Backgrounder. Anatomy of the Deal Clif Bar Selects Twin Falls Idaho

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1 Backgrounder Anatomy of the Deal Clif Bar Selects Twin Falls Idaho Overview Highlights On October 17, 2013, a Development Agreement was signed between the City of Twin Falls, the Twin Falls Urban Renewal Agency (TFURA), and Clif Bar & Company to locate a state-of-the-art bakery facility in Twin Falls, Idaho. The agreement culminates several months of discussion between Clif Bar and Twin Falls community partners. City officials received a Request for Information (RFI) from J.M. Mullis, Inc., professional project location specialists working with Clif Bar on their exploration of a site for their facility, on June 21, A ready team including representatives from the City of Twin Falls, TFURA, Southern Idaho Economic Development Organization (SIEDO), the Twin Falls Area Chamber of Commerce, Southern Idaho Tourism, the State of Idaho, and other key community partners was assembled and the response was submitted to the company on July 9, The RFI included a broad spectrum of information about Twin Falls and the surrounding region: demographics, population characteristics, major employers, workforce characteristics, education, taxes, business climate and incentives, and most importantly quality of life. Clif Bar & Company is a leading maker of nutritious and organic foods and drinks, including CLIF Bar energy bar, LUNA, The Whole Nutrition Bar for Women ; and CLIF Kid, Nourishing Kids in Motion. Focused on sports nutrition and snacks for adventure, the family and employee-owned company is committed to a larger business model that encompasses Five Aspirations, or bottom lines: sustaining Business, Brands, People, Community and the Planet. These aspirations as outlined in the company s vision align with the City s strategic plan initiatives and a series of vision statements that allow Twin Falls to create and maintain an accessible, healthy, learning, environmental, responsible, prosperous, and secure community. On July 25, 2013, representatives from J.M. Mullis, Inc. and a construction engineering firm working with Clif Bar visited Twin Falls to gain additional information related to the proposed construction site, infrastructure needs, and further refinement of incentives. The Twin Falls team was also informed that Clif Bar company representatives would visit the community in August. On August 12-13, 2013, Clif Bar representatives visited Twin Falls, along with their site selection consultant. A presentation by the Twin Falls team focused on the alignment of visions between the company and the community. Additional information was provided related to the RFI and property was reviewed. Representatives from Clif Bar s executive management team including Gary Erickson, founder, co-owner and co-chief Visionary Officer and Kit Crawford, co-owner and co-chief Visionary Officer attended. The Twin Falls team provided a tour of the proposed property for the project and a presentation focused on the shared values and vision between the Twin Falls community and Clif Bar. Based upon continuing discussions between the Twin Falls team and Clif Bar over the following several weeks, a final development agreement was approved by the Twin Falls City Council, TFURA Board, and Clif Bar and was signed on October 17, 2013, at the historic Band Shell in Twin Falls City Park, joining the Company and the

2 City into a partnership where both aspire to sustain the community, its people and the region s natural resources in Southern Idaho, while creating nutritious and organic food. The Project Clif Bar and Company is in the preliminary stages of design and cost estimations for construction of the Plant which will be located in the Jayco Industrial Park with the east boundary being serviced by 3300 East commonly known as Champlin Road. TIF proceeds will be used to acquire the land at an acquisition cost of $3,879,083. Infrastructure Improvements - In order to be able to support Clif Bar and Company s state-of-the-art baking facility, the City and TFURA have committed to provide funding to assist with improvements to the water, wastewater, street and transportation systems, canal, and public utility systems to assist with Clif Bar and Company s expansion. Total investment of $ million will come from a combination of URA TIF funds, ICDBG grants, and the City s cash reserves. No current year tax dollars required from the city to implement infrastructure improvements. (See Deal Data Sheet for specific financial details.) City of Twin Falls Commitments - The City of Twin Falls has agreed to provide up to $3.5 million of funding from its cash reserves to assist in the development and construction of a 5 million gallon water reservoir/storage facility. The water facility will assist the City meet a portion of the water storage needs of the community beyond the water storage needs needed for this facility. Additionally, the City of Twin Falls has agreed to waive the building permit and similar fees and charges. URA has agreed to pay all impact fees and other fees needed in connection with the approval, construction, inspection, occupancy and operation of the facility, including but not limited to fees associated with water and sewer taps, lateral relocation approvals, industrial user permits, and sign permits. Twin Falls Urban Renewal Agency Commitments - The Twin Falls Urban Renewal Agency will approve a new urban project and renewal revenue allocation area for the site and the Clif Bar and Company facility in accordance with the Urban Renewal Plan to allow for collection of tax increment funds to be used for costs and expenses in support of the Clif Bar and Company state-of-theart facility. The URA thru tax increment financing (TIF) will provide an estimated $ million to support this opportunity. The TIF funding will be used to cover eligible costs associated with Clif Bar and Company s expansion, which includes property acquisition, site development, pretreatment facilities, sewer system improvements, water system improvements, power and other utility improvements, and related development and connection fees. Idaho Department of Commerce - The Idaho Department of Commerce has invited the City to apply for Idaho Community Development Block Grants that can be applied toward the cost of public infrastructure needed to serve the facility. The City will be required to submit all required applications to secure two (2) Idaho Community Development Block Grants in the amount of $500,000 each, totaling $1,000,000 for public infrastructure to serve the Plant. Additionally, the

3 Idaho Department of Commerce has committed to provide from the Director s Opportunity Grant Fund in the amount of $800,000 toward the cost of public infrastructure needed to serve the facility. Idaho Department of Labor Workforce Development Training Funds Award The Idaho Department of Labor has pledged up to $4 million in Workforce Development Training Fund for up to 505 employees. Clif Bar and Company Commitments - Clif Bar and Company has committed to construct a state-of-the-art facility that has an estimated construction cost, for the initial phase, of the state-of-the-art baking facility of approximately $90 million and potentially as much as $160 million at full build-out. Clif Bar and Company estimates that it will employ approximately two hundred fifty (250) full-time employees with benefits at the facility in the initial phase, which plans for two manufacturing lines to be operational. Assuming market, operation and economic conditions support full build-out of the facility, Clif Bar and Company will create approximately 450 full-time employment opportunities for Twin Falls and Magic Valley residents. Key Benefits to the Community Shared values and vision: Clif Bar s Five Aspirations align with the City of Twin Falls strategic plan initiatives that speak to where we are today as a community and where we aspire to travel in the future. These shared values and vision serve as a foundation for partnership for both to achieve greater success. Jobs: Clif Bar estimates that it will employ approximately two hundred fifty (250) full-time employees with benefits at the facility in the initial phase, which plans for two manufacturing lines to be operational. Assuming market, operation and economic conditions support full build-out of the facility, Clif Bar will create approximately 450 full-time employment opportunities for Twin Falls and Southern Idaho residents. Clif Bar s stated commitment to sustaining people creates a workplace where people can live life to the fullest, even from 9 to 5. Public infrastructure enhancement: Clif Bar s capital investment in Twin Falls will assist in financing enhancements to the City s water, wastewater, and public streets infrastructure as well as additional improvements to other utilities (electricity, natural gas, telecommunications). Great corporate citizen: Clif Bar is committed to keeping their impact on the environment small, being good neighbors and giving back to the community, supporting a positive workplace for employees and their families, growing their business responsibly, and never compromising quality. These values complement our business community in the Twin Falls area and the goals of the City of Twin Falls and its partners in economic development.

4 Key Dates May 24, 2013 Inquiry from Idaho Department of Commerce (IDOC) regarding site opportunities in southern Idaho. Idaho competing with sites in Arizona and Utah. June 21, 2013 Initial site visit from consultant and company. Twin Falls only Idaho city to move forward in Idaho. June 24, 2013 City makes next round and receives detail RFI. July 9, 2011 Initial RFI deadline for Twin Falls due to consultant. July 13, 2013 Twin Falls notified that they have been selected for an executive company team site visit for August July 25, 2013 Consultant and design firm meet in Twin Falls to fully vet proposed property for infrastructure, etc. July 31, 2013 Consultant and company to visit with state on tax and incentive issues. August 12-13, 2013 City of Twin Falls hosts site visit with company owner and executive team to review site and discuss community and state proposal. September 10, 2013 Follow-up meetings with City and State. September 18, 2013 Twin Falls team notified by company that they were selected as preferred city depending final negotiations. October 17, 2013 Twin Falls and Clif Bar announce agreement to site their new manufacturing facility in Idaho. Recognition of Key Players The City of Twin Falls Under the leadership of Mayor Greg Lanting, the City Council and Travis Rothweiler, City Manager, the City of Twin Falls took a very proactive stance and was very responsive to the ever-changing issues of the project. Twin Falls Urban Renewal Agency The Twin Falls Urban Renewal board under the leadership of Cindy Bond worked hand-in-hand with the City of Twin Falls to develop local financial incentives for project development. The board was supported by Melinda Anderson Director of the URA and Fritz Wonderlich board attorney. Southern Idaho Economic Development Organization (SIEDO) Jan Rogers, Executive Director helped facilitate efforts with the City and company throughout the recruitment process. Twin Falls Chamber of Commerce - Chamber President Shawn Barigar deserves kudos for assisting the Twin Falls Ready Team with a whatever it takes attitude to move the project forward. The State of Idaho Governor Butch Otter, Lt. Governor Brad Little, the Departments of Commerce and Labor have gone above and beyond to keep the project moving forward both locally and with state incentives. They provided a strong partnership to the region in recruiting the company to Idaho.

5 Key Contacts: Clif Bar Keely Wachs Communications Director o o kwachs@clifbar.com City of Twin Falls Travis Rothweiler City Manager o o trothweiler@tfid.org Josh Palmer Public Information Officer o o jpalmer@tfid.org Twin Falls Urban Renewal Agency Cindy Bond - Chair o o cbond@csi.edu Melinda Anderson Director o o manderson@tfid.org Governor s Office Mark Warbis Communications Director o o mark.warbis@gov.idaho.gov Department of Labor Roger Madsen - Director o o roger.madsen@labor.idaho.gov Jan Roeser Labor Analyst o ext o jan.roeser@labor.idaho.gov Department of Commerce Gynii Gilliam Chief Economic Development Officer o o gynii.gilliam@commerce.idaho.gov Susie Davidson Manger Business Development o o susan.davidson@commerce.idaho.gov Southern Idaho Economic Development Organization Jan W. Rogers Executive Director o o janrsiedo@aol.com Twin Falls Area Chamber of Commerce Shawn Barigar President & CEO o o shawn@twinfallschamber.com