grand canyon airlines, inc
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Board Summary Date: September 15, 2016
Main Location: Carson City, Nevada
Business Type: Expansion County: Clark County Development Authority Representative: Morgan Bunker - LVGEA
APPLICATION HIGHLIGHTS
- Grand Canyon Airlines Inc. will make a capital investment, in equipment purchases, of $600,000 over a 20 year period.
PROFILE
SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND
REQUIREMENTS (TIER I) Statutory Application Sufficient % Over / Under
Job Creation (12 months) 3 4 Yes 33%
REQUIREMENTS (TIER II) Statutory Application Sufficient % Over / Under
Average Wage $20.89 $21.00 Yes 1%
INVESTMENTS (NOT REQUIRED) Description Application
Equipment 20 yr (est) $600,000
Aviation Parts 20 yr (est) $42,118,441
Aircraft 20 yr (est) $10,000,000
INCENTIVES Requested Terms Estimated $ Amount
Sales Tax Abmt. (Equip. & Parts) Abated to 2% for 20 yrs. $2,732,095
Pers. Prop. Tax Abmt. (Eqp & Craft) 50% for 20 yrs. $106,792
Total $2,838,887
JOB CREATION Contracted 12-Month Projection 5-Year Projection 10-Year Projection
3 6 8 14
OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Bldg Imprv. (20 Yr)
$0 $0 $0
ECONOMIC IMPACT ESTIMATES (20-Year Cumulative) Total
Total Jobs Supported 26
Total Payroll Supported $17,559,378
Total Output Estimate $44,930,926
Estimate includes jobs, payroll & output by the company assisted as well as the secondary impacts to other local businesses.
NEW TAX REVENUE ESTIMATES (20-Year Cumulative) Direct Indirect Total
Local Taxes
Property $1,451,380 $531,966 $1,983,346
Sales $0 $326,130 $326,130
Lodging $0 $16,002 $16,002
State Taxes
Property $85,490 $31,902 $117,392
Sales $895,768 $108,869 $1,004,637
Modified Business $106,237 $70,578 $176,815
Commerce NA NA NA
Lodging $0 $3,997 $3,997
Total $2,538,875 $1,089,444 $3,628,319
IMPACT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar
$15.83 $1.28
EMPLOYEE BENEFITS
- Percentage of health insurance covered by company: 84%.
- Health care package cost per employee - $5,147 annually with options for dependents.
- Overtime, PTO/Sick/Vacation, Bonus, Retirement Plan, Merit Increases.
NOTES
- Papillon Airways, Inc. and Grand Canyon Airlines, Inc. are sister companies with Nevada Operations co-located at Boulder City Municipal Airport.
Grand Canyon Airlines, Inc. maintains its principal aircraft maintenance base in Arizona even though it began operations in Nevada over 10 years ago.
The company states that the Nevada sales and use tax, imposed on parts and equipment used to maintain aircraft, has impeded its growth in the
southern Nevada Grand Canyon air tour market. With grant of this abatement, the company plans to increasingly bring its aircraft maintenance to Boulder
City in conjunction with relocating employees to the state.
Scenic and Sightseeing Transportation
Alan Stephen - Vice President Corporate Affairs
1265 Airport Road, Boulder City, NV 89005
Grand Canyon Airlines, Inc.
Grand Canyon Airlines, Inc. operates sightseeing tours and scheduled passenger service over and around the Grand Canyon. The company has been in
continuous operation since 1927 and is the World's largest fixed-wing air tour company enplaning over 190,000 passengers annually from its bases of
operations. Grand Canyon Airlines operates two models of aircraft both of which are designated as Quiet Technology by the Federal Aviation
Administration. Source: Grand Canyon Airlines, Inc.
- The company currently has 1 aircraft and plans to purchase 2 new aircraft over a 5 year period.
- The company will purchase 1 new aircraft within the first 12 months and 5 over a 20 year period.
Check the applicable box when form has been completed.
7 (A) 7 (E) Employment Schedule
7 (B) 7 (F)
7 (C)
7 (D)
Tuition assistance Bonus
COLA adjustments Retirement Plan / Profit Sharing / 401(k) Other:
No
Medical Vision Dental
Qualified after (check one):
Upon employment Three months after hire date Six months after hire date Other:
Health Insurance Costs: Percentage of health insurance coverage by:
Cost of health insurance for company (annual amount per employee): Company: 84%
Health Plan annual out-of-pocket maximum (individual): Employee: 16%
Section 7 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below )
[SIGNATURE PAGE FOLLOWS]
$5,147.00
$5,500.00
$19.16
131
How many FTE employees prior to expansion?:
Average hourly wage of these new employees:
Merit Increase
$21.50
127
OTHER COMPENSATION (Check all that apply):
BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):
Other:
Package includes (check all that apply):
Section 9 - Employee Health Insurance Benefit Program
Average hourly wage of these existing employees:
Total number of employees after expansion:
Overtime
PTO / Sick / Vacation
Aviation Parts List
Aircraft Procurement List
Evaluation of Health Plan
Average hourly wage of these new employees:
60 days after the 1st of the following month
Is health insurance for employees and an option for dependents offered?: Yes (copy of benefit plan must be attached)
* FTE means a person who is in a permanent position of employment, works and average of 30 hours per week, and is eligible for company-sponsored health benefits.
Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both )
How many full-time equivalent (FTE*) employees will be created by the
New Operations / Start Up Expansions
Real Estate and Construction
4end of the first fourth quarter of expanded operations?:end of the first fourth quarter of new operations?:
Capital Equipment List
How many full-time equivalent (FTE*) employees will be created by the
2
Company Name: County:
Availability of qualified workforce: 4 Transportation infrastructure: 3
Labor costs: 5 Transportation costs: 4
Real estate availability: 3 State and local tax structure: 5
Real estate costs: 3 State and local incentives: 5
Utility infrastructure: 3 Business permitting & regulatory structure: 4
Utility costs: 3 Access to higher education resources: 3
Site Selection Factors
OTHER FACTORS & RATINGS:
Directions: Please rate the select factors by importance to the company's business (1 = very low; 5 = very high). Attach this form to the Incentives
Application.
Section 1 - Site Selection Ratings
Grand Canyon Airlines, Inc. Clark
5
Real Estate and Constructions Schedule, Detailed
The Office has determined the detailed Real Estate and Constructions schedule as described in this application constitutes confidential proprietary information of Grand Canyon Airlines, Inc., and is not a public record.
Equipment Schedule, Detailed
The Office has determined the detailed equipment schedule as described in this application constitutes confidential proprietary information of Grand Canyon Airlines, Inc., and is not a public record.
Aviation Parts Schedule, Detailed
The Office has determined the detailed Aviation Parts schedule as described in this application constitutes confidential proprietary information of Grand Canyon Airlines, Inc., and is not a public record.
Aircraft Procurement Schedule, Detailed
The Office has determined the detailed Aircraft Procurement schedule as described in this application constitutes confidential proprietary information of Grand Canyon Airlines, Inc., and is not a public record.
Employment Schedule, Detailed
The Office has determined the detailed employment schedule as described in this application constitutes confidential proprietary information of Grand Canyon Airlines, Inc., and is not a public record.
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