Turano Baking Company - Nevada Governor`s Office of Economic

Board Summary
Business Type: New
Turano Baking Company
Date: September 17, 2015
6501 W. Roosevelt Rd., Berwyn, IL 60402
Anthony M. Turano, Director of Administration
Wholesale Bakery
Main Location: Las Vegas
County: Clark County
Development Authority Representative: Morgan Bunker - LVGEA
APPLICATION HIGHLIGHTS
- Turano Baking Company 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 $10,000,000 for building improvements.
PROFILE
As the nation's leading premium bakery, Turano Baking Company, has a strong track record of steady growth, long-term employment, and business
stability. Their products include over 500 varieties of full and par-baked breads, ranging from European artisan breads to Premium Hamburger Buns
using ancient, time tested techniques and recipes. The company was founded in 1962 by Mariano Turano, Turano Baking Company continues to be
operated by the second and third generations. Source: Turano Baking Company
SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND
Turano Baking Company currently employs over 825 individuals in four states with an average Employee tenure of nearly 10 years. The company is
seeking a western location to produce and distribute their products servicing the Pacific Coast and Rockies. Their search includes: Nevada, Arizona,
and California; however, their preference is to locate in Clark County, Nevada. The company looks to Nevada's incentive package to support the
location in the Clark County area. Source: Turano Baking Company
REQUIREMENTS
Statutory
Application
Sufficient
% Over / Under
50
$20.89
$1,000,000
$5,000,000
67
$23.11
$38,075,000
$38,075,000
Yes
Yes
Yes
Yes
34%
11%
3708%
662%
Requested Terms
Estimated $ Amount
Abated to 2%
50% for 4 years
50% for 10 years
$2,322,600
$67,500
$1,221,100
$3,611,200
Contracted
24-Month Projection
5-Year Projection
67
67
100 - 150 Total
Land
Building Purchase
BTS / Building Improvements
$5,000,000
$0
$10,000,000
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
Total
205
$104,477,440
$625,539,986
123
$59,317,856
$501,634,028
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
$2,479,100
$0
$0
$2,815,300
$1,940,500
$57,200
$5,294,400
$1,940,500
$57,200
$146,000
$761,500
$663,400
$0
$4,050,000
$169,200
$647,800
$604,900
$14,300
$6,249,200
$315,200
$1,409,300
$1,268,300
$14,300
$10,299,200
Economic Impact per Abated Dollar
$173
New Total Tax per Abated Dollar
$2.85
EMPLOYEE BENEFITS
- Percentage of health insurance covered by company: 78%.
- Health care package cost per employee - $10,910 annually with options for dependents.
- Overtime, PTO/Sick/Vacation, Bonus, Retirement Plan, LTD, Tuition Assistance .
NOTES
- Percentage of market outside of Nevada: 90%.
- The company average hourly wage exceeds the statewide hourly average wage of $20.89 by 11%.
Company is an / a: (check one)
New location in Nevada
Incentive Application
Company Name:
Turano Baking Company
Date of Application:
August 5, 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
Train Employees Now (TEN)
Modified Business Tax Abatement
Recycling Real Property Tax Abatement
Personal Property Tax Abatement
Economic Development Rate Rider
Section 2 - Corporate Information
COMPANY NAME (Legal name under which business will be transacted in Nevada)
FEDERAL TAX ID #
Turano Baking Company (legal entity TBD)
36-2588905 (TBD)
CORPORATE ADDRESS
CITY / TOWN
STATE / PROVINCE
6501 W. Roosevelt Rd.
Berwyn
IL
60402
MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above)
CITY / TOWN
STATE / PROVINCE
ZIP
TELEPHONE NUMBER
WEBSITE
(708) 788-9220
www.TURANO.com
COMPANY CONTACT NAME
COMPANY CONTACT TITLE
Anthony M. Turano
Director of Administration
E-MAIL ADDRESS
PREFERRED PHONE NUMBER
[email protected]
(708) 317-3943
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)
90%
Apr-2017
NAICS CODE / SIC
INDUSTRY TYPE
311812
Wholesale Bakery - Breads, Rolls, and Other Baked Goods
DESCRIPTION OF COMPANY'S NEVADA OPERATIONS
Wholesale bakery producing breads, buns, rolls, and other baked goods for fresh and frozen distribution. Fresh distribution system centralized out of this facility. Cold
Storage Warehouse is part of initial building and subsequent expansions. Frozen Distribution to take place from this facility to other parts of Country.
PROPOSED / ACTUAL NEVADA FACILITY ADDRESS
CITY / TOWN
COUNTY
TBD
Henderson/North Las Vegas
Clark County
ZIP
WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP?
California; Phoenix, Arizona
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
5
3
5
Utility infrastructure:
Utility costs:
Transportation infrastructure:
Transportation costs:
OTHER FACTORS & RATINGS
The major factors are captured above for us. These are all equally weighted, along with customer needs.
1
5
4
4
5
State and local tax structure:
State and local incentives:
Business permitting & regulatory structure:
Access to higher education resources:
5
5
4
2
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 No, skip to Part 3. If Yes * , continue below:
If Yes * :
Purchase date, if buying (month, year):
Nov-2015
When to make improvements (month, year)?
When to break ground, if building (month, year)?
Mar-2016
Estimated completion date, if building (month, year):
Jun-2017
Part 2. ARE YOU CURRENTLY OPERATING AT AN
How much space (sq. ft.)?
150,000
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):
The construction project will involve a typical industrial building with consideration given to green building design.
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):
Building Purchase (if buying):
HOW MUCH CAPITAL INVESTMENT IS PLANNED? (Breakout below):
$0
Building Purchase (if buying):
Building Hard Costs (if building / making improvements):
$10,000,000
Building Hard Costs (if building / making improvements):
Land:
$5,000,000
Land:
Equipment Cost:
$38,000,000
Equipment Cost:
Total:
$53,000,000
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
67
end of the first fourth quarter of new operations?:
Average hourly wage of these new employees:
$23.11
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: LTD, Medical, Dental, Vision
BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):
Please see attached document.
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:
60 days after hire date
COST OF HEALTH INSURANCE FOR COMPANY (annual amount per employee):
PERCENTAGE OF HEALTH INSURANCE COVERAGE:
$10,910
By Company: 78%
By Employee: 22%
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: Turano Baking Company
Clark County
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
Production & Packaging
Sanitation
Shipping & Receiving
Quality Assurance
Maintenance
Customer Service
Shift Supervision
Plant Management
24
7
11
3
9
3
3
7
$17.00
$17.00
$18.00
$18.00
$23.00
$45.00
$33.80
$46.60
40
40
40
40
40
40
40
40
$35,360.00
$35,360.00
$37,440.00
$37,440.00
$47,840.00
$93,600.00
$70,304.00
$96,928.00
$848,640
$247,520
$411,840
$112,320
$430,560
$280,800
$210,912
$678,496
TOTAL
67
$23.11
$3,221,088
New Hire Position Title/Description
Equipment List
Company Name: Turano Baking Company
County:
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
Ingredient Handling System
Dough Make-Up Systems
Proof, Bake, and Cooling Systems
Packaging Equipment
Other Production Equipment (Metal Detectors, Topping Equipment)
Pan Systems (depanner, stacker, unstacker, cooling, pan storage)
Electrical Generators
Pans, Trays, Pallets, and Dollies
Information Technology Hardware & Office Furniture
Chillers, Boilers/Steam Generation, and Air Compressors
Freezer Systems
TOTAL EQUIPMENT COST
( b)
# of Units
(c)
Price per Unit
(d)
Total Cost
2
2
2
3
3
2
1
1
1
2
1
$4,500,000.00
$3,000,000.00
$3,100,000.00
$1,550,000.00
$800,000.00
$1,500,000.00
$1,000,000.00
$1,500,000.00
$225,000.00
$800,000.00
$2,500,000.00
$9,000,000.00
$6,000,000.00
$6,200,000.00
$4,650,000.00
$2,400,000.00
$3,000,000.00
$1,000,000.00
$1,500,000.00
$225,000.00
$1,600,000.00
$2,500,000.00
$38,075,000.00
Turano Baking Company
Family Owned and Operated for Three Generations
Media Coverage
Industry Media
Baking Hall of Fame Press Release and Growing a Family Business
Baking & Snack – July 2015
Baking & Snack – 2011 Baker of the Year and Slideshow
And Now Soft Buns
Baking By the Numbers
For the Love of Baking
A Tale of Four Cities
Turano TV
Serving a Diversified Market
True to Its Roots
Storm Track and Perfect Storm
Baking & Snack – On Becoming a Star
Baking & Snack – First in Flexibility
Baking & Snack – Bakers Sell Freshness
Baking & Snack – Bun Bakers Balance Quality and Price
Baking & Snack – Bake to the Future
Baking & Snack – Follow the Customer
Snack Food & Wholesale Bakery – Turano Turns 50
Snack Food & Wholesale Bakery – Artisan on Automatic
Snack Food & Wholesale Bakery – Celebrating Bread
Snack Food & Wholesale Bakery – Il Forno Romano
YouTube
Wild Berwyn
Made in Chicago
Chef Paul – Holiday Stuffing
Food Factory USA
Other Honors
Tony Iovinelli’s 40 Years with Turano
Darden Restaurants’ 2000 Distinguished Vendor
Fra Noi Chicago
Turano Baking Company
Since 1962
Berwyn, Illinois
Baking Since 1967
Bolingbrook, Illinois
Baking Since 1994
Villa Rica, Georgia
Baking Since 2008
Orlando, Florida
Baking Since 2009
Turano Baking Company
Benefits for All Employees
Medical
Health
Dental
Vision
Wellness
Retirement
Safe Harbor
Defined Contribution - 401(k) Savings
Disability
Life Insurance
Long-Term Disability
Vacation and Holiday Pay
Employee of the Month
Tuition Assistance
Turano Baking Company
6501 W Roosevelt Rd | Berwyn, Illinois 60402 | www.TURANO.com
Nevada Regional Project Assessment System - Project Summary
For the Years: 2017-2026
Jobs and Payroll
New direct jobs created
New direct payroll
150
$7,210,320
Average hourly wage for project
$23.11
Industry average wage
$17.41
Capital Investment
Value of new construction
Value of new equipment purchases
$0
$38,075,000
Economic Impact*
Total value economic impact
Total new jobs supported
Total new payroll supported
Household spending supported
$625,539,984
249
$104,477,192
$85,581,662
Construction Impact
Total value construction impact
Total new jobs supported
Total new payroll supported
$0
0
$0
New Tax Revenue (direct and indirect)*
Local Taxes
Property
$5,300,434
Sales
$1,940,453
Lodging Tax
Total Local Taxes
$57,155
$7,298,042
State Taxes
Property
Sales
Lodging Tax
$315,216
$1,409,259
$14,289
Modified Business Tax and Commerce Tax
$1,268,321
Total State Taxes
$3,007,084
* Includes jobs, payroll, output and tax revenues of companies assisted by the Nevada Development Authorities as well as secondary impacts at other local
businesses. Report includes only impacts created in 2017-2026. Additional impacts will be generated in future years.
14-Aug-15
1 of 1