HomeMy Public PortalAboutORD14590 BILL NO. 2009-74
SPONSORED BY COUNCILMAN Harvey
ORDINANCE NO. f d' � Z✓
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, APPROVING A PLAN
FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR COMMAND WEB OFFSET
COMPANY, INC. IN CONNECTION WITH THE PROPOSED ISSUANCE BY THE CITY
OF JEFFERSON, MISSOURI OF ITS INDUSTRIAL DEVELOPMENT REVENUE
BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000 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, Command Web Offset Company, Inc., a Missouri corporation (the
"Company"), has requested that the City (a) prepare and approve a plan
for an industrial development project involving the construction, furnishing
and equipping of a 45,000 square foot addition to the company's existing
printing facility 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 Council of the City adopted Resolution RS2008-40 on March 2, 2009,
expressing the official intent of the City to issue the Bonds to finance the
Project and to lease the Project to the Company, contingent upon
preparation and approval of a plan for industrial development with respect
to the Project (the "Plan") as required by Section 100.050 of the Act; and;
and
WHEREAS, the City has prepared a Plan for the Project, 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
Drafter's Note: Deleted text is shown thte. Inserted text is shown thus.
to the Council regarding the proposed Plan, and the City now desires to
approve the Plan.
NOW, THEREFORE, BE IT ENACTED 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:
' P esiding Officer Mayor
ATTEST: APPROVED AS TO F M:
ity Clerk City Counselor
Drafter's Note: Deleted text is shown#tars. Inserted text is shown thus.
2
EXHIBIT A
TO ORDINANCE
PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT
FOR
COMMAND WEB OFFSET COMPANY, INC.
Command Web Offset Company, Inc., 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 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. Descri tion of the Project. The Project consists of the construction,
furnishing and equipping of a45,000 square foot addition to the company's existing printing
facility located at 7100 One Color Way,Jefferson City, Missouri (the"Project"). 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 Project. The Company expects the initial
investment for the Project to be approximately$22,500,000, of which $19,000,000 will be
for equipment and $3,500,000 for real property improvements. The cost-benefit analysis
attached as Schedule 1 is based on the expected total investment of $22,500,000.
3. Source of Funds to be Expended for the Project. The source of funds to
be expended for 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 County. The Project will be leased by the City to either
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:
A-1 1
• 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 Project Site, as of January 1, 2009 is $1,860,290 (Market Value
$5,813,406)for real property(1 parcel)and$1,537,732 estimated for personal property as
a consequence of non-Project related improvements and equipment in existence on
January 1, 2009.
7. Cost-Benefit Analysis. Attached hereto as Schedule 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 Schedule 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.
A-2 2
SCHEDULE 1
Cost-Benefit Analysis
A-1 1
PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT
FOR
COMMAND WEB OFFSET COMPANY,INC.
Command Web Offset Company, Inc., 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 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 construction, furnishing and
equipping of a 45,000 square foot addition to the company's existing printing facility located at 7100 One
Color Way, Jefferson City, Missouri (the "Project"). 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$22,500,000, of which$19,000,000 will be for equipment and$3,500,000 for
real property improvements. The cost-benefit analysis attached as Schedule 1 is based on the expected
total investment of$22,500,000.
K Source of Funds to be Expended for the Project. The source of funds to be expended
for 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 Coun1j. The Project will be leased by the City to either 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. E ualized Assessed Valuation. The most recent equalized assessed valuation on the
Project Site, as of January 1, 2009 is $1,860,290 (Market Value $5,813,406) for real property (1 parcel)
and $1,537,732 estimated for personal property as a consequence of non-Project related improvements
and equipment in existence on January 1,2009.
7. Cost-Benefit Analysis. Attached hereto as Schedule 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 Schedule 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.
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SCHEDULE 1
Cost-Benefit Analysis
City of Jefferson City, Missouri
Tax Impact Analysis
Command Web Offset Company, Inc.
Chapter 100 Bonds — Series 2009
July 23, 2009
Report Prepared by:
Molly McGovern Consulting
2308 Rhonda Road
Excelsior Springs, MO 64024
McE�overnm@aol.com
Economic Impact to the Affected Taxing Jurisdictions _
The City of Jefferson City("City")will consider issuing Chapter 100 Bonds, Series 2009
("Bonds") to provide funds to finance an expansion proposed by Command Web Offset
Company, Inc. ("Company"), consisting of construction,purchase, acquisition, and equipping of
the expansion of the company's existing manufacturing facilities located on the company's
property, 7100 One Color Way, Jefferson City,Missouri (the"2009 Project"). Beginning in the
year property improvements are assessed, all real property financed with the Bonds shall be
100% exempt from ad valorem taxes for a period of five years and all personal property financed
with the Bonds shall be 100% exempt from ad valorem taxes for a period of five years.
The value of real property to be improved and personal property to be acquired following the
issuance of Bonds was provided by the Company. This financial model prepared to measure the
economic impact to affected taxing jurisdictions of financing the property with the Bonds
assuming that$19 million in personal property will be acquired in 2009 and$3.5 million in
improvements to real property will occur during 2009. The County Assessor's Office will
determine the market value of real property based on the Company's planned improvements and
will likely list the market value lower than the stated cost of improvements contained herein;
however, for the purposes of this financial model, the company's cost of improvements was
used. A bi-annual inflation rate of%2 %upon reassessment was used for real property.
No PILOTS will be paid to the affected taxing jurisdictions in connection with the issuance of
the Bonds during the period of time the City owns the buildings for an initial five year period and
beginning in the sixth year and thereafter, 100%PILOTS will be paid to the affected taxing
jurisdictions based on the amount of ad valorem taxes which would otherwise be due with
respect to such real property. Likewise the City will own the personal property to be installed
and PILOTS will not be paid to the affected taxing jurisdictions for an initial five years period
and beginning in the sixth year and thereafter, 100%PILOTS will be paid to the affected taxing
jurisdictions based on the amount of ad valorem taxes which would otherwise be due with
respect to such property. The proposed expansion by the Company would typically cause an
increase in real,personal, and replacement tax revenues for all affected taxing jurisdictions.
The affected taxing jurisdictions currently receive Real Property Taxes, Replacement Taxes, and
Personal Property Taxes.
Schedule of PILOTS
VILOTS
2009 Project:
Plant Expansion Personal Property 2010-2014 Be in 2015
Plant Expansion Real Property 2010-2014 1 Begin 2015
The Company has provided all information pertaining to the value of Project Equipment and
Project Improvements and the timing such expenses will occur. This financial model was
prepared to measure the costs and benefits of the project on each affected taxing jurisdiction,
including and within the City as a result of financing the 2009 Project with the Bonds.
Sales Tax Exemption: The Company filed an application to Request Sales Tax Exemption on
building materials financed with Chapter 100 bonds used in the construction process with the
State of Missouri and has been approved in an amount not to exceed$211,250.
The County Assessor's Office will determine the market value of any real and personal property
obtained, acquired, or improved in connection with the Project, however, for the purpose of this
financial model, the Company's information regarding the cost of improvements and equipment
was used.
Project Category ProJect Equipment Project Improvements Total Costs
Plant Expansions 19,000,000 3.5,000,000
Chapter 100 Bonds Issued 2009 22,500,000
The most recent equalized assessed valuation on the Project Site, as of January 1, 2009 is
$1,860,290 (Market Value $5,813,400) for real property(1 parcel) and$1,537,732 estimated for
personal property as a consequence of Non-Project related Improvements and Equipment in
existence on January 1, 2009.
Owner Nircel 11) 44 01/01/2009 Assessor's note
Command Web 12-0479-0003-002-003 1,860 290
Personal Property 1,537,732
When the Project Equipment has been installed and Project Improvements have been completed,
the total assessed valuation will be reassessed. It is projected that the assessed value of Project
Equipment and Project Improvements will be approximately $7,452,600 upon completion of the
Project Improvements. The resulting increase in assessed valuation and the resulting Payments
in Lieu of Taxes are shown on following schedules within this report. When the Redevelopment
Plan is terminated, the Property is projected to initially yield annual real property taxes of
approximately $178,027 and annual personal property taxes of approximately$220,116.
Assuming that the City approves the Company's request for the Bonds to finance the 2009
Project,the financial impacts to the affected taxing jurisdictions have been measured and
described on the following pages. A more detailed review of the impact to the City of Jefferson
City and the Jefferson City School District is provided due to the complexity of their taxing
structures compared to the other affected taxing jurisdictions.
Economic Impact to the City of Jefferson City
Current Property Tax Revenues Collected
Real Property Tax Revenue: The real property tax revenue paid to the City from Command Web
Offset Company, Inc. ("Current Property Owner")currently totals $11,818 per year.
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Replacement Tax Revenue: The replacement tax revenue paid to the City from the Current
Property Owner currently totals $178 per year.
Personal Property Tax Revenue: The personal property tax revenue paid to the City from the
Current Property Owner currently totals $10,688.
Future Property Tax Revenues/PILOTS Collected
Real Property Tax Revenue: Beginning in 2015 [5-year abatement would occur in years 2010
through 2014],the 6th year following issuance of the Bonds and thereafter, it is expected that the
City will begin to receive 100% of the Real Property Tax Revenue/PILOTS otherwise levied on
an expansion planned by the Company to begin in 2009.
Table 1:
City Real Propeq Taxes/PILOTS
Tax Taxes Paid on Non PILOTS to be Paid on Value of Abated
Year Project Improvements Project Improvements Taxes
2010 11,937 0 7,151
2012 12,056 0 7,151
2014 12,177 0 7,187
2016 12,298 7,223 0
2018 12,421 7,259 0
Replacement Tax Revenue: The City's share of the Cole County levied replacement tax is
calculated to be about 1.6% of the replacement tax revenue collected based on the distribution
percentages established by the County to distribute the replaced Merchants and Manufacturing
Tax that was eliminated in 1984.1 Beginning in 2015,the 6th year following issuance of the
Bonds and thereafter, it is expected that the City will begin to receive 100% of the replacement
tax revenue otherwise levied on an expansion planned by the Company to begin in 2009.
1 Cole County Collector's Office. The replacement tax is$0.58. The collector's office distributes the tax collected
according to the percentage of every district within the county that was in effect in 1984 when the Merchants and
Manufacturing Tax was eliminated,but also taking into consideration development patterns and the resulting impact
to assessed valuation within the county. The distribution chart provides.016524 of the replacement tax collected
countywide to the City of Jefferson City. The tax collected within this development area will not necessary be
received by the taxing jurisdictions collecting tax revenues within this same taxing jurisdiction.
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Table 2:
City Replacement Tax/PILOTS
Tax Year Taxes Paid on Non PILOTS to be Paid on Value of Abated
Project Improvements Project Improvements Taxes
2010 180 0 108
2012 182 0 108
2014 184 0 108
2016 186 109 0
2018 187 110 0
Personal Property Tax Revenue: The amount of personal property tax revenue/PILOTS
calculated on personal property to be installed is based on the value of property provided by the
Company.2 The financial model assumes that$19 million in personal property will be acquired
in 2009. The County Assessor's schedule of depreciation was then used to establish annual
values of assessed valuation. Beginning in 2010, following issuance of the bonds and through
2014, it is expected that the City will receive 0%of the Personal Property Tax
Revenues/PILOTS otherwise levied on an expansion planned by the Company to begin in 2009,
beginning in 2015 it is expected that the City will begin to receive 100%of the Personal Property
Tax Revenues/PILOTS otherwise levied. Estimated personal property tax revenue/PILOTS to be
paid to the City for select years is as follows:
Table 3:
Citv Personal Pro ert Taxes/PILOTS
Tax Taxes Paid on Non PILOTS to be Paid on Value of Abated
Year Project Improvements Project Improvements Taxes
2010 10,688 0 40,195
2012 10,688 0 28,137
2014 10,688 0 20,098
2016 10,688 12,059 0
2018 10,688 12,059 0
Total Tax Revenue: The total amount of property tax revenues/PILOTS to be collected by the
City,taking into account the three taxes mentioned above,Real Property, Personal Property, and
Replacement Taxes are described in the following tables:
2 Personal Property Tax Calculation—Market Value multiplied by 33.3%divided by 100 multiplied by the Jefferson
City Property Tax Rate of$0.6353.
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Table 4:
Summary of Property Tax Revenues/PILOTS Collected by Total Tax
Tax City of Jefferson City Revenues
Year 15 Years Shown Collected
Current Current New New Total Total
General Firemen's General Firemen's General Firemen's
Fund Pension Fund Pension Fund Pension
2010 19,384 3,421 0 0 19,384 3,421 22,805
2011 19,487 3,439 0 0 19,487 3,439 22,926
2012 19,487 3,439 0 0 19,487 3,439 22,926
2013 19,591 3,457 0 0 19,591 3,457 23,048
2014 19,591 3,457 0 0 19,591 3,457 23,048
2015 19,696 3,476 0 0 19,696 3,476 23,172
2016 19,696 3,476 19,867 3,506 39,563 6,982 46,545
2017 19,802 3,495 16,482 2,909 36,283 6,403 42,687
2018 19,802 3,495 16,482 2,909 36,283 6,403 42,687
2019 19,909 3,514 16,513 2,914 36,422 6,428 42,850
2020 19,909 3,514 16,513 2,914 36,422 6,428 42,850
2021 20,017 3,533 16,544 2,920 36,561 6,452 43,014
2022 20,017 3,533 16,544 2,920 36,561 6,452 43,014
2023 20,127 3,552 16,575 2,925 36,702 6,477 43,179
2024 20,127 3,552 16,575 2,925 36,702 6,477 43,179
Total 296,641 52,352 152,094 26,842 448,735 79,193 527,929
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Economic Impact to the Jefferson City School District
Current Property Tax Revenues Collected
Real Property Tax Revenue: The real property tax revenue paid to the District from the
Command Web Offset Company,Inc. ("Current Property Owner")currently totals $68,403 per
year.
Replacement Tax Revenue: The replacement tax revenue paid to the District from the Current
Property Owner currently totals$5,662 per year.
Personal Property Tax Revenue: The personal property tax revenue paid to the District from the
Current Property Owner currently total$61,860.
Future Property Tax Revenues/PILOTS Collected
Real Property Tax Revenue: Beginning in 2015 [5-year abatement would occur in years 2010
through 2014], the 6th year following issuance of the Bonds and thereafter, it is expected that the
District will begin to receive 100%of the Real Property Tax Revenue/PILOTS otherwise levied
on an expansion planned by the Company to begin in 2009.
Table 5:
District Real Property Taxes/PILOTS
Tax Taxes Paid on Non PILOTS to be Paid on Value of Abated
Year Project Improvements Project Improvements Taxes
2010 69,087 0 41,388
2012 69,778 0 41,388
2014 70,476 0 41,595
2016 71,180 41,803 0
2018 71,892 42,012 0
Replacement Tax Revenue: The District's share of the Cole County levied replacement tax is
calculated to be about 52.4% of the replacement tax collected based on the distribution
percentages established by the County to distribute the replaced Merchants and Manufacturing
Tax that was eliminated in 1984.4
Beginning in 2015,the 6t'year following issuance of the Bonds and thereafter, it is expected that
the District will begin to receive 100%of the replacement tax Revenue otherwise levied on an
expansion planned by the Company to begin in 2009.
4 Cole County Collector's Office. The replacement tax is$0.58. The collector's office distributes the tax collected
according to the percentage of every district within the county that was in effect in 1984 when the Merchants and
Manufacturing Tax was eliminated,but also taking into consideration development patterns and the resulting impact
to assessed valuation within the county. The distribution chart provides.524719 of the replacement tax collected
countywide to the Jefferson City School District. The tax collected within this development area will not necessary
be received by the taxing jurisdictions collecting tax revenues within this same taxing jurisdiction.
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Table 6:
District Replacement Tax/PILOTS
Tax Taxes Paid on Non PILOTS to be Paid on Value of Abated
Year Project Improvements Project Improvements Taxes
2010 5,718 0 3,426
2012 5,775 0 3,426
2014 5,833 0 3,443
2016 5,891 3,460 0
2018 5,950 3,477 0
Personal Property Tax Revenue: The amount of personal property tax revenue/PILOTS
calculated on personal property to be installed is based on the value of property provided by the
Company.5 The financial model assumes that$19 million in personal property will be acquired
in 2009. The County Assessor's schedule of depreciation was then used to establish annual
values of assessed valuation. Beginning in 2010, following issuance of the Bonds and through
2014, it is expected that the District will receive 0% of the Personal Property Tax
Revenues/PILOTS otherwise levied on an expansion planned by the Company to begin in 2009,
beginning in 2015 it is expected that the District will begin to receive 100% of the Personal
Property Tax Revenues/PILOTS otherwise levied. Estimated personal property tax
revenue/PILOTS to be paid to the District for select years is as follows:
Table 7:
District Personal Property Taxes
Tax Taxes Paid on Non PILOTS to be Paid on Value of Abated
Year Project Improvements Project Improvements Taxes
2010 61,860 0 232,644
2012 61,860 0 162,851
2014 61,860 0 116,322
2016 61,860 69,793 0
2018 61,860 69,793 0
Total Tax Revenue: The total amount of property tax revenue to be collected by the District,
taking into account the three taxes mentioned above, Real Property,Personal Property, and
Replacement Taxes, are below:
5 Personal Property Tax Calculation—Market Value multiplied by 33.3%divided by 100 multiplied by the Jefferson
City Property Tax Rate of 3.6770.
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Table 8:
Summary of taxes Collected by
Jefferson City School District
Tax Year Tax Revenue to be Paid on PILOTS to be Paid on Project
Non-Project Improvements Improvements &Equipment
&Equipment
2010 136,665 0
2011 137,413 (0)
2012 137,413 (0)
2013 138,169 0
2014 138,169 0
2015 138,932 0
2016 138,932 138,096
2017 139,702 115,056
2018 139,702 115,056
2019 140,481 115,283
2020 140,481 115,283
2021 141,267 115,510
2022 141,267 115,510
2023 142,061 115,739
2024 142,061 115,739
Totals 2,092,714 1,061,271
Increased Education Costs: There are no educational expenses that will be incurred by the
District as a direct result of the 2009 Project. However,when there is an increase in jobs in the
economy,there is a corresponding increase in the number of new families and new children
enrolled in school. In the overall region, at the same time new jobs are being created,jobs are
also being lost and likely will not represent a net increase in jobs,new families or school
children. The number of children attributed to the workers to be employed at the 2009 Project
regardless of whether it represents a net increase in new jobs in the region,have been calculated.
The District can draw its own conclusions as to the impact of the issuance of the Bonds will have
on its operations or its ability to finance the cost of educating children. The Company expects to
retain 150 existing jobs and create 50 new jobs that will be filled from current residents of Cole
County whenever possible.
• When there is a net increase of 100 new jobs in a community,there are 102 new family
units and 61 new students enrolled in school.6
• Not all new employees who work in Cole County will also choose to live in Cole County.
Sixty-three percent of the workers employed in Cole County live in Cole County.
• For those new employees who choose to live in Cole County,not all new families will
enroll their children in the affected school district. Jefferson City School District student
6 US Chamber of Commerce,"What Happen When 100 new Jobs are Created."
'US Census Commuting Patterns, [61 new students x 63.3%=38.613 new students per 100 new jobs]& [102 new
family units x 63.3%=64.566 new family units per 100 new jobs]
-8-
enrollment represents 77.72% of the overall student enrollment of all public school
districts in Cole County.8
• The Plan contemplates the creation of 50 net new jobs,resulting in 51 new family units
and 31 new students. Only 25 new family units and 15 new students are expected to
locate within the Jefferson City School District based on the current percentage of
workers who work and live within Cole County(63.3%) and the current percent of
families living in Cole County who are also living within the Jefferson City School
District(77.72%)
• The new property tax revenue available to the District based on 25 new family units
locating within the District is $2,264.16 per new student enrolled in the District.9
• The new expense attributed to the cost to educate one child is $6,352.42.10
• The Net Cost of educating one child considering new revenue of$2,264.16 less new
expense of$6,352.42 equals $4,088.26.
• The Plan contemplates the creation of 50 net new jobs resulting in 25 new family units
and 15 new students enrolled in the District.
Table 9:
Net Cost to Educate New Students
Tax Year Net Cost
2010 62,569
2012 62,569
2014 62,569
2016 62,569
2018 62,569
Net Benefit from Project: In sum, the District will realize a net benefit as a result of the
expansion planned by the Company. The total amount of tax revenues to be collected by the
District,taking into account the three taxes mentioned above,Real Property,Personal Property,
and Replacement Tax Revenue are described in the following tables:
8 DESE enrollment counts for school districts located in Cole County. [38.613 new students x 77.72%=30.01 new
students in the District per 100 new jobs]&[64.566 new family units x 77.72%=50.18 new family units per 100
new jobs]
9 New property tax revenue generated based on the addition of 50.18 new family units per 100 jobs is based on
$150,000 home and$25,000 car. [$150,000 x 19%divided by 100 x 3.677=$1,048]&[$25,000 x 33.3%divided
by 100 x 3.677=$306]totals$1,354 x 25.09 new family units=$33,972 divided by 15 students enrolled=
$2,264.16 new revenue per new student.
io The new expense of educating one child is calculated by taking the"Current Expense of Jefferson City School
District as reported to DESE 63,454,195 divided by the average daily attendance of 7,351.84 students(8,196
enrolled X attendance rate of 90%)_$8,631.00 for both the instructional and support costs of education;less
26.41%received from Federal,and State ($2,278.58)_$6,352.42.
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Table 10:
Summary of Economic Development Benefits to the Jefferson City School District
2009 Series Chapter 100 Bonds
Tax Year Total Current Total New Net Local Net Cost per Net Local School
Local School Local School School Child12 Tax Revenues
Revenues Taxes" Revenues less Child Cost
2010 136,665 0 136,665 0 136,665
2011 137,413 (0) 137,413 (62,569) 109,717
2012 137,413 (0) 137,413 (62,569) 109,717
2013 138,169 0 138,169 (62,569) 110,472
2014 138,169 0 138,169 (62,569) 110,472
2015 138,932 0 138,932 (62,569) 111,236
2016 138,932 138,096 277,027 (62,569) 249,331
2017 139,702 115,056 254,759 (62,569) 227,063
2018 139,702 115,056 254,759 (62,569) 227,063
2019 140,481 115,283 255,763 (62,569) 228,067
2020 140,481 115,283 255,763 (62,569) 228,067
2021 141,267 115,510 256,777 (62,569) 229,081
2022 141,267 115,510 256,777 (62,569) 229,081
2023 142,061 115,739 257,800 (62,569) 230,104
2024 142,061 115,739 257,800 (62,569) 230,104
Totals 2,092,714 1,061,271 3,153,985 _(!M,9601 2,766,239
" SB 287 passed by the Missouri General Assembly during 2005,changed the school funding formula. State aid
provided to each Missouri school district will be based on the assessed valuation with each school district as of
December 31,2004. The only impact to the level of state funding associated with a change in assessed valuation
would be an increase in state aid associated with a decrease in assessed valuation compared to December 31,2004.
12 Net Cost per Child is based on$4,088.26 per new student.
-10-
Economic Impact to All Affected Taxing Jurisdictions
Future Property Tax Revenue/PILOTS to be Collected
The table on the next page entitled Value of Abated Taxes reflects the anticipated value of taxes
that will not distributed to the affected taxing jurisdictions as a result of project improvements
and equipment purchase or installations. For the purpose of this report, the value of real property
to be improved and personal property to be acquired following the issuance of Bonds was
provided by the Company. During the course of the project, the County Assessor's Office will
determine the actual market value of real property when improved and will use depreciation
methods for personal property applicable to all property in the county.
The following tables reflect the Tax Impact Analysis for all affected taxing jurisdictions
aggregated and individually for the following jurisdictions:
• City of Jefferson City,
• Cole County Road&Bridge,
• Library District,
• Cole County,
• Jefferson City School District,
• Handicap Board,
• the State of Missouri Blind Pension Fund, and
• Revenues distributed outside the affected taxing jurisdictions that receive a
portion of the replacement tax revenues
The first column describes the revenues to be distributed as a result of the Non-Project
Improvements&Equipment.
The second column describes the revenues to be distributed as a result of the Project
Improvements &Equipment.
The third column is a total of the first and second column and describes the revenues to be
distributed to the taxing jurisdictions as a result of the Command Web Offset Company, Inc.
Project.
-11-
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City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
All Taxing Districts
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
Equipment & Equipment to be distributed
Year 1 196,955 0 196,955
Year 2 198,045 0 198,045
Year 3 198,045 0 198,045
Year 4 199,147 0 199,147
Year 5 199,147 0 199,147
Year 6 200,259 0 200,259
Year 7 200,259 197,884 398,143
Year 8 201,383 _ 165,157 366,540
Year 9 201,383 165,157 366,540
Year 10 202,518 165,487 368,004
Year 11 202,518 165,487 _ 368,004
Year 12 203,664 165,818 369,482
Year 13 203,664 165,818 369,482
Year 14 204,822 166,151 370,973
Year 15 204,822 166,151 370,973
Total 3,016,629 1,523,110 1 4,539,739
-13-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
Cit of Jefferson City
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
E ui ment & Equipment to be distributed
Year 1 22,805 0 22,805
Year 2 22,926 0 22,926
Year 3 22,926 0 22,926
Year 4 23,048 0 23,048
Year 5 23,048 0 23,048
Year 6 23,172 0 23,172
Year 7 23,172 23,373 46,545
Year 8 23,297 19,390 42,687
Year 9 23,297 19,390 42,687
Year 10 23,423 19,427 42,850
Year 11 23,423 19,427 42,850
Year 12 23,550 19,464 43,014
Year 13 23,550 19,464 43,014
Year 14 23,679 19,501 43,179
Year 15 23,679 19,501 43,179
Totals 348,992 178,936 527,929
-14-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
Road & Bridge Fund
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
Equipment & Equipment to be distributed
Year 1 10,453 0 10,453
Year 2 10,512 0 10,512
Year 3 10,512 0 10,512
Year 4 10,572 0 10,572
Year 5 10,572 0 10,572
Year 6 10,632 0 10,632
Year 7 10,632 _ 10,392 21,024
Year 8 10,693 8,701 19,394
Year 9 10,693 8,701 19,394
Year 10 10,755 8,719 19,474
Year 11 10,755 _ 8,719 19,474
Year 12 10,817 8,737 19,554
Year 13 10,817 8,737 19,554
Year 14 10,879 8,755 19,635
Year 15 10,879 8,755 19,635
Totals J 160,1741 80,218 240,392
-15-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
Library District
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
Equipment & Equi ment to be distributed
Year 1 6,827 0 6,827
Year 2 6,863 0 6,863
Year 3 6,863 0 6,863
Year 4 6,899 0 6,899
Year 5 6,899 0 6,899
Year 6 6,936 0 6,936
Year 7 6,936 7,014 13,950
Year 8 6,973 5,815 12,788
Year 9 6,973 5,815 12,788
Year 10 7,011 5,825 12,836
Year 11 7,011 5,825 12,836
Year 12 7,049 5,836 12,885
Year 13 7,049 5,836 12,885
Year 14 7,087 5,847 12,935
Year 15 7,087 5,847 12,935
Totals 104,465 53,662 158,127
-16-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
Cole Count
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
Equipment & Equipment to be distributed
Year 1 12,973 0 12,973
Year 2 13,046 0 13,046
Year 3 13,046 0 13,046
Year 4 13,120 0 13,120
Year 5 13,120 0 13,120
Year 6 _ 13,195 0 13,195
Year 7 13,195 12,891 26,086
Year 8 13,271 10,795 24,066
Year 9 13,271 10,795 24,066
Year 10 13,347 10,818 24,165
Year 11 13,347 10,818 24,165
Year 12 13,424 10,840 24,264
Year 13 13,424 10,840 24,264
Year 14 13,502 10,862 24,365
Year 15 13,502 10,862 24,365
Totals 198,784 1 99,521 298,305
-17-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
Jefferson City School District
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
E ui ment & Equipment to be distributed
Year 1 136,665 0 136,665
Year 2 137,413 0 137,413
Year 3 137,413 0 137,413
Year 4 138,169 0 138,169
Year 5 138,169 0 138,169
Year 6 138,932 0 138,932
Year 7 138,932 138,096 277,027
Year 8 139,702 115,056 254,759
Year 9 139,702 115,056 254,759
Year 10 140,481 115,283 255,763
Year 11 140,481 115,283 255,763
Year 12 141,267 115,510 256,777
Year 13 141,267 115,510 256,777
Year 14 142,061 115,739 257,800
Year 15 142,061 115,739 257,800
Totals 2,092,7141 1,061,271 3,153,985
-18-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
Cole C unty Handicap Board
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
Equipment & Equipment to be distributed
Year 1 3,331 0 3,331
Year 2 3,349 0 3,349
Year 3 3,349 0 3,349
Year 4 3,368 0 3,368
Year 5 3,368 0 3,368
Year 6 3,387 0 _ 3,387
Year 7 3,387 3,314 6,701
Year 8 3,407 2,774 6,181
Year 9 3,407 2,774 6,181
Year 10 3,426 2,780 6,206
Year 11 3,426 2,780 6,206
Year 12 3,446 2,785 6,231
Year 13 3,446 2,785 6,231
Year 14 3,466 2,791 6,257
Year 15 3,466 2,791 6,257
Totals 51,032 25,573 76,605
-19-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
State of Missouri Blind Pension Fund
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
Equipment & Equipment to be distributed
Year 1 1,140 0 1,140
Year 2 1,147 0 1,147
Year 3 1,147 0 1,147
Year 4 1,153 0 1,153
Year 5 1,153 0 1,153
Year 6 1,159 0 1,159
Year 7 1,159 1,142 2,301
Year 8 1,166 954 2,120
Year 9 1,166 954 2,120
Year 10 1,173 956 2,128
Year 11 1,173 956 2,128
Year 12 1,179 958 2,137
Year 13 1,179 958 2,137
Year 14 1,186 960 2,146
Year 15 1,186 960 2,146
Totals 17,466 8,797 26,262
-20-
City of Jefferson City, Missouri
Command Web Offset Company, Inc. Chapter 100
Tax Impact Analysis
Replacement Tax Distributed Outside Taxing Jurisdictions
Tax Revenue to be
Paid on Non-Project PILOTS to be Paid on
Year Improvements & Project Improvements Total Revenues
Equipment & Equipment to be distributed
Year 1 2,762 0 2,762
Year 2 2,789 0 2,789
Year 3 2,789 0 2,789
Year 4 2,817 0 2,817
Year 5 2,817 0 2,817
Year 6 2,845 0 2,845
Year 7 2,845 1,663 4,508
Year 8 2,874 1,671 4,545
Year 9 2,874 1,671 4,545
Year 10 2,903 1,679 4,582
Year 11 2,903 1,679 4,582
Year 12 2,932 1,688 4,619
Year 13 2,932 1,688 4,619
Year 14 2,961 1,696 4,657
Year 15 2,961 1,696 4,657
Totals 1 43,0021 15,131 1 58,134
-21-
„i
w
August 31,2009
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 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 Command Web
Offset Company,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 September 21, 2009, 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 Clerk
Received on ,2009
by:
Name:
Title:
Name of Taxing Jurisdiction:
TAXING JURISDICTIONS
Missouri Department of Revenue Jefferson City School District
County Tax Section Jefferson City Public Schools
Blind Pension Fund 315 E.Dunklin Street
c/o Wanda Miller Jefferson City,MO 65101
301 West High,Room 330 Contact person: Jason Hoffman
Jefferson City,MO 65105
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: John Landwehr
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: Amy Brix,President