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8.2 Capital Equipment & Facility Modifications Grant CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 6/21/2010 TIME 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: CITY MANAGER'S OFFICE ITEM NO. Page 1 2 BY: BY: Jason A. Gage, City Manager ITEM: Consider an incentive request from Philips Lighting Company to fund the purchase of capital equipment and facility modifications to support three new projects and the addition of up to twenty-two (22) new primary jobs. BACKGROUND: Philips Lighting Company manufactures fluorescent lighting and is one of Salina's largest employers. Philips is looking at three potential new projects for their Salina facility. Together, these three potential projects would add up to an additional twenty-two (22) jobs locally and result in an estimated $3.2 million in capital facility investment. This possibility is very good news for Salina during a difficult economic time. The first project would bring five (5) manufacturing positions to the facility. This project would add an additional draw line to the glass furnace and allow the facility to make more of their own glass components for their lamp manufacturing operation. The second proposed project would be to relocate a testing laboratory from its current location to the Salina factory. This relocation would enable consolidation opportunities and improve service levels for Philip's customers. This project would add an additional eight (8) employees, to include a lab manager and other lab technicians. The third project is part of the Philips global consolidation process to improve overall manufacturing efficiency and effectiveness. This proposed project would be expected to create nine (9) additional manufacturing jobs in Salina (8 hourly production jobs and 1 engineering support position). The wage levels from these projects will range from $22.60/hour to $24.29/hour plus benefits. This rate is significantly above the Saline County average wage for these positions. The total estimated payroll for these jobs is around $1.1 million. Philips has requested $150,000 in SEDIC economic development grant funds to position them for approval from company headquarters for these three projects. These projects would be a positive step forward for the additional growth and development of the Philips Lighting Company in Salina. The grant will fund capital equipment and facility modifications necessary to expand their operations and sustain the projected employment. For these projects, this includes: o purchase, delivery and installation of equipment necessary to modify the existing manufacturing process; o related electrical and building upgrades; and o construction of a fully equipped laboratory and related facility modifications From a grant performance perspective, each project will be looked at independently. It is important to note that no funding will be obligated if Philips is not awarded these projects. The commitment of CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 6/21/2010 TIME 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: CITY MANAGER'S OFFICE ITEM NO. 2 BY: Page 2 BY: Jason A. Gage, City Manager these dollars at this time reinforces our community's support for Philips and can help position Salina as a positive location for future investment as near the end of a recessionary econom ic period. The Wichita State University (WSU) Benefit-Cost Analysis (attached) is included and provides a benefit-cost ratio in excess of 1.34 for all impacted governmental units. FISCAL NOTE: If authorized, this request will be funded from the economic development allocation of the City's sales tax (sales tax cash flow report attached). CONFORMANCE WITH STRATEGIC PLAN GOAL #3: The City will create a community of qualit~ mixed-use development and redevelopment Philips Lighting is a global, stable, very efficiently run company, with an extremely successful track record in Salina. Staff believes that the growth of healthy, local industries such as Philips Lighting will certainly foster this goal. ALTERNATIVES AND RECOMMENDED ACTION: Due to the nature of this request, certain company trade secrets that relate to the proposed projects cannot be publicly disclosed. If during the public discussion the City Commission has questions about project aspects or the company that would be considered trade secrets, you can choose to recess into executive session in order to make such inquiries of the applicant and/or discuss this information with staff and legal counsel. Alternative #1: Recommend to the City Commission approval of the request to commit funding for capital equipment and facility modifications to Philips Lighting in an amount not to exceed $150,000. Alternative #2: Recommend to the City Commission denial of the request to commit funding for capital equipment and facility modifications to Philips Lighting in an amount not to exceed $150,000. This item was recommended for approval with a unanimous vote by the SEDIC at their June 2, 2010 meeting. Staff believes this request clearly meets the intent of Resolution #09-6608, which provides for the funding of capital expenditures in property, plant and equipment to stimulate job growth for primary businesses. As a result, Staff also recommends Alternative #1. Attachment: WSU Benefit-Cost Analysis DRAFT Grant Offer Agreement Resolution No. 09-6608 Economic Development Sales Tax Cash Flow Report \ I l4IJ \1 { ~ WICHITA SfATE UNNERSITY Center for Economic Development and Business Research Wichita State University 1845 Fairmount St. Wichita, Kansas 67260-0121 (316) 978-3225 DATE OF ANALYSIS TIME OF ANALYSIS VERSION OF ANALYSIS 6/10/2010 2:11 PM Draft PROJECT SUMMARY (no multipliers, no substitution) Company Name Phillips Liqhtinq Number of new jobs for 1 a-year period 22 Amount of payroll for 1 a-year period $11,833,475 Amount of capital investment for 1 a-year period $3,725,000 Land $0 Buildings $900,000 Machinery and Equipment $2,825,000 INCENTIVE SUMMARY City Incentives - Salina 150,000 Tax abatement 0 Sales tax exemption 0 Forgivable loans 0 Training dollars 0 Infrastructure 0 Cash value all other incentives 150,000 County Incentives - Saline 0 Tax abatement 0 Sales tax exemption 0 Forgivable loans 0 Training dollars 0 Infrastructure 0 Cash value all other incentives 0 State Incentives 0 Tax abatement 0 Sales tax exemption 0 Forgivable loans 0 Training dollars 0 Infrastructure 0 Cash value all other incentives 0 School District Incentives - 305 Salina 0 Tax abatement 0 Sales tax exemption 0 Forqivable loans 0 Training dollars 0 Infrastructure 0 Cash value all other incentives 0 Page 1 of 4 It~(j ,1 - Center for Economic Development and Business Research Wichita State University 1845 Fairmount St. Wichita, Kansas 67260-0121 (316) 978-3225 WICHITA SfATE UNIVERSIlY DATE OF ANALYSIS TIME OF ANALYSIS VERSION OF ANALYSIS 6/10/2010 2:11 PM Draft TAX ABATEMENT PARAMETER5 Real Property Number of years 0 Percentage 0.0% Personal Property Number of years 0 Percentage 0.0% CONSTRUCTION IMPACTS Jobs Multiplier 1.6547 Earninqs Multiplier 1.5556 11 $450,000 Total jobs Total payroll earnings 17 $700,020 SUBSTITUTION Firm NAICS code 335120 Liqhtinq fixture manufacturinq Substitution percentage applied to firm operations 0.0% FIRM MULTIPLIERS (On-going Operations) Jobs 2.2775 Earnings 1.7793 ECONOMIC IMPACT OF FIRM OPERATIONS Number of jobs 10-year period Direct 22 Total 50 Payroll earnings for 1 O-year period Direct $11,833,475 Total $21,055,302 Page 2 of 4 I ),t ,11, ~ WICHITA SfATE UNMRSIlY Center for Economic Development and Business Research Wichita State University 1845 Fairmount St. Wichita, Kansas 67260-0121 (316) 978-3225 DATE OF ANALYSIS TIME OF ANALYSIS VERSION OF ANALYSIS 6/10/2010 2:11 PM Draft FISCAL IMPACT City Fiscal Impacts. - Salina Discounted Present value of net benefits $49,296 Rate of Return on Investment Net public benefits 1 a-year period $49,296 Public costs 1 a-year period $144,928 ROI 34.0% Benefit-Cost Ratio Public benefits 1 a-year period $194,224 Public costs 1 a-year period $144,928 Benefit-Cost Ratio 1.34 County Fiscal Impacts. - Saline Discounted Present value of net benefits $102,287 Rate of Return on Investment Net public benefits 1 a-year period $102,287 Public costs 1 a-year period $0 ROI NA Benefit-Cost Ratio Public benefits 1 a-year period $102,287 Public costs 1 a-year period $0 Benefit-Cost Ratio NA State Fiscal Impacts Discounted Present value of net benefits $1,135,880 Rate of Return on Investment Net public benefits 1 a-year period $1,135,880 Public costs 1 a-year period $0 ROI NA Benefit-Cost Ratio Public benefits 1 a-year period $1,135,880 Public costs 1 a-year period $0 Benefit-Cost Ratio NA School District Fiscal Impacts. - 305 Salina Discounted Present value of net benefits $35,254 Rate of Return on Investment Net public benefits 1 a-year period $35,254 Public costs 1 O-vear period $0 ROI NA Benefit-Cost Ratio Public benefits 1 a-year period $35,254 Public costs 1 a-year period $0 Benefit-Cost Ratio NA Page 3 of 4 In the preparation of this report, the Centerfor Economic Development and Eusiness Research assumed that all information and data provided by the applicant or others is accurate and reliable. CEDER did not take extraordinmy steps to verify or audit such information, but relied on such information and data as provided for p1ll]Joses (~lthe project. This analysis requires CEDER to make predictive forecasts, estimates and/or projections (hereinafter collectively referred to as "FORWARD-LOOKING STATEMENTS"). These FORWARD-LOOKING STATEMENTS are based on information and data provided by others and involve risks, uncertainties and assumptions that are d(fflcult to predict. The FORWARD-LOOKING STATEMENTS should not be considered as guarantees or assurances that a certain level (dpelformance will be achieved or that certain events will occur. While CEDER believes that all FORWARD-LOOKING STATEMENTS it provides are reasonable based on the information and data available at the time o.lwriting, actual outcomes and results are dependent on a variety (~ffactors and may d!tler materiallyji'om what is expressed orforecast. CEDER does not assume any responsibilityfor any and all decisions made or actions taken based upon the FORWARD-LOOKING STATEMENTSprovided by CEDER. Page 4 of 4 CITY OF SALINA SPECIAL 1/4 CENT SALES TAX CASH FLOW DETAIL Commitment or Receipts Expenditure Encumbrance Balance Comment 9/24/2004 $ 15,487.57 $ 15,487.57 Sales Tax Distribution 9/30/2004 $ 2.47 $ 15,490.04 Interest Allocation 1 0/28/2004 $ 23,961.92 $ 39,451.96 Sales Tax Distribution 1 0/31/2004 $ 30.77 $ 39,482.73 Interest Allocation 11/29/2004 $ 25,183.70 $ 64,666.43 Sales Tax Distribution 11/30/2004 $ 87.59 $ 64,754.02 Interest Allocation 12f7/2004 $ (10,772.19) $ 53,981.83 Sales Tax Distribution 12/22/2004 $ 22,489.67 $ 76,471.50 Sales Tax Distribution 12/31/2004 $ 225.98 $ 76,697.48 Interest Allocation 1/31/2005 $ 24,098.65 $ 100,796.13 Sales Tax Distribution 1/31/2005 $ 187.40 $ 100,983.53 Interest Allocation 2/28/2005 $ 26,839.81 $ 127,823.34 Sales Tax Distribution 2/28/2005 $ 50.75 $ 127,874.09 Interest Allocation 3/31/2005 $ 22,092.24 $ 149,966.33 Sales Tax Distribution 3/31/2005 $ 111.97 $ 150,078.30 Interest Allocation 4/28/2005 $ 21,564.60 $ 171,642.90 Sales Tax Distribution 4/30/2005 $ 142.59 $ 171,785.49 Interest Allocation 5/27/2005 $ 23,913.56 $ 195,699.05 Sales Tax Distribution 5/31/2005 $ 416.53 $ 196,115.58 Interest Allocation 6/16/2005 $ 10,000.00 $ 186,115.58 Salina Downtown Fa~ade Program 6/1612005 $ 20,000.00 $ 40,000.00 $ 126,115.58 North Central RPC 3 year program 6/28/2005 $ 22,076.99 $ 148,192.57 Sales Tax Distribution 6/30/2005 $ 174.69 $ 148,367.26 Interest Allocation 7/27/2005 $ 23,315.15 $ 171,682.41 Sales Tax Distribution 7/31/2005 $ 242.75 $ 171,925.16 Interest Allocation 8/29/2005 $ 25,236.53 $ 197,161.69 Sales Tax Distribution 8/31/2005 $ 288.47 $ 197,450.16 Interest Allocation 9/28/2005 $ 23,396.01 $ 220,846.17 Sales Tax Distribution 9/30/2005 $ 180.77 $ 221,026.94 Interest Allocation 10/27/2005 $ 24,734.47 $ 245,761.41 Sales Tax Distribution 10/31/2005 $ 293.49 $ 246,054.90 Interest Allocation 11/30/2005 $ 734.98 $ 246,789.88 Interest Allocation 12/1/2005 $ 24,260.81 $ 271,050.69 Sales Tax Distribution 12/27/2005 $ 23,519.43 $ 294,570.12 Sales Tax Distribution 12/31/2005 $ 616.03 $ 295,186.15 Interest Allocation 1/31/2006 $ 25,005.65 $ 320,191.80 Sales Tax Distribution 1/31/2006 $ 1,123.26 $ 321,315.06 Interest Allocation 2/27/2006 $ 27,991.50 $ 349,306.56 Sales Tax Distribution 2/28/2006 $ 490.98 $ 349,797.54 Interest Allocation 3/6/2006 $ 50,000.00 $ 299,797.54 Kansas Army National Guard 3/30/2006 $ 22,110.37 $ 321,907.91 Sales Tax Distribution 3/31/2006 $ 978.63 $ 322,886.54 Interest Allocation 4/28/2006 $ 22,544.02 $ 345,430.56 Sales Tax Distribution 4/30/2006 $ 1,212.58 $ 346,643.14 Interest Allocation 5/31/2006 $ 25,767.51 $ 372,410.65 Sales Tax Distribution 5/31/2006 $ 1,586.69 $ 373,997.34 Interest Allocation 6/30/2006 $ 24,729.35 $ 398,726.69 Sales Tax Distribution 6/30/2006 $ 759.06 $ 399,485.75 Interest Allocation 7/26/2006 $ 20,000.00 $ (20,000.00) $ 399,485.75 North Central RPC 3 year program 7/28/2006 $ 24,669.37 $ 424,155.12 Sales Tax Distribution 7/31/2006 $ 1,749.45 $ 425,904.57 Interest Allocation 8/2/2006 $ 12,000.00 $ 413,904.57 Salina Downtown Fa~ade Program 8/31/2006 $ 1,749.37 $ 415,653.94 Interest Allocation 9/5/2006 $ 29,657.15 $ 445,311.09 Sales Tax Distribution 9/28/2006 $ 23,832.53 $ 469,143.62 Sales Tax Distribution 9/30/2006 $ 3,005.14 $ 472,148.76 Interest Allocation 10/31/2006 $ 3,226.75 $ 475,375.51 Interest Allocation 11/212006 $ 26,568.73 $ 501,944.24 Sales Tax Distribution 11/30/2006 $ 24,704.54 $ 526,648.78 Sales Tax Distribution 11/30/2006 $ 5,390.16 $ 532,038.94 Interest Allocation 12/312006 $ 76,171.71 $ 455,867.23 Raytheon Development Project 12/13/2006 $ 53,828.29 $ 402,038.94 Raytheon Development Project 12/28/2006 $ 24,567.26 $ 426,606.20 Sales Tax Distribution 12/31/2006 $ 6,423.04 $ 433,029.24 Interest Allocation 1/30/2007 $ 24,665.79 $ 457,695.03 Sales Tax Distribution 1/31/2007 $ 3,073.42 $ 460,768.45 Interest Allocation 2/28/2007 $ 2,741.00 $ 463,509.45 Interest Allocation 3/2/2007 $ 31,112.33 $ 494,621.78 Sales Tax Distribution City of Salina - Special 1/4 Cent Sales Tax Cash Flow Detail CITY OF SALINA SPECIAL 1/4 CENT SALES TAX CASH FLOW DETAIL 3/2912007 $ 21,851.50 $ 516,473.28 Sales Tax Distribution 3/3112007 $ 2,212.32 $ 518,685.60 Interest Allocation 4/3012007 $ 23,184.03 $ 541,869.63 Sales Tax Distribution 4/3012007 $ 2,244.28 $ 544,113.91 Interest Allocation 5/3012007 $ 27,796.70 $ 571,910.61 Sales Tax Distribution 5/31/2007 $ 2,472.52 $ 574,383.13 Interest Allocation 6/30/2007 $ 2,442.48 $ 576,825.61 Interest Allocation 7/6/2007 $ 24,940.17 $ 601,765.78 Sales Tax Distribution 7/18/2007 $ 15,000.00 $ 586,765.78 Salina Downtown Fa~ade Program 7/3112007 $ 3,335.58 $ 590,101.36 Interest Allocation 8/6/2007 $ 25,951.39 $ 616,052.75 Sales Tax Distribution 8/612007 $ 24,000.00 $ 592,052.75 Premier Pneumatics 8/1512007 $ 20,000.00 $ (20,000.00) $ 592,052.75 North Central RPC 3 year program 8/30/2007 $ 26,428.83 $ 618,481.58 Sales Tax Distribution 8/3112007 $ 618,481.58 Interest Allocation 8/31/2007 $ (50,000.00) $ 668,481.58 Kansas Army National Guard 8/3112007 $ 4,839.93 $ 673,321.51 Interest Allocation 9/24/2007 $ 52,520.00 $ 620,801.51 Hawker Beechcraft 9/30/2007 $ 2,727.87 $ 623,529.38 Interest Allocation 101212007 $ 26,030.30 $ 649,559.68 Sales Tax Distribution 10/3112007 $ 29,210.05 $ 678,769.73 Sales Tax Distribution 10/3112007 $ 2,161.36 $ 680,931.09 Interest Allocation 11/30/2007 $ 23,282.55 $ 704,213.64 Sales Tax Distribution 11/3012007 $ 2,719.40 $ 706,933.04 Interest Allocation 12/31/2007 $ 26,013.21 $ 732,946.25 Sales Tax Distribution 12/3112007 $ 4,740.95 $ 737,687.20 Interest Allocation 1/1/2008 $ 50,000.00 $ 687,687.20 Salina Downtown Fa~ade Program 1/28/2008 $ 45,000.00 $ 642,687.20 Entreprenuershlp Program 1/3112008 $ 2,537.03 $ 645,224.23 Interest Allocation 2/1/2008 $ 26,978.35 $ 672,202.58 Sales Tax Distribution 2/2512008 $ 49,200.00 $ 623,002.58 CAY Aerospace 2/27/2008 $ 30,615.89 $ 653,618.47 Sales Tax Distribution 2/2712008 $ 45,000.00 $ (45,000.00) $ 653,618.47 Entreprenuershlp Program 2/2912008 $ 2,492.80 $ 656,111.27 Interest Allocation 3/3112008 $ 26,161.69 $ 682,272.96 Sales Tax Distribution 3/3112008 $ 3,832.04 $ 686,105.00 Interest Allocation 4/2512008 $ 100,000.00 $ 586,105.00 K-5tate Salina 4/3012008 $ 22,281.88 $ 608,386.88 Sales Tax Distribution 4/3012008 $ 1,158.73 $ 609,545.61 Interest Allocation 5/2112008 $ 21,000.00 $ 588,545.61 Thunderstruck, Inc. 5/31/2008 $ 629.12 $ 589,174.73 Interest Allocation 5/3112008 $ 589,174.73 Sales Tax Distribution 6121/2008 $ 50,000.00 $ (50,000.00) $ 589,174.73 Salina Downtown Fa!;ade Program 6/3012008 $ 857.21 $ 590,031.94 Interest Allocation 7/1/2008 $ 27,766.55 $ 617,798.49 Sales Tax Distribution 7/1/2008 $ 24,981.03 $ 642,779.52 Sales Tax Distribution 7/31/2008 $ 1,118.88 $ 643,898.40 Interest Allocation 8/5/2008 $ 27,578.21 $ 671,476.61 Sales Tax Distribution 8/29/2008 $ 29,188.36 $ 700,664.97 Sales Tax Distribution 8/29/2008 $ 52,520.00 $ (52,520.00) $ 700,664.97 Hawker Beechcraft 8/3112008 $ 2,296.88 $ 702,961.85 Interest Allocation 9/29/2008 $ 26,472.94 $ 729,434.79 Sales Tax Distribution 9/30/2008 $ 649.46 $ 730,084.25 Interest Allocation 10/24/2008 $ 17,868.65 $ (17,868.65) $ 730,084.25 K-5tate Salina 10/31/2008 $ 251.79 $ 730,336.04 Interest Allocation 11/5/2008 $ 28,000.96 $ 758,337.00 Sales Tax Distribution 11/19/2008 $ 24,000.00 $ (24,000.00) $ 758,337.00 Premier Pneumatics 11/30/2008 $ 1,858.85 $ 760,195.85 Interest Allocation 12/1/2008 $ 26,729.47 $ 786,925.32 Sales Tax Distribution 12/29/2008 $ 26,836.03 $ 813,761.35 Sales Tax Distribution 1/1512009 $ 5,483.08 $ (5,483.08) $ 813,761.35 K-5tate Salina 1/29/2009 $ 30,634.53 $ 844,395.88 Sales Tax Distribution 1/31/2009 $ 404.81 $ 844,800.69 Interest Allocation 2/1/2009 $ 40,000.00 $ 804,800.69 SDllnc. 2/2612009 $ 26,130.22 $ 830,930.91 Sales Tax Distribution 2/2812009 $ 871.61 $ 831,802.52 Interest Allocation 3/30/2009 $ 27,862.35 $ 859,664.87 Sales Tax Distribution 3/3112009 $ 45.51 $ 859,710.38 Interest Allocation 4/3012009 $ 22,080.48 $ 881,790.86 Sales Tax Distribution 4/3012009 $ 32.59 $ 881,823.45 Interest Allocation 5/19/2009 $ 744.86 $ (744.86) $ 881,823.45 K-5tate Salina City of Salina - Special 1/4 Cent Sales Tax Cash Flow Detail CITY OF SALINA SPECIAL 1/4 CENT SALES TAX CASH FLOW DETAIL 5/19/2009 $ 23,252.52 $ (23,252.52) $ 881,823.45 K-State Salina 5/30/2009 $ 328.84 $ 882,152.29 Interest Allocation 6/5/2009 $ 25,896.52 $ 908,048.81 Sales Tax Distribution 6/2212009 $ 229.00 $ (229.00) $ 908,048.81 K-State Salina 6/24/2009 $ 50,000.00 $ 858,048.81 Salina Downtown Fa,,:ade Program 6/29/2009 $ 25,765.90 $ 883,814.71 Sales Tax Distribution 6/30/2009 $ 28.30 $ 883,843.01 Interest Allocation 7/8/2009 $ (480.84) $ 883,362.17 Lambertz TIF Credit 7/31/2009 $ 28,000.86 $ 911,363.03 Sales Tax Distribution 7/31/2009 $ 1,817.87 $ 913,180.90 Interest Allocation 8/1/2009 $ (289.63) $ 912,891.27 Lambertz TIF Credit 8/25/2009 $ 11,763.48 $ (11,763.48) $ 912,891.27 K-State Salina 8/26/2009 $ (287.52) $ 912,603.75 Lambertz TIF Credit 8/28/2009 $ 24,245.68 $ 936,849.43 Sales Tax Distribution 8/31/2009 $ 1,950.32 $ 938,799.75 Interest Allocation 9/10/2009 $ 14,473.39 $ (14,473.39) $ 938,799.75 K-State Salina 9/2212009 $ (304.02) $ 938,495.73 Lambertz TIF Credit 9/2212009 $ 25,275.02 $ 963,770.75 Sales Tax Distribution 9/30/2009 $ 2,042.66 $ 965,813.41 Interest Allocation 1 0/1/2009 $ 25,275.02 $ 991,088.43 Sales Tax Distribution 1 0/30/2009 $ 7,390.48 $ (7,390.48) $ 991,088.43 K-State Salina 10130/2009 $ 25,694,22 $ 1,016,782.65 Sales Tax Distribution 1 0130/2009 $ 68.16 $ 1,016,850.81 Interest Allocation 11/24/2009 $ (239.64) $ 1,016,611.17 Lambertz TIF Credit 11/24/2009 $ (270.91 ) $ 1,016,340.26 Lambertz TIF Credit 11/30/2009 $ 6,160.76 $ 1,022,501.02 Interest Allocation 12/4/2009 $ 10,737.24 $ (10,737.14) $ 1,022,500.92 K-State Salina 12/29/2009 $ 27,570.56 $ 1,050,071.48 Sales Tax Distribution 12/31/2009 $ 4,847.03 $ 1,054,918.51 Interest Allocation 12/31/2009 $ 160.52 $ 1,055,079.03 Interest Allocation 1/28/201 0 $ (950.37) $ 1,054,128.66 Lambertz TIF Credit 1/29/2010 $ 24,249.57 $ 1,029,879.09 Sales Tax Distribution 1/31/2010 $ 1,540.57 $ 1,031,419.66 Interest Allocation 2/1/2010 $ 8,057.30 $ (8,057.30) $ 1,031,419.66 K-State Salina 2/26/201 0 $ 27,096.11 $ 1,058,515.77 Sales Tax Distribution 2/28/2010 $ 73.20 $ 1,058,588.97 Interest Allocation 3/24/2010 $ 40,000.00 $ 1,018,588.97 SDllnc. 3/24/2010 $ 50,000.00 $ 968,588.97 Salina Downtown Fa,,:ade Program 3/31/2010 $ 26,799.87 $ 995,388.84 Sales Tax Distribution 3/31/2010 $ 80.73 $ 995,469.57 Interest Allocation 4/13/2010 $ (790.68) $ 994,678.89 Lambertz TIF Credit 4/1912010 $ 200,000.00 $ 794,678.89 K-State Salina-Pending Contract 4/29/2010 $ 21,237.40 $ 815,916.29 Sales Tax Distribution 4/30/201 0 $ 72.14 $ 815,988.43 Interest Allocation $ 815,988.43 $ 815,988.43 Totals To date $ 1,788,958.10 $ 723,769.57 $ 249,200.10 $ 815,988.43 Revenues $ 1,687,169.85 Sales Tax Distribution $ (3,613.61) Lambertz TIF Credit $ 105,401.86 Interest Allocation $ 1,788,958.10 Total Expenses and Commitments $ 187,000.00 $ $ 187,000.00 Salina Downtown Fa,,:ade Program $ 80,000.00 $ $ 80,000.00 SDllnc. $ 60,000.00 $ $ 60,000.00 North Central RPC 3 year program $ 130,000.00 $ $ 130,000.00 Raytheon Development Project $ 52,520.00 $ $ 52,520.00 Hawker Beechcraft $ 21,000.00 $ $ 21,000.00 Thunderstruck, Inc. $ 24,000.00 $ $ 24,000.00 Premier Pneumatics $ 45,000.00 $ $ 45,000.00 Entreprenuershlp Program $ $ 49,200.00 $ 49,200.00 CAY Aerospace $ 100,000.00 $ 0.10 $ 100,000.10 K-State Salina $ $ $ Kansas Army National Guard $ 699,520.00 $ 49,200.10 $ 748,720.10 Total City of Salina - Special 1/4 Cent Sales Tax Cash Flow Detail RESOLUTION NUMBER 09-6608 A RESOLUTION REGARDING THE SALINA ECONOMIC DEVELOPMENT INCENTIVES COUNCIL. WHEREAS, that in 2004, Salina voters approved a special one-quarter cent Cf4 cent) sales tax and 12.5% of the revenues from the special sales tax were restricted to the establishment of an economic development fund managed by the City of Salina; and WHEREAS, that in October 2004, the City Commission unanimously approved an initiative proposed by the Salina Airport Authority and the Salina Area Chamber of Commerce to provide incentives to new and existing manufacturing and primary businesses; and WHEREAS, that the City Commission formed an ad hoc committee led by the Mayor and Vice Mayor to further explore the protocol for expending the economic development funds, which then resulted in the establishment of a six member Salina Economic Development Incentives Council pursuant to Resolution No. 05-6220; and WHEREAS, on November 4,2008, Salina voters approved a substitute 0.40 percent (0.40%) special purpose sales tax effective April I, 2009, for a number of purposes, including continuation of an economic development fund managed by the City of Salina. WHEREAS, it is the City Commission's intent to budget 7.8125% of the revenues from the special purpose sales tax for continuation of an economic development fund. SO NOW THEREFORE, BE IT RESOLVED by the governing body of the City of Salina, Kansas: Section 1. Establishment. That the continued need for and status of the Salina Economic Development Incentives Council (S.E.D.I.C.), as established pursuant to Resolution No. 05-6220, is confirmed. Section 2. Responsibilities. The responsibilities of the S.E.D.I.C. are to: (a) Develop and recommend guidelines, policies and processes to the City Commission for grants from the allocated special sales tax funds for incentives to new and existing manufacturers and primary businesses for the purpose of enticing them to relocate or expand capital and/or human investment in Salina/Saline County in order to provide a stimulus to the local economy; (b) Review applications and make specific recommendations to the City Commission regarding grants from the sales tax; (c) Make recommendations to the City Commission, County Commission and/or local government bodies regarding other public economic development incentives; and (d) Provide regular reports to the City Commission, County Commission, Salina Airport Authority Board of Directors and the Chamber of Commerce Board of Directors regarding economic development projects receiving incentives. (e) Review applications and make specific recommendations to the City Commission regarding grants from the sales tax; (f) Make recommendations to the City Commission, County Commission and/or local government bodies regarding other public economic development incentives; and (g) Provide regular reports to the City Commission, County Commission, Salina Airport Authority Board of Directors and the Chamber of Commerce Board of Directors regarding economic development projects receiving incentives. Section 3. Membership. The S.E.D.I.C. will be made up of the following persons: ( a) Mayor; (b) Saline County Commission Chair; (c) Salina Airport Authority Board Chair; (d) Salina Chamber of Commerce Board Chair; (e) Two citizens appointed by the Mayor and the City Commission; and (f) Citizen appointed by the Saline County Commission The citizens appointed by the City and County shall serve for terms of two years and shall be eligible for reappointment in accordance with Resolution No. 90-4242. Section 4. Oreanization. The S.E.D.I.C. chair shall be the Mayor and vice-chair shall be the Saline County Commission Chair. Section 5. Administration. Administration of the S.E.D.1C. shall be as follows: (a) Meetings are to be held at least annually, and otherwise as needed for related projects, programs and funding applications; (b) Professional staffing for the S.E.DJ.C. to be provided by the City Manager, County Administrator, Airport Authority Executive Director and Chamber of Commerce President; (c) Administrative/clerical support shall be provided by the Chamber of Commerce; (d) All meetings/records are covered under the Kansas Open Meetings Act and Open Records Act as specified by State law; and (e) The use oflocal organizations and other resources is highly encouraged. Section 6. Miscellaneous. Miscellaneous considerations regarding this council are as follows: (a) For purposes of the S.E.D.I.C. "primary business" includes manufacturing, processing, interstate distribution, research, aviation, aerospace, or service sector businesses which derive a minimum of 90% of revenue from sources outside Saline County; (b) Sales tax grants are to focus primarily on human capital investment in training and capital investment in plant, property and equipment, with priority given to human capital investment in training. Also, it is important to ensure that existing primary businesses remain eligible for grant funding; and (c) A program performance review is recommended to occur annually. This will allow an opportunity to make any adjustments deemed necessary for the remaining term of the special sales tax funding. Section 7. Effective Date. This resolution shall take effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 23rd day of March, 2009. John K. Vanier II, Mayor [SEAL] ATTEST: Lieu Ann Elsey, CMC, City Clerk