Business Type: New County: Clark County Development Authority Representative: Michael Walsh - LVGEA

Transcription

1 Board Summary Trigg Laboratories, Inc Braxton Avenue, Valencia, CA Date: November 19, 2015 Main Location: Carson City, NV Simone Buntin, Chief Financial Officer Manufacturing Business Type: New County: Clark County Development Authority Representative: Michael Walsh - LVGEA APPLICATION HIGHLIGHTS - Trigg Laboratories, Inc. is applying for Sales Tax, Modified Business Tax, Personal Property Tax abatements and Sales & Use Tax deferral. - Meets statute for job creation, average wage and capital investment levels for Sales & Use Tax, Modified business tax abatements and Sales & Use deferral. - Additional capital investment of $1.2 million for building leasehold improvements. PROFILE Trigg Laboratories is an innovative market leader in the medical device and cosmetic personal lubricant arena; designing, formulating, filling and marketing to consumers around the world. Trigg Laboratories creates new product ideas, develops them into award winning products then formulates, fills and sells them from their FDA registered facility. Source: Trigg Laboratories, Inc. SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND Trigg Laboratories recent strategic plan has the company focusing on creating a presence in the State of Nevada. A significant part of this consideration is the economic incentives offered by the State. A review of their operating costs has shown that they will have lower operating costs in Nevada than they currently have headquartered in Valencia, California. Source: Trigg Laboratories, Inc. REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation Yes 26% Average Wage $20.89 $24.20 Yes 16% Equipment CapEx (SU & MBT) $1,000,000 $1,480,920 Yes 48% Equipment CapEx (PP) $5,000,000 $1,480,920 No -70% INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. Abated to 2% $90,300 Modified Business Tax Abmt. 50% for 4 years $76,700 Personal Property Tax Abmt. 50% for 10 years $47,500 Sales Tax Deferral Up to 60 months -- Total $214,500 JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $0 $1,200,000 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported Total Payroll Supported $57,653,260 $623,775 Total Output Estimate $321,407,490 $1,688,123 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 $510,400 $1,468,900 $1,979,300 Sales $47,600 $1,070,800 $1,118,400 Lodging $0 $29,500 $29,500 State Taxes Property $30,100 $88,100 $118,200 Sales $45,200 $357,500 $402,700 Modified Business $316,200 $347,500 $663,700 Lodging $0 $7,400 $7,400 Total $949,500 $3,369,700 $4,319,200 COST-BENEFIT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar $1,498 $20.13 EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 70%. - Health care package cost per employee - $5,874 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Retirement, Merit Increases, COLA adjustments. NOTES - Percentage of market outside of Nevada: 59%. - The company average hourly wage exceeds the statewide hourly average wage of $ The company is also looking at Texas to relocate their business.

2

3

4

5 Incentive Application Company Name: Trigg Laboratories, Inc. Date of Application: October 7, 2015 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 COMPANY NAME (Legal name under which business will be transacted in Nevada) Trigg Laboratories, Inc. CORPORATE ADDRESS Braxton Avenue MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) Sales & Use Tax Deferral Recycling Real Property Tax Abatement Economic Development Rate Rider CITY / TOWN Valencia Company is an / a: (check one) New location in Nevada Expansion of a Nevada company Startup business in Nevada Train Employees Now (TEN) FEDERAL TAX ID # STATE / PROVINCE ZIP CA CITY / TOWN STATE / PROVINCE ZIP TELEPHONE NUMBER COMPANY CONTACT NAME Simone Buntin ADDRESS simoneb@trigglabs.com WEBSITE COMPANY CONTACT TITLE Chief Financial Officer PREFERRED PHONE NUMBER X207 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 - Nevada Facility Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property PERCENT OF COMPANY'S MARKET OUTSIDE OF NEVADA 59% NAICS CODE / SIC DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Service Provider Distribution / Warehouse / Logistic Manufacturing Other: EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) Jan-2016 INDUSTRY TYPE Cosmetic Lotions PROPOSED / ACTUAL NEVADA FACILITY ADDRESS 4220 Widmill Lane, Suite 100 WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? Texas Section 4 - Site Selection Factors (Optional) Please rate the following in order of importance to the company's business (1 = very low; 5 = very high): CITY / TOWN COUNTY ZIP Las Vegas Clark County Availability of qualified workforce: 5 Utility infrastructure: 5 State and local tax structure: 5 Labor costs: 5 Utility costs: 5 State and local incentives: 5 Real estate availability: 2 Transportation infrastructure: 2 Business permitting & regulatory structure: 5 Real estate costs: 2 Transportation costs: 4 Access to higher education resources: 3 OTHER FACTORS & RATINGS 1

6 Section 5 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.) NEW OPERATIONS / STARTUP - PLANS OVER THE NEXT 10 YEARS EXPANSIONS - PLANS OVER THE NEXT 10 YEARS Part 1. ARE YOU CURRENTLY / PLANNING ON LEASING SPACE IN NV? Yes If No, skip to Part 2. If Yes, continue below: What year(s)? 2016 How much space (sq. ft.)? 70,000 Annual lease cost of space: $504, 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)? Oct-2015 Part 2. ARE YOU CURRENTLY / PLANNING ON BUYING OR BUILDING AN OWNER-OCCUPIED FACILITY IN NV? NO If Yes * : 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 6 - Capital Investment for New Operations / Startup. Part 1. ARE YOU CURRENTLY LEASING SPACE IN NV? 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 NV? 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 NV? 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 6 - 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 will be doing a $1.2M buildout on our new location facility that is currently under construction that would provide jobs for individuals that work in the construction sector. Section 6 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.) NEW OPERATIONS / STARTUP EXPANSIONS HOW MUCH CAPITAL INVESTMENT IS PLANNED? (Breakout below): HOW MUCH CAPITAL INVESTMENT IS PLANNED? (Breakout below): Building Purchase (if buying): Building Hard Costs (if building / making improvements): Land: Equipment Cost: Total: $0 $1,200,000 $1,480,920 $2,680,920 Building Purchase (if buying): Building Hard Costs (if building / making improvements): Land: Equipment Cost: Total: 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.) 2

7 Section 7 - Employment (Fill in either New Operations/Startup or Expansion, not both.) NEW OPERATIONS / STARTUP EXPANSIONS How many full-time equivalent (FTE*) employees will be created by the end of the first fourth quarter of new operations?: 63 Average hourly wage of these new employees: $24.20 How many full-time equivalent (FTE*) employees will be created by the end of the first fourth 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 PTO / Sick / Vacation Bonus Retirement Plan / Profit Sharing / 401(k) Merit increases COLA adjustments Tuition assistance Other: BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary): Section 8 - Employee Health Insurance Benefit Program Is health insurance for employees and an option for dependents offered?: Package includes (check all that apply): Medical Vision Dental Yes (copy of benefit plan must be attached) Other: No Qualified after (check one): Upon employment Three months after hire date Six months after hire date Other: 60 days COST OF HEALTH INSURANCE FOR COMPANY (annual amount per employee): $5,874 Section 9 - Train Employees Now (TEN) (if applicable) PERCENTAGE OF HEALTH INSURANCE COVERAGE: By Company: 70% By Employee: 30% Have you received preapproval from GOED? Number of qualified employees to participate in training program*: Will these new hires be permanent, full-time employees of the company? Is the proposed training plan developed by NVIE complete?** Yes Yes Yes No No No * Employee must be paid at least 80% of statewide average wage at conclusion of the program. **Please attach the NVIE training program as part of this application. All workforce training monies approved at a scheduled GOED Board meeting will be granted to the appropriate educational institution. 3

8

9 Employment Schedule Company Name: (a) Trigg Laboratories, Inc. Number of Positions County: Clark County Directions: Please complete columns (a) through (d) in Section 1 with information on all full time employees that will be hired and employed by the company by the end of the first fourth 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 fourth quarter would be the last day of Q2, 2016 (i.e., June 30, 2016). Attach this form to the Incentives Application. Section 1 - Full-Time Equivalent (FTE) Employees Full-time equivalent represents an employee who works an average of 30 or more hours per week, is eligible for health care coverage, and whose position is a "primary job" (defined in NAC ). Audits of job creation and wage will be based on the information provided in this section. New Hire Position Title/Description (b) ( c ) (d) (e) (f) Average Average Annual Wage Hourly Wage Weekly Hours per Position Total Annual Wages Production Line Worker 26 $ $24, $648,960 Shipping/Packers 6 $ $24, $149,760 Receiving 2 $ $24, $49,920 Accounts Receivable 1 $ $41, $41,600 Accounts Payable 1 $ $41, $41,600 Inbound Call Center 3 $ $22, $68,640 Call Center Supervisor 1 $ $31, $31,200 Graphic Artist 1 $ $49, $49,920 Receptionist 1 $ $22, $22,880 Document Control Specialist 1 $ $49, $49,920 QA/QC Specialist 1 $ $55, $55,307 VP Operations 1 $ $106, $106,018 Sales Representative 1 $ $52, $52,000 Line Lead Supervisor 1 $ $42, $42,515 Shipping Supervisor 1 $ $49, $49,920 Shipping Lead 1 $ $45, $45,760 Administrative Assistant 1 $ $31, $31,200 CFO 1 $ $140, $140,005 CEO 1 $ $549, $549,994 President 1 $ $299, $299,998 Purchasing Agent 1 $ $41, $41,995 Inventory Manager 1 $ $59, $59,405 Vice President 1 $ $104, $104,499 Maintenance Mgr 1 $ $42, $42,515 QA/QC Specialist 1 $ $41, $41,995 Marketing Event Coordinator 1 $ $79, $79,997 Sales Administrator 1 $ $55, $55,203 Sales Assistant 1 $ $45, $45,510 VP Regulatory 1 $ $94, $94,994 Chemist 1 $ $78, $78,000 TOTAL 63 $24.20 $3,171,230

10 Equipment List Company Name: Trigg Laboratories, Inc. County: Clark Directions: Please provide a 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, Note: If approved, the company will monitor and update this list as needed to ensure the incentives granted are for eligible property actually purchased. For guidelines on classifying equipment, visit: tax.nv.gov/localgovt/policypub/archivefiles/personal_property_manuals. Attach this form to the Incentives Application. (a) ( b) (c) (d) Equipment Name/Description # of Units Price per Unit Total Cost Aesus Filling and Labeling Line 1 $350, $350, Borgo Bottle Unscrambler 1 $50, $50, Kline Bottle unscram w puck insert 2x 1 $300, $300, Boiler 1 $45, $45, Bander and labler 1 $45, $45, Carton Erector, Taper and Labler 1 $30, $30, Air Compressor 1 $35, $35, Auto Loading Bivans Cartoner 1 $111, $111, Thermal Transfer Lot encoder for PE 1 $15, $15, Tank Mixers 1 $12, $12, Homogenizing Grinder for Emulsions 1 $28, $28, DI Water System (concurrent Prod) 1 $15, $15, Small Steam kettle 1 $7, $7, Weigh Scale Floor scale 5 $1, $7, Pallet Wraper w/ scale shipping 1 $9, $9, Plates for PE part 3 sets 3 $2, $7, Forklifts Hi Pick 2 $10, $20, Electric Pallet Jacks walk along 2 $15, $30, Sissor Lift 1 $15, $15, Transfer Pumps 4 $25, $100, Induction Sealer 3 $15, $45, Centrifugal Pump 2 $7, $15, Network Racks, Switches, Server, Storage 1 $20, $20, Phone System 1 $20, $20, Sage ERP Upgrade 1 $50, $50, Computers/Monitors 5 $10, $50, Office Desks 5 $1, $7, Office Chairs 5 $ $3, Conference Table/Chairs 1 $4, $4, Electric Floor Cleaner 1 $30, $30, Drum Pumps 3 $1, $3, TOTAL EQUIPMENT COST $1,480,920.00

11

12

13

14

15

16

17

18

19

20