6.2 Ad Valorem Application CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
2"~T~/1993 ~:oo P.l~.
AGENDA SECTION: Consent ORIGINATING DEPARTMENT: API~ROVED FOR
NO. 6 City Clerk AGENDA:
ITEM
NO. J.B. Shiever, CMC
2 BY: BY:
An application for tax exemption has been filed by Salina Vortex Corl~oration,
3024 Arnold Avenue.
Recommended action
Set the date of February 22, 1993 for public hearing.
COMMISSION ACTION
MOTION BY SECOND BY
TO:
SALINA VORTEX' CORP.
3024 Arnold Avenue / Salina, Kansas 67401
® Telephone (913) 825-7177
January 27, 1993
Board of City Commissioners
300 W. Ash
Salina, Kansas 67401
Board of City Commissioners:
We respectfully request your consideration for a tax
exemption per city policy for our proposed plant expansion
at 3024 Arnold Ave. A tax exemption will allow us to
Justify adding to the current facilities at this time.
We believe we meet all criteria for granting the tax
exemption under Section Four of Resolution Number 91-4265.
The planned expansion should generate eight new jobs as
detailed herein.
Salina Vortex was established in 1978 at this location and
has steadily grown since its inception. The planned
building expansion will add on to and improve a building
currently owned by the Salina Airport Authority.
Your consideration of this request will be appreciated.
C:TY OF SALINA, KANSAS
APPLICATION FOR PROPERTY TAX EXE~.PTION
FILE~
[. APPLICANT TNFORMATION '92FEB i 2 02
1. Applicant Business Name ana Adoress:
CiTY C? S;',LINA, KS
SALINA VORTEX CORPORATION 3024 ARNOLD AVE. SALINA, KS 67&-4t1~ el F~;~'S OFF!CE
Note: Attach the name and address of principal uwners and officers of the
business.
° Name, address and telephone number of person to contact in regards to this
application:
LEE YOUNG 3024 ARNOLD AVE. SALINA, KS G7401 {913) 825-7177
II. BUSINESS iNFORMATION
!. Type and nature of applicant's business:
DESIGNER & MANUFACTURER OF GATE VALVES & DIVERTER VALVES FOR FLOW CONTROL OF
DRY BULK MATERIALS SUCH AS GRAIN, FOODSTUFFS, FIBERS, CHEMICALS, PLASTICS AND
MINERALS.
Note: Attach ~ general description ur-business history and experience.
2. Is this a new business or an expansion of an existing business?
EXPANSION OF AN EXISTING BUSINESS
3. Principal competition in local market:
THERE IS NO COMPETITION IN LOCAL MARKET. SALINA VORTEX IS A SUPPLIER TO LOCAL
FIRMS SUCH AS PREMIER PNEUMATICS, CORONADO ENGINEERING, ECONO-FLO/ADM.
III. PROJECT INFORMATION
1. Location of the proposed project:
3024 ARNOLD AVE.- ADDITION TO EXTEND SOUTH OF CURRENT FACILITY.
2. Name and address of the owner of the land and building occupied or to be
occupied by the business:
LAND & EXISTING FACILITY IS OWNED BY THE SALINA AIRPORT AUTHORITY. NEW FACILITY-
WILL BE OWNED BY SALINA VORTEX CORPORATION.
3. General description of proposed project:
5,000 SQUARE FEET OF OFFICE AREA ON TWO FLOORS
14,000 SQUARE FEET OF MANUFACTURING SPACE
Note: Attach a site plan showing existing anU proposed buildings
and improvements.
(~E£ ATTA(~NT)
4. Estimatea capita: cost of project:
S 275,000 (Buildings and [mp~ayements)
S 100,000 (Machinery and Ecuipment)
5. Rumber of existing (full-time equivalent) employees:
SEE ATTACHHENT
Note: [f an existing business, attach the average total monthly
employment figures for the past twelve months.
6. Number of new (full-time equivalent) jobs to be created:
8 JOBS
Note: Attach a l~sting of the number and type of new jobs to be
created. (SEE Al-rACHH£NT)
IV. TAX EXEMPT!ON INFORMATION
1. Amount or percentage of tax exemption requested:
50~ OR AS ALLOW£D BY GOVERNING POLICY
2. Why tax exemption is being requested:
(SEE ATTACHHENT)
Note: Attach a supporting statement explaining why the requested
tax exemption is a critical factor in determining whether
the proposed project is to be completed.
V. APPLICANT CERTIFICATION
I certify that the above information and statements are true and
correct to the best of my knowledge and belief. I understand that this
information will be available for public inspection under the Kansas
Open Records Act. ! further understand that failure to produce the
stated economic benefits may result in a reduction or loss of tax
exemption. Furthermore, I certify that the requested tax exemption is
a critical factor in the achievement of the statej~conomic benefits
location or expansion.
·
Date / /
(Jan. 1990)
SALINA VORTEX* CORP.
3024 Arnold Avenue I Salina, Kansas 67401
® Telephone (913) 825-7177
I. APPLICANT INFORMATION
Principle Owners:
John Peterson
1308 Kingston
Salina, Kansas 67401
Mike Peterson
2665 Ra~
Sallna, Kansas 67401
Lee Young
3324 South Simpson Road
Salina, Kansas 67401
SALINA VORTEX* CORP.
3024 Arnold Avenue / Salina, Kansas 67401
® Telephone (913) 825-7177
Il. BUSINESS INFORMATION
COMPANY HISTORY:
Salina Vortex Corp. was established in 1978 at the current
location by Nell Peterson and Lee Young. Mr. Peterson,
now semi retired, remains Chairman of the Board and
provides product development and financial services for
the company.
The company specializes in the design, manufacturing and
marketing of gate valves and diverters valves for
controlling flow of dry bulk materials. The company has
two patents protecting multiple product designs with a
patent pending for a new product. The products are
specifically designed for gravity flow applications and
for differential pressure conveying service up to 15 PSIG.
The products are marketed world wide with the United
States and Canada as the major markets. The primary
customers are "Fortune 500" companies such as Dow, General
Foods, Pillsbury, Kimberly Clark, Monsanto, Quaker Oats
and General Electric Plastics with over 99% of the sales
revenue coming from outside the state of Kansas.
Over the past four years the company has grown over 300%
with current facilities becoming inadequate for continued
growth. Three new products are being developed to serve a
broader customer base which include an all stainless steel
sanitary gate, a sanitary diverter valve and a manual
maintenance gate. Company growth is expected to continue
at a reduced rate with existing product lines at or near
maximum domestic market penetration with new products
the primary catalyst for growth.
The current management team has over 100 years of combined
experience in the dry bulk material handling. The owners
of the business are active in the day-to-day
operation of the business.
The proposed expansion is expected to add 10-15 Jobs over
a five year period adding $400,000-$500,000 to the current
annual payout of $700,000.
SAUNA VORTEX® CORP.
3024 Arnold Avenue / Salina, Kansas 67401
® Telephone (913) 825-7177
III. PROJECT INFORMATION
PROPOSED BUILDING AND IMPROVEMENTS
The attached site plan details the proposed expansion
including the existing facility.
The $000 square foot office area, on two floors, will
provide additional administrative offices, a conference
room, handicap accessible rest room facilities, file
storage and a combination lunch/meeting room.
The 14,000 square foot manufacturing facility is to have
dock high truck unloading as well as drive-in flat bed
truck unloading, additional restrooms, dust control rooms
and product wash down areas.
The existing facilities will be incorporated into the new
facility by extending the roof from the new building over
the current building and by installing matching siding and
windows. The metal building to the north, now occupied by
Waddle's Manufacturing, is to be extended to the east by
16 feet adding 640 square feet. The existing buildings
are to be incorporated into the new building so as to be
indistinguishable from the new facility. The design of
the new facility will easily permit future expansion as
required with adequate parking and street access.
JOBS TO BE CREATED
The Jobs to be created within 18 months of project
completion are planned as follows:
Number
of
Jobs Position
I ....... Tig welder
2 ....... Metal fabricator
2 ....... Product assembler/parts manufacturing technician
I ....... Sales/Customer services assistant
I ....... Administrative secretary
I ....... Purchasing assistant
8 Full time Positions
SALINA VORTEX' CORP.
3024 Arnold Avenue / Salina, Kansas 67401
® Telephone (913) 825-7177
III. PROJECT INFORMATION
1992 Full Time Equivalents
January ..... 19.65
February .... 19.28
March ........ 19.46
April ........ 19.28
May .......... 19.85
June ......... 19.38
July ......... 19.81
August ....... 19.44
8eptembe~ .... 19,23
October ...... 19.23
November ..... 19.97
December ..... 19.93
Total ...... 235.51 Monthly average... 19.62 FTEs
ADDITION
640 S.F.
....... ~ -- -~.oo' ,
2,400 S.F.
EXIST~NG BLDG ~7
~.
NEW pROPOSED ADDITIO~ ~' ' PA~KINO
1.6,300 'S F. . . o I (2-K) INDUSTRIAL USE
~-" :i~/ 1 STALL PER 3 EMPLOYEES
(30) EMPLOYEES MAX.
· . P~KmO L~
Il NEW ADDITIONAL
~ s~ I AREA = .755 ACRES
I
SAUNA VORTEX' CORP.
3024 Arnold Avenue I Salina, Kansas 67401
® Telel~hone (913) 825-7177
IV. TAX EXEMPTION INFORMATION
TAX EXEMPTION REQUEST
The growth of the company has made the existing facilities
inadequate for future expansion and a safe work
environment.
The proposed facility is a major financial commitment for
Salina Vortex. No large long term contracts or orders are
anticipated to finance the expansion only slow steady
growth based upon the introduction of the aforementioned
new products, which also require a major financial
commitment. The expansion requires the company to make a
substantial investment without a guarantee of return in an
uncertain economic environment.
Financial incentives, in the way of property tax relief,
are required to Justify the near term expansion and
proposed improvements to existing buildings.