OPPORTUNITY ZONE PROSPECTUS - INVESTMENT PROPSECTUS 1
TABLE OF CONTENTS Executive Summary City of Ontario Overview - Location Map - Real Estate - Business & Employment - Infrastructure & Transportation - Ontario International Airport - Community Assets By the Numbers Education & Workforce Development Opportunity Zone Benefits Overview Ontario Opportunity Zone Ontario Opportunity Zone Areas - Historic Euclid Avenue District - Holt Boulevard Corridor - Ontario International Airport/Industrial District Contact Us - INVESTMENT PROPSECTUS 2
Ontario is a rapidly growing city located on the western edge of the Inland Empire, a metropolis of 4.2 million people and part of the Southern California mega-region of over 24 million people. Ontario has a diverse economy with a broad range of business sectors, including manufacturing and logistics, and an emerging technical and professional hub. Ontario is committed to embracing its historic roots while embracing the innovation that comes with growth and evolution of the economy. EXECUTIVE SUMMARY Ontario International Airport is growing and will continue to be a driving force for the regional economy. Ontario is investing in community assets that enhance the quality of life for the region and make Ontario a complete community where residents want to live, work and play. Ontario s Opportunity Zone covers four contiguous census tracts with tremendous opportunity for investors to make a big impact in the lives of area residents. Ontario has a strong commitment to improving educational outcomes and workforce development opportunities for residents. Ontario offers Strike Team service to help facilitate your development process. Contact Brad Gates in the Economic Development Agency at 909-395-2397 or bgates@ontarioca.gov. DISCLAIMER: The use of the word prospectus for the purpose of the work contained herein is not to advertise about, endorse or in any other way to promote or offer specific investment opportunities in cities OR OTHERWISE. The urban investment prospectus is a template designed to help unify city leaders around a plan, to show what might occur in a city and to use as a tool to promote the city and its plans. The prospectus has been prepared for discussion purposes only and not to induce any one to enter into any agreement or transaction. For the avoidance of any doubt, the distribution of this prospectus does not constitute an offer to sell or a solicitation of an offer to buy any assets or equity securities or any investment of any kind. - INVESTMENT PROPSECTUS 3
Located in the Heart of Southern California, the City of Ontario is located less than an hour away from all of the amenities and assets the region has to offer. Whether playing at the beach or skiing in the mountains, whether enjoying the vibrant nightlife of the top entertainment district in the world or golfing in a desert playground, Ontario is in the center of it all. - INVESTMENT PROPSECTUS 4
110 MILLION 5.3 MILLION REAL ESTATE 10 5,400 MILLION ROOMS square feet of industrial space square feet of office space square feet of retail space 2.8% vacancy 10+ million SF planned and under construction 9.9% vacancy 100,000+ SF planned and under construction 4.3% vacancy 500,000+ SF planned and under construction AVERAGE HOME VALUE in 50 hotels 78% occupancy 500+ rooms planned and under construction $424,000 an increase of 5.8% over last year and significantly more affordable than LA ($619,000) and Orange (725,000) counties More than - INVESTMENT PROPSECTUS 46,000 NEW HOMES planned in ONTARIO RANCH 5
BUSINESS & EMPLOYMENT With 119,425 jobs provided by 11,000 businesses, Ontario is a regional EMPLOYMENT HUB INDUSTRY 2018 2013 CHANGE 5-YEAR GROWTH TRANSPORT/WAREHOUSE 18,104 12,750 5,354 30% RETAIL TRADE 14,935 13,850 1,085 7% ADMIN SUPPORT 13,921 10,525 3,396 24% MANUFACTURING 13,837 11,050 2,787 20% WHOLESALE TRADE 12,727 10,025 2,702 21% EDUCATION/HEALTHCARE 9,860 6,125 3,735 38% LEISURE/HOSPITALITY 8,639 6,750 1,889 22% GOVERNMENT 6,451 3,925 2,526 39% CONSTRUCTION 5,611 3,600 2,011 36% PROF/SCI/TECH/MGMT 5,448 4,500 948 17% FINANCE 3,903 2,325 1,578 40% OTHER SERVICES 3,856 3,150 706 18% INFORMATION 2,133 1,525 608 29% TOTAL JOBS 119,425 90,100 29,325 25% TOP PRIVATE EMPLOYERS: UPS (6,000) BARRETT BUS. SERV. (2,000) NIAGARA BOTTLING (1,100) PRIME HEALTHCARE (700) ULINE (700) CARDINAL HEALTH (700) TOYOTA (700) WEST COAST UNIVERSITY (700) KAISER PERMANENTE (600) HOME DEPOT (600) - INVESTMENT PROPSECTUS 6
INFRASTRUCTURE & TRANSPORTATION Sitting at the intersection of a major transportation hub, Ontario residents, businesses and visitors are connected to the nation and the world. THREE MAJOR FREEWAYS - INTERSTATE 10 INTERSTATE 15 STATE ROUTE 60 TWO MAJOR RAILINES - UNION PACIFIC BURLINGTON SANTA FE ONE GLOBAL GATEWAY - ONTARIO INTERNATIONAL AIRPORT - INVESTMENT PROPSECTUS 7
ONTARIO INTERNATIONAL AIRPORT (ONT) In 2016, the newly formed Ontario International Airport Authority, a JPA created by the City of Ontario and the County of San Bernardino, officially took control of ONT. Over the past two years, the OIAA has focused on revitalizing the airport, with new air service, amenities, 2018 PASSENGERS - 5,115,894 2016 PASSENGERS - 4,251,903 development, and much more to come. 17% GROWTH OVER 2016 Over 65 daily passenger departures, including 19 non-stop destinations New destinations include routes to Taiwan, Mexico, JFK New York and Atlanta in May 2019 2018 AIR CARGO TONS - 751,529 2016 AIR CARGO TONS - 567,295 25% GROWTH OVER 2016 In November 2018, ONT was the number one airport in the nation for outbound freight, with 4.63% of all US shipments sent from Ontario. As a distribution and logistics hub, ONT is the 10th busiest airport* in the nation for cargo volume, and is the western air-hub for UPS. FedEx will also begin a $150 million expansion in 2019. SOURCE: FAA 2017 - INVESTMENT PROPSECTUS 8
COMMUNITY ASSETS Ontario has invested significantly in assets that enhance the quality of life for the entire region. CITY-OWNED, 11,000-SEAT, CITIZENS BUSINESS BANK ARENA, HOME TO OVER 300 PROFESSIONAL SPORTING AND ENTERTAINMENT EVENTS ANNUALLY. RECENTLY RANKED AS THE #69 ARENA IN THE WORLD FOR TICKET SALES. - INVESTMENT PROPSECTUS ONTARIO TOWN SQUARE, AN OPEN AIR AMPHITHEATRE, PLAZA AND PARK, IS LOCATED IN THE HEART OF ONTARIO S HISTORIC EUCLID AVENUE DISTRICT AND IS HOST TO CONCERTS AND COMMUNITY EVENTS THROUGHOUT THE YEAR. CITY-OWNED, 225,000 SQUARE FOOT CONVENTION CENTER, LESS THAN 1-MILE TO AIRPORT AND IN THE HEART OF CITY HOSPITALITY AND BUSINESS DISTRICT. HOST TO HUNDREDS OF THOUSANDS OF VISITORS TO ONTARIO EACH YEAR. 9
POPULATION MEDIAN INCOME LABOR FORCE UNEMPLOYMENT BY THE NUMBERS 177,589 up 5.7% over 5 years $60,086 up 2.1% over 5 years 87,700 3.4% POPULATION MEDIAN HOUSEHOLD INCOME UNEMP (12/18) POVERTY % ED BA+ % SOME COLLEGE % HSD % NO HSD MEDIAN AGE WHITE HISPANIC BLACK ASIAN OTHER CA 39,809,693 $71,805 4.2% 9.6% 33.6% 21.1% 20.8% 16.7% 36.5 37% 39.1% 5.5% 14.4% 4% MSA 4,590,893 $62,182 4% 11.3% 21.3% 24.5% 26.9% 18.7% 34.5 32% 51% 6.9% 6.7% 3.4% ONTARIO 177,589 $60,086 3.4% 10.9% 17.4% 22.9% 26.1% 24.6% 33.2 17.3% 67.9% 4.8% 6.6% 3.3% OPP ZONE 19,120 $42,717 N/A 32% 10.9% 20% 25.3% 43.8% 27.7 6% 82.7% 5.5% 4.4% 1.4% SOURCES: CA EMPLOYMENT DEVELOPMENT DEPT.; CA DEPT. OF FINANCE; ESRI Ontario is located in the western portion of the Riverside-San Bernardino-Ontario MSA, a region widely known as the Inland Empire, the two counties located east of Los Angeles and Orange counties. - INVESTMENT PROPSECTUS 10
EDUCATION & WORKFORCE The City of Ontario understands that in order to attract business and investment, the quality and availability of the workforce is essential. Ontario s central location gives businesses access to a highly skilled and abundant Southern California workforce. ONTARIO S COMMUNITY COLLEGE PROMISE This program is for Ontario residents who enroll as full-time students at a California community college of the students choice within 6 months of graduation from high school. The scholarship provides for up to two years of tuition for eligible students who do not already qualify for Financial Aid. Ontario has partnered with local school districts to create the Promise Scholars program, which provides a pathway for every Ontario student to go to college or career training after high school. Over 20,000 students participate annually. www.promisescholars.org Ontario businesses can take advantage of multiple workforce and training resources provided through the San Bernardino County Workforce Development Board and the State of California Employment Training Panel. Services include but are not limited to: Employee Recruitment Wage Reimbursement for New Hires New Hire Training Business Improvement Consulting Incumbent Worker Training Business Workshops - INVESTMENT PROPSECTUS 11
OPPORTUNITY ZONE PROGRAM BENEFITS The Tax Cuts and Jobs Act of 2017 established Internal Revenue Code 1400Z, establishing OPPORTUNITY ZONES The Opportunity Zone Program provides an incentive for investors to reinvest capital gains into Opportunity Funds in exchange for temporary tax deferral and reduction tied to long-term investing. The provision has two main tax incentives: Allows for the temporary deferral of capital gains taxes. Investors that hold Opportunity Fund Investments for 5 years can reduce their gains by 10% (will only owe taxes on 90% of their capital gains). Investors that hold Opportunity Fund Investments for 7 years can reduce their gains by another 5% (will only owe taxes on 85% of their capital gains). Taxes are deferred until they sell their Opportunity Fund Investment, or December 31, 2026 whichever is sooner. Excludes from taxable income the capital gain associated with the sale of the original investment if the investment is held for at least 10 years. - INVESTMENT PROPSECTUS 12
OPPORTUNITY ZONE - INVESTMENT PROPSECTUS 13
OPPORTUNITY ZONE The Ontario Opportunity Zone consists of four census tracts that are grouped into three distinct areas based on geographic location and the type of opportunities available within each area. - INVESTMENT PROPSECTUS 14
HISTORIC EUCLID AVENUE DISTRICT OPPORTUNITY ZONE POPULATION 3,246 Households 1,276 Poverty 17.5% OPPORTUNITY ZONE JOBS 2,178 Businesses 322 Top 3 Sectors Retail Trade - 13.7% Healthcare/Social - 13% Professional - 10.9% VACANT COMMERCIAL PROPERTIES 10 - INVESTMENT PROPSECTUS 15
HISTORIC EUCLID AVENUE DISTRICT Downtown Assets Civic heart of Ontario, with City Hall, City Library, Senior Center and two museums Ontario Town Square, host to thousands of event attendees per year Historic, tree-lined Euclid Avenue Planned construction of $80 million campus for Chaffey Community College to begin mid-2020 $200+ million in public investment over past 10 years in new parks, facilities and amenities Hundreds of multi-family housing units to be constructed over next five years Downtown Opportunities - INVESTMENT PROPSECTUS Investment in mixed-use, multi-family housing, rehabilitation of historic commercial buildings to house new office, retail and restaurant uses. Invest in Housing, Retail, Restaurant and other uses complimentary to the new college campus, which will accommodate up to 5,000 students. 16
HOLT BOULEVARD CORRIDOR OPPORTUNITY ZONE POPULATION 10,132 Households 2,498 Poverty 35.8% VACANT COMMERCIAL PROPERTIES 13 OPPORTUNITY ZONE JOBS 1,266 Businesses 123 Top 3 Sectors Retail Trade - 17% Accommodation/Food Service - 14% Real Estate - 11% - INVESTMENT PROPSECTUS 17
HOLT BOULEVARD CORRIDOR Holt Corridor Assets Close proximity to transportation assets, such as freeways, rail lines, and airport Close to Ontario Convention Center and other visitor and tourism related businesses Single-family residential neighborhoods with schools, parks and recreation facilities Major historic east-west thoroughfare that once connected Los Angeles with Palm Springs before construction of Interstate 10 Holt Corridor Opportunities - INVESTMENT PROPSECTUS Multiple investment opportunities for mixed-use commercial and multi-family development centered at major intersections Restaurant, retail and visitor-related uses near the Ontario Convention Center Opportunity to revitalize an historic boulevard with many vacant land parcels and structures in need of rehabilitation 18
ONTARIO AIRPORT/INDUSTRIAL CORE OPPORTUNITY ZONE POPULATION 5,742 Households 1,497 Poverty 34.3% VACANT COMMERCIAL PROPERTIES 77 OPPORTUNITY ZONE JOBS 13,777 Businesses 638 Top 3 Sectors Retail Trade - 16.6% Manufacturing - 11% Automotive - 10.3% - INVESTMENT PROPSECTUS 19
ONTARIO AIRPORT/INDUSTRIAL CORE ONT/Industrial Assets Ontario International Airport, home to air cargo hubs for UPS and FedEx, in addition to over 5 million commercial passengers annually Millions of square feet of existing industrial real estate, hundreds of businesses and thousands of employees Ontario Convention Center, hospitality district and immediate access to Interstate 10 Two rail lines border district, BNSF and Union Pacific, as well as major roads Holt and Mission Blvds. ONT/Industrial Opportunities - INVESTMENT PROPSECTUS Majority of land within area is zoned for industrial use Opportunity to redevelop older industrial assets Investment in airport related, especially air cargo related, industrial assets 20
CONTACT INFORMATION - INVESTMENT PROPSECTUS 21