Gazarian Real Estate Center Craig School of Business

1. Gazarian Real Estate Center Craig School of Business Industrial Real Estate Forum Mayor Lee Brand Larry WesterlundDirector of Economic Development November 7, 2018

2. Time MachineApril 2014 - Mega Project OBJECTIVEPlace all properties in the +/- 550 acres plant footprint in escrow in 30 days.

3. Land Acquisition in 30 days ASSUMPTIONS: • X or associated entity to purchase all property • X will either assemble property directly or work with local master developer and local broker • All purchases for cash • Focus on taking down first 550 acres • Willing to pay appropriate price for fast purchase • Use of eminent domain not available • X would only require a 30 day escrow for due diligence

4. Property Acquisition Options 1 Direct Assembly “Assignment” Master Developer 2 3 *Note: Once property is in escrow, City of Fresno will begin entitlement process to expedite timelines.

5. Project Site Footprint:+/- 550 acres

6. First Wave Property: 402.41 Acres in escrow in five business days

7. First Wave Property: 402.41 Acres in escrow in five business days

8. Second Wave Property:76.63 Acres in escrow in 14calendar days

9. Third Wave Property: 95.78 Acres in escrow in thirty calendar days

10. Accessible Infrastructure ATT Fiber

11. Water Service

12. Waste Water Infrastructure and Expansion Project

13. Build in Reno?

14. Fresno Industrial Triangle Today

15. Distribution center v. Fulfillment center

16. Attraction Projects

17. Unemployment Rate California 4.1% Los Angeles 4.1% San Diego 2.8% San Jose 2.3% Bakersfield 4.7% Sacramento 3.5% San Francisco 2.1% Fresno 5.0%

18. Why fulfillment center jobs? Amazon +3000 Ulta Beauty +800 Gap +500 4,300

19. Bay Area tech employment • 60% of tech workers can’t afford a home in San Francisco • 58% of tech workers said that increased cost of living in the Bay Area has caused them to put off having kids. – Blind Survey • Nearly 70% of Apple employees • More than 60% of employees working at Cisco, eBay, Uber, Google and LinkedIn • More than 50% of employees working at Amazon, Intel, Lyft, Facebook, Booking.com and Salesforce • The average tech worker in the Bay Area earns $142,000 • Median price of a home in the Bay Area is roughly $900,000 • Bay Area Council survey found 46% of San Francisco Bay Area residents plan to leave the area soon • Up from 40% in 2016 and up from 34% in 2015 • The high cost of housing and living is cited as the largest reason to move • San Francisco’s average home price in the city is a whopping $1.62 million – Business Insider 7/10/18

20. Home Prices in the Bay Area Palo Alto house – 897 square-foot home listed at $2.59 millionTwo-bedroom, one bathroom homeThe home sold last in 2008 for $899,000 Business Insider 9/22/18 San Jose house that suffered major fire damage two years ago went on the Market for $800,0005,800 square foot lot1375 Bird Ave – Willow Glen neighborhood sells for $938,000 in all-cash bid

21. Bureau of Labor StatisticsOccupational Employment StatisticsMay 2017 Metro Fresno Ca.Location Quotient 2.0- 4.0

22. Opportunity Zones

23. High Speed Rail

24. Questions Larry WesterlundDirector of Economic Development Larry.westerlund@fresno.gov (559) 621-8355 April 28, 2014