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
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