Business Type: Expansion County: Clark County Development Authority Representative: Perry Ursem - LVGEA

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1 Board Summary Premium Waters, Inc Summer Street NE Suite 200, Minneapolis, MN Date: November 15, 2018 Main Location: Las Vegas Steve Willis, Chief Financial Office Manufacturing and Distribution center Business Type: Expansion County: Clark County Development Authority Representative: Perry Ursem - LVGEA APPLICATION HIGHLIGHTS - Premium Waters, Inc. plans to add another Polyethylene Terephthalate (PET) line to its North Las Vegas Facility. This expansion will increase plant capacity and distribution to the Western part of the United States. - The company will be increasing its facility from 160,000 sq. ft to 290,000 sq. ft. to accommodate for the projected expansion. PROFILE Premium Waters, Inc. is a leading manufacturer of private label bottled water in the United States with products distributed to multiple channels across 47 states. The company offers spring, drinking, purified, artesian, distilled, fluoride, and well water. The company also offers water cooler systems; single cup brewers and thermal brewing systems for home and office delivery. Premium Waters, Inc. manufactures its product from the ground up, starting with plastic resin, blowing the bottle, filling, labeling and packaging. It sells its products through a network of bottling plants and distribution centers, as well as distributors. The company currently operates eight fully integrated bottling plants located in the states of Wisconsin, Minnesota, Missouri, Texas, Tennessee, Illinois, Mississippi, and Georgia. In the past few years the company has established business in the western states of Washington, California, Nevada, Utah, and Arizona. The company hopes to continue to grow this business significantly over the next few years. Currently, 85% of Premium Waters, Inc.'s Nevada facility revenue comes from outside Nevada. In spite of the company's continued growth, it has made a decision not to be a national producer, preferring to perform well in the regions it serves. Premium Waters, Inc. is a good corporate citizen that values philanthropic and community activities. Currently the company donates water to hundreds of causes that support community efforts in more than 35 states. Premium Waters, Inc. is a member of the International Bottled Water Association (IBWA). Source: Premium Waters, Inc. SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND Premium Waters, Inc. is requesting tax incentives to assist with its expansion efforts in the state of Nevada. Recent strategic planning has the company focused on creating a greater presence in Nevada. The economic development incentives offered by the State of Nevada have been an integral factor in the company's expansion strategy. The projected cost savings from the support of these incentives will allow to hire a greater number of full time employees, supporting Governor's initiative for providing more Nevadan's with long term work and career opportunities. Additionally, Nevada's pro business climate provides Premium Waters with a sustainable location for ongoing strategic growth. Source: Premium Waters, Inc. REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation % Average Wage $22.54 $22.89 Company meets 2% Equipment Capex (SU & MBT) $737,959 abatement eligibility 1534% $12,059,600 Equipment Capex (PP) $737,959 requirements 1534% INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. 2% for 2 years $753,725 Modified Business Tax Abmt. 50% for 4 years $9,497 Personal Property Tax Abmt. 50% for 10 years $396,965 Total $1,160,187 NEVADA BUSINESS LICENSE Current Pending Will comply before receiving incentives JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $0 $1,616,750 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported Total Payroll Supported $16,218,324 $847,864 Total Output Estimate $97,671,223 $2,573,149 Estimate includes jobs, payroll & output by the company assisted as well as the secondary impacts to other local businesses. NEW TAX REVENUE ESTIMATES (10-Year Cumulative) Direct Indirect Total Local Taxes Property $1,121,034 $581,319 $1,702,353 Sales $65,680 $297,294 $362,974 Lodging $0 $15,294 $15,294 State Taxes Property $61,314 $33,606 $94,920 Sales $262,210 $100,553 $362,763 Modified Business $61,154 $118,257 $179,411 Lodging $0 $5,363 $5,363 Total $1,571,392 $1,151,686 $2,723,078 EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 65%. - Health care package cost per employee - $6,128 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Merit Increases, COLA Adjustments, Retirement Plan / Profit Sharing / 401(k), Tuition Assistance, Bonus. NOTES - Percentage of revenue generated by the new jobs contained in this application from outside Nevada: 85%. - The company is also considering Arizona, Ohio and Texas as potential locations.

2 LAS VEGAS GLOBAL ECONOMIC ALLIANCE September 28,2018 Mr. Paul Anderson Executive Director Nevada Governor's Office of Economic Development 555 E. Washington Avenue, Suite 5400 Las Vegas, Nevada Dear Mr. Anderson, Premium Waters, Inc. (herein "Premium Waters") is applying to the State of Nevada for the Sales and Use Tax Abatement, Modified Business Tax Abatement, and Personal Property Tax Abatement. We request their application be placed on the agenda for the November 2018 GOED Board Meeting. Premium Waters is exploring their options to expand operations in Southern Nevada from a current staff of 30 by hiring 12 additional employees over the next 24 months. These new hires will make an average hourly wage of $22.89 and be provided with a generous benefits package that includes overtime, PTO, merit increases, cost of living adjustments, tuition assistance, retirement planning, and performance bonuses. Premium Waters will make a capital investment of approximately $13.6 million dollars, which includes approximately $12 million in capital equipment. Our team has reviewed Premium Waters application and found it to comply with Nevada's statutory requirements for tax abatements. This application has the full support and endorsement of the Las Vegas Global Economic Alliance. We appreciate your consideration in this matter. incerely. Perry Ursem Vice President, Business Retention and Expansion Enclosure VIA AUSTI PARKWAY, SUITE 330 LAS VEGAS, NEVADA LVGEA.ORG

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4 Incentive Application Company Name: Premium Waters Date of Application: September 28, 2018 Company is an / a: (check one) New location in Nevada Expansion of a Nevada company Section 1 - Type of Incentives Please check all that the company is applying for on this application: Sales & Use Tax Abatement Sales & Use Tax Deferral Modified Business Tax Abatement Recycling Real Property Tax Abatement Personal Property Tax Abatement Other: Section 2 - Corporate Information COMPANY NAME (Legal name under which business will be transacted in Nevada) Premium Waters, Inc. CORPORATE ADDRESS 2100 Summer Street NE Suite 200 MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) 4301 NW Mattox Rd TELEPHONE NUMBER COMPANY CONTACT NAME Steve Willis ADDRESS steve.willis@premiumwaters.com CITY / TOWN Minneapolis FEDERAL TAX ID # STATE / PROVINCE MN Yes ZIP CITY / TOWN STATE / PROVINCE ZIP Riverside WEBSITE COMPANY CONTACT TITLE Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development? If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary): CFO PREFERRED PHONE NUMBER MO No Section 3 - Program Requirements Please check two of the boxes below; the company must meet at least two of the three program requirements: In urban areas, the average hourly wage that will be paid by the business to its new employees is at least 100% of the average statewide hourly in rural areas, the average hourly wage will equal or exceed the lesser of the county-wide average hourly wage or statewide average hourly wage. Note: Criteria is different depending on whether the business is in a county whose population is 100,000 or more or a city whose population is 60,000 or more (i.e., urban area), or if the business is in a county whose population is less than 100,000 or a city whose population is less than 60,000 (i.e., rural area). Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property 85% NAICS CODE / SIC A capital investment of $1,000,000 in eligible equipment in urban areas or $250,000 in eligible equipment in rural areas are required. This criteria is businesses. In cases of expanding businesses, the capital investment must equal at least 20% of the value of the tangible property owned by the business. New businesses locating in urban areas require fifty (50) or more permanent, full-time employees on its payroll by the eighth calendar quarter quarter in which the abatement becomes effective. In rural areas, the requirement is ten (10) or more. For an expansion, the business must increase employees on its payroll by 10% more than its existing employees prior to expansion, or by 25 (urban) or 6 (rural) employees, whichever is greater. Section 4 - Nevada Facility PERCENTAGE OF REVENUE GENERATED BY THE NEW JOBS CONTAINED IN THIS APPLICATION FROM OUTSIDE NEVADA DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Bottled Water Manufacturing and Distribution center PROPOSED / ACTUAL NEVADA FACILITY ADDRESS Apr-2019 INDUSTRY TYPE Service Provider Distribution / Fulfillment Manufacturing Other: EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) Bottled Water Manufacturing CITY / TOWN COUNTY 3355 N Lamb Blvd Las Vegas Clark County WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? Phoenix, AZ; Southern TX, Ohio Valley 1 ZIP

5 Section 5 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below) Check the applicable box when form has been completed. 5 (A) Equipment List 5 (B) Employment Schedule 5 (C) Evaluation of Health Plan, with supporting documents to show the employer paid portion of plan meets the minimum of 65%. Section 6 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up - Plans Over the Next Ten Years Expansions - Plans Over the Next 10 Years Part 1. Are you currently/planning on leasing space in Nevada? If No, skip to Part 2. If Yes, continue below: What year(s)? How much space (sq. ft.)? Annual lease cost of space: Do you plan on making building tenant improvements? If No, skip to Part 2. If Yes *, continue below: When to make improvements (month, year)? Part 2. Are you currently/planning on buying an owner occupied facility in Nevada? If No, skip to Part 3. If Yes *, continue below: Purchase date, if buying (month, year): How much space (sq. ft.)? Do you plan on making building improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Part 3. Are you currently/planning on building a build-to-suit facility in Nevada? If Yes *, continue below: When to break ground, if building (month, year)? Estimated completion date, if building (month, year): How much space (sq. ft.)? Part 1. Are you currently leasing space in Nevada? If No, skip to Part 2. If Yes, continue below: What year(s)? How much space (sq. ft.)? Annual lease cost at current space: Due to expansion, will you lease additional space? If No, skip to Part 3. If Yes, continue below: Part 2. Are you currently operating at an owner occupied building in Nevada? If No, skip to Part 3. If Yes, continue below: Current assessed value of real property? Due to expansion, will you be making building improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Part 3. Do you plan on building or buying a new facility in Nevada? If Yes *, continue below: Purchase date, if buying (month, year): When to break ground, if building (month, year)? Estimated completion date, if building (month, year): How much space (sq. ft.)? Yes 2015-current 160,000 Expanding at the current facility or a new facility? New What year(s)? How much expanded space (sq. ft.)? Annual lease cost of expanded space: Do you plan on making building tenant improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? How much space (sq. ft.)? $820,000 Yes 130,000 $770,000 No No No * Please complete Section 7 - Capital Investment for New Operations / Startup. * Please complete Section 7 - Capital Investment for Expansions below. BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary): We are adding another PET line to increase plant capacity and distribution to the Western part of the United States. We hope to continue to grow our business in Nevada over the next few years. Currently 85% of this plant's revenue is being generated from out-of-state. 2

6 Section 7 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up Expansions How much capital investment is planned? (Breakout below): Building Purchase (if buying): Building Costs (if building / making improvements): Land: Equipment Cost: Total: How much capital investment is planned? (Breakout below): Building Purchase (if buying): Building Costs (if building / making improvements): Land: Equipment Cost: Total: $1,616,750 $12,059,600 $13,676,350 Is the equipment purchase for replacement of existing equipment? No Current assessed value of personal property in NV: $3,689,794 (Must attach the most recent assessment from the County Assessor's Office.) Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up Expansions How many full-time equivalent (FTE*) employees will be created by the end of the first eighth quarter of new operations?: Average hourly wage of these new employees: How many full-time equivalent (FTE*) employees will be created by the end of the first eighth quarter of expanded operations?: 12 Average hourly wage of these new employees: $22.89 How many FTE employees prior to expansion?: Average hourly wage of these existing employees: Total number of employees after expansion: 30 $ * FTE represents a permanent employee who works an average of 30 hours per week or more, is eligible for health care coverage, and whose position is a "primary job" as set forth in NAC OTHER COMPENSATION (Check all that apply): Overtime Merit increases Tuition assistance Bonus PTO / Sick / Vacation COLA adjustments Retirement Plan / Profit Sharing / 401(k) Other: BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary): Section 9 - Employee Health Insurance Benefit Program Is health insurance for employees and an option for dependents offered?: Yes (copy of benefit plan must be attached) No Package includes (check all that apply): Medical Vision Dental Other: Qualified after (check one): Upon employment Three months after hire date Six months after hire date Other: 1st day of first full month after employment Health Insurance Costs: Percentage of health insurance coverage by (min 65%): Cost of health insurance for company (annual amount per employee): $ 6, Company: 65% Health Plan annual out-of-pocket maximum (individual): $ 4, Employee: 35% [SIGNATURE PAGE FOLLOWS] 3

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8 Site Selection Factors Company Name: Premium Waters, Inc. County: Clark County Section 1 - Site Selection Ratings Directions: Please rate the select factors by importance to the company's business (1 = very low; 5 = very high). Attach this form to the Incentives Application. Availability of qualified workforce: 5 Transportation infrastructure: 5 Labor costs: 4 Transportation costs: 5 Real estate availability: 5 State and local tax structure: 5 Real estate costs: 4 State and local incentives: 5 Utility infrastructure: 5 Business permitting & regulatory structure: 5 Utility costs: 5 Access to higher education resources: 3 Please summarize the importance of the abatement program to your decision (please include at least a paragraph summary): The new PET line we hope to install is identical to one in our facility in Jackson, MS. It would serve us well in any of the site selections considered. The incentive package and abatement is a significant factor in determining where to grow this product line. Premium Waters currently has plants located in the states of Wisconsin, Minnesota, Missouri, Mississippi, Texas, Tennessee, Illinois, Nevada, and Georgia. 5

9 5(A) Capital Equipment List Company Name: Premium Waters, Inc. County: Clark Section 1 - Capital Equipment List Directions: Please provide an estimated list of the equipment [columns (a) through (c)] which the company intends to purchase over the two-year allowable period. For example, if the effective date of new / expanded operations begins April 1, 2015, the two-year period would be until March 31, Add an additional page if needed. For guidelines on classifying equipment, visit: tax.nv.gov/localgovt/policypub/archivefiles/personal_property_manuals. Attach this form to the Incentives Application. (a) Equipment Name/Description Krones Hartness Robotic Palletizer and Wrapper Water Silo Water Meter Water Processing Utility Room Stands Utility Room Equipment Machinery Piping ( b) (c) (d) # of Units Price per Unit Total Cost 1 $ 7,175, $7,175, $ 1,125, $1,125, $110, $110, $1,150, $1,150, $909, $909, $60, $60, $1,030, $1,030, $500, $500, TOTAL EQUIPMENT COST Is any of this equipment* to be acquired under an operating lease? *Certain lease hold equipment does not qualify for tax abatements Yes $12,059, No 6

10 5(B) Employment Schedule Company Name: Premium Waters, Inc. County: Clark Section 1 - Full-Time Equivalent (FTE) Employees Directions: Please provide an estimated list of full time employees [columns (a) through (d)] that will be hired and employed by the company by the end of the first eighth quarter of new / expanded operations. For example, if the effective date of new / expanded operations is April 1, 2015, the date would fall in Q2, The end of the first eighth quarter would be the last day of Q2, 2017 (i.e., June 30, 2017). Attach this form to the Incentives Application. A qualified employee must be employed at the site of a qualified project, scheduled to work an average minimum of 30 per week, if offered coverage under a plan of health insurance provided by his or her employer, is eligible for health care coverage, and whose position of a primary job as set forth in NAC (a) New Hire Position Title/Description Production Operator Forklift Operator CDL Driver Quality Control Technician Maintenance Technician Sales Supervisor (b) ( c ) (d) (e) (f) Number of Positions Average Hourly Wage Average Weekly Hours Annual Wage per Position Total Annual Wages 2 $ $32, $65, $ $32, $131, $ $45, $45, $ $38, $38, $ $67, $135, $ $100, $100, $ $55, $55, TOTAL 12 $22.89 $571, Section 2 - Employment Projections Directions: Please estimate full-time job growth in Section 2, complete [columns (b) through (c)]. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of employment. Please enter the estimates on a year by year basis (not cumulative amounts) (a) Year (b) Number of FTE(s) Projected (c) Average Hourly Wage (d) Payroll 3-Year 2 $23.00 $95, Year 2 $23.00 $95, Year 2 $23.00 $95,

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14 Why Premium Waters? WHO WE ARE: o We are a leading manufacturer of private label bottled water in the United States with product distributed to multiple channels across 47 states. o We currently operate eight fully integrated bottling plants in the United States. WHAT MAKES US DIFFERENT: o A focus on safety and quality. SQF Level 3, NSF, IBWA o We manufacture our product from the ground up, starting with plastic resin, blowing the bottle, then filling, labeling and packaging it before shipping it to you. This allows us to offer you unprecedented cost savings versus many of our competitors. WHAT WE RE OFFERING: o We can bring you a proven product, utilized by some of the largest retail groups in the world. o We can offer you the reliability and customer service that we have come to be known for. o And we can offer you all of this at a competitive price. PWI bottling plant Las Vegas 2

15 Where are we located? 3

16 What is full-line manufacturing? Full Line Manufacturer Bulk Sizes: 2.5gal, 1 Gallon, 3L PET: 10oz, 16.9oz, 20oz, 24oz, & 1L EDLP / Built-In Marketing Program Clear Film / Registered Film Paper Label / Plastic Label Clear Cap / Sports Cap Brown Pallet / Chep Pallet Full Truck loads / Mixed sku s CPU / Delivered Pricing In-house Graphic Designer 4

17 Current Partners Ethos Starbucks Sam s Choice WalMart Best Choice AWG Cornerstore Valero Hill Country Fare HEB Casey s General Store Kroger Sysco Fastenal Stater Bros Harrah s PurAqua Aldi HyVee Clover Valley Dollar General B Refreshed Boyd Gaming 5