Business Type: New County: Clark County Development Authority Representative: Morgan Bunker, LVGEA

Transcription

1 Board Summary Amazon.com.kydc, LLC 410 Terry Ave., North, Seattle, WA Date: November 17, 2016 Main Location: Carson City, Nevada Teresa Lynch, Senior Manager Economic Development Public Policy Warehousing, logistics, e-retailer Business Type: New County: Clark County Development Authority Representative: Morgan Bunker, LVGEA APPLICATION HIGHLIGHTS - Amazon.com.kydc, LLC is considering establishing a new build-to-suit fulfillment center in Clark County to support their North American operations. The facility will measure approximately 813,120 square feet and be used for sorting, packing, and shipping on-line retail orders. - Amazon.com.kydc, LLC operates a return center in Las Vegas and a fulfillment center in Reno that employ approximately 900 and 600 full-time employees, respectively. - Amazon-affiliated companies currently employ approximately 4,900 full-time employees in Nevada. PROFILE Amazon.com.kydc, LLC provides warehousing and storage services. The company operates as a subsidiary of Amazon.com Inc. an American electronic commerce and cloud computing company and the largest Internet-based retailer in the world by total sales and market capitalization. Amazon.com was one of the first big companies to sell goods over the Internet. The company was founded in 1994, and launched in The company started out as an online bookstore and quickly diversified by adding other items. Amazon.com is headquartered in Seattle, Washington. The company has individual websites, software development centers, customer service centers, and fulfillment centers in many locations around the world. Source: Amazon.com.kydc, LLC SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND Amazon.com.kydc, LLC is requesting abatements to help defray certain expenditures associated with the proposed fulfillment center project in Clark County, Nevada. The availability and overall cost of doing business are important factors in the company s decision to proceed with the project in Clark County. Source: Amazon.com.kydc, LLC REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation Yes 1900% Average Wage $21.35 $14.64 No -31% Equipment Capex (SU & MBT) $1,000,000 $18,000,000 Yes 1700% Equipment Capex (PP) $1,000,000 $18,000,000 Yes 1700% INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. Abated to 2% for 2 years $1,107,000 Modified Business Tax Abmt. 25% for 4 years $407,063 Personal Property Tax Abmt. 25% for 10 years $297,461 Total $1,811,524 JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $0 $0 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported 1,485 0 Total Payroll Supported $498,875,850 $0 Total Output Estimate $1,281,555,399 $0 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 $846,104 $22,595,541 $23,441,645 Sales $0 $8,934,078 $8,934,078 Lodging $0 $1,225,268 $1,225,268 State Taxes Property $46,277 $1,315,656 $1,361,933 Sales $360,000 $3,093,030 $3,453,030 Modified Business $3,663,566 $2,618,107 $6,281,673 Lodging $0 $38,290 $38,290 Total $4,915,947 $39,819,970 $44,735,917 IMPACT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar $707 $24.70 EMPLOYEE BENEFITS - Percentage of health insurance plan covered by company: 78%. - Health care package cost per employee - $4,656 annually with options for dependents. - Overtime, PTO/Sick, Merit increases, Tuition Assistance, Retirement Plan / Profit Sharing / 401 (k). NOTES - Percentage of market outside of Nevada: 95%.

2 September 26, 2016 Mr. Steve Hill Nevada Governor s Office of Economic Development 555 E. Washington Avenue, Suite 5400 Las Vegas, Nevada Dear Mr. Hill, Amazon.com.kydc LLC is applying to the State of Nevada for tax abatement incentives to include the Sales and Use Tax Abatement, Modified Business Tax Abatement, and Personal Property Tax Abatement. We request that Amazon.com be placed on the agenda for the November GOED Board meeting. Amazon will begin operations by hiring 1000 employees making an average hourly wage of $ The company will make a capital investment of $18 million dollars for equipment. The Las Vegas Global Economic Alliance has reviewed Amazon s application and found it to be in compliance to receive modified incentive abatements. Amazon.com has the full support and endorsement of the Las Vegas Global Economic Alliance. Sincerely, Morgan Bunker Las Vegas Global Economic Alliance

3 CONFIDENTIAL - PROPRIETARY INFORMATION - NRS

4 REQUEST FOR CONFIDENTIALITY DETERMINATION Pursuant to Assembly Bill No. 17, 78 th (2015) Session of the Nevada Legislature, and upon the request of applicant Amazon.com. kydc, LLC, the Executive Director of the Office has determined the: (i) (ii) The detailedd schedulee of Capital Equipment List, 5( (A) The detailedd schedulee of Employment List, 5(B) are confidential proprietary information of the business, are not public records, and shall be redacted in its entirety from the copy of the application that is disclosed to the public. Steven D. Hill Executive Director 11/10/2016 Date

5

6 Incentive Application Company Name: Amazon.com.kydc LLC Date of Application: September 26, 2016 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 Modified Business Tax Abatement Personal Property Tax Abatement Section 2 - Corporate Information Sales & Use Tax Deferral Recycling Real Property Tax Abatement Other: COMPANY NAME (Legal name under which business will be transacted in Nevada) Amazon.com.kydc LLC CORPORATE ADDRESS 410 Terry Ave., North MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) CITY / TOWN Seattle FEDERAL TAX ID # STATE / PROVINCE ZIP WA CITY / TOWN STATE / PROVINCE ZIP TELEPHONE NUMBER COMPANY CONTACT NAME Teresa Lynch ADDRESS terlynch@amazon.com Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property WEBSITE amazon.com COMPANY CONTACT TITLE Senior Manager Economic Development Public Policy PREFERRED PHONE NUMBER 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): Sales and Use Tax, Modified Business Tax, and Personal Property Tax Abatements, and Sales and Use Tax Deferral and TEN Grant -- approved 10/10/14 for our Reno, NV fulfillment center. Section 3 - Program Requirements Please check two of the boxes below; the company must meet at least two of the three program requirements: 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. 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). Section 4 - Nevada Facility PERCENT OF COMPANY'S NEVADA LOCATION MARKET OUTSIDE OF NEVADA >95% NAICS CODE / SIC Aug-2017 Service Provider Distribution / Fulfillment Manufacturing Other: INDUSTRY TYPE warehousing, logistics, e-retailer DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Amazon.com.kydc LLC operates fulfillment centers in Las Vegas and Reno that employ approximately 900 and 600 full-time employees, respectively. Affiliated entities operate a number of facilities around the state, including the corporate headquarters of Zappos and fulfillment operations for Quidsi. Together, Amazon-affiliated companies employ approximately 4,900 full-time employees in Nevada. PROPOSED / ACTUAL NEVADA FACILITY ADDRESS North Lamb Blvd. and Tropical Parkway WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? Amazon strives to maintain positive relationships with all state and local jurisdictions in which it does business. To achieve these goals, it is preferred not to disclose jurisdictions that did not successfully compete for new job and investment projects such as the one contemplated in this application. 1 EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) Yes CITY / TOWN COUNTY ZIP North Las Vegas Clark County No

7 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 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: When to make improvements (month, year)? 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.)? Yes What year(s)? 2017 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: Part 2. Are you currently/planning on 813,120 TBD Yes Mar-2017 No Yes Aug-2016 Jul ,120 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: Expanding at the current facility or a new facility? 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)? Part 2. Are you currently operating at an owner occupied building in Nevada? If No, skip to Part 3. If Yes, continue below: How much space (sq. ft.)? 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.)? * 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): The Project will consist of a fulfillment center, measuring approximately 813,120 square feet, used for sorting, packing, and shipping on-line retail orders. The construction of the facility will require 200 local construction workers. The Project will employ over 1,000 full-time employess plus temporary and seasonal workers. 2

8 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): How much capital investment is planned? (Breakout below): Building Purchase (if buying): Building Costs (if building / making improvements): Land: Equipment Cost: Total: $0 Building Purchase (if buying): $0 TBD Building Costs (if building / making improvements): $0 $0 Land: $0 $18,000,000 Equipment Cost: $0 $18,000,000 Total: $0 Is the equipment purchase for replacement of existing equipment? Current assessed value of personal property in NV: (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?: 1,000 Average hourly wage of these new employees: $14.64 How many full-time equivalent (FTE*) employees will be created by the end of the first eighth quarter of expanded operations?: Average hourly wage of these new employees: How many FTE employees prior to expansion?: Average hourly wage of these existing employees: Total number of employees after expansion: * 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: RSUs BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary): Full-time employees receive Restricted Stock Units (RSUs), which are rights to Amazon common stock that vest after a certain time period. Hourly employees receive pay increases based on duration of employment. 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) 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: No Health Insurance Costs: Percentage of health insurance coverage by: Cost of health insurance for company (annual amount per employee): $ 4, Company: 78% Health Plan annual out-of-pocket maximum (individual): $ 4, * Employee: 22% * Average annual out-of-pocket. Annual out-of-pocket maximums vary by plan. [SIGNATURE PAGE FOLLOWS] 3

9 Equipment Schedule, Detailed The Office has determined the detailed equipment schedule as described in this application constitutes confidential proprietary information of Amazon.com.kydc, LLC, and is not a public record.

10 DocuSign Envelope ID: D-8C45-464D-9A80-4FE72E36756F Section 10 - Certification CONFIDENTIAL - PROPRIETARY INFORMATION - NRS I, the undersigned, hereby grant to the Governor's Office of Economic Development access to all pertinent and relevant records and documents of the aforementioned company. I understand this requirement is necessary to qualify and to monitor for compliance of all statutory and regulatory provisions pertaining to this application. Being owner, member, partner, officer or employee with signatory authorization for the company, I do hereby declare that the facts herein stated are true and that all licensing and permitting requirements will be met prior to the commencement of operations. In addition, I and /or the company s legal counsel have reviewed the terms of the GOED Tax Abatement and Incentives Agreement, the company recognizes this agreement is generally not subject to change, and any material revisions have been discussed with GOED in advance of board approval. Mike Grella Name of person authorized for signature Signature Vice President September 26, 2016 Title Date Nevada Governor's Office of Economic Development 555 E. Washington Ave., Ste 5400 Las Vegas, Nevada (Fax)

11 Site Selection Factors Company Name: Amazon.com.kydc LLC 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: 4 Labor costs: 3 Transportation costs: 4 Real estate availability: 5 State and local tax structure: 3 Real estate costs: 5 State and local incentives: 5 Utility infrastructure: 3 Business permitting & regulatory structure: 3 Utility costs: 3 Access to higher education resources: 3 OTHER FACTORS & RATINGS: A wide variety of factors are considered when making a location decision, including all of the factors identified above, plus others. Opportunities to reduce costs, including the availability of incentives, are considered to continue allowing the company to offer customers better prices, greater selection, and faster delivery times. 11

12 Employment Schedule, Detailed The Office has determined the detailed employment schedule as described in this application constitutes confidential proprietary information of Amazon.com.kydc, LLC, and is not a public record.

13 5(C) Evaluation of Health Plans Offered by Companies Company Name: Amazon.com.kydc LLC County: Clark County Total Number of Full-Time Employees: 1,000 Average Hourly Wage per Employee $14.64 Average Annual Wage per Employee (implied) $30, Annual Cost of Health Insurance per Employee $4, Percentage of Cost Covered by: Company 78% Employee 22% Health Plan Annual Out-of-Pocket Maximum $4,000 Generalized Criteria for Essential Health Benefits (EHB) [following requirements outlined in the Affordable Care Act and US Code, including 42 USC Section 18022] Covered employee's premium not to exceed 9.5% of annual wage MMQ Annual Out-of-Pocket Maximum not to exceed $6,600 (2015) $4,000 MMQ Minimum essential health benefits covered (Company offers PPO): (A) Ambulatory patient services (B) Emergency services (C) Hospitalization (D) Maternity and newborn care (E) Mental health/substance use disorder/behavioral health treatment (F) Prescription drugs (G) Rehabilitative and habilitative services and devices (H) Laboratory services (I) Preventive and wellness services and chronic disease management (J) Pediatric services, including oral and vision care No Annual Limits on Essential Health Benefits I, the undersigned, hereby declare to the Governor's Office of Economic Development that the facts herein stated are true, and that I have attached sufficient plan information for GOED to independently confirm the same. Mike Grella Name of person authorized for signature Vice President Title Signature 9/26/2016 Date

14 BL Search 2 of 3 11/1/2016 1:21 PM Business License Detail Information License Number: MJBL Number: Business: Amazon.com.kydc LLC Suite W Sunset Rd Las Vegas, NV Business Telephone: (206) License Category: Status: Wholesale Trade Licensed Date of License: 08/11/2016 Out of Business Date: Business Owner(s) Amazon Fulfillment Services, Inc. Return to Previous Page Return to Business License Database Search Options