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Grand Canyon Airlines, Inc

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Grand Canyon Airlines, Inc Board Summary Grand Canyon Airlines, Inc. Date: September 15, 2016 1265 Airport Road, Boulder City, NV 89005 Main Location: Carson City, Nevada Alan Stephen - Vice President Corporate Affairs Scenic and Sightseeing Transportation 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. - 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. PROFILE 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. SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND 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. 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. Section 7 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below ) Check the applicable box when form has been completed. 7 (A) Real Estate and Construction 7 (E) Employment Schedule 7 (B) Capital Equipment List 7 (F) Evaluation of Health Plan 7 (C) Aviation Parts List 7 (D) Aircraft Procurement List Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both ) New Operations / Start Up Expansions How many full-time equivalent (FTE*) employees will be created by the How many full-time equivalent (FTE*) employees will be created by the end of the first fourth quarter of new operations?: end of the first fourth quarter of expanded operations?: 4 Average hourly wage of these new employees: Average hourly wage of these new employees: $21.50 How many FTE employees prior to expansion?: 127 Average hourly wage of these existing employees: $19.16 Total number of employees after expansion: 131 * 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. OTHER COMPENSATION (Check all that apply): Overtime Merit Increase Tuition assistance Bonus PTO / Sick / Vacation COLA adjustments Retirement Plan / Profit Sharing / 401(k) Other: BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary): Section 9 - 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 Dental Other: Qualified after (check one): Upon employment Three months after hire date Six months after hire date Other: 60 days after the 1st of the following month Health Insurance Costs: Percentage of health insurance coverage by: Cost of health insurance for company (annual amount per employee): $5,147.00 Company: 84% Health Plan annual out-of-pocket maximum (individual): $5,500.00 Employee: 16% [SIGNATURE PAGE FOLLOWS] 2 Site Selection Factors Company Name: Grand Canyon Airlines, Inc. County: Clark Section 1 - Site Selection 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. 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 OTHER FACTORS & RATINGS: 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. .
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