Reno-Stead AirportSupplemental Information

Reno-Stead Airport (RTS) Industrial land is last large contiguous parcel located in City of Reno and Washoe County and identified as a regional jobs center by TMRPA

Industrial land use entitlements adopted in Regional Center Plan

State-of-the-art production/R&D campus consistent Airport, City and Regional priorities and goals

All infrastructure (power, water, gas, etc.) ready for 2016 IOC with ‘no risk’ path forward to meet growth requirements

Direct logistics (Rail, truck) connection to Bay Area

Deregulated gas and power can meet utility requirements at wholesale prices

Renewable energy options to meet corporate sustainability objectives

Reno MSA of over 425,000 with trained, tech savvy workforce

Bottom Line Up Front – Why Stead?

Desert Research Institute/

Reno-Stead Vicinity Map

Reno-Stead Airport is ideally located approximately ten miles northwest of downtown Reno

Reno-Stead Airport is located approximately three miles from Desert Research Institute (DRI) and five miles from University of Nevada, Reno (UNR)

Within City of Reno Regional Center Plan providing flexible zoning and streamlined development process

Downtown Reno

Reno-Stead Airport Property Boundaries

RTS encompasses approximately 5,170 acres

RTS has the advantage of vast amounts of sparsely populated land and open airspace to the north of the airport creating ideal environment for UAS/UAV testing.

Primary northern property owner is Washoe County

Primary eastern property owner is USA / BLM

UNR owns property on southern boundary

Reno-Stead Airport

Over $50 million has been invested in airport improvements over the last 10 years

Two Runways Runway 14/32 is 9,000’ x 150’ Runway 8/26 is 7,606’ x 150’

Airfield designed to commercial aircraft standards for emergency reliever use

Stead Terminal/EOC

Opened December 16, 2013

Two story, 12,000 square foot building

Emergency Operations Center

Administrative Office

Community Conference Room

Pilot’s Lounge

~1,600sf leasable space

Reno Air Racing Association

Aviation Classics FBO

Sierra Nevada Corporation

Tactical Air Support

Helitrak

2 mechanical repair companies – J and J Aircraft Repair, American Air Racing

3 flight schools – High Sierra Aviation, Aerobatic Company and Flight School, Ace Aviation

NV Army National Guard 14 rotary wing & 1 fixed wing aircraft

BLM fire base – typically 3 firefighting aircraft

230,000 sq yd of aircraft tie-down parking (38 football fields)

148 hangars

Key RTS Tenants and Features

Reno-Stead Airport

3,500 acres available for development

~700 acres – aeronautical development

~2,800 acres – non-aeronautical development

Reno Regional Center Plan – flexible Mixed Use/Industrial zoning – streamlined development

Rail spur option

Cooperative Agreement with NV Energy to extend natural gas line

Utilities (water, electric, sewer) in close proximity

Existing Foreign Trade Zone

Close proximity to workforce, DRI, UNR, TMCC, cultural and entertainment amenities, commercial airport

Stead located in a recognized Industrial/Logistics location

Reno Stead Airport

Pad ready development sites

Existing taxi lanes

Storm drain, sewer & fire suppression infrastructure to site reduce offsite construction costs

Site can accommodate a wide variety of building sizes and configurations

Ideal location for UAS/UAV Operations

Property zoned Mixed Use (MU) allowing high intensity mixed use development

Government approvals in place reducing development schedule

Existing rail adjacent to Michelin facility - Rail spur possible (developer responsible)

200’+/-

Pad-Ready Aeronautical Building Sites

Road & Rail Information

Union Pacific System Map

BNSF System Map

From Greater Reno-Tahoe your company is strategically located within 500 milesof 16% of the U.S. population. In essence you will be able to ship to 52 millionpeople in one day.

Over 65 trucking firms provide overnight delivery to more than 80% of the eleven

contiguous western states and second day delivery to the balance. In addition to providing ground delivery, FedEx and UPS provide daily air cargo

service from Reno-Tahoe International Airport to their respective hubs fordistribution to destinations around the country and around the world.

Union Pacific Railroad links 23 states, plus every major west coast and Gulf

Coast port and provides service to the east through its major gateways inChicago, St. Louis, Memphis and New Orleans. UP also operates north/southcorridors and is the only railroad to serve all six gateways to Mexico. BurlingtonNorthern Santa Fe Railroad provides access to 33,500 route miles in 28 statesand two Canadian Provinces. Inter-modal and container freight facilities areconveniently located in Sparks near Interstate 80.

State regulation of trucking allows “Triples” or three trailers per cab across much

of the West. Because California does not allow triple configurations, Renoprovides a convenient location for the assembly and disassembly of loadsheaded both East and West.

Union Pacific and Burlington Northern Santa Fe (BNSF) railroads service the

Reno metropolitan area and provide efficient rail cargo distribution.

Union Pacific Railroad is North America's premier railroad franchise, covering 23states across the western two-thirds of the United States.

BNSF also covers the western two-thirds of the United States.

State regulation of trucking allows “Triples” or three trailers per cab across much of West, with the exception of California, making Reno a convenient location for assembly/disassembly of loads headed both East and West.

Access - Reno Truck Service

Access - Reno-Tahoe International Airport

Service to the Bay Area via commercial airlines United Airlines has 5 to 6 daily flights to SFO Alaska Airlines has twice daily service to SJC Reno/Tahoe airline partners committed to expand either the

frequency or capacity to Bay Area Negotiating with new carrier based out of San Carlos Airport

for service

• 55 Minute gate‐to‐gate flight from all Bay Area airports

• Under 90 minute direct flight to LA, LV, Denver, Phoenix,  Seattle and SLC 

Air Cargo Expanding regional point of distribution for FedEx, UPS, DHL Can support the largest air cargo aircraft 70% of airfield capacity unused 100+/- acres of land planned for air cargo expansion

Foreign-Trade Zone (FTZ): Ten Cost Saving Benefits for Your Company

No U.S. customs duties on import

No U.S. customs duties on exports

Option to pay lower duty on components vs. final product

No duties on scrap/waste/damaged product

Export and return product without duty payment

Store merchandise indefinitely without duty payment

24/7 shipping with weekly (vs. per shipment) filing requirements

No duties on labor/overhead/profit

Quality control inspections eliminate duty on sub-standard goods

No duties on zone-to-zone transfers of merchandise

Nevada’s Foreign Trade Zone (FTZ)Alternative Site Framework (ASF) Advantages

Northern Nevada designated as an Alternative Site Framework (ASF) with the following benefits:

Warehousing/Distribution in 30 days

Manufacturing under Temporary/ Interim (T/IM) in 75 days (Typical process time is up to 1 year)

Equipment used for manufacturing of product is generally not duty exempt (with ASF there are possible exceptions)

Lower cost entry for companies:

Filing fee of $5,500 is waived

Free or $1600 vs. $6500 for subzone

Application preparation fee of $5,500 is waived

For a company to qualify for operation in an FTZ, it must:

Have a facility located in the United States

Import parts, materials, or components for manufacturing

Import finished goods or parts for distribution

Advantages of Operating at Reno-Stead Airport

No land loans or land acquisition costsNo Real Property TaxRare airside access Pad-ready aeronautical building sitesAviation, Mixed Use and Industrial Commercial zoning Proximity to CA customers and suppliers Road and rail infrastructure to the west coast Airport leadership has pro-development philosophy Customized incentives package

No Corporate Income TaxNo Personal Income TaxNo Franchise Tax on IncomeNo Inventory TaxNo Inheritance or Gift TaxNo Unitary TaxNo Estate TaxCompetitive Sales & Property Tax RatesMinimal Employer Payroll TaxRight-to-Work State

Advantages of Doing Business in Nevada

In addition to the minimal tax environment, the state offers programs to reduce the amount of taxes that they do impose, including sales tax abatement and deferral programs, payroll tax abatements and property tax abatements. The state also offers financial support for workforce training.

Development & Operations Advantages

Reno-Tahoe Airport Authority (RTAA) Reno-Tahoe International Airport Reno-Stead Airport

Generates $2B in annual economic impact for the region

Together, both airports bring travelers and goods to and from region’s casinos, ski resorts and businesses

passenger air service cargo air service general aviation

Who We AreReno-Tahoe Airport Authority

Financially self-sufficient

Operate on fees/rent collected from airport tenants (airlines, rental cars, parking, concessions, land leases)

70% of operating revenues are generated by non-airline sources

Strategic Priorities

Air Service Development

Air Cargo Development

General Aviation Optimization

Economic Development

Positive Environment/Customer Service

RTAA Board of Trustees

Jerry Hall

Adam Mayberry Chairman

Rick MurdockSecretary

Robert Larkin

Andy Wirth Kosta Arger, M.D. Treasurer

William "Bill" Eck Steve Katzmann

Nat CarasaliVice Chairman

RTAA Executive Management Team

Dean Schultz, A.A.E.Executive Vice President/COO

Richard GormanChief Financial Officer (CFO)

Tina IftigerVice President of Airport Economic Development

Mike ScottVice President of Operations and Public Safety

Michael DikunManager of Reno-Stead Airport

Brian KulpinVice President of Marketing and Public Affairs

Brian MooreDirector of Human Resources

Marty MuellerDirector of Technology & Information Systems

David PittmanDirector of Facilities & Maintenance

Robert VesterChief of Airport Police

Marily M. Mora, A.A.E.President/CEO