Quonset Business Park Port of Davisville

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1 Quonset Business Park Port of Davisville 2014 Annual Statutory Report 3,212 Total Acres Over 200 Companies More than 10,000 Jobs

2 Table of Contents 2. Background and Mission 3. Highlights 4. Key Statistics 5. Capital Improvements 6. Grant Funded Projects 7. Land Development Projects 8. Tenant Improvements 9. Tenant Improvements 10. Port Accomplishments Capital Improvements Other QDC initiatives 13. Quonset / Kiefer Park Map 14. Port / North Davisville Map 15. Gateway / Commerce Park Map 16. West Davisville Map 17. Challenges 18. Opportunities 19. Land Status Map 20. Site Readiness Map In December 2014 QDC was joined by a distinguished group of elected officials to celebrate a major milestone: the 10,000 th employee in the Quonset Business Park. 1

3 Background / Mission Background Quonset Development Corporation (QDC) is a quasi-state agency, established as a special purpose subsidiary of the Rhode Island Commerce Corporation (formerly the RI Economic Development Corporation) which is responsible for the development and management of the Quonset Business Park. QDC was created by the Rhode Island General Assembly on July 1, 2004 (RIGL ) and became effective through a transfer of powers on January 1, Land use at the Quonset Business Park is governed by a Master Land Use and Development Plan adopted by the QDC Board of Directors in October of 2008 and amended in 2010 and This document serves as the general guide for the continuing development of the site and related infrastructure improvements. In broad terms, QDC s development goals are as follows: Create additional jobs. Stimulate private sector investment. Create additional tax base. Mission QDC is a real estate development and management company responsible for developing and managing the Quonset Business Park in accordance with the QDC Master Land Use and Development Plan and in the best interests of the citizens of Rhode Island in order to attract and retain successful businesses that provide diversified jobs. 2

4 Highlights 10,000 th employee: In December, QDC, along with all of our top elected officials, celebrated a major milestone. There are now more that 10,000 full and part-time jobs in the Quonset Business Park, and increase of 500 jobs over last year. Electric Boat: As part of a major expansion program in support of the construction of the Ohio class replacement submarines, Electric Boat has begun construction on a 200,000 SF Automated Frame and Cylinder building on recently leased property in the Quonset section of the Park. First Lady Michelle Obama attends keel-laying ceremony as the sponsor of a new submarine. New tenants: Two food companies have signed long term land leases in the Commerce Park District. Greencore is a manufacturer of prepared foods and is building a new 107,000 SF facility to house 400 employees. Edesia makes a product to treat malnutrition and will soon begin construction on a 85,000 SF building which will house 75 new employees. Tenant expansions: Other tenants have continued to invest in major expansions and improvements at the Business Park, including NORAD, Ocean State Job Lot, and Supfina. Gateway Office Phase 2: QDC, with a private partner, has completed construction of a second multi-tenant office building in the Gateway. The space is now 100% leased. Port throughput: Auto imports have continued to grow, with 178,215 autos in 2014 and 2,870 tons of project cargo using the mobile harbor crane. Demolition completed: All of the former Navy buildings in Quonset and Davisville that were scheduled for demolition are now gone. This completes a multi-million dollar effort that began in 1980 consisting of 229 buildings (2.4 million square feet). The steam plant was the last one to be torn down which has greatly improved the view of the Park from Wickford and created a developable waterfront parcel.* 3 *Additional demolition occurred prior to Research is underway to quantify that effort.

5 Key Statistics Metric 2014 Notes Land Sold by QDC 0 acres QDC policy is to lease not sell - land Land Purchased by QDC 5 acres Property in West Davisville to serve as buffer Land Leased by QDC 31 acres Greencore, Edesia, NK Solar New Structures 340,000 SF Electric Boat AFC building, Greencore, NORAD, Mill Creek Marine, Gateway Office 2, and 6 others. Investment $85,000,000 Includes expansions and new companies (except Edesia). Job Growth 750 Park total of 10,284 jobs, up from 9,500 New Vehicle Imports 178,215 Plus an additional 32,502 domestic units that arrived by rail and 3,028 by truck Rail Cars 5,223 Of which 3,076 were auto racks Infrastructure Projects $2.1 million $7.8 million Grants Awarded $800,000 Completed Under construction Economic Development Administration grant for Terminal 4 and 5 Berths 4

6 Capital Improvements The following projects were completed in 2014 using QDC capital and operating funds unless otherwise noted: Steam Plant demolition - $300,000 Building 37 demolition - $340,000 Belver Avenue utilities and cul-desac construction - $438,000 Davisville Road drainage - $431,000 Capital maintenance projects - $746,000 total Pier 2 expansion joints Energy efficient lighting Crack sealing on roads Wastewater treatment facility Water system Steam Plant demolition 5

7 Grant Funded Projects The following grant-funded project was completed in 2014: Thompson Rd. Rail Crossing Improvements - $147,000 The following grant funded projects were begun in 2014: Roger Williams Way Crossings - $297,000 Zarbo Avenue Bulkhead Replacement - $7,500,000 Thompson Road Railroad Crossing with new active warning signals Zarbo Bulkhead Replacement new sheet piles 6

8 Land Development Projects The following land transactions were completed in 2014: Greencore lease*: 50 year lease of 15.1 acres for construction of a new 107,000 SF facility - currently under construction Edesia lease*: 25 year lease of 10.1 acres for construction of a new 93,000 SF facility New Greencore facility on Commerce Park Rd. Site Readiness Program 51 parcels (464 acres) are included in the Site Readiness Program. Eight parcels (76 acres) have been leased to date. See map on page 20. NK Solar lease*: 15 year lease of 5.4 acres for construction of a new ground mounted solar array (495 KW) Purchase of 5 acres in West Davisville to serve as a permanent buffer between proposed industrial development and proposed residential development *Site Readiness parcels 7

9 Tenant Expansions / Improvements The following tenant expansions were completed in 2014: Toray Co-Generation project MW of new natural gas fired power generation for on-site consumption Supfina expansion -- 20,000 SF addition (manufacturing space) in Kiefer Park Bank Newport new 2,200 SF retail branch in Gateway District All American Solar 330 kw rooftop array NORAD Security Building (1 of 3) NORAD three new guard houses (1,300 SF total) Mill Creek Marina 1,600 SF office expansion Well One 2,000 SF health and dental clinic expansion Fresh Wave Frozen Yogurt - new retail tenant in Gateway Shops Crestwood new 1,000 SF office and propane storage facility in the Commerce Park District The Landings at Quonset 7,200 SF hangar completed on airport property (first building of multi-phase project) The Landings at Quonset 8

10 Tenant Expansions / Improvements The following tenant improvements are currently under construction: Electric Boat AFC building 200,000 SF building for manufacture of Ohio Class Replacement submarines NORAD Parts Warehouse 35,000 SF building in the Port of Davisville Spec building 42,000 SF of flex industrial space in Commerce Park District Gateway Office Building - Phase 2 Gateway Office Phase 2-12,425 SF of multi-tenant office space (fully leased) Supfina office expansion - 2,500 SF addition in Kiefer Park 9

11 Port Accomplishments 2014 was another record breaking year at the Port with 178,215 new auto imports, plus an additional 32,502 units that arrived by rail, and 3,028 by truck for a total of 213,745 autos processed Addition of Honda to current imports of Volkswagen, Audi, Subaru, Porsche, Bentley, and Ford 166 ships -- A direct benefit of the 2013 dredging project that allows ships to come in more fully loaded than previous years Moved 3,844 tons of project cargo with mobile harbor crane (2,870 tons across the dock) Arrival of first shipment of Hondas Lumber off-loading with Mobile Harbor Crane 10

12 2015 Capital Improvements Going forward, QDC will continue to make strategic investments in infrastructure and to aggressively pursue grants in that regard. Zarbo Avenue Bulkhead Construction funded by $6 million EDA grant and matched by $1.5 million in QDC funds. Construction began in Terminal 4 & 5 bulkhead cap and marine hardware - funded by $800,000 EDA grant and matched by $800,000 in QDC funds. Athletic fields in North Davisville funded by a $400,000 RIDEM Recreation Grant to the Town of North Kingstown with a $200,000 match from the Town and $200,000 from QDC. Dredging of small boat basin and Quonset waterfront part of a joint effort by QDC and CRMC to economize on design, sediment testing, and permitting*. Dredging funded by RI Fast Ferry and Electric Boat. * CRMC plans to dredge the Port of Galilee T5 T4 Terminal 4 and 5 project will add bulkhead cap, cleats, bollards, and fenders. 11

13 2015 Other QDC initiatives Continue Site Readiness Program: add additional parcels to the program if appropriate Pursue Marine Highway Container Service and other project cargo Update Master Land Use and Development Plan and Development Regulations (began in 2014) Streamline Environmental Review Form process (began in 2014) Purchase additional buffer property in West Davisville to avoid future conflicts between residential and industrial development Two car ships delivering finished automobiles at the Port of Davisville 12

14 Quonset / Kiefer Park Map Toray CoGen 2 Belver Ave. utilities and cul-de-sac ANG flight simulator Rail crossing improvements EB AFC building GA hangars (RIAC lease) Supfina factory expansion Steam plant demolition Supfina office expansion Dominion expansion Dredging Zarbo Bulkhead Reconstruction Project completed in 2014 Project ongoing in

15 Port / North Davisville Map North Davisville recreational fields Mill Creek Marine expansion Site 16 clearing NORAD Parts Warehouse Pier 2 expansion joints Rail crossing improvement T4 and T5 berths Project completed in 2014 Project ongoing in

16 Gateway / Commerce Park Map Bank Newport branch Gateway Office Phase 2 NK Solar Edesia new facility Freshwave Frozen Yogurt Greencore new facility Davisville Road drainage improvements Crestwood propane distribution Job Lot site work; Building 37 demolished Well One addition New spec building Project completed in 2014 Project ongoing in

17 West Davisville Map All American rooftop solar Purchase of 5 acres of buffer property Purchase of additional 5 acres of buffer property NEO Energy Biodigester Project completed in 2014 Project ongoing in

18 Opportunities Site Readiness: Pre-engineered and prepermitted parcels ranging from 2 to 60 acres and a streamlined development process are a tremendous opportunity and a proven method to attract new companies and create new jobs. Mill Creek Marine Port and Rail Traffic Growth: The auto importing and processing business has grown substantially in the last year with the arrival of Hondas. Import of vehicles to Canada via rail is an opportunity that QDC is pursuing as well as export of US made vehicles. The crane represents a lifting asset that will allow us to attract other types of cargo. Wind Energy: There is potential for an infusion of jobs and activity here at Quonset through Cape Wind and Deepwater Wind both of which hold options on land for the staging of off-shore wind farm construction. 17 Crane on Quonset waterfront

19 Challenges Port terminal space: Davisville is a small but active Port with car ships (3-4 per week), fishing trawlers, and the NOAA vessel. QDC is also actively pursuing container barge service and project cargo. Incorporating a massive project like Deepwater Wind may present operational challenges and competition for laydown and berthing areas. We continue to work with all port users to accommodate all of the port activities. Environmental remediation at both Quonset and Davisville is ongoing and is performed to commercial/industrial standards. Different parties are responsible for remediation based on the different base closure rounds. Opportunities to develop North Davisville have been and will continue to be delayed by the slow pace of Navy remediation activities and meeting requirements of EPA and RIDEM. As this land cannot be transferred to the QDC until remediation is substantially complete, it is currently still owned by the federal government. Regional transportation issues: As employment continues to grow, we are cognizant that transit may play an increasingly larger role for commuter transportation. Future construction of the deferred Route 403 ramps and the Route 4 / Interstate 95 interchange will be beneficial for both freight and passengers. QDC continues to work with our state and federal partners to ensure safe and uninterrupted rail service. Weight restrictions on bridges in Massachusetts, height restrictions on new taller auto racks, HAZMAT restrictions in Providence, and freight scheduling windows on the Northeast Corridor are manageable now but we will continue to monitor these issues. Water source: The Quonset Development Corporation pumps water for the Business Park from the Hunt River Aquifer. The Park is the third largest user of that aquifer, trailing the Kent County Water Authority and the Town of North Kingstown by a wide margin. QDC continues to work with the Town of North Kingstown and the Kent County Water Authority to ensure conservation and wise management of the Hunt River aquifer. Continued efforts to conserve water and the development of additional sources will aid in the future economic growth both at the Business Park and of the Kent and Washington County regions. 18

20 Land Status Map 19

21 Site Readiness Program 20

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