Business Type: Expansion County: Douglas County Development Authority Representative: Danny Campos - NNDA
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1 Board Summary Cristek Interconnects, Inc E. Hunter Avenue, Anaheim, CA Date: March 25, 2016 Main Location: Carson City, Nevada Cristi Cristich, President/CEO Electronic Connector Manufactuing Business Type: Expansion County: Douglas County Development Authority Representative: Danny Campos - NNDA APPLICATION HIGHLIGHTS - Cristek Interconnects, Inc. is applying for Sales Tax, Modified Business Tax, and Personal Property Tax abatements. - Meets statute for job creation, average wage and capital investment levels. - Existing 19 employees at an average hourly wage of $27.00 prior to expansion plans. - Additional capital investment of $400,000 for building leasehold improvements. PROFILE Cristek leverages its vertical integration and engineering expertise to distinguish itself as a best-in-class cable, harness and complex electromechanical assembly manufacturer. Cristek is one of only a handful of interconnect suppliers with expertise in DC through 67 GHz RF frequency connector, cable and electromechanical design and assembly. Cristek's consistent, near-perfect performance, has earned it a position as preferred supplier to several major military/aerospace prime contractors. Source: Cristek Interconnects, Inc. SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND The abatement programs were the deciding factor in choosing Nevada over Arizona when first deciding to locate the current facility and continue to be instrumental in our expansion decision. These programs allow Cristek to make further investments in capability, staffing, infrastructure and community. Cristek looks forward to continuing to grow business in Nevada. Source: Cristek Interconnects, Inc. REQUIREMENTS Statutory Application Sufficient % Over / Under Job Creation 6 8 Yes 33% Average Wage $20.89 $22.50 Yes 8% Equipment CapEx (SU & MBT) $154,000 $1,113,000 Yes 623% Equipment CapEx (PP) $154,000 $1,113,000 Yes 623% INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt. Abated to 2% $56,763 Modified Business Tax Abmt. 50% for 4 years $3,573 Personal Property Tax Abmt. 50% for 10 years $15,787 Total $76,123 JOB CREATION Contracted 24-Month Projection 5-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Building Improvements $0 $0 $400,000 ECONOMIC IMPACT ESTIMATES (10-Year Cumulative) Total Construction Total Jobs Supported 12 4 Total Payroll Supported $5,437,698 $209,167 Total Output Estimate $22,332,564 $570,949 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 $52,400 $196,891 $249,291 Sales $13,260 $52,657 $65,917 Lodging $0 $3,857 $3,857 State Taxes Property $2,996 $18,377 $21,373 Sales $27,460 $33,714 $61,174 Modified Business $14,292 $25,472 $39,764 Lodging $0 $111 $111 Total $110,408 $331,079 $441,487 COST-BENEFIT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar $293 $5.80 EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 66%. - Health care package cost per employee - $5,200 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Bonus, Retirement Plan, Merit Increases, Tuition Assistance. NOTES - Percentage of market outside of Nevada: 100%. - The company hourly average wage exceeds the statewide hourly average wage of $ The company previously received tax abatements from GOED; completed abatement cycle in July 2015, first audit results reflect the company is substantially compliant.
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5 Incentive Application Company Name: Cristek Interconnects, Inc. Date of Application: February 3, 2016 Company is an / a: (check one) New location in Nevada Expansion of a Nevada company Section 1 - Type of Incentives Please check all that the company is applying for on this application: CORPORATE ADDRESS 5395 E. Hunter Ave. ADDRESS cristic@cristek.com ; kj@cristek.com Type of Facility: Headquarters Technology Back Office Operations Research & Development / Intellectual Property Other: COMPANY NAME (Legal name under which business will be transacted in Nevada) Cristek Interconnects, Inc. TELEPHONE NUMBER COMPANY CONTACT NAME Cristi Cristich PREFERRED PHONE NUMBER (KJ Kidd - Minden) If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary): Abatement - Approved 7/13/15 (completed) Section 3 - Program Requirements Please check two of the boxes below; the company must meet at least two of the three program requirements: PERCENT OF COMPANY'S MARKET OUTSIDE OF NEVADA 100% NAICS CODE / SIC /3678 Sales & Use Tax Abatement Modified Business Tax Abatement Personal Property Tax Abatement Section 2 - Corporate Information MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) 1760 Orbit Way Sales & Use Tax Deferral Recycling Real Property Tax Abatement CITY / TOWN Anaheim CITY / TOWN STATE / PROVINCE ZIP Minden NV WEBSITE COMPANY CONTACT TITLE President/CEO Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development? Service Provider Distribution / Fulfillment Manufacturing Other: FEDERAL TAX ID # STATE / PROVINCE ZIP CA 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 businesses. In cases of expanding businesses, the capital investment must equal at least 20% of the value of the tangible property owned by the business. New businesses locating in urban areas require fifty (50) or more permanent, full-time employees on its payroll by the eighth calendar quarter following 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 greater. 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. in rural areas, the average hourly wage will equal or exceed the lesser of the county-wide average hourly wage or statewide average hourly wage. 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). Section 4 - Nevada Facility EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR) Apr-2016 INDUSTRY TYPE Electronic Connector Manufacturing DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Manufacture high reliability interconnect systems for space, aerospace, defense, medical and geophysical industries PROPOSED / ACTUAL NEVADA FACILITY ADDRESS 1760 Orbit Way Yes CITY / TOWN COUNTY ZIP Minden Douglas WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? N/A No 1
6 Section 5 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below) Check the applicable box when form has been completed. 5 (A) Equipment List 5 (B) Employment Schedule 5 (C) Evaluation of Health Plan Section 6 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up - Plans Over the Next Ten Years Expansions - Plans Over the Next 10 Years Part 1. Are you currently/planning on leasing space in Nevada? If No, skip to Part 2. If Yes, continue below: What year(s)? How much space (sq. ft.)? Annual lease cost of space: Do you plan on making building tenant improvements? If No, skip to Part 2. If Yes *, continue below: When to make improvements (month, year)? Part 2. Are you currently/planning on buying an owner occupied facility in Nevada? If No, skip to Part 3. If Yes *, continue below: Purchase date, if buying (month, year): How much space (sq. ft.)? Do you plan on making building improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Part 3. Are you currently/planning on building a build-to-suit facility in Nevada? If Yes *, continue below: When to break ground, if building (month, year)? Estimated completion date, if building (month, year): How much space (sq. ft.)? Part 1. Are you currently leasing space in Nevada? No If No, skip to Part 2. If Yes, continue below: What year(s)? How much space (sq. ft.)? Annual lease cost at current space: Due to expansion, will you lease additional space? If No, skip to Part 3. If Yes, continue below: Expanding at the current facility or a new facility? What year(s)? How much expanded space (sq. ft.)? Annual lease cost of expanded space: Do you plan on making building tenant improvements? If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Part 2. Are you currently operating at an owner occupied building in Nevada? Yes If No, skip to Part 3. If Yes, continue below: How much space (sq. ft.)? 8,594 Current assessed value of real property? $770, Due to expansion, will you be making building improvements? Yes If No, skip to Part 3. If Yes *, continue below: When to make improvements (month, year)? Apr-2016 Part 3. Do you plan on building or buying a new facility in Nevada? No If Yes *, continue below: Purchase date, if buying (month, year): When to break ground, if building (month, year)? Estimated completion date, if building (month, year): How much space (sq. ft.)? * Please complete Section 7 - Capital Investment for New Operations / Startup. * Please complete Section 7 - Capital Investment for Expansions below. BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary): We will be making improvements to our building such as building additional office space on the main floor and finishing the upstairs for additional office and/or assembly space. 2
7 Section 7 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up Expansions How much capital investment is planned? (Breakout below): How much capital investment is planned? (Breakout below): Building Purchase (if buying): $0 Building Purchase (if buying): $0 Building Costs (if building / making improvements): $0 Building Costs (if building / making improvements): $400,000 Land: $0 Land: $0 Equipment Cost: $0 Equipment Cost: $1,113,000 Total: $0 Total: $1,513,000 Is the equipment purchase for replacement of existing equipment? No Current assessed value of personal property in NV: $770,000 (Must attach the most recent assessment from the County Assessor's Office.) Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both.) New Operations / Start Up How many full-time equivalent (FTE*) employees will be created by the end of the first fourth quarter of new operations?: Average hourly wage of these new employees: Expansions How many full-time equivalent (FTE*) employees will be created by the end of the first fourth quarter of expanded operations?: 8 Average hourly wage of these new employees: $22.50 How many FTE employees prior to expansion?: Average hourly wage of these existing employees: Total number of employees after expansion: 19 $ * 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 OTHER COMPENSATION (Check all that apply): Overtime Merit increases Tuition assistance Bonus PTO / Sick / Vacation COLA adjustments Retirement Plan / Profit Sharing / 401(k) Other: BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary): N/A Section 9 - Employee Health Insurance Benefit Program Is health insurance for employees and an option for dependents offered?: Yes (copy of benefit plan must be attached) Package includes (check all that apply): Medical Vision Dental Other: Life, AD&D, Short and Long Term Disability Qualified after (check one): Upon employment Three months after hire date Six months after hire date Other: 60 days after hire No Health Insurance Costs: Percentage of health insurance coverage by: Cost of health insurance for company (annual amount per employee): $ 5, Company: 66% Health Plan annual out-of-pocket maximum (individual): $ 4, Employee: 34% [SIGNATURE PAGE FOLLOWS] 3
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9 5(B) Employment Schedule Company Name: Cristek Interconnects, Inc. County: Douglas Section 1 - Full-Time Equivalent (FTE) Employees Directions: Please provide an estimated list of full time employees [columns (a) through (d)] that will be hired and employed by the company by the end of the first eighth quarter of new / expanded operations. For example, if the effective date of new / expanded operations is April 1, 2015, the date would fall in Q2, The end of the first fourth quarter would be the last day of Q2, 2017 (i.e., June 30, 2017). Attach this form to the Incentives Application. A qualified employee must be employed at the site of a qualified project, scheduled to work an average minimum of 30 per week, if offered coverage under a plan of health insurance provided by his or her employer, is eligible for health care coverage, and whose position of a primary job as set forth in NAC Technician Assembly Machinist (a) New Hire Position Title/Description Adminstrative (various -accounting, supply Quality Engineering (b) ( c ) (d) (e) (f) Number of Average Hourly Average Weekly Annual Wage per Positions Wage Hours Position Total Annual Wages 2 $ $41, $83, $ $41, $41, $ $83, $83, $ $41, $41, $ $31, $62, $ $41, $41, TOTAL 8 $46, $353, Section 2 - Employment Projections Directions: Please estimate full-time job growth in Section 2, complete [columns (b) through (c)]. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of employment. (a) Year 3-Year 4-Year 5-Year (b) Number of FTE(s) Projected (c) Average Hourly Wage (d) Payroll $0.00 $0.00 $0.00 7
10 5(A) Capital Equipment List Company Name: Cristek Interconnects County: Douglas Section 1 - Capital Equipment List Directions: Please provide an estimated list of the equipment [columns (a) through (c)] which the company intends to purchase over the two-year allowable period. For example, if the effective date of new / expanded operations begins April 1, 2015, the two-year period would be until March 31, Add an additional page if needed. For guidelines on classifying equipment, visit: tax.nv.gov/localgovt/policypub/archivefiles/personal_property_manuals. Attach this form to the Incentives Application. (a) Equipment Name/Description CNC Swiss Turning Center & Accessories Electrical Test Equipment Computer Servers, Accessories & Supporting Software Upgrades Vault for Management & Redundancy of Cristek Intellectual Property Laser or Jet Marking Equipment Hot Solder Equipment Automated Crimoing Equipment Office Furniture Office Equipment ( b) (c) (d) # of Units Price per Unit Total Cost 2 $160, $320, $80, $160, $225, $225, $89, $89, $80, $160, $65, $65, $35, $70, $3, $12, $3, $12, TOTAL EQUIPMENT COST Is any of this equipment* to be acquired under an operating lease? *Certain lease hold equipment does not qualify for tax abatements Yes $1,113, No 6
11 Site Selection Factors Company Name: Cristek Interconnects County: Douglas Section 1 - Site Selection Ratings 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. Availability of qualified workforce: Labor costs: Transportation infrastructure: Transportation costs: Real estate availability: State and local tax structure: X Real estate costs: State and local incentives: X Utility infrastructure: Business permitting & regulatory structure: X Utility costs: Access to higher education resources: OTHER FACTORS & RATINGS: 5
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13 COMPANY PROFILE Founded in 1985 by Cristi Cristich 175 Employees 5395 E. Hunter Avenue, Anaheim, CA Cage Code: DUNS Lawrence Street, Lowell, MA Cage Code:65SA4 DUNS Orbit Ave., Minden, NV Cage Code 709U6 DUNS CERTIFICATIONS AS9100 & ISO9001 certified UL Certification # 8992 ITAR Registered Company: M19340 & E-Verify User Nadcap AC7121 Accredited Cert # Woman Owned, Small Business RECOGNITION Preferred Supplier Relationships: Raytheon Company, BAE Systems, UTC Aerospace Raytheon Sponsored Protégé Company 2004 through 2008 US Small Business Contractor of the Year Region IX Boeing Enterprise Performance Award 2013 BAE Protégée Company TECHNOLOGIES & PRODUCTS: QPL MIL-DTL (Micro) MIL-DTL (D Sub) MIL-DTL-55302( Two Piece) Mil-DTL (Nano) HARNESS OTHERS MOTS IN DIFFERENT PACKAGES CUSTOM D SUB FOR SPACE APPLICATION CIRCULAR MICRO & NANO CONNECTORS DIGITAL RF/MICROWAVE RF CONNECTORS SMP (MIL-RRF-31031) SMPM CMP SMA BMZ, ZMA, N, MM EMI/EMP Filter Connectors All Circular formats (38999, 83723, etc.) (Sub Miniature D connectors) (Micro Connectors) Custom TECHNICAL STAFFING: 10 Design Engineers - Mix of Mechanical, Electrical, Connector, Cable & Harness, RF/Microwave Expertise/Background 3 Technical Product Managers Multi Pin Connectors, RF Microwave & Cable & Harness TRAINING PROGRAMS: J-STD-001 & UPC/WHMA-A-620 Trainers & Cross Training Program Lean Six Sigma & SAGE (Leadership) Trainers & Training Program NASA Certification
14 COMPANY PROFILE LEFT BLANK FOR NOTES
15 MULTI PIN CONNECTORS M83513 QPL, MOTs & Custom Application Micro Miniature Micro & Nano Strips M32139 Style & Custom Nano Miniature
16 MULTI PIN CONNECTORS Ultra Miniature Circular Press Fit Stacking EMI/EMP Filter EMP Filter Circulars Filter any Mil Spec format L, C or Pi and or multiple values M24308 QPL & Custom App D Sub M55302 & Custom App Board to Board
17 RF CONNECTORS Ultra Miniature Push On Family: SMP, SMPM, SPMS & Beyond Most Standard (i.e.: SMA, BMZ, MM) & many customs available Triax Solderless Edge Launch Type N MODULE TO MODULE (SMP) GANG MATING
18 RF/MICROWAVE CABLE HARSH ENVIRONMENT COMBO DIGITAL COAX CONNECTOR ASSEMBLIES 26 GHz & 3 AMPS SEMI RIGID FORMED LOW LOSS & PHASE MATCHED CABLES FLEXIBLE CABLES TYPE N CABLE ASSEMBLY
19 QUALITY & RELIABILITY Customer Mission Assurance is our most important objective! Harness Technical Data Package Development Router Cut Lists Photos Detailed Assembly Instructions Digital Router Real Time Assembly Fixtures Appropriate for the Job 2D or 3D Form Boards Customer Mock up Training CRISTEK UNIVERSITY Blue Print Reading J-STD Solder + ES Training (Two Instructors on site) IPC-620 Training (Two Instructors on site) NADCAP Training Check Do Check Training Basic Measurement Training NASA Training OTHER CAPABILITIES Control Room For Space and Medical Applications FOD Sector Control X-ray Capability
20 QUALITY & RELIABILITY Multi Point & Quadtech Automatic Testers 8 Testers Capable of testing 50,000 points Test Programs revisions control Print out or digital medium capable Test Fixture Revision Control Wear on test fixtures monitored through a database Normal Testing DWV Insulation Resistance Continuity Contact Resistance Other Testing Upon Request RF Microwave Capability Multiple Network Analyzers with Capability 90 GHz PINES Benders Automatic wire strippers Thermal Chambers for cable conditioning Other Equipment Tinius Olsen Force Tester Crimp Pull Test Validation Contact Force Measurement Thermal Cycling Ovens Salt Spray Chamber Vacuum Chamber (IP68) Optical Measuring Equipment Real Time X-ray
21 DIGITAL HARNESS CRISTEK DIGITAL CABLE ASSEMBLIES Signal & Data Cables Power Cables Multi-Technology EMI & Harsh Environment TYPES OPEN BUNDLE MECHANICAL BACKSHELL CLOSED BUNDLE OVERBRAID OVERMOLDED MACHINE OVER BRAID KEVLAR STAINLESS STEEL COPPER NOMEX POLYESTER/DACRON OTHER MATERIALS AVAILABLE ON REQUEST OVERMOLD POLYURETHANE EPDM SILICONE
22 DIGITAL HARNESS Precision Box Integration With Custom Developed EMP/EMI ARINC Ultra Density Routing in 3D Custom Developed Backshells & EMI Shielding Exits Complex Flat Forms Integration With Switches, PCB, Active Components Nano Miniature AWG
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