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Board Summary Date: March 15, 2018
Main Location: Carson City
Business Type: New County: Washoe County Development Authority Representative: Stan Thomas - EDAWN
APPLICATION HIGHLIGHTS
PROFILE
SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND
REQUIREMENTS (TIER I) Statutory Application Sufficient % Over / Under Job Creation (12 months) 5 30 500%
REQUIREMENTS (TIER II) Statutory Application Sufficient % Over / Under Average Wage $21.95 $31.37 43%
INVESTMENTS (NOT REQUIRED) Description Application Equipment 20 yr (est) $124,649,800
Aviation Parts 20 yr (est) $0
Aircraft 20 yr (est) $0
INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. (Equip. & Parts) Abated to 2% for 20 yrs. $7,809,310
Pers. Prop. Tax Abmt. (Eqp & Craft) 50% for 20 yrs. $2,139,611
Total $9,948,921
JOB CREATION Contracted 12-Month Projection 5-Year Projection 10-Year Projection5 30 85 105
OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Bldg Imprv. (20 Yr)$0 $0 $0
ECONOMIC IMPACT ESTIMATES (20-Year Cumulative) Total Total Jobs Supported 230
Total Payroll Supported $202,905,118
Total Output Estimate $633,950,130
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 $2,224,063 $6,170,146 $8,394,209
Sales $0 $3,189,013 $3,189,013
Lodging $0 $187,379 $187,379
State Taxes
Property $108,335 $371,397 $479,732
Sales $2,492,996 $1,258,012 $3,751,008
Modified Business & Commerce Tax $1,526,974 $1,146,498 $2,673,472
Lodging $0 $62,460 $62,460
Total $6,352,368 $12,384,905 $18,737,273
EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 80%.
- Health care package cost per employee - $5,376 annually with options for dependents.
- Overtime, PTO/Sick/Vacation, Merit Increases, Retirement Plan / Profit Sharing / 401(k).
NOTESThe company has also considered Texas, Oklahoma, Idaho, Indiana, and California as potential locations.
1271 East 7th Street, Reno, NV 89512
AeroSpec NDT Services, Inc.
AeroSpec NDT Services, Inc. is an established service provider for the Non-Destructive Testing Industry (NDT). The company provides NDT laboratory
services for the commercial aviation, defense, pipeline, and automotive industries. The company's ambition is to create a globally competitive industry around
its Aerospace NDT Maintenance, Repair and Overhaul (MRO) capabilities, Aero Structures, Original Equipment Manufacturers (OEM), and training. AeroSpec
NDT Services, Inc. is dedicated to prevention of catastrophic failure, ensuring quality and safety of life and protection to the environment. The company will
service the Aerospace and Defense System industry by providing quality control, scheduled maintenance, troubleshooting inspections, testing for stress and
fatigue related failure, and ensuring compliance to military and aerospace specification. The company will service the Civil Aviation Industry by providing
annual and 'in service' inspections, and testing components and structures. AeroSpec will be providing NDT testing services for: Boeing, Bombardier, Spirit
Aerospacee, Cessna, GKN, GE Aviation, Pratt & Whitney, Goodrich, Triumph, Vought, Aerion, Coastal Composites, Kam man Aerospace, and ATK Alliant.
Source: AeroSpec NDT Services, Inc.
- The company's project would create a new competitive aerospace industry for Nevada.
- In conjunction with hiring locally, AeroSpec NDT Services, Inc. would also engage with local technical colleges and universities.
- AeroSpec NDT Services, Inc. is considering establishing a Corporate Headquarters in Washoe County, NV.
Company meets abatement
eligibility requirements
Company meets abatement
eligibility requirements
State incentives were of high importance in AeroSpec NDT Services, Inc. decision to consider Nevada as a location for its Corporate Headquarters. Other
factors were the state's positive business climate, ample opportunities to grow and employ a large workforce, ability to support greater business growth, and
quality of life offered by the state. Source: AeroSpec NDT Services, Inc.
Nondestructive Testing Laboratories and Services
Frank S. Narbut, President, Chief Operating Officer
www.edawn.org | 5190 Neil Road, Suite 110 | Reno, NV 89502 | (p) 775.829.3700 or 800-256-9761 | (f) 775-829-3710
February 3, 2018 Director Paul Anderson Governor’s Office of Economic Development 808 West Nye Lane Carson City, NV 89703 Re: Aerospec NDT Services Dear Paul; EDAWN hereby supports the application of Aerospec NDT Services for the Aviation Sales & Use Tax Abatement and Aviation Personal Property Tax Abatements (equipment, aircraft) incentives. Aerospec provides non-destructive testing laboratory services for the commercial aviation, defense, pipeline, and automotive industries. The company is planning to open its operation in the Reno area and includes the corporate headquarters. The company will be investing approximately $6.69 million in capital equipment by the end of Year 1 and over $124 million by Year 20. Aerospec also plans to hire 30 employees by the end of the first year at an average wage of $31.37 per hour. The company’s compensation package includes medical, dental, vision, and merit increases, overtime, PTO/sick/vacation, and retirement plan/profit sharing/401K. Employee health insurance is covered 80% by the company and commences upon employment. EDAWN supports this application as the company meets the average hourly wage elective requirement. Your consideration and support of the incentive application for Aerospec is a significant factor in their pending decision to expand in northern Nevada and speaks favorably to the State’s business-friendly environment. Sincerely,
Stan Thomas EDAWN, Executive Vice-President Business Development
"Quality Thru Prevention"™
January 31, 2018
Mr. Paul Anderson, Executive DirectorNevada Governor's Office of Economic Development555 E. Washington Ave., Suite 5400Las Vegas, NV 89101
Mr. Anderson,
Positive effects of Tax Incentives and A
As part of AeroSpec's commitment to Nevada and the opportunity that the aerospace sector presents, it is creatinga new competitive aerospace industry for Nevada.
AeroSpec's ambition is to create a globally competitive aerospace industry around ourTesting MRO capabilities, Aero Structures, OEM and Tdevelopment initiatives adopting highto further advance and diversify their skill
When we initially spoke to EDAWN our decision was clear, Nevada provided a positive business climate and ampleopportunities to grow, employing a larger workforce and providing greater business growth.
Workforce Development:
Nevada's ability to provide a workforce pool so AeroSpec can sustain and eventually grow operations. Offeringtraining programs in specific areas such as technology, can provide AeroSpec with a qualified workforce on anongoing basis. The research facilities at the universities aDevelopment for new products. AeroSpec will begin the process of hiring, job classifications and benefits uponrelocation to the Nevada area. We will recruit a local workforce
ed candidates. Additionainternship from local universities will only enrich our workforce of highly skilled technicians and engineers.
Major Aerospace OEM Markets for AeroSpec:
AeroSpec will be providing NDT testing servicesAviation, Pratt & Whitney, Goodrich, Triumph, Vought, Aerion, Coastal Composites, Kaman Aerospace, ATK AThe potential list of customers grows larger every year for our expertise in the testing application of Compositematerials. Capital Expenditures for startour state-of-the-art facility. These corporations will require ourof Non Destructive Testing and Examination.
Summary:
I would like to thank the state of Nevada for extending a warm welcome to my company.committed to our potential impact on the future economy of Nevada and the city of Reno and its surroundingcommunities.
Sincerely,
Frank S. NarbutFrank S. Narbut
President / CEO
AeroSpec NDT Services, Inc.
Reno, Nevada Future Corporate Headquarters
, Executive DirectorNevada Governor's Office of Economic Development555 E. Washington Ave., Suite 5400
Tax Incentives and Abatements:
As part of AeroSpec's commitment to Nevada and the opportunity that the aerospace sector presents, it is creatinga new competitive aerospace industry for Nevada.
ambition is to create a globally competitive aerospace industry around our AerospaceTesting MRO capabilities, Aero Structures, OEM and Training. This is underpinned with educationdevelopment initiatives adopting high-technology facility and providing a platform for the local Nevada workforceto further advance and diversify their skill-set within this industry.
When we initially spoke to EDAWN our decision was clear, Nevada provided a positive business climate and ampleopportunities to grow, employing a larger workforce and providing greater business growth.
e a workforce pool so AeroSpec can sustain and eventually grow operations. Offeringtraining programs in specific areas such as technology, can provide AeroSpec with a qualified workforce on anongoing basis. The research facilities at the universities are attractive to our business, that require Research &
AeroSpec will begin the process of hiring, job classifications and benefits uponrelocation to the Nevada area. We will recruit a local workforce of initially 30 jobs for our first year at an average
as well as experiewage of $31.37, as well as experienncced candidates. Additionalassistance provided by local tlocal universities will only enrich our workforce of highly skilled technicians and engineers.
Markets for AeroSpec:
AeroSpec will be providing NDT testing services for: Boeing, Bombardier, Spirit Aerospace, Cessna, GKN, GEAviation, Pratt & Whitney, Goodrich, Triumph, Vought, Aerion, Coastal Composites, Kaman Aerospace, ATK AThe potential list of customers grows larger every year for our expertise in the testing application of Composite
Capital Expenditures for start-up will be a $6,649,800.00 investments in our inspection processes andThese corporations will require our technical expertise and professionalism
ructive Testing and Examination.
Nevada for extending a warm welcome to my company.committed to our potential impact on the future economy of Nevada and the city of Reno and its surrounding
Frank S. Narbut
President / CEO
Future Corporate Headquarters
As part of AeroSpec's commitment to Nevada and the opportunity that the aerospace sector presents, it is creating
erospace Nondestructives is underpinned with education and research &
logy facility and providing a platform for the local Nevada workforce
When we initially spoke to EDAWN our decision was clear, Nevada provided a positive business climate and ampleopportunities to grow, employing a larger workforce and providing greater business growth.
e a workforce pool so AeroSpec can sustain and eventually grow operations. Offeringtraining programs in specific areas such as technology, can provide AeroSpec with a qualified workforce on an
re attractive to our business, that require Research &AeroSpec will begin the process of hiring, job classifications and benefits upon
our first year at an averagel assistance provided by local technical colleges and
local universities will only enrich our workforce of highly skilled technicians and engineers.
for: Boeing, Bombardier, Spirit Aerospace, Cessna, GKN, GEAviation, Pratt & Whitney, Goodrich, Triumph, Vought, Aerion, Coastal Composites, Kaman Aerospace, ATK Alliant.The potential list of customers grows larger every year for our expertise in the testing application of Composite
in our inspection processes andand professionalism in the field
Nevada for extending a warm welcome to my company. AeroSpec NDT iscommitted to our potential impact on the future economy of Nevada and the city of Reno and its surrounding
Aviation Tax Abatement Incentive Application
Aviation Sales & Use Tax Abatement: abated to 2% up to 20 years (aircraft excluded) Other:
Aviation Personal Property Tax Abatement (Equip): 50% for 20 years
Aviation Personal Property Tax Abatement (Aircraft): 50% for 20 years
Yes No
New business: Create 5 or more full-time employees within 1 year after approval
Existing business: Increase the number of full-time employees by 3% or 3, whichever is greater, within 1 year after approval
Headquarters
Aviation Maintenance
Air Tour Operators
Business with Private Aircraft
AeroSpec NDT Services, Inc.
January 31, 2018
Section 2 - Corporate Information
PROPOSED / ACTUAL NEVADA FACILITY ADDRESS
New capital investment of at least $250,000 in Nevada within 1 year after receiving certificate of eligibility
Maintain and possess in Nevada tangible personal property having a value of not less than $5,000,000 during the abatement period
Average hourly wage for employees of the business shall be at or above the average statewide hourly wage
The business develops, refines or owns a patent or other intellectual property, or has been issued a FAA certificate (14 CFR Part 21)
Section 5 - Program Restrictions
1271 East 7th
NAICS CODE / SIC
We have considered Texas, Oklahoma, Idaho, Indiana and California as potential sites for our corporate headquarters.
CITY / TOWN COUNTY ZIP
Reno
EXPECTED DATE OF NEW OPERATION (MONTH/YEAR) EXPECTED DATE OF EXPANDED OPERATION (MONTH / YEAR)
Type of Facility (Check all that apply):
Aircraft Manufacturing (Non-UAS)
Section 6 - Nevada Facility
Section 3 - Job Creation Requirement
Section 4 - Program Elective Requirement
Please check the applicable category the company intends to qualify under with this application:
Please check one of the boxes below; the company must meet at least one elective requirement:
NEVADA REGISTERED COMMON CARRIAGE OPERATIONS DO NOT QUALIFY FOR THIS TAX ABATEMENT
UNLESS THE BUSINESS IS REGULATED UNDER 14 C.F.R. PART 125 or 135
Unmanned Aerial System Testing
STATE / PROVINCE
Nevada 89512
Nondestructive testing laboratories or services.DESCRIPTION OF COMPANY'S NEVADA OPERATIONS
3/1/2018
Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development?
WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP?
AeroSpec NDT Services, Inc. has proposed to enter specific NDT markets supporting the Aerospace Sectors of Commercial Aviation including Regional and Business Jet
along with Industrial sectors of Pipelines and Automotive. We have been selected to establish the business model, coupled with adaptive capability into the Defense Sectors
such as F-35 platforms. AeroSpec is dedicated to prevention of catastrophic failure, ensuring quality and safety of life and protection to the environment.
Unmanned Aerial System Manufacturing
Non-Destructive Testing Laboratory
1271 East 7th Street
ZIP
COMPANY CONTACT TITLE
Washoe 89512
918-814-2562
Frank S. Narbut
President / CEO
N/A
CITY / TOWN
Reno
Section 1 - Type of Incentives
Company Name:
Date of Application:
N/A
Company is an / a: (check one)
Sparks Nevada 89431
NAICS 541380 / SIC 8734 Testing Laboratories
INDUSTRY TYPE
E-MAIL ADDRESS PREFERRED PHONE NUMBER
918-814-2562
If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary):
N/A
COMPANY NAME (Legal name under which business will be transacted in Nevada)
CORPORATE ADDRESS
MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above)
WEBSITETELEPHONE NUMBER
www.aerospecndt.comCOMPANY CONTACT NAME
3430 Gwynelle Court
CITY / TOWN STATE / PROVINCE ZIP
FEDERAL TAX ID #
20-2188620AeroSpec NDT Services, Inc.
New location in Nevada
Expansion of a Nevada company
Please check all that the company is applying for on this application:
1
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: 80%
Health Plan annual out-of-pocket maximum (individual): Employee: 20%
How many full-time equivalent (FTE*) employees will be created by the
Expansions
Real Estate and Construction
N/Aend of the first fourth quarter of expanded operations?:end of the first fourth quarter of new operations?:
Capital Equipment List
Aviation Parts List
Aircraft Procurement List
Evaluation of Health Plan
Average hourly wage of these new employees: $31.37
2 Tier System Salary / Hourly
Is health insurance for employees and an option for dependents offered?: Yes - TBD
* FTE means a person who is in a permanent position of employment, works and average of 30 hours per week, and is eligible for company-sponsored health benefits.
Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both )
30
How many full-time equivalent (FTE*) employees will be created by the
New Operations / Start Up
a PAGE FOLLOWS]
5,376.00$
1,344.00$
N/A
N/A
How many FTE employees prior to expansion?:
Average hourly wage of these new employees:
Merit Increase
N/A
N/A
N/A
OTHER COMPENSATION (Check all that apply):
BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):
N/AOther:
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
Section 7 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below )
2
555 E. Washington Ave., Ste 5400 • Las Vegas, Nevada 89101 • 702.486.2700 • (Fax) 702.486.2701 • www.diversifynevada.com Nevada Governor's Office of Economic Development
Title Date
Frank S. Narbut Frank S. NarbutName of person authorized for signature Signature
President / CEO January 31, 2018
I, the undersigned, hereby grant to the Governor's Office of Economic Development access to all pertinent and relevant records and documents of the aforementioned company. I understand this requirement is necessary to qualify and to monitor for compliance of all statutory and regulatory provisions pertaining to this application.
Being owner, member, partner, officer or employee with signatory authorization for the company, I do hereby declare that the facts herein stated are true and that all licensing and permitting requirements will be met prior to the commencement of operations. In addition, I and /or the company’s legal counsel have reviewed the terms of the GOED Tax Abatement and Incentives Agreement, the company recognizes this agreement is generally not subject to change, and any material revisions have been discussed with GOED in advance of board approval.
Section 10 - Certification
3
Company Name: County:
Availability of qualified workforce: 4 Transportation infrastructure: 5
Labor costs: 5 Transportation costs: 5
Real estate availability: 4 State and local tax structure: 5
Real estate costs: 4 State and local incentives: 5
Utility infrastructure: 4 Business permitting & regulatory structure: 4
Utility costs: 5 Access to higher education resources: 4
Site Selection Factors
We would also like to include the quality of life in Nevada as a factor for our relocation. Affordable housing
quality schools, shopping, medical services, cultural attractions all were considered. We rate this category at
a 5 in terms of importance for our employees.
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
AeroSpec NDT Services, Inc. Washoe
5
Company Name: County:
(a) (b) (c) (d) (e) (f)
Year Land CostConstruction
Cost
Building
Purchase
Annual Lease
AmountBuilding SqFt
Year-1 TBD TBD TBD TBD TBD
Year-2
Year-3
Year-4
Year-5
Year-6
Year-7
Year-8
Year-9
Year-10
Year-11
Year-12
Year-13
Year-14
Year-15
Year-16
Year-17
Year-18
Year-19
Year-20
Washoe
Section 1 - Real Estate & Constructions Projections
Directions: please provide a 20 year projection of the real estate costs for current year (year-1) and future land and building
procurement, as well as, current and future annual lease amounts and possible construction costs due to building improvements.
Complete [columns (a) and (f)]. These estimates are used for state economic impact and net tax revenue analysis that this
agency is required to report. The company will not be required to reach these estimated levels of real estate costs. Attach this
form to the Incentives Application.
AeroSpec NDT Services, Inc.
7(A) Real Estate & Construction
6
Equipment Schedule, Detailed
The Office has determined the detailed equipment schedule as described in this application constitutes confidential proprietary information of proprietary information of AeroSpec NDT Services, 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 proprietary information of AeroSpec NDT Services, 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 proprietary information of AeroSpec NDT Services, 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 AeroSpec NDT Services, Inc., and is not a public record.
Company Name: AeroSpec NDT Services, Inc. County:
Total Number of Full-Time Employees: 30
Average Hourly Wage per Employee $31.37
Average Annual Wage per Employee (implied) $65,249.60
Annual Cost of Health Insurance per Employee $5,376.00
Percentage of Cost Covered by:
Company (must be at least 50%) 80%
Employee 20%
Health Plan Annual Out-of-Pocket Maximum $1,344
Covered employee's premium not to exceed 9.5% of annual wage 2.1% MMQ
Annual Out-of-Pocket Maximum not to exceed $6,600 (2015) $1,344 MMQ
Minimum essential health benefits covered (Company offers PPO):
(A) Ambulatory patient services
(B) Emergency services
(C) Hospitalization
(D) Maternity and newborn care
(E) Mental health/substance use disorder/behavioral health treatment
(F) Prescription drugs
(G) Rehabilitative and habilitative services and devices
(H) Laboratory services
(I) Preventive and wellness services and chronic disease management
(J) Pediatric services, including oral and vision care
No Annual Limits on Essential Health Benefits
Frank S. NarbutName of person authorized for signature Signature
Title Date
Washoe
I, the undersigned, hereby declare to the Governor's Office of Economic Development that the facts herein stated are true,
and that I have attached sufficient plan information for GOED to Independently confirm the same.
7(F) Evaluation of Health Plans Offered by Company
31-Jan-18President / CEO
Frank S. Narbut
Generalized Criteria for Essential Health Benefits (EHB)
[following requirements outlined in the Affordable Care Act and US Code, including 42 USC Section 18022]
11
