SUNLIT ARIZONA LLC SUMMARY MEMO, FINAL.DOCX
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FOREIGN TRADE ZONE REQUEST FOR NON-OBJECTION SUNLIT ARIZONA LLC City of Phoenix Foreign Trade Zone No. 75 Located at 777 West Alameda Road, Phoenix, Arizona, parcel 210-07-090A and is owned by United EM Holding, Inc. Summary from the owner’s representative Sunlit Arizona LLC is applying for Foreign Trade Zone (FTZ) designation for the property located at 777 West Alameda Road, Phoenix, Arizona, parcel 210-07-090A, to be included in the City of Phoenix’s Foreign Trade Zone No. 75. 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. Sunlit Arizona LLC is an affiliate of Sunlit Chemical which manufactures hydrofluoric acid, sodium fluoride, ammonium fluoride, phosphoric acid, hydrogen fluoride and other fluorine-related chemicals used in the manufacturing of semiconductors. The proposed Sunlit subzone is located on 17 acres. The new facility is being constructed to supply the Taiwan Semiconductor Manufacturing Co. microchip production plant. The facility will warehouse and process specialty chemicals. The establishment of this facility will help to increase production of microchips in the United States to alleviate the issue with supply of microchips in the future. Actual production will not begin until early 2023; however, production equipment may be imported as early as July 2022. The total investment planned for the facility is approximately $44.2 million, which consists of $3.0 million for land, $14.9 million for real property improvements, and $26.3 million for personal property. Status of Taxing Jurisdiction Concurrence Letters Received Concurrence Letters o City of Phoenix - pending 2/16/22 City Counsel formal meeting o Deer Valley Unified School District - TBD o Maricopa County Community College District - TBD o Maricopa County Special Health Care District (a.k.a. Valleywise Health) – pending 1/26/22 District meeting o Central Arizona Conservation District (CAP) – received o Western Maricopa Education Center (West-MEC) - received Fiscal and Economic Impact Economic Impact estimates are provided by Greater Phoenix Economic Council (GPEC). Sunlit Arizona LLC will add approximately 25 full-time employees over the next 10 years. Estimated $418.2 thousand in direct tax revenues and $16.3 thousand in indirect tax revenues for a total of $434.5 in tax revenue to Maricopa County over a 10-year period. Estimated $12.3 million of direct personal income and an additional $5.8 million of indirect personal income for a total of $18.1 million to Maricopa County over a 10-year period. Estimated $103.7 million in direct economic output and an additional $24.2 million in indirect output for a total of $127.9 million to Maricopa County over a 10-year period. Property Tax Impact Property taxes collected for the parcel currently are approximately $0 annually for Maricopa County, as parcel 210-07-090A was owned by the State of Arizona until United EM Holding, Inc. purchased it on July 23, 2021. Estimated property taxes for this parcel in its current status as a Class 2 property without FTZ designation are estimated at $3,572 annually. When improvements are completed and as a Class 6 property under FTZ designation, estimated property taxes are approximately $22,000 annually for Maricopa County.