Faraday Future Selects North Las Vegas, Apex Industrial Park for Manufacturing PlantOne of the most exciting pieces of news in southern Nevada in quite some time, Faraday Future officially announced its selection of North Las Vegas and the Apex Industrial Park for its $1 billion North American production facility. Following the approval of the Nevada Legislature during the 29th Special Session in December of 2015, the deal highlights are below:

Project Highlights:

• Approximately $85 billion in economic impact

• 4,500 direct jobs on-site with an average wage in excess of $22 per hour and full benefits package

• 3 million square foot automobile manufacturing facility

• More than $1 billion initial investment on the site within the first 10 years

• Peak construction employment of more than 3,000 construction and installation workers

• Faraday will make a direct contribution to K-12 education of $1 million per year for six years, beginning in the 2018-2019 school year

• Faraday will prioritize the employment of Nevadans

According to an economic impact study commissioned by the Governor’s Office of Economic Development and completed by Applied Economics, the project will generate 9,000 indirect jobs in the community, for a total of 13, 500 jobs as a result of the Faraday Future plant.

Economic Data Highlights:

• Faraday will increase manufacturing employment in Clark County by more than 20 percent

• Direct economic impact generated by the project will be $55 billion over 20 years

• Indirect economic impact will be approximately $30 billion over 20 years

• Gross Regional Product in Clark County would increase by up to 4 percent

• Estimated value of incentives offered by the State of Nevada is approximately $217 million over 15 years, depending upon size of investment

Story continued on next page »

E C O N O M I C P U L S EThe J A N . 2 0 1 6

2

As a result of Faraday’s expected investment in southern Nevada, below are the fiscal projections following abatements:

Abatements

General Fund revenue over 20 years $230M

Local government revenue over 20 years

$270M

K-12 education revenue over 20 years

$260M

Total fiscal impact $760M

Abatements

Sales and Use Tax (15 years) 100%

Real Property Tax (10 years) 75%

Personal Property Tax (10 years) 75%

Modified Business Tax (10 Years) 75%

The deal approved by the Nevada Legislature would allow any company of this investment level to receive the following abatement structure. In this case, this is what Faraday will receive from the State of Nevada as a result of its investment and job creation pledge.

Through the Nevada Legislature, GOED has created a new tier of enhanced abatements. In this case, the difference between the standard and enhanced abatement is 25% for Real Personal Property, Personal Property, and Modified Business Tax. Under the agreement with Faraday, the company will pay GOED’s standard abatement of 50% for Real Personal Property, Personal Property, and Modified Business Taxes and the 25% difference will be placed in a trust fund. Once the company reaches the $1 billion investment requirement, the trust fund money, plus interest will be rebated back to the company. If they do not meet this threshold, the monies will be dispersed to the governments that would have collected these taxes.

The company will also receive a Transferable Tax Credit of $9,500 per permanent, full-time job, up to 4,000 jobs – the average wage of jobs must be $22 per hour to qualify – and the State has developed a new workforce training program, Workforce Innovations for the New Nevada (WINN), to provide the company with the automotive workforce it will need.

» Faraday Futures Selects North Las Vegas, Apex Industrial Park for Manufacturing Plant (cont.)

2

Infrastructure:

• NDOT will advance a previously planned project to construct and install an enhanced interchange at the intersection of I-15 and U.S. 93, widen U.S. 93 to four lanes to Apex Power Parkway, and add an elevated left turn lane at Grand Valley Parkway

• Ensure municipal water infrastructure is available at the project site

• Construction of a rail port and associated rail infrastructure

The opportunity to both attract Faraday Future and open up Apex Industrial Park is a true coup for southern Nevada’s economic development effort. Faraday was looking at several locations outside of Nevada before deciding on North Las Vegas. With a promise to invest at least $1 billion, create 4,500 jobs, and reshape the future of the car industry, Faraday Future is a welcome addition to the New Nevada.

3

2015 WRAP-UPA Great Year for Economic Development

2015 was quite a year for economic development and the State of

Nevada. As a result of cooperation across agencies, the leadership of

Governor Sandoval, and the support of the Nevada Legislature, 2015

began with Tesla officially building its Gigafactory and ended with

a Special Session which allowed Faraday Future to select the Apex

Industrial Park for its advanced manufacturing automobile facility.

The State’s economic development effort, year to date, has resulted in 84 assisted companies adding 3,364 jobs to Nevada’s economy.

Fidelity National, eBay, Rackspace, Hyperloop, Machine Zone, and

Scientific Games are just a few of the internationally-recognized

companies that selected Nevada during 2015. Additionally, each

Board meeting throughout this last year included dozens of Nevada-

bred companies further cementing their investment and job creation

in the state. Creel Printing, Switch, Vineburg Machining, Xtreme

Manufacturing, and Maverick Aviation are just a few of the Nevada

companies creating more jobs in their communities.

The following stories represent a sampling of some of

GOED’s best news of 2015.

5

For the fourth quarter of Calendar Year 2015, the Nevada UAS Test Site effort conducted 56 UAV flights under the Nationwide Certificate of Authorization (COA), a 500% increase from the 3rd Quarter. For the year, a total of 66 COA flights, plus 8 flights in restricted airspace, occurred throughout the state.

On December 10-11, Nevada UAS Test Site personnel partnered with the Hawthorne Army Depot (HWAD) to conduct a 2-day joint UAV demo. The event was made possible through an extension of HWAD airspace to include all 230 sq. miles of the HWAD. NIAS has executed a new operating agreement to be the exclusive representative for sponsoring flights at the Depot.

NIAS was also recently contracted by Hyperloop to use drone imaging to map the test track for the company at Apex Industrial Park.

Nevada Legislature, GOED Implement New Abatement Programs for Data Centers, Aviation PartsTwo new abatements went into effect on July 1, 2015 to help create stronger industries for aviation manufacturing/repair and data centers.

Since July, 14 companies have been approved for these abatements with plans to invest nearly $5 billion and initially create about 194 jobs which pay an average wage of $30.25.

Data Center Abatement

Switch, LTD

Rackspace US, Inc.

eBay

Aviation Parts Abatement

Dassault Aircraft Services Corp.

Apex Aviation, Inc.

Astro Aviation

Cashman Equipment

Lone Mountain Aviation, Inc.

Air Methods Corp.

Unmanned Systems Inc.

Reno Flying Service, Inc.

Verascan

Maverick Aviation Group

Steelman Aviation, Inc.

Nevada’s UAS Effort is Flying High

6

Governor’s European Trade Mission Results in Company/Country Expansions As one of the largest Governor-led trade missions in the State’s history, the focus was on strengthening bilateral trade partnerships between the State of Nevada and the countries of Ireland, Germany, Poland, England, and Italy. With goals to connect Nevada businesses, education and research institutions with opportunities overseas and show Nevada’s benefits to international companies, the trade mission specifically focused on advanced manufacturing, water technology, mining, information technology, and tourism and hospitality.

As a result of this effort, a Request for Proposals (RFP) was sent out by the Nevada Center of Excellence (NvCOE) to partner organizations in the UK and Ireland which has resulted in final negotiations with four water tech companies to perform research, development, and commercialization in Nevada. The NvCOE has issued an RFP for Round 2 of the Center’s Commercialization Fund and is reviewing the 31 applications that were submitted.

Also following the trade mission, a delegation of over 45 individuals representing 25 companies, 2 regions, and the Polish national government came to Nevada in November. During their time in the state, GOED held a ribbon-cutting ceremony for the Polish Silicon Bridge Office which will be located in the new UNR Innevation Center in Reno. This represents the first market access and expansion office opened by a foreign government in Nevada.

Round table discussion w/

#EnterpriseIsland & #NV’s

#SwitchTech & #DRI.

@SUPERNAP @DRIScience

@DiversifyNevada

@GovSandoval

In #London to open today’s

networking event w/ U.K. water

policy experts & @DRIScience,

@SNWA_H2O, @DiversifyNevada

@GovSandoval

7

Governor Launches Tourism Infrastructure Committee to Grow Southern Nevada’s Leading IndustrySince its launch in the summer of 2015, the Southern Nevada Tourism Infrastructure Committee (SNTIC) has hosted a cross-section of the hospitality industry – including convention providers, transportation companies, regional and local government entities, and others – to highlight their priorities into the future as well as to identify obstacles that might inhibit their growth.

With a charge to identify and prioritize tourism improvement projects in southern Nevada, GOED Director Steve Hill serves as the Chairman of SNTIC and oversees the monthly Committee meetings that have occurred and will continue through July 2016. While the meetings so far have been information gathering, those carrying through the first several months of 2016 will include workshops that will address future infrastructure challenges and potential funding sources for infrastructure improvements.

The Committee will compile a report of recommendations to the Governor, due at the end of July 2016. Members of the Committee are: Mayor of Las Vegas; Chairman of the Clark County Commission; President and Chief Executive Officer of the Las Vegas Chamber of Commerce; President of the University of Nevada, Las Vegas; and six representatives from the Nevada Resort Association.

» Keep up on SNTIC here: www.sntic.org

GOED Launches Advanced Career Pathway for Manufacturing, Wins AwardWith the support of state education and manufacturing leaders, GOED’s technology commercialization unit has developed a program for a fully-integrated manufacturing career pathway. This program, called Learn and Earn Advanced Career Pathway (LEAP), will train for the specific vocation of Advanced Manufacturing Technician and has been endorsed by the DETR Manufacturing Sector Council.

In December, LEAP received its first national award: the submission by LEAP-partner Washoe County School District was awarded the Optimas Silver Award for Managing Change. GOED’s Technology Commercialization Director Karsten Heise, who devised LEAP, is currently working on broadening the concept to other industries.

Tesla Gigafactory Moving on Track, Hiring NevadansTesla has made significant progress at the Gigafactory in 2015. By the end of the year, Tesla and Panasonic had hired 272 permanent employees and had begun shipping battery walls and battery packs from the facility. Construction of the facility continued at a strong pace. During the 4th Quarter of 2015, there were nearly 900 construction workers on-site, 74% of whom are Nevadans. $375 million has now been invested on the site.

8

www.diversifynevada.com | 702.486.2700

1.800.336.1600success@diversifynevada.com

808 West Nye Lane, Carson City, NV 89703 555 E. Washington Avenue, Suite 5400, Las Vegas, NV 89101

Governor Brian Sandoval, Chairman

Lieutenant Governor Mark Hutchison

Secretary of State Barbara Cegavske

Mr. Benjamin Yerushalmi, Owner, The Jewelers of Nevada

Mr. Daniel Klaich, Chancellor, Nevada System of Higher Education

Mr. Don Soderberg, Director, Department of Employment, Training & Rehabilitation

Ms. Kathleen Drakulich, Attorney at Law, McDonald Carano Wilson

Mr. James Barrett, President, The JABarrett Company

Mr. Rob Roy, CEO/Founder, Switch Communication

Mr. Sam Routson, Chief Administrative Officer, Winnemucca Farms

Mr. Weldon (Don) Havins, MD, JD, Professor and Director of Medical Jurisprudence and Ophthalmology, Touro University Nevada

Board Members

News

FARADAY ECONOMIC INCENTIVE PACKAGE OK’D

In a story featured in the Las Vegas Review Journal, the GOED Board’s action in January to approve an incentive package structured on approval granted through the Nevada Legislature during Special Session 2015 was finalized. The Company started to clear ground at the site following this approval.

READ MORE www.reviewjournal.com/business/faraday-economic-incentive-package-okd

Upcoming eventsUpcoming events

GOED BOARD MEETING

March 17 @ 1pm

Grant Sawyer Building, Las Vegas

Guinn Room, Nevada Capitol Building, Carson City

KNOWLEDGE FUND ADVISORY COUNCIL MEETING

February 18 @ 1pm

DRI locations in both northern and southern Nevada

SNTIC MEETING

January 28February 25March 24April 28

May 26June 23July 28

UNLV Foundation Building, Blasco Wing

9am