Arbitech, LLC
64 Fairbanks, Irvine, CA 92618
Date: September 12, 2023 Brandon Seedorf, Chief Operating Officer
Application Facts: Company Profile
Industry Transportation, Warehousing & Utilities
NAICS
423430
Type of App
New
Location
Clark County
RDA
LVGEA, Mitch Keenan
Tax Abatement Requirements: Statutory
Company Application Meeting Requirements
Job Creation 50 54 Yes
Average Wage $29.28 $38.61 Yes
Equipment Capex (SU & MBT)
Equipment Capex (PP)
Additional Requirements:
65% 74%
Yes
51% 80%
Yes
Current Pending
Will comply
Total Tax Liability (without tax abatements)
Direct (company)
Total
$741,489 $8,730,026
Tax Abatements Contract Terms
Estimated Tax Abatement
Sales Tax Abmt. 2% for 2 years
$67,187
Modified Business Tax Abmt. 50% for 4 years
$76,567
Personal Property Tax Abmt. 50% for 10 years
$22,034
Total Estimated Tax Abatement over 10 yrs. $165,788
Net New Tax Revenues Direct
Indirect Taxes after Abatements
Local Taxes
Property $541,464 $3,751,460
$4,292,924
Sales $35,063 $2,088,190
$2,123,253
Lodging
$0
$116,812
$116,812
State Taxes
Property $29,615 $218,279
$247,894
Sales $29,615 $699,398
$729,013
Modified Business $401,773 $615,040
$1,016,813
Lodging $0 $37,529
$37,529
Total Estimated New Tax Revenue over 10 yrs.
$1,037,530 $7,526,708
$8,564,238
Economic Impact over 10 yrs. Economic
Construction Total
Total Jobs Supported 193 8 201
Total Payroll Supported $112,408,838 $545,934 $112,954,772
Total Economic Value $369,427,698 $1,573,212 $371,000,910
IMPORTANT TERMS & INFORMATION
Tax Abatements are reduction or discount of tax liability and companies do not receive any form of payment.
Total Estimated Tax Abatement is a tax reduction estimate. This estimated amount will be discounted from total tax liability.
Estimated New Tax Revenue is amount of tax revenues local and state government will collect after the abatement was given to
applying company.
Economic Impact is economic effect or benefits that this company and it's operations will have on the community and state economy
measured by total number of jobs, payroll and created output.
Health Insurance
Arbitech, LLC (Arbitech) is considering establishing a 50,275 sq. ft. headquarter,
distribution, and fulfilment facility in Henderson. Founded in 2000, Arbitech has
become the world’s leading independent distributor of data center products. Over
two decades, Arbitech has developed a network of supply sources that enable its
customers to choose from a comprehensive catalog of the latest technology
products as well as constrained and End Of Life (EOL) items that aren’t always
available through conventional distribution options, yet are vital to continuing
operations for many organizations. The company's distribution center stocks and
ships servers, storage, and networking products on a daily basis. From its
configuration room, the company offers complete server, blade, storage, and
networking configuration, performed by Arbitech’s certified engineers.
Arbitech has enjoyed solid growth since inception, and attributes much of its
success to the local community and the family environment that has been a
corner-stone of the business. Throughout the year, Arbitech participates in and
donates to a variety of organizations including American Red Cross, Boys & Girls
Club, and Make a Wish (amongst others). The company also considered
Pennsylvania, South Carolina, and Kentucky as potential locations for the
project. Source: Arbitech, LLC
Revenues generated outside NV
Business License
$1,053,915$1,000,000 Yes
July 10, 2023
Mr. Tom Burns
Executive Director
Nevada Governor’s Office of Economic Development
555 E. Washington Avenue, Suite 5400
Las Vegas, Nevada 89101
Dear Mr. Burns,
Arbitech, LLC is applying to the State of Nevada for the Sales & Use Tax Abatement,
the Modified Business Tax Abatement, and Personal Property Tax Abatement. We
request that Arbitech, LLC be placed on the September 12, 2023, GOED Board
meeting agenda.
Arbitech, LLC will create 54 new positions in the first 24 months of operations, with
an average hourly wage of $38.61. Arbitech, LLC will make an overall capital
investment of $2,053,915.
Arbitech, LLC meets and exceeds the statutory requirements for tax abatements.
This application has the full support of the Las Vegas Global Economic Alliance.
Sincerely,
Mitch Keenan
AVP Economic Development
Las Vegas Global Economic Alliance
1
ARBITECH



 







 
    
 


  
 
 

 

 

 


 

 







coo


2
HENDERSON-























  
   
3
5 (A)
Equipment List
5 (B)
Employment Schedule
5 (C)
Evaluation of Health Plan, with supporting documents to show the employer paid portion of plan meets the minimum of 65%.
5 (D)
Company Information Form
When to break ground, if building (month, year)?
Estimated completion date, if building (month, year):
How much space (sq. ft.)?
How much space (sq. ft.)?
Do you plan on making building tenant improvements?
When to make improvements (month, year)?
Section 5 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below)
If No, skip to Part 3. If Yes * , continue below:
Dec, 2023
Part 1. Are you currently leasing space in Nevada?
If No, skip to Part 2. If Yes, continue below:
How much space (sq. ft.)?
Due to expansion, will you lease additional space?
Do you plan on making building tenant improvements?
How much expanded space (sq. ft.)?
Annual lease cost of expanded space:
If No, skip to Part 2. If Yes *
, continue below:
Expanding at the current facility or a new facility?
Part 2. Are you currently/planning on
Annual lease cost at current space:
50,275
What year(s)?
Annual lease cost of space:
What year(s)?
2023
Expansions - Plans Over the Next 10 Years
New Operations / Start Up - Plans Over the Next Ten Years
leasing space in Nevada?
Yes
If No, skip to Part 3. If Yes, continue below:
How much space (sq. ft.)?
What year(s)?
Section 6 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.)
Yes
Part 2. Are you currently operating at an
If No, skip to Part 3. If Yes * , continue below:
Do you plan on making building improvements?
Purchase date, if buying (month, year):
Purchase date, if buying (month, year):
When to break ground, if building (month, year)?
Arbitech will be investing into Tenant Improvements and is estimating construction costs to be $1,000,000.- The amount of constructions jobs will depend on the
scope of the project. Arbitech will keep the state abreast as the project progresses.
Estimated completion date, if building (month, year):
How much space (sq. ft.)?
owner occupied building in Nevada?
BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary):
*
Please complete Section 7 - Capital Investment for New Operations / Startup.
*
Please complete Section 7 - Capital Investment for Expansions below.
If Yes * , continue below:
buying an owner occupied facility in Nevada?
No
If No, skip to Part 3. If Yes, continue below:
Part 3. Do you plan on building or buying a
If No, skip to Part 3. If Yes * , continue below:
When to make improvements (month, year)?
If Yes * , continue below:
How much space (sq. ft.)?
If No, skip to Part 3. If Yes *
, continue below:
Due to expansion,
will you be making building improvements?
Current assessed value of real property?
When to make improvements (month, year)?
new facility in Nevada?
Part 3. Are you currently/planning on
building a build-to-suit facility in Nevada?
No
Check the applicable box when form has been completed.
If No, skip to Part 2. If Yes, continue below:
Part 1. Are you currently/planning on
When to make improvements (month, year)?
$555,036.00
5
Overtime Merit increases Tuition assistance
Bonus
PTO / Sick / Vacation COLA adjustments Retirement Plan / Profit Sharing / 401(k)
Other:
No
Medical
Vision
Dental
Qualified after (check one):
Upon employment
Three months after hire date
Six months after hire date Other:
Health Insurance Costs:
Percentage of health insurance premium by (min 65%):
Plan Type:
UHC Harmony HMO and SignatureValue HMO
Employer Contribution (annual premium per employee):
Company: 74%
Employee Contribution (annual premium per employee)
Employee: 26%
Total Annual Premium:
How much capital investment is planned? (Breakout below):
$1,000,000
17,945.58$
Building Costs (if building / making improvements):
Total number of employees after expansion:
OTHER COMPENSATION (Check all that apply):
BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):
[SIGNATURE PAGE FOLLOWS]
Expansions
Building Purchase (if buying): Building Purchase (if buying):
end of the first eighth quarter of new operations?:
Other:
Equipment Cost:
Total:
Land:
$1,053,915
Section 7 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.)
New Operations / Start Up
$2,053,915
Expansions
Current assessed value of personal property in NV:
How much capital investment is planned? (Breakout below):
Equipment Cost:
Total:
How many full-time equivalent (FTE*) employees will be created by the
Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both.)
How many full-time equivalent (FTE*) employees will be created by the
Land:
Building Costs (if building / making improvements):
Is the equipment purchase for replacement
of existing equipment?
How many FTE employees prior to expansion?:
4,665.85$
Average hourly wage of these new employees:
$38.61
Is health insurance for employees and is an option for dependents offered?: Yes (attach health plan and quote or invoice)
*
FTE represents a permanent employee who works an average of 30 hours per week or more, is eligible for health care coverage, and whose position is a "primary job" as set
forth in NAC 360.474.
(Must attach the most recent assessment from the County Assessor's Office.)
13,279.73$
Package includes (check all that apply):
Section 9 - Employee Health Insurance Benefit Program
Average hourly wage of these existing employees:
54
New Operations / Start Up
Average hourly wage of these new employees:
end of the first eighth quarter of expanded operations?:
6
  


 






















7
Site Selection Factors
Company Name: County:
Section 1 - Site Selection Ratings
Availability of qualified workforce:
5
Transportation infrastructure:
4
Labor costs:
4
Transportation costs:
4
Real estate availability:
3
State and local tax structure:
5
Real estate costs:
3
State and local incentives:
5
Utility infrastructure:
3
Business permitting & regulatory structure:
3
Utility costs:
3
Access to higher education resources:
4
Arbitech, LLC
Clark
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.
The economic development incentives offered by the State of Nevada have been an integral factor in our decision making process to locate our operation here in the state. Arbitech
was examining mulitple locations throughout the western states and ultimately, after much due diligence and economic feasibility analysis, Nevada was chosen for its overall incentive
package and pro-business climate.
8
5(A) Capital Equipment List
Company Name:
Arbitech
County:
( b) (c) (d)
# of Units Price per Unit Total Cost
4 $60,000.00 $240,000.00
10 $400.00 $4,000.00
1 $280,000.00 $280,000.00
20 $2,500.00 $50,000.00
36 $1,000.00 $36,000.00
35 $950.00 $33,250.00
35 $350.00 $12,250.00
50 $2,650.00 $132,500.00
50 $450.00 $22,500.00
105 $250.00 $26,250.00
25 $1,650.00 $41,250.00
6 $13,000.00 $78,000.00
6 $1,500.00 $9,000.00
40 $700.00 $28,000.00
35 $350.00 $12,250.00
50 $50.00 $2,500.00
2 $3,500.00 $7,000.00
2 $3,000.00 $6,000.00
165 $201.00 $33,165.00
$1,053,915.00
Yes No
Equipment Name/Description
42U server racks
Shipping stations (rollers, scales)
server rack shelving
Shipping packaging machines
Portable stage racking
Conference room A/V equipment
Is any of this equipment* to be acquired under an operating lease?
*Certain lease hold equipment does not qualify for tax abatements
Clark
Monitors
(a)
8 port switches
Keyboard/mice
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, 2023, the two-year period would be until March
31, 2025. 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.
Forklifts
TOTAL EQUIPMENT COST
Conference room table/chairs
Section 1 - Capital Equipment List
Pallet jacks
Racking- Full warehouse
48 port switches for configuration center and data center
Warehouse/config work benches
Office Desks
Office chairs
Computers
Docking stations
6
Company Name: County:
(b) ( c ) (d) (e) (f) (g) (h)
Position SOC
Code
Number of
Positions
Company
Average Hourly
Wage
Region
Average Hourly
Wage*
Average
Weekly Hours
Annual Wage
per Position
Total Annual
Wages
11-1011 4 $96.15 $101.11 40 $199,992.00 $799,968.00
11-1021 2 $43.26 $60.02 40 $89,980.80 $179,961.60
53-7062 25 $19.00 $18.17 40 $39,520.00 $988,000.00
11-2022 1 $96.15 $57.05 40 $199,992.00 $199,992.00
41-4011 7 $48.07 $42.42 40 $99,985.60 $699,899.20
41-9031 1 $64.90 $53.35 40 $134,992.00 $134,992.00
11-3061 1 $96.15 $43.72 40 $199,992.00 $199,992.00
13-1028 3 $43.26 $31.50 40 $89,980.80 $269,942.40
11-3071 2 $35.82 $41.44 40 $74,505.60 $149,011.20
11-3021 1 $48.07 $61.89 40 $99,985.60 $99,985.60
17-2061 5 $40.86 $50.19 40 $84,988.80 $424,944.00
43-6011 2 $45.68 $29.52 40 $95,014.40 $190,028.80
54 $38.61 $36.65 $4,336,716.80
(a)
Year
3-Year
4-Year
5-Year
*
Column (e) determines if wage is commensurate to current wage ranges in the region the company plans to locate/is located. For these
purposes the mean average hourly wage for the location has been used.
U = Unknown / data set for region is not currently available.
Source: Lighcast
TM
county wages based on the Bureau of Labor Statistics Occupational Employment and Wage Statistics program
and county-level administrative wage data.
Sales Representatives, Wholesale
and Manufacturing, Technical and
Scientific Products
Computer Hardware Engineers
Executive Secretaries and Executive
Administrative Assistants
Sales Engineers
Purchasing Managers
Buyers and Purchasing Agents
Transportation, Storage, and
Distribution Managers
Computer and Information Systems
Managers
$655,200.00
10
$31.50
5(B) Employment Schedule
Arbitech, LLC
Clark
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, 2023, the date would fall in Q2, 2025. The
end of the first eighth quarter would be the last day of Q2, 2025 (i.e., June 30, 2025). 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 360.474.
(b)
Number of New FTE(s)
(c)
Average Hourly Wage
(a)
New Hire Position Title/Description
Chief Executives
Sales Managers
General and Operations Managers
Laborers and Freight, Stock, and
Material Movers, Hand
Directions: Please estimate full-time job growth in Section 2, complete columns (b) and (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. Please enter the
estimated new full time employees
on a year by year basis (not cumulative)
Please use the Bureau of Labor Statistics Standard Occupational Classification System (SOC) link to populate
section (b): https://www.bls.gov/soc/2018/major_groups.htm#11-0000
TOTAL
Section 2 - Employment Projections
(d)
Payroll
10
$31.50
10
$31.50
$655,200.00
$655,200.00
10
5(C) Evaluation of Health Plans Offered by Companies
Company Name:
Arbitech, LLC
County:
Total Number of Full-Time Employees: 54
Average Hourly Wage per Employee $38.61
Average Annual Wage per Employee (implied) $80,308.80
COST OF HELATH INSURANCE
Annual Health Insurance Premium Cost: $17,945.58
Percentage of Premium Covered by:
Company 74%
Employee 26%
HEALTH INSURANCE PLANS:
Base Health Insurance Plan*:
Deductible - per employee -$
Coinsurance N/A
Out-of-Pocket Maximum per employee 2,500$
Additional Health Insurance Plan*:
Deductible - per employee 1,000$ In Network
Coinsurance 30% / 50% in/out of network
Out-of-Pocket Maximum per employee 5,000$ in network
Additional Health Insurance Plan*:
Deductible - per employee 250$ in network
Coinsurance 20% / 50% in/out of network
Out-of-Pocket Maximum per employee 3,500$ in network
*Note: Please list only "In Network" for deducatble and out of the pocket amounts .
[following requirements outlined in the Affordable Care Act and US Code, including 42 USC Section 18022]
Covered employee's premium not to exceed 9.5% of annual wage 7.9%
ME
C
Annual Out-of-Pocket Maximum not to exceed $9,450 (2024)
$2,500
ME
C
Minimum essential health benefits covered (Company offers PPO):
(A) Ambulatory patient services
(B) Emergency services
(C) Hospitalization
(D) Maternity and newborn care
(E) Mental health/substance use disorder/behavioral health treatment
(F) Prescription drugs
(G) Rehabilitative and habilitative services and devices
(H) Laboratory services
(I) Preventive and wellness services and chronic disease management
(J) Pediatric services, including oral and vision care
No Annual Limits on Essential Health Benefits
Name of person authorized for signature Signature
7/10/2023
Title Date
Generalized Criteria for Essential Health Benefits (EHB)
COO
Clark
UHC Harmony HMO and SignatureValue HMO
Copay $20/$40
PCP/Specialist
11
5(D) Company Information
Company Name:
Arbitech, LLC
County:
Glenn Harrick
Jamie Carwana
Are there any subsidiary or affiliate companies sharing tax liability with the applicant company?
No Yes
If Yes, continue below:
Name Title
Clark
Section 1 - Company Interest List
Directions: Please provide a detailed list of owners and/or members of the company. The Governor’s Office of Economic Development
strives to maintain the highest standards of integrity, and it is vital that the public be confident of our commitment. Accordingly, any
conflict or appearance of a conflict must be avoided. To maintain our integrity and credibility, the applicant is required to provide a
detailed list of owners, members, equity holders and Board members of the company.
(a)
( b)
Jimmy Whalen
CEO
David Walker
CFO
Doug Kari
CLO
Brandon Seedorf
COO
Tj Currens
Senior Account Executive
Jeremy Bailey
Director of Sales
Tom Larsen
President
Jared Kvidera
Senior Account Executive
Kevin Whalen
Senior Account Executive
Stuart Jefferies
Executive Director Sourcing
Greg Flanders
VP of Purchasing
Josh Jackson
Director of E-Commerce
Brian Collins
Senior Account Executive
Senior Account Executive
Controller
Please include any additional details below:
Section 2 - Company Affiliates and/or Subsidiaries
Directions: In order to include affiliates/subsidiaries, under the exemption letter, they must to be added to the Contract. Per standard
practice GOED requires a corporate schematic to understand the exact relationships between the companies. Please populate the
below table to show the exact relationships between the companies and include:
1. The names as they would read on the tax exemption letter.
2. Which entity(ies) will do the hiring?
3. Which entity(ies) will be purchasing the equipment?
Name of Subsidiary or Affiliate Entity, Role and Legal Control Relationship
12
13
WELCOME TO ARBITECH
YOUR PREMIER INDEPENDENT DISTRIBUTOR
14
Our Story
Founded in 2000 in Laguna Beach, CA
150 Employees
o 10 Person Sourcing Team
o 25 Sales and Support reps
o 7 Certified Engineers
55,000 sq ft Warehouse
$20M+ in physical inventory
100% channel-focuse
d distributor
2022 Revenue of $230M
We Del
iver Results!
15
Executive Leadership
Jimmy Whalen CEO,
President
David Walker - CFO
Doug Kari - CLO
Stuart Jeffries Exec
Dir of Sourcing
Jamie Carwana Sr.
Controller
Jason McCarty Director
of IT
Bill Cox Director of Sales
16
Customer Service
Customer Service
Every salesperson has an ISR rep to help manage client relationships
We offer a single point of contact, making the customer experience
b
e
tt
e
r
O
ur goal is to provide the best buying experience
We are much more efficient than bigger distributors
Quotes are turned around in hours, not days
We are problem solvers, with outside the box thinking
IT Consultants that are vendor agnostic
E
ach ac
count is assigned a dedicated, experienced account team
that is committed to assisting with quotes, answering technology
questions, and offering alternative solutions at competitive
prices. By providing quality products, quickly and efficiently, and
at low, hassle-free prices, Arbitech enables you to win more
business.
17
Stage and Configuration Center
Config, Flash & Test 60+ servers/day
Asset tagging
Custom Imaging
Software/firmware updates
Pre-Co
nfigure switches
Rack
up equipment for deployment or development
IT Services (customer sends us the gear)
Capabilities
Engineering Services
Pre/Post Sales engineering support
Reverse logistics for older assets
Certified engineers on all major OEM
platforms
18
Customer Success Stories
CDW
Arbitech was founded on the broker sales of Compaq memory and HDDs in 2000
This business evolved into full server configurations, networking, storage and other high run rate IT products
The “Arbitrage Technology” model was born
Synnex
Not only one of our largest vendors, but also one of our largest clients
Arbitech acts as a strategic source for select product lines, as well as discontinued, end of life, used/refurb products
Amazon Marketplace
Our largest active customer
2022 Revenue over $30M
Pr
imary products : IT networking, headsets, docking stations, document scanners, printers, barcode scanners, consumer electronics
ProSys
Helped them source constrained HP toner for one of their largest clients, State Farm
Our procurement team was able find stock overseas, utilizing strategic partnerships
MGM Hotel
Initial relationship formed with proof-of-concept to virtualize Honeywell NVR servers.
Mandalay Bay shooting FBI required replication of 50+ servers in 72 hours.
Arbitech delivered in 48 hours, cementing our relationship with MGM.
Velasea formed with authorized OEM partnerships Lenovo, Nvidia, DELL, NetApp, HPE, Durabook, Evolv, etc.
HID Global
Matt Williams (former Velasea customer, current Amazon team) requested help sourcing constrained NXP components.
Upon confirming pricing/availability, Matt introduced us to HID and we were onboarded as a vendor immediately.
Since we fulfilled 9 separate orders with revenues exceeding $2.4M
Zenitel
Our main contact at HID referred an industry friend to Velasea to help with constrained components, ironically more NXP chips.
Upon confirming pricing/availability we were onboarded as a vendor immediately, selling directly to Fideltroniks plant in Poland.
First order of $725k
19
Our Catalog of Products
20