HomeMy Public PortalAboutORD14817 BILL NO. 2011-31
SPONSORED BY COUNCILMAN Koon
ORDINANCE NO. 4—T/ r�/
AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT
PROJECT FOR UNILEVER SUPPLY CHAIN, INC. IN CONNECTION WITH THE
PROPOSED ISSUANCE BY THE CITY OF JEFFERSON, MISSOURI, OF ITS
INDUSTRIAL DEVELOPMENT REVENUE BONDS IN A PRINCIPALAMOUNT NOTTO
EXCEED $17,000,000 TO FINANCE THE COSTS OF SUCH PROJECT.
WHEREAS, the City of Jefferson, Missouri (the "City"), is authorized and empowered
under the provisions of Article VI, 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, Unilever Supply Chain, Inc., a Delaware corporation (the "Company"), has
requested that the City (a) prepare and approve a plan for an industrial
development project involving the acquisition and installation of new
packaging lines and processing equipment at, and the relocation of
existing out-of-state Company assets to, the existing plant located in the
City (the "Project'), (b) issue its 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 to 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: Approved:
Presiding i Mayor
ATTEST: APP VED " TO FORM:
City Clerk City Counselor
-2-
EXHIBIT A
TO ORDINANCE
See Attached
PLAN FOR INDUSTRIAL DEVELOPME NT PROJECT
FOR
UNILEVER SUPPLY CHAIN,INC.
Unilever Supply Chain, Inc., a Delaware 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 VI, 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 Proiect. The Project consists of the acquisition and installation of a
project (the "Project") that will include new packaging lines and processing equipment at, and the
relocation of existing out-of-state Company assets to, the existing plant in the City at 2900 W. Truman
Blvd., Jefferson City, Missouri. The Project will be leased from the City to the Company pursuant to a
lease agreement that will provide the Company an option to purchase the Project. 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 Proiect. The Company expects the initial investment for the
Project to be approximately $17,000,000 for equipment. The cost-benefit analysis attached as Exhibit 1
is based on the expected total investment of$17,000,000.
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 Countv. 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 will have the 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 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, 2010, 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 $5,544,000 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 Analysis. Attached hereto as Exhibit 1 is an analysis of the costs and
benefits of the initial Project investment on each taxing district. The projections therein 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.
S. 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.
-2-
EXHIBIT 1
Cost-Benefit Analysis
EXHIBIT 1
Summary of Tax Impact Analysis
Revenue
Tax Revenue Generated
Without from Pilot Value of
Taxing Jurisdiction Abatement Payments Abatement
Jefferson City School District $ 599,673.65 $ - $ 599,673.65
Jefferson City 90,693.11 - 90,693.11
State of Missouri 4,892.63 - 4,892.63
Library 31,899.97 - 31,899.97
Senate Bill 40 14,368.03 - 14,368.03
General Revenue 19,179.13 - 19,179.13
Road&Bridge 44,033.70 - 44,033.70
$
-804,740.22 $ $ 804,740.22
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May 25,2011
To: Taxing Jurisdictions Listed
on the Attached Sheet
Re: Proposed Plan for Industrial Development Project in the City of Jefferson; Missouri
Ladies and Gentlemen:
The undersigned, on behalf of the City Council of the City of Jefferson, Missouri, provides
notice that the City Council is considering the approval of a Plan for Industrial Development Project in
connection with the issuance of industrial development revenue bonds pursuant to Sections 100.010 to
100.200 of the Revised Statutes of Missouri, as amended, for the purpose of providing tax incentives to
Unilever Supply Chain, Inc.
The City Council will consider approval of the Plan for Industrial Development Project during
the Council's regular meeting at 6:00 p.m. on July 5, 2011, in Council Chambers at City Hall in the John
G. Christy Municipal Building, 320 E. McCarty Street, in Jefferson City, Missouri. The Plan contains a
cost-benefit analysis showing the impact of the proposed project on affected taxing jurisdictions. The
City Council is expected to consider an ordinance approving the Plan for Industrial Development.
Enclosed is a copy of the plan for your review. The City invites all affected taxing jurisdictions
to submit comments on the proposed Plan to the City Council. All comments of the taxing jurisdictions
will be fairly and duly considered by the City Council.
Thank you for your assistance.
Very truly yours,
Phyllis Powell, CMC, City Cleric
TAXING JURISDICTIONS
Missouri Department of Revenue Jefferson City School District
County Tax Section Jefferson City Public Schools
Blind Pension Fund 315 E. Dunklin Street
301 West High, Room 330 Jefferson City, MO 65101
Jefferson City, MO 65105 Contact person: Jason Hoffman
Cole County City of Jefferson
Cole County Commission City Hall
Cole County Road and Bridge John G. Christy Municipal Building
311 E. High Street 320 E. McCarty Street
Jefferson City, MO 65101 Jefferson City, MO 65101
Contact person: Marc Ellinger Contact Person: Eric Struemph
Handicap Board Library District
Cole County Residential Services, Inc. Missouri River Regional Library
1908 Boggs Creek Road 214 Adams Street
Jefferson City, MO 65101 P.O. Box 89
Contact person: Jim Casey Jefferson City, MO 65102
Contact person: Patricia Schlechte, President
PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT
FOR
UNILEVER SUPPLY CHAIN,INC.
Unilever Supply Chain, Inc., a Delaware 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 VI, 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
project (the "Project") that will include new packaging lines and processing equipment at, and the
relocation of existing out-of-state Company assets to, the existing plant in the City at 2900 W. Truman
Blvd., Jefferson City, Missouri. The Project will be ]eased from the City to the Company pursuant to a
lease agreement that will provide the Company an option to purchase the Project. 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 $17,000,000 for equipment. The cost-benefit analysis attached as Exhibit 1
is based on the expected total investment of$17,000,000.
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 (tire "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 County. 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 will have the 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 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. EEr ualized Assessed Valuation. The most recent equalized assessed valuation on the real
property and personal property included in the Project, as of January 1, 2010, 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 $5,544,000 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 Analysis. Attached hereto as Exhibit 1 is an analysis of the costs and
benefits of the initial Project investment on each taxing district. The projections therein 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.
-2-
EXHIBIT 1
Cost-Benefit Analysis
EXHIBIT 1
Summary of Tax Impact Analysis
Revenue
Tax Revenue Generated
Without from Pilot Value of
Taxing Jurisdiction Abatement Payments Abatement
Jefferson City School District $ 599,673.65 $ $599,673.65
Jefferson City 90,693.11 90,693.11
State of Missouri 4.892.63 4,892.63
Library 31.899.97 31,899.97
Senate Bill 40 14,368.03 14,368.03
General Revenue 19,179.13 19,179.13
Road& Bridge 44,033.70 44,033.70
$ 804,740.22 $ $ 804,740.22
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