MEDLINE MARICOPA IMPACT ANALYSIS (FTZ VS NON-FTZ FULL).PDF

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2 N. Central Ave. MEMBER COMMUNITIES
Suite 2500 MARICOPA COUNTY CAREFREE FOUNTAIN HILLS GOODYEAR PHOENIX TEMPE
Phoenix, AZ 85004 APACHE JUNCTION CASA GRANDE GILA BEND MARICOPA QUEEN CREEK TOLLESON
Greeter Phoenix 602.256.7700 AVONDALE CHANDLER GILBERT MESA SCOUSDALE VVICKENBURG
ECONOMIC COUNCIL gpec.org BUCKEYE EL MIRAGE GLENDALE PEORIA SURPRISE YOUNGTOWN

FTZ IMPACT ANALYSIS AT 8787 W. BUCKEYE RD, PHOENIX Greater Phoenix
ECONOMIC COUNCIL
ECONOMIC IMPACT ANALYSIS
September 2016
Overview
GPEC received a request from 8787 W. Buckeye Rd, Phoenix for an analysis of their projected economic
impact on Maricopa County. The FTZ Impact Analysis will analyze the next 10 years to demonstrate the
value the company is projected to generate in the region.
Based on the assumptions outlined below, the company will generate $884,230 in direct tax revenues and
$1.08 million in total tax revenue to Maricopa County over a 10 year period if 8787 W. Buckeye Rd is
granted FTZ benefits. The company will generate $1.67 million in direct tax revenues and $1.87 million in
total tax revenue to Maricopa County if the company is not granted FTZ benefits.
In Maricopa County over 10-years the company will directly create an estimated $22.4 million of personal
income and a total of $36.04 million. Over a 10-year period the company is projected to create $88.8
million in economic output for Maricopa County, with $50.4 million in direct economic output.
Over this 10-year period the company will directly create 60 jobs and create a total of 93 in Maricopa
County.
Assumptions:
Total Employment at the end of 5 Years: 60 people
Payroll at the end of 5 Years: $2,400,000
Total Square Feet of Property: 630,000 SF
Assumed Construction Cost: $28,000,000
Assumed Land Cost: $7,000,000
Total Personal Property Investment: $2,000,000
2 N. Central Ave. Suite 2500 I Phoenix, AZ 85004 I 602.256.7700 I gpec.org

FTZ IMPACT ANALYSIS AT 8787 W. BUCKEYE RD, PHOENIX Greater Phoenix
ECONOMIC IMPACT ANALYSIS ECONOMIC COUNCIL
September 2016
10-Year Economic Impact
See the tables below for the 10-year economic impact analysis for Maricopa County. The impact
is broken down into direct and indirect impact, followed by the total. The direct impact is
populated by the information provided by the company, while the indirect impact is calculated by
adding consumer and supplier revenues/benefits from the Greater Phoenix Economic Impact
Model.
10-Year Economic Impact to Maricopa County (FTZ)
ECONOMIC OUTPUT REVENUES
g
Direct 60 $22,400,000 $50,403,298 $884,230
Indirect 33 $13,643,819 $38,345,851 $200,541
Total 93 $36,043,814 $88,749,149 $1,084,771
10-Year Economic Impact to Maricopa County (Non-FTZ)
JOBS PERSONAL INCOME ECONOMIC OUTPUT REVENUES
Direct 60 $22,400,000 —111 $50,403,298 $1,666,902
Indirect 33 $13,643,819 $38,345,851 $200,541
Total 93 $36,043,814 $88,749,149 $1,867,444
If the company is granted FTZ Benefits, Maricopa County can expect to collect $782,673 less in
revenues.
2 N. Central Ave. Suite 2500 I Phoenix, AZ 85004 1602.2567700 I gpee org

FTZ IMPACT ANALYSIS AT 8787 W. BUCKEYE RD, PHOENIX Greater Phoenix
ECONOMIC COUNCIL
FTZ ECONOMIC IMPACT ANALYSIS
September 2016
10-Year Economic Impact to Maricopa County (Direct)
YEAR JOBS PERSONAL INCOME ECONOMIC OUTPUT REVENUES
2017 30 $1,500,000 MI $3,375,221 1 $193,508
2018 50 $1,800,000 $4,050,265 $69,306
2019 60 $2,300,000 $5,175,339 $76,224
2020 60 $2,400,000 $5,400,353 $76,773
2021 60 $2,400,000 $5,400,353 $78,530
2022 60 $2,400,000 $5,400,353 $78,325
2023 60 $2,400,000 $5,400,353 $78,154
2024 60 $2,400,000 $5,400,353 $77,984
2025 60 $2,400,000 $5,400,353 $77,763
2026 60 $2,400,000 $5,400,353 $77,662
Total 60 $22,400,000 $50,403,298 $884,230
10-Year Economic Impact to Maricopa County (Indirect)
EAR JOB ERSONAL INCOME ECONOMIC OUTPUT REVENUES
2017 20 • $913,648 I 1 $2,567,803 Mil $13,429
2018 25 $1,096,378 $3,081,363 $16,115
2019 32 $1,400,927 $3,937,297 $20,591
2020 33 $1,461,838 $4,108,484 $21,487
2021 33 $1,461,838 $4,108,484 $21,487
2022 33 $1,461,838 $4,108,484 $21,487
2023 33 $1,461,838 $4,108,484 $21,487
2024 33 $1,461,838 $4,108,484 $21,487
2025 33 $1,461,838 $4,108,484 $21,487
2026 33 $1,461,838 $4,108,484 $21,487
Total 33 $13,643,819 $38,345,851 $200,541
10-Year Economic Impact to Maricopa County (Total)
JOBS PERSONAL INCOME ECONOMIC OUTPUT REVENUES
2017 51 II $2,413,648 $5,943,023 $206,937
2018 • 75 $2,896,378 $7,131,628 $85,421
2019 92 $3,700,927 $9,112,636 $96,815
2020 93 $3,861,837 $9,508,837 $98,260
2021 93 $3,861,837 $9,508,837 $100,017
2022 93 $3,861,837 $9,508,837 $99,811
2023 93 $3,861,837 $9,508,837 $99,641
2024 93 $3,861,837 $9,508,837 $99,471
2025 93 $3,861,837 $9,508,837 $99,250
2026 93 $3,861,837 $9,508,837 $99,149
Total 93 36,043,814 $88,749,149 $1,084,771
2 N. Central Ave. Suite 2500 I Phoenix, AZ 85004 I 602.256.7700 I gpee org

FTZ IMPACT ANALYSIS AT 8787 W. BUCKEYE RD, PHOENIX Greater Phoenix
ECONOMIC COUNCIL
NON-FTZ ECONOMIC IMPACT ANALYSIS
September 2016
10-Year Economic Impact to Maricopa County (Direct)
YEAR JOBS PERSONAL INCOME ECONOMIC OUTPUT
2017 30 $1,500,000 MI $3,375,221 $270,451
2018 50 $1,800,000 $4,050,265 $147,157
2019 60 $2,300,000 $5,175,339 $154,721
2020 60 $2,400,000 $5,400,353 $155,732
2021 60 $2,400,000 $5,400,353 $157,805
2022 60 $2,400,000 $5,400,353 $157,456
2023 60 $2,400,000 $5,400,353 $156,843
2024 60 $2,400,000 $5,400,353 $156,231
2025 60 $2,400,000 $5,400,353 $155,435
2026 60 $2,400,000 $5,400,353 $155,071
Total 60 $22,400,000 $50,403,298 $1,666,902
10-Year Economic Impact to Maricopa County (Indirect)
EAR JOB ERSONAL INCOME ECONOMIC OUTPUT REVENUES
2017 20 • $913,648 I 1 $2,567,803 Mil $13,429
2018 25 $1,096,378 $3,081,363 $16,115
2019 32 $1,400,927 $3,937,297 $20,591
2020 33 $1,461,838 $4,108,484 $21,487
2021 33 $1,461,838 $4,108,484 $21,487
2022 33 $1,461,838 $4,108,484 $21,487
2023 33 $1,461,838 $4,108,484 $21,487
2024 33 $1,461,838 $4,108,484 $21,487
2025 33 $1,461,838 $4,108,484 $21,487
2026 33 $1,461,838 $4,108,484 $21,487
Total 33 $13,643,819 $38,345,851 $200,541
10-Year Economic Impact to Maricopa County (Total)
JOBS PERSONAL INCOME ECONOMIC OUTPUT REVENUES
2017 51 II $2,413,648 $5,943,023 $283,880
2018 75 $2,896,378 $7,131,628 $163,272
2019 • 92 $3,700,927 $9,112,636 $175,312
2020 93 $3,861,837 $9,508,837 $177,219
2021 93 $3,861,837 $9,508,837 $179,291
2022 93 $3,861,837 $9,508,837 $178,942
2023 93 $3,861,837 $9,508,837 $178,330
2024 93 $3,861,837 $9,508,837 $177,717
2025 93 $3,861,837 $9,508,837 $176,921
2026 93 $3,861,837 $9,508,837 $176,558
Total 93 36,043,814 $88,749,149 $1,867,444
2 N. Central Ave. Suite 2500 I Phoenix, AZ 85004 I 602.256.7700 I gpee org

FTZ IMPACT ANALYSIS AT 8787 W. BUCKEYE RD, PHOENIX Greater Phoenix
ECONOMIC COUNCIL
FTZ REVENUE ANALYSIS
September 2016
Direct Revenue (Maricopa County)
STATE SHARED
YEAR SALES TAX PROPERTY TAX UTILITY TAX TOTAL REVENUES
REVENUES
2017 $144,420 $37,181 $4,415 $7,492 $193,508
2018 $9,700 $41,233 $5,887 $12,486 $69,306
2019 $11,640 $42,978 $6,623 $14,983 $76,224
2020 $11,640 $42,792 $7,358 $14,983 $76,773
2021 $11,640 $42,636 $9,272 $14,983 $78,530
2022 $11,640 $42,430 $9,272 $14,983 $78,325
2023 $11,640 $42,260 $9,272 $14,983 $78,154
2024 $11,640 $42,090 $9,272 $14,983 $77,984
2025 $11,640 $41,868 $9,272 $14,983 $77,763
2026 $11,640 $41,768 $9,272 $14,983 $77,662
Total $247,237 $417,235 $79,912 $139,846 $884,230
Indirect Revenue (Maricopa County)
STATE SHARED
YEAR SALES TAX PROPERTY TAX UTILITY TAX TOTAL REVENUES
REVENUES
2017 $4,048 $4,171 $0 $5,210 $13,429
2018 $4,857 $5,005 $0 $6,252 $16,115
2019 $6,206 $6,396 $0 $7,989 $20,591
2020 $6,476 $6,674 $0 $8,337 $21,487
2021 $6,476 $6,674 $0 $8,337 $21,487
2022 $6,476 $6,674 $0 $8,337 $21,487
2023 $6,476 $6,674 $0 $8,337 $21,487
2024 $6,476 $6,674 $0 $8,337 $21,487
2025 $6,476 $6,674 $0 $8,337 $21,487
2026 $6,476 $6,674 $0 $8,337 $21,487
Total $60,444.1 $62,288 $0 $77,809 $200,541
Total Revenue (Maricopa County)
STATE SHARED
YEAR SALES TAX PROPERTY TAX UTILITY TAX TOTAL REVENUES
REVENUES
2017 $148,467 $41,352 $4,415 $12,702 $206,937
2018 $14,557 $46,239 $5,887 $18,739 $85,421
2019 $17,846 $49,374 $6,623 $22,973 $96,815
2020 $18,116 $49,465 $7,358 $23,320 $98,260
2021 $18,116 $49,309 $9,272 $23,320 $100,017
2022 $18,116 $49,104 $9,272 $23,320 $99,811
2023 $18,116 $48,934 $9,272 $23,320 $99,641
2024 $18,116 $48,763 $9,272 $23,320 $99,471
2025 $18,116 $48,542 $9,272 $23,320 $99,250
2026 $18,116 $48,441 $9,272 $23,320 $99,149
Total $307,681 $479,524 $79,912 $217,654 $1,084,771
2 N. Central Ave. Suite 2500 I Phoenix, AZ 85004 I 602.256.7700 I gpee org

FTZ IMPACT ANALYSIS AT 8787 W. BUCKEYE RD, PHOENIX Greater Phoenix
ECONOMIC COUNCIL
NON-FTZ REVENUE ANALYSIS
September 2016
Direct Revenue (Maricopa County)
STATE SHARED
YEAR SALES TAX PROPERTY TAX UTILITY TAX TOTAL REVENUES
REVENUES
2017 $144,420 $114,124 $4,415 $7,492 $270,451
2018 $9,700 $119,084 $5,887 $12,486 $147,157
2019 $11,640 $121,475 $6,623 $14,983 $154,721
2020 $11,640 $121,751 $7,358 $14,983 $155,732
2021 $11,640 $121,910 $9,272 $14,983 $157,805
2022 $11,640 $121,561 $9,272 $14,983 $157,456
2023 $11,640 $120,949 $9,272 $14,983 $156,843
2024 $11,640 $120,336 $9,272 $14,983 $156,231
2025 $11,640 $119,540 $9,272 $14,983 $155,435
2026 $11,640 $119,177 $9,272 $14,983 $155,071
Total a $247,237 $1,199,907 $79,912 $139,846 $1,666,902
Indirect Revenue (Maricopa County)
STATE SHARED
YEAR SALES TAX PROPERTY TAX UTILITY TAX TOTAL REVENUES
REVENUES
2017 mm- $4,048 71m- $4,171 $0 $5,210 $13,429
2018 $4,857 $5,005 $0 $6,252 $16,115
2019 $6,206 $6,396 $0 $7,989 $20,591
2020 $6,476 $6,674 $0 $8,337 $21,487
2021 $6,476 $6,674 $0 $8,337 $21,487
2022 $6,476 $6,674 $0 $8,337 $21,487
2023 $6,476 $6,674 $0 $8,337 $21,487
2024 $6,476 $6,674 $0 $8,337 $21,487
2025 $6,476 $6,674 $0 $8,337 $21,487
2026 $6,476 $6,674 $0 $8,337 $21,487
Total dl $60,444 ii $62,288 $0 $77,809 $200,541
Total Revenue (Maricopa County)
STATE SHARED
YEAR SALES TAX PROPERTY TAX UTILITY TAX TOTAL REVENUES
REVENUES
2017 $148,467 $118,295 $4,415 $12,702 $283,880
2018 $14,557 $124,090 $5,887 $18,739 $163,272
2019 $17,846 $127,871 $6,623 $22,973 $175,312
2020 $18,116 $128,425 $7,358 $23,320 $177,219
2021 $18,116 $128,584 $9,272 $23,320 $179,291
2022 $18,116 $128,235 $9,272 $23,320 $178,942
2023 $18,116 $127,622 $9,272 $23,320 $178,330
2024 $18,116 $127,010 $9,272 $23,320 $177,717
2025 $18,116 $126,214 $9,272 $23,320 $176,921
2026 $18,116 $125,850 $9,272 $23,320 $176,558
Total $307,681 $1,262,196 $79,912 $217,654 $1,867,444
2 N. Central Ave. Suite 2500 I Phoenix, AZ 85004 I 602.256.7700 I gpee org

IMPACT ANALYSIS AT 8787 UCKEYE RD, 'ENIX Greater Phoenix
ECONOMIC IMPACT ANALYSIS ECONOMIC COUNCIL
September 2016
About GPEC Economic Impact Model
The Greater Phoenix impact model calculates economic and revenue impacts of new business in
the region. The underlying theory behind this regional model is that all communities benefit when
a new business locates in the region, both in terms of employed residents and new revenues. The
purpose of the model is to show how this distribution of economic benefits may occur.
Economic Impact
The impact model uses county-level multipliers from the Minnesota IMPLAN Group for Maricopa
County to calculate direct and indirect impact on specific communities in the Greater Phoenix
region. The model also calculates economic impact to the county and state economies in terms
of new jobs, output, and revenue generated. In addition to jobs, new businesses create new
consumer spending throughout. The payroll from the new businesses can be converted into
effective buying income. On a regional basis, effective buying income is distributed across retail
and service categories based on spending patterns from the Bureau of Labor Statistics.
Revenue Impact
Direct revenue impacts include revenues generated directly by the businesses, based on project
information such as real property values, employment, direct sales, and local and nonlocal
purchases. Additional revenues generated by related supplier and consumer jobs, and supported
residents are included in the indirect and total impact results. All revenue projections are in
current dollars.
Disclaimer
The results from this analysis suggest only one possible scenario based on given project
parameters and assumptions, and do not exclude other development possibilities under different
assumptions. The economic impact model serves as a tool for basic quantitative evaluations for
economic development projects. The results are based on the current economic structure of the
communities, and current tax rates. The results of the model are order-of-magnitude estimates,
and are intended only as a general guide as to show how businesses and development projects
may impact the region.
2 N. Central Ave. Suite 2500 I Phoenix, AZ 85004 I 602.256.17D0 I gpee.org

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