1. NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Border Business Case Overview & Success Arizona Mexico Summit Transportation, Infrastructure & Ports Committee June 23, 2016; Scottsdale Princess

2. Border Business Case Planning Border Business Case 2 Funding Public/Private Partners Greater Nogales Santa Cruz County Port Authority Nogales Community Development Corporation Fresh Produce Association of the Americas

3. Border Business Case Implementation strategy from the Border Communities Roadmap. Provides the guiding roadmap for the binational effort. Defines the broader binational region and assets. Presents the “case” for investing in the binational region. Outlines the economic drivers for the region. Identifies strategies and implementation steps. 3

4. Binational Regions Ambos Nogales – Nogales, Arizona/Nogales, Sonora Douglas, Arizona/Agua Prieta, Sonora Greater San Luis, Arizona (San Luis, Somerton, Yuma, and Yuma County)/San Luis Rio Colorado, Sonora 4

5. Business Case Process Step 1 Organized Step 2 Strategic Framework Step 3 Strategic Positioning Step 4 Border Business Case 5

6. Case Study Successes

7. Binational Region Defined Regional Population: 543,247 Size: 8,762 square miles Comparison: Ranks 3 rd 1.Maricopa County - 4,087,191 2.Pima County - 1,004,516 3.4FRONTED – 543,247 4.Pinal County – 401,918 5.Greater Nogales – 251,824 * Yuma County ranks 8 th AreaPopulation San Luis31,091 Somerton14,912 Wellton2,956 Yuma County203,247 Greater San Luis Rio Colorado 340,000 Source: 2014 Population Estimate; COPRESAN-San Luis Rio Colorado, Sonora 7

8. Strategic Market Access 65 million consumers within a day’s drive SR 95 connects the region to I-8 and other key commerce corridors Five seaports within a 500-mile radius LA, Long Beach, San Diego, Ensenada, and Guaymas Within 250 mile radius, 10 international airports Yuma International Airport General Rodolfo Taboada International Airport Outside of Mexicali, Baja California 8

9. Open for Business San Luis is Arizona’s second largest port of entry – 2014 total dollar value of all commodities that move through the port $1.6B; 4.1% increase over 2013. Strong binational relationships and effective regional collaborations. Long-standing regional economic development efforts. Cross-border business commerce – 33 maquiladora companies operate in San Luis Rio Colorado employing nearly 14,000 people. Expedited commerce and reduction or elimination of tariffs/fees - Foreign Trade Zone #219 in Yuma County and San Luis Rio Colorado Free Trade Zone. Industrial land available in the binational region - nearly 1,000 acres served and over 2,000 acres more in San Luis Rio Colorado unserved by infrastructure. 9

10. Thriving Regional Economic Drivers Tradable Goods and Services Businesses that “export” goods and “import” money. Food Technology and Agribusiness Agribusiness is single-largest private sector industry. Value-add agriculture and produce – approximately $3.2B annually. Aviation and Defense Testing Tourism and Visitor industry Logistics and Distribution 10

11. Tradable Goods and Services Top 5 Business Employers San Luis Rio Colorado RankCompanyEmployees 1BOSE5,800 2Manfacuras Mesa550 3Sana International520 4GPI Mexicana480 5PTM Images de Mexico 442 Top 5 Business Employers Yuma County RankCompanyEmployees 1Trax International (civilian, non- military) 1,200 2Advanced Call Center Technologies 800 3Convey Health Solutions 671 4Shaw Carpets301 5Gowan Companies250 11

12. Food Technology and Agribusiness Top 5 Agro-Industry Employers San Luis Rio Colorado RankCompanyEmployees 1Bustamante Parra Produce 1,389 2Empaque Rio Colorado 1,031 3Agriola Agros444 4Empaque Horticola del Valle 282 5Sonora Pride159 Top 5 Agro-Industry Employers Yuma County RankCompanyEmployees 1Date Pac, LLC1,500 2Tanimura & Antle Fresh Foods 500 3Pasquinelli Produce342 4Nature Fresh Farms270 5Sky View Cooling246 12

13. Aviation and Defense Testing U.S. Marine Corps Air Station and U.S. Army Proving Ground have a combined impact over $2B in 2012. Workforce = 4,253 civilian, 4,853 enlisted. Large regional support businesses. Year-round, skill-based critical employment. 13

14. Tourism and Visitor Industry $600M per year economic impact. Business travel major component. Over 100,000 winter visitors. Tremendous industry support. 45-minutes to the Sea of Cortez. Two hour drive to Rocky Point. 14

15. Logistics and Distribution 15 major trucking companies specializing in refrigerated shipping. Excellent back-haul opportunities due to volume of trucks serving California market. Yuma County has new FedEx air and group distribution facility. Strategic location to major international markets through Port of Long Beach (250 miles) and Port of Guaymas (174 miles). 15

16. Business Case Implementation 1.Organized binational organization with staff and website – 4FRONTED: 4 Regions/2 Nations. www.4frontED.orgwww.4frontED.org 2.Binational commitment to move forward on implementation. 3.Funding from all entities for implementation. 4.City of San Luis Economic Development is taking the coordinating lead. 5.Border Business Case serves as marketing tool for business recruitment. 6.Leadership assignments for strategic focus areas. 7.Annual Binational Regional meeting to be held to discuss implementation. 16

17. THANK YOU Peggy Fiandaca, President Partners for Strategic Action, Inc. 480.816.1811; Peggy@PSAPlanning.com ; www.PSAPlanning.com Peggy@PSAPlanning.com