MGC- SUMMARY SUPPORT FOR AGENDA 11.05.2025 FINAL.DOCX
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FOREIGN TRADE ZONE REQUEST FOR NO-OBJECTION MGC Pure Chemicals America, INC. Mesa Foreign Trade Zone, No. 221 Located at 6560 South Mountain Rd., Mesa, AZ 85212, parcels 304-34-037A, 304-34-035B, 304- 34-037C, 304-34-037D, 304-34-037E owned by MGC Pure Chemicals America, Inc. with offices at 6560 South Mountain Rd., Mesa, AZ 85212. Summary from the owner’s representative MGC Pure Chemicals America, Inc. (MPCA) is applying Foreign Trade Zone (FTZ) Subzone designation for the property located in District 2 at 6560 South Mountain Rd., Mesa, AZ 85212, parcels 304-34-037A, 304-34-035B, 304-34-037C, 304-34-037D, 304-34-037E to be included in the Mesa Foreign Trade Zone, No. 221. FTZ designation will allow reclassification of this property from Class 2 with a tax assessment ratio of 16% to Class 6 with a tax assessment ratio of 5% under A.R.S. §42-12006. MPCA imports and produces refined chemicals that are used in the manufacturing of semiconductors. MPCA has manufacturing facilities in Oregon, Arizona and Texas and plans to expand its manufacturing footprint in Mesa, AZ. The FTZ will facilitate MPCA's manufacturing and import processes by allowing the company to import raw materials without the immediate cost of tariffs. This operational flexibility will enable MPCA to optimize its supply chain, reduce costs, and enhance its competitive position in the market. Status of Taxing Jurisdiction Concurrence Letters o City of Mesa – Received o Queen Creek Unified – Received o East Valley Institute of Technology (EVIT) – Received o Maricopa County Community College District – Received o Maricopa County Special Health Care District (Valleywise Health) – Received o Central Arizona Conservation District (CAP) – Received o Electrical District No. 6 – Received. Fiscal and Economic Impact Economic Impact estimates are provided by Greater Phoenix Economic Council (GPEC). MGC Pure Chemicals America, Inc. operations will create approximately 120 direct and 225 indirect jobs over the next 10 years. Estimated $2.15 million in direct tax revenues and $1.74 million in indirect tax revenues for a total of $3.9 million in tax revenue to Maricopa County over a 10-year period. Estimated $65.8 million of direct personal income and an additional $157.4 million of indirect personal income for a total of $234.9 million to Maricopa County over a 10-year period. Estimated $823.4 million in direct economic output and an additional $486.2 million in indirect output for a total of $1.3 billion to Maricopa County over a 10-year period. Property Tax Impact Property taxes currently collected for these parcels is approximately $20,314.06 annually for Maricopa County’s portion as a Class 2 property. When the project is completed, property taxes will increase to approximately $100,352 annually for Maricopa County’s portion as a Class 6 property.