7.2 Ad Valorem Exemption CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
AGENDA SECTION: O~GINATING DEPARTMENT: APPROVED FOR
NO. 7 AGENDA:
ITEM: PLANNING & DEVELOPMENT
NO. 2 BY: Roy Dudark~ BY:
Item
Consider final approval of property tax exemption for Salina
Vortex Corporation.
Backqround
On February 22, 1993, the City Commission approved Resolution 93-
4561:/ granting Salina Vortex a property tax exemption for an
expanded manufacturing facility and new machinery and equipment at
3024 Arnold Avenue. In granting the exemption, the resolution
spec~fied 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
shall be established by subsequent ordinance.
Salina Vortex 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 $375,000 $564,364
New Jobs 8 11
Based on the actual activity in accordance with the adopted
policy, the tax exemption would be 50.2% for years 1-5 and 25.1%
for years 6-10. No exemption is granted for pre-existing
~ ~ facilities or the underlying land. The exemption would apply to
all taxing districts. A cost-benefit analysis was completed and
presented at the public hearing prior to approval of Resolution
93-4561.
COMMISSION AC~ON
MORON BY SECOND BY
~ THAT:
CITY OF SALINA
~ REQUEST FOR COMMISSION ACTION DATE TIME
~: 4:00 P.M.
~16195
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR
NO. AGENDA:
ITEM PLANNING & DEVELOPME~ r
NO. Roy Dudark
, Po, q~ ;~ BY: BY:
i Recommended Action
Adopt the attached ordinance formally establishing the tax
exemption for Salina Vortex Corporation:~
: Attachments: Ordinance #95- 9674
i Application
~ cc: ':Lee Young
ORDINANCE NUMBER 95-9674
AN ORDINANCE EXEMPTING CERTAIN PROPERTY OWNED BY
SALINA VORTEX CORPORATION, LOCATED AT 3024 ARNOLD AVENUE,
SALINA, KANSAS, FROM AD VALOREM TAXATION AND PROVIDING FOR
CERTAIN IN LIEU OF TAX PAYMENTS.
BE IT ORDAINED by the Governing body of the .City of Salina,
Kansas:
Section 1. That the governing body hereby ratifies its February
22, 1993 adoption of Resolution Number 93-4561 granting Salina Vortex
Corporation exemption from ad valorem taxes for property to be located at or
about 3024 Arnold Avenue, Salina, Kansas, under terms of the City of Salina
Tax Exemption Policy and the conditions set out herein, all pursuant to
Section 13 of Article 11 of the Kansas Constitution and K.S.A. 79-251.
Section 2. That the tax exemption shall only apply to buildings and
improvements constructed and equipment and machinery purchased between
February 22, 1993 and August 22, 1994 for facilities located on the following
described property:
A tract of land located in the North half of Section Three
(3), Township Fifteen (15) South, Range Three (3) West of
the Sixth Principal Meridian in the Schilling Subdivision of
the City of Salina, Saline County, Kansas; more particularly
described as follows: Commencing at the Northwest corner
of the Northeast Quarter (NE/4) of said Section Three (3),
Township Fifteen (15) South, Range Three (3) West;
Thence East along the North line of said Section Three (3)
on an assumed bearing of South eighty-nine degrees
fifty-three minutes twenty-four seconds East (S.89°53'24"E.)
a distance of two hundred twenty-nine and ten hundredths
feet (229.10') to the centerline of Arnold Avenue; Thence
South zero degrees six minutes twenty-four seconds East
(S.00°06'24"E.) a distance of one hundred eighty-three and
nineteen hundredths feet (183.19'); Thence South
eighty-nine degrees fifty-three minutes thirty-six seconds
West (S.89°53'36"W.) a distance of forty feet (40.00') to
the TRUE POINT OF BEGINNING; Thence South zero
degrees six minutes twenty-four seconds East
(S.00°06'24"E.) a distance of two hundred fifty feet
(250.00'); Thence South eighty-nine degrees fifty-three
minutes thirty-six seconds West (S.89°53'36"W.) a distance
of two hundred thirty-five feet (235.00'); Thence North zero
degrees six minutes twenty-four seconds West
(N.00°06'24"W.) a distance of two hundred fifty feet
(250.00'); Thence North eighty-nine degrees fifty-three
minutes thirty-six seconds East (N.89°53'36"E.) a distance
of two hundred thirty-five feet (235.00') to the TRUE
POINT OF BEGINNING.
The above described tract contains 1.349 acres, more or
less.
Section 3. The governing body finds and makes a factual
determination that the exemption herein granted for tangible personal property
is required to retain jobs in the State of Kansas.
Section 4. That no exemption shall be granted for taxes due on the
above described land upon which the qualified buildings and improvements are
to be located.
Section 5. That the tax exemption granted shall be fifty and two
tenths percent (50.2~o) of the taxes due on the qualified property.
Section 6. That the tax exemption shall be for a term of ten (10)
years commencing with tax year 1995, with the total exemption due (fifty and
two tenths percent) (50.2%) granted for years one (1) through five (5) and
one-half (1/2) of the total exemption due (twenty-five and one tenth percent)
(25.1%) granted for years six (6) through ten (10).
Section 7. That the amount of property taxes not exempted or
equivalent payments in lieu of such taxes shall be paid annually to the County
Treasurer. The County Treasurer shall distribute said payments to affected
taxing jurisdictions according to the provisions of K.S.A. 12-148. Failure of
the applicant to fully make such payment when due shall be deemed grounds
for the revocation of said tax exemption.
Section 8. That the applicant shall be responsible for filing the
appropriate tax exemption claim forms as required by the statutes of the State
of Kansas.
2
Section 9. That the applicant shall submit an annual report as
required by the City of Salina tax exemption policy by January 15 of each
year for as long at the exemption remains in effect.
Section 10. The Board of Commissioners shall have the right to
revoke this tax exemption for failure to comply with the terms and conditions
of this ordinance or the provisions of the City of Salina Tax Exemption Policy.
Section 11. That this ordinance shall be in full force and effect
from and after its adoption and publication once in the official city
newspaper.
Introduced: February 6, 1995
Passed: February 13, 1995
(SEAL) Joseph A. Warner, Mayor
ATTEST:
Judy D. Long, City Clerk