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HomeMy Public PortalAboutORD14959 BILL NO. 2012-4 SPONSORED BY COUNCILMAN Schulte ORDINANCE NO. 14959 AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR MODERN LITHO-PRINT CO. IN CONNECTION WITH THE PROPOSED ISSUANCE BY THE CITY OF JEFFERSON, MISSOURI, OF ITS TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $4,000,000 TO FINANCE THE COSTS OF SUCH PROJECT. WHEREAS, the City of Jefferson, Missouri (the "City"), is authorized and empowered under the provisions of Article Vl, Section 27(b) 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 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, Modern Litho-Print Co., a Missouri corporation (the "Company'), has requested that the City (a) prepare and approve a plan for the acquisition and installation of an offset press at the Company's existing facility located in the City (the "Project"), (b) issue its taxable industrial development revenue bonds (the "Bonds") to provide funds to pay the costs of the Project, and (c) lease the Project to the Company, all in accordance with and pursuant to the Act; and WHEREAS, the City has prepared a plan for industrial development with respect to the Project (the "Plan") as required by Section 100.050 of the Act, notice of the Project was given to the taxing jurisdictions in accordance with Section 100.059.1 of the Act, the Council has fairly and duly considered all comments submitted to the Council regarding the proposed Plan, and the City now desires to approve the Plan; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. Approval of Plan for Project. The Council hereby approves the Plan for Industrial Development Project, including the description of the Project, the estimate of the cost of the Project, the sources of funds to be expended for the Project and the terms of the Lease, which Plan is attached hereto as Exhibit A. Section 2. Preparation of Bond Documents. The City hereby authorizes the preparation of all documents required in connection with the issuance of the Bonds. Approval and execution of such bond documents will be authorized by a subsequent ordinance of the Council. Section 3. 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 by the City Council and APPROVED by the Mayor of the City of Jefferson, Missouri, thisL day of ti 2012. Passed: dT �I ' %� Approved: Presiding cer Mayor ATTEST: APPROVED AS TO FORM: C ty'Clerk ty Counselor -2- EXHIBIT A TO ORDINANCE See Attached PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT FOR MODERN LITHO-PRINT CO. Modern Litho-Print Co., a Missouri corporation (the "Company"), has proposed a plan for an industrial development project as described herein to the City of Jefferson, Missouri (the "City"), for approval,to be carried out pursuant to Article Vt, Section 27(b)of the Missouri Constitution,as amended, and Sections 100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended, as follows: 1. Description of the Project. The Project consists of the acquisition and installation of a an offset press (the "Project') at the Company's existing facility in the City at 6009 Stertzer Road, Jefferson City, Missouri. The Project will be leased from the City to the Company pursuant to a lease agreement that will require the Company to purchase the Project at the end of the lease term. 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. 2. Estimate of the Cost of the Project. The Company expects the initial investment for the Project to be approximately $4,000,000 for equipment. The cost-benefit analysis attached as Exhibit 1 is based on the expected total investment of$4,000,000. 3. Source of Funds to be Expended for the Project. The source of funds to be expended for the Project will be proceeds of the sale of taxable industrial development revenue bonds (the`Bonds") to be issued by the City. 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. 4. Statement of the Terms Upon Which the Project is to be Leased and Otherwise Disposed of by the City. The Project will be leased by the City to the Company in accordance with the terms of a lease agreement (the "Lease") for lease payments equal to the principal and interest on the proposed Bonds. The Company is required to exercise an option to purchase the Project at the termination of the Lease. The Bonds will be payable solely from the revenues derived by the City from the Lease or other disposition of the Project and the Bonds will not be an indebtedness or general obligation, debt or liability of the City. The Lease will be for a term of five years ending in the final year of tax abatement provided. 5. Affected Taxing Jurisdictions: • City of Jefferson • Cole County Road& Bridge • Library District • Cole County • Jefferson City School District • Handicap Board • State of Missouri Blind Pension Fund 6. Equalized Assessed Valuation. The most recent equalized assessed valuation on the real property and personal property included in the Project, as of January 1, 2011, is $0. Estimates as to the equalized assessed valuation of real property and personal property included in the Project after development are $0 for real property and $1,040,675 for personal property. Although there may be incidental improvements to real property as a result of the Project, the Project only consists of and the Bond proceeds will only pay for, costs associated with, personal property. 7. Cost-Benefit Analvsis. Attached hereto as Exhibit 1 is an analysis of the costs and benefits of the initial Project investment on each taxing district over a period of ten years. Personal property taxes on the Project will be fully abated for five years after which the Project will be added to the tax rolls. The abatement was offered to the Company in an effort to help the Company remain competitive in the printing business. The projections in Exhibit 1 are estimates based on numerous assumptions (as described in Exhibit 1). The actual revenues generated from the Project may be significantly different from those shown in the exhibits. 8. Payments in Lieu of Taxes. The Company has been offered full tax abatement on all costs financed with the Bonds for a period of five years. Consequently, no payments in lieu of taxes are expected to be made during this five-year period. ? ate Taxation Division DERARTMENT OF REVENUE Post Office Box 453 Jefferson City, Missouri 65105-0453 (573) 751-5900 E-mail: Wanda.Meller@dor.mo.gov Phyllis Powell City Clerk 320 E. McCarty St. Jefferson City, MO 65101 April 23, 2012 Dear Ms. Powell: The Department of Revenue acknowledges receipt of your letter concerning the hearing on May 7, 2012, for the Modern Litho-Print Co., Redevelopment Area TIF. We respectfully decline comment on the above hearing. If you have any further questions concerning this matter, please feel free to contact the County Tax Section at the above address or telephone number. Sincerely, Doug Loethen Supervisor Sales/Use Tax DL:WJM:wm