GREATER YUMA REGION FOOD PROCESSING GUIDE 1.8 M 21,000+ SEASONAL FOOD PEOPLE PRODUCTION WORKERS (WITHIN 60 MILES)

212k 1% YUMA MSA POPULATION YUMA MSA GROWTH RATE (EST. 250,000 BY 2030) (U.S. GROWTH: 0.7%)

NO NATURAL 30 WEATHER DISRUPTIONS AVERAGE AGE (4,015 HOURS OF SUN/YEAR)

30%+ rd LOWER COST OF DOING 3 LARGEST METRO BUSINESS THAN CA or PHOENIX IN ARIZONA INDUSTRY HIGHLIGHTS

<3% MANUFACTURING 2% UNIONIZATION RATE TURNOVER

REDUNDANT POWER GRID 45M GALLONS 2 – 500k V LINES OF SURPLUS WATER

750,000 HEADS OF CATTLE 150+ CROPS GROWN PROCESSED ANNUALLY

700,000 GALLONS OF FLUID MILK 40,000 ACRES OF DURUM WHEAT PROCESSED MONTHLY GROWN ANNUALLY NOTABLE FOOD PRODUCTION EMPLOYERS COMPANY # OF EMPLOYEES “Yuma has been Sarah Farms Milk and Cheese 500 a good place to Datepac Date Processing 325 live and a good Nature Fresh Farms 211 place to work for about 45 years Almark Foods 172 now. We found JBS Five Rivers Cattle 92 it to be a pretty Green Giant N/A fertile soil for Green Gate Salads Seasonal business to grow FOXY Seasonal in. The business has grown and Dole Seasonal my family has Taylor Farms Seasonal grown and it has DanoneWave Seasonal been a good Driscoll Berries Seasonal launching pad Tanimura & Antle Seasonal for both.” Savor Fresh Farms Seasonal -Jon Jessen, McCormick Not Built Yet Chairman Gowan Company RECENT ANNOUNCEMENT

In 2018, McCormick purchased 20 acres for the future home of Gourmet Garden’s herb paste and lightly dried production plant in Yuma, Arizona. WINTER CROPS AND HERBS Artichokes Dill Onion Seed Artichoke seed Dried Peas Oro Blanc0 “Yuma has been Asian Greens Endive Romaine Lettuce a good place to Baby Leaf Greens Escarole Sage live and a good Basil Fennel Leaf Spinach place to work for Beet Greens Frisee Bunch Spinach about 45 years Bell Peppers Green Onions Strawberry now. We found Black Eyed Peas Head Lettuce Sugar Peas Bok Choi Hesperaloe Sunflower it to be a pretty Broccoflower Honeydew Table Beets fertile soil for Melons Tango Baby Leaf business to grow Broccoli Seed Thyme in. The business Butter Lettuce Leaf Lettuce Vegetable has grown and Leek Transplants my family has Cantaloupe Lettuce Seed Watermelon grown and it has Lolla Rosa Yellow Squash Celery Mint Zucchini squash been a good Chard Mizuna launching pad Chili Pepper Napa Cabbage for both.” Cilantro Oak Leaf Lettuce

-Jon Jessen, SUMMER AND OTHER CROPS Chairman Alfalfa Field Corn Rosemary Gowan Alfalfa Seed Garlic Safflower Company AZ Sweet Oranges Grapefruit Valencia Oranges Basil Hemp Clementines Jojoba Cotton Okra Date Palms Pecans Dates Pima Cotton Durum Wheat Red Threeawn

21,426 $12.16/HR $3.4B EMPLOYEES MEDIAN WAGE ECONOMIC OUPUT

FOOD PRODUCTION OCCUPATIONAL WAGES

OCCUPATION First-Line Supervisors of Laborers and Material Movers $23.14

First-Line Supervisors of Material-Moving Machine Operators $33.31

First-Line Supervisors of Production Workers $22.63

Helpers--Production Workers $12.03

Laborers and Material Movers, Hand $12.94

Maintenance and Repair Workers, General $14.84 Material Moving Workers, All Other $12.35 Packaging and Filling Machine Operators $12.73 Packers and Packagers, Hand $12.02 Quality Assurance Coordinator $31.30 SEASONAL WORKFORCE

“One of the greatest 25,512 advantages 164,749 25,512 that Yuma has is the people. I think we do Laborshed Underemployed have a good untapped resource for Seasonal Occupations # of Workers the workforce. Helpers-Production Workers 5,618 The work is Construction Laborers 4,234 “opportunity”. Production Workers- All Other 2,215 You can get Packers and Packagers- Hand 3,379 out of this Customer Service Representatives 1,834 Industrial Truck and Tractor Operators 627 community Agricultural Equipment Operators 1,795 what you put Laborers and Freight, Stock, and Material 1.769 into it.” Movers- Hand -Dave Heavy and Tractor-Trailer Truck Drivers 516 Mansheim, Office Clerks, General 1,036 Gowan Receptionists and Information Clerks 694 Company Maintenance and Repair Workers, General 782

Stock Clerks 7,521 Total 25,251

REGIONAL ACCESS Four states, two nations creates one powerful region. The greater Yuma region is positionedREGIONAL on the border ACCESS of California and Mexico. The strategic location has provided a distinct advantage for company’s needing to access major west coast markets.

Driving Distance in Hours MEXICALI 1 PHOENIX 2.5 SAN DIEGO 2 52M CONSUMERS TIJUANA 3 WITHIN 10-HOUR DRIVE LOS ANGELES 5 NOGALES 5 LAS VEGAS 5 ST. GEORGE 7 LAS CRUCES 8 ALBUQUERQUE 9 SAN FRANCISCO 10 SACRAMENTO 10 QUICK FACTS

• Access to 52M People within 10-Hours

• Regional distribution network served by Interstate 8, Highway-95, and Highway-195

• Two International Ports of Entry

• $200M+ invested into highway and interstate improvements

• Daily flights to Phoenix and Dallas operated by American Air

• 300+ regional refrigerated trucks

• FEDEX and UPS terminals

• Union Pacific rail serves the region

• FTZ #219 offers property tax and tariff reductions

*FEDEX Freight Map

INDUSTRIAL ELECTRIC RATES

$34,921.00 Yuma $125,079.51 $40,607.38 Tucson $123,859.31 $32,113.80 St. George $136,840.20 Riverside $56,034.00

$183,750.02 UTILITYRATES $34,247.00 Reno $76,740.50 $34,247.00 Phoenix $125,079.51

$0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 1,000kw/400MWH 5,000kw/1500MWH

INDUSTRIAL GAS RATES (Per 1000 CF)

Phoenix $6.97

Reno $6.00

Riverside $7.55

St. George $5.32

Tucson $6.97

Yuma $6.97

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 INDUSTRIAL WATER (1M CF/Monthly)

Yuma $17,292

Tucson $39,292

St. George $17,230

Riverside-San Bernardino $19,574

Reno $24,854 UTILITYRATES

Phoenix $38,794

$0 $10,000 $20,000 $30,000 $40,000

INDUSTRIAL SEWER (1M CF/Monthly)

Yuma $20,605

Tucson $41,383

St. George $20,190

Riverside-San Bernardino $38,340

Reno $53,706

Phoenix $23,181

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 First-Line Supervisors of Laborers and First-Line Supervisors of Material- Material Movers Moving Machine Operators

Riverside-San Bern Riverside-San Bern

Reno Reno

Phoenix Phoenix

Tucson Tucson Wages Food Processing

Yuma St George

St George Yuma

$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 FOOD ROCESSING

First-Line Supervisors of Production Helpers--Production Workers Workers

Reno Riverside-San Bern Riverside-San Bern Reno Phoenix Phoenix

Tucson Tucson

St George St George

Yuma Yuma $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $0.00 $5.00 $10.00 $15.00 $20.00

Industrial Production Managers Laborers and Material Movers, Hand

Riverside-San Bern Reno

Reno Riverside-San Bern

Phoenix Phoenix

Tucson Tucson

St George Yuma

Yuma St George

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $0.00 $5.00 $10.00 $15.00 $20.00

Maintenance and Repair Workers, Material Moving Workers, All Other General

Reno Riverside-San Bern Riverside-San Bern Reno Phoenix Phoenix

Tucson Tucson

St George St George

Yuma Yuma $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $0.00 $5.00 $10.00 $15.00 $20.00 Packaging and Filling Machine Operators Packers and Packagers, Hand

Reno Reno

Riverside-San Bern Riverside-San Bern

Phoenix Phoenix

Tucson Tucson Food Processing Wages Food Processing

St George St George

Yuma Yuma

$0.00 $5.00 $10.00 $15.00 $20.00 $0.00 $5.00 $10.00 $15.00 $20.00

Helpers--Production Workers Quality Assurance Coordinator

Reno Riverside-San Bern Riverside-San Bern Reno Phoenix Phoenix Tucson Tucson St George Yuma Yuma St George $0.00 $5.00 $10.00 $15.00 $20.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00

Riverside Job Title Phoenix Reno San Bern St George Tucson Yuma First-Line Supervisors of Laborers and Material $27.62 $29.92 $29.95 $20.26 $25.86 $23.14 Movers First-Line Supervisors of Material-Moving Machine $40.63 $43.65 $44.25 $34.39 $38.15 $33.31 Operators First-Line Supervisors of $27.33 $29.32 $28.36 $25.62 $26.58 $22.63 Production Workers Helpers--Production $18.09 $19.19 $18.67 $12.99 $17.65 $10.73 Workers Industrial Production $49.74 $50.56 $53.15 $43.34 $47.05 $39.31 Managers Laborers and Material $18.15 $19.61 $19.46 $11.88 $17.03 $11.94 Movers, Hand Maintenance and Repair $24.23 $26.18 $26.29 $16.16 $23.20 $14.84 Workers, General Material Moving Workers, $18.41 $19.89 $19.76 $11.88 $17.28 $11.35 All Other Packaging and Filling $16.63 $17.61 $17.01 $12.99 $16.18 $10.73 Machine Operators Packers and Packagers, $15.39 $16.58 $16.15 $9.94 $14.34 $9.82 Hand Quality Assurance $36.81 $40.01 $41.23 $26.91 $35.09 $31.30 Coordinator

EASY LIVING WHY AREN’T YOU HERE? AGE OF POPULATION (<35 YEARS OLD) 58% We offer big city amenities with small AVERAGE COMMUTE TIME (MINUTES) 16.5 town charm! AVERAGE HOME PRICE $145,000 250 Restaurants 50 Live Music Spots AVERAGE RENT PRICE $825 3 Theaters % HOMEOWNERS 70% 9 Art Galleries AGE OF HOMES (9-14 YEARS OLD) 28% 8 Museums AVERAGE TEMP/ANNUAL RAINFALL 85/2” 3 Shopping Malls 13 Golf Courses 344 Healthy Active Outdoor Days 2 Family Fun Centers You might not envision Yuma as an aquatic 30+ Parks with over 200,000 Trees 26,000+ Acres of Off Roading Fun destination, but we are a water community 4 Lakes that lives and plays on 20 miles of riverfront. 4 Beaches (within 3 hours) 1 Water Park Listed as one of the “Best Small Cities to 13 Fishing Holes Live” by Money Magazine. For more information please visit: www.visityuma.com www.yumaaz.gov/parks-and-recreation/activities-guide AFFORDABILITY www.yumaaz.gov/city-administration/heritage-festivals

Yuma EDUCATION Tucson Phoenix Reno Riverside

0 50 100 150 Yuma

LOCAL INCENTIVES

CITY OF YUMA ECONOMIC DEVELOPMENT INCENTIVE FUND The City of Yuma has created a performance-based incentive fund designed to encourage new business development, "Yuma is a very business expansions, and relocations. The fund can provide interesting town, up to $1,500 per new hire, given to the company in an there is a culture upfront cash grant award. here that is friendly and YUMA COUNTY ECONOMIC DEVELOPMENT warming. INCENTIVE FUND Everyone is Yuma County has created a performance-based incentive fund designed to encourage new business development, helpful from business expansions and relocations with infrastructure dealing with the improvement requirements. The value of the fund is indexed other based upon the cost to hire and train qualified new companies, the employees and/or infrastructure improvements to county- city and the maintained property up to $1,000/per new hire. state. There is a NEW MARKET TAX CREDIT very tight Below market interest loans guaranteed by the federal networking government for the purpose of stimulating development in system even rural communities. Companies utilizing New Market Tax though it is a big Credits pay on the interest only of the loan for seven years. city.” After the 7th year, the loan is forgiven and the company is awarded the principal and equity of the loan.

-Ryan Barto, WORKFORCE SALARY AND TRAINING GRANT Insutlech Yuma’s Workforce Board offers programs that cover the entire costs of employee training, including teaching, materials, equipment and other expenses. Companies can additionally qualify for reimbursement of 50% employee salaries paid during training for up to 6 months. LOCAL INCENTIVES

CONSTRUCTION SALES TAX REIMBURSEMENT The incentive provides up to 100% credit of construction sales tax to qualifying expenses such as job-training, public infrastructure improvements and/or offsets to impact fees.

“There is a PLAN PERMIT EXPEDITION AND FEE WAIVERS reliable The Cities pledged to expedite permits in as workforce that is available, within little as 15 days based upon designed and reach, willing to application completion. The City may also work, and fully waive building, plan, and development permit dedicated to our fees. growth. We certainly MEXICAN HEALTH CARE PLAN appreciate that.” The Mexico plan is underwritten by U.S. based firms and affords individuals the option to seek -Juan Guzman, medical care in either San Luis Rio Colorado, Bard Valley MX or Algodones, Baja, MX (both sister cities to Yuma). Premium cost savings can include up to a 1/3 of the cost of a traditional U.S. plan.

YUMA OPPORTUNITY ZONES Users within designated census tracts can benefit from no capital gains tax along with tax breaks on untaxed capital gains rolled into a zone. STATE INCENTIVES

QUALIFIED FACILITIES PROGRAM “The more we Offers a refundable income credit equal to the found out about lesser of 10% of the qualifying capital investment, or $20,000 per net new job at the facility. the Yuma market, the INCOME TAX CREDITS UP TO $9,000 FOR EACH more excited we QUALIFYING NEW JOB were about the The Quality Jobs Tax Credit replaces Arizona's opportunity. We expiring Enterprise Zone Program. It provides per- knew we were in employee tax credits of $3,000 per new year for up the middle of a to three years. Credits may be carried forward for growing and five years. Eligibility qualifications are different from maturing rural to metro areas and focus on capital investment transportation and net new job create. hub. I think Yuma is going to $1.5 MILLION IN REIMBURSABLE GRANTS TO be one of the TRAIN EMPLOYEES true success Arizona provides reimbursable grants to employers stories in the that implement job-specific training plans for new next decade in jobs or for training plans that increase the skill level the state of of current employees. Award amounts range from Arizona.” $2,000 to $8,000 per position depending upon company size and location. -Wally Chester, Westcor NO SALES TAX ON MANUFACTURING EQUIPMENT Manufacturing equipment purchased within the state of Arizona qualifies for a sales tax waiver. STATE INCENTIVES

UTILITY SALES TAX WAIVER “There are many Manufacturers and processors that utilize more things important than 50% of electricity or gas to produce their to a company commodity can qualify for a sales tax waiver on when their utility bills. researching possible cities to build new or 100% ELECTABLE SALES FACTOR FOR MULTI- relocate in. STATE CORPORATIONS Location to our New legislation increases the electable sales markets, quality factor for multi-state corporations from 80% to of workforce, 100% between FY2014 and FY2017. This and quality of provides businesses with the opportunity to life were among reduce their tax burden. our long list of desires. We ACCELERATED DEPRECIATION SCHEDULES found all of these important Five-year accelerated depreciation schedules qualities in have been increased to help companies recover Yuma.” their investments even faster.

-Tim McQuade, FOREIGN TRADE ZONE #219 Northwestern Along with duty and tariff elimination or Industries reduction, Arizona offers up to an 80% reduction in state real and personal property taxes by operating in a federally qualified Foreign Trade Zone. The reduction is good for the entire time that a company operates in the FTZ.