders, and our commitment to finding the best solution for both LS GreenLink and the Chesapeake community were also essential.
Evergreen has a culture of proactive pursuit of process improvement. Our unique process, developed over decades of site selection project experience and continually refined to meet the evolving needs of the market, played a key role in ensuring the project’s success. By combining these elements, we were able to deliver exceptional results and create a win-win scenario for both LS GreenLink and the Chesapeake community.
Long-Term Benefits for Chesapeake and the Community
Q: How will LS GreenLink’s new facility impact the community in Chesapeake, Virginia?
Jacob: LS GreenLink’s new facility is expected to have several positive impacts on Chesapeake:
- Job creation: The project will bring a significant number of new jobs to the area.
- Economic growth: As a large manufacturing facility, it will stimulate economic growth through direct investment and indirect economic activity.
- Workforce development: The facility will leverage the area’s existing skilled workforce, particularly those with military and shipbuilding backgrounds, fostering specialized skills in the OSW industry. LS GreenLink also plans to create a talent pipeline for clean manufacturing and educate school-aged children and teens about modern manufacturing, highlighting its advancements and opportunities.
- Industry diversification: It will help diversify the local economy, making it more resilient.
- Utilization of local resources: The project will make use of the Hampton Roads region’s deep-water port facilities, potentially increasing port activity and related services.
- Community involvement: LS GreenLink is committed to being an active part of the community, similar to their initiatives in Korea where they host school kids for factory tours, teaching them about modern manufacturing.
- Strong community support: There’s strong support from local authorities and the state of Virginia.
- Future expansion potential: The site offers room for future expansion, which could bring additional benefits to the community.
Q: What does it mean to the Evergreen Location Strategies team to not only help your client but also know that you’re doing a lot of good for the community of Chesapeake?
Jacob: At Evergreen Location Strategies, finding solutions that benefit both our clients and their new communities is more than just our job – it’s our passion. The LS GreenLink project in Chesapeake is a perfect example of why we do what we do.
We’ve helped LS GreenLink find their ideal home for their OSW manufacturing facility, ticking all the boxes for port access, skilled workforce, and room to grow. But what really excites us is the positive ripple effect this will have on Chesapeake and the Hampton Roads region.
We’re looking at economic growth that will breathe new life into local businesses. And by bringing this type of work to the area, we’re helping Chesapeake diversify its economy, making it more resilient for future generations. In the end, it’s about creating a win-win situation where businesses thrive and communities benefit. That’s the kind of impact that gets us out of bed in the morning, eager to take on the next challenge.
Q: What was your drink of choice to celebrate the deal close, Jacob?
Jacob: Ironclad, of course! When in Virginia, you’ve got to keep it local!