TDL IN MOHAVE COUNTY SUCCESS STORIES. Learn More: Mohave County

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Laura Pierce
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TDL IN MOHAVE COUNTY With a strategic location within a one-day, round-trip drive of major metros like San Diego, Los Angeles and Phoenix, moving your transportation, distribution

We re already home to companies that specialize in freight hauling, storage, distribution, trucking, warehousing, and air and marine freight. And we have plenty of room for more.

western United States Low business costs and some of the lowest taxes in Arizona Industrial parks near each major city Programs that make it easy to connect with suppliers,

All of these attributes have helped propel the Mohave County facility to the most effective plant of the Tissue group. - Luc Beaudoin, Plant Manager Cascades, Inc.

1 TDL IN MOHAVE COUNTY With a strategic location within a one-day, round-trip drive of major metros like San Diego, Los Angeles and Phoenix, moving your transportation, distribution or logistics company to Mohave County just makes sense. We re already home to companies that specialize in freight hauling, storage, distribution, trucking, warehousing, and air and marine freight. And we have plenty of room for more. Move your business to Mohave County and discover benefits like: A workforce trained and experienced in transportation, distribution and logistics Easy access to California and the western United States Low business costs and some of the lowest taxes in Arizona Industrial parks near each major city Programs that make it easy to connect with suppliers, businesses and workforce in the Mohave County area A backdrop of vast blue skies, desert landscapes, over 1,000 miles of freshwater coastline and the breathtaking Grand Canyon West SUCCESS STORIES Mohave County What do I love about Mohave county? Loyalty and dedication from the workforce. Affordable real estate. And the proximity of my three major hubs: California, Las Vegas and Phoenix. All of these attributes have helped propel the Mohave County facility to the most effective plant of the Tissue group. - Luc Beaudoin, Plant Manager Cascades, Inc. s most profitable plant (Kingman, ) The workforce is made up of dedicated, hardworking folks. Logistically, the region is an excellent strategic location for distribution and backhauling. Geographically, there is easy access to Phoenix, Las Vegas, Flagstaff and Los Angeles, not to mention the Grand Canyon, Hoover Dam and many tourist attractions. - Jim Robertson CDME,CDS,CTP. KDC General Manager McKee Foods (Kingman, ) Learn More:

COST OF BUSINESS Land, Building and Electric INDUSTRIAL LAND & BUILDING COSTS Cost/acre: $6k-$240k Lease rate(sq.ft./mo.): $0.25-$0.50 Construction(sq.ft.): $50-$90 LARGE ELECTRIC (Unisource Energy) Basic/month: $16/mo.

2 COST OF BUSINESS Land, Building and Electric INDUSTRIAL LAND & BUILDING COSTS Cost/acre: $6k-$240k Lease rate(sq.ft./mo.): $0.25-$0.50 Construction(sq.ft.): $50-$90 LARGE ELECTRIC (Unisource Energy) Basic/month: $16/mo. Demand/kW: $14.12 Energy charge/kwh: $ ;$ $ ;$ INCENTIVES Financing and Cash Arizona Job Training Grant Program Quality Jobs Tax Credit Program Sales Tax Exemption for Machinery & Equipment Research & Development Income Tax Credit Program Accelerated Depreciation Schedules CONTACT US FOR DETAILS: COMPARATIVE ANNUAL NONEXEMPT LABOR COSTS vs. Phoenix, Las Vegas, Reno/Sparks, West Jordan JOB TITLE NUMBER OF WORKERS MOHAVE COUNTY, PHOENIX, LAS VEGAS, NV RENO/ SPARKS, NV Warehouse Worker 20 $11.25 $12.40 $12.24 $12.49 $12.05 Material Handler 25 $13.22 $14.54 $13.98 $14.66 $14.11 Order Filler 30 $10.89 $11.98 $11.82 $12.09 $11.63 Light Assembly 10 $11.82 $13.01 $12.82 $13.10 $12.63 Packer 10 $10.84 $11.93 $11.77 $12.03 $11.58 Maintenance Mechanic 4 $17.73 $19.52 $19.27 $19.68 $18.98 Maintenance Electrician 3 $19.35 $21.30 $21.02 $21.48 $20.69 Stock Clerk 5 $10.67 $11.75 $11.59 $11.84 $11.42 Shipping & Receiving Clerk 12 $13.22 $14.54 $14.36 $14.66 $14.11 Forklift Operator 12 $14.82 $16.33 $16.11 $16.45 $15.85 Truck Driver - Light 5 $14.11 $15.54 $15.34 $15.67 $15.11 Truck Driver - Heavy 10 $16.61 $18.30 $18.06 $18.44 $17.77 Security Guard 5 $13.03 $14.36 $14.17 $14.46 $13.94 Inventory Control Clerk 12 $14.31 $15.76 $15.55 $15.88 $15.31 Traffic/Rate Analyst 6 $18.00 $19.82 $19.56 $19.97 $19.27 Secretary 6 $13.58 $14.96 $14.75 $15.07 $14.54 Total Nonexempt Workers 175 Weighted Average Hourly Earnings (1) Total Annual Base Payroll Costs (2) $13.09 $14.41 $14.17 $14.52 $13.99 WEST JORDAN, UT $4,361,588 $4,801,412 $4,721,444 $4,838,064 $4,661,468 Fringe Benefits (3) $1,570,172 $1,728,508 $1,699,720 $1,741,703 $1,678,128 Total Annual Nonexempt Labor Costs $5,931,760 $6,529,920 $6,421,164 $6,579,767 $6,339,596 (1) For distribution center in third year of operation based upon current wage rates and fringe benefits. Wage rates reflect field research and industry sources placing the facility in a competitive hiring position in each respective labor market. Job descriptions reflect a representative mix of key job functions for a hypothetical distribution warehouse facility employing 175 nonexempt workers. (2) Based on an estimated 36 percent of total annual base payroll costs. Costs include all statutory benefits, pay for time not worked and company-sponsored benefits. (3) Assumes 1,904 hours worked per year per employee based on 12 paid holidays and a two-week vacation. Source: The Boyd Company, Inc.

3 mi SALT LAKE CITY SAN FRANCISCO OAKLAND 500 mi 70 DENVER 5 LAS VEGAS 250 mi 100 mi 15 Mohave County KINGMAN LOS ANGELES SAN BERNARDINO 40 LONG BEACH SAN DIEGO RIVERSIDE PHOENIX ALBUQUERQUE ENSENADA TUCSON WAREHOUSE CONSTRUCTION AND AMMORIZATION COSTS vs. Phoenix, Las Vegas, Reno/Sparks, West Jordan MOHAVE COUNTY, PHOENIX, GUAYMAS LAS VEGAS, NV M E X I C O RENO/SPARKS, NV WEST JORDAN, UT Site Acquisition: No. of Acres Drive Times from 65 Kingman, 65 San 65 Diego, CA: 380 Miles / 5: Cost per Acre (1) $50,000 $326,000 Las Vegas, NV: $208, Miles / 2:00$138,000 Ensenada, $189,000 Mexico: 463 Miles Phoenix, : 184 Miles / 3:25 Albuquerque, NM: 470 Miles / Site Improvement Cost (2) San Bernardino, CA: 275 Miles / 4:20 Salt Lake City, UT: 524 Miles / Total Land Cost $3,250,000 $21,190,000 $13,520,000 $8,970,000 $12,285,000 Riverside, CA: 284 Miles / 4:31 Oakland, CA: 607 Miles / 10:0 Construction Cost (3) $46,645,156 $50,512,387 Tucson, : 305 $58,796,417 Miles / 5:22 $57,045,321 San $44,989,697 Francisco, CA: 618 Miles / Machinery and Equipment $9,250,000 $9,250,000 Los Angeles, CA: $9,250, Miles / 5:08 $9,250,000 Guaymas, $9,250,000Mexico: 627 Miles / Total Project Investment $49,895,156 $71,702,387 Long Beach, CA: $72,316, Miles / 5:17 $66,015,321 Denver, $57,274,697 CO: 914 Miles / 13:38 Project Amortization Cost of Funds (Interest) Payment Factor (4) Total Annual Amortization Cost $3,537,567 $5,083,699 $5,127,234 $4,680,486 $4,060,776 (1) Land costs are estimates only. Actual negotiated costs would vary by site specifics, including location, access, visibility, etc. Costs reflect fully-serviced industrially-zoned land. (2) Land preparation costs limited to normal grading and held constant for purposes of analysis. (3) Based on construction of fully-equipped 750,000 sq. ft. distribution center. Geographic differentials in building costs are based on recent BizCosts construction cost data. (4) Assumes 25-year level amortization payments at 5.0 percent. Source: The Boyd Company, Inc.

4 INBOUND SHIPPING COSTS* WEST COAST PORT CITIES OF ORIGIN Origin City Annual (1,000 lbs.) Mohave County, Phoenix, Las Vegas, NV Reno/Sparks, NV West Jordan, UT Los Angeles, CA 191,800 $3,110,222 $4,540,561 $3,367,511 $6,389,872 $8,328,133 Long Beach, CA 175,820 $3,006,059 $4,180,309 $3,189,086 $6,023,433 $7,735,889 Oakland, CA 63,930 $2,202,122 $2,977,101 $2,254,997 $876,412 $2,968,147 Seattle, WA 53,280 $4,605,714 $5,020,564 $4,224,447 $2,525,175 $2,868,620 Tacoma, WA 47,950 $3,873,273 $4,465,088 $3,838,865 $2,177,408 $2,618,466 MEXICAN POINTS OF ORGIN Tijuana, Baja 26,640 $601,768 $666,769 $630,445 $1,005,743 $1,319,453 Mexicali, Baja 26,640 $342,908 $413,505 $529,489 $1,042,169 $1,220,347 Nogales, Sonora 26,640 $711,028 $297,606 $794,082 $1,593,729 $1,482,099 Cd. Juarez, Chihuahua Monterrey, Neuvo Leon DOMESTIC POINTS OF ORGIN 26,640 $1,132,938 $724,224 $1,220,203 $2,020,328 $1,482,099 26,640 $2,390,264 $1,980,121 $2,472,630 $3,274,427 $2,731,491 Boston, MA 33,300 $5,808,030 $5,669,689 $5,702,027 $6,059,128 $4,989,494 Charlotte, NC 33,300 $4,563,428 $4,395,605 $4,654,541 $5,397,543 $4,326,015 Detroit, MI 33,300 $4,416,457 $4,278,116 $4,225,262 $4,583,187 $3,512,708 St. Louis, MO 33,300 $3,305,051 $3,166,711 $3,350,387 $3,868,597 $2,796,521 Houston, TX 33,300 $2,985,070 $2,472,909 $3,092,605 $4,089,819 $3,468,149 TOTALS 832,480 $43,054,332 $45,248,878 $43,546,577 $50,926,970 $51,847,631 *Annual charges reflect truckload lots of 40,000 lbs. using private over-the-road carrier to each surveyed distribution site. Projected charges based on estimated $2.54 per mile which includes cost factors such as labor, fuel, maintenance, insurance, and operating rights. Source: The Boyd Company, Inc. OUTBOUND SHIPPING COSTS* CALIFORNIA METRO MARKETS Origin City Annual (1,000 lbs.) Mohave County, Phoenix, Las Vegas, NV Reno/Sparks, NV West Jordan, UT Los Angeles, CA 159,840 $3,455,966 $5,045,307 $3,741,857 $7,086,659 $9,253,922 San Francisco, CA 79,920 $3,745,084 $5,062,520 $3,858,715 $1,468,315 $4,987,013 Riverside/San Bernardino, CA 79,920 $1,557,672 $2,166,837 $1,622,825 $3,118,438 $4,378,790 San Diego, CA 39,950 $1,068,261 $1,198,166 $1,125,571 $1,875,605 $2,502,553 Sacramento, CA 39,950 $1,903,453 $2,535,609 $1,936, $442,925 $2,199,979 WESTERN U.S. METRO MARKET Phoenix, 53,280 $1,098,200 $44,824 $1,321,515 $3,453,905 $2,904,625 Seattle, WA 53,280 $6,140,952 $6,694,085 $5,632,598 $3,366,900 $3,824,827 Denver, CO 53,280 $3,854,903 $4,092,966 $3,342,605 $4,710,558 $2,420,522 Portland, OR 53,280 $5,141,232 $5,984,738 $4,584,109 $2,596,994 $3,490,929 Las Vegas, NV 53,280 $497,551 $1,281,442 $13,447 $2,010,467 $1,851,251 NATIONAL DISTRIBUTION POINTS New York, NY 33,300 $7,063,495 $6,888,652 $7,064,139 $7,543,088 $6,113,525 Atlanta, GA 33,300 $5,392,944 $5,177,674 $5,516,239 $6,706,132 $5,280,938 Chicago, IL 33,300 $5,236,058 $5,056,928 $4,896,624 $5,374,789 $3,943,124 Memphis, TN 33,300 $4,308,751 $4,127,465 $4,432,019 $5,911,030 $4,474,815 Dallas, TX 33,300 $3,284,093 $2,986,318 $3,415,344 $4,667,684 $3,955,983 TOTALS 832,480 $53,748,615 $58,343,531 $52,503,612 $60,333,489 $61,582,796 *Annual charges reflect truckload lots of 30,000 lbs. using private over-the-road carrier to each surveyed distribution site. Projected charges based on estimated $2.54 per mile which includes cost factors such as labor, fuel, maintenance, insurance, and operating rights. Source: The Boyd Company, Inc.

ARIZONA VS. CALIFORNIA Business Cost Comparison CORPORATE INCOME TAX* Arizona : 6.968% California: 8.84% *Source: The Tax Foundation, February 2011. STATE PERSONAL INCOME TAX* Arizona: 2.59% - 4.

5 ARIZONA VS. CALIFORNIA Business Cost Comparison CORPORATE INCOME TAX* Arizona : 6.968% California: 8.84% *Source: The Tax Foundation, February STATE PERSONAL INCOME TAX* Arizona: 2.59% % California: 9.55% % (3rd highest in the nation) *Source: The Tax Foundation STATE SALES TAX* Arizona: 6.6% California: 8.25% (highest in the nation) *Source: The Tax Foundation GASOLINE TAX* Arizona: $0.19/gallon California: $0.48/gallon (highest in the nation) *Source: The Tax Foundation PERSONAL PROPERTY TAX* Arizona: First $10, % Next $15, % Next $25, % Next $100, % Over $150, % California: First $7, % Next $9, % Next $9, % Next $10, % Next $9, % Next $952, % Over $1,000, % State imposes an alternative minimum tax *Source: The Tax Foundation, February LAWSUIT CLIMATE RANKING* Arizona: 13th California: 46th *Source: Institute for Legal Reform WORKERS COMPENSATION RANKING* Arizona: 6 California: 43 *Source: Actuarial and Technical Solutions, Inc., Workers Compensation State Rankings, 2009 Edition. UNEMPLOYMENT INSURANCE - ESTIMATED AVERAGE TAX* Arizona: 2%; Arizona s new employers tax rate is 2% for 1 year. California: 4.96%; California s new employers tax rate is 3.40% for 1. year. *Sources: CCH-EXP, State Tax Guide, 2010 Unemployment Insurance Tax Rates; U.S. Dept. of Labor, Employment & Training Administration: Average Employer Contribution Rates, by State, Calendar Year OVERALL STATE PER CAPITA TAXATION & NATIONAL RANKING* Arizona: $1,799; 11th lowest in the nation California: $2,733; 39th lowest in the nation *Source: U.S. Census Bureau, Governments Division, States Ranked by Total Taxes: 2009 and Population Estimates: COST OF LIVING* Cost of Living in Mohave County,, is significantly more affordable than in California. *Source: ACCRA Cost of Living; Speirlings Best Places, July UNION ACTIVITY* Arizona is a right to work state and has the 13th lowest union membership rate in the nation. Mohave County,, offers a business environment essentially free of union membership. California is a forced unionism state and has the 47th lowest union membership rate in the nation. *Source: U.S. Dept. of Labor, Bureau of Labor Statistics, Table 5: Union Affiliation of Employed Wage & Salary Workers by State, Source: National Right to Work Legal Defense Foundation, Inc. (2010) Learn More:

EASY ACCESS TO CALIFORNIA Freight hauling. Tax climates. Freight storage and distribution.

Low operating costs. Distance to my customers. Infrastructure.

Transportation and Logistics.Real Estate values. Access to major highway, rail and airport.

6 EASY ACCESS TO CALIFORNIA Freight hauling. Tax climates. Freight storage and distribution. Solid Workforce. Access to Pacific ports. Available Land. Good partnerships. Low operating costs. Distance to my customers. Infrastructure. Trucking, rail hauling and warehousing. Incentives. Lower cost of Moving Goods. Transportation and Logistics.Real Estate values. Access to major highway, rail and airport. Industry salary 42% Lower than the National Average. You ve got priorities. We ve got a lot to offer. w w w. m o h a v e d e v e l o p m e n t. o r g

Lower Income Journey to Work Market Share From American Community Survey

Lower Income Journey to Work Market Share From American Community Survey 2006-2010 Table 1: Overall National Data Table 2: Car, Truck or Van Table 3: Transit Table 4: Metrics Table 1 Work Trip Market Share: