8.3 a-i Ratify Ad Valorem Exempt
City Of Salina
Request for Commission Action Date
8/26/2002
Time
4:00 PM
AGENDA SECTION:
ORIGINATING DEPARTMENT:
APPROVED
FOR AGENDA
8
FINANCE
ITEM NO.:
3 a - i
BY: Rodney Franz
Item: Ordinance 02-10103 through 02-10105, establishing Payment in Lieu of Taxes
amounts applicable to certain Industrial Revenue Bond Projects now completed.
BackQround:
Part of the process of issuing Industrial Revenue Bonds is establishing a payment in Lieu
of Tax (PILOT) Agreement with the beneficiaries of the bonds. The amount of the PILOT
is established pursuant to the City of Salina Tax exemption policy, and is structured based
on the amount of investment in the project and the number of new jobs created.
After project completion, staff reviews performance, and adjustments (if necessary) to the
PILOT are made. The standard PILOT agreement now used by the City provides that the
final amounts are to be established by ordinance after project completion. Each project is
also subject to annual staff review for continued compliance.
The three Ordinances attached relate to the following projects:
Ordinance Number 02-10103. This is the agreement with A-Plus Galvanizing. They have
met the conditions required by the agreement, and the proposed PILOT schedule is the
same as contemplated in the original agreement, with the exception that the first effective
year is 2003, instead of 2000.
Ordinance Number 02-10104. This is the agreement with EIDorado National. The PILOT
schedule is as originally contemplated.
Ordinance Number 02-10105. This is the agreement with KASA Industrial Controls, Inc.
The PILOT schedule is as originally contemplated.
Action on the PILOT agreements must be finalized at this meeting in order to calculate and
certify the amounts due to the County Clerk along with other taxes; therefore, staff
requests consideration on both first and second reading.
Action:
For each ordinance: Ordinance Nos. 02-10103, 02-10104 and 02-10105
1. Motion to approve on first reading.
2. Declare an Emergency exists for a second reading on the same day.
3. Adopt on second reading. Roll call vote.
Attachment A
Ordinance Number 02-10103
A-Plus Galvanizing
Calendar Year (Tax Year) Payment in Lieu of Taxes
2003 0%
2004 0%
2005 0%
2006 0%
2007 0%
2008 25%
2009 25%
2010 25%
2011 25%
2012 25%
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CITY-OF
saLina
Planning & Community Development
City-County Building. 300 West Ash Street, Room 205
P.O. Box 736. Salina, Kansas 67402-0736
(785)309-5720, voice. (785)309-5713, fax
TO: Dennis Kissinger
FROM: Dean Andrew
DATE: February 27,2002
RE: A Plus Galvanizing
A Plus Galvanizing, Inc., has filed the required project completion report needed to be eligible for
a property tax exemption.
According to the city's adopted policy, the City Manager shall review the application and unless
non-compliance with established terms or conditions is evident, direct the City Clerk to issue a
Certificate of Compliance.
Based on my review of the application, the ordinance approving the exemption and the city's
adopted policy, it is my recommendation that by copy of this signed memorandum the City Clerk
be directed to issue the annual Certificate of Compliance.
Approved:
d-/- /
~
Date
(:Q.L.. ~~
Dennis M. Kissinger "'V
City Manager
Cc:
Lieu Ann Nicola, City Clerk
(following approval)
Attachment A
Ordinance Number 02-10104
Eldorado National (Kansas), Inc.
Property Type Exemption Payment in Lieu of Taxes
Years
Land 1 - 10 100%
Existing buildings (without additions or improvements 1-10 100%
funded with bond proceeds)
Newly constructed buildings 1-5 -0-%
6 -10 50%
Existing buildings with additions or improvements 1-5 Pre-Improvement Value - 100%
funded with bond proceeds Improvement Value - -0-%
The objective will be to duplicate as nearly as possible 6 - 10 Pre-Improvement Value - 100%
the property tax otherwise payable on the existing Improvement Value - 50%
building over the ten year exemption period, while
applying the exemption policy to the value attributable
to the additions or improvements. The value of the
existing building will be established based upon the
County Appraiser's appraised value as of the January
1 st next preceding commencement of construction of
the additions or improvements to the existing building
(the "Pre-Improvement Value"). The value attributable
to the additions or improvements will be established
by subtracting the Pre-Improvement Value from the
County Appraiser's appraised value (the "Appraised
Value") as of January 1 of the first year of the
exemption period. The difference will be the
"Improvement Value." The ratio between the Pre-
Improvement Value and the Improvement Value for
the first year of the exemption period shall be fixed
and shall be applied to the Appraised Value for each
subsequent year of the exemption period to determine
the Pre-Improvement Value and Improvement Value
for that exemption year.
Newly acquired tangible personal property (excluding 1-5 -0-%
existing tangible personal property located in Saline 6 - 10 50%
County)
100% - with the appraised value
Existing tangible personal property located in Saline 1-10 for each item for each of the ten
County years to be equal to the lesser of
(a) the appraised value established
by the Saline County Appraiser
based upon applicable depreciation
schedules, or (b) the appraised
value established by the Saline
County Appraiser for the previous
owner for the calendar year of
purchase by the Tenant.
Planning & Community Development
City-County Building' 300 West Ash Street, Room 205
P.O. Box 736. Salina, Kansas 67402-0736
(785)309-5720, voice' (785)309-5713, fax
TO: Dennis Kissinger
FROM: Dean Andrew
DATE: March 26, 2002
RE: EI Dorado National, Inc.
EI Dorado National, Inc., has filed the required project completion report for a property tax
exemption for their new Wall Street facility.
According to the city's adopted policy, the City Manager shall review the application and unless
non-compliance with established terms or conditions is evident, direct the City Clerk to issue a
Certificate of Compliance.
Based on my review of the application, the ordinance approving the exemption and the city's
adopted policy, it is my recommendation that by copy of this signed memorandum the City Clerk
be directed to issue the annual Certificate of Compliance.
Approved:
~/o~
Date
(21-- "-- ~ . '.. -
Dennis M. Kissinge
City Manager
Cc:
Lieu Ann Nicola, City Clerk
(following approval)
Attachment A
Ordinance Number 02-10105
Kasa Industrial Controls, Inc.
ProDertv TYDe ExemDtion Payment in Lieu of Taxes
Years
Land 1 - 10 100%
Existing buildings (without additions or improvements 1-10 100%
funded with bond proceeds)
Newly constructed buildings 1-5 -0-%
6-10 50%
Existing buildings with additions or improvements 1-5 Pre-Improvement Value - 100%
funded with bond proceeds Improvement Value - -0-%
The objective will be to duplicate as nearly as possible 6 - 10 Pre-Improvement Value - 100%
the property tax otherwise payable on the existing Improvement Value - 50%
building over the ten year exemption period, while
applying the exemption policy to the value attributable
to the additions or improvements. The value of the
existing building will be established based upon the
County Appraiser's appraised value as of the January
1 st next preceding commencement of construction of
the additions or improvements to the existing building
(the "Pre-Improvement Value"). The value attributable
to the additions or improvements will be established
by subtracting the Pre-Improvement Value from the
County Appraiser's appraised value (the "Appraised
Value") as of January 1 of the first year of the
exemption period. The difference will be the
"Improvement Value." The ratio between the Pre-
Improvement Value and the Improvement Value for
the first year of the exemption period shall be fixed
and shall be applied to the Appraised Value for each
subsequent year of the exemption period to determine
the Pre-Improvement Value and Improvement Value
for that exemption year.
Newly acquired tangible personal property (excluding 1-5 -0-%
existing tangible personal property located in Saline 6 - 10 50%
County)
100% - with the appraised value
Existing tangible personal property located in Saline 1-10 for each item for each of the ten
County years to be equal to the lesser of
(a) the appraised value established
by the Saline County Appraiser
based upon applicable depreciation
schedules, or (b) the appraised
value established by the Saline
County Appraiser for the previous
owner for the calendar year of
purchase by the Tenant.
TO: Dennis Kissinger
FROM: Dean Andrew
DATE: February 25, 2002
RE: Kasa Controls, Inc.
Planning & Community Development
City-County Building' 300 West Ash Street, Room 205
P.O. Box 736. Salina, Kansas 67402-0736
(785)309-5720, voice' (785)309-5713, fax
Kasa Controls, Inc., has filed the required project completion report for a property tax exemption.
According to the city's adopted policy, the City Manager shall review the application and unless
non-compliance with established terms or conditions is evident, direct the City Clerk to issue a
Certificate of Compliance.
Based on my review of the application, the ordinance approving the exemption and the city's
adopted policy, it is my recommendation that by copy of this signed memorandum the City Clerk
be directed to issue the annual Certificate of Compliance.
Cc:
Lieu Ann Nicola, City Clerk
(following approval)
Approved:
~7J~
ate
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Dennis M. Kissing r "\
City Manager