NEVADA. A Place to Grow. A Place to Thrive.

NEVADA A Place to Grow. A Place to Thrive. Reno-Sparks MSA (Washoe County) Nevada May 2018

NEVADA Leading Edge of Business Opportunity Nevada. A place to grow. A place to thrive. Nevada is a state filled with opportunity, industry, technology and superior quality of life. At the heart of the 11 Western states, the Silver State has easy access to California s vital markets, a superior telecommunications structure and a liberal tax structure with no personal income tax and no state corporate income tax. From fast-paced cities (among the fastest growing in the nation), to comfortable, family-based communities, Nevada has the perfect business climate to meet your needs, whether you are looking for a smarter way of doing business or for more fresh air and wide-open spaces. With extensive arts and culture, diversity, quality education and dependable public services, it is no wonder Nevada has become one of the fastest growing states in the United States. Tax Structure NO Corporate Income Tax NO Personal Income Tax NO Inventory Tax NO Unitary Tax NO Estate and/or Gift Taxes NO Franchise Tax NO Inheritance Tax NO Special Intangible Tax The recreational opportunities in Nevada are as diverse as the landscape that spans the state. From majestic snow capped Sierras in northern Nevada to the illusionary red rock desert in southern Nevada the opportunity for outdoor activity has no end. Fishing, boating, hiking, mountain biking and offroading are just a few activities to participate in. The incentives of doing business in Nevada are expansive. Nevada boasts one of the most liberal tax structures in the nation and from a tax-planning perspective, the return on investment in the form of tax saving dollars can be enormous. Explore the numerous advantages of doing business in Nevada. 2 Opportunity Nevada opportunitynevada.com

NEVADA Economic Growth Potential NEVADA #3 Note: The Economic Growth Potential ranking is based on a number of factors, including but not limited to, growth strategies, targeted incentives, workforce training initiatives, high-tech sector development, support for innovation and startups and availability of low-cost energy. RANK STATE 1 Colorado 2 Utah 3 NEVADA 4 Texas 5 North Carolina 6 Ohio 7 Oklahoma 8 New Mexico 9 Louisiana 10 Mississippi Source: Business Facilities, 13th Annual Rankings Report: State Rankings Opportunity Nevada opportunitynevada.com 3

NEVADA Policy Friendly State NEVADA #1 Note: Rankings are based on 50 major governmentimposed or government-related costs impacting small businesses and entrepreneurs. Policy-friendly states are defined as those states with lighter governmental burdens and better environments for entrepreneurship. TOP 5 STATES RANK STATE 1 NEVADA 2 Texas 3 South Dakota 4 Wyoming 5 Florida BOTTOM 5 STATES RANK STATE 46 Vermont 47 Minnesota 48 New York 49 New Jersey 50 California Source: SBE Council, Small Business Policy Index 2017 4 Opportunity Nevada opportunitynevada.com

Nevada Governor s Office Of Economic Development Incentive Programs: Business Location Assistance NEVADA BUSINESS INCENTIVES The intent is to favorably alter business location decisions by creating tax incentives for companies locating operations in Nevada. Program standards set forth in NRS 360.750. 1 Approximate 75% tax abatement on capital equipment purchases - rate reduced to 2% NRS 374.357 2 Up to 50% abatement for up to 4 years on quarterly payroll over $50,000 taxed at 1.475% NRS 363B.120 3 Up to 50% abatement for up to 10 years on personal property NRS 361.0687 4 Up to 50% abatement for up to 10 years on real property for qualified recycling businesses NRS 701A.210 5 Approximate 75% sales tax and 50% personal property tax abatements for up to 20 years AB 161 78th (2015) Session 6 Approximate 75% sales tax and 75% personal property tax abatements for up to 10 or 20 years SB 170 78th (2015) Session *Manufacturing, **Non-Manufacturing Ŧ whichever is greater ^100% average statewide wage, wage listed is FY18, ^^whichever is less The applicant will provide a medical insurance plan for all employees including an option for dependent health insurance coverage of which the employer will pay at least 65% of the premium. The applicant is expected to register pursuant to the laws of Nevada and to obtain all licenses and permits required by Nevada and the county, city, or town in which business operates. The applicant commits to maintaining the business in Nevada for 5 years. Source: Nevada Governor s Office of Economic Development, April 2018 Opportunity Nevada opportunitynevada.com 5

NEVADA UTILITIES ELECTRICITY Average Retail Price of Electricity to Ultimate Customers by End-Use, by State Through December 2017, Nevada s average retail price for all sectors was 8.3% lower than the Mountain states, 45.7% lower than California, and 16.9% lower than the United States. Location Residential Commercial Industrial Transportation All Sectors Mountain States 11.94 9.68 6.50 9.88 9.55 Arizona 12.50 10.58 6.45 9.63 10.71 Colorado 12.13 9.95 7.29 9.77 9.94 Idaho 10.11 8.02 6.69 0.00 8.30 Montana 11.11 10.20 5.15 0.00 9.02 Nevada 12.00 7.98 6.13 8.61 8.76 New Mexico 12.92 10.27 6.01 0.00 9.64 Utah 11.04 8.74 6.12 10.26 8.66 Wyoming 11.41 9.75 6.91 0.00 8.29 Pacific States 15.07 13.82 9.58 8.70 13.38 California 18.24 15.89 12.87 8.68 16.14 Oregon 10.71 8.88 6.19 9.35 8.98 Washington 9.60 8.51 4.66 9.06 7.94 US Total 12.90 10.68 6.91 9.67 10.54 Through December 2017, Nevada s average retail price for industrial customers was 5.7% lower than the Mountain states, 52.4% lower than California, and 11.3% lower than the United States. Cents per Kilowatthour 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Industrial Rates Industrial Rates 6.50 6.45 7.29 6.69 5.15 6.13 6.01 6.12 6.91 9.58 12.87 6.19 4.66 6.91 Numbers do not include taxes. Nevada s numbers do not include franchise taxes or the UEC. The REPR, TRED, and EE rates are included. The charts above represent rates charged over the period November 2016 through ecember 2017. This table is an average and should not be used to determine costs for a specific project or client. All numbers represented are cents per kilowatt-hour. Source: NV Energy, April 2018 6 Opportunity Nevada opportunitynevada.com

NEVADA LOCATION/MARKET ACCESS Centrally located in the Western market, Nevada is ideal for manufacturing, distribution/logistics, information technology, tourism and many other industries. Collectively, Las Vegas, Reno, Sparks, Carson City and adjacent Nevada towns and business parks are less than one day s drive to more than 50 million consumers as well as to the major U.S. deep-water seaports serving the Pacific Rim. Our unparalleled transportation infrastructure and market reach, combined with our zero inventory tax, are why top brands such as Amazon, Zappos, Wal-Mart, Levi Strauss & Co., Sysco and CDW chose to locate their warehousing, distribution and Internet fulfillment operations in Nevada. Source: Governor s Office of Economic Development Foreign Trade Zones Foreign Trade Zone 126 is located in northwest Nevada, centered off the International Customs Port in Reno, Nevada. Our zone has been approved for Alternative Site Framework (ASF), providing maximum flexibility to potential zone users. Property covered includes southern Washoe county, all of Storey, Carson, and Douglas counties, northern Lyon county, and western Churchill county roughly 5,000 square miles of available FTZ space. ASF designation allows potential users the flexibility of location, as well as quick approval for zone activity. Opportunity Nevada opportunitynevada.com 7

NEVADA FINANCIAL RESOURCES Financial Resources Industrial Development Revenue Bonds The Department of Business and Industry administers the state s share of bonding authority for the issuance of tax-exempt private activity bonds to ensure the full utilization of tax-exempt bonding authority, as well as coordinating the allocation of bonding authority between competing state and local interests in a fair and equitable manner. Silver State Opportunities Fund As part of the Nevada Capital Investment Corporation program, the Silver State Opportunities Fund is operated by private equity fund managers who work with capital investment firms to invest in select companies and innovative businesses that will assist in the state s efforts to grow and diversify Nevada s economic base. Nevada Microenterprise Initiative The program helps address and enhance the economic self-sufficiency and quality of life of low- to moderate-income individuals through entrepreneurial training and access to loans for news and expanding businesses. Nevada Small Business Development Center This statewide resource for business assistance through the University of Nevada provides a mix of services, expertise and training for starting, operating and expanding a business. The center, with 11 locations throughout the state, also provides data about the economy, business environment and population demographics, as well as information and guidance for complying with environmental regulations. State Small Business Credit Initiative The $13.8 million fund assists with the growth of small and micro-enterprise businesses. Catalyst Fund Created in 2011, Nevada s Catalyst Fund incentivizes the expansion or relocation of businesses that will quickly result in the creation of high-quality, primary jobs in Nevada. This fund offers a tool to Regional Development Authorities to assist their efforts to close deals with viable companies that will enhance the state s economic sectors and offer stable jobs with good pay and benefits. Nevada New Market Jobs Act The purpose of the act is to encourage capital investment in low-income communities and create new jobs in Nevada. The Nevada New Markets Tax Credit (NMTC) program is an alternative financing complement to conventional capital sources and is patterned after the Federal NMTC Program. U.S. Small Business Administration Loan Programs The U.S. Small Business Administration (SBA) provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, including debt financing, surety bonds, and equity financing. The programs are many and varied, and the qualifications for each are specific. SBA can help facilitate a loan for with a third party lender, guarantee a bond, or help find venture capital. Source: Nevada Governor s Office of Economic Development 8 Opportunity Nevada opportunitynevada.com

NEVADA BUSINESS RESOURCES Center for Business and Economic Research (CBER) CBER was established in 1975 to make available academic expertise in research projects that assist in the development of the Nevada economy, with special emphasis on the southern Nevada business community. The center also aims to assist state and local agencies and private-sector enterprises in the collection and analysis of economic and market data in a way that contributes to the diversification and growth of the southern Nevada economy. An important part of CBER s ongoing work is to collect, analyze and disseminate data on Nevada s businesses and economy. Nevada Industry Excellence Nevada Industry Excellence (formerly MAP) assists businesses in the manufacturing, construction and mining industries to become the premier industry leaders in the Nevada market. That s because Nevada Industry Excellence enables businesses to be flexible and responsive in a rapidly changing marketplace, by providing the expert resources and programs to improve processes, increase efficiencies and productivity. Nevada Small Business Administration The Nevada SBA provides assistance primarily through Access to Capital (Business Financing), Entrepreneurial Development (Education, Information, Technical Assistance & Training), Government Contracting (Federal Procurement) and Advocacy (Voice for Small Business). Nevada Tech Transfer In a cooperative effort with USC ETTC NASA s Far West Regional Technology Transfer, the center assists inventors and entrepreneurs applying for Small Business Innovation Research funding through the Federal government and identification of other possible loan sources. SCORE Southern Nevada Chapter Northern Nevada Chapter SCORE, Counselors to America s Small Business, is a nonprofit association dedicated to educating entrepreneurs and the formation, growth and success of small business nationwide. SCORE is a resource partner of the U.S. Small Business Administration (SBA). State of Nevada Department of Business and Industry The Department of Business and Industry is a cabinet level agency in Nevada State government. Their objective is to encourage and promote the development and growth of business and to ensure the legal operation of business in order to protect consumers by maintaining a fair and competitive regulatory environment. The Director s office manages a number of programs and initiatives to address the needs of small businesses, homeowners and consumers including small business advocacy, bond programs, access to capital, housing retention programs, constituent services and fraud prevention and education. Opportunity Nevada opportunitynevada.com 9

NEVADA TRAINING INCENTIVES & RESOURCES Training Incentives & Resources Silver State Works On the Job Training Employers can receive as much as $2,000 for each state-qualified employee hired. Workforce Innovations for a New Nevada (WINN) WINN represents the first workforce development training program of its kind in Nevada and is a commitment to businesses to arm them with the skilled employees that they need. The program is administered by GOED in coordination Nevada System of Higher Education, the Governor s Office of Workforce Innovations, the Department of Employment, Training and Rehabilitation, and the Nevada Department of Education. Since its inception, WINN has made more than $3 million in strategic investments to enable accelerated on-ramps to high-skill and high wage jobs in a New Nevada. Source: Nevada Governor s Office of Economic Development 10 Opportunity Nevada opportunitynevada.com

WASHOE COUNTY NEVADA EMPLOYERS Largest Employers Company Industry Number of Employees Washoe County School District Elementary & Secondary Schools 7000-7499 University of Nevada, Reno Colleges & Universities 4500-4999 Renown Regional Medical Center General Medical & Surgical Hospitals 3000-3499 Washoe County Executive & Legislative Offices 2500-2999 Peppermill Hotel Casino Casino Hotels 2000-2499 Silver Legacy Resort Casino Casino Hotels 2000-2499 Grand Sierra Resort & Casino Casino Hotels 2000-2499 Atlantis Casino Resort Casino Hotels 1500-1999 IGT Manufacturing 1500-1999 Saint Mary s General Medical & Surgical Hospitals 1500-1999 City of Reno Executive & Legislative Offices 1000-1499 Sierra Nevada Healthcare System General Medical & Surgical Hospitals 1000-1499 Nugget Casino Resort Casino Hotels 1000-1499 United Parcel Service Couriers 1000-1499 Truckee Meadows Community College Junior Colleges 900-999 Eldorado Hotel & Casino Casino Hotels 900-999 Aerotek Temporary Help Services 700-799 Arrow Electronics Inc Electronic Parts Distribution 700-799 Circus Circus Reno Casino Hotels 700-799 City of Sparks Executive & Legislative Offices 600-699 Source: Nevada Department of Employment, Training & Rehabilitation, 3Q 2017 Opportunity Nevada opportunitynevada.com 11

WASHOE COUNTY NEVADA DEMOGRAPHICS Population Year Est. Population Annual Growth Rate 2017 460,587 1.8% Source: U.S. Census Bureau, estimate Gender Year Est. Population Male Female # % # % 2016 439,914 221,166 50.3 218,748 49.7 Source: U.S. Census Bureau, American Community Survey, Demographic & Housing Estimates Age The median age is 37.9 Under 14 15-19 20-24 25-34 35-44 # % # % # % # % # % 81,985 18.6 27,379 6.2 31,485 7.2 62,897 14.3 54,131 12.3 45-54 55+ # % # % 59,639 13.6 122,398 27.8 Source: U.S. Census Bureau, American Community Survey, Demographic & Housing Estimates Numbers based on 2016 population Race/Ethnic Origin White Black Indian*/ Alaskan Asian/Pacific Islander Hispanic/ Latino Some Other Race # % # % # % # % # % # % 369,206 83.9 14,651 3.3 11,249 2.6 36,479 8.3 103,468 23.5 27,419 6.2 In combination with one or more of the other races listed. The six numbers may add to more than the total population, and the six percentages may add to more than 100 percent because individuals may report more than one race. *American Indian Source: U.S. Census Bureau, American Community Survey, Demographic & Housing Estimates, numbers based on 2016 population Income Per Capita Income Median Household Income Median Family Income $29,942 $54,955 $68,291 Source: U.S. Census Bureau, American Community Survey, Selected Economic Characteristics Educational Attainment 84% of the population 25 and over within Clark County, Nevada has achieved a high school diploma or higher. High School Diploma Only Some College Associate Bachelor s Graduate/Professional # % # % # % # % # % 71,267 23.8 78,486 26.2 23,739 7.9 54,621 18.3 32,054 10.7 Source: U.S. Census Bureau, American Community Survey, Selected Social Characteristics Numbers based on 2016 population over 25 (1,922,125) 12 Opportunity Nevada opportunitynevada.com

Employment Labor Force Employed Unemployed Unemployment Rate (Local) April 2018 247,697 238,114 9,583 3.9 Source: Nevada Department of Employment, Training and Rehabilitation (DETR) Job Growth % of Job Growth April 2018 4.3 Source: Nevada Department of Employment, Training and Rehabilitation (DETR) Labor Relations Nevada is a Right-to-Work state. Right-to-Work law secures the right of employees to decide for themselves whether or not to join or financially support a union. However, employees who work in the railway or airline industries are not protected by a Right-to-Work law and employees who work on a federal enclave may not be protected. Source: Nevada Department of Employment, Training and Rehabilitation (DETR) Workman s Compensation Nevada law requires all business owners to obtain and maintain workman s compensation coverage. Workman s Compensation Premium Rate Ranking State Ranking Index Rate Percent of Study Median Nevada* 43 1.31 71% Arizona 38 1.50 82% California 1 3.24 176% Colorado 35 1.56 84% Idaho 28 1.79 97% Montana 11 2.10 114% New Mexico 20 1.92 104% Oregon 45 1.28 69% Utah 46 1.27 69% Washington 15 1.97 107% Wyoming 23 1.87 101% RENO-SPARKS MSA LABOR & WORKFORCE Source: Oregon Department of Consumer and Business Services, Workers Compensation Premium Rate Ranking Study, October 2016 *Note: Nevada also has a payroll cap: $36,000 of reportable payroll per employee, per employer, per year. However, no adjustment was made to Nevada s rates to compensate for its payroll limitation on workers compensation premium. Rankings are based on a scale of 1 to 51, 1 being the highest rates and 51 being the lowest Opportunity Nevada opportunitynevada.com 13

RENO-SPARKS MSA WAGES & AVAILABILITY Job Title Est. Employment Mean Wage Total All Occupations 212,530 $21.74 Management Occupations 11,350 $49.27 Business and Financial Operations Occupations 8,050 $32.16 Computer and Mathematical Occupations 3,480 $34.28 Architecture and Engineering Occupations 2,500 $35.88 Life, Physical, and Social Science Occupations 2,880 $29.58 Community and Social Service Occupations 2,430 $24.71 Legal Occupations 1,120 $56.09 Education, Training and Library Occupations 11,830 $24.23 Art, Design, Entertainment, Sports, and Media Occupations 2,940 $23.38 Healthcare Practitioners and Technical Occupations 10,640 $42.57 Healthcare Support Occupations 4,270 $15.86 Protective Service Occupations 4,020 $20.95 Food Preparation and Serving-Related Occupations 21,840 $10.99 Building and Grounds Cleaning and Maintenance Occupations 8,690 $12.08 Personal Care and Service Occupations 8,710 $12.09 Sales and Related Occupations 22,550 $18.19 Office and Administrative Support Occupations 36,220 $17.68 Farming, Fishing and Forestry Occupations 180 $14.63 Construction and Extraction Occupations 11,460 $22.83 Installation, Maintenance, and Repair Occupations 8,120 $21.65 Production Occupations 10,660 $16.27 Transportation and Material Moving Occupations 18,580 $16.67 Source: Nevada Department of Employment, Training and Rehabilitation (DETR), 2016 Wages 14 Opportunity Nevada opportunitynevada.com

Reno Tahoe International Airport As the 66th busiest commercial airport in the nation, Reno-Tahoe International Airport (RTIA) serves approximately 4 million passengers per year. Located only 5 minutes from downtown Reno and 40 minutes from some of the finest ski resorts and outdoor recreation in the world, Reno-Tahoe International is the Gateway to Lake Tahoe and the entire region. Nine different airlines offer service at Reno-Tahoe International with 14,000 seats available through the airport each day. The airport also prides itself on a high level of customer service and convenience. 4 M Yearly Passengers RENO-SPARKS NEVADA AIRPORTS 66 th Busiest Airport in North America 23 Nonstop Destinations Sources: McCarran International Airport, Airport Council International - North America, The Boyd Co., Inc. Reno-Stead Airport Reno-Stead Airport s a general aviation airport located north of Reno. The physical facilities include two asphalt runways (7,600 ft. and 8,080 ft.) on 5,000 acres, lights, hangars and full services. Aviation Classics Limited is the fixed-based operator. In addition, the Nevada Army National Guard has an Aviation Support Facility at the airport, from which military training activities are conducted. Reno-Stead Airport is home to the Reno National Championship Air Races every September. Opportunity Nevada opportunitynevada.com 15

NORTHERN NEVADA EDUCATION Four Year Institutions University of Nevada, Reno Students come here for a number of reasons but on the top of that list is the high quality education provided. University of Nevada, Reno is proud to be recognized as a National Tier 1 University by U.S. News & World Report. The University s continued ranking in the top-tier is a statement about the students they attract, the graduates they produce, the quality of their faculty and their world-improving research and creativity. Great Basin College (GBC) Two generations of students many of them now citizens and community leaders have studied at Great Basin College since it opened in 1967. Students of the new millennium, like those who studied at GBC before them, have access to contemporary knowledge in classes and the benefit of instructors who truly cherish the learning process. They will also benefit from an excellent library, the most current computing facilities, and well-equipped laboratories. They participate in a time-honored schedule of traditional classes and in a rich array of short courses presented by active scholars from Nevada and the West. Community Colleges Truckee Meadows Community College (TMCC) Truckee Meadows Community College is a comprehensive community college located in Reno, Nevada. The college serves more than 28,000 students each year in credit and noncredit programs at five college sites and more than 20 community locations. Western Nevada College (WNC) Since 1971, Western Nevada College has helped students prepare for careers, earn a college degree, and get started on the road to success. WNC offers high quality and affordable college education, in a caring environment that respects the individual. Many Western grads have become leaders in their communities and excel in their professions. WNC reaches out to everyone with multiple campuses, learning centers and online classes. 16 Opportunity Nevada opportunitynevada.com

BUSINESS COST COMPARISON Opportunity Nevada opportunitynevada.com 17

RENO-SPARKS NEVADA QUALITY OF LIFE Things are heating up in Reno Tahoe. Get your boots dirty ascending a mountain peak and then slip on your dancing shoes for a night out in the land with no last call. Longer days mean you can do it all. All in one place. This is where majestic mountains converge on high desert. Reno is the hub for adventure. Take a stroll on the wooden sidewalks of a mining town (that may or may not be haunted). Drive to the highest concentration of ski resorts in under an hour. Experience the wide-open spaces of the Black Rock Desert. You can do it all and still be back in time for happy hour. Elevate your night - down a craft beer at a rooftop bar and make your story legendary. Grab your friends, old and new, and seize the night. With events, concerts and cool stuff happening every weekend, staying in is the only thing that s off the table. Source: RenoTahoe Cost of Living Location Composite Grocery Housing Utilities Trans. Health Misc. Phoenix, AZ 95.1 97.6 95.2 96.6 91.7 98.0 93.9 Oakland, CA 149.5 126.0 217.5 114.3 130.3 123.5 122.0 Denver, CO 112.0 98.3 133.5 94.0 105.5 105.7 107.6 Boise, ID 92.5 89.9 87.9 86.2 107.5 103.8 93.6 Bozeman, MT 100.4 102.2 107.8 77.5 95.3 103.5 101.0 Albuquerque, NM 94.9 93.2 93.5 84.4 101.4 101.3 97.1 Reno, NV 106.8 100.4 106.8 85.0 112.9 110.7 113.3 Portland, OR 129.3 115.6 179.0 78.4 106.3 107.5 117.8 Austin, TX 97.5 88.1 101.9 88.2 93.3 99.7 100.9 Salt Lake City, UT 97.1 107.2 94.1 75.7 103.5 99.0 99.7 Seattle, WA 149.0 127.1 194.2 123.8 133.1 124.6 135.5 Laramie, WY 95.6 109.7 81.9 109.8 94.6 99.0 96.9 Source: American Chamber of Commerce Association (ACCRA), 2017 Annual Average Data 18 Opportunity Nevada opportunitynevada.com

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