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7.3 Ad Valorem Exemption CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 1/6/97 4:00 P.M. AGENDASECTION: ORIGINATING DEPARTMENT: APPROVEDFOR NO. AGENDA: 7 PLANNING & DEVELOPMENT No.ITEM 3 ROY DUDARK BY: Item Consider an ordinance granting final approval of a property tax exemption to ADM Milling Company. Background On July 10, 1995, the City Commission approved Resolution 95-4886 granting ADM Milling a property tax exemption for new facilities and equipment at 850 E. Pacific Avenue. The resolution stated that the actual percentage of exemption would be based on the amount of capital investment and the number of new full-time employees added prior to project completion. The exemption is to be established by ordinance. ADM Milling has submitted an application for project completion review which indicates that the capital investment and job creation process is fully complete. Presented below is a comparison between projected and actual activity: Projected Actual Capital Investment $2,500,000 $2,736,285 Added Employees 6 8 Based on the actual activity and the city's adopted policy, the tax exemption would be 100% for years 1-5 and 50% for years 6-10. No exemption is granted for the land or professional fees but a 50 percent location premium is included as the project is in the Special Redevelopment Area of North Salina. A cost-benefit analysis was presented at the public hearing on July 10, 1995. The exemption would apply to all taxing districts. Recommended Action Adopt the attached ordinance. Encl: Application Ordinance 97 - 9781 CITY OF SALINA, KANSAS PROJECT COMPLETION REVIEW FOR PROPERTY TAX EXEMPTION APPLICANT INFORMATION Applicant business name and address: ADM MILLING CO. - 850 E. PACIFIC - SALINA~ KS 67401 Name, address a,d telephone number of busi,ess contact perso,: DAN WELLS @ ADM MILLING CO. - 850 E. PACIFIC, SALINA, KS 67401 (913-825-1541) II. BUSINESS INFORMATION 1. Existing and projected nature of business activities: WESTERN STAR MILLING COMPANY: ADMINISTRATION AND QUALITY CONTROL OF A LOCAL FLOUR MILL COMPANY. ADM MILLING CO: PROVIDE TECHNICAL AND ENGINEERING SERVICES TO MILLING DIV. PLANTS ACROSS NORTH AMERICAN, CHINA, BELIZE AND BARBADOS. ECONO-FLO: PLANT DESIGN, EQUIPMENT DESIGN, EQUIPMENT FABRICATION AND INSTALLATION III. PR00ECI INFORMATION ACROSS SAME AREA AS ABOVE. Amount of capital invested in the project from date of approval to current date: MACHINERY & EQUIPMENT: $644,455 LAND: $92,600; BUILDING & IMPROVEMENTS: $2.241.830 (INCLUDES ARCHITECT FEES) (PLEASE SEE ATTACHED SHEET FOR DETAILS) Note: Attach list of expenditures by item and amount. Number of permanent full-time jobs base employment level to current level: created by the project from 8 JOBS (REFER TO ATTACHED SHEET) Note: Attach current list of employees by job title and number. IV. PROJECT STATUS (Check one) x Fully complete Partially complete In-progress 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. Typed Name and Title '~igna~dr~ ~ Date (Rev. t2/91)