AEROSPACE/AVIATION MRO OEM R&D UAV TECHNOLOGY. Land your Business in Mesa, AZ

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1 ECONOMIC DEVELOPMENT Land your Business in Mesa, AZ With a population of nearly 500,000, Mesa, Arizona is the 38th largest city in the United States and second largest in the metropolitan Phoenix area. Larger than Miami, Minneapolis, Atlanta and St. Louis, Mesa encompasses 133 square miles inside a 21-city region that has a population of 4.3 million, and is projected to grow to 6 million people by AEROSPACE/AVIATION MRO OEM R&D UAV TECHNOLOGY

2 ECONOMIC DEVELOPMENT EXCELLENCE IN AEROSPACE Mesa is a national recipient of Expansion Solutions Magazine s 2008 Award of Excellence in Aerospace. This award recognizes organizations that have made exceptional progress in economic development by successfully recruiting and retaining businesses in the aerospace industry. Seattle Southern California Denver Montreal Chicago Wichita Northern Florida Proximity and access to California, Colorado, Utah, New Mexico, and Nevada, expands the market to a population of more than 56 million people 2 with a $2.9 trillion 3 gross domestic product (GDP), which would rank fifth internationally. 4

3 A Perfect PLACE TO DO BUSINESS The Phoenix-Mesa region is a vibrant place to live, work and play. With 325 days of sunshine annually, Arizona is well known for its near-perfect, year-round flying weather and breathtaking vistas that residents and millions of visitors enjoy. Brazil MESA S AIRPORTS ANCHOR TOP COMPANIES AND DEVELOPMENTS Mesa boasts two airports: Mesa Falcon Field Airport and Phoenix-Mesa Gateway Airport. Each offers a diverse portfolio of aerospace, defense, aviation and other high-tech industries, plus the operations to support those such as MRO, cargo and R&D activities. Long runways to accommodate commercial, general and recreational aviation. Acres of land available for lease or purchase, with existing buildings or greenfield. World s top aerospace, defense and aviation companies call Mesa home: - Cessna - The Boeing Company - Embraer - MD Helicopters - The Timken Company - Allegiant Airlines - Lockheed Martin - L3 Communications - CAE Oxford Aviation Academy - Arizona Laboratories for Security - Silverado Cable and Defense Research (AZ Labs) - Able Engineering - Phoenix Heliparts - Aeromaritime America, Inc. - Starman Bros. Auctions - Dukes Aerospace, Inc. - ATK - NAMMO Talley More than 100 companies are adjacent to the airports employing more than 10,000 employees in aerospace/aviation, high-tech, manufacturing, and software industry clusters. Excellent access to freeways within one mile of each airport, and rail is in close proximity. More than $22 million in new infrastructure development is planned for completion by end of 2015.

4 Phoenix-Mesa Gateway Airport (AZA) Gateway Airport is an attractive alternative to Phoenix Sky Harbor International Airport. The Airport has three long runways, 10,400 ft., 10,200 ft., and 9,300 ft. and will accommodate any size aircraft. In 2013, Gateway Airport served 1.3 million passengers. By 2030, the Airport is projected to serve 10 million passengers annually. Allegiant Air serves passengers through Gateway Airport to more than 35 locations across the U.S. including San Francisco/Oakland (OAK), Honolulu (HNL), and Cincinnati (CVG). More than 1,000 acres are available for development in the Gateway Airport area. The Airport is ideal for maintenance, repair and overhaul related companies in addition to manufacturing operations. U.S. Customs are on-site at the Airport, as well as US-VISIT (a U.S. Customs and Border Protection management system) for international charters (up to 20 passengers and crew). The Airport has an FAA-Contract Air Traffic Control Tower. When we were deciding on a site for our new facility we had many great choices, including out-of-state. The City of Mesa s Mayor, Scott Smith, and his team worked hard to come up with a win-win scenario that made Phoenix-Mesa Gateway Airport the best value alternative for Able Engineering. All the way through the process we felt like the City of Mesa was a true partner and we look forward to many successful years working in and with the City of Mesa. Lee Benson CEO, Able Engineering

5 INCENTIVES FOR KEY SECTORS 5 Programs and incentives for qualifying businesses continue to attract high-tech sectors to Mesa: Mesa stands out as a city that does not have a primary property tax, resulting in significant savings to companies that choose to locate here compared to other cities within and outside Arizona. Foreign Trade Zone benefits reduce real and personal property tax by nearly 80 percent and other cost saving benefits. Military Reuse Zone can reduce real and property tax by up to 75 percent for a period of five years, eliminates county and state sales tax on new construction, and offers income tax credit for new employees. Job Training programs exist at the state, regional and local levels, and can be customized based on the project. Contact the City of Mesa for additional details. The Quality Jobs Tax Credit is a state incentive that provides tax credits to employers creating a minimum number of net new quality jobs and making a minimum capital investment in Arizona. The Qualified Facility Tax Credit is a state incentive that provides a refundable tax credit to taxpayers who are expanding or locating a Qualified Facility in Arizona. Additional Depreciation, as part of the Arizona Competitiveness Package, enhances Arizona s additional depreciation allowance for property tax and substantially reduces tax liability for most personal property devoted to commercial, industrial and agricultural uses by reducing the taxable value of such property during its first five years of use (by increasing the depreciation factored in determining such value). TALENTED WORKFORCE AT COMPETITIVE WAGES 6 The State of Arizona is a right-to-work state with a low level of unionization. Arizona labor wage rates are 14 percent below the national average. Arizona is ranked the lowest in the nation for workers compensation insurance tax. 7 Skilled talent, easy to attract and retain workforce. BUSINESS-FRIENDLY 8 Arizona has a progressive business environment that is supported locally in the City of Mesa. Recent legislation has continued to improve the operating environment for businesses with: Property tax reductions. New corporate tax structure that benefits firms in Arizona doing business outside of the state. Embraer Executive Jet Services (EEJS) support strategy to serve its existing and new Phenom and Legacy business jet customers included the deployment of new Embraer Owned Maintenance, Repair and Overhaul (MRO) Service Centers across North America. After a series of extensive studies performed to determine the optimum location for the construction of these EEJS MRO centers, one of the sites retained was Mesa, Arizona. Mesa offers a wonderful hub location for many of our Western United States customers. Weather is mild and predictable making pilot workload easier on flight planning. Mesa is without a doubt a winning location for one of Embraer s Executive Jet Service Centers. Jacques Blondeau Director MRO Centers Embraer Executive Jets LAUNCHPOINT, THE MESA TECHNOLOGY ACCELERATOR LAUNCHPOINT, created in collaboration with Arizona State University, is located on the Arizona State University Polytechnic campus and adjacent to the Phoenix-Mesa Gateway Airport and Arizona Laboratories for Security and Defense (AZLabs). LAUNCHPOINT provides facility space, flexible leases, direct business assistance and guidance, educational opportunities, mentoring, and other technical and operational resources for young, technology-driven companies. Target industries include aerospace, engineering and technology development.

6 EDUCATION OFFERS STRONG PARTNERSHIPS FOR BUSINESSES Mesa is home to: - Arizona State University-Polytechnic Campus - Grand Canyon University (Fall 2016) - Mesa Community College - Chandler-Gilbert Community College - East Valley Institute of Technology Each offers specialized training for high-tech industries including composites, manufacturing and electronics technology, plus aeronautical engineering, airport management, air traffic control, pilot training, aircraft maintenance and more. These educational partners offer customized curriculum developed with local businesses to train new or existing workers to quickly respond to changing market demands. ABUNDANT RESOURCES AND RELIABLE POWER Utility services, water and sewer services are excellent in the City of Mesa. In the business parks, electricity and natural gas are available at levels necessary to support high-volume commercial and industrial users. Prices are equal to or even below national averages. Contact the City of Mesa Office of Economic Development for a customized proposal. Unmanned Aerial Technology Taking off in Mesa Mesa is an ideal place for unmanned aerial vehicle (UAV) and unmanned aerial systems (UAS) business ventures. Unmanned aerial systems are being developed by Boeing in Mesa for uses outside of the defense industry. This same technology has applications for other business-related purposes including potential future use in commercial aviation. Mesa s greatest asset for this technology is its predictable weather and access to both Phoenix-Mesa Gateway Airport and Falcon Field s runways and resources. Mesa is ideally positioned to increase the region s foothold in these industries. EMPOWERED TO HELP YOU BUILD YOUR BUSINESS The City of Mesa is committed and empowered to provide you the service and real solutions to meet your construction schedule. The Office of Economic Development works closely with the client throughout all phases of the development process and looks forward to helping you build and grow your business in Mesa.

7 Mesa-Falcon Field Airport (FFZ) With more than 260,000 flight operations annually, Falcon Field Airport is the fourth most active general aviation airport in the U.S. and second in the Phoenix-Mesa metro area. 9 Approximately 700 aircraft are based at Falcon Field Airport. Two parallel runways of 5,100 and 3,800 feet accommodate a wide variety of corporate aircraft. Helicopter operations also find accommodations at Falcon Field Airport. Falcon Field Airport hosts an FAA Air Traffic Control Tower. More than 125 acres are available for aviation-related development with direct runway/taxiway access. Falcon Field Airport is ideal for aircraft component/systems manufacturing; aircraft/helicopter maintenance, repair and overhaul uses; aircraft restoration; aircraft sales; and corporate aviation departments. Six industrial parks with more than 1,000 acres of industrial-zoned land are located throughout the Falcon Business District, and provide a wide range of options suitable for nearly any operation.

8 ECONOMIC DEVELOPMENT Office of Economic Development 20 E Main, Suite 200 PO Box 1466 Mesa, Arizona (tel) (fax) econdev.info@mesaaz.gov A GLIMPSE INTO THE YEAR 2030 Passenger service is expected to be ten million passengers annually through Phoenix-Mesa Gateway Airport. Neighboring Arizona State University Polytechnic, Grand Canyon University, A.T. Still University, and Chandler Gilbert Community College enrollment will reach 42,000 students. More than 100,000 high-value jobs within two miles of Gateway Airport are anticipated. Infrastructure improvements at both airports new and renovated terminal buildings and a highway spur providing easy access to the entire Phoenix metro area. Flight operations will exceed 500,000 per year and fueling will top 45 million gallons. 1 us Census American Factfinder, Factfinder2.census. gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t; US Census 2012 estimates, Quickfacts.census.gov/qfd/ index.html; Arizona Department of Administration, population estimates, azstats.gov/ population-projections.aspx. 2 U.S. Census Bureau (2014). 3 u.s. Bureau of Economic Analysis, Release on Statistics of GDP by State, regional/gdp_state/gsp_newsrelease.htm. (June 11, 2014). 4 World Development Indicators Database (July 1, 2014). 5 (2014). 6 ibid (2014). 9 federal Aviation Administration (FAA) Air Traffic Activity Data System (ATADS) (2014).