LETTER OF SUPPORT CMC FINAL.DOCX

FOREIGN TRADE ZONE
REQUEST FOR NON-OBJECTION
COMMERCIAL METALS COMPANY
City of Mesa Foreign Trade Zone No. 221 
Generally located at 11444 E Germann Road, Mesa, AZ 85212, within parcel 304-63-004E and is owned by 
Commercial Metals Company.  
Summary from the owner’s representative
Commercial Metals Company (CMC Steel) will create a Subzone for a micro mill to be included in the City 
of Mesa’s Foreign Trade Zone No. 221 and reclassification of said site as Class 6 property under A.R.S. 42-
12006 once it receives Foreign Trade Zone status.  Through this Subzone, CMC Steel will be expanding 
their existing rebar micro mill facilities in Mesa to become the world’s first facility to produce merchant 
bar quality (MBQ) products.  These MBQ products will replace higher cost rebar capacity and allow CMC 
to more efficiently meet West Coast demand for rebar and MBQ products. The Subzone will only be 
applied to the new micro mill and will not affect the tax being paid on the existing facility on the parcel. 
The existing facility will remain at the standard commercial assessment ratio of 18%, and CMC Steel is 
requesting that new mill be eligible to receive the Class 6 assessment ratio of 5% in correspondence with 
the creation of their Foreign Trade Subzone.
Locating the mill adjacent to CMC's current Mesa, Arizona facility will enable CMC Steel to leverage its 
existing infrastructure and the significant micro mill expertise of its engineering and operating personnel. 
The new expansion will be located on existing property already owned by CMC Steel.  CMC's intent is to 
build the new facility in Mesa, Arizona, pending permitting, regulatory approval and final incentive 
negotiations. 
The total investment planned for land, building and equipment at the site located at 11444 E Germann 
Road, Mesa, AZ 85212 is approximately $434M. It is estimated that approximately $91M will be for the 
land and building and approximately $324M in personal property. An additional $19M in other project 
related costs will also be incorporated within the facility. 
The zone operation will create 186 new job positions with an average annual salary above $70,000.   The 
new micro mill is expected to begin commissioning in early 2023.
Status of Taxing Jurisdiction Concurrence Letters

Received Concurrence Letters
o
City of Mesa
o
Maricopa Community Colleges
o
Electrical District Number Six
o
Central AZ Water Conservation District (CAP)

Status Pending
o
Maricopa County Special Health Care District (a.k.a. Valleywise Health)
o
Queen Creek Unified School District
o
East Valley Institute of Technology

Fiscal and Economic Impact
Economic Impact estimates are provided by Strategic Development Group, Inc. (SDG).

CMC Steel will add approximately 186 full-time employees 

Estimated $331 million in direct operational impact, $104 million in indirect and $48 million in 
induced for a total of $484 million total annual output from the new mill.

Estimated $611 million in total labor income and $4.8 billion in total economic output are 
expected over the next ten years.
Property Tax Impact 

Property taxes collected for the parcel currently are approximately $81,639, annually for 
Maricopa County’s portion.  When the project is completed, property taxes will grow to 
approximately $97,867 annually for Maricopa County’s portion.  The taxes assume FTZ 
designation and land and property valuations similar to the existing CMC Steel mill.