Why Should You Pursue Investing in Indiana, U.S.A. Now?

EWEC 2010 Warsaw
Europe’s Premier Wind Energy Event
Why Should You Pursue Investing in Indiana, U.S.A. Now?
By:
Frank A. Hoffman, Esq.
Krieg DeVault LLP
12800 N. Meridian Street, Suite 300
Carmel, Indiana 46032 USA
(317) 238-6240 (Direct)
(317) 636-1507(Fax)
(317) 750-6625 (Mobile)
[email protected]
By:
Mathew E. Conrad, Esq.
Krieg DeVault LLP
12800 N. Meridian Street, Suite 300
Carmel, Indiana 46032 USA
(317) 238-6326 (Direct)
(317) 636-1507(Fax)
(317) 407-8686 (Mobile)
[email protected]
April 20, 2010
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Why Should You Pursue Investing in Indiana, U.S.A. Now?
Presentation Purpose: To communicate to you that at this moment
when one balances current improved economic conditions, continuing
government support through economic development incentives and
pending legislative policy for the Wind Industry, there is no better time
than now to pursue Wind Energy Turbine and Component Part
Manufacturing in Indiana, U.S.A.
To access this Presentation and related source materials, go to:
http://www.kriegdevault.com/events/221.html
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Bio – Frank A. Hoffman
Frank A. Hoffman is a partner in the law firm of Krieg DeVault LLP located in Indianapolis, Indiana with offices in Chicago, Illinois
and Atlanta, Georgia (www.kriegdevault.com). He concentrates his practice in creative and complex federal, state, and local
incentive-based financing transactions and closely-held business organizations. Mr. Hoffman presently co-chairs the Firm’s
efforts to implement The American Recovery and Reinvestment Act of 2009 (“ARRA”).
Tax Incentive Financing Experience
• Created the New Markets Tax Credit Program for the Indiana Bankers Association and its 180 member banks - 2004 $50
million Allocation
• Assisted in the creation of the New Markets Tax Credit Program for the city of Fort Wayne – 2008 $15 million Allocation
• Assisted in the creation of the New Markets Tax Credit Program for the town of French Lick and seventeen (17) participating
southern Indiana counties – 2009 $50 million Allocation
• Represents ten (10) other Indiana units of government developing new market Tax Credit Programs
• Combined Indiana CRED Credit, Local TIF Bond and NMTC to fund $5.5 million start-up manufacturing plant (Marion, Indiana)
• Combined local TIF Bond and NMTC to fund $20 million hotel/indoor waterpark facility (French Lick, Indiana)
• Closed over $150 million in NMTC financing (2004 to present)
• Created the Wind Energy Manufacturers Associations, Inc. to attract capital investment under ARRA to Indiana in 2009
• Obtained over $28 million in ARRA economic development incentives and $53 million in permanent financing for Indiana startup wind turbine component part manufactures since February 2009
Education
DePauw University
Indiana University School of Law
Admitted to Indiana Bar
B.A., (Economics), June, 1979
J.D., (Taxation); January, 1982
1983, Indiana
Birth Place: Evansville, Indiana, September 1, 1957
High School: Andrean Catholic High School, Merrillville, Indiana; 1975
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Bio – Matthew E. Conrad
Matthew E. Conrad is an attorney with the law firm of Krieg DeVault LLP located in Indianapolis, Indiana with
offices in Chicago, Illinois and Atlanta, Georgia (www.kriegdevault.com). He concentrates his practice in the
areas of financing transactions (including tax incentive based financing), real estate and mergers and
acquisitions. Mr. Conrad represents numerous community development entities and assists with the deployment
and administration of a multi-million dollar federal tax credit allocation.
Education
Taylor University
Indiana University School of Law
Admitted to Indiana Bar
Admitted to Florida Bar
B.A., (Finance and Accounting), 2000
J.D., 2002
2002
2003
Birth Place: Berne, Indiana
High School: South Adams High School, Berne, Indiana
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Why Focus on Indiana U.S.A.?
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Focus on Indiana
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Part of the Midwest – 12 States
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Midwest – Two Regions
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Comparison by Population, Land Mass and Density
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Indiana “On Land” Wind Potential – Only 14th In The U.S.
With 148,228 MW Rated Capacity
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Indiana Offshore Potential – Access to the Great Lakes With
Over 245,200 KM2 and More
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Off-Shore Development Potential Also Increases
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Indiana’s Business Environment
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Indiana offers a low-cost, pro-business environment,
and a highly skilled, educated and capable workforce
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Indiana is the most manufacturing-intensive state in
the nation with proven capability in metal fabricating
and precise manufacturing – over 25% of GDP
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High productivity, excellent logistics and an attractive
business climate make Indiana a central location for manufacturing in the
U.S.
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Indiana has a “Triple A” Bond Rating by Standard & Poor
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Foreign Direct Investment
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More than 15,800 new jobs and $8
billion investment since 2005
(Germany = 2,108 jobs, $563 million
investment)
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First in North America for attraction
of production jobs through FDI
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Focus on Asia, Europe creating new
jobs for Hoosiers
No. 1 per capita in Japanese
investment including
Subaru/Toyota/Honda
ƒ
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Indiana is a global leader in clean energy innovation
•
the largest wind farm east of the Mississippi River
•
the world’s first full-scale clean coal power
plant under construction in Knox County
•
the nation’s largest geothermal heating
and cooling system underway in Muncie
•
Green tech companies like Horizon Wind Energy,
BP America, Dominion, Fairfield Manufacturing Co.,
ATI Casting Service and Brevini Wind USA are all
located in Indiana
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Wind Industry in Indiana
•
•
•
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Proven capability in metal fabricating,
abundant low-cost power, and
engineering expertise for wind power
development
According to AWEA – Fastest-growing
state for wind energy installations in the
U.S.
Ideally positioned for delivery to major
markets through our robust
transmission grid
No. 1 in the industrial Midwest in job
growth in the clean energy economy
between 1997 and 2008 (The Pew
Charitable Trusts, June 2009)
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Recent Wind Energy Announcements
•
Brevini USA – Manufacturer of planetary gear boxes
selected Yorktown, IN for first U.S. manufacturing
operation. 455 new jobs, $63 million capital investment.
•
VAT Service/VAT Energies – A service division for wind
turbine gear boxes and manufacturer of vertical vane
turbines selected Yorktown, IN for first U.S. operation.
121 new jobs, $3.3 million capital investment
•
BP’s Fowler Ridge Wind Farm in Benton County
is the largest wind farm east of the Mississippi.
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Integrated Micro-grid: Resource Energy Efficiency Network
DoD is 56% of Federal Government’s energy consumption with more than 3.8 billion kilowatt‐
hours of electricity annually. 2008’s Defense Science Board Task Force directs that all DoD
installations be able to operate independently from the macro grid when needed.
MicroGreen will integrate the entire spectrum of capabilities needed to generate, store & manage intelligent power employing alternative and conventional power technologies for fixed, mobile, and emergency needs using a micro‐grid as the scalable delivery platform.
The collaborative nature of this partnership will deliver turn‐key style solutions for defense and commercial markets that provides three strategic advantages‐
•
•
•
seamless integration
scalable, replicable, and customizable solution up to 10 megawatts
cost effective
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Hoosier Heavy Hybrid Partnership is a cooperative effort which seeks to commercialize more cost effective, higher‐performance, and better
integrated hybrid vehicle components and powertrain systems for light, medium, and heavy duty vehicles. 100 percent of the increase in transportation fuel consumed in the US since the 1973 Arab Oil Embargo has been due to trucks. Additionally, medium and heavy duty trucks produce significant emissions and often operate in non‐attainment zones. By developing scalable technologies for hybrid components and systems, the partnership will deliver products that dramatically reduce fuel consumption and emissions in order to meet one of America’s greatest challenges.
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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First of its kind commercial scale pilot of plug‐in electric vehicles (PEVs) and smart grid technology working together to demonstrate a transportation energy system solution for the Indianapolis area
The pilot spans the service territories of two regulated utilities and included the development of a model regulatory framework and network architecture needed to take smart grid and plug‐in systems to scale. Our plug‐in ecosystem provides an optimal test bed for accelerating the commercialization of plug‐in technologies on the vehicle side, grid side, and in‐between. The Indianapolis area is an ideal location for Project Plug‐IN because it is approximately 20 miles from all suburbs to the city center (ideal for current battery range) and has no mass transit system. Moreover, Indianapolis is hosting the 2012 Super Bowl where our plug‐in ecosystem can be showcased on a global scale. Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Executives Rank Indiana Best
First in the Midwest •
2009 Best Places for Business survey of more than 500 chief executives
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Best in Midwest for Low Taxes
Indiana – 14th
Iowa – 44th
Illinois – 23rd
Missouri – 16th
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Indiana’s Transportation System
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“Crossroads of America” – 11,000 total
highway miles,
8 interstate highways
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Rail System – 4,700 miles
of mainline track
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Port System – 3 international ports on 2
major inland waterways
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Air – 4 international airports
(Indianapolis, Fort Wayne,
Terre Haute and
Gary/Chicago)
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Indiana’s Transportation System
Indiana is located within a half‐day’s drive of more than 20 major metropolitan markets.
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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PORTS OF INDIANA
Connecting Indiana to the World
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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A statewide system of ports
at the Crossroads of America
Port of Indiana
Burns Harbor
Port of Indiana
Jeffersonville
Port of Indiana
Mount Vernon
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Crossroads of America’s Waterways
“Hwy H20”
Great Lakes
provide
international
ship access to
Heartland
Inland river system spans 12,000 miles &
serves 38 states
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Crossroads of America’s Rail Network
•
Indiana hauls more metals by rail than any state
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Crossroads of America’s Highways
•
Indiana ranks 1st in # of passpass-through interstates
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Crossroads of America’s Population
•
Indiana is home to Median Center of US population
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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What do Indiana’s ports offer?
•
•
•
•
•
•
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800 acres of available land
Onsite rail, road, barge, ship connections
Primary infrastructure already in place
Facilities handle $1.5B in shipments / year
Foreign-trade zones
60 onsite companies & service providers
Potential synergies w/ current port tenants
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Foreign-Trade Zones
Enhances global competitiveness of large and
small companies
Can reduce, postpone or eliminate U.S. duties
until final product leaves zone
Goods in FTZs can be:
• Stored
• Assembled
• Manufactured
• Processed
• Repackaged
• Destroyed
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Port Steel Synergies
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Full Service Dock Operations
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Capacity for Oversize Loads
•
No weight or size restrictions on port roads
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Moving Wind Turbines by Ship
•
Indiana’
Indiana’s Lake Michigan port handles wind turbines shipment from Europe
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Moving Wind Turbines by Barge
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Why ship by barge?
Efficiencies reduce freight costs
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Ports of Indiana
3 ports – 2 waterways – 1 system
Duluth, MN
Sioux City, IA
Burns Harbor
Mount Vernon
Jeffersonville
Muskogee, OK
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Port of Indiana-Jeffersonville
Port of Indiana‐Jeffersonville
Barge Transit Time
to New Orleans: 12 days
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Port of Indiana-Jeffersonville
Available Land & Rail Connections
Rail Track
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Port of Indiana-Mount Vernon
Port of Indiana‐Mount Vernon
Port of Indiana
‐
Mount Vernon
th
8 largest inland port by ton-miles
Barge Transit Time
to New Orleans: 8-10 days
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Port of Indiana
Mount Vernon
Available Land &
Rail Connections
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Port of Indiana-Burns Harbor
600 acres (85 available)
28 companies – 14 steel related
150 ships & 400 barges per year
Located next to 2 steel mills
Foreign-Trade Zone
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Port of Indiana-Burns Harbor
Available Land & Rail Connections
Rail Track
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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Thank you.
For more information visit
www.portsofindiana.com
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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KRIEG DEVAULT OVERVIEW
•
•
•
For clients throughout the Midwest and across the country, Krieg DeVault provides clear, practical
legal advice that takes in the big picture without losing sight of the details. That's how we approach
your legal challenges and how we deliver solutions that are focused on your needs, your business
and your world.
While much has changed since Krieg DeVault's founding in Indianapolis, over 130 years ago, our
commitment to listening to our clients has not. Client satisfaction and loyalty have allowed us to
grow from a two-lawyer general practice in the mid-1870s to our current status as a premier
business-focused law firm. From offices that reach from the nation's heartland to the Sun Belt, we
are ideally positioned to serve the needs of our diversified client base.
Financial institutions, global manufacturers, national healthcare providers, successful organizations
of various sizes and market focus, as well as individuals all rely on us for solutions that create
success. They know their important cases, sophisticated transactions, and complex business issues
require the big picture approach that has become a Krieg DeVault hallmark.
"Clients expect us to help them achieve their goals. They entrust us with their most
important legal matters. At Krieg DeVault, we never take that trust for granted. We
learn our clients' businesses; we communicate openly, we follow up frequently; we
respond timely; and we are always available. In short, we develop a relationship
with our clients. Our clients' goals become our goals.“
Michael E. Williams, Managing Partner
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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KRIEG DEVAULT GLOBAL AFFILIATION
Meritas. Law Firms Worldwide.
No matter what their legal needs, we can ensure that our clients are well represented in jurisdictions
around the world thanks to Krieg DeVault’s invitation-only affiliation with Meritas. One of the world’s
largest and most respected legal resources, Meritas is an integrated, non-profit alliance of more than
170 independent commercial law firms located in over 60 countries. That means no fewer than 6,500
experienced lawyers are available to our clients worldwide.
Unsurpassed Advantages
As a Meritas member, Krieg DeVault can offer our clients a wealth of advantages not available through
even the largest multinational law firms. Meritas member firms, including our own, must meet rigorous
service standards and undergo regular recertification to ensure that all client inquiries are answered
within 24 hours, to demonstrate compliance with the highest ethical and client satisfaction benchmarks,
and to provide alternative dispute resolution options. Member firms are linked by common technology
platforms to facilitate cross-border teams, and comprehensive databases provide information on lawyer
capabilities and firm client evaluations.
International Perspective
Meritas members invest in improving services and resources rather than opening costly branch offices.
All Meritas firms offer the full complement of litigation and corporate services necessary to handle
business matters in any industry. Since Meritas firms are well established in their local markets, our
clients have the advantage of a legal partner who knows the nuances of local legal procedures and
business customs. When combined with the international perspective of our firm’s own lawyers (who
handle multinational matters ranging from dispute resolution to energy and financing transactions), Krieg
DeVault’s participation in Meritas gives our clients the global resources they need, coupled with the
value and service they want.
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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KRIEG DEVAULT LOCATIONS
Working Where Clients Need Us
Krieg DeVault lawyers are at work where our clients do business, in major urban centers and dynamic smaller communities
throughout the Midwest and Southeast. Some of our offices offer a broad range of legal services, while others are more
focused on specific legal needs. They all, however, reflect the firm's commitment and capabilities for achieving solutions to
real-world legal issues.
Indianapolis Office
One Indiana Square
Suite 2800
Indianapolis, IN 46204-2079
P: (317) 636-4341
F: (317) 636-1507
Carmel Office
12800 North Meridian Street
Suite 300
Carmel, IN 46032-9422
P: (317) 566-1110
F: (317) 636-1507
Noblesville Office
949 E. Conner Street
Suite 200
Noblesville, IN 46060
P: (317) 773-7818
F: (317) 773-7918
Schererville Office
833 West Lincoln Highway
Suite 410W
Schererville, IN 46375
P: (219) 227-6100
F: (219) 227-6101
Mishawaka Office
4101 Edison Lakes Parkway
Suite 100
Mishawaka, IN 46545
P: (574) 277-1200
F: (574) 277-1201
Chicago Office
30 North LaSalle Street
Suite 3516
Chicago, IL 60602
P: (312) 423-9300
F: (312) 423-9303
Atlanta Office
1230 Peachtree Street NE
Suite 2490
Atlanta, GA 30309
P: (404) 607-0600
F: (404) 665-3628
Boca Grande Office
431 Palm Avenue
P.O. Box 1911
Boca Grande, FL 33921
P: (941) 964-0018
F: (317) 636-1507
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
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