Lima Technology Center. A home for business. A haven for life. A 485-hectare modern industrial park in the province of Batangas, Philippines.
Characteristics of an Industrial Site
The following criteria provide general guidelines to assist community officials and leaders in evaluating the ability of their community to meet some basic foundations required for the creation of an industrial site.
Zoning
Industrial firms desire to locate in zoned areas. Officials of industrial firms want to be good neighbors in the community in which they locate and, similarly, to assure that in the future good neighbors will also locate near their facility. Zoning assures that a firm is locating a facility in the area of the community where public officials and residents desire industrial activity. Industrial firms seek locations that cause the least inconvenience for residential and commercial areas.
Highway Access
An industrial site should be located adjacent to a state highway, preferably within ten miles of a four-lane highway. When an industrial firm locates near a state highway they are assured access to a road constructed for tractor trailer use. If a community chooses to develop an industrial park, rather than a single industrial site, then it is important that the road going through the park has two access points to the state highway. Two access points guarantee that a firm locating in the industrial park will always have usable access and egress in case of an emergency. For example, if a vehicle accident should block one of the access points, the industrial firm can still meet it's shipping schedule through the other access point.
Topography and Soil Conditions
Topography of the site is also an important factor. Companies usually seek fairly level sites with adequate drainage to avoid standing water. Depending on a firm's desire for aesthetic considerations, a gently sloping site may be attractive. Once again, in considering topography a firm is trying to decrease the cost of site work. If a community is located in a hilly region it is still possible to find an acceptable site by laying out a plan that locates the firm on a plateau or terraced section of a hill. This could be very attractive, particularly if the community takes into consideration easy access and high visibility potentials.
Ownership
The organization representing the community should have a written option or some legal form of site control assuring that the property can be purchased for the asking price. The purchase price should be set at a figure that reflects the regional "fair market value" for industrial land. In addition to price, other details should be clearly stated, including available date of transfer, who pays transfer fees, closing costs, legal fees, and current agricultural use value recoupment tax costs if the land is presently in agricultural use. If the property is currently used for growing crops, clearly state the standards for calculating crop damage costs and identify who is responsible to pay those costs.
Utilities
Utility standards are determined by the size of the site and its proximity to utility supplies.
Incentives
Usually in the first phase of an industrial firm's site search, executives will ask if tax incentives are available. To be competitive, a community should have an enterprise zone established that includes the industrial site the community wishes to promote. An enterprise zone allows the local political jurisdiction to negotiate a tax reduction on real and personnel property taxes for improvements to the industrial site. The legislative body of the effected local political jurisdiction needs to enact the necessary legislation before the industrial site is promoted. It is also helpful if the effected legislative body has established some general guidelines for the percentage and length of time an industrial firm can expect as an incentive based on the firm's investment.
Additional Studies
A phase-one environmental site assessment should be completed. An industrial firm needs this information to secure financing and to assure the absence of environmental issues regarding the site.