CJ Pony Parts, Inc. - Nevada Governor`s Office of Economic

Board Summary
CJ Pony Parts, Inc.
Date: November 19, 2015
7461 Allentown Blvd., Harrisburg, PA 17112
Mike Large, Sr. Vice President
Automotive Parts Distribution
Business Type: New
County: Clark County
Main Location: Carson City, NV
Development Authority Representative: Morgan Bunker - LVGEA
APPLICATION HIGHLIGHTS
- CJ Pony Parts, Inc. is applying for Sales Tax, Modified Business Tax, and Personal Property Tax abatements.
- Meets statute for average wage and capital investment levels.
- Additional capital investment of $6.6 million for building improvements.
PROFILE
CJ Pony Parts, Inc. is proud to celebrate their 30th year in business, making them one of the oldest Mustang parts and accessories retailers worldwide.
Founded in 1985, CJ Pony Parts is all about the love of the automotive restoration and performance hobby. The company has recently purchased land
within the city of Las Vegas, Nevada and is planning the construction of a new distribution center. This facility will allow the company to deliver
shipments to 65% of their current US customers within two days. Source: CJ Pony Parts, Inc.
SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND
The Tax Abatement programs helped make the state of Nevada the clear choice when deciding where to plan CJ Pony Parts, Inc.’s company
expansion. This facility would be their largest distribution center; and expect it to handle one third of their current order fulfillment business within the
first year of operation, as well as provide an auxiliary location for the hiring, training and employment of new warehouse, creative and administrative
employees. Source: CJ Pony Parts, Inc.
REQUIREMENTS
Statutory
Application
Sufficient
% Over / Under
50
$20.89
$1,000,000
$1,000,000
25
$21.42
$1,596,250
$1,596,250
No
Yes
Yes
Yes
-50%
3%
60%
60%
Requested Terms
Estimated $ Amount
Abated to 2%
50% for 4 years
50% for 10 years
$97,371
$39,232
$22,238
$158,841
Contracted
24-Month Projection
5-Year Projection
25
25
75
Land
Building Purchase
BTS / Building Improvements
$952,000
$0
$6,600,000
Total
Construction
54
$9,284,676
$3,430,763
Job Creation
Average Wage
Equipment CapEx (SU & MBT)
Equipment CapEx (PP)
INCENTIVES
Sales Tax Abmt.
Modified Business Tax Abmt.
Personal Property Tax Abmt.
Total
JOB CREATION
OTHER CAPITAL INVESTMENT
ECONOMIC IMPACT ESTIMATES (10-Year Cumulative)
Total Jobs Supported
Total Payroll Supported
Total Output Estimate
99
$35,433,920
$84,282,445
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)
Local Taxes
Property
Sales
Lodging
State Taxes
Property
Sales
Modified Business
Lodging
Total
COST-BENEFIT ASSESSMENT
Direct
Indirect
Total
$717,210
$261,690
$0
$1,087,884
$658,113
$24,260
$1,805,094
$919,803
$24,260
$42,244
$117,725
$290,093
$0
$1,428,962
$65,241
$219,690
$115,811
$6,065
$2,177,064
$107,485
$337,415
$405,904
$6,065
$3,606,026
Economic Impact per Abated Dollar
$531
EMPLOYEE BENEFITS
- Percentage of health insurance covered by company: 83%.
- Health care package cost per employee - $7,300 annually with options for dependents.
- Overtime, PTO/Sick/Vacation, Bonus, Retirement Plan, Merit Increases.
NOTES
- Percentage of market outside of Nevada: 96%.
- The company average hourly wage exceeds the statewide hourly average of $20.89.
- The company was also looking at Utah and Arizona to relocate their business.
New Total Tax per Abated Dollar
$22.70
Company is an / a: (check one)
New location in Nevada
Incentive Application
Company Name:
CJ Pony Parts Inc
Date of Application:
September 24, 2015
Expansion of a Nevada company
Startup business in Nevada
Section 1 - Type of Incentives
Please check all that the company is applying for on this application:
Sales & Use Tax Abatement
Sales & Use Tax Deferral
Modified Business Tax Abatement
Recycling Real Property Tax Abatement
Personal Property Tax Abatement
Economic Development Rate Rider
Train Employees Now (TEN)
Section 2 - Corporate Information
COMPANY NAME (Legal name under which business will be transacted in Nevada)
FEDERAL TAX ID #
CJ Pony Parts Inc
251735065
CORPORATE ADDRESS
CITY / TOWN
STATE / PROVINCE
7461 Allentown Blvd
Harrisburg
PA
17112
MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above)
CITY / TOWN
STATE / PROVINCE
ZIP
TELEPHONE NUMBER
WEBSITE
717-724-8774
www.cjponyparts.com
COMPANY CONTACT NAME
COMPANY CONTACT TITLE
Mike Large
SVP
E-MAIL ADDRESS
PREFERRED PHONE NUMBER
[email protected]
717-265-3403
Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development?
ZIP
Yes
No
If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary):
Section 3 - Nevada Facility
Type of Facility:
Headquarters
Technology
Back Office Operations
Research & Development / Intellectual Property
Service Provider
Distribution / Warehouse / Logistic
Manufacturing
Other:
PERCENT OF COMPANY'S MARKET OUTSIDE OF NEVADA
EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR)
96%
Dec-2016
NAICS CODE / SIC
INDUSTRY TYPE
441310
Automotive Parts Distribution
DESCRIPTION OF COMPANY'S NEVADA OPERATIONS
Over the next 5 years our location in NV will become our primary worldwide distribution location for all of our products. Not only will it be a distribution location but will home to
employees from every department we have.
PROPOSED / ACTUAL NEVADA FACILITY ADDRESS
CITY / TOWN
COUNTY
ZIP
Lamb/Alto APN 140-17-301-002
Las Vegas
Clark County
89115
WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP?
Salt Lake City, Phoenix
Section 4 - Site Selection Factors (Optional)
Please rate the following in order of importance to the company's business (1 = very low; 5 = very high):
Availability of qualified workforce:
Labor costs:
Real estate availability:
Real estate costs:
4
3
3
3
Utility infrastructure:
Utility costs:
Transportation infrastructure:
Transportation costs:
OTHER FACTORS & RATINGS
1
3
3
5
5
State and local tax structure:
State and local incentives:
Business permitting & regulatory structure:
Access to higher education resources:
5
5
3
3
Section 5 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both .)
NEW OPERATIONS / STARTUP - PLANS OVER THE NEXT 10 YEARS
EXPANSIONS - PLANS OVER THE NEXT 10 YEARS
Part 1. ARE YOU CURRENTLY / PLANNING ON
LEASING SPACE IN NV?
Part 1. ARE YOU CURRENTLY LEASING SPACE IN NV?
No
If No, skip to Part 2. If Yes, continue below:
What year(s)?
If No, skip to Part 2. If Yes, continue below:
What year(s)?
How much space (sq. ft.)?
How much space (sq. ft.)?
Annual lease cost at current space:
Annual lease cost of space:
Due to expansion, will you lease additional space?
Do you plan on making building tenant improvements?
If No, skip to Part 3. If Yes, continue below:
If No, skip to Part 2. If Yes * , continue below:
Expanding at the current facility or a new facility?
When to make improvements (month, year)?
What year(s)?
How much expanded space (sq. ft.)?
Annual lease cost of expanded space:
Part 2. ARE YOU CURRENTLY / PLANNING ON BUYING
OR BUILDING AN OWNER-OCCUPIED FACILITY IN NV?
Yes
Do you plan on making building tenant improvements?
If Yes * :
If No, skip to Part 3. If Yes * , continue below:
Purchase date, if buying (month, year):
When to make improvements (month, year)?
When to break ground, if building (month, year)?
Apr-2016
Estimated completion date, if building (month, year):
Dec-2016
How much space (sq. ft.)?
Part 2. ARE YOU CURRENTLY OPERATING AT AN
85,000
OWNER-OCCUPIED BUILDING IN NV?
If No, skip to Part 3. If Yes, continue below:
* Please complete Section 6 - Capital Investment for New Operations / Startup.
How much space (sq. ft.)?
Current assessed value of real property?
Due to expansion, will you be making building improvements?
If No, skip to Part 3. If Yes * , continue below:
When to make improvements (month, year)?
Part 3. DO YOU PLAN ON BUILDING OR BUYING A
NEW FACILITY IN NV?
If Yes * , continue below:
Purchase date, if buying (month, year):
When to break ground, if building (month, year)?
Estimated completion date, if building (month, year):
How much space (sq. ft.)?
* Please complete Section 6 - Capital Investment for Expansions below.
BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary):
Section 6 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both .)
NEW OPERATIONS / STARTUP
EXPANSIONS
HOW MUCH CAPITAL INVESTMENT IS PLANNED? (Breakout below):
HOW MUCH CAPITAL INVESTMENT IS PLANNED? (Breakout below):
Building Purchase (if buying):
Building Hard Costs (if building / making improvements):
Land:
Building Purchase (if buying):
$6,600,000
Building Hard Costs (if building / making improvements):
$952,000
Land:
Equipment Cost:
$1,750,000
Equipment Cost:
Total:
$9,302,000
Total:
Is the equipment purchase for replacement
of existing equipment?
Current assessed value of personal property in NV:
(Must attach the most recent assessment from the County Assessor's Office.)
2
Section 7 - Employment (Fill in either New Operations/Startup or Expansion, not both .)
NEW OPERATIONS / STARTUP
EXPANSIONS
How many full-time equivalent (FTE*) employees will be created by the
25
end of the first fourth quarter of new operations?:
Average hourly wage of these new employees:
$21.42
How many full-time equivalent (FTE*) employees will be created by the
end of the first fourth quarter of expanded operations?:
Average hourly wage of these new employees:
How many FTE employees prior to expansion?:
Average hourly wage of these existing employees:
Total number of employees after expansion:
* 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.
OTHER COMPENSATION (Check all that apply):
Overtime
PTO / Sick / Vacation
Bonus
Retirement Plan / Profit Sharing / 401(k)
Merit increases
COLA adjustments
Tuition assistance
Other:
BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):
Section 8 - Employee Health Insurance Benefit Program
Is health insurance for employees and an option for dependents offered?:
Yes (copy of benefit plan must be attached)
No
Package includes (check all that apply):
Medical
Vision
Other:
Dental
Qualified after (check one):
Upon employment
Three months after hire date
Six months after hire date
Other:
COST OF HEALTH INSURANCE FOR COMPANY (annual amount per employee):
PERCENTAGE OF HEALTH INSURANCE COVERAGE:
Single $7300.52, Family $19,281.56
By Company: 83%
By Employee: 17%
Section 9 - Train Employees Now (TEN) (if applicable)
Yes
No
Will these new hires be permanent, full-time employees of the company?
Yes
No
Is the proposed training plan developed by NVIE complete?**
Yes
No
Have you received preapproval from GOED?
Number of qualified employees to participate in training program*:
* Employee must be paid at least 80% of statewide average wage at conclusion of the program. **Please attach the NVIE training program as part of this application.
All workforce training monies approved at a scheduled GOED Board meeting will be granted to the appropriate educational institution.
3
Employment Schedule
Company Name: CJ Pony Parts Inc
Clark
County:
Directions: Please complete columns (a) through (d) in Section 1 with information on all full time employees that will be hired and employed by the
company by the end of the first fourth quarter of new / expanded operations. For example, if the effective date of new / expanded operations is April
1, 2015, the date would fall in Q2, 2015. The end of the first fourth quarter would be the last day of Q2, 2016 (i.e., June 30, 2016). Attach this form
to the Incentives Application.
Section 1 - Full-Time Equivalent (FTE) Employees
Full-time equivalent represents an employee who works an average of 30 or more hours per week, is eligible for health care coverage, and whose
position is a "primary job" (defined in NAC 360.474). Audits of job creation and wage will be based on the information provided in this section.
(a)
(b)
Number of
Positions
(c)
Average
Hourly Wage
(d)
Average
Weekly Hours
(e)
Annual Wage
per Position
(f)
Total Annual
Wages
Warehouse Inbound
Warehouse Outbound
Warehouse Operations Manager
Warehouse Logistics Manager
Distribution Manager
Administrative Assistant
General Manager
Customer Care Associate
Web Programmer
5
10
1
1
1
1
1
3
2
$16.50
$16.00
$22.50
$25.00
$42.50
$15.50
$48.08
$16.50
$40.00
40
40
45
45
45
40
50
40
40
$34,320.00
$33,280.00
$52,650.00
$58,500.00
$99,450.00
$32,240.00
$125,008.00
$34,320.00
$83,200.00
$171,600
$332,800
$52,650
$58,500
$99,450
$32,240
$125,008
$102,960
$166,400
TOTAL
25
$21.42
$1,141,608
New Hire Position Title/Description
Equipment List
Company Name: CJ Pony Parts Inc
Clark
County:
Directions: Please provide a list of the equipment [columns (a) through (c)] which the company intends to purchase over the two-year allowable
period. For example, if the effective date of new / expanded operations begins April 1, 2015, the two-year period would be until March 31, 2017.
Note: If approved, the company will monitor and update this list as needed to ensure the incentives granted are for eligible property actually
purchased. For guidelines on classifying equipment, visit: tax.nv.gov/LocalGovt/PolicyPub/ArchiveFiles/Personal_Property_Manuals. Attach this
form to the Incentives Application.
(a)
Equipment Name/Description
Package Coneyor System
Sit down Forklift
Stand up forklift reach truck
Man Up forklift
Pallet Racking
Storage Mezzanine
RF Handleheld Devices
Phone Server
Database Server
Automatic Stretch wrap maching
Warehouse Carts
Air Compressor
Big Ass Fans & Swamp Coolers
2016 Ford F250
Office Furniture-includes office/conference rooms/lunch room
PC's/Printers
Pallet Jacks
Shipping work stations
Photo studio equipment/ carmera/ table/ lighting
Tire change machine and balnacer
TOTAL EQUIPMENT COST
( b)
# of Units
(c)
Price per Unit
(d)
Total Cost
1
1
1
5
1
1
15
1
1
1
40
1
19
2
1
20
3
12
1
1
$300,000.00
$40,000.00
$40,000.00
$30,000.00
$300,000.00
$250,000.00
$2,000.00
$15,000.00
$15,000.00
$9,000.00
$150.00
$10,000.00
$12,000.00
$47,000.00
$65,000.00
$500.00
$750.00
$1,000.00
$5,000.00
$15,000.00
$300,000.00
$40,000.00
$40,000.00
$150,000.00
$300,000.00
$250,000.00
$30,000.00
$15,000.00
$15,000.00
$9,000.00
$6,000.00
$10,000.00
$228,000.00
$94,000.00
$65,000.00
$10,000.00
$2,250.00
$12,000.00
$5,000.00
$15,000.00
$1,596,250.00