ROSS DISTRIBUTION- SUMMARY SUPPORT FOR AGENDA FINAL.DOCX
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FOREIGN TRADE ZONE REQUEST FOR NON-OBJECTION ROSS DISTRIBUTION, LLC Greater Maricopa Foreign Trade Zone, Inc. No. 277 Located at 23361-23499 W Southern Ave, Buckeye, Arizona 85326, parcels 504-45-005L and 504-45-001N and owned by Ross Dress for Less, Inc. Summary from the owner’s representative Ross Distribution, LLC (Ross)is applying for Foreign Trade Zone (FTZ) designation for the property located 23361-23499 W Southern Ave, Buckeye, Arizona 85326, parcels 504-45-005L and 504-45-001N, to be included in the Greater Maricopa Foreign Trade Zone, Inc. No. 277. FTZ designation will allow reclassification of this property from Class 2 with a tax assessment ratio of 15% to Class 6 with a tax assessment ratio of 5% under A.R.S. 42-12006. Ross is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with 2021 revenues of $12.5 billion. Currently, Ross operates Ross Dress for Less, the largest off-price apparel and home fashion chain in the United States with 1,629 locations in 40 states, the District of Columbia, and Guam. Ross Dress for Less offers discounted name brand and designer apparel, accessories, footwear, and home fashions. Ross also operates 295 dd’s DISCOUNTS stores in 21 states that feature a more moderately-priced assortment of discounted name brand apparel, accessories, footwear, and home fashions. Ross has plans to build a 1.7 million square feet mega warehouse on approximately 224-acres. The site will serve as a merchandise distribution center to distribute clothing, footwear, furniture, and houseware to Ross retail stores throughout the US. The project is estimated to become operational beginning the 1st quarter of 2024. The total capital investment planned for the facility is approximately $607.2 million, over a five-year period, which consists of $331.8 million for personal property and $275.4 million for real property. Ross expects to initially create approximately 881 direct jobs and increase to approximately 1,308 direct jobs within the next five years. The average wage of employees is expected to be $43,265 per year, with an annual total payroll of $56.6 million. Status of Taxing Jurisdiction Concurrence Letters o City of Buckeye – Received o Buckeye Elementary School District – Received o Buckeye Union High School District – Received o Western Maricopa Education Center (West-MEC) - Received o Maricopa County Community College District – Expected mid-July o Maricopa County Special Health Care District (Valleywise Health) – Received o Central Arizona Conservation District (CAP) - Received o Roosevelt Irrigation District – Expected mid-July Fiscal and Economic Impact Economic Impact estimates are provided by Greater Phoenix Economic Council (GPEC). Ross operations will create approximately 1,308 direct and 321 indirect jobs over the next 10 years. Estimated $6.7 million in direct tax revenues and $422.8 thousand in indirect tax revenues for a total of $7.1 million in tax revenue to Maricopa County over a 10-year period. Estimated $492.0 million of direct personal income and an additional $144.2 million of indirect personal income for a total of $636.2 million to Maricopa County over a 10-year period. Estimated $1.8 billion in direct economic output and an additional $476.9 million in indirect output for a total of $2.3 billion to Maricopa County over a 10-year period. Property Tax Impact Property taxes currently collected for these parcels is approximately $498 annually for Maricopa County’s portion as a Class 2 property. When the project is completed, property taxes will grow to approximately $231,860 annually for Maricopa County’s portion as a Class 6 property.