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HomeMy Public PortalAboutORD15534 SUBSTITUTE BILL NO. 2016-11 SPONSORED BY COUNCILMAN Prather ORDINANCE NO. / 5 —3Z* AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR THE BENEFIT OF MODERN LITHO-PRINT CO., A MISSOURI CORPORATION, CONSISTING OF THE ACQUISITION AND INSTALLATION OF AN OFFSET PRESS AND OTHER EQUIPMENT AT THE COMPANY'S EXISTING FACILITY LOCATED IN THE CITY; AUTHORIZING THE CITY OF JEFFERSON, MISSOURI TO ISSUE ITS TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS (MODERN LITHO-PRINT CO. PROJECT), SERIES 2016, IN A PRINCIPAL AMOUNT NOT TO EXCEED $8,000,000 TO PAY THE COSTS OF THE PROJECT; AUTHORIZING AND APPROVING CERTAIN DOCUMENTS; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE BONDS. WHEREAS, The City of Jefferson, Missouri (the "City"), is authorized under the provisions of Article VI, Section 27 of the Missouri Constitution, as amended, and Sections 100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended (collectively, the "Act"), to purchase, construct, extend and improve certain projects (as defined in the Act) for the purposes set forth in the Act and to issue industrial development revenue bonds for the purpose of providing funds to pay a portion of the costs of such projects and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing, commercial, warehousing and industrial development purposes upon such terms and conditions as the City shall deem advisable; and WHEREAS, The City, in accordance with Section 100.050 of the Act, has prepared a plan for industrial development (the "Plan") for the benefit of Modern Litho-Print Co., a Missouri corporation (the "Company"), with respect to a project consisting of the acquisition and installation of an offset printing press with sheeter, a diecutter and other printing and binding machinery and equipment, all to be installed at the Company's existing facility in the City (the "Project"), notice of such Project was given to the taxing jurisdictions in accordance with Section 100.059.1 of the Act and the City now desires to approve the Plan; and WHEREAS, The City desires to finance the costs of the Project out of the proceeds of a series of industrial development revenue bonds to be issued under the Act; and WHEREAS, The City has and does hereby find and determine that it is desirable for the economic development of the City and within the public purposes of the Act that the City proceed with the issuance of the bonds for the purpose described above; and WHEREAS, the City further finds and determines that it is necessary and desirable in connection with the issuance of the bonds that the City enter into certain documents, and that the City take certain other actions and approve the execution of certain other documents as herein provided. NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. Promotion of Economic Development. The Council hereby finds and determines that the Project will promote the economic welfare and the development of the City, and the issuance of the Bonds (defined below) by the City to pay the costs of the Project will be in furtherance of the public purposes set forth in the Act. Section 2. Approval of Plan. The Council hereby approves the Plan for Industrial Development Project attached hereto as Exhibit A in accordance with Section 100.050 of the Act. Section 3. Authorization and Sale of the Bonds. The City is hereby authorized to issue and sell its Taxable Industrial Development Revenue Bonds (Modern Litho-Print Co. Project), Series 2016, in an aggregate principal amount not to exceed $8,000,000 (the "Bonds"), for the purpose of providing funds to pay the costs of the Project. The Bonds shall be issued and secured pursuant to the herein authorized Trust Indenture and shall bear such date, shall mature at such time, shall be in such denominations, shall bear interest at such rate, shall be in such form, shall be subject to redemption, shall have such other terms and provisions, shall be issued, executed and delivered in such manner and shall be subject to such provisions, covenants and agreements as are specified in the Trust Indenture upon the execution thereof, and the signatures of the officers of the City executing the Trust Indenture shall constitute conclusive evidence of their approval and the City's approval thereof. The sale of the Bonds to the Company at private sale pursuant to the provisions of Section 108.170 of Revised Statutes of Missouri, as amended, at the interest rate and upon the terms set forth in the Trust Indenture is hereby approved. Section 4. Limited Obligations. The Bonds and the interest thereon shall be limited obligations of the City payable solely out of the payments, revenues and receipts derived by the City from the herein authorized Lease Agreement, and such payments, revenues and receipts shall be pledged and assigned to the Trustee as security for the payment of the Bonds as provided in the Trust Indenture. The Bonds and interest thereon shall not be deemed to constitute a debt or liability of the City within the meaning of any constitutional provision, statutory limitation or City Charter provision and shall not constitute a pledge of the full faith and credit of the City. The issuance of the Bonds shall not, directly, indirectly or contingently, obligate the City to levy any form of taxation therefor or to make any appropriation for their payment. Section 5. Approval and Authorization of Documents. The following documents (the "City Documents") are hereby approved in substantially the forms presented to the Council at this meeting (copies of which documents shall be filed in the records of the City), and the City is hereby authorized to execute and deliver the City Documents with such changes therein as shall be approved by the officials of the City executing such documents, such officials' signatures thereon being conclusive evidence of their approval thereof: (a) Trust Indenture dated as of the date set forth therein (the "Trust Indenture"), between the City and UMB Bank, N.A. (the "Trustee"), pursuant to which the Bonds shall be issued and the City shall pledge and assign the payments, revenues and receipts received pursuant to the Lease Agreement to the Trustee for the benefit and security of the owners of the Bonds upon the terms and conditions as set forth in the Trust Indenture; 2 (b) Lease Agreement dated as of the date set forth therein (the "Lease Agreement"), between the City and the Company, under which the City will provide funds for the purchase and installation of the Project and lease the Project to the Company pursuant to the terms and conditions in the Lease Agreement, in consideration of rental payments by the Company which will be sufficient to pay the principal of, premium, if any, and interest on the Bonds; (c) Bond Purchase Agreement dated as of the date set forth therein, between the City and the Company, pursuant to which the Company agrees to purchase the Bonds; and (d) Performance Agreement dated as of the date set forth therein, between the City and the Company, pursuant to which the City has granted the Company certain rights with respect to the abatement of ad valorem personal property taxes on the Project in consideration for the Company's expectation to create and maintain a certain level of employment at the Project site. Section 6. Execution of Documents. The Mayor is hereby authorized and directed to execute the Bonds and to deliver the Bonds to the Trustee for authentication for and on behalf of and as the act and deed of the City in the manner provided in the Indenture. The Mayor is hereby authorized and directed to execute the City Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance, for and on behalf of and as the act and deed of the City. The City Clerk is hereby authorized and directed to attest to and affix the seal of the City to the Bonds and the City Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. Section 7. Further Authority. The City shall, and the officials, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to carry out, comply with and perform the duties of the City with respect to the Bonds and the City Documents. Section 8. Effective Date. This Ordinance shall take effect and be in full force and effect from and after its passage by the City Council and approval by the Mayor. Passed: yti e__ Y ciqO/4, Approved:?A(A,Le' 20l 0 C‘AAAL.e: ()AirA, CLw €: (01ACe. Presiding-Officer - Mayor Carrie Ter in ( 1-71(41, ATTEST:'-", _ _ APPROVED AS TO FORM: tiAtiil a� 57/ City Clerk City Counselor 3 SUBSTITUTE EXHIBIT A TO ORDINANCE PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT FOR MODERN-LITHO PRINT CO. CITY OF JEFFERSON, MISSOURI PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND COST-BENEFIT ANALYSIS FOR MODERN LITHO-PRINT CO. /1 GILMOI,E BELL oit,ea=r.cEu.=c TABLE OF CONTENTS Page PURPOSE OF THIS PLAN 1 II. GENERAL DESCRIPTION OF CHAPTER 100 FINANCINGS 1 General 1 Issuance and Sale of Bonds 1 Property Tax Abatement 2 III. DESCRIPTION OF THE PARTIES 2 Modern Litho-Print Co. 2 City of Jefferson,Missouri. 2 IV. REQUIREMENTS OF THE ACT 2 Description of the Project 2 Estimate of the Costs of the Project. 0 2 Source of Funds to be Expended for the Project 3 Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed of by the City. 3 Affected Taxing Jurisdictions. 3 Current Assessed Valuation 0 3 Payments in Lieu of Taxes. 3 Cost/Benefit Analysis and Discussion of Exhibits. 4 V. ASSUMPTIONS AND BASIS OF PLAN 4 EXHIBIT 1- SUMMARY OF KEY ASSUMPTIONS EXHIBIT 2-SUMMARY OF TAX IMPACT ANALYSIS EXHIBIT 3-PROJECTED TAX REVENUES WITHOUT ABATEMENT EXHIBIT 4-PROJECTED VALUE OF PAYMENTS IN LIEU OF TAXES EXHIBIT 5-PROJECTED VALUE OF TAX ABATEMENT * * * CITY OF JEFFERSON,MISSOURI PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND COST-BENEFIT ANALYSIS MODERN LITHO-PRINT CO. I. PURPOSE OF THIS PLAN On June 6,2016,the City Council of the City of Jefferson, Missouri(the "City")will consider an ordinance approving this Plan (defined below) and authorizing the issuance by the City of its taxable industrial development revenue bonds in the aggregate principal amount of not to exceed $8,000,000 (the "Bonds"), to finance the costs of equipping an industrial development project(the "Project") for Modern Litho-Print Co., a Missouri corporation (the "Company"), as more fully described and defined herein. The Bonds will be issued pursuant to the provisions of Sections 100.010 to 100.200 of the Revised Statutes of Missouri, as amended, and Article VI, Section 27(b) of the Missouri Constitution, as amended (collectively,the"Act"). Gilmore & Bell, P.C. has prepared this Plan for an Industrial Development Project and Cost- Benefit Analysis (the "Plan") to satisfy requirements of the Act and to analyze the potential costs and benefits, including the related tax impact on all affected taxing jurisdictions, of using industrial development revenue bonds to finance the Project and to facilitate abatement of ad valorem taxes on the bond-financed property. II. GENERAL DESCRIPTION OF CHAPTER 100 FINANCINGS General. The Act authorizes cities, counties, towns and villages to issue industrial development bonds to finance the purchase, construction, extension and improvement of warehouses, distribution facilities, research and development facilities, office industries, agricultural processing industries, service facilities that provide' interstate commerce, industrial plants and other commercial facilities. Bond proceeds may be used to finance land,buildings, fixtures and machinery. Issuance and Sale of Bonds. Revenue bonds issued pursuant to the Act do not require voter approval and are payable solely from revenues received from the project. The municipality issues its bonds pursuant to a trust indenture entered into between the municipality and a bank or trust company acting as trustee. In exchange, the benefited company promises to make payments that are sufficient to pay the principal of and interest on the bonds as they become due. Thus,the municipality merely acts as a conduit for the financing. If proceeds of the revenue bonds are used to pay the costs or reimburse the costs of purchasing and installing personal property only, concurrently with the closing of the bonds, the company will convey to the municipality title to the personal property included in the Project(the municipality must be the legal owner of the property while the bonds are outstanding for the property to be eligible for tax abatement, as further described below). At the same time, the municipality will lease the personal property included in the Project back to the benefited company pursuant to a lease agreement. The lease agreement will require the company, acting on behalf of the municipality,to use the bond proceeds to pay the costs or reimburse the costs of purchasing and installing the personal property included in the Project. Under the lease agreement, the company typically: (1) will unconditionally agree to make payments sufficient to pay the principal of and interest on the bonds as they become due; (2)will agree, at its own expense, to maintain the project, to pay all taxes and assessments with respect to the project, and to maintain adequate insurance; (3) has the right, at its own expense, to make certain additions, modifications or improvements to the project; (4) may assign its interests under the lease agreement or GILMOI.EBELL sublease the project while remaining responsible for payments under the lease agreement; (5) will covenant to maintain its corporate existence during the term of the bond issue; and (6) will agree to indemnify the municipality for any liability the municipality might incur as a result of its participation in the transaction. Property Tax Abatement. Under Article X, Section 6 of the Missouri Constitution and Section 137.100 of the Missouri Revised Statutes, as amended, all property of any political subdivision is exempt from taxation. In a typical transaction,the municipality holds fee title to the project and leases the project to the benefited company. Although the Missouri Supreme Court has held that the leasehold interest is taxable, it is taxable only to the extent that the economic value of the lease is less than the actual market value of the lease. See Iron County v. State Tax Commission, 437 S.W.2d 665 (Mo. 1968) (en bans) and St. Louis County v. State Tax Commission, 406 S.W.2d 644 (Mo. 1966) (en bane). If the rental payments under the lease agreement equal the actual debt service payments on the bonds, the leasehold interest should have no "bonus value" and the bond-financed property should be exempt from ad valorem taxation and personal property taxation, as applicable,so long as the bonds are outstanding. If the municipality and the company determine that partial tax abatement is desirable, the company may agree to make "payments in lieu of taxes." The amount of payments in lieu of taxes is negotiable. The payments in lieu of taxes are payable by December 31 of each year,and are distributed to the municipality and to each political subdivision in the same manner and in the same proportion as property taxes would otherwise be distributed under Missouri law. III. DESCRIPTION OF THE PARTIES Modern Litho-Print Co. The Company, a Misouri corporation incorporated in 1937, is headquartered in the City, with additional facilities located in St. Louis, Missouri. The Company has been serving the print needs of client organizations for nearly 80 years. Regarded as a premier printer of specialized publications for niche' markets, the Company's capabilities include high-performance offset print, finishing and distribution of marketing and member communications, advanced variable data print, direct mail and mailing services. The Company is a G7© Master Qualified Printer and holds renewable resource FSC and SFI Chain-of-Custody Certifications. Markets of interest include non-profit and member-based organizations. City of Jefferson, Missouri. The City is a home rule charter city and municipal corporation organized and existing under the laws of the State of Missouri. The City is authorized and empowered pursuant to the provisions of the Act to purchase, construct, extend and improve certain projects (as defined in the Act) and to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing, commercial, warehousing and industrial development purposes upon such terms and conditions as the City deems advisable. IV. REQUIREMENTS OF THE ACT Description of the Project. The Project consists of the acquisition and installation of equipment and machinery at the Company's manufacturing plant located at 6009 Stertzer Road in the City. The Project will further the economic development and employment in the City, other local taxing districts and the State of Missouri, and it will further the general welfare of the City, said taxing districts and the State of Missouri. Estimate of the Costs of the Project. The Company expects the investment for the Project to be approximately$8,000,000. The Cost-Benefit Analysis is based on this expected investment. GILMOI.EBELL -2- Source of Funds to be Expended for the Project. The source of funds to be expended for the Project will be the proceeds of the Bonds in the maximum principal amount of$8,000,000 and other available funds of the Company, if needed. The Bonds will be payable solely from the revenues derived by the City from the lease or otherdisposition of the Project(as further described below). The Bonds will not be an indebtedness or general obligation, debt or liability of the City, Cole County, Missouri or the State of Missouri. The Bonds shall be issued upon such terms, in such amounts and at such time as shall be satisfactory to the City and the Company. Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed of by the City. The Company will convey the Project(consisting solely of the equipment,machinery and other personal property,the costs of which were paid or reimbursed by proceeds of the Bonds)to the City. The City will lease the Project to the Company under a lease agreement (the "Lease"). The lease payments under the Lease will equal the principal of and interest on the Bonds. The Company will also make certain payments in lieu of taxes to the City for distribution to the affected taxing districts, as further described herein. Under the terms of the Lease with the City, the Company will have the option to purchase the Project at any time. The Lease will terminate on December 31, 2025, unless terminated sooner pursuant to the terms thereof. Affected Taxing Jurisdictions. The following are the taxing jurisdictions affected by Project. There is no community college district affected by the Project. • City of Jefferson(includes Fire Pension Fund) • Cole County(General Revenue and Road&Bridge) • Cole County Special Services(Developmental Disabilities Board) • Library District • Jefferson City School District • State of Missouri Blind Pension Fund Current Assessed Valuation. The most recent equalized assessed valuation on the Project Site, as of January 1,2016,is $0(since no existing personal property is included in the Project). The equalized assessed valuation of personal property included in the Project after development has been completed by December 31, 2018, is estimated to be $1,589,761. This valuation was calculated based upon the Company's anticipated investment of$8,000,000 in personal property, less depreciation, multiplied by the assessment rate of 33 1/3%for the Project. There is no real property included in the Project. Payments in Lieu of Taxes. The Company will be required to make payments in lieu of taxes on the Project in an amount equal to 25% of the amount of personal property ad valorem taxes which would have been paid in each year had the Project not been exempt from such taxes. The Company has represented that it will create 50 new full-time jobs at the Project Site (the "New Jobs")by the end of the fifth year of operations (by not later than August 30, 2021), with 30 of the New Jobs to be created by the end of the third year of operations(by not later than August 30,2019). The Company will be required to report the number of New Jobs as of October 315` of each year, beginning October 31, 2019. If the Company fails to create and/or retain the New Jobs, the amount of the payment in lieu of taxes will be increased proportionately by the amount the Company failed to meet its targets. Such amounts will be calculated as set forth in a Performance Agreement to be entered into between the City and the Company with respect to property tax abatement. Failure to create and maintain the number of New Jobs by the dates set forth in the preceding paragraph will not be a default under the Performance /I GILMORJ BELL -3- Agreement or the Lease with the remedy instead being an increase in the required payments in lieu of taxes as described in this paragraph. Such payments in lieu of taxes would, after reduction for actual costs of the City for distributing such payments, be distributed among the taxing jurisdictions in proportion to the amount of taxes which would have been paid in each year had the Project not been exempt from taxation, pursuant to Section 100.050.3 of the Act. Cost-Benefit Analysis and Discussion of Exhibits. In compliance with Section 100.050.2(3) of the Revised Statutes of Missouri, as amended,this Plan has been prepared to show the costs and benefits to the City and to other taxing jurisdictions affected by the tax abatements of the Project. The following is a summary of the exhibits attached to this Plan that shows the direct tax impact the Project is expected to have on each taxing jurisdiction. This Plan does not attempt to quantify the overall economic impact of the Project. Summary of Cost-Benefit Analysis. Exhibit 2 presents a summary for each affected taxing district of(1)the total estimated tax revenues that would be generated if the Project did not receive tax abatement, (2)the total estimated value of the payments in lieu of taxes to be made by the Company for the proposed abatement period and (3) the total estimated value of the abatement to the Company. Please note that the actual value of the Project may differ from the estimated value assumed in this Plan and may impact the value of the payments in lieu of taxes to be made by Company. Personal Property Tax Revenues. Exhibit 3 provides the projected tax revenues that would be generated from the Project without tax abatement. Exhibit 4 provides the projected value of the payments in lieu of taxes to be made by the Company based on an estimated assessed value of the Project. Exhibit 5 provides the projected value of the tax abatement to the Company based on an estimated assessed value of the Project. Refer to the following Section V for the assumptions related to the determination of the assessed values and the tax formulas. V. ASSUMPTIONS AND BASIS OF PLAN In preparing this Plan, we have made some key assumptions to estimate the fiscal impact of the abatement proposed for the Project. See Exhibit 1 for a summary of these assumptions. In addition to the foregoing, in order to complete this Plan,we have generally reviewed and relied upon information furnished to us by, and have participated in conferences with, representatives of the City and representatives of the Company, and have relied upon information prepared by Cole County, Missouri, and other persons as we have deemed appropriate. We do not assume any responsibility for the accuracy, completeness or fairness of any of the information provided to us and make no representation that we have independently verified the accuracy,completeness or fairness of such information. * * * GILMOIkEBELL -4- EXHIBIT 1 SUMMARY OF KEY ASSUMPTIONS 1. The cost of acquiring the Project is estimated not to exceed$8,000,000. 2. The personal property comprising the Project will be purchased according to the following schedule: 2016 2017 2018 $6,500,000 $800,000 $700,000 3. The Project will be conveyed to the City by December 31 of the year of purchase and leased to the Company with an option to purchase. As long as the Project is owned by the City, it will be exempt from ad valorem taxes. 4. The Project will be excluded from the calculation of ad valorem property taxes beginning (i)in 2017 through 2023 for the personal property purchased in 2016, (ii)in 2018 through 2024 for the personal property purchased in 2017,and(iii)in 2019 through 2025 for the personal property purchased in 2018. 5. The Company will make payments in lieu of taxes on the Project in an amount equal to 25% of the personal property taxes that would otherwise be due on the Project for a period ending seven years after the year of purchase of such personal property. The Company will make payments in lieu of taxes equal to 100%of the personal property taxes due on the Project after 7 years of abatement until the entire Project is conveyed back to the Company which is required to occur not later than December 31,2025. 6. Property taxes are calculated using the following formula: (Assessed Value*Tax Rate)/100 7. The assessed value of the Project is calculated using the following formula: (Cost*Depreciation Factor) *Assessment Ratio of 33-1/3% 8. In determining the assessed valuation of the personal property comprising the Project, a depreciation factor is applied at the end of each year which depends on the recovery period of such personal property. The personal property included in the Project has a seven-year recovery period. The depreciation factors used for such personal property are as follows: Depreciation Depreciation Year Factor Year Factor 0 100.00% 4 42.88% 1 89.29 5 30.63 2 70.16 6 18.38 3 55.13 7 10.00 9. The tax rates used in this Plan reflect the rates in effect for the tax year 2015. The tax rates were held constant through the 2025 tax year. G[LMOIkEBELL City of Jefferson City,Missouri (Modern Litho-Print Co.) COST BENEFIT ANALYSIS PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT GIL.MOkEBELL .‘L.tf,@C:l.P. EXHIBIT 1 Summary of Key Assuptions • Initial year taxes assessed 2017 • Appraised value of personal property • 2016 $ 6,500,000 • 2017 800,000 • 2018 700,000 • Annual growth rate of appraised value of personal property 0.0% • Assessed value as a percentage of appraised value(personal property) 33.33% • Terms of abatement: Personal property Years 1 to 7 75% • Personal Property is depreciated using the following 7 year recovery period schedule: Year Recovery Period in Years 3 5 7 10 15 20 0 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 1 75.00% 85.00% 89.29% 92.50% 95.00% 96.25% 2 37.50% 59.50% 70.16% 78.62% 85.50% 89.03% 3 12.50% 41.65% 55.13% 66.83% 76.95% 82.35% 4 5.00% 24.99% 42.88% 56.81% 69.25% 76.18% 5 5.00% 10.00% 30.63% 48.07% 62.32% 70.46% , 6 5.00% 10.00% 18.38% 39.33% 56.09% 65.18% 7 5.00% 10.00% 10.00% 30.59% 50.19% 60.29% 8 5.00% 10.00% 10.00% 21.85% 44.29% 55.77% 9 5.00% 10.00% 10.00% 15.00% 38.38% 51.31% 10 5.00% 10.00% 10.00% 15.00% 32.48% 46.85% 11 5.00% 10.00% 10.00% 15.00% 26.57% 42.38% 12 5.00% 10.00% 10.00% 15.00% 20.67% 37.92% 13 5.00% 10.00% 10.00% 15.00% 15.00% 33.46% 14 5.00% 10.00% 10.00% 15.00% 15.00% 29.00% 15 5.00% 10.00% 10.00% 15.00% 15.00% 24.54% 16 5.00% 10.00% 10.00% 15.00% 15.00% 20.08% 17 5.00% 10.00% 10.00% 15.00% 15.00% 20.00% City of Jefferson,Missouri (Modern Litho-Print Co.) Cost Benefit Analysis -1- 5/17/2016 EXHIBIT 2 Summary of Tax Impact Analysis Tax Revenue for Revenue Personal Property Generated Without from PILOT Value of Tax Distribution Tax Rate Abatement Payments Abatement State of Missouri 0.0300 $ 2,669 $ 633 $ 1,899 Cole County GR 0.0750 6,674 1,582 4,747 Cole County Special Services 0.0900 8,008 1,899 5,696 Jefferson City School District 3.6930 328,615 77,907 233,721 Jefferson City 0.4600 40,932 9,704 29,112 Library 0.2000 17,797 4,219 12,658 Jefferson City Fire Pension Fund 0.0960 8,542 2,025 6,076 Road&Bridge 0.2700 24,025 5,696 17,088 4.9140 $ 437,263 $ 103,665 $ 310,996 City of Jefferson,Missouri (Modern Litho-Print Co.) Cost Benefit Analysis -2- 5/17/2016 EXHIBIT 3 Projected Tax Revenues Without Abatement Estimated Assessed Value of Personal Property $1,934,423 $1,758,064 $1,589,761 $1,239,663 $ 906,543 $ 579,909 $ 337,116 $ 286,191 $ 266,640 Tax Rate per Taxing Jurisdiction $100 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total State of Missouri 0.0300 $ 580 $ 527 $ 477 $ 372 $ 272 $ 174 $ 101 $ 86 $ 80 $ 2,669 Cole County GR 0.0750 1,451 1,319 1,192 930 680 435 253 215 200 6,674 Cole County Special Services 0.0900 1,741 1,582 1,431 1,116 816 522 303 258 240 8,008 Jefferson City School District 3.6930 71,438 64,925 58,710 45,781 33,479 21,416 12,450 10,569 9,847 328,615 Jefferson City 0.4600 8,898 8,087 7,313 5,702 4,170 2,668 1,551 1,316 • 1,227 40,932 Library 0.2000 3,869 3,516 3,180 2,479 1,813 1,160 674 572 533 17,797 Jefferson City Fire Pension Fund 0.0960 1,857 1,688 1,526 1,190 870 557 324 275 256 8,542 Road&Bridge 0.2700 5,223 4,747 4,292 3,347 2,448 1,566 910 773 720 24,025 4.9140 $ 95,058 $ 86,391 $ 78,121 $ 60,917 $ 44,548 $ 28,497 $ 16,566 $ 14,063 $ 13,103 $ 437,263 7-Year Personal Property Assessed Value 2017 2018 2019 2020 2021 2022 2023 2024 2025 $6,500,000 1,934,423 1,519,981 1,194,364 928,974 663,584 398,194 216,645 216,645 216,645 800,000 238,083 187,075 146,999 114,335 81,672 49,008 26,664 26,664 700,000 208,322 163,690 128,624 100,043 71,463 42,882 23,331 8,000,000 1,934,423 1,758,064 1,589,761 1,239,663 906,543 579,909 337,116 286,191 266,640 City of Jefferson,Missouri (Modern Litho-Print Co.) Cost Benefit Analysis • -3- 5/17/2016 EXHIBIT 4 Projected Value of Payments in Lieu of Taxes Estimated Assessed Value of Personal Property - Purchased in2016 $ 1,934,423 $ 1,519,981 $ 1,194,364 $ 928,974 $ 663,584 $ 398,194 $ 216,645 $ 216,645 $ 216,645 PILOT Percentage 25% 25% 25% 25% 25% 25% 25% Estimated Assessed Value of Personal Property Purchased in 2017 $ 238,083 $ 187,075 $ 146,999 $ 114,335 $ 81,672 $ 49,008 $ 26,664 $ 26,664 PILOT Percentage 25% 25% 25% 25% 25% 25% 25% Estimated Assessed Value of Personal Property Purchased in 2018 $ 208,322 $ 163,690 $ 128,624 $ 100,043 $ 71,463 $ 42,882 $ 23,331 PILOT Percentage 25% 25% 25% 25% 25% 25% 25% Tax Rate per Taxing Jurisdiction $100 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total State of Missouri 0.0300 $ 145 $ 132 $ 119 $ 93 $ 68 $ 43 $ 25 $ 5 $ 2 $ 633 Cole County GR 0.0750 • 363 330 298 232 170 109 63 13 4 1,582 Cole County Special Services 0.0900 435 396 358 279 204 130 76 16 5 1,899 Jefferson City School District 3.6930 17,860 16,231 14,677 11,445 8,370 5,354 3,112 642 215 77,907 Jefferson City 0.4600 2,225 2,022 1,828 1,426 1,043 667 388 80 27 9,704 Library 0.2000 967 879 795 620 453 290 169 35 12 4,219 Jefferson City Fire Pension Fund 0.0960 464 422 382 298 218 139 81 17 6 2,025 Road&Bridge 0.2700 1,306 1,187 1,073 837 612 391 228 47 16 5,696 4.9140 $ 23,764 $ 21,598 $ 19,530 $ 15,229 $ 11,137 $ 7,124 $ 4,141 $ 854 $ 287 $103,665 City of Jefferson,Missouri (Modern Litho-Print Co.) Cost Benefit Analysis -4- 5/17/2016 EXHIBIT 5 Projected Value of Tax Abatement Estimated Assessed Value of Personal Property Purchased in 2016 $ 1,934,423 $ 1,519,981 $ 1,194,364 $ 928,974 $ 663,584 $ 398,194 $ 216,645 $ 216,645 $ 216,645 Abatement Percentage 75% 75% 75% 75% 75% 75% 75% Estimated Assessed Value of Personal Property Purchased in 2017 $ 238,083 $ 187,075 $ 146,999 $ 114,335 $ 81,672 $ 49,008 $ 26,664 $ 26,664 Abatement Percentage 75% 75% 75% 75% 75% 75% 75% Estimated Assessed Value of Personal Property Purchased in 2018 $ 208,322 $ 163,690 $ 128,624 $ 100,043 $ 71,463 $ 42,882 $ 23,331 Abatement Percentage 75% 75% 75% 75% 75% 75% 75% Tax Rate per Taxing Jurisdiction $100 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total State of Missouri 0.0300 $ 435 $ 396 $ 358 $ 279 $ 204 $ 130 $ 76 $ 16 $ 5 $ 1,899 Cole County GR 0.0750 1,088 989 894 697 510 326 190 39 13 4,747 Cole County Special Services 0.0900 1,306 1,187 1,073 837 612 391 228 47 16 5,696 Jefferson City School District 3.6930 53,579 48,694 44,032 34,336 25,109 16,062 9,337 1,926 646 233,721 Jefferson City 0.4600 6,674 6,065 5,485 4,277 3,128 2,001 1,163 240 80 29,112 Library 0.2000 2,902 2,637 2,385 1,859 1,360 870 506 104 35 12,658 Jefferson City Fire Pension Favid 0.0960 1,393 1,266 1,145 893 653 418 243 50 17 6,076 Road&Bridge 0.2700 3,917 3,560 3,219 2,510 1,836 1,174 683 141 47 17,088 4.9140 $ 71,293 $ 64,793 $ 58,591 $ 45,688 $ 33,411 $ 21,373 $ 12,424 $ 2,563 $ 860 $ 310,996 City of Jefferson,Missouri (Modern Litho-Print Co.) Cost Benefit Analysis -5- 5/17/2016