Florida Brownfields Association

Presented by: Michael Maier

Real Estate Manager, Southeast US

IKEA: Inside the Numbers

  World’s leading home furnishings company
  Still privately held; still based in Sweden
  565 million people visited IKEA in 2008
  Global sales for 2008: $31 billion
–  Germany: 16%
–  U.S.: 10%
–  France: 10%
–  U.K.: 7%
–  Sweden: 6%
  U.S. sales for 2008: $3.16 billion
  Recent focus has been on expansion in U.S.
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 Where We Are:
Countries with IKEA Stores
  Australia   France   New Zealand *   Sweden
  Austria   Germany   Norway   Switzerland
  Belgium   Greece   Poland   Taiwan
  Bulgaria *   Hungary   Portugal   Turkey
  Canada   Iceland   Romania   Ukraine *
  China   Ireland   Russia   United Arab Emir
  Croatia *   Israel   Saudi Arabia   United Kingdom
  Cyprus   Italy   Serbia *   USA
  Czech Rep.   Japan   Singapore
  Denmark   Kuwait   Slovakia
  Domin. Rep. *   Malaysia   Slovenia *
  Finland   Netherlands   Spain

(* = new country with store opening planned) 3

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Existing and Future Stores

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 Site Requirements for IKEA

  New Stores are between 350 – 400k SF

  Prototypical store design.
  Parking at 4.5 / 1,000 SF.
  Land area ranges from 15 – 30 acres
  Direct highway access and visibility
  Major markets with 2 million
population
  Draw 80% within 60 minute drive-time

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Why Tampa?

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The Location of IKEA Tampa

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IKEA
Project

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 December 2007

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Transaction Timeline
  March 2007: IKEA places property under
contract
•  Due Diligence begins; tight timeframes to satisfy closing
conditions and to build and open the store
  April 2007: Existing and open
environmental
SRCO (solvent area) being
handled by DEP
  May 2007: Phase I and II identify
contaminants
(soil & groundwater)
  June 2007: Initial discussion with the City of
Tampa re: brownfield
inclusion
  JulyTampa
2007: Amend purchase contract to 10

reflect new environmental

 Site Rehabilitation Completion
Order (“SRCO”)
  The ‘No Further Action’ declaration to be
issued by the Hillsborough County
Environmental Protection Commission
(EPC)
  Contains two major elements:
1.  Requirement that two feet of clean fill remain
permanent on most of the IKEA site.
2.  For areas that could not meet this requirement
(retention pond, truck docks), a Declaration of
Restrictive Covenant was agreed-upon
restricting selected areas to industrial uses
only.
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Transaction Timeline
  August 2007: Brownfield Site Rehab. Agreement
(BSRA) prepared
  Sept 2007: Rezoning of parcel
  Dec 2007: Initial SRCO (solvents) finalized.
  Dec 2007: Brownfield designation approved
by City of Tampa; ‘BSRA’
finalized
  Jan 2008: NOI SRCO was finalized.
  Jan 2008: Property Closing.
–  Post-closing work included remediation by Seller;
obtaining regulatory close-out for all environmental
matters (SRCO); pad prep and off-site work
  June 4, 2008: IKEA breaks ground
  Aug 2008: No Further Assessment –Tank Area 12
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  May 6, 2009: IKEA Tampa opens!
 May 2009

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SRCO ‘reports and documents’

1.  Phase I Environmental Assessment
2.  Phase II Environmental Assessment
3.  Combined Site Assessment Report /
Remedial Action Plan
4.  Supplement to Site Assessment
Report
5.  Site Assessment Report Addendum
6.  Second Supplement to Site
Assessment
7.  Interim Source Removal Completion
Report
8.  Groundwater Sampling Testing
Results; No Further Action w/ Controls
Proposal
9.  Groundwater Monitoring Summary
10.  Underground Storage Tank Closure
Assessment Report
11.  Interim Source Removal Supplement
12.  Engineering Controls Certification
13.  Engineering Controls Clarification 1
14.  Engineering Controls Clarification 2
15.  Soil Disposal Documentation
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16)  Engineering Controls Clarification
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17)  Engineering Controls Clarification
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18)  Site Rehabilitation Completion
Report
19)  Maintenance of Engineering
Controls During Site
Development
20)  Engineering Controls Clarification
21)  Supplement 1: Engineering
Controls Clarification
22)  Supplement 2: Engineering
Controls Clarification
23)  Brownfield Site Rehabilitation
Agreement
24)  Declaration of Restrictive
Covenant – Recorded
25)  Conditional Site Rehabilitation
Completion Order
26)  Potable Well Survey
27)  Well Abandonment Report.
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Brownfield Designation Benefits
Statutory Brownfield Benefits:
  Florida Brownfield Redevelopment Bonus
Program.
–  Approved to receive up to $450,000 over five
years; based on job creation measures, salary
and benefits.
  Florida Enterprise Zone
–  Business Equipment Sales Tax Refund
–  Business Material Sales Tax Refund
–  Property Tax Credit
  Voluntary Cleanup Tax Credits
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IKEA stores located on former

industrial sites
  IKEA Elizabeth, NJ (NYC market)
  IKEA Renton, WA (Seattle market)
  IKEA Emeryville, CA (SF market)
  IKEA New Haven, CT
  IKEA Atlanta, GA
  IKEA Brooklyn, NY
  IKEA Tampa (FL)
  IKEA Somerville, MA (Boston market)**

20% of IKEA stores in the US are located on

redeveloped former industrial sites
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Questions or Comments?

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