4645 Van Nuys Blvd. #201 Sherman Oaks, CA 91403
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1 Board Summary Virtual Guard, Inc Van Nuys Blvd. #201 Sherman Oaks, CA Date: September 19, 2017 Main Location: Las Vegas Dror Soref, Director of Marketing and Public Relations Perimeter Security, Video Monitoring Business Type: New County: Clark County Development Authority Representative: Morgan Bunker, LVGEA APPLICATION HIGHLIGHTS - Virtual Guard, Inc. is considering re-locating from its Los Angeles, CA location to southern Nevada. - The relocation would include the company's interactive command and control center, and the entire headquarters of Virtual Guard, Inc. The move could potentially occur in late The company's systems have been used by the Department of Defense and the Department of Homeland Security. PROFILE Virtual Guard, Inc. is a video monitoring company and leading developer and integrator of cutting edge technology in the perimeter security sector. The company specializes in providing reliable, effective, high-tech security solutions with the ability to prevent crimes from occurring. Combined with experienced security professionals, the company's operations are devised to cost-effectively prevent a loss prior to intruders breaching the perimeter of the secured site. The company's security solutions have been verified by national testing laboratories and are being used throughout the United States and Canada by auto dealerships, scrap yards, construction sites, government facilities, warehouses, commercial buildings, industrial, and manufacturing sites. Source: Virtual Guard, Inc. SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND In its decision to relocate, the company is seeking a business friendly environment. The incentives offers by the state of Nevada are also a crucial factor in the company's consideration to relocate. Should the company select Nevada, it anticipates a long and mutually prosperous relationship with the state and its local communities. Source: Virtual Guard, Inc. REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation Yes 60% Average Wage $21.95 $22.31 Yes 2% Equipment Capex (SU & MBT) $1,000,000 $355,402 No -64% Equipment Capex (PP) $1,000,000 $355,402 No -64% INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. 2% for 2 years $44,425 Modified Business Tax Abmt. 50% for 4 years $163,194 Personal Property Tax Abmt. 50% for 10 years $43,886 Total $251,505 JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $1,500,000 $0 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported Total Payroll Supported $222,487,091 $0 Total Output Estimate $554,191,759 $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 $56,296 $7,783,104 $7,839,400 Sales $177,701 $4,049,179 $4,226,880 Lodging $0 $228,156 $228,156 State Taxes Property $3,079 $453,182 $456,261 Sales $71,080 $1,379,420 $1,450,500 Modified Business $1,901,690 $901,794 $2,803,484 Lodging $0 $77,003 $77,003 Total $2,209,846 $14,871,838 $17,081,684 EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 65%. - Health care package cost per employee - $5,900 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Tuition Assistance. NOTES - Percentage of market outside of Nevada: 100%. - The company is also considering Florida as a potential location.
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5 Incentive Application Company Name: Virtual Guard, Inc. Date of Application: July 14, 2017 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 Other: COMPANY NAME (Legal name under which business will be transacted in Nevada) Virtual Guard, Inc Van Nuys Blvd. #201 MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) Sales & Use Tax Deferral Recycling Real Property Tax Abatement CITY / TOWN Sherman Oaks FEDERAL TAX ID # STATE / PROVINCE CA CITY / TOWN STATE / PROVINCE ZIP TELEPHONE NUMBER Dror Soref ADDRESS dsoref@virtualguard.com WEBSITE COMPANY CONTACT TITLE Director of Marketing and Public Relations 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): Yes No 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 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 Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property PERCENT OF COMPANY'S NEVADA LOCATION MARKET OUTSIDE OF NEVADA 100% NAICS CODE / SIC Headquarters; Command & Control Center; Operations Service Provider Distribution / Fulfillment Manufacturing Other: EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) Nov-2017 INDUSTRY TYPE perimeter security; video monitoring company PROPOSED / ACTUAL NEVADA FACILITY ADDRESS TBD CITY / TOWN COUNTY Clark County WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? Florida 1 ZIP
6 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 Part 1. Are you currently/planning on leasing space in Nevada? Yes If No, skip to Part 2. If Yes, continue below: What year(s)? Q How much space (sq. ft.)? 10,000 Annual lease cost of space: TBD Do you plan on making building tenant improvements? Yes 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.)? Yes no Expansions - Plans Over the Next 10 Years 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): 2
7 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: $1,500,000 Building Purchase (if buying): $0 $0 Building Costs (if building / making improvements): $0 $0 Land: $0 $355,402 Equipment Cost: $0 $1,855,402 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?: 80 Average hourly wage of these new employees: $22.31 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: 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) 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): $ 5, Company: 65% Health Plan annual out-of-pocket maximum (individual): $ 1, Employee: 35% [SIGNATURE PAGE FOLLOWS] 3
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9 Site Selection Factors Company Name: Virtual Guard, 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: 2 Labor costs: 5 Transportation costs: 3 Real estate availability: 3 State and local tax structure: 5 Real estate costs: 4 State and local incentives: 5 Utility infrastructure: 3 Business permitting & regulatory structure: 5 Utility costs: 4 Access to higher education resources: 4 OTHER FACTORS & RATINGS: 5
10 5(A) Capital Equipment List Company Name: Virtual Guard, Inc. County: Clark County 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) Sofa / Black Leather Tufted sofa Love Seat / Black Leather Tufted love seat Computer Station / U-Shaped Desk with Hutch, 2 and 3 Drawer Pedestals XL Conference table / race track shape Executive computer Desk- solid wood w/ 9 drawers and special laminate top Executive Desk- solid wood w/ 9 drawers and hutch Sitting Chairs/ Wooden Leather Chairs Credenza / 3 Drawer Executive Wooden Credenza Chest of Drawers/ Executive Wooden Chest of Drawers with Hutch Computer Chair / Executive Leather Computer Chair Filing Cabinet / 2 Drawer Black Filing Cabinet Filing Cabinet / 3 Drawer Black Filing Cabinet Filing Cabinet / 4 Drawer Black Filing Cabinet Filing Cabinet / 5 Drawer Black Filing Cabinet Table / 10 x 10" Side Table Cabinet / 2 Drawer wooden cabinet Computer Desk / 4 Drawer with console area Bookcase / 4 Shelf Quarter Round wooden bookcase Storage Rack/ Heavy Duty 4 Shelf Storage rack Bookcase / 4 shelf metal utility bookcase Bookcase / 5 shelf wooden bookcase Storage Rack/ 5 Shelf metal Storage rack Computer Desk/ Executive 7 Drawer Wooden Computer Desk Stool/ Metal and leather stool Bookcase / Large wooden bookcase with 2 cabinet Computer Desk (no drawers) Closet/ Wooden cabinet with closet and 2 drawers Sitting Chairs/ Black Pleather Conference Room Chairs Receptionist desk Coffee Table/ Executive wooden coffee table Computer Chair / Pleather computer chair Sitting Chair/ Mesh sitting Chair Desk/ Grey plastic desk TOTAL EQUIPMENT COST Equipment Name/Description Is any of this equipment* to be acquired under an operating lease? *Certain lease hold equipment does not qualify for tax abatements ( b) (c) (d) # of Units Price per Unit Total Cost 1 $ $ $ $ $3, $22, $1, $1, $2, $2, $3, $3, $ $3, $1, $1, $2, $2, $ $ $ $1, $ $2, $ $1, $ $ $ $ $ $ $ $ $ $1, $ $ $ $ $ $ $ $ $2, $2, $ $ $ $ $1, $2, $ $2, $ $2, $ $ $ $ $ $2, $ $ $ $ Yes No 6
11 5(A) Capital Equipment List Company Name: Virtual Guard, Inc. County: Clark County 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 Ladder/ metal ladder Long Split level desk for Guard Station Rolling rack/ 2 Tiered metal rolling rack Rack/ Server and switches racks in server room XL White board Access Control / Isonas RC-04 Antenna / Apple A1521 Battery / APC UPS 1500 backup battery Card Scanner / DYMO CardScan Check Scanner / Panini I:DEAL Computer / Dell Docking Station/ IOGEAR GUD300 Electric Hole Punch / Swingline 525 FOB Printer / Zebra P100i I/O module / ControlByWeb X-310S-E Laminator / Professional Binding Product, Inc. TCC-330 Laptop / Lenovo 5150 Monitor / Acer and Asus Mouse / Logitech Phone Speaker / Sennheiser SP20 ML POE Switch / Planet GSD-908HP Printer / HP Officejet Rail Power Supply / DIN TI-S24048 Refrigerator / Danby Safe / Guardall S Shredder / Fellowes Powershred 220 Televisions / Vizio E48U-D0 Phones / Cisco IP Phone Cameras Audio Equipment Electrical Equipment DVRs Wireless/ antenas/ cradle points, etc. Miscellaneous office equipment ( b) (c) (d) # of Units Price per Unit Total Cost 1 $ $ $ $3, $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $6, $82.04 $ $ $ $1, $1, $ $ $ $ $ $ $ $12, $25.00 $ $ $ $ $ $ $4, $ $ $ $ $ $1, $ $ $ $6, $ $4, various $110, various $22, various $30, various $66, various $9, $6, 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 $355, No 6
12 5(B) Employment Schedule Company Name: Virtual Guard, Inc. County: Clark County 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) (b) ( c ) (d) (e) (f) New Hire Position Title/Description Number of Average Hourly Average Weekly Annual Wage per Positions Wage Hours Position Total Annual Wages Guards 40 $ $23, $936, Shift managers 6 $ $35, $212, Operation Oanager 1 $ $66, $66, IT Manager 1 $ $74, $74, Softwear Developer sr 1 $ $101, $101, Softwear Developer jr 1 $ $66, $66, Ciommunication 2 $ $66, $133, Programmers 2 $ $60, $120, Installers 12 $ $52, $624, Installation coordinator 2 $ $62, $124, Purchaser 1 $ $39, $39, Sales people 2 $ $62, $124, Accountant 1 $ $62, $62, Clerks 5 $ $45, $228, Marketiong & PR Director 1 $ $83, $83, CEO 1 $ $124, $124, President 1 $ $124, $124, TOTAL 80 $22.31 $3,248, 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. (a) Year 3-Year 4-Year 5-Year (b) Number of FTE(s) Projected (c) Average Hourly Wage (d) Payroll 90 $25.00 $4,680, $27.50 $6,006, $30.00 $7,800,
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4645 Van Nuys Blvd. #201 Sherman Oaks, CA 91403
Board Summary Virtual Guard, Inc. 4645 Van Nuys Blvd. #201 Sherman Oaks, CA 91403 Date: September 19, 2017 Main Location: Las Vegas Dror Soref, Director of Marketing and Public Relations Perimeter Security,
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