1. Entergy Teamwork Arkansas Annual Luncheon February 9, 2005 Automotive Site Selection Process Presented by Dr. Buzz Canup Canup & Associates, Inc. Presented by Dr. Buzz Canup Canup & Associates, Inc.

2. PHASE I: MACRO ANALYSIS PHASE 0: PRE- PROJECT ANALYSIS PHASE II: MICRO ANALYSIS PHASE III: FINAL NEGOTIATIONS Location and Site Selection A SYSTEMATIC AND PROVEN PROCESS

3. EVERY ECONOMIC DEVELOPMENT PROJECT IS DRIVEN BY A “NEED!” THE “NEED” ESTABLISHES PROJECT CRITERIA

4. TWO TYPES OF PROJECT CRITERIA “MUSTS” AND “WANTS”

5. “Must” Criteria Criteria 1. Property Size 2. Rail Available 3. Airport - 1 hour 4. Water Available 5. Gas Available Yes No Yes Are absolute for success Can not be compromised Go/No Go Screen Alternative Eliminated

6. “WANT” CRITERIA IMPORTANT!!! BUT NOT ABSOLUTE Willing to concede in one area to gain in another Criteria 1. Labor Size 2. Operating Cost 3. Logistics Cost 4. Incentives 5. Competitor Locations 10 9 8 7 6 5 4 3 2 1 MostLeastImportant

7. Typical “Musts” for Assembly Plants Labor Competitor Location Avoidance Transportation Site & Infrastructure Air Quality Status

10. Typical “Wants” for Assembly Plants Recruitment & Training Acceptable Recurring Costs Acceptable Investment Costs Risk Minimization Competitive Incentives

11. The Cold Hard Facts About Site Location Searches DEFINE DELINEATE DISCRIMINATE Eliminate

12. Evaluating MEGA Project Sites What Is the Objective? Eliminate? Define How to Make it Work? Spend Whatever It Takes?

13. SITE CONSULTANT’S JOB: FIGURE OUT WHY A SITE WILL NOT WORK ECONOMIC DEVELOPER’S JOB: FIGURE OUT HOW TO MAKE THE SITE WORK

14. Typical Site Factors Size, Configuration & Control Environmental & Geotechnical Conditions Utilities, Zoning & Neighboring Land Use Ingress & Egress

18. NISSAN & MISSISSIPPI AN EXAMPLE OF A MEGA PROJECT SUCCESS STORY

19. NISSAN $930 M Investment 4,000 Jobs 1.5 M Sqft Facility 250,000 Vehicles/Year MISSISSIPPI $295 M Investment Infrastructure Pad Ready Site Custom Incentives The Commitments Phase I Announcement November 9, 2000

20. The Commitments Phase II-A Announcement June 24, 2002 NISSAN $500 M Investment 1,300 Jobs 1.0 M Sqft Addition 150,000 Vehicles/Year MISSISSIPPI $68.5 M Investment Infrastructure Upgrades Site Development Grant Extended Incentives

21. Total Commitments Phase I & II-A NISSAN $1.43 Billion Investment 5,300 Jobs 2.5 M Sqft Facilities 400,000 Vehicles/Year MISSISSIPPI $363.5 M State Investment $ 24.6 M Federal Highway Funds $ 17.0 M Federal Highway Funds $ 20.0 M County Investment $415.1 M Total

22. Mississippi Investments by Category Category Phase I Phase II-B Totals Site & R-O-W Acquisition$40.0 $0.0 $40.0 Site Development$40.0 $15.0 $55.0 Roads & Highways$30.0 $2.0 $32.0 Water, Sewer, Gas Pre-treatment $42.0 $18.0 $60.0 Transportation Cost Off-set$28.0 $10.0 $38.0 Recruit & Training$80.0 $23.5 $103.5 University – CAVS$28.0 $0.0 $28.0 Advertising & Marketing$5.0$0.0 $5.0 Administration & Miscellaneous$2.0 $0.0 $2.0 Totals$295.0 $68.5 $363.5 Totals$295.0 $68.5 $363.5 Federal Highway Funds$24.6 $17.0 $41.6 County Bonds$20.0 $0.0 $20.0 Grand Totals$339.6 $85.5 $415.1 Grand Totals$339.6 $85.5 $415.1

23. NISSAN PHASE I BREAK EVEN A break-even point during 2007… when revenues of the project exceed cost to the State A break-even point during 2007… when revenues of the project exceed cost to the State $ $

24. TOTAL TAXES TO MISSISSIPPI 2005$ 63,390,040 2010$258,971,506 2020$727,629,412 By 2025, a total of nearly $1 billion in quantifiable taxes will have been contributed to the state treasury by Nissan Phase I. NISSAN PHASE I REVENUES

25. Questions & Answers