Page 1 Page 2 Presentation Objectives 1 2 3 Provide an Overview of Summarizes the Current Discuss Potential Storey County’s Status of the Timelines for Financing Economic Development Application and and Development of the Financing Proposal Preliminary Submittal Project (If Deemed Provided Appropriate) Page 3 Provide an Overview of Storey County’s 1 Economic Development Financing Proposal Key Players Private Public Applicant For Consideration TRIGID Page 4 Provide an Overview of Storey County’s 1 Economic Development Financing Proposal Project Overview 13 Miles Effluent Water Pipeline Water Processing Economic Water (Off-Site Improvements) (On-Site Improvements) Development “The Project” Under Jobs Consideration TRIGID Page 5 Provide an Overview of Storey County’s 1 Economic Development Financing Proposal Project Overview 13 Miles Effluent Water Pipeline Water Processing Economic Water (Off-Site Improvements) (On-Site Improvements) Development “The Project” Under Jobs Consideration TRIGID ±$35 ±$30 Million Million Page 6 Provide an Overview of Storey County’s 1 Economic Development Financing Proposal Enabling Legislation: SB1 (2015) “Sections 19-29 of this bill establish provisions pursuant to which a local government that receives notice from the Office that a qualified project will be located within the jurisdiction of the local government and that determines there is a need to finance infrastructure projects to support the development of the qualified project may submit to the Office an economic development financing proposal pursuant to which the infrastructure projects would be financed from the proceeds of bonds, securities or other indebtedness issued by the State of Nevada.” Note: The reference Senate Bill 1 (SB1) is from the 2015 Special Session. Page 7 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Preliminary Submission Filed . Filed on June 30, 2017 . Summary document and all supporting exhibits are available at: www.AppliedAnalysis.com/EDFP . Contains the best available information as of the date of the submission . Pending items that will be completed before any financing moves forward . Subject to review and approval of the Board of Commissioners of Storey County Page 8 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided TRIC Build-Out and Absorption 2017 45 40 35 30 25 20 15 Square Feet in Millions in Feet Square 10 5 0 Tesla Switch New Data Centers New Distribution New Manufacturing New Retail Warehouses Built Planned Note: Projected build-out assumes an unconstrained environment (i.e., no infrastructure restrictions). Page 9 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided TRIC Build-Out and Absorption 2020 45 40 35 30 25 20 15 Square Feet in Millions in Feet Square 10 5 0 Tesla Switch New Data Centers New Distribution New Manufacturing New Retail Warehouses Built Planned Note: Projected build-out assumes an unconstrained environment (i.e., no infrastructure restrictions). Page 10 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided TRIC Build-Out and Absorption 2025 45 40 35 30 25 20 15 Square Feet in Millions in Feet Square 10 5 0 Tesla Switch New Data Centers New Distribution New Manufacturing New Retail Warehouses Built Planned Note: Projected build-out assumes an unconstrained environment (i.e., no infrastructure restrictions). Page 11 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided TRIC Build-Out and Absorption 2030 45 40 35 30 25 20 15 Square Feet in Millions in Feet Square 10 5 0 Tesla Switch New Data Centers New Distribution New Manufacturing New Retail Warehouses Built Planned Note: Projected build-out assumes an unconstrained environment (i.e., no infrastructure restrictions). Page 12 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided TRIC Build-Out and Absorption 2035 45 40 35 30 25 20 15 Square Feet in Millions in Feet Square 10 5 0 Tesla Switch New Data Centers New Distribution New Manufacturing New Retail Warehouses Built Planned Note: Projected build-out assumes an unconstrained environment (i.e., no infrastructure restrictions). Page 13 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided TRIC Build-Out and Absorption 2040 45 40 35 30 25 20 15 Square Feet in Millions in Feet Square 10 5 0 Tesla Switch New Data Centers New Distribution New Manufacturing New Retail Warehouses Built Planned Note: Projected build-out assumes an unconstrained environment (i.e., no infrastructure restrictions). Page 14 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided TRIC Build-Out and Absorption 2045 45 40 35 30 25 20 15 Square Feet in Millions in Feet Square 10 5 0 Tesla Switch New Data Centers New Distribution New Manufacturing New Retail Warehouses Built Planned Note: Projected build-out assumes an unconstrained environment (i.e., no infrastructure restrictions). Page 15 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Summary of Off-Site Project Costs Project Element Est. Cost Pipeline Construction Costs $20,422,260 Pump Station Construction Costs $1,334,150 Admin, Contingency, and Engineering Costs $7,179,615 Total Off-Site Project Costs $28,936,025 Page 16 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Sources of Revenue for the Project Real Property Taxes Personal Property Taxes Modified Business Tax Sales and Use Tax (Payroll) (Equipment and Material Purchases) Page 17 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Projected Public Revenues Total Public Revenues, Net of Abatements $140 Millions $120 $100 $80 $60 $40 $20 $0 Real Property Tax Personal Property Tax Modified Business Tax Sales & Use Tax Page 18 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Projected Public Revenues Incremental Public Revenues, Net of Abatements $90 $80 Millions $70 $60 $50 $40 $30 $20 $10 $0 Real Property Tax Personal Property Tax Modified Business Tax Sales & Use Tax Page 19 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Bond Financing Summary Assumptions Value Par Amount $28,555,000 Premium $2,986,646 Interest Rate/Yield 4.03% Term 25 Years Amortizing Annual Debt Service Amount $2,103,301 Interest-Only Period (Non-Amortizing) First 2 Years Required Coverage (Minimum Cash Flow Relative to Debt Service) 3.0x Required Debt Service Reserves (Paid from Proceeds up Front) 1 Year Page 20 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Sources and Uses Sources Par Amount $28,555,000 Premium 2,986,646 Total Sources $31,541,646 Uses Project Fund $28,950,000 Debt Service Reserve Fund 2,105,750 Cost of Issuance 300,000 Underwriter's Discount 185,608 Contingency 288 Total Uses $31,541,646 Page 21 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Bond Repayment Schedule Year Ending June 30 Initial Balance Principal Interest Total Payment Ending Balance TIA Revenue Coverage Ratio Year 2018 $28,555,000 $0 $0 $0 $28,555,000 $3,274,916 NA Year 2019 $28,555,000 $0 $1,362,063 $1,362,063 $28,555,000 $4,118,480 3.02x Year 2020 $28,555,000 $0 $1,362,063 $1,362,063 $28,555,000 $4,979,939 3.66x Year 2021 $28,555,000 $740,000 $1,362,063 $2,102,063 $27,815,000 $6,751,089 3.21x Year 2022 $27,815,000 $765,000 $1,339,863 $2,104,863 $27,050,000 $17,026,751 8.09x Year 2023 $27,050,000 $790,000 $1,315,000 $2,105,000 $26,260,000 $19,682,493 9.35x Year 2024 $26,260,000 $815,000 $1,287,350 $2,102,350 $25,445,000 $21,513,246 10.23x Year 2025 $25,445,000 $850,000 $1,254,750 $2,104,750 $24,595,000 $38,112,055 18.11x Year 2026 $24,595,000 $880,000 $1,220,750 $2,100,750 $23,715,000 $39,822,766 18.96x Year 2027 $23,715,000 $920,000 $1,181,150 $2,101,150 $22,795,000 $41,527,015 19.76x Year 2028 $22,795,000 $965,000 $1,139,750 $2,104,750 $21,830,000 $43,220,037 20.53x Year 2029 $21,830,000 $1,010,000 $1,091,500 $2,101,500 $20,820,000 $44,935,768 21.38x Year 2030 $20,820,000 $1,060,000 $1,041,000 $2,101,000 $19,760,000 $46,647,488 22.20x Year 2031 $19,760,000 $1,115,000 $988,000 $2,103,000 $18,645,000 $48,361,950 23.00x Year 2032 $18,645,000 $1,170,000 $932,250 $2,102,250 $17,475,000 $56,659,311 26.95x Year 2033 $17,475,000 $1,230,000 $873,750 $2,103,750 $16,245,000 $68,390,281 32.51x Year 2034 $16,245,000 $1,290,000 $812,250 $2,102,250 $14,955,000 $70,707,954 33.63x Year 2035 $14,955,000 $1,355,000 $747,750 $2,102,750 $13,600,000 $76,749,267 36.50x Year 2036 $13,600,000 $1,425,000 $680,000 $2,105,000 $12,175,000 $71,024,204 33.74x Year 2037 $12,175,000 $1,495,000 $608,750 $2,103,750 $10,680,000 $78,385,946 37.26x Year 2038 $10,680,000 $1,570,000 $534,000 $2,104,000 $9,110,000 $71,569,979 34.02x Year 2039 $9,110,000 $1,650,000 $455,500 $2,105,500 $7,460,000 $72,197,367 34.29x Year 2040 $7,460,000 $1,730,000 $373,000 $2,103,000 $5,730,000 $73,685,801 35.04x Year 2041 $5,730,000 $1,815,000 $286,500 $2,101,500 $3,915,000 $75,204,969 35.79x Year 2042 $3,915,000 $1,910,000 $195,750 $2,105,750 $2,005,000 $76,755,475 36.45x Year 2043 $2,005,000 $2,005,000 $100,250 $2,105,250 $0 $78,337,933 37.21x 2 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Bond Coverage Ratio (3.0x Min.) Ratio Bond Coverage 5.0 - Preliminary Preliminary Submittal Provided Summarizes Application the Current Status and of the N/A 3.0x 3.7x 3.2x 8.1x 9.4x 10.2x 18.1x 19.0x 19.8x 20.5x 21.4x 22.2x 23.0x 27.0x 32.5x 33.6x 36.5x 33.7x 37.3x 34.0x 34.3x 35.0x 35.8x 36.5x 37.2x Page Page 22 Page 23 Summarizes the Current Status of the Application and 2 Preliminary Submittal Provided Pending Agreements .