board summary aristocrat technologies, inc. 7230 … · aristocrat technologies, inc. is a leading...

Board Summary Date: July 17, 2017Main Location: Carson City

Business Type: Expansion County: Clark County Development Authority Representative: Michael Walsh, LVGEA

APPLICATION HIGHLIGHTS

PROFILE

SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND

REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation 81 25 No -69% Average Wage $21.35 $45.28 Yes 112% Equipment Capex (SU & MBT) $413,825 $2,072,500 Yes 401% Equipment Capex (PP) $413,825 $2,072,500 Yes 401%

INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. Abated to 2% for 2 years $127,459 Modified Business Tax Abmt. 50% for 4 years $52,045 Personal Property Tax Abmt. 50% for 10 years $30,457 Total $209,961

JOB CREATION Contracted 24-Month Projection 5-Year Projection81 25 34

OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements$0 $0 $700,000

ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported 61 7 Total Payroll Supported $36,971,437 $322,224 Total Output Estimate $108,262,779 $1,110,748

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) Direct Indirect Total Local Taxes

Property $1,403,554 $825,039 $2,228,593

Sales $27,983 $662,099 $690,082

Lodging $0 $29,890 $29,890

State Taxes

Property $76,766 $48,039 $124,805

Sales $50,550 $229,223 $279,773

Modified Business $257,872 $158,468 $416,340

Lodging $0 $934 $934

Total $1,816,725 $1,953,692 $3,770,417

IMPACT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar

$516 $17.96

EMPLOYEE BENEFITS

- Health care package cost per employee - $3,111 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Merit increases, Bonus, Retirement Plan / Profit Sharing / 401 (k)

NOTES - Percentage of market outside of Nevada: 79%.

Aristocrat Technologies, Inc.

Aristocrat Technologies, Inc. is a leading global provider of land-based and online gaming solutions. The company designs, manufactures, and markets gaming machines, progressive systems, and casino management systems. The company offers OASIS, a casino management system; nCompass, a media window platform that connects EGMs to casino systems and enables multi-media content to be played on video slot machines, and Interblock multiplayer gaming devices. The company also provides iPhone casino games. Aristocrat Technologies, Inc. operates as a subsidiary of Aristocrat Leisure Ltd, one of the world’s largest gaming companies, which is licensed in 240 gaming jurisdictions and operates in 90 countries around the world with a team of over 3000 employees. Source: Aristocrat Technologies, Inc.

- Recent strategic planning has Aristocrat Technologies, Inc. expecting growth in its global operations. Therefore, the company is considering expanding their Nevada operations by building a new 180,000 square foot facility in Nevada for use beginning Summer 2018. - The company's new Nevada facility would increase employment opportunities, allow further investment in the community and bring additional development activities to the region.

- Percentage of health insurance plan covered by company: 79%.

The economic development incentives offered by the State of Nevada have been an integral factor in Aristocrat Technologies, Inc.'s decision to expand within southern Nevada. A review of the company's anticipated operating costs has indicated Aristocrat Technologies, Inc. will enjoy lower operating costs in Nevada, than in other locales the company operates. Source: Aristocrat Technologies, Inc.

Company Headquarters

Neil Friedman, Deputy General Counsel

7230 Amigo Street, Las Vegas, NV 89119

February 8,2017

Mr, Steve Hill

Executive Director

Governor's Office of Economic Development

808 West Nye lane

Carson City, NV 89703

By way of this letter and the attached application, Aristocrat Technologies, Inc. ("Aristocrat" ) hereby requests that the State of

Nevada Governor's Office of Economic Development approve its application for tax incentives to assist with our planned

expansion of operations in the State of Nevada . This request is made and the enclosed application is submitted pursuant to

Nevada Revised Statutes §§ 374.357 (Sales and Use Tax Abatement), 3638.120 (Modified Business Tax Abatement) and

361.0687 (Personal Property Tax Abatement) .

Aristocrat is a leading global provider of land-based and online gaming solutions. The company offers a diverse range of

products and services induding electronic gaming machines and casino management systems. While the company presently has

offices in Australia, Nevada and Tennessee, we believe that expanding our Nevada facilities will allow us to further invest in our

community and will bring more development activities to the region .

Recent strategic planning has Aristocrat expecting growth in our global operations. We are considering build ing and occupying

a 180,000 sq. ft. facility for use beginning in Summer 2018. This new facility will support expanded operations and increased

employment opportunities. The economic development incentives offered by the State of Nevada have been an integral factor

in our decision to expand within Southern Nevada. A review of our anticipated operating costs indicates that Aristocrat will

enjoy lower operating costs in Nevada, than in other locales in which we operate. Further, we antiCipate increasing our

workforce by 25 full-time employees, at an average wage of $45.28 in our first two (2) years of expanded operations.

Our experience with representatives from the las Vegas Global Economic Alliance has been positive and we look forward to

your approval of our application to assist us with our efforts to expand in the state.

If you have any questions, please feel free to call me.

Thank you for your time and consideration.

Director Fina ial Operations

ARISTOCRAT TECHNOLOGIES INCORPORATED 7230 Amigo Street,Las Vegas, Nevada 89119 USA

Phone: (702) 270-1000 (800) 748-4156 Fax: (702) 270-1585 www.aristocratgaming.com

Company is an / a: (check one)

Incentive Application New location in Nevada

Expansion of a Nevada company

Other:

Yes No

Headquarters Service Provider

Technology Distribution / Fulfillment

Back Office Operations Manufacturing

Research & Development / Intellectual Property Other:

Aristocrat Technologies, In.c

February 8, 2017

Section 2 - Corporate Information

PROPOSED / ACTUAL NEVADA FACILITY ADDRESS

215 and Hualapai

PERCENT OF COMPANY'S NEVADA LOCATION MARKET OUTSIDE OF NEVADA

EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR)

Type of Facility:

Section 4 - Nevada Facility

Please check all that the company is applying for on this application:

713290

INDUSTRY TYPE

COUNTY ZIP

business.

greater.

wage.

E-MAIL ADDRESS PREFERRED PHONE NUMBER

Section 3 - Program Requirements

Please check two of the boxes below; the company must meet at least two of the three program requirements:

businesses. In cases of expanding businesses, the capital investment must equal at least 20% of the value of the tangible property owned by the

New businesses locating in urban areas require fifty (50) or more permanent, full-time employees on its payroll by the eighth calendar quarter following

In urban areas, the average hourly wage that will be paid by the business to its new employees is at least 100% of the average statewide hourly wage.

A capital investment of $1,000,000 in eligible equipment in urban areas or $250,000 in eligible equipment in rural areas are required. This criteria is

quarter in which the abatement becomes effective. In rural areas, the requirement is ten (10) or more. For an expansion, the business must increase

employees on its payroll by 10% more than its existing employees prior to expansion, or by 25 (urban) or 6 (rural) employees, whichever is

TELEPHONE NUMBER

702-270-1000

Dee Anne Patceg

[email protected]

Tax Manager

Oct-201879%

NAICS CODE / SIC

Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development?

in rural areas, the average hourly wage will equal or exceed the lesser of the county-wide average hourly wage or statewide average hourly

Note: Criteria is different depending on whether the business is in a county whose population is 100,000 or more or a city whose population is 60,000 or more (i.e.,

“urban” area), or if the business is in a county whose population is less than 100,000 or a city whose population is less than 60,000 (i.e., “rural” area).

702-270-1187

If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary):

COMPANY NAME (Legal name under which business will be transacted in Nevada)

CORPORATE ADDRESS

MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above)

WEBSITE

COMPANY CONTACT TITLE

www.aristocrat.com

COMPANY CONTACT NAME

WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP?

CITY / TOWN

Las Vegas Clark County 89135

Electronic Gaming Machine assembly, sales & development

CITY / TOWN

Las Vegas

STATE / PROVINCE

NV 89119

FEDERAL TAX ID #

88-0097390Aristocrat Technologies, In.c

7230 Amigo Street

ZIP

CITY / TOWN STATE / PROVINCE ZIP

Gambling Industries, Gaming Machines

DESCRIPTION OF COMPANY'S NEVADA OPERATIONS

Sales & Use Tax Deferral

Recycling Real Property Tax AbatementModified Business Tax Abatement

Personal Property Tax Abatement

Section 1 - Type of Incentives

Company Name:

Date of Application:

Sales & Use Tax Abatement

1

http://www.aristocrat.com/









mailto:[email protected]











5 (A) Equipment List

5 (B) Employment Schedule

5 (C) Evaluation of Health Plan, with supporting documents to show the employer paid portion of plan meets the minimum of 65%.

When to break ground, if building (month, year)?

Estimated completion date, if building (month, year):

How much space (sq. ft.)?

How much space (sq. ft.)? 144,100

Do you plan on making building tenant improvements? Yes

When to make improvements (month, year)? Jun-2018

Section 5 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below)

If No, skip to Part 3. If Yes * , continue below:


Due to expansion, will you lease additional space?

Do you plan on making building tenant improvements?

70,000How much expanded space (sq. ft.)?

Annual lease cost of expanded space:

What year(s)?

Yes

$3,256,000.00

If No, skip to Part 2. If Yes * , continue below: Expanding at the current facility or a new facility?

Part 2. Are you currently/planning on

Annual lease cost at current space:

What year(s)? 2018

Part 1. Are you currently leasing space in Nevada?

If No, skip to Part 2. If Yes, continue below:

If No, skip to Part 2. If Yes, continue below: 2014-2019

YesPart 1. Are you currently/planning on

New

Annual lease cost of space:

Check the applicable box when form has been completed.

Expansions - Plans Over the Next 10 YearsNew Operations / Start Up - Plans Over the Next Ten Years

leasing space in Nevada?

Section 6 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.)

Part 2. Are you currently operating at an


Do you plan on making building improvements?

Purchase date, if buying (month, year):

Purchase date, if buying (month, year):

When to break ground, if building (month, year)?

We currently lease space and own a building. Our expansion plan would include vacating current lease and expanding into larger leased space and

expanding our existing owned building.

Estimated completion date, if building (month, year):

$3,124,898.00

No

127,867


Yesowner occupied building in Nevada?

Yes

If Yes * , continue below:



Due to expansion, will you be making building improvements?

Jan-2018

Current assessed value of real property?

When to make improvements (month, year)?

Part 3. Are you currently/planning on

building a build-to-suit facility in Nevada?

BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary):

* Please complete Section 7 - Capital Investment for New Operations / Startup. * Please complete Section 7 - Capital Investment for Expansions below.

$1,554,000.00




What year(s)?

new facility in Nevada?

If Yes * , continue below:

buying an owner occupied facility in Nevada?


Part 3. Do you plan on building or buying a



2

Overtime Merit increases Tuition assistance Bonus

PTO / Sick / Vacation COLA adjustments Retirement Plan / Profit Sharing / 401(k) Other:

No

Medical Vision Dental

Qualified after (check one):

Upon employment Three months after hire date Six months after hire date Other:

Health Insurance Costs: Percentage of health insurance coverage by (min 65%):

Cost of health insurance for company (annual amount per employee): Company: 79%

Health Plan annual out-of-pocket maximum (individual): Employee: 21%

New Operations / Start Up

Average hourly wage of these new employees:

end of the first eighth quarter of expanded operations?:

$2,072,500

Is the equipment purchase for replacement

of existing equipment? No

How many FTE employees prior to expansion?:

25

4,000.00$

Optional Dependant, HSA & FSA

Average hourly wage of these new employees:

1st of the month after hire date

Is health insurance for employees and an option for dependents offered?: Yes (copy of benefit plan must be attached)

* 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.

(Must attach the most recent assessment from the County Assessor's Office.)

3,111.12$

Package includes (check all that apply):

Section 9 - Employee Health Insurance Benefit Program

Average hourly wage of these existing employees:

Land:

Building Costs (if building / making improvements):

$0

Expansions

$2,069,123Current assessed value of personal property in NV:

How much capital investment is planned? (Breakout below):

$2,772,500

Equipment Cost:

Total:

How many full-time equivalent (FTE*) employees will be created by the

Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both.)

How many full-time equivalent (FTE*) employees will be created by the

$0 $0

Total number of employees after expansion:

$45.28

813

OTHER COMPENSATION (Check all that apply):

BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):

$43.62

838

[SIGNATURE PAGE FOLLOWS]

Expansions

Building Purchase (if buying): Building Purchase (if buying):

end of the first eighth quarter of new operations?:

Other:

Equipment Cost:

Total:

Land:

$0

Section 7 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.)

New Operations / Start Up

Building Costs (if building / making improvements):

How much capital investment is planned? (Breakout below):

$0

$0

$700,000

$0

3

Section 10 • Certification

I, the undersigned, hereby grant to the Governor's Office of Ecooomic Development access to all pertinent and relevant records and documents of the aforementioned company. I understand this requirement is necessary to qualify and to monitor for compliance of ali statutory and regulatOf)' provisions pertaining to this application.

Being owner, member, partner, officer or employee with signatory authorization for the company, I do hereby d re that the facts herein stated are true and that all licensing and permitting requirements will be met prior to the commencement of operations. In additi n, I a d for the compan ' al counsel have reviewed the terms of the GOED Tax Abatement and Incentives Agreement, the company recognizes this agreem nt is generally n subje to change, and any material revisions have been discussed with GOED in advance of board approval.

Merrie Jeannotte Name of person authorized for signature

Director, Financial Operations Title Date

Nevada Governor's Office of Economic Development 555 E. Washington Ave., Ste 5400 · Las Vegas, Nevada 89101 ' 702.486.2700 · (Fax) 702.486.2701 • www.diversifynevada.com

4

Site Selection Factors

Company Name: County:

Section 1 - Site Selection Ratings

Availability of qualified workforce: 5 Transportation infrastructure: 4

Labor costs: 4 Transportation costs: 4

Real estate availability: 5 State and local tax structure: 4

Real estate costs: 5 State and local incentives: 4

Utility infrastructure: 4 Business permitting & regulatory structure: 4

Utility costs: 4 Access to higher education resources: 4

Aristocrat Technologies, Inc. Clark

The Abatement is critical to helping ensure the expansion of our operations in Las Vegas.

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.

Please summarize the importance of the abatement program to your decision (please include at least a paragraph summary):

5

Equipment Schedule, Detailed

The Office has determined the detailed equipment schedule as described in this application constitutes confidential proprietary information of Aristocrat Technologies, 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 Aristocrat Technologies, Inc., and is not a public record.

S(C) Evaluation of Health Plans Offered by Companies Company Name: Aristocrat Technologies, Inc.

Total Number of Full-Time Employees:

Average Hourly Wage per Employee Average Annual Wage per Employee (implied)

Annual Cost of Health Insurance per Employee Percentage of Cost Covered by:

Company Employee

Health Plan Annual Out-of-Pocket Maximum

Generalized Criteria for Essential Health Benefits (EHB)

County:

followin requirements outlined in the Affordable Care Act and US Code, includin

25

$45.28 $94,182.40

$3,111 .12

79% 21 %

$4,000

Covered employee's premium not to exceed 9.5% of annual wage 0.9%

Annual Out-of-Pocket Maximum not to exceed $6,600 (2015)

Minimum essential health benefits covered (Company offers PPO): (A) Ambulatory patient services (B) Emergency services (C) Hospitalization (D) Maternity and newborn care (E) Mental health/substance use disorder/behavioral health treatment (F) Prescription drugs (G) Rehabilitative and habilitative services and devices (H) Laboratory services (I) Preventive and well ness services and chronic disease management (J) Pediatric services, including oral and vision care

No Annual Limits on Essential Health Benefits

$4,000

o o o o o o o o o o

Clark

MMQ

I, the undersigned, hereby declare to the Governor's Office of Economic Development hat the facts herein stated are true, and that I have attached sufficient plan information highlighting where our pia reflects meeting the 65% minimum threshold for the employe paid portion of the plan for GO to indepehdentl confirm the same

Merrie Jeannotte Name of person authorized for signature

Director, Financial Operations Title Date

board summary aristocrat technologies, inc. 7230 … · aristocrat technologies, inc. is a leading...

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