NESTLE USA - SUMMARY SUPPORT FOR AGENDA FINAL.DOCX
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FOREIGN TRADE ZONE REQUEST FOR NON-OBJECTION NESTLE USA Greater Maricopa Foreign Trade Zone, Inc. No. 277 Located at 8745 N. 147th Avenue, Waddell, Arizona 85355, parcels 501-42-016K and 501-42-016L that are owned by Industrial Land LLC, which is wholly owned by Nestle USA. Summary from the owner’s representative Nestle USA is applying for Foreign Trade Zone (FTZ) designation for the property located 8745 N. 147th Avenue, Waddell, Arizona 85355, parcels 501-42-016K and 501-42-016L, 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. Nestle USA is a manufacturing company in the beverage, food, and pet care industry. The proposed project involves the construction of a new, state of the art, beverage manufacturing facility, including warehouse and distribution operations. The 142-acre site with will have an approximately 625,000 square feet manufacturing facility, which will eventually operate on 100% renewable energy. The project is estimated to start during the second quarter of 2022 and is estimated to become operational the first quarter of 2024. The total investment planned for the facility is approximately $396.0 million, which consists of $38.0 million for land, $222.0 million for real property improvements, and $136.0 million for personal property. At the end of 10 years this project will create 200 jobs with an annual payroll of $16.2 million. Status of Taxing Jurisdiction Concurrence Letters o City of Glendale – meeting March 8th o Dysart Unified School District – meeting March 9th o McMicken Irrigation District* o Electrical District Number Seven* o Maricopa County Community College District – meeting March 22nd o Maricopa County Special Health Care District (Valleywise Health) – meeting March 30th o Central Arizona Conservation District (CAP)* o Western Maricopa Education Center (West-MEC)* *These taxing jurisdictions will provide a letter in 1-3 days upon receipt of the City of Glendale support letter and other information as requested. Fiscal and Economic Impact Economic Impact estimates are provided by Greater Phoenix Economic Council (GPEC). Nestle USA operations will create approximately 200 direct and 280 indirect jobs over the next 10 years. Estimated $3.4 million in direct tax revenues and $359.5 thousand in indirect tax revenues for a total of $3.8 million in tax revenue to Maricopa County over a 10-year period. Estimated $136.7 million of direct personal income and an additional $84.1 million of indirect personal income for a total of $220.8 million to Maricopa County over a 10-year period. Estimated $1.0 billion in direct economic output and an additional $376.1 million in indirect output for a total of $1.4 billion to Maricopa County over a 10-year period. Property Tax Impact Property taxes currently collected for the parcel is approximately $2,645 annually for Maricopa County’s portion as a Class 2 property. When the project is completed, property taxes will grow to approximately $215,000 annually for Maricopa County’s portion as a Class 6 property.