Silicon Valley by the numbers

• 40 cities, 4 counties

• 3 million people

• 37% foreign born

• 48% have college degree(s)

• 1.5 million jobs

• 390,000 jobs in innovation & information products/services

• $110,000+ average annual wages

• 13% of US patents

• $24.5 billion in venture capital investments in 2015

• 10% of California’s GDP Mission Bay

1998-2015 1998 2004 2014 2015 GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

Governor’s Office of Business and Economic Development GO-Biz GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR GO-Biz Overview • Created in Statute in 2012

• Lead entity for the State of California in economic development and job creation efforts.

• Report directly to the Governor’s Senior Advisor on Jobs and the Economy Mike Rossi GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR GO-Biz Overview • California Business Investment Services • Site selection assistance • Incentive analysis • Facilitation with state and local governments • Coordination with utilities and supporting organizations • Permit Assistance • Identification of applicable permits • CalGOLD online permit tracking system • Consolidated permitting program GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR GO-Biz Overview • International Trade • Coordination for Foreign Direct Investment interested in CA opportunities • Federal EB-5 Immigrant Investor program • Management of Investment Office and Trade Missions • Innovation and Entrepreneurship • Small Business • Cal Competes • Competitive Tax Credit Program GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR GO-Biz Overview • California Infrastructure and Economic Development Bank (I-Bank) • Industrial Development Bonds • Film Commission • Travel & Tourism Commission GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

Top Incentives Full Sales and Use Tax Exclusion • Excludes the full sales tax from qualified manufacturing purchases for – advanced manufacturers; – manufacturers of alternative source energy products, components or systems; and – advanced transportation products, components or systems • $100 million in tax savings per year allocated

Partial Sales and Use Tax Exemption • Statewide exemption of the state’s portion of the sales and use tax (4.1875%) on equipment purchases as well as certain building improvements for manufacturing, research and development, as well as biotechnology • Over 14,000 returns filed; over $3 Billion in equipment purchased (2015) – $128 million in tax savings New Employment Credit • The New Employment Credit (NEC) is a California income tax credit. • Employer engaged in a trade or business within a designated within a DGA. California Competes • Corporate income tax credits available to businesses that successfully compete in a tax credit notification period on certain project/business based merits. • Applications are all online for no fee. • Tax credit agreements will be negotiated by GO-Biz and approved by California Competes Tax Credit Committee GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

Top Incentives Continued… Employment Training Panel • Company negotiates curriculum and contract with ETP Board • Contracts can be Single Employer or Multi Employer • Reimbursement rate is set in a 20 month contract • Actual Reimbursement in based on actual hours trained and retention of employee

Economic Development Rate • PG&E and SoCal Edison offers a discounted utility rate of 12% or 30% for a five year period • The rate is available to businesses with high energy loads (minimum 200kw) that currently operate or are considering operating in California. • Company must be facing shutdown or out of state competition • Electricity Only GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

Request For Information (RFI) Process 1. Initial inquiry, collection and qualification of information from client to CalBIS 2. CalBIS RFI issuance to statewide regional network based on the client’s geographic preference 3. Response information collected by CalBIS from regional network 4. CalBIS preparation and response to client with findings 5. Client review, short listing (or selection) and subsequent follow up as needed

Information Collected from the Client • General information: a concise overview of the proposed business activity • Occupancy information: estimated investments in land, building and equipment; occupancy, operation and expansion schedule; ranking for site selection factors • Land and building requirements: minimum and maximum requirements for land acreage, building size and building components; acquisition preferences (purchase or lease) including lease requirements; other requirements including ceiling height, number and position of loading dock doors, parking, and storage • Utility requirements: immediate and full operation estimates for electricity load demand, usage, voltage, amperage, and operating schedules; natural gas; water; waste water; communications and identification of any potential environmental issues • Transportation requirements: truck, air, rail and shipping (including frequency) • Employment information: number of employees at current facilities, at the new facility, transfers and new hires; job descriptions and proposed wages • Ranking for geographic preference within the state • Competitors: other states and foreign countries • Special requirements: if any GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

3 Year Average of Projects by Industry

2% 6% 5%

6% 11%

Distribution 7% Food Related GREEN-Clean Tech/Renewable Energy High Tech/R&D Manufacturing 22% Other Pharmaceutical/Biotech Service Back Office 33% 8% GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

3 Year Average of Geographic Origination

3%

16%

California Expansion 42% California New Business California Retention Foreign 17% Other US States Western US

10% 12% GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

3 Year Average of Wins by Industry

7.53% 11.83% 4.30%

Pharmaceutical/Biotech 6.45% 7.53% GREEN-Clean Tech/Renewable Energy High Tech/R&D 7.53% Manufacturing

11.83% Food Related Distribution Service

16.13% Back Office Other

26.88% GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

3 Year Average of Wins by Region

3.70% 11.11% 9.88% 0.00%

Upstate California Sacramento Region 14.81% Central Sierra Bay Area Central Valley 27.16% Central Coast Los Angeles/Orange Inland Empire San Diego/Imperial 20.99%

11.11%

1.23% GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

3 Year Average of Wins by Geographic Origin

2.15%

5.38%

17.20% California Expansion California New Business California Retention

51.61% Foreign Other US States 11.83% Western US States

11.83% GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

What Companies Look For In the RFI • Responses that address their needs/requirements. • General overview of your community (not just a property brochure). • Any and all “local incentives” i.e. fast tracked permitting, waiver of fees etc.

RFI Insights/Suggestions

• Provide as much info on your community as possible. i.e. avg home prices, info on school districts, workforce data, air quality etc. • Outline your competitive advantages compared to other regions/states in the RFI. • Ask to reach out to the client (only if it’s not a confidential project or if the client only wants to work through GO-Biz). • Provide photos of your community. • Leverage your region and look to neighboring communities to potentially partner on “selling” your area to clients. GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT (GO-BIZ) STATE OF CALIFORNIA v OFFICE OF GOVERNOR EDMUND G. BROWN JR

THANK YOU

Gil Gonzales [email protected] (415) 703-1046

California Business Investment Services (CalBIS) California Governor’s Office of Business and Economic Development (GO-Biz) 455 Golden Gate Ave, Suite 14000 San Francisco, CA 94102 Web: www.business.ca.gov