12119 Stratford Drive, Suite B | Clive, IA 50325 | (515) 309-0705 | [email protected] | www.DiligentDevelopment.com
Van Meter, Iowa
200 acre IeDa certIfIeD
Data center SIte
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www.DiligentDevelopment.com
TABLE OF CONTENTSPROPOSED DATA CENTER SITE
DUE DILIGENCE SUMMARY
Page
Background Information ... 3
Site Renderings ... 5
Power ... 6
Capacity ... 6
Sources and Type... 6
Cost ... 6
Extension of Service…… ... 6
Natural Gas……. ... 9
Network ... 10
Utilities and Infrastructure ... 11
Water Availability ... 11
Wastewater System Capacity…… ... 13
Ingress / Egress Routes………. ... 14
Site Studies and Reports ... 16
Boundary Surveys and Topography Maps ... 16
Environmental ... 16
Geotechnical ... 16
Cultural Resources ... 16
Wetlands and Endangered Species ... 16
Zoning and Permitting ... 18
Zoning ... 18
Permitting ... 18
Location ... 19
Regional Planning Statistical Reports and Analysis ... 19
Site Location Generally ... 19
Data Center Market in Des Moines ... 20
Recent Ratings and Rankings for Des Moines ... 20
Logistics ... 21
Local Workforce ... 21
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City of Van Meter Financial Incentive Programs ... 23
Tax Increment Financing (TIF) / Tax Rebate ... 23
Infrastructure Improvements ... 24
Iowa Program Support ... 24
Local Governance and Economic Development ... 24
Risks and Location to Infrastructure ... 25
Flood Plain ... 25
Tornados ... 26
Earthquakes and Rolling Blackouts ... 26
Interstate Highway ... 27
Railroads ... 27
Gas Transmission Pipelines ... 27
Coal Mines ... 27 Chemical Plants ... 27 Dams ... 27 Landfill ... 27 Research Labs... 27 Manufacturing Facilities ... 27 Defense Plant ... 27 Military Base ... 28 Nuclear Plants ... 28
Iowa Economic Development Authority Site Certification Program... 28
Program Summary... 28
Criteria ... 28
Diligent Development Group... 29
Team Biographies... 29
Appendix ... 31
Exhibit A: Site Renderings ... 31
Exhibit B: Boundary Surveys and Topography Maps ... 34
Exhibit C: Phase I and II ESA Summaries ... 37
Exhibit D: Geotechnical Exploration Findings ... 39
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www.DiligentDevelopment.com
IOWA ECONOMIC DEVELOPMENT AUTHORITY CERTIFIED DATA CENTER SITE DUE DILIGENCE SUMMARY
Background Information:
On January 31, 2012, an ownership group controlled and represented by Diligent Development Group, LLC, acquired 120 acres of agricultural property situated near MidAmerican Energy’s Booneville substation in Van Meter, Iowa.
On March 13, 2012, the 120-acre parcel ownership group entered into a joint-marketing agreement with the owner of an 80-acre parcel directly to the north of the 120-acre parcel.
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Through this agreement, 200 acres of land near the MidAmerican substation (hereinafter collectively referred to as the “Diligent Site” or “Site”) are under the control of the cooperating land owners. All land owners have provided letters setting forth their intentions to sell the Site upon coming to terms with a buyer.
On April 28, 2014, the Diligent Site was designated as a “Shovel Ready” site by the Iowa Economic Development Authority’s (IEDA) Site Certification Program. The program is administered through McCallum Sweeney Consulting, a worldwide focused site selection and consulting firm based in Greenville, South Carolina. The purpose of the program is to certify participating sites as suitable for industrial and data center users, and create “shovel ready” sites. All due diligence requirements for the Diligent Site have been finalized, plans and documents are in place for infrastructure improvements, letters of intent for authorizations are in place and applications for permits are complete. Comprehensive documentation for all required elements of Site Certification is in place will be made available upon request.
Through extensive due diligence efforts and discussions with various economic development and industry officials, it appears the Site is an exceptional candidate for a data center or industrial user. Sources have suggested the Diligent Site and surrounding parcels have consistently made it to final stages of several site selection processes.
The Greater Dallas County Development Alliance (GDCDA) and the City of Van Meter have spearheaded certification efforts for the Site and have made nothing short of major investments of capital and time in the project. Both entities are fully engaged in the effort and have expressed a full and enthusiastic commitment to meeting the needs of a data center user(s) should the Site be acquired for such a purpose. The primary drivers and contacts concerning Site Certification are Linda Jackson-Wunch, Executive Director of GDCD; Julie Einck, GDCDA’s Project Manager for the Van Meter Site; and Jake Anderson, City Administrator of Van Meter. Special thanks are due for their vision, work and efforts, as well as the efforts of Van Meter’s Mayor, Allan Adams, and Van Meter’s City Council for showing unwavering commitment, dedication and enthusiasm to this project. Inquiries to the Greater Dallas County Development Alliance may be made to:
Lind Wunsch, CEcD
Greater Dallas County Development Alliance 9325 Bishop Drive, Suite 125
West Des Moines, IA 50266 515-987-2020 [email protected]
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Site Renderings:
The following rendering, prepared by engineering firm, Civil Design Advantage in Grimes, Iowa, depicts the Site’s ability to accommodate Microsoft’s West Des Moines data center and an existing Digital Realty data center located in Ashburn, VA. Additional site renderings are located at Exhibit “A.”
Microsoft Building
8855 Grand Ave, West Des Moines 110k ft^2 in first facility
Employing 12 people initially -- to grow when fully operational Another facility planned (2011-10-12 Des Moines Register)
http://blogs.desmoinesregister.com/dmr/index.php/2011/10/12/additional-building-planned-at-microsoft-data-center-in-w-d-m/
Microsoft Data Center, West Des Moines, IA
Digital Realty Data Center, Ashburn, VA
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Digital Realty Building:
Devin Shafron Drive, Ashburn, VA 20147
Estimated building sizes: 300' x 600', 300' x 400', 300' x 450', 300' x 400' Total estimate: 555k ft^2
Prior website claims:
113k ft^2 at 43830 Building F The 43915 address has 132k ft^2 Power:
Capacity:
Utility poles crossing the Site carry one 365 kV line and one 161 kV line. The Booneville substation is fed by five 345 kV lines and three 161 kV lines. MidAmerican officials have described the Site as an excellent potential industrial or data center site and have advised that the Booneville substation can “handle substantially greater loads,” even during periods of peak usage. In 2012, MidAmerican officials advised the Booneville Substation could accommodate up to 600 megawatts in its then present state and more through its expansion. MidAmerican meets its customers’ demand for electricity with nearly 8,087 megawatts of generating capacity. Peak demand of 4700 megawatts was set July 19, 2011. MidAmerican is a member of the Midwest Independent Transmission System Operator. This provides a number of benefits, including more efficient use of generating assets, easier access to a broader group of entities to enable purchases and sales of energy, and continued high levels of reliability throughout the region.
Sources and Type:
The transmission lines originate from multiple power generation sources including a coal powered plant in Council Bluffs, Iowa, and a nuclear powered plant in Brownville, Nebraska. Approximately 45 percent is fueled by coal; 30 percent by wind; 19 percent by natural gas and oil; and 6 percent by nuclear or other sources.
MidAmerican Energy is Iowa’s largest energy company, providing electric service to 732,000 customers and natural gas service to 714,000 customers in Iowa, Illinois, Nebraska and South Dakota. It is headquartered in Des Moines, Iowa. By providing its customers with reliable electric service, stable rates, updated infrastructure and award-winning energy efficiency programs, MidAmerican Energy provides an outstanding environment for business. MidAmerican Energy’s EconomicAdvantage professionals are uniquely suited to assist with a variety of research, planning and coordination activities, and stand ready to serve as a resource to business, site selection and economic development professionals.
Cost:
MidAmerican representatives state that electric rates to industrial customers range from 4¢ to 6¢ per kilowatt hour.
Extension of Service:
To extend service to the Site, MidAmerican Energy will relocate its 13.2 kV line to serve the needs of a user. The relocation of the electric distribution facilities is estimated to be $450,000. Once the relocated line is in service, MidAmerican will formally release its rights held that were in effect prior to the abandonment of 365th Street. MidAmerican will require a relocation agreement be completed between the parties. The estimated timeline for the electric system relocation
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project is four months after all necessary easements have been obtained. MidAmerican’s plan for extension follows, along with an aerial image of the Booneville Substation.
8 MidAmerican Energy Booneville Substation
9 Natural Gas
According to MidAmerican Energy, based upon the building placement map, a new customer with a process natural gas load of 20,833 cubic feet/hour will require:
• Installation of approximately 5.1 miles of 115 psig main • Installation of approximately 0.8 miles of 60 psig main • Regulator station upgrade
• Installation of a new odorizer
• Pipeline supplier branch line modifications
The route of the improvement will be in public right of way south along Hull Court; east along 105th Street; north along Knox Avenue; east along County Road F90, south along Richland Road (R16) and east along 365th Street (R16) to the site.
The high level cost estimate to serve this site is $4.5 million. The timeline to serve the project is 18 months from the time a new customer signs all necessary agreements, contracts, transfers of interest in real estate, guarantees, payments and surety. A map detailing MidAmerican’s Site extension plan follows:
10 Network:
Multiple long-haul fiber lines are located near the property. AT&T long-haul fiber runs directly through the property along the transmission line right-of-way. Level 3 and CenturyLink long-haul fiber lines run along F90 / 360th St, which is one-half mile from the Site. Sprint long-haul fiber runs along the railroad right-of-way. Windstream & CenturyLink each have local fiber near the property. In discussions with CenturyLink officials, it was stated that capacity is unlimited. AT&T, Level 3, CenturyLink and Windstream have POPs in Des Moines, with low latencies to metropolitan areas including Chicago, Kansas City, Minneapolis and Omaha.
CenturyLink advises it can currently provide DS-1, T-1 or T-3 services to the location with a new possible fiber route range of 1.5 to 3.5 miles depending on the endpoint location. There are no known right-of-way issues with the potential fiber route. CenturyLink has the ability to provide services up to 100Gb within its service area. As an element of Site Certification, CenturyLink has disclosed existing facilities near the Site and provided a possible fiber route as detailed in the maps that follow.
11 Utilities and Infrastructure:
Water Availability:
The City of Van Meter is willing and able to provide potable water service to the Site. The City can provide a minimum of 500,000 gallons per day of excess permitted treatment capacity available. The plan is to construct two new wells to provide the excess capacity with reliability. Although not required for capacity, the current schedule for the wells is 2015.
A 12 inch water main is located west of the Site on Richland Road (R-16) and near the west boundary of the Site. The capacity of the water main is 1,100 gpm and the current load on the water main under normal usage is less than 100 gpm. The current static pressure in the water main is 30 psi to 35 psi along Richland Road. The City has designed and will construct a booster station located on the 12-inch water main north of F90 at an estimated cost of $300,000. Construction is tentatively scheduled for 2014 and can be expedited. Estimated construction time is eight months. With the booster station, the static and residual pressure in the area would be increased to a static pressure of approximately 65 psi and a residual pressure under normal usage in the range of 60 psi to 62 psi.
The City of Van Meter’s water system is currently rated for capacity of 0.85 mgd (625 gpm). The current average day usage is 0.085 mgd and the peak day usage is 0.19 mgd. Primary water storage is provided by the City’s water tower located northwest of the Site. The water tower has an effective storage volume of 100,000 gallons per day. There are no commitments or allocations to existing capacity.
Warren Water has a 6-inch water main located along F-90 and a 4-inch water main at R Avenue. Warren Water is available for non-fire protection purposes. The available pressure from Warren
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Water in this area is in the range of 40 to 50 psi. Other redundant sources included Des Moines water, aquifer well water, and other sources of gray water.
All required Iowa Department of Natural Resources applications for the water booster station and water main extension construction permit applications are in place. The City intends to finance the cost for construction of the water infrastructure improvements through the sale of General Obligations Bonds with debt service to be funded by TIF revenue generated from the Urban Renewal District encompassing the Site area. A map detailing water system and improvement locations follows:
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Wastewater System Capacity:
The City of Van Meter is willing and able to provide sanitary sewer service to the Site. The City currently does not have a minimum of 500,000 gallons per day of excess permitted treatment capacity available. The City can upgrade its treatment facility to provide this level of capacity. A 10-inch diameter sanitary sewer is located on the west side of Richland Road at 365th Street near the west boundary of the Site. Sanitary sewer service is readily available to the Site. With development of the Site, wastewater will need to be pumped to the sanitary sewer outlet.
The capacity of the existing 10-inch sewer is a minimum of 0.8 mgd of which 0.1 mgd is currently dedicated to residential users located in Crestview Estates immediately west of the site. The existing sewer has a minimum of 0.5 mgd of capacity from the Site westerly to Hazel Street and northerly on Hazel Street to the drainage channel.
From Hazel Street, the flow continues easterly in an existing sewer that extends along the drainage ditch to the wastewater treatment plant pump station under normal conditions. This sewer has adequate capacity to accommodate 0.5 mgd of additional flow. During certain peak flow periods the existing sewer may become overloaded with an additional 0.5 mgd of capacity. The City's long term-plan is to construct a new sewer parallel to the existing sewer along the drainage ditch. This sewer is not considered time critical as it is based on the overall flow in the City and is not necessary to accommodate the 0.5 mgd of additional capacity from the Site certification area. The parallel sewer would be approximately 3,800 feet in length and is estimated to cost approximately $450,000. The estimated time for design of the project is three months and the estimated construction period is approximately six months.
Sanitary sewer flow from the existing sewer in the eastern part of the Site is by gravity to the pump station that serves the wastewater treatment facility. There is no pumping required within the conveyance system between the west boundary of the Site and the wastewater treatment facility.
The Site slopes both northerly and southerly. The central portion of the site can be sewered by gravity to the existing 10-inch sewer. If development were to occur in the northerly or southeasterly portions of the Site, a Iift station would be required to pump the flow back to a sewer extending west to the gravity sewer. The need for lift stations within the Site will be determined by the location of any development within the Site.
The City of Van Meter's wastewater treatment plant is a controlled discharge lagoon facility. The facility does not currently have available 0.5 mgd (500,000 gpd) of available capacity as the control discharge lagoon must store flow for a period of 180 days for a spring and fall discharge. The City is currently working on the facility planning to expand the wastewater treatment facility to provide an additional 90 mg of capacity to lagoon cells or construct a continuous discharge wastewater treatment plant to operate in conjunction with the existing lagoon facilities. The City plans to complete its facility planning in 2013 and to complete the design of the lagoon cells by 2013 or early 2014. Construction will take approximately eight months to complete. Construction will be timed based on the need for the additional lagoon cells.
There are no encumbrances or allocations of the available or future capacity of the wastewater treatment plant. All required Iowa Department of Natural Resources applications for the wastewater improvements construction permits are in place. The City intends to finance the cost for construction of the water infrastructure improvements through the sale of General Obligations Bonds with debt service to be funded by TIF revenue generated from the Urban Renewal District encompassing the Site area. A map detailing current status of the wastewater system follows:
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Ingress / Egress Routes:
Ingress and egress along the north side of the Site is provided by Dallas County Road F90 (360th Street). Ingress and egress along the west side of the site is provided by County Road R16 (Richland Road). Ingress and egress through the Site is provided by 365th Street.
At the present time, all of the roads have relatively modest traffic volume with no identified congestion or safety concerns based on current and anticipated use. The roads in the area have traffic volumes ranging from 2,000 vehicles per day to less than 200 vehicles per day.
As an element of Site Certification, construction plans, cost estimates and financing plans to pave 365th Street have been developed, are available and will be provided upon request. Transportation network and route access maps follow:
16 Site Studies and Reports:
Boundary Surveys and Topography Maps:
Boundary surveys and topography maps have been completed and are located at Exhibit “B.”
Environmental:
On April 6, 2012, a Phase I Environmental Site Assessment (ESA) report was completed for the Site. With the exception of a 200-gallon above ground fuel oil storage tank located in the basement of an abandoned house on the 120-acre parcel, no evidence exists of recognized environmental conditions on the Site. In connection with the 200-gallon above ground fuel oil storage tank, a Phase II Environmental Site Assessment was conducted. Soil and ground water samples from a test boring drilled near the tank showed no evidence of contamination. The results of the Phase II ESA did not indicate a need for additional soil or groundwater testing. Copies of the executive summaries for the Phase I and II ESAs are located at Exhibit “C.”
Geotechnical:
Between March 25 through 28, 2013, Allender Butzke Engineers Inc. (ABE) conducted six preliminary borings for the Site to depths of 20 feet below existing grades. These borings were conducted to examine the suitability and support capability of the existing soils.
This Site is located within a geomorphic region known as the “Southern Iowa Drift Plain.” Soil stratigraphy generally consists of loess underlain by Pre-Illinoian glacial till. The loess is an eolian “wind-blown” deposit derived from flood plain sediments associated with major glacial meltwater streams and tends to have a relatively uniform silt particle size. The upper weathered portions of the deeper Pre-Illinoian glacial till, referred to as paleosol, is typically a high clay content soil. The less weathered portions of the deeper Pre-Illinoian glacial till consist of a more homogenous mixture of sand, silt and clay.
ABE opines that the Site can be developed for industrial or commercial construction. ABE’s written findings and a map showing the location of soil borings is located at Exhibit “D.”
Cultural Resources:
On November 11, 2013, a Phase I cultural resource inventory was conducted by Quality Services, Inc., Rapid City, South Dakota, for the Site. Shovel testing was conducted throughout the project area with all thirty shovel tests being negative for cultural resources. No additional cultural resources were discovered during the field survey or subsurface testing. A determination of “no historic properties affected” was recommended for the Diligent Site. Review of the cultural resources inventory is pending with the State Historical Preservation Office, with this being the last remaining needed component to certify the Site. Final review is expected by the end of the first quarter of 2014.
Wetlands and Endangered Species:
On May 17, 2013, Griggs Environmental Strategies, Inc. (GES) submitted a Wetland Investigation and Threatened and Endangered Species Report in support of certification efforts for the Site. An investigation of the boundaries of jurisdictional wetlands and other waters was undertaken within the project study pursuant to Section 404 of the Clean Water Act. Second, a habitat suitability study was performed pursuant to the Threatened and Endangered Species Act to determine if potential habitat for the Indiana bat or other listed species was present. Approximately 40 acres of mature, high-quality woodlands on the northern portion of the Site was identified as suitable habitat for the Indiana bat. GES recommended that if development were to occur on the Site that
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the potential wooded bat habitat be excluded. The GES study has been reviewed by the U.S. Fish and Wildlife Services and U.S. Corps of Engineers. A National Wetlands Inventory Map for the Site follows:
18 Zoning and Permitting:
Zoning:
The Site was annexed into the City of Van Meter in 2013 and on September 9, 2013, an Ordinance was enacted designated as “BP1, Business Park.” The City’s commercial zoning districts generally do not have a minimum lot size. Commercial districts generally have a 25-foot front yard setback and a 35-foot rear yard setback. The side yard setback varies depending on the adjoining zoning district. The side yard setbacks are generally less than 20 feet. A current zoning map follows:
Permitting:
Permits for development of the Site, including building permits and zoning compliance, are under the jurisdiction of the City of Van Meter. Building permits require an approved site plan and the permit can be generally issued within 10 days after application.
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Development of the Site that disturbs more than one acre requires a Storm Water Pollution Prevention Plan (SWPPP) and General Permit No. 2 from the Iowa Department of Natural Resources. The permit is based on publication and notification, and is generally issued within two weeks after submittal of required documentation.
Location:
Regional Planning Statistical Reports and Analysis:
In 2010, Des Moines Metro area leaders undertook regional strategic planning initiatives to form a vision for moving the region forward over the next several decades and how to best ensure its long-term health and vitality. The result of the initiatives is the “Tomorrow Plan.” The Tomorrow Plan is a regional planning effort focused on the sustainable development of Greater Des Moines. It involves residents and local leaders in identifying visions and aspirations for the region, exploring potential scenarios for its future, and setting a preferred direction for sustainable future development. As a result of this process, comprehensive Economic and State of the Region reports were recently completed and may be viewed at the following link:
http://www.thetomorrowplan.com/resource-library/reports/.
Site Location Generally:
• Centrally located to all major United States cities
• Adjoins MidAmerican Energy substation in Van Meter, Iowa
• 1.8 miles southeast of Van Meter and 10.8 miles from the heart of West Des Moines, IA • 3.1 miles from Interstate 80
• 6.4 miles from West Des Moines Microsoft Data Center • 8.6 miles from Interstate 35
• 17.4 miles from Des Moines International Airport • 30 miles from the Ankeny Regional Airport • 17.8 miles from downtown Des Moines
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Data Center Market in Des Moines, Iowa:
“Des Moines is one of the top 10 cities to build a data center facility,” based on a recent study from The Boyd Company, Inc. that ranks metro areas based on annual operating costs. “The ranking is based on factors such as land and power costs, telecom infrastructure, limited exposure to natural disasters and a local workforce with data security skills.” Information Week
The Boyd study specifically found Des Moines to be “the most affordable place in the country for electric power,” based on a recent study by Boyd which broke out which cities were cheapest and most expensive for several individual categories.
“Des Moines and Iowa are attractive data center locations, with their low-cost land, workers with computer security training, inexpensive electrical costs and limited exposure to natural disasters,” says John Boyd, President of The Boyd Company, Inc.
(Source: The Greater Des Moines Partnership) Recent Ratings and Rankings for Iowa and Des Moines:
#1 “Wealthiest City in America” -TODAY show, 2014
#1 “Best Medium-Sized Metro Area for Homeownership” -Nerdwallet, 2014 #5 "Best US States for Young Adults" -MoneyRates, 2013
#15 “America's Most Productive Metros” - The Atlantic Cities, 2013 "Three Best Cities to Start a Business" - Forbes, 2013
#12 "Best States for Business" - Forbes, 2013
#1 "Best Places for Business and Careers" - Forbes, 2013 #2 "Strongest Local Economy" -Policom, 2013
#3 "Top 15 U.S. Cities' Emerging Downtowns" -Forbes, 2013
#1 "Best Midwest Cities for Young Adults" -The Business Journals, 2013 #2 "Best Cities to Start a Business" - The Street, 2013
21 #6 "Best Cities to Grow Old In" - MSN Money, 2012 #1 "Best Cities for Families" - Kiplinger, 2012
#4 "Best Places for Business and Careers" -Forbes, 2012 #2 " Best Cities for Jobs this Summer" -Forbes, 2012
#10 "Most Educated Young Workforce" -The Business Journals, 2012 #2 for "Best Cities for Jobs" -Forbes, 2012
Downtown Des Moines Farmers' Market recognized as "One of America's Best." - Country Living, 2012
#1 "Best Cities for Young Professionals" -Forbes, 2011
#1 "Richest Metro in the Nation" -US News & World Report, 2011 #1 "Cities in the US for Home Renters" - Time, 2011
#9 "Best State for Business" -CNBC, 2011 #3 "Best Cities for Business" - MarketWatch, 2011 #7 "Best Cities for the Next Decade" - Kiplinger, 2010
Logistics:
The Site is located 17.5 miles from the Des Moines International Airport (DSM). Street traffic from the airport flows normally at all times with a travel time between DSM and the Site taking approximately 20 minutes. DSM, located just three miles from the business district, serves the Greater Des Moines Metropolitan Area and all of Central Iowa. DSM offers passenger service to major hubs around the country with an effective balance of commercial airlines that provide multiple daily flights. Those flights bring many choices to Central Iowans and carry approximately 2 million passengers annually. That places the Des Moines International Airport in the top 100 most active commercial airports in the nation. Passenger carriers include AirTran, Allegiant, American Eagle, Delta, Frontier, Southwest, United and US Airways Express. Charter carriers include Elliot Aviation and Signature Flight Support. Due to its location at the crossroads of America, DSM also has a strong presence of air cargo carriers, including Air Net, UPS and FedEx. The Airport terminal is open 24 hours each day.
Local Workforce:
Greater Des Moines is a major insurance and financial services center. The labor market is ranked in the top 20 metropolitan areas for software-related employment on a per capita basis. In addition, IT salaries are four percent below the national average and 30 percent below coastal cities. The Greater Des Moines Partnership
In the study finding that Des Moines is one of the top 10 cities to build a data center facility, The Boyd Company, Inc. partially based its findings on the fact that Des Moines has a local workforce with data security skills, including people trained at universities recognized as National Centers of Academic Excellence in Information Assurance Education, which are certified by the National Security Agency. Information Week
Greater Des Moines is home to over ten institutions of higher education, including four-year colleges such as Drake University and Grand View University, to graduate-level institutions such as Des Moines University and two-year professional schools such as Des Moines Area Community College. Just 20 minutes to the North, Iowa State University in Ames enrolls 20,000 undergraduates and an additional 10,000 graduate and professional students. The University of Iowa (21,500 undergraduates / 9,300 graduate and professional students) and the University of Northern Iowa (11,000 undergraduates / 1,800 graduate students) are located within approximately two hours from Des Moines.
The Greater Des Moines area has a well educated workforce. More than 90 percent of the Des Moines Metro area population has a high school degree. By 2009, approximately 35 percent of the population had a college degree. In the Metro’s fastest growing communities of Clive, Waukee, Johnston, West Des Moines and Urbandale, over 45 percent of residents have
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bachelor’s level or higher degrees. The Tomorrow Plan Economic and State of the Region Reports
Greater Des Moines has a productive workforce. In 2010, Des Moines’s Gross Domestic Product (GDP) approximated $133,000 per worker, compared with $85,000 for the State of Iowa and $94,000 nationally. Worker productivity in Des Moines exceeds the GDP per worker in Chicago, Kansas City, Minneapolis, and Omaha, each ranging from $100,000 to $108,000. The Tomorrow Plan State of the Region Report
State Taxes and Incentives:
(Source: The Greater Des Moines Partnership)
Under the Iowa Code, computers used in a commercial enterprise are exempted from sales tax. For a qualifying investment, the Data Center legislation provides a new subsection that specifically exempts from Iowa sales and use tax computers and equipment necessary in the maintenance and operation of a qualified data center business. All of this adds up to a very substantial incentive. To qualify for this exemption, the business shall make a minimum investment of 200 million dollars in Iowa within the first six years of operation beginning with the date the business initiates site preparation activities.
Exempt computers and equipment are as follows:
• All computers used in the maintenance and operation of a data center;
• All equipment that is directly or indirectly connected to the computers which are used in the maintenance and operation of a data center. Specifically this may include, but in not limited to:
o Cooling systems; o Cooling towers;
o Other temperature control infrastructure; and
o Power infrastructure for transformation, distribution and management of electricity used in the maintenance and operation a data center, which includes, but is not limited to: Exterior dedicated business‐owned sub stations;
Backup power generations systems; Battery systems; and
Related infrastructure
• Other items exempt as necessary for the maintenance and operation of a data center: o Racking systems,
o Cabling; and o Trays
• The sales price of fuel for the backup power generation
• The sale price of electricity purchase for use in operating the data center
In addition, the legislation provides for the exemption of real property tax on property, other than land and buildings and other improvements, that is utilized by a data center business. This includes equipment such as cooling systems, cooling towers, power infrastructure, racking systems, cabling and trays, etc.
The law provides a graduated scale of incentives based on the relative size of the investment a data center business makes in the state of Iowa.
Definition:
“Data Center” means a building rehabilitated or constructed to house a group of networked server computers in one physical location in order to centralize the storage, management, and dissemination of data and information pertaining to a particular business, taxonomy, or body of
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knowledge. A data center business’s facility typically includes the mechanical and electrical systems, redundant or backup power supplies, redundant data communications connections, environmental controls, and fire suppression systems. A data center business’s facility also includes a restricted access area employing advanced physical security measures such as video surveillance systems and card‐based security or biometric security access systems.
Incentives:
The table on the following page illustrates the incentives available for eligible data center businesses:
Additional Information:
• Must comply with sustainable design and construction standards which will be established by the State Building Code Commissioner.
• Administered by the Department of Revenue
• No personal property tax. In Iowa, there is no personal property tax including computer equipment.
• No sales and use tax on servers, computers and equipment assessed as real property and used in the processing of data by insurance companies, financial institutions, or certain commercial enterprises.
• No sales tax on custom computer software or software delivered electronically. City of Van Meter Financial Incentive Programs:
Van Meter has adopted tax increment financing districts, which they have utilized to put in place public infrastructure and to incentivize developers.
Tax Increment Financing (TIF) / Tax Rebate:
Tax increment financing is a flexible tool enabling communities to use property tax dollars generated from a new development to assist the developer. Depending on the needs of businesses, the TIF program can provide funds for several purposes. The following are ways TIF funds could be used to assist a user:
24 • Extend utilities
• Street improvements
• Provide local match for state programs • Construction or equipment costs • Acquisition of property
• As a grant, loan, or interest buy down
Typical rebates have been over a five-year period and have utilized a sliding rebate schedule. The following example is based on a $10,000,000 investment at $30 per $1,000 of taxable value.
First year: 75% = $225,000 Second year: 60% = $180,000 Third year: 45% = $135,000 Second year: 30% = $90,000 Fifth year: 15% = $45,000 Infrastructure Improvements:
The City of Van Meter has committed to utilizing their General Obligation Bond capacity and their TIF ability to extend public utilities to the Site. This would include road, water and sewer improvements. In addition, the City has obtained a RISE (Revitalizing Iowa’s Sound Economy) grant to improve roads surrounding the Site. This grant program is through the Iowa Department of Transportation and can fund up to 80% of the needed road infrastructure to support the needs of the project.
Iowa Program Support:
Some programs through the State of Iowa require local government support through resolution. The City of Van Meter will support any application that requires their endorsement on behalf of a user.
Local Governance and Economic Development:
Local governance is the City of Van Meter, a mayor council government. The city website is located at http://vanmeteria.gov. Elected and staff officials for the City have expressed a high enthusiasm and commitment for bringing a data center project to Van Meter.
The City of Van Meter has the strong support of the Greater Dallas County Development Alliance, the Greater Des Moines Partnership and the Iowa Department of Economic Development. The Alliance is led by its Executive Director, Linda Jackson-Wunsch; Stacie LoVan represents the Greater Des Moines Partnership for data center projects; and Debbie Durham represents the Iowa Economic Development Authority. All participants bring a high level of professionalism and experience to their positions.
Biographies for the Van Meter governance and Dallas County economic development teams are located at Exhibit “E.”
25 Risks and Location to Infrastructure:
Flood Plain:
The closest mapped flood plain is located along the Racoon River and through the small drainage swale located in the City of Van Meter. The Site’s FEMA Flood Zone designation is “Zone X,” is one to two miles from the flood plain and is more than 100 feet above the 100 year and 500 year flood elevations.
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Tornados:
While Iowa does experience tornado activity, a very large majority (85%) of Iowa’s tornados are weak and classified at the low end of the Fujita Scale (F0 or F1). The map below depicts tornado activity in the United States.
(Source: Greater Des Moines Partnership)
Earthquakes and Rolling Blackouts:
In Iowa’s Midwest location, the State is statistically one of the safest areas in the United States. The map below demonstrates how Iowa is protected from earthquakes and rolling utility blackouts.
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Interstate Highway:
U.S. Interstate Highway I-80 is located 3.1 miles to the north of the Site. U.S. Interstate Highway I-35 is 8.6 miles to the east of the Site.
Railroads:
Iowa Interstate R.R. Ltd. operates a rail line one mile to the northeast of the Site. Iowa railroad maps may be viewed at: http://www.iowadot.gov/iowarail/railroads/maps/maphome.htm
Gas Transmission Pipelines:
According to the National Pipeline mapping system, one gas transmission line is located three miles to the west of the Site. No hazardous liquid pipelines are present in the area. Iowa pipeline maps may be viewed at: https://www.npms.phmsa.dot.gov/
Coal Mines:
Coal mining has previously occurred in much of the Greater Des Moines area. Upon reviewing information on former underground coal mining in the City of Van Meter and Dallas County, the Phase I ESA preparer for the Site concluded there is no evidence of former underground coal mining activity located on the Site.
Chemical Plants:
ChemTech, Inc. is a manufacturer of chemicals for construction, industrial cleaning, food processing, car wash, agricultural and waste treatment industries located in Adel, Iowa, approximately ten miles to the northwest. Several chemical manufacturers are located more than ten miles to the east in the Des Moines metro area, including Barton solvents, Helena Chemical and CSI Chemical.
Dams:
Three dams are located upstream from the Raccoon River in the Dallas County communities of Adel and Redfield. Iowa dam map and information is located at http://www.iowawhitewater.org/lhd/damsmap.html
Landfill:
South Central Iowa Landfill, Winterset is located 17 miles south of the Site. South Dallas County Landfill in Adel is located ten miles to the northwest of the Site.
Research Labs:
The nearest research labs are located 12 miles to the north of the Property in Dallas Center, Iowa. Hy-Line International conducts layer breeding research and Pioneer Hi-Bred conducts corn/soybean research.
Manufacturing Facilities:
There are no manufacturing facilities located within the City of Van Meter. Manufacturing facilities in Waukee and Adel are more than nine miles away.
Defense Plant:
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Military Base:
The Iowa National Guard, Camp Dodge, Johnston, Iowa, is located 23 miles to the northeast of the Site. Offutt Air Force Base in Nebraska is located 135 miles to the west of the Site.
Nuclear Plants:
Duane Arnold Energy Center, Palo, Iowa, is located 146 miles to the northeast of the property. Cooper Nuclear Station, Brownville, Nebraska, is located 120 miles to the southwest of the Site. Iowa Economic Development Authority Site Certification Program:
Program Summary:
On April 28, 2014, the Diligent Site was designated as a “Shovel Ready” site by the Iowa Economic Development Authority’s (IEDA) Site Certification Program. The program is administered through McCallum Sweeny Consulting, a worldwide focused site selection and consulting firm based in Greenville, South Carolina. The purpose of the program is to certify that participating sites are suitable for industrial and data center users and create “shovel ready” sites.
Criteria:
• Site Availability: The site must be available for sale with documentation of price, terms and availability
• Site Developability: The site must be a minimum of 250 contiguous acres, of which at least 80% of the acreage is developable. The following documentation will be obtained:
- Documentation of any known rights-of-way, easements, judgments, liens, restrictive covenants, and any other items that might impact the sites developability.
- Phase I Environmental Site Assessment with Phase II if appropriate. - A wetlands delineation
- Documentation identifying or excluding the presence of rare or endangered plant or animal species, and a plan for mitigation if appropriate.
- Documentation identifying or excluding the presence of archeological findings, historic sites or structures, and a plan for mitigation if appropriate.
- A geotechnical study documenting soil characteristics. - A topographic survey.
- An engineer’s cost and schedule estimate of the clearing, grubbing, and grading of a building pad on the site, assuming a graded pad of 500 by 750 feet.
• Flood Zone: The site must be located outside a 100-year Flood Zone. • Zoning: The site must be zoned or have the ability to be rezoned.
• Transportation: The site must be within 10 miles of an interstate four-lane highway. • Utilities: The site must be served sufficiently by electrical services and natural gas. • Water and Sewer: The site must be served by water and sewer infrastructure or have
engineering, cost and financing plans in place.
• Telecommunications: The site must be served by telecommunications infrastructure. • Site Concept: A site concept plan must be in place showing the potential building pad,
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DILIGENT DEVELOPMENT GROUP
Company Profile:
Diligent Development acquires, develops and manages investment grade real estate opportunities. Through a combination of direct ownership, private equity investment and joint ventures, Diligent has assembled properties surrounding the MidAmerican substation in Van Meter, Iowa. In addition to its efforts in Van Meter, Diligent is seeking real estate opportunities designed to meet data center site needs in other markets. Diligent welcomes opportunities to work in concert with economic development and industry officials in situations where private participation may be appropriate to advance objectives. Team Biographies:
Steve Bruere is a principal of Diligent and owner and President of Peoples Company. Since joining Peoples Company in 2003 and subsequently assembling a controlling interest, he has grown the company into one of the three largest land brokerages in the State of Iowa. Steve is a principal in several other real estate related companies.
Steve has a bachelor’s degree in Marketing from the University of Northern Iowa, where he now serves on the Advisory Council for the UNI Real Estate Program. He is a member of the Des Moines Area Association of Realtors, National Association of Realtors, Realtors Land Institute, Iowa Commercial Real Estate Association, and Professional Developers of Iowa. Active on several boards, he currently serves on the Strategic Advisory Board for the Iowa Secretary of Agriculture, the Executive Committee for the Warren County Economic Development Corporation, and is serving as President for the Iowa Chapter of the Realtors Land Institute.
Steve is active in economic development projects throughout Iowa and collaborates with local economic development organizations and governments to bring local development projects forward.
Dave Brown is a principal of Diligent and President and owner of IPE 1031, a qualified intermediary company assisting taxpayers with Section 1031 tax deferred exchanges. Since starting the company in 2003, IPE 1031 has grown into one of the largest independent provider of exchange services in the Midwest and one of the ten largest nationally within the Federation of Exchange Accommodators. Dave is actively engaged in several real estate investment projects.
Dave is a graduate of the University of Iowa College of Business and Drake University Law School. He is a member of the Iowa State Bar Association, where he served as Chair of the Tax Committee; the Federation of Exchange Accommodators, where he serves as Immediate Past President, on the Board of Directors and as Chair of its Ethics Committee; and the Realtors Land Institute. Prior to starting IPE 1031, Dave served as a state prosecutor. He holds the designation of Certified Exchange Specialist (“CES®”) and lectures on the subject of Section 1031 for events sponsored by the Iowa State Bar Association, Drake University Law School, the University of Iowa College of Law, the Realtors Land Institute, the Iowa Association of Realtors, and various other accounting, legal and real estate associations. Dave is a contributing editor to the Iowa State Bar Association Income Tax Manual.
Adam Pingel has been retained by Diligent as a consultant on the Van Meter project. Adam has extensive data center operations and software engineering experience. He has placed the Site in front of a number of key players in the industry and is cultivating several present opportunities.
Adam is from the Cedar Rapids, Iowa, area, but has lived in California for many years. After earning a BS in Computer Science from Stanford University in 1996, he joined the internet industry. He spent several years with Excite.com writing tools and automation for the Operations Group. This group managed explosive growth, which placed it as the third largest site on the internet by 1999. Excite built two datacenters and managed several sites on both coasts. In 2000, he joined NOCpulse, a startup that provided monitoring services to other large internet sites.
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In 2002, he entered the Computer Science PhD program at UCLA. While there, he continued consulting for large internet companies, working on projects including a large scale bandwidth management system in 2005. He left UCLA in 2009 with a MS in Computer Science to return to the San Francisco area as IODA’s lead systems engineer.
Adam holds three US Patents. He continues research into “Axle” -- a domain specific language for machine learning and other formal topics. More information is available at http://pingel.org.
31 EXHIBIT “A” SITE RENDERNINGS
34 EXHIBIT “B”
BOUNDARY SURVEYS AND TOPOGRAPHY MAPS
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37 EXHIBIT “C”
39 EXHIBIT “D”
46 EXHIBIT “E”
GOVERNANCE AND ECONOMIC DEVELOPMENT TEAM BIOGRAPHIES The City of Van Meter:
• Mayor Allan B. Adams: This is Mayor Adams’s first term as Mayor for Van Meter. Prior to his election, he served for six years on the Van Meter City Council. He has served on the Van Meter Economic Development Committee for the past five years and has demonstrated a high aptitude for guiding the City through public policy needs. Mayor Adams was involved in positioning a property within Van Meter as a leading candidate for a recent large scale data center project. Although the project finally located in another community, Van Meter was the only other City chosen as a finalist. This experience provided Mayor Adams with the ability to understand and create appropriate strategic partnerships needed to position the City as a leading candidate for future data center projects.
• Jake Anderson, City Administrator: As City Administrator for Van Meter, Jake’s forward thinking and drive to accomplish success was recently demonstrated by playing a pivotal role in the annexation of property under consideration for a data center project for the City of Van Meter. Jake has the vision and determination to do what is necessary to make a data center project a reality for Van Meter.
• Mayor Adams and Mr. Anderson will serve as primary contacts for projects needing government input. They understand the necessity of keeping all information confidential and out of the public realm until authorized and appropriate.
Greater Dallas County Development Alliance:
• Linda Jackson-Wunsch, Executive Director: Linda has been in the field of economic development for the past 25 years. Her expertise includes the following: financial incentive negotiations, grant writing and oversight of large projects while implementing a win-win approach to benefit both the City and Company. She is a Certified Economic Development Professional (CEcD) which is the highest designation in the field, as well as Economic Development Finance Professional (EDFP) and LEED Accredited Professional (LEED ® AP) specializing in new construction and redevelopment.
• Julie Einck, Project Manager: Julie has been in the field of economic development for the past ten years. Her expertise includes: project management with specific knowledge in data center project needs. She is a LEED Accredited Professional (LEED ® AP) specializing in new construction and redevelopment.
• Ms. Jackson-Wunsch and Ms. Einck will serve as primary contact for all Dallas County data center project needs. Additional support will come from other talented team members within the Alliance.
Veenstra & Kimm Engineering:
• Bob Veenstra, City Engineer: Bob Veenstra Jr., P.E. has served as City engineer for Van Meter since 2005. Veenstra has 35 years of experience working with Iowa cities as a project manager and as city engineer. In addition to providing City engineering services, Veenstra & Kimm, Inc. provides zoning compliance and building inspection services for the City of Van Meter.
• Bob serves as the primary engineering contact for data center projects with support from other Veenstra & Kimm, Inc. team members.