APPLE INC- SUMMARY SUPPORT FOR AGENDA.DOCX
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FOREIGN TRADE ZONE REQUEST FOR NO-OBJECTION APPLE, INC. Mesa Foreign Trade Zone, No. 221 Located at 3740 S. Signal Butte Rd, Mesa, AZ 85212, parcel 314-10-776 owned by Platypus Development LLC with offices at 2375 E Camelback Rd 700, Phoenix, AZ 85016. Platypus Development is a wholly owned subsidiary of Apple Inc. Summary from the owner’s representative Apple Inc. is applying for expansion of their current Foreign Trade Zone (FTZ) Subzone designation for the property located in District 2 at 3740 S. Signal Butte Rd, Mesa, AZ 85212, parcel 314-10-776 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. Apple Inc. currently uses the Subzone for high-tech manufacturing and will utilize the expanded acreage to construct an addition that will be used for manufacturing and/or storage of FTZ goods. The expansion of the Subzone to the adjacent 7 acres, will allow Apple Inc. to continue to run their expanding manufacturing operation rather than seeking another location that has more space. This keeps the jobs (direct/indirect) and the investment of Apple within the City of Mesa and in Maricopa County. The total capital investment planned for the facility is approximately $60 million in real property and $100 million in personal property for a total capital investment of $160 million. Apple Inc. expects at the end of 10 years to create approximately 50 direct jobs with an annual payroll of $4.5 million. Status of Taxing Jurisdiction Concurrence Letters o City of Mesa – Received o Gilbert Public Schools – 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). Apple Inc. operations will create approximately 50 direct and 68 indirect jobs over the next 10 years, with estimated combined annual payroll of $9.2 million at the end of 10 years. Estimated $1.1 million in direct tax revenues and $300.5 thousand in indirect tax revenues for a total of $1.4 million in tax revenue to Maricopa County over a 10-year period. Estimated $45.0 million of direct personal income and an additional $46.9 million of indirect personal income for a total of $91.9 million to Maricopa County over a 10-year period. Estimated $143.4 million in direct economic output and an additional $137.9 million in indirect output for a total of $281.3 million to Maricopa County over a 10-year period. Property Tax Impact Property taxes currently collected for these parcels is approximately $2,349 annually for Maricopa County’s portion as a Class 2 property. When the project is completed, property taxes will increase to approximately $44,920 annually for Maricopa County’s portion as a Class 6 property.