Scottsdale Advantage Interactive

Photo By: Judy Dugan

A D V A N T A G E

S C O T T S D A L E

O P P O R T U N I T Y

I C O N I CPhoto By: Judy Dugan

SCOTTSDALE RANKINGS�� 21% of Arizona Corporate Headquarters are located in Scottsdale

�� Top 100 Best Communities for Young People - America’s Promise Alliance

�� No. 2 High School in the Nation - U.S. News & World Report

�� Top 10 Tech-Savvy City - Center for Digital Government

�� Named Google ECity for Strongest Online Business City in the State - Google

�� No. 6 Best Run City in the U.S. - 24/7 Wall St.

�� No. 6 Safest City in the U.S. - Law Street Media

�� Best City to Raise Children - Livability.com

�� Top 25 City in the U.S. for Arts Destinations - American/Style Magazine

ARIZONA POWER RANKINGS 1st- IN THE NATION IN PROJECTED JOB GROWTH

- IN THE NATION FOR WORKFORCE

Top 10 STATE IN:- ENTREPRENEURIAL ACTIVITY

- INFRASTRUCTURE

- BUSINESS CLIMATE

- HIGHER EDUCATION

- DEGREE OUTPUT

Sources: Forbes; US Chamber of Commerce 2013 Enterprising States report, CNBC Rankings 2014

O P P O R T U N I T Y

Q U A L I T Y

Things You Should Know �� Location provides low catastrophic risk, and ranks among the top 10 U.S. cities for lowest disaster risk

�� Exceptional cost of living in comparison to other major cities

�� More than 300 days of sunshine annually

�� 125 golf courses in the immediate area

�� More than 600 restaurants, 70 hotels and 9,300 rooms

�� Flourishing arts & culture scene: more than 100 art galleries

�� McDowell Sonoran Preserve: 30,000 contiguous acres with almost 130 miles of trails.

�� 100+ years of planning & investments in region’s water supply system

�� A 336-mile system brings 1.5 million acre-feet of water per year to the area via the Central Arizona Project

�� Population projected to grow 50 percent between 1995 & 2025, but water demands to grow ONLY 25 percent

�� One of the Lowest Transaction Privilege Tax in the State

�� Top 5 Regional Fiber Deployments in the U.S.

�� One of top 5 regional fiber optic deployments in US with more than 156,000 route miles of network capacity

Photo By: Maureen Isree

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SCOTTSDALE ADVANTAGEThe City of Scottsdale is a premier Arizona community with a distinguished history of economic vitality and prosperity. It is a place where people from around the globe flock to be a part of “the vibe” that is Scottsdale. Scottsdale is Arizona’s mecca for corporate business professionals and new technology startups. It is a business-friendly community where stakeholders create environments which generate some of the world’s most successful companies and entrepreneurs. Scottsdale attracts industry and people who are seeking a higher quality of life and a superior corporate climate. Business and people who locate in Scottsdale enjoy:

�� Higher quality of life with a lower cost of living in comparison to other major urban centers across the U.S.

�� Close proximity and accessibility to major domestic and international markets via Phoenix Sky Harbor International Airport and Scottsdale Municipal Airport

�� World-class research and development opportunities with a highly educated and well-trained workforce

With an impressive number of accolades, Scottsdale continues to be recognized nationally and internationally for its beautiful landscape, vast retail offerings, attainable quality of life and community safety.

The city offers a mix of lifestyle options for all income levels and living preference, such as modern urban living, high-end estates and family neighborhoods. Scottsdale is an environmentally conscious community with a long history of open space preservation, environmentally and financially sustainable municipal operations and facilities.

Scottsdale’s Appaloosa Library was named one of 10 Landmark Libraries in the United States, Sunset Magazine named Scottsdale one of the West’s best places to live, and America’s Promise Alliance named it as one of the 100 Best Communities for Young People, for five consecutive years.

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Through its economic development investments and programs, the City of Scottsdale retains, grows and attracts targeted sources of wealth generation to enhance the community’s tax base and quality of life, preserve the natural environment and foster prosperity for all citizens.

Scottsdale, one of Arizona’s 10 largest cities is a premier visitor location as well as a tremendous place to live and do business. Scottsdale is home to 125 golf courses, 220 tennis courts, dozens of parks and hundreds of miles of bike paths and hiking trails, and a Downtown with more than 20 hotels, 90 restaurants, 320 retail shops and 80 art galleries. Scottsdale Airport and its surrounding Commerce Airpark area is home to nearly 2,500 businesses with more than 48,000 jobs. The high-tech innovation center SkySong, located just a few miles from Downtown, is designed to help companies grow through a unique partnership with Arizona State University. Scottsdale was recently named one of the Top 100 Best Places to Live in the United States, and was honored as Arizona’s 2013 “eCity” by Google.

E L E V A T I N G E X C E L L E N C E , P R O M O T I N G P R O S P E R I T Y

Table of Contents

Scottsdale Advantage 2

Market Access 3

Demographics 5

Talent 7

Education 8

Taxes & Infrastructure 9

Comparable Markets 10

Scottsdale Map 11

Employment Centers 13

Target Industries 17

Assistance Programs 23

Local Business Resources 24

Cover Photos from Top Left to Right By: Benjamin Baukol Michelle GeeMaureen IsreeHoward MyersMaureen IsreeMaureen Isree

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At Scottsdale Mayo Clinic we leverage Scottsdale as a destination when we are recruiting a top scientist and researchers- its an added draw to be in the community of Scottsdale.

— Wyatt W. Decker, M.D., Vice President, CEO, Mayo Clinic

Scottsdale Airport: With 146,432 operations in 2012, Scottsdale Airport is one of the busiest single runway facilities in the nation. U.S. Customs “US-VISIT” is available seven days per week and allows visitors from all over the world to visit Scottsdale.

Phoenix Sky Harbor International Airport: Sky Harbor is one of the 10 busiest airports in the United States. More than 100,000 passengers, 1,200 aircraft, and 600 tons of cargo pass through Sky Harbor each day. The airport is served by 15 major airlines with daily service to 80 domestic and 20 international destinations. Most employment corridors in Scottsdale are located within a short 20 minute drive to/from Phoenix Sky Harbor International Airport. Additionally, Phoenix Sky Harbor Airport is home to two major national airline hubs: American Airlines and Southwest Airlines.

MARKET ACCESS Within a 15-20 minute commute of surrounding cities, Scottsdale is the perfect place to raise a family, invest and live an active lifestyle. The City of Scottsdale provides significant advantages due to its location in the Phoenix Metro area.

Running parallel to the Loop 101 with access to Interstate 10, Scottsdale is a short drive on the U.S. 60 or the Loop 202 to many of the region’s work centers and entertainment venues. Scottsdale has established and reliable water, electricity and telecommunication service providers which supply the infrastructure necessary to do business.

Domestic and International Air TravelScottsdale offers exceptional access from several airport locations, most notably Phoenix Sky Harbor International Airport or Scottsdale Airport.

FLIGHT TIME DRIVE TIME

Los Angeles CA5-1/2 hrs

San Diego CA5-1/2 hrs

Las Vegas NV4-1/2 hrs

METRO PHOENIX

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Chandler

to San Diego

to Los Angeles

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Interstate Connectivity

DEMOGRAPHICS

Historical Unemployment Rates

Area 2009 2010 2011 2012 2013 May 2014

Arizona 9.8 10.4 9.4 8.3 8.0 6.6 (p)

Scottsdale 6.8 7.2 6.8 5.8 5.6 4.5 (p)

Mesa 8.3 8.8 8.3 7.1 6.6 5.4 (p)

Chandler 7.0 7.4 7.1 6.0 5.7 4.8 (p)

Source: U.S. Census 2012

Source: Bureau of Labor Statistics

Metro Cost of Living Comparison

Historical Unemployment Rates

Scottsdale is the 6th MostPopulous Municipality in Arizona

The City of Scottsdale is the 6th most populous municipality in Arizona.

Tempe, AZ

Surprise, AZ

Scottsdale, AZ

Phoenix, AZ

Peoria, AZ

Mesa, AZ

Goodyear, AZ

Glendale, AZ

Gilbert, AZ

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Source: Arizona Department of Economic Security Population Estimates, 2013.

The City of Scottsdale Percentage Population By Age

0

5 Percent

10 Percent

15 Percent

20 Percent

75 - 84

65 - 74

55 - 64

45 - 54

25 - 34

20 - 24

15 - 19

10 - 14

5 - 9

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4.9%

5.2%

4.8%

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12.2%

15%

15.6%

35 - 44 12.3%

11.5%

6.5%

Scottsdale Population by Age

Nearly 30% of City’s Population is between 20-34.Scottsdale Population Demographics

Median Age 46

Median Household Income$76,124

(AZ: $50,256)

Average Household Income $96,048

Per Capita Income $44,967

Average Household Size 2.13

Owner Occupied Households 68.10%

Median Disposable Income by Household $62,031

Average Disposable Income by Household $81,704

Median Home Value $261,652

Total Businesses 24,422

Total Employees in Scottsdale Businesses 143,515

Source: City of Scottsdale Economic Development, ESRI Business Analyst 2014

Source: Arizona Department of Economic Security Population Estimates 2013

Source: Arizona Department of Economic Security Population Estimates 2013Source: City of Scottsdale Economic

Development 2014

Scottsdale Population Demographics

Major Employers in Scottsdale

Scottsdale Population by AgeNearly 30% of City’s Population is Between 20-34.

Scottsdale is One of the Top 10Most Populous Municipalities in Arizona

Mayo Clinic/Arizona State University Medical School The Mayo Clinic/Arizona State University Medical School is a collaboration intended to advance medical research and education nationally and internationally. This includes the development of joint education programs, creating a joint seed-fund program to pursue cutting edge research/technology and shared collaborative research in bioinformatics and bioengineering.

Mayo Clinic Research Facility Located on the Scottsdale Mayo Clinic Campus, research teams in Arizona actively investigate complex diseases and conditions with a goal of improving care for patients. As they search for answers, scientists and physicians work side by side, sharing ideas and results. Promising discoveries are moved quickly from the laboratory to clinical trials, with proven new therapies introduced to clinical practice.

University of Arizona Medical School Since 2007, medical students interested in the University of Arizona College of Medicine have been fortunate enough to choose between two outstanding campuses: The University of Arizona College of Medicine Tucson, which is the cornerstone of the Arizona Health Sciences Center at the University of Arizona; and the University of Arizona College of Medicine Phoenix, located at the nexus of the downtown Phoenix Biomedical Campus.

University of Phoenix The University of Phoenix ranks as one of the top online colleges in the country, and was ranked fifth among online bachelor’s programs in terms of student engagement and assessment as well as the top 40 programs for faculty credentials and training.

DeVry UniversityThe Keller Graduate School of Management is one of the largest management schools in the United States, with more than 50,000 alumni coast to coast. It is known for its convenience and flexible programs, allowing students to balance work, personal priorities and graduate school.

K-12 EducationScottsdale Unified School District (SUSD) covers more than 112 square miles and serves most of the Town of Paradise Valley and parts of the cities of Tempe and Phoenix, in addition to most of Scottsdale. SUSD offers five comprehensive high schools, one online high school with Scottsdale Online Learning, six middle schools, three K-8 schools, 16 elementary schools and three early childhood campuses.

Basis Charter School in Scottsdale was ranked number two out of more than 19,400 public high schools for “Best High Schools, National Rankings” by U.S. News & World Report Sept. 2014.

Higher Education

Maricopa County Community College DistrictMCCCD serves all of Maricopa County and Metro Phoenix, and is one of the largest community college districts in the nation. It serves more than 200,000 students annually through its 10 accredited colleges, two skill centers and additional education sites. Scottsdale Community College is among one of these colleges. It opened its doors in 1970 with enrollment growing to 10,000 students per semester in 2013.

Arizona State UniversityArizona State University is located within a 15-minute commute time from downtown Scottsdale. This tier one research university offers a curiculum with more than 300 majors, over 100 graduate programs and professional/doctoral programs. It’s W.P. Carey School of Business is ranked in the top 25 of Global Business Schools and student enrollment annually surpasses 73,000.

Scottsdale - Arizona State University SkySong Innovation Center SkySong is a 1.2 million square foot mixed-use project featuring Class A commercial office space, Arizona State University’s SkySong incubator and the exceptional new SkySong Apartments. Skysong is home to both startups and Fortune 500 companies and is coveted as one of the most dynamic centers for innovation, technology and economic expansion in the western United States.

EDUCATION

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TALENT

Scottsdale has historically been a net importer of daytime workforce with a distinguished record of having one of the highest job-housing ratios in the state. Scottsdale’s targeted employment sectors represent:

� Business Services

� Information, Communication and Technology

� Bio-Life Sciences and Healthcare

� Tourism and Hospitality

� Higher Education

� Retail

The broad range of industries in Scottsdale provides the foundation for its vibrant economy. Major employers include Scottsdale Healthcare, Mayo Clinic, General Dynamics C4 Systems, CVS/Caremark, Go Daddy Group, Vanguard and Scottsdale Insurance.

The industry clusters that exist in Scottsdale have maintained and thrived even in the greatest economic recession since the Great Depression because of the willingness and “Can Do” attitude that exists in Scottsdale. These strong industry partners work together to create success which contributes to their bottom line. Scottsdale is a city that leads the way

in demonstrating a pioneering spirit which fosters collaboration and creativity. It’s because of this spirit that Scottsdale is one of the west’s most developable cities.

Scottsdale has worked to unite education, workforce, and economic development to support these industry clusters. This effort has helped to accelerate employment growth and provides Scottsdale companies with high-impact and high-multiplier occupations which builds strong companies and proven sustainable economic foundations.

Description 2013 Jobs Scottsdale

2014 Average Earnings Per Job

Scottsdale Metro Phoenix Arizona U.S.

Health Care and Social Assistance 25,194 $64,192 $59,304 $57,089 $54,685

Accommodation and Food Services 20,128 $24,382 $22,062 $21,129 $21,138

Retail Trade 18,665 $37,064 $36,146 $34,607 $33,611

Professional, Scientific and Technical Services

15,524 $85,243 $87,807 $84,719 $97,215

Administrative and Support and Waste Management and Remediation Services

14,514 $44,640 $40,052 $39,037 $41,373

Finance and Insurance 11,266 $88,288 $81,759 $80,146 $108,280

Wholesale Trade 8,052 $104,643 $82,825 $80,242 $80,038

Construction 7,159 $62,913 $59,698 $56,485 $63,580

Manufacturing 6,748 $95,431 $82,851 $82,981 $76,407

Government 5,689 $81,065 $69,389 $67,868 $72,876

Arizona Ranked 13th in the U.S. Category 2014 Rank

Cost of Doing Business 28

Workforce 2

Quality of Life 27

Infrastructure & Transportation 8

Economy 15

Technology & Innovation 19

Business Friendliness 16

Cost of Living 27

Access to Capital 5

Overall 13 Source: 2014 CNBC’s America’s Top States For Business

Source: EMSI 2014

City of Scottsdale Water and Sewer Rates

Category O & M User Charge per 1,000 gallons

Capital & other charges per 1,000 gallons

Total sewer service charge per 1,000 gallons

Single-family residential $1.15 $1.48 $2.63

Multi-family residential $1.17 $1.50 $2.67

Commercial (w/out dining) $1.05 $1.65 $2.70

COMPARABLE MARKET REVIEW

Metro Cost Comparison

Scottsdale San Diego,

CABoulder,

CO

North-Port-Bradenton-

Sarasota, FLAustin, TX

San Francisco,

CA

Salt Lake City, UT

Population 222,213 3,177,063 305,318 720,042 1,834,303 4,455,560 1,161,715

Median Age 44.4 34.9 35.7 50.3 33.1 38.5 31.4

GDP (in millions of current dollars)

$23,600 $177,410 $20,332 $24,493 $98,677 $360,395 $72,072

Employment 121,350 1,258,800 159,440 239,850 823,200 1,977,800 641,000

Unemployment Rate 4.8 6.9 4.7 6.2 4.7 6 3.5

Annual Mean Wage $56,800 $50,770 $54,770 $39,800 $47,080 $62,680 $44,730

Annual Median Wage $43,119 $38,376 $41,371 $30,118 $35,610 $48,360 $34,965

Workers Compensation 1.61 2.92 1.42 1.82 1.6 2.92 1.35

Unemployment Insurance (Cost per Employee)

$140 $238 $170 $216 $243 $238 $340

Right to Work State Yes No No Yes Yes No Yes

Unionization Rate (% Covered)

N/A 15.4 9.9 9.9 4.1 16.4 4.7

Total Office Lease Rate $22.06 $26.14 $28.95 $15.81 $27.94 $42.29 $17.57

Total Industrial Lease Rate $10.40 $10.18 $6.92 $4.97 $7.32 $14.40 $4.70

Median Home Prices $369,750 $476,800 $442,800 $207,800 $220,600 $682,400 $221,100

Industrial Electric Rates (State Average) (cents/kwh)

6.22 9.9 6.83 7.6 5.88 9.9 5.36

Office Electric Rates (State Average) (cents/kwh)

9.24 12.76 9.59 9.54 7.97 12.76 7.74

Industrial Natural Gas Rates (State Average) ($/thousand ft3)

6.32 5.77 5.76 6.96 3.93 5.77 5.32

Office Natural Gas Rates (State Average) ($/thousand ft3)

8.43 7.05 7.26 10.41 7.24 7.05 7.13

Personal Income Tax Rate (Highest Bracket)

4.54% 12.30% 4.63% None None 12.30% 5.00%

Corporate Income Tax Rate 6.97% 8.84% 4.63% 5.50% 1.00% 8.84% 5.00%

Effective Property Tax Rate ($25M property)

1.85% 0.92% 2.02% 1.75% 2.32% 0.97% 1.25%

Sales Tax Rate 7.95% 7.75% 4.80% 7.00% 8.25% 8.50% 6.85%

Source: Greater Phoenix Economic Council 2014

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Recent job growth in Scottsdale and the Phoenix Metro area can be attributed to a number of competitive factors. These include lower than average workers’ compensation and unemployment costs, declining corporate tax rates, reasonable wage rates and lower utility costs.

UTILITY RATESThe City of Scottsdale is a water and wastewater provider, while also maintaining close partnerships with private electricity providers to ensure a seamless development process and exceptional business services. In addition, due to mild climate and geographic location, natural catastrophic occurrences in Arizona are minimal.

BROADBANDThe City of Scottsdale is well equipped with broadband infrastructure and 99.6 percent of the population has access to download speeds greater than 100 Mbps compared to the national average 56.7 percent. Other notable technology percentages include DSL connection at 99.5 percent, cable at 99.6 percent and wireless connection of 100 percent.

Scottsdale recently captured the 2013 eCity Award from Google, an honor that recognizes the strongest online business community in each state.

TRANSACTION PRIVILEGE (SALES) TAX RATEThe City of Scottsdale imposes a 1.65 percent privilege “sales” tax. The combined privilege “sales” tax rate for the City of Scottsdale, State of Arizona and Maricopa County is 7.95 percent for most taxable activities.

USE TAX RATEThe City of Scottsdale imposes a 1.45 percent use tax on items stored or used in the city, which have been purchased or rented without a privilege or sales tax equal to the Scottsdale use tax rate.

CITY OF SCOTTSDALE WATER AND SEWER RATESWater rates for single family residential range from Tier 1-5 and the rate per 1,000 gallon is $1.65 - $5.00. For multi-family, commercial, industrial and non-residential water rates range from Tier 1-4 and the rate per 1,000 gallons is $1.65-$3.70.

TAXES & INFRASTRUCTURE

State Utility Rate Comparison

AZ CA CO NV NM TX UT IL MD

Commercial (500kw, 180,000 kwh, 50 percent load factor)

8.76 12.91 8.14 8.25 10.08 5.50 7.62 8.39 10.84

Industrial (1,000kw, 650,000 kwh, 90 percent load factor)

6.98 9.61 5.62 7.09 8.22 5.50 5.72 7.68 10.62

Sewer Rates (source: City of Scottsdale Revised City Code, Section 49-141) Effective July 1, 2014 Source: Sewer Rates (City of Scottsdale Revised City Code, Section 49-141) Effective July 1, 2014

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The McDowell Road Corridor offers easy access to nearby residential and commercial centers, freeways, Phoenix Sky Harbor Airport, regional parks and shopping. Located along the McDowell Road Corridor is SkySong - the Arizona State University Scottsdale Innovation Center, which is home to a global business community that links technology, research, education and entrepreneurship to position Arizona State University and Greater Phoenix as global leaders in the knowledge economy. This 42 acre mixed use development will eventually house 1.2 million square feet of commercial space at completion, with on-site luxury residential apartments and retail/restaurant opportunities.

Downtown Scottsdale is a growing hub for technology and healthcare companies such as Yelp, McKesson Pharmaceuticals, ZocDoc, ZIVELO and Weebly. Within the area, increased density is permitted to create the vibrancy to sustain a downtown city center.

Technology companies and young professionals are attracted to Downtown Scottsdale because it provides a mix of specialty retail, art galleries, dining to suit every taste, legendary nightlife, and public art and cultural attractions with broad appeal. Also, these individuals and companies find that they can enjoy a higher standard of living for a fraction of the cost in other metropolitan areas in the U.S.

While Downtown Scottsdale is becoming known for its growing technology employment sector, citizens and people from around the globe can enjoy one of the most successful shopping centers in the southwest United States—Scottsdale Fashion Square. Considered the “gold standard” for super-regional, high end enclosed shopping venues, Scottsdale Fashion Square Mall includes 1.8 million square feet of retail offerings anchored by Nordstrom, Neiman Marcus, Dillard’s, Macy’s and Barney’s of New York.

DOWNTOWN SCOTTSDALE�� Downtown Scottsdale annual retail sales average nearly $295 million per year

�� 83 percent of overnight visitors to Scottsdale report visiting Downtown

�� Since 2010 more than $400 million of private investment has occurred involving residential, retail, hotel and office development

�� There are more than 3,000 new luxury multi-family residential units recently completed or in final planning within a 3 mile radius 98

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McDowell Road Corridor

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ASU SKYSONG :PAPAGO PLAZA

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$200M INVESTED IN MCDOWELL ROAD CORRIDOR SINCE 2009

Source: City of Scottsdale Records

WORKFORCE SNAPSHOT Total Jobs: 13,266Average Earnings: $72,197Median Age: 32.8(Within a 20 minute drive radius)

SOURCE: ESRI Business Analyst and EMSI June 2014

Photo By: Janet Wunnicke

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31.1 MEDIAN AGE OF RESIDENTS LOCATED IN DOWNTOWN SCOTTSDALE

Source: ESRI

WORKFORCE SNAPSHOTTotal Jobs: 40,715Average Earnings: $48,781Median Age: 31.1(Within a 20 minute drive radius)

SOURCE: ESRI Business Analyst and EMSI June 2014

COMPANIES LOCATED AT ASU SKYSONG :

��ΠArizona Security and Defense

��ΠArizona Technology Enterprises

��ΠATOMdesign

��ΠAVD Healthcare

��ΠCentury Link Communications

��ΠGlobal Patent Solutions

��ΠPayPal

��ΠPyxl

��ΠRecruiting.com

��ΠTheranos

��ΠTicketmaster

��ΠYodle

��ΠWebFilings

Scottsdale is home to companies and professionals dedicated to conducting research, clinical trials and treating numerous diseases that affect the human condition. People from around the globe choose Scottsdale’s Cure Corridor because of its geographic location and high quality workforce. These companies include Mayo Clinic, Scottsdale Healthcare, Translational Drug Development (TD2) and Translational Genomics Research Institute (TGen) to name a few.

From education and research to clinical trials and patient care delivery, Scottsdale is home to an amazing array of business assets in the bio-life sciences sector.

THE CURE CORRIDOR�� Scottsdale Airpark major employment sectors: - Retail (14.6%) - Healthcare (11.9%) - Professional, scientific and technical services (10.9%)

The Scottsdale Airpark is one of the largest employment centers in Arizona, boasting over 48,000 jobs in more than 2,500 businesses. Strategically located along the Loop 101 corridor, it is served by two express commuter bus routes allowing access to employers from all regions of the Phoenix Metro area. Approximately 25 minutes from Phoenix Sky Harbor International Airport, the Airpark reaches a workforce of nearly half a million people within a 30-minute commute.

�� Covers more than 2.3 million square feet of development

�� Home to some of the most prestigious companies in the western United States: Go Daddy, Taser, JDA Software, Nautilus Insurance, Quicken Loans, CVS Caremark and Vanguard

�� Airpark planning regulations (Planned Airpark Core Development) provide opportunities for additional building height and density

�� Scottsdale Airport generates about $3 billion per year in economic spinoff activity

SCOTTSDALE AIRPARK

Page 15 Page 16

Scottsdale is an exciting environment, a growing and ever-changing community. It’s high energy. It’s also a great recruitment area. — Chris Spinella, CEO, Apriva (source: Phœnix Business Journal)

Shea Boulevard / Cure Corridor

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From education and research, to clinical trials and patient care delivery

SCOTTSDALE HEALTHCARE – SHEA MEDICAL CENTER

SCOTTSDALE MEDICAL IMAGING

TD2 (Translational Drug

Development)

MAYO CLINIC

WEST PHARMACEUTICAL SERVICES -THE TECH GROUP

13% OF PHOENIX - METRO AREA BIO-LIFE SCIENCES EMPLOYMENT IS IN SCOTTSDALE AT OR NEAR THE CURE CORRIDOR

Source: EMSI

WORKFORCE SNAPSHOT The average wage in Scottsdale in the bio-life science sector is $60,143

21,604 jobs in bio-life sciencesmarket sector in Scottsdale

SOURCE: ESRI Business Analyst June 2014

Scottsdale Airpark Corridor

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One of the largest employment centers in Arizona anchored by one of the most premier

private jet airports in the nation.

PINNACLE AVIATION

FENDER MUSICAL INSTRUMENTS CORP.

GO DADDY

SCOTTSDALE QUARTER

FAIRMONT SCOTTSDALE

PRINCESS

WORKFORCE SNAPSHOTTotal Jobs: 48,719 Average Earnings: $56,938Median Age: 40.1 (Within a 20 minute drive radius)

SOURCE: ESRI Business Analyst and EMSI June 2014

Photo By: James L. Christy

Scottsdale is home to nearly 25 percent of corporate headquarters in the Phoenix Metropolitan Service Area (MSA). Companies choose Scottsdale because it leads our peers nationally and internationally in using technology to modernize government. Companies such as GoDaddy and Google have recognized the value Scottsdale has placed in this area which has led to Scottsdale being named a Google ECity and the home to GoDaddy’s corporate headquarters.

High technology corporations are located in Scottsdale because of the elevated standard set for deploying high-speed broadband infrastructure. These standards make Scottsdale a global leader and hub for technology innovation. Scottsdale is a test bed for new technology and has a developed process for encouraging and managing these applications. It is through this collaboration with our existing industry partners that Scottsdale is revered as one of the crown jewels of the southwest in advanced business services.

ADVANTAGE: SCOTTSDALE ADVANCED BUSINESS SERVICES

��ΠThree major insurance companies with national headquarters located in Scottsdale

��ΠLow relative cost of labor with high number of executive, administrative and managerial workers

��ΠDirect flight access for clients and corporate executives via the Scottsdale Airport, with seven day per week on-site U.S. Customs service

��ΠAvailable corporate Class A office space

ADVANCED BUSINESS SERVICES BIO-LIFE SCIENCES

ADVANTAGE:SCOTTSDALE

BIO-LIFE SCIENCES

��ΠStrong geographic proximity to cluster industries, and easy access to key west coast markets

��ΠVenture capital investments in Scottsdale is the second largest in the State of Arizona

��ΠPartnerships with higher educational institutions

��ΠOne-fifth of local workforce employed in a direct or transferrable field

Healthcare industry in Scottsdale by the numbers:

$2.5B in direct economic output

$3.5B in indirect output

Average salary of $52,259Source: Greater Phoenix Economic Council 2013

Health and wellness are an integral part of Scottsdale’s community identity – and the accomplishments of the medical and health care visionaries working in Scottsdale have the potential to improve and extend quality of life for millions of people.

A strong local health care and bioscience industry cluster in Scottsdale is the result of continued success in collaboration between local health care providers and innovative research and biotech companies. The target industries in this cluster include pharmaceuticals, other biological products, medical laboratories and biotech research. Geographic clustering is particularly important for these industries to support innovation and to connect those conducting clinical trials with health care providers. This target industry is currently located along Shea Boulevard, referred to as the Cure Corridor.

Page 17

“Having been a valley resident for nearly 30 years with short breaks to live on both the East and West coasts, I can’t think of a better place to start a tech business than Arizona. We have a unique mix of the right environment, talent, educational institutions and quality of life that is unmatched anywhere in the U.S.”

— Hamid Shojaee, CEO, Axosoft, LLC

Top 10TECH-SAVY CITY

Source: Center for Digital Government

Average earnings per job in this

sector in the City of Scottsdale is

$79,997 compared to the

national average of $110,250

Source: EconomicModeling.org, December 2013

Page 18

“The Scottsdale Healthcare Shea Medical Center campus is becoming the epicenter of research activity across the Scottsdale Lincoln Health Network. From our outstanding community physicians to nationally-known physician scientists, you don’t need to travel elsewhere for the latest advances in medicine.”

— Tom Sadvary, CEO, Scottsdale Lincoln Health Network

13% OF PHOENIX - METRO AREA BIO-LIFE SCIENCES EMPLOYMENT IS LOCATED IN SCOTTSDALE

Source: EMSI

It’s important to know Vanguard has been here for more than 17 years now and has a strong commitment to the area. With the additional building opening here, it will hold upward of 700 people. Our presence in Scottsdale continues to grow.

— Deborah Akinsipe, Vanguard’s Director of Human Resources in Arizona

According to Moody’s Analytics, Arizona is expected to have the nation's fastest job growth at 3% annually from 2012-2017. TechAmerica Foundation's 2013 Cyberstates Report notes that 55 of every 1,000 private sector workers in Arizona are employed by high-tech firms.

Scottsdale is becoming known as an emerging center for technology development. It is home to an environment that combines successful entrepreneurs, a highly talented workforce and a burgeoning high-tech industry cluster. Being one of the ten largest cities in Arizona, Scottsdale ranks second in the state for the amount of venture capital its companies are able to attract, according to research conducted by the Greater Phoenix Economic Council. It is also home to a number of technology firms ranking in the Inc. 500. Arizona State University’s 42 acre SkySong Innovation Center presence in Scottsdale has advanced the emergence of technology companies in the city. SkySong, one of the most successful accelerators in the United States has launched more than 100 companies since its founding in 2008.

Scottsdale has a strong base of highly skilled software engineers, programmers and systems analysts to support this industry.

INFORMATION, COMMUNICATION AND TECHNOLOGY A fundamental catalyst of Arizona’s economy has been entrepreneurship

and small business. Today, entrepreneurs are recognized as important drivers of economic and social advancement, and new and young enterprises are seen as vitally important sources of innovation, job creation and productivity growth.

The National Venture Capital Association reports that Arizona ranked 17th in terms of total venture capital dollars invested ($212 million), and 24th in terms of number of deals (15) in 2012. In 2011, Kauffman Foundation’s Index of Entrepreneurial Activity reported that Arizona had the highest rate of innovators starting new businesses in the U.S. That year, 520 of every 100,000 Arizonans between the ages of 18 to 64 in the state created a business, compared to the national average of 320. In Scottsdale, an increasing number of startup and young enterprises have been concentrating in the community in recent years.

EUREKA LOFT:Recognizing the need to promote and encourage entrepreneurship, the City of Scottsdale and the Scottsdale Public Library have partnered with Arizona State University to create the first collaborative workspace in the Alexandria Co-Working Network, a new Arizona State University initiative that brings together inventors, problem solvers, entrepreneurs and small businesses in community libraries across the United States. The Eureka Loft space can be used by innovators and entrepreneurs needing collaborative space on a daily basis to work on their ideas while also getting mentorship, advice and access to some “pracademic” classes both online and in the library.

ENTREPRENEURSHIP

Page 19 Page 20

ADVANTAGE: SCOTTSDALE INFORMATION, COMMUNICATION AND TECHNOLOGY

��ΠImpressive visitor location for clients and business transactions

��ΠLocation provides low catastrophic risk, and ranks among the top 10 US cities for lowest disaster risk

��ΠAvailable corporate office space

��Î Low workman’s compensation and unemployment insurance costs

“We’re extremely excited to open our new customer operations headquarters in Scottsdale. There is an amazing pool of quality talent in the area.”

— David Rusenko, Co-founder of Weebly

ECITY GOOGLE HONOR FOR STRONGEST ONLINE BUSINESS CITY IN THE STATE

Source: Google

ADVANTAGE: SCOTTSDALE

ENTREPRENEURSHIP

��ΠScottsdale is home to more than 9,800 companies that generate $5 million in annual revenue founded since 2010

��Î In 2013, the University Business Incubator Index named Arizona State University’s Entrepreneurship and Innovation Group one of the world’s top university business incubators

��ΠThe Scottsdale Civic Center Library partnered with Arizona State University and the Alexandria Network to create the first collaborative workspace for entrepreneurs in 2013

OVER 1,000EMPLOYEES AT Arizona State University SKYSONG

Source: Arizona State University Economic Affairs 2014

The state’s renowned universities and community colleges are graduating highly qualified students in high-demand disciplines. Arizona State University, the nation’s largest single-campus public university is internationally recognized among the world’s best.

The City of Scottsdale is home to Arizona State University’s SkySong Innovation Center. This development is home to a global business community that links technology, research, education and entrepreneurship to position Arizona State University and Greater Phoenix as global leaders in the knowledge economy.

Greater Phoenix is home to the Maricopa Community College District which is America’s largest community college system. Within this system, Scottsdale Community College and Maricopa Corporate College serve students of all ages. Maricopa Corporate College was established in 2013 to address the needs of the local workforce and provide market-relevant, customized training solutions and educational programs for employers. It engages employers and industry associations to assess and deliver custom workforce solutions.

These schools not only attract large numbers of college students, they have major science and technology research programs which contribute to the high number of engineers in the state’s skilled workforce.

HIGHER EDUCATION

ADVANTAGE: SCOTTSDALE HIGHER EDUCATION

��Î Arizona State University – Graduates 2,600 business students per year

��Î WP Carey School of Business (Arizona State University) – Ranked in top 25 in Global Business Schools

��Î Mayo Clinic/Arizona State University Medical School – Highly ranked medical school at Mayo Clinic Hospital

��Î Scottsdale Community College – Nationally recognized academics, seamless university transfer

The National Science Foundation ranked Arizona fourth in the United States regarding bachelor’s degrees conferred per 1,000 students age 18-24 and eighth in science and engineering doctorates conferred per 1,000 employed holders of science and engineering doctoral degrees.

Scottsdale is an internationally recognized tourism destination community, widely known for its golf courses, recreational amenities, climate and high-end resorts. An emerging Downtown with its urban “boutique” hotels, nightlife scene, numerous events and attractions, dining opportunities and art galleries complements the Old Town western heritage and beautiful open spaces of the McDowell Sonoran Preserve to provide visitors a unique and exciting destination for travel.

Bed tax revenues contribute tremendously to the city’s ability to continually reinvest in the signature events, arts and cultural amenities that contribute to Scottsdale’s attractiveness to visitors. The Scottsdale Economic Development team focuses on supporting the attraction of hospitality infrastructure such as resorts, entertainment, retail and dining offerings and the promotion of Scottsdale as a premier destination for both leisure and business visitors. Tourists to the Scottsdale area have a tremendous impact on rmunicipal revenue, as privilege tax collections attributable to visitors for FY12/13 totaled an estimated $35 million.

The visitor industry provides an estimated $35 million (approximately

22 percent) of total privilege tax collections in Scottsdale.

Source: City of Scottsdale Tax Audit Section, 2012.

TOP 100 BEST PLACES TO LIVE IN U.S.

Source: Livability.com

Page 21 Page 22

VISITOR-HOSPITALITY TRADE AND COMMERCE

ADVANTAGE: SCOTTSDALE VISITOR, HOSPITALITY TRADE AND COMMERCE

��ΠThe average room rate for market area in 2012 was $145.65, and occupancy was 61.5 percent

��Î The typical overnight leisure traveler to Scottsdale is 58 years old with a median household income of $96,300 according to Behavior Research Center’s 2012 City of Scottsdale Visitor Inquiry Study

“Choose Scottsdale. The lifestyle, the weather, its unbeatable.”

- Andrew Chippindall, GM, Hotel Valley Ho

The visitor industry provides an estimated $35 million (approximately 22 percent) of total privedge tax collection in Scottsdale

Source: City of Scottsdale

8.9 MILLION PEOPLE ON AVERAGE VISIT SCOTTSDALE EVERY YEAR

Source: Scottsdale Convention and Visitors Bureau

Qualified FacilityThe Qualified Facility program offers a refundable income tax credit for eligible companies making a Capital Investment to establish or expand a Qualified Facilities.

Foreign Trade ZoneBusinesses, located in a zone or sub-zone are eligible for up to an 80 percent reduction in state real and personal property taxes.

Renewable Energy Tax IncentiveRenewable Energy tax credit provides an income tax credit based on the amount of electricity produced annually for a 10-year period using solar or wind energy.

Healthy ForestHealthy Forest provides incentives for certified businesses that are primarily engaged in harvesting, processing or transporting of qualifying forest products.

Lease ExciseLease Excise is a redevelopment tool to initiate development by reducing a project’s operating costs by replacing the real property tax with an excise tax.

Work OpportunityThe Work Opportunity Tax Credit is a federal tax credit provided to private-sector businesses from groups who have consistently faced significant barriers to employment.

Quality JobsThe Quality Jobs tax credit offers up to $9,000 of Arizona income or premium tax credits spread over a three-year period for each net new quality job.

Computer Data Center Program(CDC) provides Transaction Privilege Tax and Use Tax exemptions at the state, county and local levels, on qualifying purchases of CDC Equipment.

Research & DevelopmentThe R&D tax credit provides an Arizona income tax credit for increased research and development activities conducted in this state.

Additional DepreciationAccelerates depreciation schedules for prospective acquisitions of commercial personal property.

Sales Tax Exemptions for ManufacturingThe Sales Tax Exemption for Machinery and Equipment is a sales tax exemption for various machinery or equipment.

STATE ASSISTANCE PROGRAMSThe Arizona Competitiveness Package, HB2001, encompasses some of the most powerful economic development legislation in the country, making Arizona one of the most attractive locations in the world for your corporate clients to operate. For more information please visit www.azcommerce.com.

ChooseScottsdale.com website, offering data helping businesses examine performance benchmarking, competitive assessments, advertising market identification and customer demographic analysis.

Workforce Training AssistanceWe work with our partners at Maricopa Workforce Connections, Maricopa Corporate College, Arizona Commerce Authority and the Scottsdale Community College to assist companies in their workforce needs. We can assist in helping companies access tailored training programs, in some cases in obtaining funding to defer the costs, and in recruitment efforts for new talent.

Employer Visitation ProgramOur team conducts visitations and interviews with local businesses to gather industry-specific information, inform them about city services, and address their needs. We have tools and resources available to aid in the process. These interview results aid us in developing new tactical and direct assistance programs for businesses that are expanding, in need of financial or management technical assistance, seeking help with workforce recruitment or workforce development, and other needs.

Small Business TrainingThe department produces an ongoing small business series entitled ‘Taking Care of Your Business’ at the Eureka Loft at Scottsdale Civic Center Library. The program is taped and available on YouTube. The series covers diverse topics such as strategic marketing, working with city departments and keeping your business safe.

Relocated Employee Orientation SupportHave you relocated employees to your Scottsdale location, or have you recruited new ones from outside of Arizona? If so, we are here to help you support their integration into the community through welcome wagon bags and materials, to informational presentations about living in the desert southwest. We look forward to working with you to develop a

“Work Scottsdale” Initiative The City of Scottsdale economic development department is dedicated to the success of companies who have chooses to call Scottsdale home. To accomplish this goal we work in collaboration with existing companies in the recruitment of talented professionals on a national scale. The ‘Work Scottsdale’ initiative includes a combination of messaging campaigns delivered through social media, the creation of marketing and relocation materials for prospective workers, an online jobs portal and the participation in job market expos in markets where labor with targeted skill sets are prevalent. Learn more at www.choosescottsdale.com/work.

Data and Research SupportThe department maintains access to databases and research that can be helpful in obtaining the information Scottsdale companies need for successful operations and expansion. This can include labor market data, community demographics, development cost estimating, housing analysis and more.

Dedicated Project ManagerWe offer personal project management assistance to help companies developing in the city, whether it is with permitting and zoning of new or renovated facilities, applications for tax and licensing or in arranging consultations with our Police or Fire Departments.

Site/Property Location AssistanceUtilizing real estate database searches, combined with city insight regarding zoning, infrastructure and general plan designations, we can assist you in finding the perfect location for your business within the timeframe required.

SizeUp for Local Business Intelligence Tool‘SizeUp’ is available for use at no cost to current and prospective Scottsdale businesses on the

Page 23

BUSINESS RESOURCES

The City of Scottsdale’s Economic Development team is committed to providing exceptional customer services to its business community. Some of the current services available to your business include:

V I S I O NPhoto By: Scott Amonson

3839 North Drinkwater Blvd., 2nd FloorScottsdale, AZ 85251Phone: 480-312-7989

[email protected]

For Digital Version go to www.choosescottsdale.com/cg

Paradise Valley Salt River

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Fountain Hills

CaveCreek

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Phoenix

LEGEND

GENERAL AREA OF INTEREST

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