Economic Impact Report

ECONOMIC AND REVENUE IMPACTS 
OF PROJECT DYNASTY 
GLENDALE, ARIZONA 
 
 
 
 
 
 
 
 
JANUARY 2022 
 
 
 
 
PREPARED BY: 
 
APPLIED ECONOMICS 
11209 N. TATUM BLVD, SUITE 225 
PHOENIX, AZ  85028

2
INTRODUCTION 
 
Applied Economics has been contracted by the City of Glendale to perform a third party 
economic and revenue analysis of Project Dynasty.  This analysis is intended to provide a 
framework for understanding the economic and revenue impacts that the company’s 
operations could create, and the potential impacts of a Foreign Trade Zone (FTZ) incentive.   
 
Project Dynasty is considering constructing a new manufacturing facility in Glendale. The 
approximately 142-acre site being considered for this facility is located between Northern 
Avenue and Northern Parkway, 1/2 mile east of Reems Road.  The company’s capital 
investment is estimated at $400 million and includes $38 million for land, $226 for shell building 
construction and tenant improvements, and $136 million for equipment.  It is anticipated that 
this capital investment would take place over four years.  The company could create 200 jobs 
by the fourth year of operations at an average wage of $60,775. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The economic and revenue impacts presented here are based on information about Project Dynasty 
provided by the city and the company.  Actual results could vary significantly.  However, even if the 
assumptions outlined in this report were to occur, there will usually be differences between the 
projections and the actual results because events and circumstances frequently do not occur as expected.  
This analysis is based on the best available information and is intended to aid the City of Glendale in 
evaluating this potential economic development opportunity.  All dollar estimates should be interpreted 
as order of magnitude estimates only.  In no way will Applied Economics LLC be held responsible or have 
any liability or be subject to damages as a result of this analysis.  This report may be used only for the 
purposes that it was intended.

3
PROJECT DYNASTY IMPACT SUMMARY 
 
Jobs, Payroll and Capital Investment 
New Jobs  
 
 
 
 
 
 
 
     
 
200 
Estimated Annual Payroll 
 
 
 
              
 
  $12.2 M 
Capital Investment (buildings, land, equipment)    
 
$400.0 M 
 
10-Year Economic Impacts  
Economic Impact of Operations  
 
 
 
 
     $2.1 B 
Total Job Impacts 
 
           
 
     200 Direct/260 Indirect 
 
Economic Impact of Construction    
 
 
 
 
$342.7 M 
Total Job Impacts 
 
 
 
            1,900 Direct/700 Indirect 
 
 
10-Year Revenue Impacts 
 
Direct Revenues to City* 
 
 
   
 
    
                $7.4 M 
Employee Revenues to City (based on 200 jobs)   
                $0.7 M 
 
*Assumes company qualifies for FTZ property tax reduction.

4
IMPACT SUMMARY 
 
The operations of Project Dynasty’s new manufacturing facility in Glendale could provide a 
variety of economic benefits to the city.  These include economic impacts, which measure the 
effects of economic stimuli or expenditures in the local economy in terms of direct and indirect 
jobs, labor income, and output that could be generated by the company’s operations.  The 
project could also generate revenue impacts, defined here as tax revenues to the city, including 
property, sales and utility franchise taxes from the company’s operations, as well as taxes 
generated by direct employees living in Glendale.  A summary of potential impacts on the city is 
detailed below. 
 
Economic Impacts 
 
• Overall Operations Impacts.  In total, Project Dynasty could create an economic 
impact of $2.1 billion in the City of Glendale over the next ten years.  The company’s 
operations could directly and indirectly support an estimated 460 jobs (including 200 
direct jobs) and generate $239.6 million in total labor income over ten years. 
 
• Jobs and Income.  The manufacturing facility could directly employ 200 people at 
full operating levels with an annual payroll of $12.2 million.  Through the multiplier 
effect, an additional 260 indirect and induced jobs and $14.8 million in annual 
payroll could be supported at other businesses in Glendale.  The additional jobs and 
payroll at other local businesses stem from indirect and induced impacts of supplier 
demand created by the company and consumer demand created by its employees. 
 
 Construction Impacts.  About 1,900 direct construction jobs and 700 additional 
indirect jobs could be created in Glendale over a four-year period through the $226 
million in estimated new construction activity.  This would result in a one-time 
economic impact of $342.7 million to the city.  An estimated total of $6.0 million in 
one-time city construction sales taxes and permit/planning fees could also be 
generated during the construction phase.   
 
 Supported Population.  The 200 direct jobs and approximately 260 indirect and 
induced jobs associated with Project Dynasty’s new operations could support a 
population (including families) of about 300 people in the City of Glendale.  This 
estimate assumes that approximately 29 percent of the workforce would live in the 
city. 
 
Revenue Impacts 
 
• Direct Revenue Impacts.  The company’s new manufacturing facilities could 
generate new one-time and on-going tax revenues to the city, in addition to the 
economic impacts described above.  This includes, one-time construction sales tax 
and permit-related fees, property taxes on the new facilities and equipment and on-

5
going sales and utility franchise tax revenues with new revenues to the city totaling 
$7.4 million over the first ten years of operations. This estimate assumes that the 
company would qualify for FTZ benefits.   
 
• Employee Revenue Impacts.  In addition to revenues generated by the company, 
direct employees living in Glendale could generate property, sales and utility 
franchise taxes as well as state shared revenues. Employee revenues are estimated 
at $0.7 million over ten years. 
 
 Foreign Trade Zone.  Assuming that the company is able to qualify for a Foreign 
Trade Zone designation under U.S. Customs and Border Protection guidelines, they 
could also qualify for a 5 percent assessment ratio on real and personal property 
taxes.  This reduction from the normal 17.5 percent assessment ratio would result in 
a tax savings of $2.3 million over ten years in city property taxes, based on the 
specified level of capital investment. The site that the company is considering is 
currently generating approximately $500 in annual property taxes to the city. 
 
Project Dynasty could be a significant contributor to the region’s economy, providing export 
jobs that bring new wealth to the region.  The 200 new jobs associated with the project would 
be net new jobs to the state, thereby growing the economy both locally and regionally.  The 
location of this company in Glendale would not only create new high wage jobs in the 
community, but also support a significant amount of additional economic activity at related 
local supplier and consumer businesses, as well as generating new tax revenues.

6
ECONOMIC IMPACT ANALYSIS 
 
The potential economic benefits resulting from the location of the Project Dynasty in Glendale 
can be measured in terms of both the one-time construction impacts and on-going operations 
impacts.  These impacts would include direct and indirect jobs, labor income and output that 
would be generated by the project.  Indirect impacts are the result of the multiplier effect and 
capture supported supplier and consumer businesses and employees in the city that would 
benefit from this company.   
 
Construction Impacts 
 
Project Dynasty is anticipated to invest $226 million in the construction of a new manufacturing 
facility in Glendale.  The multiplier effect of this spending could result in a total increase in 
economic activity of about $342.7 million during the four-year construction period.  The 
approximately 2,600 direct and indirect jobs created in Glendale by the construction project 
could also generate close to $156.6 million in labor income over the construction period. Total 
labor income, or earnings, and the total increase in economic activity from construction are 
shown in Figure 1.   
 
FIGURE 1 
CONSTRUCTION IMPACTS OF PROJECT DYNASTY 
 
Year
Construction 
Expenditures
Jobs
Labor Income
Output
Jobs
Labor Income
2022
$113,000,000
950
$59,377,796
$171,336,368
1,300
$78,279,230
2023
$91,000,000
764
$47,817,517
$137,978,845
1,047
$63,039,026
2024
$18,000,000
152
$9,458,410
$27,292,519
207
$12,469,258
2025
$4,000,000
34
$2,101,869
$6,065,004
46
$2,770,946
Total
$226,000,000
1,900
$118,755,592
$342,672,736
2,600
$156,558,460
Direct
Total
 
 
Operations Impacts 
 
The projected economic impacts from the Project Dynasty’s manufacturing activities in 
Glendale are shown in Figure 2.  The company is anticipated to create 200 new jobs with an 
estimated annual payroll of $12.2 million.  Through local supplier purchases, as well as 
employee spending, Project Dynasty could create an annual economic impact of $231.3 million 
in Glendale (Figure 2).  The multiplier effect of the company’s operations on the city could 
result in a total economic impact of $2.1 billion over the next ten years, supporting an 
estimated 460 direct and indirect jobs and $239.6 million in total labor income.

7
FIGURE 2 
ANNUAL OPERATIONS IMPACT OF PROJECT DYNASTY  
 
Labor
Labor
Year
Output
Jobs
Income
Output
Jobs
Income
2024
$13,221,150
19
$1,680,000
$21,973,350
44
$3,081,708
2025
$107,856,749
155
$9,815,000
$179,256,275
355
$21,249,985
2026
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
2027
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
2028
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
2029
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
2030
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
2031
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
2032
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
2033
$139,169,998
200
$12,155,000
$231,298,420
460
$26,909,819
10 Year Total
$1,234,437,884
200
$108,735,000
$2,051,616,985
460
$239,610,249
Direct
Total
 
 
The new jobs generated directly and indirectly by Project Dynasty could support a resident base 
of about 300 people in Glendale. This includes families of direct employees, as well as families 
of employees at related supplier and consumer businesses, and assumes that about 29 percent 
of the employees will work and live in the city.1 
 
The secondary or indirect/induced impacts described here are called multiplier effects.  
Multiplier effects are a way of representing the larger economic effects on the local economy.  
The multiplier effects translate an increase in output (defined as labor cost, plus cost of inputs 
plus profits) into a corresponding increase in jobs and labor income.  In essence, the multiplier 
effect represents the recycling of local spending.  This recycling process creates new business 
opportunities.   
 
The multipliers used in this analysis are from IMPLAN, a national vendor of economic impact 
software, and are specific to the economic base of Glendale.  Industry specific multipliers for 
manufacturing and for industrial construction were used in the analysis.  The output multiplier 
for this project is 1.66.  This means that for every $1 million of output created by the company, 
an additional $660,000 in economic activity is generated in the local economy, along with about 
2 jobs and about $106,000 in payroll at other local businesses.   
 
 
1 Based on data from the Maricopa County Rideshare Survey, 29 percent of people who work in Glendale also live 
in Glendale.

8
REVENUE IMPACTS  
 
In addition to supporting jobs and output at related businesses in the city, Project Dynasty 
could also generate new tax revenues.  In total, the company could generate an estimated $7.4 
million in direct revenues and $0.7 million in employee tax revenues in Glendale over the next 
ten years, based on the assumptions used in this analysis.  There would be additional revenues 
to the school district, county and state.  Details on local property taxes by jurisdiction, with and 
without FTZ benefits, are included in Appendix A.  
 
Company Impacts 
 
Direct revenues generated by the company over ten years are estimated at $7.4 million, 
assuming the company qualifies for FTZ property tax reductions.  Direct property tax revenues 
to the city with the FTZ could total $919,000 over the first ten years of operations, including 
both real and personal property (Figure 3).  Note that the proposed site is currently vacant and 
is generating approximately $500 in annual property taxes to the city. 
 
Property tax estimates are based on the estimated limited property value of the new building 
and the annual depreciated value of new equipment.  For purposes of this analysis, all 
equipment is depreciated based on a 12-year life.  Accelerated depreciation is also applied in 
the first five years following equipment purchase, per state statute.  It is assumed that the real 
property value would increase by 5 percent per year, based on recent increases in LPV for the 
other manufacturing properties in the city and statutory guidelines.     
 
In addition to property taxes, there would be one-time sales taxes, planning/permit fees and 
development impact fees from facility construction estimated at $6.0 million to the city during 
the four-year construction period.  Permit-related fees that are included in the $6.0 million 
could range from approximately $1.0 million to $2.5 million, depending on the final building 
valuation, and the total here reflects an average of that range. This analysis further assumes 
that all equipment would be exempt from sales tax.   
 
There could be on-going sales tax revenues associated with the company’s utility usage 
estimated at $23,000 per year, plus franchise fees of $23,000 per year.  Total sales and 
franchise taxes are estimated at $458,000 over ten years, excluding construction sales tax.

9
FIGURE 3 
ESTIMATED DIRECT REVENUE IMPACT OF PROJECT DYNASTY 
 
Property
Plan/Permit
Utility 
Total City
Year
Sales Tax1
Tax2
Fees3
Franchise
Revenues
2022-2023 (Const.)
$2,130,050
$0
$1,753,127
$0
$3,883,177
2024
$1,738,239
$41,981
$0
$22,889
$1,803,109
2025
$362,189
$62,740
$0
$22,889
$447,818
2026
$98,289
$87,476
$0
$22,889
$208,654
2027
$22,889
$97,410
$0
$22,889
$143,188
2028
$22,889
$107,970
$0
$22,889
$153,748
2029
$22,889
$114,570
$0
$22,889
$160,348
2030
$22,889
$113,399
$0
$22,889
$159,177
2031
$22,889
$106,389
$0
$22,889
$152,167
2032
$22,889
$97,815
$0
$22,889
$143,594
2033
$22,889
$89,486
$0
$22,889
$135,264
10 Year Total
$4,488,990
$919,236
$1,753,127
$228,890
$7,390,243 
 
Employee Revenues 
 
In addition to the direct taxes paid by the company, there could also be taxes generated by 
employees living in Glendale estimated at $702,000 over the ten year period, based on 200  
new jobs (Figure 4).  Using the results from the economic impact analysis, it is possible to 
estimate employee tax impacts.   
 
Employee sales taxes are estimated at $302,000 over ten years.  Employee sales tax revenues 
represent sales taxes on household spending by direct employees living in Glendale.  Sales taxes 
to the city are estimated by multiplying direct labor income from the economic impact by 33 
percent (share of taxable expenditures), multiplied by a residency ratio of 29 percent and the 
city sales tax rate of 2.9 percent.2  There could be an additional 2 percent franchise tax on 
residential utility expenditures resulting in an estimated $21,000 in utility franchise taxes over 
the next ten years from employees, assuming an average monthly utility bill of $192.3 
 
Direct employees could also generate an estimated $77,000 in property tax revenues to the city 
over ten years. Employee property tax revenues were based on average residential assessed 
value per capita in Glendale multiplied by the annual supported population, times the current 
city property tax rate of 1.73 percent.   
 
 
 
 
 
2 According to the Census Bureau Consumer Expenditure Survey, persons in the median income range spend about 
33 percent of their income on taxable goods. 
3 Council for Community and Economic Research, Cost of Living Index, Q3 2021.

10 
FIGURE 4 
ESTIMATED EMPLOYEE REVENUE IMPACT OF PROJECT DYNASTY 
 
Property
Utility State-Shared
Total City
Year
Sales Tax1
Tax2
Franchise
Revenues1
Revenues
2024
$4,663
$830
$229
$3,223
$8,945
2025
$27,240
$6,771
$1,871
$26,297
$62,179
2026
$33,734
$8,737
$2,415
$33,931
$78,816
2027
$33,734
$8,737
$2,415
$33,931
$78,816
2028
$33,734
$8,737
$2,415
$33,931
$78,816
2029
$33,734
$8,737
$2,415
$33,931
$78,816
2030
$33,734
$8,737
$2,415
$33,931
$78,816
2031
$33,734
$8,737
$2,415
$33,931
$78,816
2032
$33,734
$8,737
$2,415
$33,931
$78,816
2033
$33,734
$8,737
$2,415
$33,931
$78,816
10 Year Total
$301,772
$77,497
$21,417
$300,968
$701,655
Note:  All figures are in constant 2022 dollars. Analysis assumes 29% of employees live in the City 
of Glendale for the calculation of employee revenues.
 
 
New employees living in Glendale could also result in increased state shared revenues.  State 
shared revenues include state sales tax, urban revenue sharing and auto lieu tax, all of which 
are distributed to the city based on population.  Applying the current amount the city is 
receiving per capita to the projected new residents associated with this project, the city could 
receive an estimated $301,000 in new state shared revenues over the next ten years assuming 
29 percent of the new employees live in Glendale.  All total, revenues from the direct 
employees of Project Dynasty to the city are estimated at $702,000 over ten years. 
 
Summary 
 
The operations of the Project Dynasty in Glendale, as described in this analysis, could create 
significant economic benefits for the city.  The company would not only create a sizeable 
number of new manufacturing jobs, but would also create additional demand for other local 
businesses based on supplier purchases and employee spending.  Along with supporting 
economic activity in the private sector, the company’s operations could generate new tax 
revenues to the city, as well as to other local taxing entities, in the form of increased sales, 
utility franchise and property taxes.

11 
APPENDIX A 
 
This Appendix details the potential impacts of FTZ tax reductions to the city, school districts and 
other taxing districts associated with Project Dynasty.  These are rough estimates based on 
initial capital investment information provided by the company and could vary significantly 
depending on the actual value of real and personal property. 
 
Using current mill rates at the proposed site and estimated limited property value of the 
building plus the depreciated value of personal property investments by the company, Figure A-
1 shows the amount of new property taxes by year that would be paid to the city, school 
district, county and other local taxing jurisdictions if an FTZ application for property 
reclassification is approved.   The FTZ property tax benefits reduce the assessment ratio on real 
and personal property to 5 percent, down from the normal 17.5 percent ratio for commercial 
and industrial property.  This could result in $6.3 million in new tax revenues to the city and 
school districts over the next ten years, assuming a 5 percent annual increase in the value of 
real property.   
 
FIGURE A-1 
PROPERTY TAX IMPACT OF PROJECT DYNASTY CAPITAL INVESTMENT  
WITH FTZ PROPERTY TAX BENEFITS 
 
Year
New 
Investment
Annual Taxable 
Value*
City of 
Glendale
Dysart 
Unified
Maricopa 
County
Maricopa 
Community 
Colleges
Other Spec 
Districts
Total
2022
$148,000,000
$0
$0
$0
$0
$0
$0
$0
2023
$165,000,000
$48,653,308
$41,981
$150,387
$32,741
$29,817
$30,763
$285,690
2024
$45,000,000
$72,712,621
$62,740
$224,755
$48,932
$44,562
$45,976
$426,965
2025
$4,000,000
$101,380,774
$87,476
$313,368
$68,224
$62,131
$64,103
$595,303
2026
$0
$112,892,863
$97,410
$348,952
$75,971
$69,186
$71,382
$662,901
2027
$0
$125,132,238
$107,970
$386,784
$84,208
$76,687
$79,121
$734,770
2028
$0
$132,780,517
$114,570
$410,425
$89,355
$81,375
$83,957
$779,681
2029
$0
$131,423,601
$113,399
$406,230
$88,442
$80,543
$83,099
$771,713
2030
$0
$123,299,683
$106,389
$381,119
$82,975
$75,564
$77,962
$724,010
2031
$0
$113,363,268
$97,815
$350,406
$76,288
$69,475
$71,680
$665,663
2032
$0
$103,710,185
$89,486
$320,568
$69,792
$63,559
$65,576
$608,981
10 Yr Total
$362,000,000
$1,065,349,059
$919,236
$3,292,994
$716,927
$652,899
$673,620
$6,255,676
Property Tax by Jurisdiction with FTZ
*Includes additional and regular depreciation and 5 percent assessment ratio.  Real property value is increased by 5 percent 
per year.
 
 
In order to clearly show the impacts of the FTZ property reclassification to local taxing 
jurisdictions, Figure A-2 details the amount of new property taxes by jurisdiction over the next 
ten years at a normal 17.5 percent assessment ratio.  Under these conditions, the new capital 
investment by Project Dynasty could generate $21.9 million in tax revenues to the city and 
other local taxing jurisdictions over the next ten years.

12 
FIGURE A-2 
PROPERTY TAX IMPACT OF PROJECT DYNASTY CAPITAL INVESTMENT  
WITHOUT FTZ PROPERTY TAX BENEFITS 
 
Year
New 
Investment
Annual Taxable 
Value*
City of 
Glendale
Dysart 
Unified
Maricopa 
County
Maricopa 
Community 
Colleges
Other Spec 
Districts
Total
2022
$148,000,000
$0
$0
$0
$0
$0
$0
$0
2023
$165,000,000
$48,653,308
$146,932
$526,356
$114,594
$104,360
$107,672
$999,914
2024
$45,000,000
$72,712,621
$219,590
$786,641
$171,262
$155,967
$160,917
$1,494,377
2025
$4,000,000
$101,380,774
$306,167
$1,096,788
$238,785
$217,459
$224,361
$2,083,560
2026
$0
$112,892,863
$340,934
$1,221,331
$265,899
$242,152
$249,838
$2,320,154
2027
$0
$125,132,238
$377,896
$1,353,743
$294,727
$268,406
$276,924
$2,571,696
2028
$0
$132,780,517
$400,994
$1,436,486
$312,741
$284,811
$293,850
$2,728,882
2029
$0
$131,423,601
$396,896
$1,421,806
$309,545
$281,900
$290,847
$2,700,995
2030
$0
$123,299,683
$372,362
$1,333,918
$290,411
$264,475
$272,868
$2,534,034
2031
$0
$113,363,268
$342,354
$1,226,421
$267,007
$243,161
$250,879
$2,329,822
2032
$0
$103,710,185
$313,202
$1,121,989
$244,271
$222,456
$229,516
$2,131,434
10 Yr Total $362,000,000
$1,065,349,059
$3,217,328 $11,525,479
$2,509,243
$2,285,147
$2,357,671
$21,894,867
Property Tax by Jurisdiction without FTZ
*Includes additional and regular depreciation and 17.5 percent assessment ratio.  Real property value is increased by 5 percent 
per year.
 
 
The final figure shows the projected amount of property taxes that could be generated by the 
property based on its current limited property value, assuming no new development (Figure A-
3).  This vacant parcel is currently generating about $3,500 in total annual property taxes. 
 
FIGURE A-3 
PROPERTY TAX IMPACT WITH NO NEW DEVELOPMENT 
 
Year
New 
Investment
Annual Taxable 
Value*
City of 
Glendale
Dysart 
Unified
Maricopa 
County
Maricopa 
Community 
Colleges
Other Spec 
Districts
Total
2023
$0
$207,222
$508
$1,819
$396
$361
$372
$3,456
2024
$0
$212,402
$520
$1,865
$406
$370
$381
$3,542
2025
$0
$217,712
$534
$1,911
$416
$379
$391
$3,631
2026
$0
$223,155
$547
$1,959
$426
$388
$401
$3,721
2027
$0
$228,734
$561
$2,008
$437
$398
$411
$3,814
2028
$0
$234,452
$575
$2,058
$448
$408
$421
$3,910
2029
$0
$240,314
$589
$2,110
$459
$418
$432
$4,008
2030
$0
$246,321
$604
$2,162
$471
$429
$442
$4,108
2031
$0
$252,480
$619
$2,216
$483
$439
$453
$4,210
2032
$0
$258,792
$634
$2,272
$495
$450
$465
$4,316
10 Yr Total
$0
$2,321,584
$5,689
$20,380
$4,437
$4,041
$4,169
$38,716
Property Tax by Jurisdiction