Board Summary Date: November 19, 2015

Main Location: Carson City, NV

Business Type: New County: Storey County Development Authority Representative: Joel Grace - EDAWN

APPLICATION HIGHLIGHTS

- Franzen-Hill, Inc. is applying for Sales Tax, Modified Business Tax, and Personal Property Tax abatements.

- Meets statute for job creation, average wage and capital investment levels.

- Additional capital investment of $200,000 for building improvements.

PROFILE

SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND

REQUIREMENTS Statutory Application Sufficient % Over / Under

Job Creation 10 15 Yes 50%

Average Wage $20.07 $26.27 Yes 31%

Equipment CapEx (SU & MBT) $250,000 $3,253,500 Yes 1201%

Equipment CapEx (PP) $250,000 $3,253,500 Yes 1201%

INCENTIVES Requested Terms Estimated $ Amount

Sales Tax Abmt. Abated to 2% $182,196

Modified Business Tax Abmt. 50% for 4 years $23,376

Personal Property Tax Abmt. 50% for 10 years $115,113

Total $320,685

JOB CREATION Contracted 24-Month Projection 5-Year Projection

15 15 50

OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements

$250,000 $300,000 $200,000

ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction

Total Jobs Supported 74 10

Total Payroll Supported $29,080,395 $623,775

Total Output Estimate $79,378,932 $1,688,123

Estimate includes jobs, payroll & output by the company assisted as well as the secondary impacts to other local businesses.

NEW TAX REVENUE ESTIMATES (10-Year Cumulative) Direct Indirect Total

Local Taxes

Property $183,226 $672,048 $855,274

Sales $7,280 $145,102 $152,382

Lodging $0 $13,881 $13,881

State Taxes

Property $9,466 $120,791 $130,257

Sales $67,670 $180,298 $247,968

Modified Business $225,255 $111,399 $336,654

Lodging $0 $521 $521

Total $492,897 $1,244,040 $1,736,937

COST-BENEFIT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar

$247.53 $5.42

EMPLOYEE BENEFITS

- Percentage of health insurance covered by company: 50%.

- Health care package cost per employee - $3,457 annually with options for dependents.

- Overtime, PTO/Sick/Vacation, Bonus, Retirement Plan, Merit Increases, Tuition Assistance.

NOTES

- Percentage of market outside of Nevada: 90%.

- The company average hourly wage is significantly higher than the Storey County hourly average wage of $20.07.

- The company was also looking at California, Oregon, Washington, Idaho and Utah to relocate their business.

Franzen-Hill’s decision to relocate and expand the operation to Reno was due to several factors, including the business tax structure, cost of living and

logistic advantages offered by the region. In addition Franzen-Hill, Inc is aware of the benefits of the State Incentive Program, and this also was a

critical factor in deciding to relocate and expand the entire portfolio of our operations to Reno. Source: Franzen-Hill, Inc.

Specialty Construction

Steve Moreland, General Manager, Reno Division

1100 N "J" Street, Tulare, CA 93274-1939

Franzen-Hill, Inc.

Franzen-Hill, Inc is a Construction and Maintenance Company. The company has facilities in Tulare CA and has recently purchased a company similar

to theirs in Reno, Nevada. The company plans to hire and train employees from the local Reno area, and begin: construction, maintenance, servicing

and compliance testing for the petroleum and fuel industry. The target date for the physical move is November 1, 2015, with operations to commence

in full starting November 1, 2015. Source: Franzen-Hill, Inc.

October 1, 2015

Governor’s Office of Economic Development

808 West Nye Lane

Carson City, NV 89703

Dear Commission Members:

Franzen-Hill, Inc is a Construction and Maintenance Company. The plan is to relocate and expand from

the current location in California, to Reno Nevada. We plan to hire and train employees from the local

Reno area, and begin; construction, maintenance, servicing and compliance testing for the Petroleum

and fuel industry. The target date for the physical move is November 1, 2015, with operations to

commence in full starting November 1, 2015.

Franzen-Hill, Inc. Has facilities in Tulare CA and we recently purchased a company similar to ours in

Reno NV. The decision to relocate and expand the operation to Reno was due to several factors,

including the business tax structure, cost of living and logistic advantages offered by the region. In

addition Franzen-Hill, Inc is aware of the benefits of the State Incentive Program, and this also was a

critical factor in deciding to relocate and expand the entire portfolio of our operations to Reno.

The relocation and expansion plan to Reno involves: finding and or building a suitable facility; hiring and

training office staff, outfitting the office with the proper tools to function, acquiring vehicles and

equipment common and necessary for our trade, we will have to hire, train and put to work new

tradesman and operations staff to include management and skilled workers at all levels. Our plan is to

hire more than 10 employees and grow. Our current California office has more than 45 staff. This in

short order could be achieved in Reno. Our current average hourly rate for what would become the

Reno Division is $28.00 per hour. The projection for an hourly employee in Reno would be near the

current standard of $28.00 per hour

We are excited about the market opportunities presented by this relocation and expansion and the

advantages that locating this facility in Reno will offer our company. In conjunction with Nevada’s

business-friendly environment, we see this as a first step in what will be increased growth for Franzen-

Hill, Inc.

Sincerely,

Steven Moreland

Steve Moreland General Manager, Reno Division

Company is an / a: (check one)

Incentive Application New location in Nevada

Expansion of a Nevada company

Startup business in Nevada

Other

1 The EDRR and TEN programs required pre-approval authorization prior to application, are subject to program funding limitations, and may not be available for all applicants.

2 The transferable tax credit program requires a minimum investment of $3.5 billion over a ten-year period.

Yes No

Headquarters Service Provider

Technology Distribution / Warehouse / Logistic

Back Office Operations Manufacturing

Research & Development / Intellectual Property Other:

Transferable Tax Credits2

Tulare California

FEDERAL TAX ID #

94-2153830Fanzen-Hill, Inc.

93274-1939

CITY / TOWN STATE / PROVINCE ZIP

Specialty Construction

DESCRIPTION OF COMPANY'S NEVADA OPERATIONS

Recycling Real Property Tax Abatement

E-MAIL ADDRESS PREFERRED PHONE NUMBER

559-972-0020

If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary):

COMPANY NAME (Legal name under which business will be transacted in Nevada)

1100 N "J" Street

MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above)

WEBSITETELEPHONE NUMBER

www.franzehill.com

COMPANY CONTACT NAME

Sales & Use Tax Abatement

Modified Business Tax Abatement

Personal Property Tax Abatement

559-972-0020

Steve Moreland

smoreland@franzenhill.com

General Manager, Reno Division

November, 201594-215383090%

NAICS CODE / SIC

Train Employees Now (TEN)1

Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development?

Sales & Use Tax Deferral

We will be providing, New Construction, Construction, Maintenance, and Service as it relates to, Petroleum, Natural Gas, Bio-Fuels, Marina Fueling Facilities,

Mine Operations and their Fueling Facilities, Transfer Facilities, Bulk Racks, Storage FAcilities, Tank Farms, the Farming Comunity, Retail Facilities,

Government Agencies and their Fuel Facilities Needs, and Every other person, entity and government agency with a need we can help with as it relates to

fueling facilities. our orerating area will be all states west of the Rockies and Texas, Oklahoma, North Dakota and South Dakota, Wyoming and Colorado.

Please check all that the company is applying for on this application:

NAICS-238990

INDUSTRY TYPE

WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP?

California, Oregon, Washington, Idaho, Utah.

CITY / TOWN COUNTY ZIP

Fernley Storey County

Economic Development Rate Rider (EDRR)1

Section 1 - Type of Incentives

COMPANY CONTACT TITLE

Company Name:

Date of Application:

Franzen-Hill, Inc.

October 6, 2015

Section 2 - Corporate Information

PROPOSED / ACTUAL NEVADA FACILITY ADDRESS

Tahoe Reno Industrial Complex

PERCENT OF COMPANY'S MARKET OUTSIDE OF NEVADA EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR)

Type of Facility:

Section 3 - Nevada Facility

1

When to break ground, if building (month, year)?

Estimated completion date, if building (month, year):

How much space (sq. ft.)?

* Please complete Section 5 - Capital Investment for New Operations / Startup. * Please complete Section 5 - Capital Investment for Expansions below.

5,000

EXPANSIONS

Building Purchase (if buying):

Current assessed value of real property?

Building Purchase (if buying):

BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary):

When to make improvements (month, year)? Feb-2015

Part 3. ARE YOU CURRENTLY / PLANNING ON

BUILDING A BUILD-TO-SUIT FACILITY IN NV?

If Yes * , continue below:

Due to expansion, will you be making building improvements?

If Yes * , continue below:

Yes

If No, skip to Part 3. If Yes, continue below:

If No, skip to Part 3. If Yes * , continue below:

When to make improvements (month, year)?

Part 2. ARE YOU CURRENTLY OPERATING AT AN

If No, skip to Part 3. If Yes * , continue below:

Do you plan on making building improvements?

How much space (sq. ft.)?

If No, skip to Part 3. If Yes * , continue below:

NOV, 2015

NOV, 2016

2,000

LEASING SPACE IN NV? No

Annual lease cost of space:

Purchase date, if buying (month, year): Dec-2015

$4,250,000

Purchase date, if buying (month, year):

When to break ground, if building (month, year)?

Current assessed value of personal property in NV:

Planning to also buy and build at Tahoe Reno Industrial Center

HOW MUCH CAPITAL INVESTMENT IS PLANNED? (Breakout below):

Yes

Estimated completion date, if building (month, year):

Y

Land: $250,000

How much space (sq. ft.)? 10,000

MAY, 2016

Part 3. DO YOU PLAN ON BUILDING OR BUYING A

When to make improvements (month, year)?

What year(s)?

EXPANSIONS - PLANS OVER THE NEXT 10 YEARS

Part 1. ARE YOU CURRENTLY LEASING SPACE IN NV?

If No, skip to Part 2. If Yes, continue below:

If No, skip to Part 2. If Yes, continue below: 2015

YPart 1. ARE YOU CURRENTLY / PLANNING ON

OWNER-OCCUPIED BUILDING IN NV?

Annual lease cost at current space:

If No, skip to Part 3. If Yes, continue below:

How much space (sq. ft.)?What year(s)?

N

$15,000.00

If No, skip to Part 2. If Yes * , continue below: Expanding at the current facility or a new facility?

BUYING AN OWNER-OCCUPIED FACILITY IN NV?

Part 2. ARE YOU CURRENTLY / PLANNING ON

If No, skip to Part 3. If Yes * , continue below:

What year(s)?

NEW OPERATIONS / STARTUP - PLANS OVER THE NEXT 10 YEARS

How much space (sq. ft.)?

Due to expansion, will you lease additional space?

Do you plan on making building tenant improvements?

How much expanded space (sq. ft.)?

Annual lease cost of expanded space:

Land:

Building Costs (if building / making improvements):

$3,500,000Equipment Cost:

Total:

Equipment Cost:

Total:

Building Costs (if building / making improvements):

$300,000

Is the equipment purchase for replacement

of existing equipment?

How much space (sq. ft.)?

Do you plan on making building tenant improvements?

When to make improvements (month, year)?

Section 4 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both .)

NEW FACILITY IN NV?

Section 5 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both .)

(Must attach the most recent assessment from the County Assessor's Office.)

NEW OPERATIONS / STARTUP

HOW MUCH CAPITAL INVESTMENT IS PLANNED? (Breakout below):

$200,000

2

No

Medical Vision Dental

Qualified after (check one):

Upon employment Three months after hire date Six months after hire date Other:

Yes No

Yes No

Yes No

Company: 50% Employee: 50%

HEALTH PLAN ANNUAL OUT-OF-POCKET MAXIMUM (individual):

Other:

Package includes (check all that apply):

Section 7 - Employee Health Insurance Benefit Program

Average hourly wage of these existing employees:

Total number of employees after expansion:

EXPANSIONS

Merit increases

COLA adjustments

Tuition assistance

How many full-time equivalent (FTE*) employees will be created by the

OTHER COMPENSATION (Check all that apply):

BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):

Bonus

Retirement Plan / Profit Sharing / 401(k)

Overtime

PTO / Sick / Vacation

How many FTE employees prior to expansion?:

Average hourly wage of these new employees:

end of the first fourth quarter of new operations?: end of the first fourth quarter of expanded operations?:

How many full-time equivalent (FTE*) employees will be created by the

Is the proposed training plan developed by NVIE complete?**

Will these new hires be permanent, full-time employees of the company?

Have you received preapproval from GOED?

$3,457

Upon Employment

* Employee must be paid at least 80% of statewide average wage at conclusion of the program. ** Attach the NVIE training program to this application.

$1,729

Note: All workforce training monies approved at a scheduled GOED Board meeting will be granted to the appropriate educational institution.

Other:

Average hourly wage of these new employees: $28.00

Is health insurance for employees and an option for dependents offered?: Yes (copy of benefit plan must be attached)

* FTE represents a permanent employee who works an average of 30 hours per week or more, is eligible for health care coverage, and whose position is a "primary job" as

set forth in NAC 360.474.

Number of qualified employees to participate in training program*:

Section 8 - Train Employees Now (TEN) (if applicable)

COST OF HEALTH INSURANCE FOR COMPANY (annual amount per employee): PERCENTAGE OF HEALTH INSURANCE COVERAGE BY:

Section 6 - Employment (Fill in either New Operations/Startup or Expansion, not both .)

15

NEW OPERATIONS / STARTUP

3

Nevada Governor's Office of Economic Development

555 E. Washington Ave., Ste 5400 • Las Vegas, Nevada 89101 • 702.486.2700 • (Fax) 702.486.2701 • www.diversifynevada.com

Title Date

Steve Moreland Steve Moreland

Name of person authorized for signature Signature

General Manager, Reno Division October 6, 2015

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:

Section 9 - Certification

4

Capital Equipment List, Detailed

The Office has determined the detailed capital equipment list as

described in this application constitutes confidential proprietary

information of Franzen-Hill, Inc., and is not a public record.

Employment List, Detailed

The Office has determined the detailed employment list as

described in this application constitutes confidential proprietary

information of Franzen-Hill, Inc., and is not a public record.

Site Selection Factors

Company Name: County:

Availability of qualified workforce: 4 Transportation infrastructure: 4

Labor costs: 2 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: 5

Utility costs: 3 Access to higher education resources: 3

Franzen-Hill, Inc. Storey County

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.

OTHER FACTORS & RATINGS:

Evaluation of Health Plans Offered by Companies

Company Name: Franzen-Hill, Inc. County:

Total Number of Full-Time Employees: 15

Average Hourly Wage per Employee $28.00

Average Annual Wage per Employee (implied) $58,240.00

Annual Cost of Health Insurance per Employee $3,457.00

Percentage of Cost Covered by:

Company 50%

Employee 50%

Health Plan Annual Out-of-Pocket Maximum $0

Covered employee's premium not to exceed 9.5% of annual wage 5.9% MMQ

Annual Out-of-Pocket Maximum not to exceed $6,600 (2015) $0 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

Generalized Criteria for Essential Health Benefits (EHB)

[following requirements outlined in the Affordable Care Act and US Code, including 42 USC Section 18022]

Storey County