Board Summary Date: September 15, 2016

Main Location: Carson City, Nevada

Business Type: Expansion County: Clark County Development Authority Representative: Morgan Bunker - LVGEA

APPLICATION HIGHLIGHTS

- Grand Canyon Airlines Inc. will make a capital investment, in equipment purchases, of $600,000 over a 20 year period.

PROFILE

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

REQUIREMENTS (TIER I) Statutory Application Sufficient % Over / Under

Job Creation (12 months) 3 4 Yes 33%

REQUIREMENTS (TIER II) Statutory Application Sufficient % Over / Under

Average Wage $20.89 $21.00 Yes 1%

INVESTMENTS (NOT REQUIRED) Description Application

Equipment 20 yr (est) $600,000

Aviation Parts 20 yr (est) $42,118,441

Aircraft 20 yr (est) $10,000,000

INCENTIVES Requested Terms Estimated $ Amount

Sales Tax Abmt. (Equip. & Parts) Abated to 2% for 20 yrs. $2,732,095

Pers. Prop. Tax Abmt. (Eqp & Craft) 50% for 20 yrs. $106,792

Total $2,838,887

JOB CREATION Contracted 12-Month Projection 5-Year Projection 10-Year Projection

3 6 8 14

OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Bldg Imprv. (20 Yr)

$0 $0 $0

ECONOMIC IMPACT ESTIMATES (20-Year Cumulative) Total

Total Jobs Supported 26

Total Payroll Supported $17,559,378

Total Output Estimate $44,930,926

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 $1,451,380 $531,966 $1,983,346

Sales $0 $326,130 $326,130

Lodging $0 $16,002 $16,002

State Taxes

Property $85,490 $31,902 $117,392

Sales $895,768 $108,869 $1,004,637

Modified Business $106,237 $70,578 $176,815

Commerce NA NA NA

Lodging $0 $3,997 $3,997

Total $2,538,875 $1,089,444 $3,628,319

IMPACT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar

$15.83 $1.28

EMPLOYEE BENEFITS

- Percentage of health insurance covered by company: 84%.

- Health care package cost per employee - $5,147 annually with options for dependents.

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

NOTES

- Papillon Airways, Inc. and Grand Canyon Airlines, Inc. are sister companies with Nevada Operations co-located at Boulder City Municipal Airport.

Grand Canyon Airlines, Inc. maintains its principal aircraft maintenance base in Arizona even though it began operations in Nevada over 10 years ago.

The company states that the Nevada sales and use tax, imposed on parts and equipment used to maintain aircraft, has impeded its growth in the

southern Nevada Grand Canyon air tour market. With grant of this abatement, the company plans to increasingly bring its aircraft maintenance to Boulder

City in conjunction with relocating employees to the state.

Scenic and Sightseeing Transportation

Alan Stephen - Vice President Corporate Affairs

1265 Airport Road, Boulder City, NV 89005

Grand Canyon Airlines, Inc.

Grand Canyon Airlines, Inc. operates sightseeing tours and scheduled passenger service over and around the Grand Canyon. The company has been in

continuous operation since 1927 and is the World's largest fixed-wing air tour company enplaning over 190,000 passengers annually from its bases of

operations. Grand Canyon Airlines operates two models of aircraft both of which are designated as Quiet Technology by the Federal Aviation

Administration. Source: Grand Canyon Airlines, Inc.

- The company currently has 1 aircraft and plans to purchase 2 new aircraft over a 5 year period.

- The company will purchase 1 new aircraft within the first 12 months and 5 over a 20 year period.

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: 84%

Health Plan annual out-of-pocket maximum (individual): Employee: 16%

Section 7 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below )

[SIGNATURE PAGE FOLLOWS]

$5,147.00

$5,500.00

$19.16

131

How many FTE employees prior to expansion?:

Average hourly wage of these new employees:

Merit Increase

$21.50

127

OTHER COMPENSATION (Check all that apply):

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

Other:

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

Aviation Parts List

Aircraft Procurement List

Evaluation of Health Plan

Average hourly wage of these new employees:

60 days after the 1st of the following month

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

* 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 )

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

New Operations / Start Up Expansions

Real Estate and Construction

4end of the first fourth quarter of expanded operations?:end of the first fourth quarter of new operations?:

Capital Equipment List

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

2

Company Name: County:

Availability of qualified workforce: 4 Transportation infrastructure: 3

Labor costs: 5 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: 4

Utility costs: 3 Access to higher education resources: 3

Site Selection Factors

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

Grand Canyon Airlines, Inc. Clark

5

 

 

 

 

 

 

Real Estate and Constructions Schedule, Detailed

The Office has determined the detailed Real Estate and Constructions schedule as described in this application constitutes confidential proprietary information of Grand Canyon Airlines, Inc., and is not a public record.

 

 

 

 

 

 

Equipment Schedule, Detailed

The Office has determined the detailed equipment schedule as described in this application constitutes confidential proprietary information of Grand Canyon Airlines, 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 Grand Canyon Airlines, 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 Grand Canyon Airlines, 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 Grand Canyon Airlines, Inc., and is not a public record.