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When Mercedes-Benz embarked upon its site selection project for establishing
a manufacturing facility in the United States for production of its M-Class
SUV, it retained Kelley Drye to provide legal assistance to its team charged
with implementing the project. Our retention was at an early stage, when at
least sixteen sites in as many states were under consideration. Kelley Drye
lawyers worked with the Mercedes-Benz site selection team in the analysis of
various legal issues and participated in preliminary meetings with representatives
of the various states. Thereafter, our lawyers assisted in the direct negotiations
and preparation of agreements with the final three states under consideration
(Alabama, North Carolina and South Carolina). This project resulted in Mercedes
receiving, from Alabama, the largest incentive package ever obtained for a new
manufacturing facility in the United States. The facility, which has been producing
vehicles since May 1997, employs more than 2,500 people and is presently being
expanded for anticipated production of another vehicle.
When the Boeing Corporation began its site selection process in conjunction
with its plans to build a new manufacturing facility for its Delta IV Common
Booster Core Rocket, it retained Kelley Drye to provide legal assistance to
its project team. Our lawyers assisted in the negotiation and drafting of agreements
with the three final states under consideration (Alabama, Florida and Mississippi)
which resulted in Boeing receiving an incentive package valued in excess of
$100 million from the State of Alabama. Boeing's facility involved capital expenditures
in excess of $450 million for a plant providing more than 2,000 jobs.
IPSCO Steel Corporation, a Canadian corporation, headquartered in the Chicago
area, retained Kelley Drye to assist its project team in connection with the
company's plans to locate and build a $450 million steel mill in the Southeastern
United States. Again, Kelley Drye lawyers provided legal assistance to the project
team and assisted in the negotiation and drafting of agreements with the three
states under consideration (Alabama, Mississippi and Texas). IPSCO eventually
determined to locate its new facility in Mobile, Alabama. The project received
an incentives package valued in excess of $80 million. The steel mill now provides
more than 500 jobs.
The foregoing projects are representative of our practice in the site selection
area although we have represented clients on many other similar matters and
have, on occasion, provided advice directly to state economic development groups.
Our experiences with Mercedes-Benz, Boeing and IPSCO projects are unique in
that, prior to such projects, we did not have any professional relationship with
these companies. Given the tremendous importance of each of these projects,
decisions were made to retain our firm because of our specific expertise in
site selection projects. In each of these instances we assisted the respective
project teams in both concluding their projects within their anticipated time
frames and in obtaining their targeted incentives pursuant to agreements which
were comprehensive and legally enforceable.
Our lawyers involved in site selection projects are experienced with, and up
to date on, the many legal issues relating to site selection, available incentives,
negotiating techniques and those practical and political aspects which particularly
relate to the requirements of large scale projects. We maintain close working
relationships with law firms in many states and in Canada and Mexico, which
allow us to have prompt access to local information and to provide coordinated
"one stop shopping" during the site selection process. Our clients
have found these relationships to be valuable in both the expeditious implementation
of their projects and in controlling legal costs.
For further information about Kelley Drye's Site Selection Practice Group, please contact:
George J. Marchese
(212) 808-7651
gmarchese@kelleydrye.com
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