COUNTY FTZ APPLICATION NARRATIVE CONAIR EXTENSION 2018.PDF

Conair Corporation
Request to Expand Foreign Trade Subzone No. 75A
10691 & 10669 W. Vista Avenue, Glendale 85307
Property Owner/Applicant: Legal Representative:
Conair Corporation Withey Morris, PLC
7475 N Glen Harbor Blvd Attorney: Adam Baugh
Glendale AZ 85307 2525 E. Arizona Biltmore Circle #A-212
Phoenix, Arizona 85016
Phone: (602)212-1787
Email: adam@Witheymorris.com

Conair Corporation
Foreign Trade Subzone 75A — Expansion Application
Application Requirements
1. Name of Applicant
Conair Corporation
2. Name, Address, and Telephone of Contact Person
Withey Morris, PLC
Adam Baugh
2525 E. Arizona Biltmore Circle #A-212, Phoenix, Arizona 85016
Phone: (602)212-1787
Email: adam@witheymorris.com
3. Address of proposed FTZ location and designation
Conair Corporation, 10691 & 10669 W. Vista Avenue, Glendale, Arizona 85307
Subzone 75A
4. Company Information
a. Detailed Company Overview
Conair is a significant contributor to the region's economy and specializes in the manufacture
and distribution of consumer products. The company currently employs about 450 people in
Glendale. Their original distribution center opened in 1992 and was expanded in 2009 and
2017. This third expansion will allow for additional storage capacity. See map of existing
and proposed expansion area at Tab 1.
Employment associated with the company's expansion in the FTZ brings new wealth into the
local economy. Through local vendor purchases and spending by employees, the Conair
expansion also supports jobs and payroll at related local supplier and consumer businesses
throughout the region. Conair is a major employer in Glendale and a nameplate company
that supports other economic development in the city.
b. Description of Business Activity
Conair is one of the largest and most diversified consumer products companies in the world.
Conair is a global company that manufactures, distributes and sells professional salon
products, personal care products, consumer and commercial kitchen appliances, and
cookware under more than twenty-five brand names in over one-hundred and twenty
countries around the world. The expansion will allow new storage at this location.
c. Project Scope
Conair recently expanded their existing distribution facilities in the Glen Harbor Business
Park by constructing a new building with more than 815,000 square feet which opened last
year. That expansion resulted in a capital investment of $51 million in land, building and
equipment, plus 300 new jobs with an annual payroll of $9.6 million, or an estimated average
11Page

Conair Corporation
Foreign Trade Subzone 75A — Expansion Application
salary of $31,973. Through the multiplier effect, approximately 169 additional jobs
(including supply chain jobs plus jobs related to employee spending) and $7.5 million in
annual payroll are supported at other local businesses in Maricopa County. The existing
Conair Foreign Trade Zone area covers approximately 100 acres.
This application only requests that the Foreign Trade Zone acres be expanded by
approximately 3.18 acres. This area would have been included with the FTZ expansion in
2017 but some unforeseen items delayed this small area till present day.
The purpose of the expansion is to allow for more storage capacity. The storage area is a FTZ
requirement where distributors can drop freight used in the manufacturing process under the
control and authority of the FTZ boundary. This helps expedite manufacturing processes and
avoids prohibitive off-site storage of freighted goods and wares. This minimal request is
necessary for the entire Conair campus to operate in a cohesive, reasonable fashion.
5. Public Benefit
The proposed minor expansion of Subzone 75A will provide benefits to Glendale and the
surrounding area. The land has been vacant for some time despite being zoned for industrial
land uses since 1984. This new storage area will support the latest expansion and will improve
an otherwise vacant property.
This storage area is an expansion upon Conair's latest construction (1.06 million sf) which has
been a significant addition to the existing industrial business park. Some highlights of that most
recent expansion included direct and indirect growth in employment, population, income, and
consumption. In total, the Conair expansion created an annual economic impact of $43.0 million
in Maricopa County, or $408.9 million over 10 years. The company's expanded operations
directly and indirectly support approximately 469 jobs (including 300 direct jobs) and generate
$17.1 million in new payroll or personal income in the county each year. The 300 direct jobs
and 169 indirect jobs associated with Conair's expansion in Glendale could support a population
(including families) of about 1,050 people in Maricopa County, creating demand for retail,
housing and other commerce.
With $47.0 million in capital investment, Conair's 2017 expansion generates new tax revenues to
the City of Glendale, Maricopa County and local schools, in addition to the economic impacts
described above. Over the next ten years, the company could generate $1.1 million in local sales
and franchise taxes (city and county) and $1.5 million in state sales tax, including construction
sales tax and on-going taxes on utilities. In addition, Conair would generate $1.9 million in new
property tax revenues to the city, county, schools and other special districts over the next ten
years. These property tax revenues on new buildings and equipment reflect the FTZ
reclassification.
In addition to revenues generated by the company, Conair employees will also generate property
and sales tax revenues in Maricopa County. Employee-based revenues from new direct jobs are
estimated at $613,000 per year, including $73,000 in revenues to the county and other special
2IPage

Conair Corporation
Foreign Trade Subzone 75A — Expansion Application
districts, $63,000 to the City of Glendale, $105,000 in revenues to local schools and $372,000 to
the state.
6. Estimated Start Date of Operations
Conair has operated within the existing Subzone 75A since 1992. Conair anticipates
commencing operations within the expanded area in 2018.
7. Estimated or actual assessed valuations for zone's real property and total personal
property
Conair's tax consultant analyzed the tax valuations of the expansion parcel to identify its benefit.
Presumably, Conair will not expand its operations without the FTZ approval. Thus, the tax
consultant looked at the 2017 LPV of the vacant land without FTZ approval and compared it to
the new 2017 LPV with FTZ and the new improvements. The comparison shows that the tax
difference is virtually the same. Under the new tax reclassification, the expansion area will
generate only $290.00 less to Maricopa County than it currently does today. See 2018 Tax
Comparison for APN 142-59-073 and -074 at Tab 2.
As mentioned previously, this area should have been included with the FTZ expansion in 2017
but unforeseen items delayed this small area until present day. Nonetheless, when considered
with the much larger FTZ improvements from 2017, of which this should have been a part, the
overall development generates significantly more taxes with a structure with FTZ approval, then
no structure and no FTZ status. See 2017 Tax Comparison for APN 142-59-002C at Tab 3.
8. Environmental or Displacement Issues
The applicant is not aware of any environmental or displacement issues. The site has always
been intended, planned, and zoned for industrial buildings and land uses like the type proposed
by Conair.
9. Concurrence Letters (Tab 4)
• Peoria Unified School District
• MIHS
• CAP
• Maricopa Community Colleges
• West Mec
31P age

TAB 1

FTZ
Expansion Area
Existing FTZ
u
r
75A
Subzone

TAB 2

Actual Difference Once Full Cash and Limited are Equal
2018 142-59-073 Maricopa % of Total
County
Original Value without FTZ (25,785 Assessed Value) $361 10.00%
New LPV with FTZ (17,364) $239 10.0%
Tax Difference $122
2018 142-59-074 Maricopa % of Total
County
Original Value without FTZ (32,625 Assessed Value) $449 10.00%
New LPV with FTZ (20,420) $281 mom .
Tax Difference $168
TOTAL $290 1


'
221,880 42,222 179,658
TOTAL
$ $ $
Total TV% 7.31%
of
%
16,219 3,086 13,133
Special Districts
$ $ $
Total 10.22% 119.22A
of
%
1 1
22,676 4.314 18,362
Community
College District $ $ $
I I
Total 5010% 58.10%
of
%
Unified District 124,475 23.687 100,7a1 ---
Peoria School $ $
1 I
Total 14.99% 14.99%
of
%
I I
33,260 6,329
of Glendale Il
City $ S ...$
I
Total 9.77% 9.77%
of
%
1
21,678 125 4, 17.553
Maricopa County
$ S 5 1
Total
of 3.50% 3.50%
%
1 1
7,766 1,478 6,288
Equaliztion
State $ S '--$
I
Value) Value)
Built
Assessed Assessed Not
are
(280,523
(1.547,888 Structures
FTZ
142-59-002C FTZ if
with without
Difference
LPV LPV
2017 New New Tax


'PEORIA
UNIFIED SCHOOL DISTRICT
March 15, 2018
Mr. Andrew McGilvray
Executive Secretary
Foreign Trade Zones Board
U.S. Department of Commerce
1401 Constitution Avenue, NW
Room 2111
Washington, D.C. 20230
Dear Mr. McGilvray:
The Peoria Unified School District submits this letter to express "no-objection" to
the Conair Corporation request for an Extended Foreign Trade Zone and support the
Foreign Trade Zone Board to approve the requested boundary change.
The District believes that the proposed expansion will provide a number of benefits
to the community, including the economic benefits to the City of Glendale and the
State of Arizona.
Should you have any questions, please feel free to contact the District at 623-486-
6000.
Sincerely,
)1/64
CI?
Linda Palles Thompson Monica Ceja Martinez
Interim Superintendent Governing Board President
Peoria Unified School District No. 11 Peoria Unified School District No. 11

MARICOPA INTEGRATED HEALTH SYSTEM
Maricopa County Special Health Care District
Board of Directors
Chairman February 28, 2018
Susan Gerard
District $
Maricopa Medical Center
2601 E. Roosevelt Street Mr. Andrew McGilvray
Phoenix, Arizona 85008
Phone: 602-344-1241 Executive Secretary
Fax: 602-344-0892
Foreign-Trade Zones Board
Vice Chairman U.S. Department of Commerce
Mary A. Harden, RN. 1401 Constitution Avenue, NW
District 1
Room 2111
2601 Marlcopa E. Roosevelt Medical Center Street Washington, D.C. 20230
Phoenix, Arizona 86008
Phone: 602-344-1241
Fax: 602-344-0892 Re: Foreign-Trade Subzone 75A
Conair Corporation
Director
Mark Dewane Request for Boundary Modification
District 2 Glendale, Arizona
Maribor:la Medical Center
2601 E. Roosevelt Street
Phoenix, Arizona 85008
Fax: Phone: 602-344-0892 602-344-1241 Dear Mr. McGilvray:
Director The Maricopa County Special Health Care District understands that Conair
District Elbert Bicknell 4 Corporation is applying for an expanded Foreign-Trade Subzone No. 75A in
Marlcopa Medical Center Glendale, Arizona. We understand that activated foreign-trade zones in the State of
Phoenix, 2601 E. Roosevelt Arizona 85008 Street Arizona may affect real and personal property tax classifications under Arizona
Fax: Phone: 602-344-0892 602-344-1241 State law. We have discussed this with representatives of Conair. We do not object
to the company requesting an expanded Foreign-Trade Subzone. We understand
Director
Mary Rose Wilcox that this letter will be included as part of the application.
District 5
Maricopa Medical Center
2601 E Roosevelt Street
Phoenix, Arizona 86008 Sincerely,
Phone: 602-344-1241
Fax: 602-344-0892
Chief Governance Officer
and Clerk of the Board
Melanie Talbot Susan Gerard,
2601 Marlcopa E. Roosevelt Medical Center Street Chairman, Board of Directors
Phone: Phoenix, 602-344-5177 Arizona 85008 Maricopa County Special Health Care District
Fax: 602-344-0892
wwwmihs.arg

CENTRAL ARIZONA PROJECT
February 8, 2018
Mr. Andrew McGilvray
Executive Secretary
Foreign Trade Zone Board
U.S. Department of Commerce
1401 Constitution Avenue, NW, Room 21013
Washington, D.C. 20230
Re: Foreign Trade Subzone 75A
Conair Corporation Request for Boundary Expansion
10691 W Vista Ave., Glendale AZ 85307 (APN 142-59-074) &
10669 W Vista Ave., Glendale AZ 85307 (APN 142-59-073)
Dear Mr. McGilvray:
The Central Arizona Project (CAP) submits this letter to express "no-objection" to the
proposed FTZ designation for the Conair Corporation Boundary Expansion request.
We understand that the designated property will be reclassified as Class 6 property
for assessment purposes.
We support the Application for inclusion of the Conair Corporation Boundary
Expansion as part of Foreign Trade Subzone 75A.
Sincerely,
Theodore C. Cooke, D.B.A
General Manager
P.O. Box 43020— Phoenix, AZ 85080-3020 • 23636 North Seventh Street — Phoenix, AZ 85024 • 623-869-2333 • www.cap-az.com

MARICOPA
120P Office of the Chancellor
COMMUNITY COLLEGES
2411 West 14th Street, Tempe, AZ. 85281 • T: 480.731.8000 • F: 480.731.8120 • www.maricopa.edu
February 5, 2018
Mr. Andrew McGilvray
Executive Secretary
Foreign-Trade Zones Board
U.S. Department of Commerce
1401 Constitution Avenue, NW
Room 2111
Washington, D.C. 20230
Re: Foreign-Trade Subzone 75A
Conair Corporation
Request for Boundary Modification
Glendale, Arizona
Dear Mr. McGilvray:
We understand Conair Corporation is applying for an expanded Foreign—Trade
Subzone No. 75A in Glendale, Arizona. We understand that activated foreign—trade
zones in the State of Arizona may affect real and personal property tax classifications
under Arizona State law. We have discussed this with representatives of Conair. We
do not object to the company requesting an expanded Foreign-Trade Subzone. We
understand that this letter will be included as part of the application.
Sincerely,
'Ale,
Maria Harper-Marinick, Ph. D.
Chancellor
Maricopa County Community College District
Chandler-Gilbert I Estrella Mountain I GateWay I Glendale I Maricopa Corporate College 1 Mesa
Paradise Valley I Phoenix I Rio Salado 1 Scottsdale I South Mountain

Westi-MEC
February 5, 2018
Mr. Andrew McGilvray
Executive Secretary
Foreign-Trade Zones Board
U.S. Department of Commerce
1401 Constitution Avenue, NW
Room 2111
Washington, D.C. 20230
Re: Foreign-Trade Subzone 75A
Conair Corporation
Request to Expand Subzone
Glendale, Arizona
Dear Mr. McGilvray:
We understand Conair Corporation is applying for an expanded Foreign—Trade Subzone No.
75A in Glendale, Arizona. We understand that activated foreign—trade zones in the State of
Arizona may affect real and personal property tax classifications under Arizona State law. We
have discussed this with representatives of Conair. We do not object to the company
requesting an expanded Foreign-Trade Subzone. We understand that this letter will be
included as part of the application.
,--
Superintendent Gregory Donovan
West-MEC
623.738.0022 Western Maricopa Education Center
5487 N. 99th Ave
www.west-mec.org Glendale, AZ 85305