6.3 Ordinance No. 22-11116 Tax Exemption Amending Ordinance 22-11099CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
6/6/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO 6
BY:df
ITEM City Manager's Office FINAL APPROVAL:
NO: 3
Page I BY: Mike Schrage, City Manager BY:
ITEM: Ordinance No. 22-11116 amending and supplementing Ordinance No. 22-11099
exempting certain property in the City of Salina, Kansas, from ad valorem taxation for
economic development purposes pursuant to Article 11, Section 13 of the Kansas Constitution;
providing the terms and conditions for ad valorem tax exemption; and describing the property
so exempted.
BACKGROUND:
Commissioners will recall adopting Ordinance No. 22-11099 on February 14, 2022 determining that
the building additions to be constructed by McShares, Inc. (the "Company") and used exclusively in
the Company's business of manufacturing articles of commerce should be granted tax exemption for
economic development purposes in accordance with Article 11, Section 13 of the Kansas Constitution
and pursuant to K.S.A. 79-251. Attached are copies of Ordinance No. 22-11099 and the associated
Request for City Commission Action associated with the public hearing and first reading of the
ordinance (the "February 7, 2022 Blue Sheet").
While the tax exemption applies only to the building additions to be constructed by the Company
beginning this year, Section 1 of Ordinance No. 22-11099 included a legal description intended to
describe the property upon which the building additions will be constructed at the Company's facility
located at 1835 E. North Street. In the course of other title work relating to the Company's facility, it
was recognized that the legal description included in Ordinance No. 22-11099 was not complete and
accurate.
Bond counsel (Sarah Steele with Gilmore & Bell, P.C.) has since been provided with complete and
accurate legal descriptions of the three parcels that make up the site of the Company's facility and
has prepared the attached proposed Ordinance No. 22-11116. The proposed ordinance amends and
supplements Ordinance No. 22-11099 by including in Section 1 complete legal descriptions of all three
parcels included within the site of the Company's facility. Section 1 is otherwise unchanged.
Section 2 of Ordinance No. 22-11099 addressed authorization of the Tax Incentive Agreement
between the City and the Company, which included the same legal description as Ordinance No. 22-
11099. The language of Section 2 in proposed Ordinance No. 22-11116 remains the same, however,
the attached newly proposed Tax Incentive Agreement authorized under proposed Ordinance No. 22-
11116 has also been modified to include legal descriptions of all three parcels that make up the site
of the Company's facility.
FISCAL NOTE:
The proposed specific action of amending and supplementing the legal description included in
Ordinance No. 22-11099 and the original Tax Incentive Agreement does not have a fiscal impact on
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
6/6/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM City Manager's Office FINAL APPROVAL:
NO:
Page 2 BY: Mike Schrage, City Manager BY:
the City and does not modify the tax exemption that the Governing Body previously determined should
be granted by enacting Ordinance No. 22-11099. For reference, the fiscal impact of the tax exemption
is addressed in the "Fiscal Note" segment of the attached February 7, 2022 Blue Sheet.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for the City Commission's consideration:
1.) Approve Ordinance No. 22-11116.
2.) Approve Ordinance No. 22-11116 with amendments as the City Commission deems
appropriate.
3.) Postpone consideration of Ordinance No. 22-11116 to a specified date and time and provide
staff direction regarding additional information or amendments the City Commission would like
to request for their further consideration.
4.) Approve Ordinance on first reading and provide direction regarding additional information or
amendments the City Commission would like to request for their further consideration at the
time of second reading.
5.) Vote to deny Ordinance No. 22-11116 resulting in Ordinance No. 22-11099 and the initial Tax
Incentive Agreement with the Company being left to include an incomplete and inaccurate legal
description of the site of the Company's facility as application is made to the Kansas Board of
Tax Appeals for approval of the tax exemption.
Staff recommends Option #1.
Attachments:
1. Ordinance No. 22-11116
2. Ordinance No. 22-11099
3. Tax Incentive Agreement (with revised legal descriptions)
4. February 7, 2022 Blue Sheet
CC: Sarah Steele, Gilmore & Bell, P.C., Bond Counsel
Jeff Maes, ComPro Realty
Monte W. White, President/CEO, REPCO
GILMORE & BELL, P.C.
05/20/2022
ORDINANCE NO.
AN ORDINANCE AMENDING AND SUPPLEMENTING ORDINANCE NO.
22-11099 EXEMPTING CERTAIN PROPERTY IN THE CITY OF SALINA,
KANSAS, FROM AD VALOREM TAXATION FOR ECONOMIC DEVELOPMENT
PURPOSES PURSUANT TO ARTICLE 11, SECTION 13 OF THE KANSAS
CONSTITUTION; PROVIDING THE TERMS AND CONDITIONS FOR AD
VALOREM TAX EXEMPTION; AND DESCRIBING THE PROPERTY SO
EXEMPTED.
WHEREAS, the governing body of the City of Salina, Kansas (the "City"), passed Ordinance No.
22-11099 determining that the building additions constructed by McShares, Inc. (the "Company") and used
exclusively in the Company's business of manufacturing articles of commerce should be granted tax
exemption for economic development purposes; and
WHEREAS, the legal description in Ordinance No. 22-11099 was not complete and accurate; and
WHEREAS, the governing body of the City is amending and supplementing the legal description in
Ordinance No. 22-11099;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS:
Section 1. Section 1 of Ordinance No. 22-11099 is deleted and replaced in its entirety by the
following:
Section. 1. Grant of Exemption. In accordance with Article 11, Section 13 of
the Kansas Constitution, and pursuant to K.S.A. 79-251, Resolution No. 22-8022 of the City,
the governing body of the City hereby determines that the following described property
should be granted a 100% ad valorem tax exemption, provided no exemption may be granted
from the ad valorem tax levied by a school district pursuant to the provisions of K.S.A. 72-
53,113 and amendments thereto, and subject to proper application to and approval of the
State Board of Tax Appeals, and further subject to the conditions set forth herein:
The building improvements constructed beginning in 2022 on the following property (the
"Project"):
PARCELI:
A TRACT OF LAND LOCATED IN THE NORTHWEST QUARTER (NE ''/<) OF SECTION SEVEN (7)
TOWNSHIP FOURTEEN (14) SOUTH, RANGE TWO (2) WEST OF THE SIXTH (6T") PRINCIPAL
MERIDIAN IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT AN IRON PIN AT THE NORTHWEST CORNER OF LOT NO.4 OF THE BROWN AND
BROWN ADDITION AS RECORDED IN PLAT BOOK A-4, PAGE 13, IN THE OFFICE OF THE SALINE
COUNTY REGISTER OF DEEDS; THENCE NORTH 0°00'00" EAST ALONG THE WEST LINE OF LOT
NO. 5 A DISTANCE OF TWO HUNDRED THIRTY AND NINETY-FIVE HUNDREDTHS (230.95) FEET
TO AN IRON PIN; THENCE NORTH 89°00'00" EAST A DISTANCE OF ONE HUNDRED THIRTY-ONE
AND FIFTY FOUR HUNDREDTHS (230.80) FEET TO A POINT ON THE SOUTH LINE OF LOT NO. 5,
600596.20226\EDX\EDX ORDINANCE
SAID POINT BEING NORTH 88056'00" EAST AND ONE HUNDRED THIRTY-ONE AND FIFTY-FOUR
HUNDREDTHS (131.54) FEET FROM THE POINT OF BEGINNING; THENCE SOUTH 0°00'00" EAST A
DISTANCE OF FORTY-THREE AND EIGHT -SIX HUNDREDTHS (43.86) FEET; THENCE NORTH
90000'00" WEST A DISTANCE OF ONE HUNDRED THIRTY-ONE AND FIFTY-TWO HUNDREDTHS
(131.52) FEET TO THE WEST LINE OF LOT NO, 4; THENCE NORTH 0°00'00" EAST ALONG THE WEST
LINE OF LOT NO. 4 A DISTANCE OF FORTY-ONE AND FORTY-ONE HUNDREDTHS (41.41) FEET,
MORE OR LESS, TO THE POINT OF BEGINNING. SAID TRACT CONTAINING 0.83 ACRES, MORE
OR LESS, SUBJECT TO UTILITY EASEMENTS AND OTHER EASEMENTS, RIGHTS -OF WAY AND
RESTRICTIONS OF RECORD.
PARCEL2:
THE WEST 203 FEET OF LOT FOUR (4) AND THE WEST 203 FEET OF THE SOUTH 230.95 FEET OF
THE NORTH 385.41 FEET OF LOT FIVE (5), IN THE BROWN AND BROWN ADDITION TO THE CITY
OF SALINA, SALINE COUNTY, KANSAS, LESS THE FOLLOWING DESCRIBED PART THEREOF:
BEGINNING AT THE NORTHWEST CORNER OF LOT FOUR (4) OF SAID BROWN AND BROWN
ADDITION; THENCE NORTH ALONG THE WEST LINE OF LOT FIVE (5) OF SAID BROWN AND
BROWN ADDITION A DISTANCE OF 230.95 FEET TO AN IRON PIN; THENCE NORTH 89°00'00" EAST
A DISTANCE OF 131.45 FEET; THENCE SOUTH A DISTANCE OF 230.80 FEET TO A POINT ON THE
SOUTH LINE OF SAID LOT FIVE (5), SAID POINT BEING NORTH 88°56'00" E AND 131.54 FEET FROM
THE POINT OF BEGINNING; THENCE SOUTH A DISTANCE OF 43.86 FEET; THENCE WEST A
DISTANCE OF 131.52 FEET TO THE WEST LINE OF SAID LOT FOUR (4); THENCE NORTH ALONG
THE WEST LINE OF SAID LOT FOUR (4) A DISTANCE OF 41.41 FEET, MORE OR LESS, TO THE
POINT OF BEGINNING, SAID TRACT CONTAINING 0.83 ACRES, MORE OR LESS.
PARCEL 3:
ALL OF LOT FOUR (4) EXCEPT THE WEST 203 FEET THEREOF, AND THE EAST 137 FEET OF THE
WEST 340 FEET OF THE SOUTH 230.95 FEET OF THE NORTH 385.41 FEET OF LOT FIVE (5) IN THE
BROWN AND BROWN ADDITION TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; AND A
PERMANENT NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS OVER THE EAST 30 FEET
OF THE WEST 203 FEET OF SAID LOT FOUR (4) AND THE EAST 30 FEET OF THE WEST 203 FEET
OF THE SOUTH 230.95 FEET OF THE NORTH 385.41 FEET OF LOT FIVE (5) OF SAID BROWN AND
BROWN ADDITION, WHICH EASEMENT SHALL BE A PERMANENT NON-EXCLUSIVE EASEMENT
SO LONG AS THE SAME IS BEING USED BY THE GRANTEE OR ITS SUCCESSORS AND ASSIGNS.
IF SAID EASEMENT IS HEREAFTER ABANDONED OR VACATED, ALL OF THE RIGHT, TITLE AND
INTEREST OF THE GRANTEE IN AND TO THE REAL ESTATE SUBJECT TO SAID EASEMENT SHALL
CEASE AND TERMINATE AND THE SAME SHALL REVERT TO THE GRANTOR AND ITS
SUCCESSORS AND ASSIGNS. ANY SUCH ABANDONMENT MAY BE ESTABLISHED BY WRITTEN
INSTRUMENT AND EXECUTED AND ACKNOWLEDGED BY THE OWNERS OF SAID EASEMENT
STATING THE FACT OF ABANDONMENT AND NON-USE.
Section 2. Authorization of Tax Incentive Agreement. The form of the Tax Incentive
Agreement presented to the governing body of the City on this date is hereby approved, with such minor
corrections or modifications as may be approved by the Mayor, such approval to be conclusively evidenced
by execution of the agreement by the Mayor and the City Clerk, and the Mayor and City Clerk are hereby
authorized to execute the Tax Incentive Agreement on behalf of the City.
Section 3. Ratification of Ordinance No. 22-11099. Except as amended and supplemented
by this Ordinance, the rest and remainder of Ordinance No. 22-11099 remains in full force and effect. If there
is a change in ownership of the exempt property, the ad valorem tax exemption granted by this Ordinance is
not transferable without the express approval of the City.
Section 4. Effective Date. This Ordinance shall be in full force and effect from and after its
passage, execution by the Mayor, and publication in the official city newspaper as provided by law.
ORDINANCE
PASSED AND SIGNED June 13, 2022.
Mayor
(SEAL)
Attest:
City Clerk
600596.20226\EDX\EDX ORDINANCE
(Signature Page to Ordinance)
CERTIFICATE OF COPY
I hereby certify that the attached copy is a true and correct copy of Ordinance No. 22- of the
governing body of the City of Salina, Kansas, duly passed by the governing body, signed by the Mayor, and
published in the official City newspaper on the respective date stated therein, and that the signed original of
such Ordinance is on file in my office.
[SEAL]
600596.20226\EDX\EDX ORDINANCE
(Clerk's Certification of Ordinance)
City Clerk
A
ORDINANCE NO. 22-11099
AN ORDINANCE EXEMPTING CERTAIN PROPERTY IN THE CITY OF SALINA,
KANSAS, FROM AD VALOREM TAXATION FOR ECONOMIC DEVELOPMENT
PURPOSES PURSUANT TO ARTICLE 11, SECTION 13 OF THE KANSAS
CONSTITUTION; PROVIDING THE TERMS AND CONDITIONS FOR AD
VALOREM TAX EXEMPTION; AND DESCRIBING THE PROPERTY SO
EXEMPTED.
WHEREAS, Article 11, Section 13 of the Kansas Constitution permits the governing body of any city
by ordinance to exempt from ad valorem taxation all or any portion of the appraised valuation of all buildings,
together with the land upon which such buildings were located, and all tangible personal property associated
therewith used exclusively by a business for the purpose of manufacturing articles of commerce for not more
than ten (10) calendar years after the calendar year in which the business commences its operations or in which
expansion of tin existing business is completed; and
WHEREAS, the governing body of the City of Salina, Kansas (the "City"), after conducting a public
hearing pursuant to published notice as provided by law, has determined that the building additions constructed
by McShares, Inc. (the "Company") and used exclusively in the Company's business of manufacturing articles
of commerce should be granted tax exemption for economic development purposes; and
WHEREAS, the governing body of the City has by previously adopted resolution made the findings of
fact required by K.S.A. 79-251;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS:
Section 1. Grant of Exemption. In accordance with Article 11, Section 13 of the Kansas
Constitution, and pursuantto K.S.A. 79-251, Resolution No. 22-8022 ofthe City, the governing body of the City
hereby determines that the following described property should be granted a 100% ad valorem tax exemption,
provided no exemption may be granted from the ad valorem tax levied by a school district pursuant to the
provisions of K.S.A. 72-53,113 and amendments thereto, and subject to proper application to and approval of the
State Board of Tax Appeals, and further subject to the conditions set forth herein:
The building improvements constructed beginning in 2022 on the following property (the "Project"):
ALL OF LOT FOUR (4) EXCEPT THE WEST 203 FEET THEREOF, AND THE EAST 137
FEET OF THE WEST 340 FEET OF THE SOUTH 230.95 FEET OF THE NORTH 385.41
FEET OF LOT FIVE (5), IN THE BROWN AND BROWN ADDITION TO THE CITY OF
SALINA, SALINE COUNTY, KANSAS.
The exemption shall commence as of January I following completion of the Project and shall be for a term of 10
years. Continuation of the ad valorem tax exemption shall be subject to compliance by the Company with the
terms and conditions of the Tax Incentive Agreement herein described, and the exemption may be withdrawn by
the governing body upon a finding that the Company is no longer entitled to such exemption under the terms of
the Tax Incentive Agreement,
Section 2. Authorization of Tax Incentive Agreement. The form of the Tax Incentive
Agreement presented to the governing body of the City on this date is hereby approved, with such minor
corrections or modifications as may be approved by the Mayor, such approval to be conclusively evidenced by
execution of the agreement by the Mayor and the City Clerk, and the Mayor and City Clerk are hereby authorized
to execute the Tax Incentive Agreement on behalf of the City.
Section 3. Transferability of Exemption. If there is a change in ownership of the exempt
property, the ad valorem tax exemption granted by this Ordinance is not transferable without the express approval
of the City.
1ti
Section 4. Effective Date. This Ordinance shall be in full force and effect from and after its
passage, execution by the Mayor, and publication in the official city newspaper as provided by law.
[balance of this page intentionally left blank]
z
IL
WN
C
' (SEAL)
Attest:
PASSED AND SIGNED February 14, 2022.
— I; `) '
Trent W. Davis, M.D., Mayor
(Signature Page to Ordinance)
TAX INCENTIVE AGREEMENT
This Tax Incentive Agreement (the "Agreement") is entered into as of June 1 2022 between the
City of Salina, Kansas, a municipal corporation (the "City") and McShares, Inc. (the "Company").
Recitals
A. The City is empowered by Article 11, Section 13 of the Kansas Constitution to grant property
tax exemptions to businesses which meet the constitutional criteria.
B. After conducting and reviewing an analysis of the respective costs and benefits of the
proposed business expansion, including the effect on state revenues, and after conducting a public hearing
pursuant to published notice as required by law, the City has made determinations (1) that it is willing to grant
certain property tax exemptions to the Company as an inducement to the expansion of its business facilities
in the City, in the form of property tax reductions and/or exemptions, and (2) that the property which will be
the subject of a property tax exemption will be used by the Company exclusively for one of the exempt
purposes described in Article 11, Section 13 of the Kansas Constitution.
C. The City is willing to cooperate with the Company to secure for the Company the tax.
exemptions set forth in this Agreement.
Agreement
In consideration of the mutual conditions, covenants and promises contained herein, the parties hereto
agree as follows.
1. Representations and Covenants of the Company. The Company makes the following
covenants and representations as the basis for the undertakings on its part herein contained:
(a) The Company is a corporation, duly organized and existing under the laws of the State of
Kansas, and is duly authorized and qualified to do business in the State of Kansas, with lawful power and
authority to enter into this Agreement, acting by and through its duly authorized officers.
(b) The Company currently owns and operates a manufacturing facility on property located at
1835 E. North Street in the City. The Company will build and equip an approximately 36,000 square foot
expansion of the manufacturing facility and a 6,000 to 10,000 square foot addition for office and lab space in
front of the existing facility at a cost of at least $6,000,000 on the following described real property (the
"Project"):
PARCEL 1:
A TRACT OF LAND LOCATED IN THE NORTHWEST QUARTER (NE ''/a) OF SECTION SEVEN (7)
TOWNSHIP FOURTEEN (14) SOUTH, RANGE TWO (2) WEST OF THE SIXTH (6TH) PRINCIPAL
MERIDIAN IN SALINE COUNTY, KANSAS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT AN IRON PIN AT THE NORTHWEST CORNER OF LOT NO.4 OF THE BROWN AND
BROWN ADDITION AS RECORDED IN PLAT BOOK A-4, PAGE 13, IN THE OFFICE OF THE SALINE
COUNTY REGISTER OF DEEDS; THENCE NORTH 0°00'00" EAST ALONG THE WEST LINE OF LOT
NO. 5 A DISTANCE OF TWO HUNDRED THIRTY AND NINETY-FIVE HUNDREDTHS (230.95) FEET
TO AN IRON PIN; THENCE NORTH 89°00'00" EAST A DISTANCE OF ONE HUNDRED THIRTY-ONE
AND FIFTY FOUR HUNDREDTHS (230.80) FEET TO A POINT ON THE SOUTH LINE OF LOT NO. 5,
SAID POINT BEING NORTH 88056'00" EAST AND ONE HUNDRED THIRTY-ONE AND FIFTY-FOUR
600596.20226\TAX INCENTIVE AGMT
HUNDREDTHS (131.54) FEET FROM THE POINT OF BEGINNING; THENCE SOUTH 0°00'00" EAST A
DISTANCE OF FORTY-THREE AND EIGHT -SIX HUNDREDTHS (43.86) FEET; THENCE NORTH.
90000'00" WEST A DISTANCE OF ONE HUNDRED THIRTY-ONE AND FIFTY-TWO HUNDREDTHS
(131.52) FEET TO THE WEST LINE OF LOT NO. 4; THENCE NORTH 0°00'00" EAST ALONG THE WEST
LINE OF LOT NO. 4 A DISTANCE OF FORTY-ONE AND FORTY-ONE HUNDREDTHS (41.41) FEET,
MORE OR LESS, TO THE POINT OF BEGINNING. SAID TRACT CONTAINING 0.83 ACRES, MORE
OR LESS, SUBJECT TO UTILITY EASEMENTS AND OTHER EASEMENTS, RIGHTS -OF WAY AND
RESTRICTIONS OF RECORD.
PARCEL2:
THE WEST 203 FEET OF LOT FOUR (4) AND THE WEST 203 FEET OF THE SOUTH 230.95 FEET OF.
THE NORTH 385.41 FEET OF LOT FIVE (5), IN THE BROWN AND BROWN ADDITION TO THE CITY
OF SALINA, SALINE COUNTY, KANSAS, LESS THE FOLLOWING DESCRIBED PART THEREOF:
BEGINNING AT THE NORTHWEST CORNER OF LOT FOUR (4) OF SAID BROWN AND BROWN
ADDITION; THENCE NORTH ALONG THE WEST LINE OF LOT FIVE (5) OF SAID BROWN AND
BROWN ADDITION A DISTANCE OF 230.95 FEET TO AN IRON PIN; THENCE NORTH 89°00'00" EAST
A DISTANCE OF 131.45 FEET; THENCE SOUTH A DISTANCE OF 230.80 FEET TO A POINT ON THE
SOUTH LINE OF SAID LOT FIVE (5), SAID POINT BEING NORTH 88°56'00" E AND 131.54 FEET FROM
THE POINT OF BEGINNING; THENCE SOUTH A DISTANCE OF 43.86 FEET; THENCE WEST A
DISTANCE OF 131.52 FEET TO THE WEST LINE OF SAID LOT FOUR (4); THENCE NORTH ALONG.
THE WEST LINE OF SAID LOT FOUR (4) A DISTANCE OF 41.41 FEET, MORE OR LESS, TO THE
POINT OF BEGINNING, SAID TRACT CONTAINING 0.83 ACRES, MORE OR LESS.
PARCEL3:
ALL OF LOT FOUR (4) EXCEPT THE WEST 203 FEET THEREOF, AND THE EAST 137 FEET OF THE
WEST 340 FEET OF THE SOUTH 230.95 FEET OF THE NORTH 385.41 FEET OF LOT FIVE (5) IN THE
BROWN AND BROWN ADDITION TO THE CITY OF SALINA, SALINE COUNTY, KANSAS; AND A
PERMANENT NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS OVER THE EAST 30 FEET
OF THE WEST 203 FEET OF SAID LOT FOUR (4) AND THE EAST 30 FEET OF THE WEST 203 FEET
OF THE SOUTH 230.95 FEET OF THE NORTH 385.41 FEET OF LOT FIVE (5) OF SAID BROWN AND
BROWN ADDITION, WHICH EASEMENT SHALL BE A PERMANENT NON-EXCLUSIVE EASEMENT
SO LONG AS THE SAME IS BEING USED BY THE GRANTEE OR ITS SUCCESSORS AND ASSIGNS.
IF SAID EASEMENT IS HEREAFTER ABANDONED OR VACATED, ALL OF THE RIGHT, TITLE AND
INTEREST OF THE GRANTEE IN AND TO THE REAL ESTATE SUBJECT TO SAID EASEMENT SHALL
CEASE AND TERMINATE AND THE SAME SHALL REVERT TO THE GRANTOR AND ITS
SUCCESSORS AND ASSIGNS. ANY SUCH ABANDONMENT MAY BE ESTABLISHED BY WRITTEN
INSTRUMENT AND EXECUTED AND ACKNOWLEDGED BY THE OWNERS OF SAID EASEMENT
STATING THE FACT OF ABANDONMENT AND NON-USE.
(c) Within twelve (12) months following final completion of the Project, the Company agrees
to add at least five (5) full-time employees at the Project (from a base of 57 employees at the end of 2021).
Four (4) of the additional employees will be paid at least $48,600 per year and one (1) additional employee
will be paid at least $63,300 per year. The Company agrees to maintain the employment levels of existing
and full-time employees at this location as long as the Company is receiving a tax abatement with respect
to the Project. Job creation will be measured by the K -CNS 100 State Quarterly Unemployment Report (or
successor report). The number of employees will be based on the December reporting period of the relevant
year. Average hourly wages will be determined through the payroll system of the Company.
On each March 1 following final completion of the Project and at any other time that the Issuer
may request, for the term of this Agreement, the Company shall provide a written certification to the Issuer
confirming (i) the total number of full-time employees employed at the Project (based upon the Company's
actual knowledge of the full-time employees occupying the Project), (ii) the base average hourly wages
600596.20226\TAX INCENTIVE AGMT
paid during the preceding calendar year for each of the five (5) additional employees, which wages shall
meet or exceed the annual wages set forth above, and (iii) the base average hourly wages paid to all
employees in the preceding calendar year, which shall be at least $33.56.
(d) The Company will own and operate the Project as a facility for the manufacture of articles of
commerce throughout the term of this Agreement. The Company acknowledges that a sublease of any portion
of the Project may render the Project ineligible for the tax exemption under the provisions of K.S.A. 79-221
and agrees that it will not sublease any portion of the Project without the prior consent of the City.
(e) During the entire term of this Agreement, the Company will timely pay all ad valorem
property taxes levied on its real or personal property with Saline County, Kansas.
(f) During the entire term of this Agreement, the Company will comply with all applicable
governmental laws, rules and regulations.
(g) During the entire term of this Agreement, the Company will comply with periodic
compliance audit procedures the City may adopt to monitor compliance with the terms of the Agreement,
including any annual reports required of the Company and any inspection of the Company's premises or
interviews with the Company's employees.
2. Tax Exemption. The City has agreed to grant the Company exemption from 100% of the
property taxes on the land and buildings constituting the Project, provided no exemption may be granted from
the ad valorem taxes levied by a school district pursuant to the provisions of K.S.A. 72-53,113 and
amendments thereto, and provided proper application is made therefor to the State Board of Tax Appeals
(`ROTA") as provided in Section 4 hereof. The exemption shall commence as of January 1 following
completion of the Project and shall be for a term of 10 years. The City agrees that during the term of this
Agreement, and so long as the Company continues to meet and perform all of its obligations under this
Agreement, the City will reasonably cooperate with the Company's efforts to perfect the intended exemption
before BOTA, and to make all necessary annual filings required to maintain such ad valorem tax exemption
in full force and effect during this of this Agreement, in accordance with K.S.A. 79-201 et seq.
3. Effect of Company's Breach; Remedies. The Company acknowledges that in the event of
its noncompliance with any of its obligations or agreements under Section 1 hereof, the City will not have
received the social and economic development benefits expected in connection with its entry into this
Agreement and its furnishing of the economic development incentives provided for hereunder, and the
resulting loss to the City will be difficult to measure. In such event, the Company will be required to pay to
the City, as liquidated damages, or as a payment in lieu of tax, an amount equal to the ad valorem taxes that
would theretofore have been payable but for the tax exemption referred to in Section 2 hereof, and the City
will be entitled to take action to cancel and revoke such exemption for any subsequent period. No delay or
omission by the City to enforce any of its rights as provided for herein will impair such right, nor will any
such delay or omission be construed to be a waiver of such right.
4. Application to State Board of Tax Appeals. After completion of the Project, the Company
will prepare the Economic Development Exemption Application (Article 11, Section 13 Kansas Constitution)
required for approval of the tax exemption by BOTA and submit it to the City for its review. After its review,
the City will submit the application for exemption to the Saline County Appraiser for review and transmittal
to BOTA. The Company will pursue such application in order to obtain an order from BOTA approving and
granting the tax exemption described herein. If it should become necessary to appeal the order of BOTA for.
the Company to secure the tax exemption, the City agrees to cooperate with the Company, at its request, in
pursuit of such appeal. Reasonable attorney's fees or other expenses incurred by the City in securing the tax
exemption from BOTA will be reimbursed by the Company upon demand.
600596.20226\TAX INCENTIVE AGMT
5. Payment of Fees and Expenses. The Company agrees to pay all fees and expenses of the
City, including counsel fees, in connection with the preparation of this Agreement, the resolution of required
findings and the ordinance approving the tax exemption, and the proceedings before BOTA to perfect the tax
exemptions referred to herein.
6. Annual Report to City; Annual Letter from City. The Company agrees to complete and
file with the City Clerk prior to March 1 of each year in which the exemption is granted an annual report in
form as furnished by the City and/or the local county appraiser verifying that conditions regarding the
Company and the exempt property imposed by law and by this Agreement continue to exist. If the Company
continues to meet the conditions imposed on the granting of the tax exemption, the City will send a letter
verifying such compliance to the Saline County Appraiser.
7. Transfer of Ownership or Use. The property tax exemption granted by the City is non-
transferable upon the sale of all or a portion of the Project.
8. Remedies for City Breach. If the City fails to comply with any of its obligations under this
Agreement, the Company's sole remedy is to pursue a remedy in equity to compel specific performance of
this Agreement by the City. Notwithstanding any other provision of this Agreement to the contrary, in no
event will the City ever be liable for any punitive, special, incidental, or consequential damages (including
but not limited to lost profits or similar losses), in connection with this Agreement, or otherwise.
9. Term. This Agreement will commence on the date first written above and will end on
December 31n of the tenth year following the commencement of the tax exemption.
10. Notification. Notifications required pursuant to this Agreement will be made in writing and
mailed to the addresses shown below. Such notification will be deemed complete upon mailing.
City: City of Salina, Kansas
300 W. Ash Street
Salina, Kansas 67401
Attention: City Clerk
Company: McShares, Inc.
1835 E. North Street
Salina, Kansas 67401
Attention: President
[balance of this page intentionally left blank]
600596.20226\TAX INCENTIVE AGMT
Executed as of the date and year first above written.
CITY OF SALINA, KANSAS
0
(SEAL)
Attest:
City Clerk
600596.20226\TAX INCENTIVE AGMT
Mayor
(Signature Page to Economic Development Incentive Agreement)
MCSHARES, INC.
By: _
Name:
Title:
600596.20226\TAX INCENTNE AGMT
(Signature Page to Economic Development Incentive Agreement)
AGENDA SECTION
NO:
ITEM
NO:
Page I
ITEM:
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
2/7/2022 4:00 P.M.
ORIGINATING ORGANIZATION:
City Manager's Office
BY: Mike Schrage, City Manager
FISCAL APPROVAL:
BY:
FINAL APPROVAL
BY: kl ._
Resolution No. 22-8022 making certain findings of fact as required by K.S.A. 79-251 with respect to a
property tax exemption to be granted to McShares, Inc.
Ordinance No. 22-11099 exempting certain property in the City of Salina, Kansas, from ad valorem
taxation for economic development purposes pursuant to Article 11, Section 13 of the Kansas
Constitution; providing the terms and conditions for ad valorem tax exemption; and describing the
property so exempted.
BACKGROUND:
Please, find attached a copy of the January 24, 2022 staff report on this matter. It provides
considerable background regarding the McShares project as well as the recommendation of the .
Salina Community Economic Development Organization (SCEDO) Board.
The conclusion of the City Commission's consideration of this item on January 24th was passage of a
motion "that staff be instructed to move forward with this matter and set a date of February 7, 2022, for
the public hearing,,.
Pursuant to the direction provided by the City Commission, the necessary notices have been published
in the Salina Journal and mailed to the applicable taxing entities.
One of the attached action items is Resolution 22-8022 formally making the necessary finding that "the
facility for which the exemption is to be granted will be used exclusively in the Company's business of
manufacturing articles of commerce as specified in Article 11, Section 13 of the Kansas Constitution".
That finding is based upon the assurances incorporated within the attached tax incentive agreement in
combination with the agreement provisions revoking the exemption in the event of non-compliance.
The second attached action item is an Ordinance 22-11099 "exempting certain property in the City of
Salina, Kansas, from ad valorem taxation for economic development purposes pursuant to Article 11,
Section 13 of the Kansas Constitution; providing the terms and conditions for ad valorem tax exemption;
and describing the property so exempted". The ordinance authorizes execution of the attached tax
incentive agreement which formalizes required employment and wage levels as well as minimum
investment for the project and authorizes a 10 year 100% tax abatement as well as includes provisions
regarding the consequences of default.
FISCAL NOTE:
As previously reported by Mitch Robinson, SCEDO Executive Director, the Center for Economic
Development and Business Research (CEDBR) has completed an economic impact analysis for an
industrial revenue bond. Attached are the Wichita State University Center for Economir. nP%/AInn M,
AGENDA SECTION
NO:
ITEM
NO:
Page 2
Business Research Impact
impact of the project. At this
based on current estimates.
following incentive summary
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
2/7/2022 4:00 P.M.
ORIGINATING ORGANIZATION: FISCAL APPROVAL:
53
City Manager's Office
BY: Mike Schrage, City Manager I BY:
tudies for a $6 million project and a $ 7 million project which show the
Point the company is expecting to spend approximately $6.3 million
Based on an investment of $6 million the CEDBR has provided the
City of Salina Tax Abatement
$445,800
Salina County Tax Abatement
$616,455
State of Kansas Tax Abatement
$322,500
District 305 Tax Abatement
$240,165
City of Salina Public Benefits — Costs — Benefit Cost Ratio
Public Benefit 10 -year period $477,480
Public Costs 10 -year period $412,418
Benefit -Cost Ratio 1.16
Saline County Public Benefits -Costs -Benefit Cost Ratio
Public Benefit 10 -year period $539,761
Public Costs 10 -year period $521,260
Benefit -Cost Ratio 1.04
State of Kansas Public Benefits -Costs -Benefit Cost Ratio
Public Benefit 10 -year period $976,924
Public Cost 10 -year period $444,145
Benefit Cost Ratio 2.20
School District 305 Public Benefits -Costs -Benefit Cost Ratio
Public Benefit 10 -year period $321,861
Public Cost 10 -year period $221,999
Benefit Cost Ratio 1.45
COMMISSION ACTION OR RECOMMENDED ACTION:
Conduct Public Hearing
Following the staff report, it will be necessary for the City Commission to open, conduct and close a
public hearing on proposed property tax exemption for economic develop purposes for the McShares
project.
Following conclusion of the public hearing, staff has identified the following has identified the following
options for the City Commission's consideration:
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
2(7/2022 4:00 P.M.
AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL:
NO:
BY:
ITEM City Manager's Office FINAL APPROVAL:
NO:
Page 3 BY: Mike Schrage, City Manager BY:
Resolution 22-8022
1.) Approve Resolution No. 22-8022 making certain findings of fact as required by K.S.A. 79-251
with respect to a property tax exemption to be granted to McShares, Inc.
2.) Approve Resolution No. 22-8022 with amendments as the City Commission deems appropriate.
3.) Postpone consideration of Resolution No. 22-8022 to a specified date and time and provide staff
direction regarding additional information or amendments the City Commission would like to
request for their further consideration.
4.) Vote to deny Resolution No. 22-8022 resulting in declining to make the necessary findings with
respect to the requested and recommended property tax exemption.
As previously noted, the tax incentive agreement includes a provision that McShares "will own and
operate the Project as a facility for the manufacture of articles of commerce throughout the term of this
Agreement" and that McShares "acknowledges that a sublease of any portion of the Project may render
the Project ineligible for the tax exemption under the provisions of K.S.A. 79-221 and agrees that it will
not sublease any portion of the Project without the prior consent of the City". The agreement also
makes provision for repayment and revocation of the property tax exemption in the event of non-
compliance or default. Those specific agreement provisions serve as the basis of making the necessary
findings of fact provided for in Resolution No. 22-8022.
Ordinance No. 22-11099
1.) Approve Ordinance No. 22-11099 exempting certain property in the City of Salina, Kansas, from
ad valorem taxation for economic development purposes pursuant to Article 11, Section 13 of
the Kansas Constitution; providing the terms and conditions for ad valorem tax exemption; and
describing the property so exempted.
2.) Approve Ordinance No. 22-11099 with amendments as the City Commission deems
appropriate.
3.) Postpone consideration of Ordinance No. 22-11099 to a specified date and time and provide
staff direction regarding additional information or amendments the City Commission would like
to request for their further consideration.
4.) Approve Ordinance No. 22-11099 on first reading and provide direction regarding additional
information or amendments the City Commission would like to request for their further
consideration at the time of second reading.
5.) Vote to deny Ordinance No. 22-11099 resulting in denial of the requested property tax
exemption.
RECOMMENDATION OF SCEDO BOARD OF DIRECTORS
As previously reported by Mitch Robinson, Executive Director of the Salina Community Economic
Development Organization (SCEDO), the SCEDO Board of Directors believe this project should be
approved by the City of Salina City Commission due to the investments made by the company, the
number of additional jobs to be created, the wage level that exceeds the Premier Classification of ti
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
2/7/2022 4:00 P.M.
AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL:
NO:
BY:
ITEM City Manager's Office FINAL APPROVAL:
NO:
Page 4 BY: Mike Schrage, City Manager BY
jobs and the development within the targeted northern section of the City of Salina and confirmation of
the overall financial benefit to the community as demonstrated by the cost -benefit analysis. The future
growth is based on potential growth within the drink sector of the food industry and other areas related
to the company's expertise in the packaging industry. Salina is fortunate this opportunity is staying in
Salina with this family-owned local company.
ATTACHMENTS:
1. Resolution No. 22-8022
2. Ordinance No. 22-11099
3. Tax Incentive Agreement
4. Two (2) Site Maps
5. City of Salina IRB Application
6. Project McShares/REPCO Scorecard
7. Two (2) Wichita State Economic Impact Analysis Reports
8. SRA Map and Guidelines
9. Resolution 91-4265
10. Resolution 05-6230
11. SCEDO Board Meeting Minutes — 12/6/2021
12. Incentive Calculation Spreadsheet
RESOLUTION NO. 22-8022
A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF SALINA,
KANSAS MAKING CERTAIN FINDINGS OF FACT AS REQUIRED BY K.S.A.
79-251 WITH RESPECT TO A PROPERTY TAX EXEMPTION TO BE GRANTED
TO MCSHARES, INC.
WHEREAS, McShares, Inc. (the "Company") has applied to the City of Salina, Kansas (the
"City") for a property tax exemption pursuant to the provisions of Article 11, Section 13 of the Kansas
Constitution for additions to a facility located at 1835 E. North Street in the City to be used for one of the
exempt purposes set forth in Article 11, Section 13 of the Kansas Constitution: and
WHEREAS, the governing body of the City has investigated the facts regarding the construction
of an addition to the facility and the use to which the Company will put such property;
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY
OF SALINA, KANSAS:
Section 1. The governing body of the City has determined and makes a factual finding that
the facility for which the exemption is to be granted will be used exclusively in the Company's business of
manufacturing articles of commerce as specified in Article 11, Section 13 of the Kansas Constitution.
Section 2. This Resolution shall take effect and be in full force from and after its adoption by
the Governing Body.
ADOPTED on February 7, 2022.
Trent W. Davis, M.D. Mayor
[SEAL]
Attest:
JoVonna A. Rutherford, City Clerk
ORDINANCE NO. 22-11099
AN ORDINANCE EXEMPTING CERTAIN PROPERTY IN THE CITY OF
SALINA, KANSAS, FROM AD VALOREM TAXATION FOR ECONOMIC
DEVELOPMENT PURPOSES PURSUANT TO ARTICLE 11, SECTION 13 OF THE
KANSAS CONSTITUTION; PROVIDING THE TERMS AND CONDITIONS FOR
AD VALOREM TAX EXEMPTION; AND DESCRIBING THE PROPERTY SO
EXEMPTED.
WHEREAS, Article 11, Section 13 of the Kansas Constitution permits the governing body of any
city by ordinance to exempt from ad valorem taxation all or any portion of the appraised valuation of all
buildings, together with the land upon which such buildings were located, and all tangible personal property
associated therewith used exclusively by a business for the purpose of manufacturing articles of commerce
for not more than ten (10) calendar years after the calendar year in which the business commences its
operations or in which expansion of an existing business is completed; and
WHEREAS, the governing body of the City of Salina, Kansas (the "City"), after conducting a public
hearing pursuant to published notice as provided by law, has determined that the building additions
constructed by McShares, Inc. (the "Company") and used exclusively in the Company's business of
manufacturing articles of commerce should be granted tax exemption for economic development purposes;
and
WHEREAS, the governing body of the City has by previously adopted resolution made the findings
of fact required by K.S.A. 79-251;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS:
Section 1. Grant of Exemption. In accordance with Article 11, Section 13 of the Kansas
Constitution, and pursuant to K.S.A. 79-251, Resolution No. 22-8022 of the City, the governing body of the
City hereby determines that the following described property should be granted a 100% ad valorem tax
exemption, provided no exemption may be granted from the ad valorem tax levied by a school district pursuant
to the provisions of K.S.A. 72-53,113 and amendments thereto, and subject to proper application to and
approval of the State Board of Tax Appeals, and further subject to the conditions set forth herein:
The building improvements constructed beginning in 2022 on the following property (the "Project")
ALL OF LOT FOUR (4) EXCEPT THE WEST 203 FEET THEREOF, AND THE EAST
137 FEET OF THE WEST 340 FEET OF THE SOUTH 230.95 FEET OF THE NORTH
385.41 FEET OF LOT FIVE (5), IN THE BROWN AND BROWN ADDITION TO THE
CITY OF SALINA, SALINE COUNTY, KANSAS.
The exemption shall commence as of January I following completion of the Project and shall be for a term of
10 years. Continuation of the ad valorem tax exemption shall be subject to compliance by the Company with
the terms and conditions of the Tax Incentive Agreement herein described, and the exemption may be
withdrawn by the governing body upon a finding that the Company is no longer entitled to such exemption
under the terns of the Tax Incentive Agreement.
Section 2. Authorization of Tax Incentive Agreement. The form of the Tax Incentive
Agreement presented to the governing body of the City on this date is hereby approved, with such minor
corrections or modifications as may be approved by the Mayor, such approval to be conclusively evidenced
by execution of the agreement by the Mayor and the City Clerk, and the Mayor and City Clerk are hereby
authorized to execute the Tax Incentive Agreement on behalf of the City.
Section 3. Transferability of Exemption. If there is a change in ownership of the exempt
property, the ad valorem tax exemption granted by this Ordinance is not transferable without the express
approval of the City.
Section 4. Effective Date. This Ordinance shall be in full force and effect from and after its
passage, execution by the Mayor, and publication in the official city newspaper as provided by law.
[balance of this page intentionally left blank]
PASSED AND SIGNED February 14, 2022.
(SEAL)
Attest:
JoVonna A. Rutherford, City Clerk
Trent W. Davis, M.D., Mayor
(Signature Page to Ordinance)
CERTIFICATE OF COPY
I hereby certify that the attached copy is a true and correct copy of Ordinance No. of the
governing body of the City of Salina, Kansas, duly passed by the governing body, signed by the Mayor, and
published in the official City newspaper on the respective date stated therein, and that the signed original of
such Ordinance is on file in my office.
(SEAL]
(Clerk's Certification of Ordinance)
City Clerk
TAX INCENTIVE AGREEMENT
This Tax Incentive Agreement (the "Agreement') is entered into as of February _, 2022 between
the City of Salina, Kansas, a municipal corporation (the "City") and McShares, Inc. (the "Company").
Recitals
A. The City is empowered by Article 11, Section 13 ofthe Kansas Constitution to grant property
tax exemptions to businesses which meet the constitutional criteria.
B. After conducting and reviewing an analysis of the respective costs and benefits of the
proposed business expansion, including the effect on state revenues, and after conducting a public hearing
pursuant to published notice as required by law, the City has made determinations (1) that it is willing to grant
certain property tax exemptions to the Company as an inducement to the expansion of its business facilities
in the City, in the form of property tax reductions and/or exemptions, and (2) that the property which will be
the subject of a property tax exemption will be used by the Company exclusively for one of the exempt
purposes described in Article 11, Section 13 of the Kansas Constitution.
C. The City is willing to cooperate with the Company to secure for the Company the tax
exemptions set forth in this Agreement.
Agreement
In consideration of the mutual conditions, covenants and promises contained herein, the parties hereto
agree as follows.
I. Representations an([ Covenants of the Company. The Company makes the following
covenants and representations as the basis for the undertakings on its part herein contained:
(a) The Company is a corporation, duly organized and existing under the laws of the State of
Kansas, and is duly authorized and qualified to do business in the State of Kansas, with lawful power and
authority to enter into this Agreement, acting by and through its duly authorized officers.
(b) The Company currently owns and operates a manufacturing facility on property located at
1835 E. North Street in the City. The Company will build and equip an approximately 36,000 square foot
expansion of the manufacturing facility and a 6,000 to 10,000 square foot addition for office and lab space in
front of the existing facility at a cost of at least $6,000,000 on the following described real property (the
"Project"):
ALL OF LOT FOUR (4) EXCEPT THE WEST 203 FEET THEREOF, AND THE EAST
137 FEET OF THE WEST 340 FEET OF THE SOUTH 230.95 FEET OF THE NORTH
385.41 FEET OF LOT FIVE (5), IN THE BROWN AND BROWN ADDITION TO THE
CITY OF SALINA, SALINE COUNTY, KANSAS.
(c) Within twelve (12) months following final completion of the Project, the Company agrees
to add at least five (5) full -titre employees at the Project (from a base of 57 employees at the end of 2021).
Four (4) of the additional employees will be paid at least $48,600 per year and one (1) additional employee
will be paid at least $63,300 per year. The Company agrees to maintain the employment levels of existing
and full-time employees at this location as long as the Company is receiving a tax abatement with respect
to the Project. Job creation will be measured by the K -CNS 100 State Quarterly Unemployment Report (or
successor report). The number of employees will be based on the December reporting period of the relevant
year. Average hourly wages will be determined through the payroll system of the Company.
On each March 1 following final completion of the Project and at any other time that the Issuer
may request, for the term of this Agreement, the Company shall provide a written certification to the Issuer
confirming (i) the total number of full-time employees employed at the Project (based upon the Company's
actual knowledge of the full-time employees occupying the Project), (ii) the base average hourly wages
paid during the preceding calendar year for each of the five (5) additional employees, which wages shall
meet or exceed the annual wages set forth above, and (iii) the base average hourly wages paid to all
employees in the preceding calendar year, which shall be at least $33.56.
(d) The Company will own and operate the Project as a facility for the manufacture of articles of
commerce throughout the term of this Agreement. The Company acknowledges that a sublease of any portion
of the Project may render the Project ineligible for the tax exemption under the provisions of K.S.A. 79-221
and agrees that it will not sublease any portion of the Project without the prior consent of the City.
(e) During the entire term of this Agreement, the Company will timely pay all ad valorem
property taxes levied on its real or personal property with Saline County, Kansas.
(f) During the entire term of this Agreement, the Company will comply with all applicable
governmental laws, rules and regulations.
(g) During the entire term of this Agreement, the Company will comply with periodic
compliance audit procedures the City may adopt to monitor compliance with the terms of the Agreement,
including any annual reports required of the Company and any inspection of the Company's premises or
interviews with the Company's employees.
2. Tax Exemption. The City has agreed to grant tine Company exemption from 100% of the
property taxes on the land and buildings constituting the Project, provided no exemption may be granted from
the ad valorem taxes levied by a school district pursuant to the provisions of K.S.A. 72-53,113 and
amendments thereto, and provided proper application is made therefor to the State Board of Tax Appeals
(`ROTA") as provided in Section 4 hereof. The exemption shall continence as of January I following
completion of the Project and shall be for a term of 10 years. The City agrees that during the term of this
Agreement, and so long as the Company continues to meet and perform all of its obligations under this
Agreement, the City will reasonably cooperate with the Company's efforts to perfect the intended exemption
before BOTH, and to make all necessary annual filings required to maintain such ad valorem tax exemption
in full force and effect during this of this Agreement, in accordance with K.S.A. 79-201 el seq.
3. Effect of Company's Breach; Remedies. The Company acknowledges that in the event of
its noncompliance with any of its obligations or agreements under Section 1 hereof, the City will not have
received the social and economic development benefits expected in connection with its entry into this
Agreement and its furnishing of the economic development incentives provided for hereunder, and the
resulting loss to the City will be difficult to measure. In such event, the Company will be required to pay to
the City, as liquidated damages, or as a payment in lieu of tax, an amount equal to the ad valorem taxes that
would theretofore have been payable but for the tax exemption referred to in Section 2 hereof, and the City
will be entitled to take action to cancel and revoke such exemption for any subsequent period. No delay or
omission by the City to enforce any of its rights as provided for herein will impair such right, nor will any
such delay or omission be construed to be a waiver of such right.
4. Application to State Board of Tax Appeals. After completion of the Project, tine Company
will prepare the Economic Development Exemption Application (Article 11, Section 13 Kansas Constitution)
required for approval of the tax exemption by BOTA and submit it to the City for its review. After its review,
the City will submit the application far exemption to the Saline County Appraiser for review and transmittal
to BOTA. The Company will pursue such application in order to obtain an order tion BOTA approving and
granting the tax exemption described herein. If it should become necessary to appeal the order of BOTA for
the Company to secure the tax exemption, the City agrees to cooperate with the Company, at its request, in
pursuit of such appeal. Reasonable attorney's fees or other expenses incurred by the City in securing the tax
exemption from BOTA will be reimbursed by the Company upon demand.
5. Payment of Fees and Expenses. The Company agrees to pay all fees and expenses of the
City, including counsel fees, in connection with the preparation of this Agreement, the resolution of required
findings and the ordinance approving the tax exemption, and the proceedings before BOTA to perfect the tax
exemptions referred to herein.
6. Annual Report to City; Annual Letter from City. The Company agrees to complete and
file with the City Clerk prior to March I of each year in which the exemption is granted an annual report in
form as furnished by the City and/or the local county appraiser verifying that conditions regarding the
Company and the exempt property imposed by law and by this Agreement continue to exist. lithe Company
continues to meet the conditions imposed on the granting of the tax exemption, the City will send a letter
verifying such compliance to the Saline County Appraiser.
7. Transfer of Ownership or Use. The property tax exemption granted by the City is non-
transferable upon the sale of all or a potion of the Project.
8. Remedies for City Breach. If the City fails to comply with any of its obligations under this
Agreement, the Company's sole remedy is to pursue a remedy in equity to compel specific performance of
this Agreement by the City. Notwithstanding any other provision of this Agreement to the contrary, in no
event will the City ever be liable for any punitive, special, incidental, or consequential damages (including
but not limited to lost profits or similar losses), in connection with this Agreement, or otherwise.
9. Term. This Agreement will commence on the date first written above and will end on
December 3V of the tenth year following the commencement of the tax exemption.
10. Notification. Notifications required pursuant to this Agreement will be made in writing and
mailed to the addresses shown below. Such notification will be deemed complete upon mailing.
City: City of Salina, Kansas
300 W. Ash Street
Salina, Kansas 67401
Attention: City Clerk
Company: McShares, [tic.
1835 E. North Street
Salina, Kansas 67401
Attention: President
[balance of this page intentionally left hlank]
(SRAL)
Attest:
Executed as of the date and year first above written.
CITY OF SALINA, KANSAS
By:
City Clerk
Mayor
(Signature Page to Economic Development Incentive Agreement)
MCSHARES, INC.
By: _
Name:
Title:
(Signature Page to Economic Development Incentive Agreement)
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/24/2022 4:00 P.M.
AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL:
NO: BY:
Salina Community Economic
ITEM Development Organization FINAL APPROVAL:
NO:
Page 1 BY: Mitch Robinson, Exec Dir. BY:
ITEM: Constitutional Tax Abatement for Expansion of REPCO
BACKGROUND:
On Tuesday, November 23'' SCEDO Executive Director Mitch Robinson and Board Chairman Lloyd
Davidson were invited by local realtor Jeff Maes to meet with REPCO President / CEO Monte White to
discuss future plans for an expansion of their local headquarters and its warehousing/manufacturing
facility located at 1835 E. North Street. During the visit, the company discussed their plans to build a
36,000 sq ft warehouse and manufacturing facility plus 6000 sq ft to 10,000 sq ft office and lab
complex. The estimated cost is $6 million to $7 million dollars.
REPCO started operations in 1946 and is celebrating its 75th anniversary this year. The company is a
local business that is family owned and lead by President/CEO Monte White, grandson of the
company founder. The company does business in 46 countries around the world and has products
that most Americans have consumed during their lifetime. The company works in the milling industry,
nutritional industry, and the bakery industry. The company makes ingredients, additives and premix
blends plus manufactures state-of-the-art equipment and has on-site tech services. Their products
enrich wheat, rice, corn, and many other products in addition to extending their shelf life. The
company has over 70% market share within these industrial sectors. Additional REPCO facilities are
located in in Manhattan, KS; Wamego, KS; Chicago, IL, east coast United States; Philippines; and
Africa.
In 2007 the company suffered a major fire damaging the entire production facility in Salina. The .
company decided to maintain the facility in Salina which resulted in local companies being used to
provide critical equipment within the rebuilt facility from Kasa, Vortex, and Coperion K-Tron.
This expansion will assist with the retention of the current 55 to 60 employees located within the
Salina headquarters facility as well as allow for future growth long term.
FUTURE GROWTH
The company has approximately 70 total employees with 55 to 60 located within the Salina facility.
Total payroll for the Salina operation is approximately $3.2 million on an annual basis. REPCO prides
itself on using many supplies and services from local companies.
The company's current manufacturing, warehousing and office space are fully occupied, and no
additional space is available for future growth. The planned additions on the property will provide
space for future manufacturing lines and additional warehouse space which is currently critical due to
supply chain issues impacting raw material supplies. The office building would house both office
space and additional lab space all currently needed by the company. The new office space would
provide a state-of-the-art facility allowing for customers and suppliers to visit the company
headquarters.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/24/2022 4:00 P.M.
AGENDA SECTION
ORIGINATING ORGANIZATION:
FISCAL APPROVAL:
NO:
BY:
Salina Community Economic
Development Organization
ITEM
FINAL APPROVAL:
NO:
Page 2
BY: Mitch Robinson, Exec Dir.
BY:
The growth of REPCO is based on future development of the drink industry, including the various
premix products, and other products. The company has talked with numerous potential customers
concerning possible future projects. Currently, REPCO has no available manufacturing or
warehousing space to house new production lines. As this business grows the company will have to
add additional shifts to their workforce for a second and/or third shift production. The new expansion
will provide the needed space for this growth.
LOCAL INCENTIVES
At 12:00 noon on Monday, December 6th the SCEDO Board of Directors met in a special meeting to
review an Industrial Revenue Bond application from REPCO. Company President/CEO Monte White,
CFO Jason Creed, and local realtor Jeff Maes spoke with the SCEDO Board. Mr. White provided an
overview of the company and the future direction the company is heading in terms of future business.
The building designs are in early stages but are estimated to be between $6 million to $7 million in
improvements.
City Manager Mike Schrage provided additional information to the SCEDO Board of Directors
concerning Resolution Number 05-6230 which under the Kansas Enterprise Act provided for the
ability of tax abatement to be provided to expanding companies that meet certain conditions. Based
on the investment number Schrage indicated that the abatement amount would be calculated for one
additional new job as follows:
$300K + 1 Job
$300K - $1 M (.3%/$15K)
$1 M - $2 M (.2%/$15K)
$2 - $ 7 M (.1%/$15K)
25%
46.67 x 0.3 14%
66.67 x 0.2 13.33%
333.33 x 0.1 33.33%
85.67%
Based on the investment, one job and application of the provision of Resolution N0. 91-4265 the
company would be eligible for up to 85% abatement for the project with a 10 -year window of
abatement. (See attached Resolution Number 91-4265)
Resolution 91-4265 also includes a provision for 50% location premium in years 1-5 for projects
located in a designated Special Redevelopment. The Repco site location in north Salina is within an
already designated Special Redevelopment Area. A revised incentive calculation has been attached
accounting for the additional jobs being that have been proposed. The revised calculation results in
100% tax abatement in years 1-5 and 50%-70.25% abatement in years 6-10 depending on
interpretation and application of the incentive premium provisions.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/24/2022 4:00 P.M.
AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL:
NO:
Salina Community Economic BY:
ITEM Development Organization FINAL APPROVAL:
NO:
Page 3 BY: Mitch Robinson, Exec Dir. BY:
Resolution 91-4265 also includes the following provision that affords the City Commission
considerable authority and discretion in the administration of tax exemptions.
Section 2. Authority and discretion.
The Board of City Commissioners is under no obligation to approve any requested exemption and
reserves the right to deviate from the policies and criteria contained herein if circumstances exist to
warrant such deviation. Such circumstances may include, but not be limited to: (a) economic
development projects financed by means that substitute for industrial development bonds for which
resolutions of intent containing tax exemption have previously been issued thus resulting in a
reduction in the amount of the resolution of intent; or (b) economic development projects which, due to
their unusual nature or magnitude, offer extraordinary benefits to the community.
The SCEDO held discussion with the company concerning the potential incentives for the project.
After much discussion two recommendations were provided:
A) A 100% abatement for 10 years with the company providing 5 new jobs by year 5 with claw -
back provisions if additional employment is not added.
B) A 100% abatement for years 1-5 and 50% abatement for years 6-10 with no employee
requirement and no claw -back provision.
In addition, the company would receive 100% abatement on the sales tax on the construction
materials for the expansion project, which is estimated from $6 million to $7 million.
These recommendations were approved by the SCEDO Board of Directors in 7-0 votes. These
recommendations were forwarded to the company for their review and decision. Due to demand on
the construction schedule the Board of Directors agreed to a quick turnaround to assist this project.
COMPANY DECISION / WAGE LEVELS / JOB ESTIMATES
On Thursday, December 9th the company notified Executive Director Robinson that REPCO would
agree to Option A to provide 5 new jobs by the end of year 5 and receive the 100% abatement for the
complete 10 years. REPCO would hire an additional 4 Production positions at $48,600 in salary. One
Laboratory position will also be added with average wages of $63,300. These salaries include annual
bonuses, but do not include benefits like 401(k) match, the company paid portion of health insurance
or any other supplemental benefits. This is a conservative headcount increase over the defined
period as stated by the company CFO. These four new production positions are above the Premier
Salary range of $48,600 ($48600 / 2080 hours = $23.37 per hour). The laboratory position salary is
$63,300 ($63,300 / 2080 = $30.43 per hour). These are well paying positions above the county
average wage for the Salina area. The company has since agreed to reach the agreed upon new jobs
count within 12 months of completion of the building expansion.
CITY OF SALINA
CHANGE IN INCENTIVE PROGRAM RECOMMENDATIONS
There has been considerable discussion between City staff, bond counsel and environmental legal
counsel regarding the implications of the City having a leasehold interest in the Repco property in an
industrial revenue bond format compared to a constitutional tax abatement which would not involve a
City leasehold interest. Constitutional tax abatements do not extend sales tax exemptions to
construction materials. However, it has been confirmed that Repco is able to obtain sales tax
exemptions through the use of the State of Kansas' High Performance Incentive Program (HPIP). In
light of environmental mitigation measures in place on the property that have been approved by
KDHE, the proposed format has been modified to City issuance of constitutional tax abatements and
utilization of the State HPIP program for sales tax abatements.
FISCAL NOTE:
The Center for Economic Development and Business Research (CEDBR) has completed an
economic impact analysis for an industrial revenue bo
Center for Economic Development Business Research
7 million project which show the impact of the project.
approximately $6.3 million based on current estimates.
CEDBR has provided the following incentive summary:
City of Salina Tax Abatement $445,800
Salina County Tax Abatement $616,455
State of Kansas Tax Abatement $322,500
District 305 Tax Abatement $240,165
bon
Attached are the Wichita State University
Impact Studies for a $6 million project and a $
At this point the company is expecting to spend
Based on an investment of $6 million the
City of Salina Public Benefits — Costs — Benefit Cost Ratio
Public Benefit 10 -year period $477,480
Public Costs 10 -year period $412,418
Benefit -Cost Ratio 1.16
Saline County Public Benefits -Costs -Benefit Cost Ratio
Public Benefit 10 -year period $539,761
Public Costs 10 -year period $521,260
Benefit -Cost Ratio 1.04
State of Kansas Public Benefits -Costs -Benefit Cost Ratio
Public Benefit 10 -year period $976,924
Public Cost 10 -year period $444,145
Benefit Cost Ratio 2.20
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/24/2022 4:00 P.M.
AGENDA SECTION
ORIGINATING ORGANIZATION:
FISCAL APPROVAL:
NO:
Salina Community Economic
BY:
FINAL APPROVAL:
ITEM Development Organization
NO:
Page 4
BY: Mitch Robinson, Exec Dir.
BY:
CHANGE IN INCENTIVE PROGRAM RECOMMENDATIONS
There has been considerable discussion between City staff, bond counsel and environmental legal
counsel regarding the implications of the City having a leasehold interest in the Repco property in an
industrial revenue bond format compared to a constitutional tax abatement which would not involve a
City leasehold interest. Constitutional tax abatements do not extend sales tax exemptions to
construction materials. However, it has been confirmed that Repco is able to obtain sales tax
exemptions through the use of the State of Kansas' High Performance Incentive Program (HPIP). In
light of environmental mitigation measures in place on the property that have been approved by
KDHE, the proposed format has been modified to City issuance of constitutional tax abatements and
utilization of the State HPIP program for sales tax abatements.
FISCAL NOTE:
The Center for Economic Development and Business Research (CEDBR) has completed an
economic impact analysis for an industrial revenue bo
Center for Economic Development Business Research
7 million project which show the impact of the project.
approximately $6.3 million based on current estimates.
CEDBR has provided the following incentive summary:
City of Salina Tax Abatement $445,800
Salina County Tax Abatement $616,455
State of Kansas Tax Abatement $322,500
District 305 Tax Abatement $240,165
bon
Attached are the Wichita State University
Impact Studies for a $6 million project and a $
At this point the company is expecting to spend
Based on an investment of $6 million the
City of Salina Public Benefits — Costs — Benefit Cost Ratio
Public Benefit 10 -year period $477,480
Public Costs 10 -year period $412,418
Benefit -Cost Ratio 1.16
Saline County Public Benefits -Costs -Benefit Cost Ratio
Public Benefit 10 -year period $539,761
Public Costs 10 -year period $521,260
Benefit -Cost Ratio 1.04
State of Kansas Public Benefits -Costs -Benefit Cost Ratio
Public Benefit 10 -year period $976,924
Public Cost 10 -year period $444,145
Benefit Cost Ratio 2.20
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
1/24/2022 4:00 P.M.
AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL:
NO:
ITEM
NO:
Page 5
School District 305 Public Benefits-(
Public Benefit 10 -year period
Public Cost 10 -year period
Benefit Cost Ratio
Salina Community Economic BY.
Development Organization FINAL
BY: Mitch Robinson, Exec Dir. I BY:
Benefit Cost Ratio
$321,861
$221,999
1.45
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for the City Commission's consideration:
NEXT STEPS BY CITY OF SALINA
1. Set a date for the public hearing February 7, 2022
2, Bond Counsel prepares and publishes notice of public hearing.
3. Notice of public hearing sent to the Salina Journal for publication 10 days in advance.
4. City Clerk mails notices to USD 305 and Saline County.
5. On February 7, 2022, the City Commission reviews cost -benefit analysis, holds public hearing and
then considers a resolution Making certain findings and holding first reading of an Ordinance
granting the EDX property tax exemption.
6. On February 14, 2022, the City Commission approves the Ordinance on second reading.
City Commission approves staff to proceed with notice for public hearing and resolution to take future
public action.
RECOMMENDATION OF SCEDO BOARD OF DIRECTORS
The SCEDO Board of Directors believe this project should be approved by the City of Salina City
Commission due to the investments made by the company, the number of additional jobs to be
created, the wage level that exceeds the Premier Classification of the jobs and the development within
the targeted northern section of the City of Salina and confirmation of the overall financial benefit to
the community as demonstrated by the cost -benefit analysis. The future growth is based on potential
growth within the drink sector of the food industry and other areas related to the company's expertise
in the packaging industry. Salina is fortunate this opportunity is staying in Salina with this family-
Dwned local company.
ATTACHMENTS:
1. Two (2) Site Maps
2. City of Salina IRB Application
3. Project McShares/REPCO Scorecard
4. Two (2) Wichita State Economic Impact Analysis Reports
5. SRA Map and Guidelines
6. Resolution 91-4265
7. Resolution 05-6230
8. SCEDO Board Meeting Minutes — 12/6/2021
9. Incentive Calculation Soreadsheet
jalO.:"�'-iCCEPTU
REPCOMcSHARES ADDITION��. Al
Existing Building
Expansion - y
»»> Current Layout i,
.4cEatUn,.?' %. OF Tina: I\ �`t
-- -
REPCO•McSHARES ADDITION Q1.2
I9f5f NOlRH 5T. 5.WN/. RSe.I% •'-u. na�.F-r �— ^"^6�mYa^Av: �r�
Existing Building
Expansion
_ PEMB Structure
»»> Current Layout „ ,�i
I
L,
Salina
APPLICATION FOR INDUSTRIAL REVENUE BONDS
GENERAL INFORMATION
1. McShares, Inc.
Nanc of Applicant firm
2 1835 E North Street 785-833-2629
Firm Address plmnn Number Fnx Numbm'
U®e orRoquesi
3, Monte White CEO/President 785-833-2629
C'mnact pc..Nddc Phonc NmnberPa
x � rbcr
4. Names and Addresses of other contacts:
Name
Nano AdJress 1'honu'lie y— —"
Name
Phonc Tns
5. Names and address of' the principal owners, officers and directors of the firm requesting the
Industrial Revenue Bonds:
7.
Name
Monte White
19 addi8onal Family Members
Title
StockholderICEO/President
Stockholders
Address
1835 E North Street, Salina KS
Applicants Anomey Phone Number
rax Nnnm,r
Undert ricer (or Pnn:hasep
I
Piwnc Number Pox N..mbcr
II. NATURE OF PROJECT FINANCING (if refund ing/refinancing, skip to section Ill)
Briefly describe the proposed financing:
Funding will be sought through a combination of a commercial loan and private funding.
2. Is the proposed project a new facility, expansion, or replacement of another existing facility?
The project is a new addition of manufacturing, storage, office and lab facilities.
Please state the reason for the establishment of the new facility, expansion or replacement of the
existing facility:
A need exists for additional warehouse space for both raw and finished goods
A need exists for new office space
A need exists for additional laboratory and R&D space
3. Is the applicant's understanding that the interest on the proposed issue is tax-exempt or taxable?
(Consult Bond Counsel).
4. Proposed number of years to amortize the bond issue:
S. Describe proposed call features:
6. Describe the proposed security for the bonds (i.e., pledge of collateral, corporate/personal
guarantees, debt service reserve fund, credit enhancements, etc.).
Proposed date of issue:
8. Will the bonds be rates?
9. Interest rate to be fixed or variable rate
By whom?
10. Please attach proposed debt service schedule, if available.
11. Anticipated source and use of project financing.
Sources:
Bond proceeds
Cash
Other
Interest on Bond Proceeds during construction
TOTAL =
Uses:
Land cost
Construction Costs
Machinery/Equipment
Cost of Issuance (specify)
Capitalized Interest
Debt Service Reserve Fund
Underwriting Fee
Other
TOTAL =
10. Please indicate proposed Trustee.
$
If variable. please describe:
REFUNDING/REFINANCING (fill out this section if transaction is refunding of an existing bond
issue)
3
I. Which form of refunding is proposed?
a. Advance Refunding
b. Current Refunding
2. Current Principal Outstanding
3. Purpose of Refunding:
Interest savings (attach proposed savings schedule)
Extend or shorten repayment (attach debt service schedule)
Change indenture covenants (specify)
Other (specify)
4. Was the City of Salina the original Issuer? Yes No
Original date of issue:
5. If an advance refunding is proposed:
Who is the proposed Escrow Trustee?
Who is proposed to provide escrow verification?
What is the length of escrow account?
(. When are the refunding bonds callable?
7. Is there a call premium? Yes__._(if so, % No
8. List estimated sources and uses of refunding bond proceeds:
Sources: Uses:
TOTAL = $ IOTA
4
9. Please list the proposed security of the refunding issue:
10. Proposed offering date of the bond issue:
11. Please describe any material changes that have occurred to the company since the original bond
issue, (i.e., new products or services, increase or decrease in employment, changes in sales
revenue, net worth, profitability, new locations, etc.).
IV. PROPOSED USE
I . Location of the proposed facility. lass E Norm street
2. Size of the proposed facility (inplude size of building and amount of real property):
The expansion would include a 36,000 Sol. ft. warehouse/manfacturing and 7,000-10,000 of office space
and lab facilities.
3. Name of the Architect and Contractor, if designated:
SPT Architecture 121 Nodh Meed Suite 201, Wichita, KS 67202 316-267-0002
Nano Address Phooclrxw
Simpson Construction Services 2672 N. Ridge Rd. Ste, 112, Wichita, KS 67205 316-942-3206
Nane Address Phowirns
4. What business is proposed by the applicant at this location?
Manufacturing
5. List the products or services to be rendered. (Include details of the nature and scope of the
operation of the business):
- Vitamin / Mineral Premixes - Beverage Ingredient Mixes
- Bakery Enzyme Mixes - Food Fortification Mixes
6. What percentage of the facility will be occupied by the Applicant? (If less than 100%, please
specify other occupants): 100%
7. Describe type of building construction proposed:
TBD / Steel
8. Current zoning: 1-3 Heavy Manufacturing
9. Anticipated date of completion: January 2023
V. ORGANIZATIONAL
1. Describe the organizational structure of the firm (proprietorship, partnership, subsidiary,
corporation, not-for-profit, etc.)
Corporation / Private
2. Is the Applicant's stock publicly held? No
If so, which stock exchange?
3. In what state is the Applicant incorporated? Kansas
4. Date of incorporation. 1978
5
Indicate Applicant's principal bank. uMB
6
6. Which CPA firm does the accounting/audit? Sink, Gordon & Associates LLP
James Gordon 727 Poyntz Ave, Manhattan, KS 66502 ^785-537-0190
Cnn w parson M AMdro . -- Phono/Pas
7. Please indicate what company will be performing the environmental audit:
C."w' prason 15111. PhmvPns
8. Describe and pending or threatened litigation:
None
9. Total employment of Applicant. 70*
10. How many locations does applicant currently have? a
List locations:
Salina, KS - Manufacturing Facility! Corporate Office
Manhattan, KS - Sales Office! Bake R&D Center
Wamego, KS - Manufacturing Facility
Monticello. -IL- Sales Office
VII. MARKETING OF THE BONDS
1. Has the applicant retained a financial advisor, instead of or in addition to an Underwriter?
Conan pm,.n
2. Please indicate the proposed marketing arrangement:
Retail public offering institutional offering
Private Placement Applicant purchases issue (indicate %),
Other (please describe)
3. Proposed date of issue:
4. Proposed date of offering:
5. Proposed date of closing:
6. Is the issue to be sold interstate or intrastate?
7. If other underwriters are going to participate in the offering please list:
Company Principal location
VIII. MEASURE OF ECONOMIC GROWTH AND BENEFIT
I. Number of expected new additional employees to be hired at this site:
Year I Year 2 Year 3
Professional
Technical
Clerical
Laborers
2. Please indicate any notable characteristics of the employees for this facility:
3. Describe the economic benefits to the City's economy if the transaction is completed:
This expansion project will help ensure our corporate office and manufacturing facilities remain in Salina.
Without this expansion, we may be forced to explore alternative options to house our operations.
K
IX. POTENTIAL CONFLICTS
Is any City Commissioner an officer, director or employee ofthe Applicant or hold an ownership
interest in Applicant's firm? If so, please identify the individual and the nature of the relationship.
No
2. Please describe any other known circumstances that would create a conflict of interest:
None
PLEASE, NOTE: Any potential conflicts as disclosed above do not necessarily negate the
approval of the Issue, but are pertinent for determining those conflicts for the purpose of public
disclosure.
X. OTHER INFORMATION
Specify below any other data or information you deem pertinent for the City's consideration in passing
upon the approval of the proposed project for financing:
XI. ATTACHMENTS
To facilitate the processing of the application, please attach the following items to the application.
I . Certified copies of applicant's financial audits for the past three (3) years.
2. Applicant's most recent annual or quarterly financial report.
3. Financial Statement, current to date, for each personal guarantor.
4. Pro forma statements for the first five (5) years of operation after issuance of Bonds.
including revenue projections, operating expense projections and a debt amortization
schedule.
5. Interim financial statements to date, for the current fiscal year.
XII. APPLICANT'S AGREEMENT
Inconsideration for the City's acceptance, processing and consideration of this application, Applicant
agrees, represents and warrants as follows:
Applicant acknowledges that City of Salina policy requires a full payment in lieu of ad valorem
property taxes otherwise exempt under Kansas law as a result ofthe industrial revenue bond financing.
Applicant acknowledges having read the City's tax abatement policy set forth in the attached City of
Salina Resolution Number 91-4265, including the conditions upon which Applicants project may
qualify for partial property tax abatement. Is the applicant requesting partial property tax
abatement pursuant to the City's policy?
Applicant agrees and understands that Applicant shall be responsible for paving all expenses incurred
by the City for professional services pertaining to this application and Applicants project regardless of
whether or not the project is approved or a closing on the sale of the contemplated bonds takes place
Applicant represents and warrants that all statements offact contained in this application are true to the
Applicants best knowledge and belief.
Partial completion ofthis application is permitted, however, prior to the adoption ofthe bond ordinance;
the remaining supplementary information to complete this application must be furnished. Additional
information may be required by Bond Counsel and the Financial Advisor.
It is understood and agreed the information required in Section XI or any other information will be
disclosed to the financial team and may be disclosed to the public.
DATED this day of
AppliennYs signmurc
Return this application to:
Shandi Wicks
City Clerk
City of Salina
P.O. Box 736
Salina, Ks. 67402-0736
10
SALINA
KANSAS
Salina Community
Economic Development
Organization
PROJECT REPCO / MCSHARES SCORECARD
COMPANY
McShares DBA REPCO
INVESTMENT
$6 million
EMPLOYMENT
Retained Jobs: 55-60 in Salina
New Jobs: 5 - 4@$48,600 each and 1@$63,300
BUILDING
36,0000 sf Warehousing 7-10,000 sf office/lab
ACRES NEEDED
No additional property needed
EQUIPMENT
Some lab and warehousing required
CONSTRUCTION
WORKERS
Direct Jobs 58
Total Jobs 126
CONSTRUCTION
WAGES
Direct Payroll $3,000,000
Total Payroll $5,720,100
EARNINGS MULT
1.8161/ Jobs Multiplier 2.3517
LOCAL INCENTIVE ASSISTANCE
PROGRAM
Industrial Revenue Bonds
TERM / %
10 years —100% abatement on new property taxes
OTHER
Waiver of Sales Taxes on Construction Materials
CITY STREET $$
None
SEDIP $$
None
CITY IMPACT
City Benefits - $4777,480 / City Costs $412,418
BEN -COST RATIO
1.16 City / County 1.04 /State 2.20 / SD 305 1.45
120 W. Ash I Salina, KS 67402-0586 1 785.404.3131 1 w .salinaedo.org
.....................
WICHITA STATE
UNIVERSITY
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316)978-3225
12/14/2021
2:38 PM
V3
PROJECT SUMMARY (no multipliers, no substitution)
625,033
Com any Name
487,464
Tax abatement
445,800
Number of new jobs for 10 -year period
1M.
Amount of payroll for 10 -year period
Amount of capital investment for 10 -year Period
Land
Buildings
Machine and Equipment
INCENTIVE SUMMARY
625,033
City Incentives - Salina
487,464
Tax abatement
445,800
Sales tax exemption
41,664
Forgivable loans
0
Infrastructure
0
Cash value all other incentives
0
County Incentives - Saline
625,033
Tax abatement
616,455
Sales tax exemption
8.578
Forgivable loans
0
Infrastructure
0
Cash value all other incentives
0
State Incentives
468,750
Tax abatement
322,500
Sales tax exemption
146,250
Forgivable loans
0
Training dollars
0
Infrastructure
0
Cash value all other incentives
0
Page 1 of 21
.....................
WICHITA STATE
UNIVERSITY
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316) 978-3225
12/14/2021
2:38 PM
V3
TAX ABATEMENT PARAMETERS
Real Ptoperty Property
10
Number of years
100.0%
Percentage
Personal Proert
0
Number of years
0.0%
Percentage
SUBSTITUTION
Firm NAICS code 420000 Wholesale trade
Substitution percentage applied to firm operatic— 75.0%
ECONOMIC IMPACT OF FIRM OPERATIONS
Numberofjobs f0- ear enod 1
Direct 3
Total
Page 2 of 21
.....................
WICHITA STATE
UNIVERSITY
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316)978-3225
1 2/1 412 02 1
2:38 PM
V3
FISCAL IMPACT
Cit Fiscal impacts. - Salina
Present value of net benefits
Discounted
$65,062
Rate of Return on Investment
$65,062
Net public benefits 10 -year period
$444,145
Public costs 10 -year period
$412'418
ROI
15.8%
ROI
$976,924
Benefit -Cost Ratio
$477,480
Public benefits 10 -year period
$521,260
Public costs 10- ear period
$412,418
Benefit -Cost Ratio
1.16
Count Fiscal Impacts. - Saline
Present value of net benefits
Discounted
$18,501
Rate of Return on Investment
$18,501
Net public benefits 10 -year period
$444,145
Public costs 10 -year eeriod
$521,260
ROI
3.5%
ROI
$976,924
Benefit -Cost Ratio
$539,761
Public benefits 10- ear period
$521,260
Public costs 10 -year period
1.04
Benefit -Cost Ratio
State Fiscal Impacts
Present value of net benefits
Discounted
$532,778
Rate of Return on Investment
$532,778
Net public benefits 10 -year period
$444,145
Public costs 10- ear period
120.0%
ROI
45.0%
Benefit -Cost Ratio
$976,924
Public benefits 10- year period
$444,145
Public costs 10 -ear period
2'20
Benefit -Cost Ratio
1.45
School District Fiscal Impacts. - 305 Salina
Present value of net benefits
Discounted
$99,861
Rate of Return on Investment
$99'861
Net public benefits 10 -ye r period
Public costs lo -year period
$221'899
45.0%
ROI
Benefit -Cost Ratio
$321,861
Public benefits 10 -year period
$221'999
Public costs 10- ear period
1.45
Benefit -Cost Ratio
Page 3 of 21
In the preparation oj'this report, the Center for Economic Development and Business Research assumed that
all information and data provided by the applicant or others is accurate and reliable. CEDBR did not lake
extraordinary steps to verify or audit such information. but relied on such information and data as provided
for purposes oj'1he project.
This analysis requires CEDBR to make prediclive.forecasts, estimates and/or projections (hereinafter
collectively referred to as "FOR IYARD-LOOKING.STATEMENTS"). 717ese FORPV IRD-LOOKING
STATEMENTS erre based on information and data provided by others and involve risks, uncertainties and
assumptions that are difficult io predict. The FORWARD-LOOKING RATEMENTS•should not he
considered as guarantees or assurances that a certain level of performance will be achieved at- that certain
events ivill occur. Ff"hile CEDBR belleves• that all 1'ORtVARD-LOOKING STATEMENTS it provides are
treasonable based on the information and data available at the tune of writing, actual outcomes and results
are dependant on a variety offactors and may dimer materud8v from what is expressed or forecast. CEDBR
does not assume any responsibility far any and all decisions made or actions taken based upon the
FOR6YARD-LOOKING STATEMENTS provided by CEDBR.
Page 4 of 21
Center for Economic Development and Business Research Project or Company Name: McShares Inc.
Wichita State University Date of Analysis: 12/14/2021
1845 Fairmount St.
...................... Wichita, Kansas 67260-0121 Version of Analysis: V3
W¢mta
ST. TE (316) 978-3225 City Fiscal Impacts. - Salina
UNIVEASRV
Benefit -Cost Ratio Present Value of Net Benefits
1.80 — - - - -
j - -_ Yr. 1 $55,221
I
1.60 _ _ _
Yrs. 1-2 $56,297
1.40 Yrs. 1-3 $57,387
1.20 Yrs. 1-4 $58,489
1.00 Yrs. 1-5 $59,603
0.80 - - - - Yrs. 1-6 $60,709
Yrs. 1-7 $61,808
060 § I (} r
1 a F
kF
l
{ 1 Yrs. 1-8 $62,900 t S n t r
0.40
E ,
Yrs. 1-9 $63,984
020
a `
G Yrs. 1- $65,062
10
0.00 __ _ :_.-T _-_ _ __
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Mal
0.40
0.20
0.00
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project or Compan)
Date of Analysis: 1
Version of Analysis:
County Fiscal lmpa,
Pres
Yr. 1
Yrs. 1-2
Yrs. 1-3
Yrs. 1-4
Yrs. 1-5
Yrs. 1-6
Yrs. 1-7
Yrs. 1-8
Yrs. 1-9
Yrs. 1-10
Name: McShares Inc.
!1412021
V3
1s. - Saline
ent Value of Net Benefits
$15,141
$15,458
$15,804
$16,179
$16,579
$16,974
$17,363
$17,748
$18,127
$18,501
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
...____.._.......
Wichita, Kansas 67260-0121
Wic1I SrPiE
(316)678-3225
un "s.s'
Benefit -Cost Ratio
1.40
1.20
1.00
0.80
Mal
0.40
0.20
0.00
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project or Compan)
Date of Analysis: 1
Version of Analysis:
County Fiscal lmpa,
Pres
Yr. 1
Yrs. 1-2
Yrs. 1-3
Yrs. 1-4
Yrs. 1-5
Yrs. 1-6
Yrs. 1-7
Yrs. 1-8
Yrs. 1-9
Yrs. 1-10
Name: McShares Inc.
!1412021
V3
1s. - Saline
ent Value of Net Benefits
$15,141
$15,458
$15,804
$16,179
$16,579
$16,974
$17,363
$17,748
$18,127
$18,501
.I ---a(
Center for Economic Development and Business Research
StateUnivara
Wichita185 State U ty
W
7845 FairmountSt.
Wichita, Kansas 67260-0121
VJiC..1 5*>re
(716) 978-3225
UNrvcnsm
Benefit -Cost Ratio
4.00 —
– --
3.50
3.00
2.50
2.00
Project or Company Name: McShan:s Inc.
Date of Analysis: 12/14/2021
Version of Analysis: V3
State Fiscal Impacts
Yr. 1
Yrs. 1-2
Yrs. 1-3
Yrs. 1-4
Yrs. 1-5
Yrs. 1-6
1.50.
-:4 Yrs. 1-7
1.00 .: y .._I _ .. r Yrs. 1-8
Yrs. 1-9
0.50
i r:• Yrs. 1-10
2022 2023 2024 2025 2026 2027 2028 2029 20302031
0.00
1
Present Value of Net Benefits
$460,807
$468,737
$476,655
$484,560
$492,449
$500,300_
$508,112
$515,886
$523,620
$532,778
Center for Economic Development and Business Research
project or Company Name: McShares Inc.
UlzuWichita State University
Date of Analysis: 12/14/2021
1845 Fairmount St.
Wichita, Kansas 67260-0121
Version of Analysis: V3
W.....
bY"1". 6rme (316) 87&3225
tftivk N$ITY
School District Fiscal Impacts. - 305 Salina
Benefit -Cost Ratio
Present Value of Net Benefits
1.60 - --
.. - Yr. 1 $11,594
1.40
Yrs. 1-2 $22,813
1.20 Yrs. 1-3 $33,652
1.00
Yrs. 1-4 $44,124
Yrs. 1-5 $54,243
0.80
Yrs. 1-6 $64,005
0.60 .
I Yrs. 1-7 $73,437
4 `
0.40 1 a Yrs. 1-8 $82,550
0.20 - - Yrs. 1-9 $91,354
Yrs. 1-10 $99,861
0.00 _ __ _ _. _ _
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
WN, -FISCAL IMPACT MODEL FIRM DATA SHEET
Page 9 of 21
Expansion #3 if applicable)
Year of expansion
Market value of firm's initial NEW OR ADDITIONAL investment in:
Land
Building and improvements
Furniture, fixtures and equipment (includin machinery)
Initial construction or expansion
Cost of construction at the firm's new or expand d facility
Amount of taxable construction materials purchased in:
Cit
Count should include city amount
State should include city and county amounts)
Amount of taxable furniture, fixtures and a ui menl purchased in
Cit
Count (should include city amount)
State should include city and county amounts)
Total construction salaries
First Year of Full operations As a Result of This Project
New or additional sales of the firm related to this project
Year
Year
Year
Year
Year
Year 6
Year 7
Year
Year
Year 10
Percent of these sales subject to sales taxes in the:
Cit
Count
State
Annual net taxable income, as a percent of sales, on which state corporate income taxes
will be computed:
Page 10 of 21
New or additional purchases of the firm related to this PrQiect
Year
Year
Year 3
Year
Year
Year 6
Year
Year
Year
Year 10
Percent of these purchases subject to salesroom ensalin use taxes m the:
Cit
County
State
EMPLOYMENT
Number of NEW em 10 ees to be hired each year as a result of this project
5
Year
Year
Year
Year
Year
Year
Year
Year
Year 9
Year 10
Page 11 of 21
Number of these em to ees rnovin to count each ear FROM OUT-OF•STATE 1
Year
Year
Year
Year
Years
Year 6
Year?
Year
Year
Year 10
Number of these em to ees mo vin to count each ar FROM OTHER KANSAS COUNTIES
Year 1
Year
Year 3
Year
Year 5
Year 6
Year 7
Year
Year
Year 10
Page 12 of 21
Weighted average annual salary
of all NEW employees, including all employees hired to date, related to this project
Year 1
$51,940
Year 2
$53,498
Year 3
$55,103
Year
$56,756
Year 5
$58,459
Year 6
$60,213
Year 7
$62,019
Year 8
$63,880
Year 9
$65,796
Year 10
$67,770
Number &ADDITIONAL out -of -count visitors ex ected of the firm as a result of this Project
Year
Year 2
Year
Year 4
Year 5
Year
Year?
Year
Year 9
Year 10
Number of days that each visitor will stay in the area
Number of nights that a typical visitor will stay in a local hotel or motel
Percentage of visitors traveling on business
Percentage of visitors traveling for leisure
Percentage of visitor's expenditures spent in the same cit as firm's location
Percenta a of visitor's expenditures spent in the same count as firm's location
Percentage of visitor's expenditures spent in Kansas
Page 13 of 21
Firm a mems to the Cit
Year 1
Year 2
Year 3
Year
Years
Year 6
Year?
YearB
Year 9
Year 10
Firm payments to the Count
Year i
Year 2
Year
Year
Year
Year6
Year 7
Year 8
Year 9
Year10
Page 14 of 21
Page 15 of 21
. - •� •
mel .- .- .-..
Contact name
Contact tele hone number
Contact a-mail address
Sales tax exemption EXPANSION #1 1piease enter yes or ilu
x2s
Percent of construction material costs funded by IRB for EXPANSION #1
100.0
Sales tax exem lion EXPANSION #2 (please enter es or no)
No
Percent of construction material costs funded by IRB for EXPANSION #2
0.0%
Sales tax exem tion EXPANSION #3 ( lease enter es or no)
No
Percent ofconstruction material costs funded Dy IRB for EXPANSION #3 i
0.0%
• •• ••
Value of sales Tax tion for OPERATIONS -- CITY
Year i
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year g
Year 10
Page 16 of 21
Page 17 of 21
,. .ABATEMENT
Pro edv tax abatement -Real Property land and buildings
Number of Years
1p
Percents a
700.0%
Property tax abatement - Machinery and equipment
Number o! Years
p
Percentage
0.0%
'FORGIVABLE
Forgivable loans cash value -- CIN
Year 1
Year 2
Year3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
For ivable loans cash value -- COUNTY
Year 1
Year
Year
Year 4
Year 5
Year
Year?
Year
Year
Year 10
Page 18 of 21
STATE TRAINING DOLLARS
Trainin dollars KITIKER/IMPACT cash value)
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Page 19 of 21
Page 20 of 21
Page 21 of 21
.....................
WICHITA $TATE
UNIVERSITY
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316) 978-3225
12/13/2021
6:54 AM
V2
PROJECT SUMMARY (no multipliers, no substitution)
729,206
Company Name
McShares Inc.
Tax abatement
520,100
Number of new 'obs for 10 -year period
5
Amount of payroll for 10- ear period
$2,977,169
Amount of capital investment for 1G -year period
$7,000,000
Land
$0
Buildings
$7,000,000
Machinery and Equipment
$0
INCENTIVE SUMMARY
729,206
City Incentives - Salina
568,708
Tax abatement
520,100
Sales tax exemption
48,608
Forgivable loans
0
Infrastructure
0
Cash value all other incentives
0
Count Incentives -Saline
729,206
Tax abatement
719,198
Sales tax exemption
10,008
Forgivable loans
0
Infrastructure
0
Cash value all other incentives
0
State Incentives
546,875
Tax abatement
376.250
Sales tax exemption
170,625
Forgivable loans
0
Training dollars
0
Infrastructure
0
0
Cash value all other incentives
Page 1 of 21
..................
WICHITA..$TA..TE
UNIVERSITY
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316)978-3225
12/13/2021
6:54 AM
V2
TAX ABATEMENT PARAMETERS
Real Property
Number of years
10
Percentage
100.0%
Personal Property
Number of years
0
Percentage
0.0%
S U BSTITUTIO N
Firm NAICS code 420000 Wholesale trade
Substitution percentage applied to firm operations 75.0%
ECONOMIC IMPACT OF FIRM OPERATIONS
Nurnberof'obs 10. ear eriod
Direct 1
Total 3
Page 2 of 21
WICHITA $TATE
UNIVEn SITU
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316) 978-3225
12/13/2021
6:54 AM
V2
FISCAL IMPACT
Discounted
City Fiscal Impacts. - Salina
Discounted
Present value of net benefits
$74,088
Rate of Return on Investment
$20,977
Net public benefits 10- ear period
$74,089
Public costs 10- ear period
$481,154
ROI
15.4%
Benefit -Cast Ratio
$629,114
Public benefits 10- ear period
$555,243
Public costs 10- ear period
$481,154
Benefit -Cost Ratio
1.15
County Fiscal Impacts, - Saline
Discounted
Present value of net benefits
$20,977
Rate of Retum on Investment
Net public benefits 10 -year period
$20,977
Public costs 10- ear period
$608,136
ROI
3.4%
Benefit -Cost Ratio
Public benefits 10 -year period
$629,114
Public costs Lo -year period
$608,136
Be _CostRatio
1.03
State Fiscal Impacts
Discounted
Present value of net benefits
$608,256
Rate of Return on Investment
Net public benefits 10 -year period
$608,256
Public costs 10 -year period
$513,222
ROI
118.5%
Benefit -Cost Ratio
Public benefits 10 -year period
$1,121,478
Public costs 10- ear period
$513,222
Benefit -Cost Ratio
2.19
School District Fiscal Impacts. - 305 Salina
Discounted
Present value of net benefits
$116,495
Rate of Return on Investment
Net public benefits 10- ear period
$116,495
Public costs 10- ear period
$255,289
ROl
45.6%
Benefit -Cost Ratio
Public benefits 10 -year period
$371,783
Public costs 10 -year period
$255,289
Benefit -Cost Ratio
1.46
Page 3 of 21
In the preparation of this report, the Center,for Economic Development and Business Research assumed that
all information and data provided by the applicant or otters is accurate and reliable. CEDBR did not take
extraordinary steps to verify or audit such information, but relied on such information and data as provided
for purposes of the project.
This analysts requires CEDBR to make predictive forecasts, estimales and/or projections (hereinafter
collectively referred to as "FORIVARD-LOOKING S7ATEMENTS ). These FORWARD-LOOKING
STATEMENTS are based on information and dater provided by others and involve risks, uncertainties and
assumptions that are difflcull to predict 71he FORWARD-LOOKING STATEMENTS shoulcinot be
considered as guarantees or assurances that a certain level ofperformance will be achieved or that certain
events will occur. While CEDBR believes that all FORWARD-LOOKING STATEMENTS it provides tire
reasonable based on the information and data available al the time of writing, actual outcomes and results
are dependent on a variety offactors and may dimer materially from what is expressed or forecast. CEDBR
does not assume any respon.sibilimfor any and all decisions made at, actions taken based upon the
FORWARD-LOOKING STATEdIENTS provided by CEDBR.
Page 4 of 21
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project or Company Name: McShares Inc.
Date of Analysis: 12/13/2021
Version Of Analysis: V2
City Fiscal Impacts. - Salina
Present Value of Net Benefits
Yr. 1 $64,248
Yrs. 1-2 $65,324
Yrs. 1-3 $66,413
Yrs. 1-4 $67,516
Yrs. 1-5 $68,630
Yrs. 1-6 $69,736
Yrs. 1-7
Yrs. 1-8
Yrs. 1-9
Yrs. 1-
10
$70,835
$71,927
$73,011
$74,089
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
......................
Wichita, Kansas 67260-0121
W ICNITA STATE
(316) 978-3225
UNIVERSITY
Benefit -Cost Ratio
1.80 —
--
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project or Company Name: McShares Inc.
Date of Analysis: 12/13/2021
Version Of Analysis: V2
City Fiscal Impacts. - Salina
Present Value of Net Benefits
Yr. 1 $64,248
Yrs. 1-2 $65,324
Yrs. 1-3 $66,413
Yrs. 1-4 $67,516
Yrs. 1-5 $68,630
Yrs. 1-6 $69,736
Yrs. 1-7
Yrs. 1-8
Yrs. 1-9
Yrs. 1-
10
$70,835
$71,927
$73,011
$74,089
Center for Economic Development and Business Research
project or Company Name: McShares Inc.
Wichita State University
Date of Analysis: 12113/2021
1845 Fairmount St.
Version Analysis: V2
..............-...... Wichita. Kansas 67260-0121
of
iC salt (316)978-3225
County Fiscal Impacts- Saline
uxneasrry
$19,450
Benefit-Cost Ratio
Present Value of Net Benefits
1.40
1.20
1.00
1:►
1 •1
0.40
0.20
0.00
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Yr. 1
$17,617
Yrs. 1-2
$17,934
Yrs. 1-3
$18,280
Yrs. 1-4
$18,655
Yrs. 1-5
$19,055
Yrs. 1-6
$19,450
Yrs. 1-7
$19,839
Yrs. 1-8
$20,224
Yrs. 1-9
$20,603
Yrs. 1-10
$20,977
_yet
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
......................
Wichita, Kansas 67260-0121
Wv:nn•5r•rs
(316)978-3225
UNNEns'"
Benefit -Cost Ratio
4.00 - ---
-----
i
3.50
Projector Company Name: McShares Inc.
Date of Analysis: 12/13/2021
Version of Analysis: V2
State Fiscal impacts
Yr. 1
Yrs. 1-2
Yrs. 1-3
Yrs. 1-4
2.50 -
kt
�4 µ
Yrs. 1-5
2.00
`1 Yrs. 1-6
1.50 - - -
Yrs. 1-7
1.00 Yrs. 1-8
0.50 Yrs. 1-9
s t � r � Yrs. 1-10
0.00-k�_.`,r _,-
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Present Value of Net Benefits
$536,285
$544,215
$552,133
$560,038
$567,927
$575,778
$583,590
$591,364
$599,098
Ilii$608,256
1.20
1.00
0.80 tt
0.60=-
0.40
i ti" f :` f t , . i •1
0.20 1+ > 1
0.00
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project or Company Name: McShares Inc.
Date of Analysis: 12/13/2021
Version of Analysis: V2
School District Fiscal Impacts. - 305 Salina
Present Value of Net Benefits
Yr. 1 $13,527
Yrs. 1-2 $26,612
Yrs. 1-3 $39,255
Yrs. 1-4 $51,471
Yrs. 1-5 $63,273
Yrs. 1-6 $74,662
Yrs. 1-7 $85,666
Yrs. 1-8 $96,298
Yrs. 1-9 $106,570
Yrs. 1-10 $116,495
Center for Economic Development and Business Research
,:�ff
Wichita State University
IM
1845 Fairmount St.
................ I....
Wichita, Kansas 6726MI 21
Wrtenn srarc
(316) 978-3225
uwvensrry
Benefit-Cost Ratio
1.60 ----
- --
1.40
1.20
1.00
0.80 tt
0.60=-
0.40
i ti" f :` f t , . i •1
0.20 1+ > 1
0.00
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project or Company Name: McShares Inc.
Date of Analysis: 12/13/2021
Version of Analysis: V2
School District Fiscal Impacts. - 305 Salina
Present Value of Net Benefits
Yr. 1 $13,527
Yrs. 1-2 $26,612
Yrs. 1-3 $39,255
Yrs. 1-4 $51,471
Yrs. 1-5 $63,273
Yrs. 1-6 $74,662
Yrs. 1-7 $85,666
Yrs. 1-8 $96,298
Yrs. 1-9 $106,570
Yrs. 1-10 $116,495
CEDBR-FISCAL IMPACT MODEL FIRM DATA SHEET
PROPERTYREAL
expalrsions�
COMPANY.-
Ms Inc.
Company name or ro ect name
Monte Whhiteite C CEO ent
Contact name
,
785--Presid833-2629
Contact telephone number
$0
Contact e-mail address
$7,000,000
Company NAICS Code - Please select a NAICS code from the list provided. Model
$0
parameters are set based on the NAICS selected.
420000 Wholesale trade
Substitution Override
2021
Year of application
PROPERTYREAL
expalrsions�
months allocate expenditures to multiple
Expansion #1
2022
Year of exriansion
Market value of firm's initial NEW OR ADDITIONAL investment in
$0
Land
$7,000,000
Building and improvements
$0
Furniture, fixtures and a ui ment undudiny machinery)
Initial construction orex ansion.
$7.000,000
Cost of construction at the firm's new or expanded facility
Amount of taxable construction materials purchased in.
$2,625,000
Cit
Count should include cit amount)
$2,800,000
State (shouldinclude cit and count amounts)
$3,500,000
Amount of taxable furniture, fixtures and e ui ment purcnasea in.
Cit
$0
Count (should include cit amount)SO
$0
State (should include city and county amounts)
Total construction salaries
$3,500,000
Expansion #2 jif applicable)
Year of expansion_
Market value of firm's initial NEW OR ADDITIONAL investment in.
Land
Building and improvements
Furniture, fixtures and e uipment (including machinery)
Initial construction or expansion
Cost of construction at the firm's new or expanded facilit
Amount of taxable construction materials purchased in
Cit
Count (should include city amount)
State should include city and county amounts)
Amount of taxable furniture, fixtures and e ui menf urchased in
Cit
Count (should include city amount)
State (should include city and county amounts)
Total construction salaries
Page 9 of 21
Expansion #3 if applicable)
Year of expansion
Market value of firm's initial NEW OR ADDITIONAL investment in:
Land
Building and improvements
Furniture, fixtures and equipment (includin machinery)
Initial construction or expansion'
Cost of construction at the firm's new or expanded facility
Amount of taxable construction materials purchased in.
Cit
Count (should include city amount)
State (should include city and county amounts)
Amount of taxable furniture. fixtures and equipment urchased in:
Cit
Count should include city amount
State should include city and county amounts
Total construction salaries
�OPERATIONS
First Year of Full Operations As a Result of This Project
New or additional sales of the firm related to this project
Years
Year
Year
Year
Year 5
Year
Year
Year
Year
Year 10
Percent of these sales subject to sales taxes in the:
city
Count
State
Annual net taxable income, as a percent of sales, on which state corporate income taxes
will be computed:
Page 10 of 21
IEMPLOYMENT
Number of NEW em /o ees to be hired each Year as a result of thisproject
Year
Year 2 5
Year
Year
Year
Year 6
Year 7
Year 8
Year 9
Year 10
Page 11 of 21
Number of these employees moving to county each ear FROM OUT-OF-STATE
Year t
Year
Year
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Number of these em !o ees moving to count each ear FROM OTHER KANSAS COUNTIES
Year
Year 2
Year 3
Year 4
Year 5
Year
Year 7
Year 8
Year
Year 10
Page 12 of 21
Weighted average annual salary
of all NEW em to es, incluqWlg all employees hired to date, related to this protect
Year 1
$51,940
Year 2
$53,498
Year 3
$55,103
Year
$56,756
Year 5
$58,459
Year 6
$60,213
Year 7
$62,019
Year 8
$63,880
Year 9
$65,796
Year 10 _
Rr 7 77n
Number of ADDITIONAL out -of -county visitors expected at the firm as a result of this project
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year?
Year 8
Year
Year10
Number of da s that each visitor will stay in the area
Number of nights that a typical visitor will stay in a local hotel or motel
Percenta a of visitors traveling on business
Percentage of visitors travelin2 for leisure
Percentage of visitor's ex enditures spent in the same city as firm's location
Percentage of visitor's expenditures spent in the same count as firm's location
Percentage of visitor's expenditures spent in Kansas
Page 13 of 21
Firm payments to the Cit
Year 1
Year
Year
Year
Year
Year
Year
Year
Year
Year 10
Firm payments to the Count
Year
Year 2
Year
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Page 14 of 21
Page 15 of 21
.•• .. •
ontact name
onta ctt telephone number
Contact e-mail address
Sales tax exemption EXPANSION #1 (please enteres or no)
es
Percent of construction material costs funded by IRB for EXPANSION #1
100.0%
Sales tax exemption EXPAN51ON #2 please enter es or no
No
Percent of construction material costs fundetl b IRB for EXPANSION #2
0.0
Sales lax exem tion EXPANSION 73 iplease enter es or no
No
Percent of construction material costs funded by RB for EXPANSION #3
0.0%
droll,•• ••IM 11
Value of sales tax exemption for OPERATIONS -- CIN
Year 1
Year 2
Year 3
Year
Year
Year 6
Year 7
Year8
Year 9
Year 10
Page 16 of 21
Page 17 of 21
FORGIVABLE••
For ivable loans cash value -- CITY
Year 1
Year 2
Year 3
Year 4
Years
Year
Year 7
Year 8
Year 9
Year 10
Forgivable loans cash value --COUNTY
Year 1
Year 2
Year 3
Year
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Page 18 of 21
PROPERTY
Property tax abatement - Real property land and buildin s
Number of Years
10
Percentage
100.0
Property tax abatement - Machine and a ui ment
Number of Years
6
Percentage
0.0%
FORGIVABLE••
For ivable loans cash value -- CITY
Year 1
Year 2
Year 3
Year 4
Years
Year
Year 7
Year 8
Year 9
Year 10
Forgivable loans cash value --COUNTY
Year 1
Year 2
Year 3
Year
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Page 18 of 21
STATE TRAINING DOLLARS
'Training dollars KITMERAMPACT cash value
Year 1
Year
Year
Year 4
Year 5
Year
Year 7
Year 6
Year 9
Year 10
Page 19 of 21
Page 20 of 21
Page 21 of 21
i
.... rµ.
•
K
F
5 ♦...
PT
PI
•
v.'N RI1
Special Redevelopment Area
:•••
RESOLUTION NUMBER 91-4265
A RESOLUTION ADOPTING A POLICY FOR THE GRANTING OF
EXEMPTIONS FROM AD VALOREM TAXATION FOR ECONOMIC DEVELOPMENT
PURPOSES WITHIN THE CITY OF SALINA, KANSAS.
WHEREAS, Section 13 of Article 11 of the Kansas Constitution j
authorizes the governing body of any city to grant property tax exemptions for
certain economic development purposes; and
WHEREAS, the Board of City Commissioners has determined that,
under certain circumstances, the granting of property tax exemptions can be an
effective economic development tool; and
WHEREAS, state statutes require that the governing body develop and
adopt official policies and procedures prior to granting such exemptions; SO
NOW. THEREFORE
BE IT RESOLVED by the Governing Body of the City of Salina,
Kansas:
Section 1, Purpose. The purpose of these provisions Is to establish
the official policies and procedures of the City of Salina for the granting of
property tax exemptions for real and tangible personal property used for
qualified economic development purposes under Section 13 of Article 11 of the
Kansas Constitution.
Section 2. AuthoVt and cll cwetlon. The authority to grant tax
exemptions within the � byo� a ina �s vested solely in the Board of City
Commissioners. The Board of City Commissioners is under no obligation to
approve any requested exemption and reserves the right to deviate from the
policies and criteria contained herein If circumstances exist to warrant such
deviation. Such circumstances may include, but not be limited to; (a) economic
development projects financed by means that substitute for industrial
development bonds for which resolutions of Intent containing tax exemption have
previously been issued thus resulting in a reduction in the amount of the
resolution of intent; or (b) economic development projects which, due to their
unusual nature or magnitude, offer extraordinary benefits to the community.
Section 3. Notice and hearing. Prior to granting a tax exemption, a
public hearing shall be—he d y t e oard of City Commissioners. Notice of the
public hearing shall be published at least once seven (7) days prior to the
hearing and shall Indicate the purpose, time and place thereof. The City Clerk
shall also notify in writing the governing body of Saline County and Unified
School District 305.
Section 4. Criteria for granting exemption. Each application for
property tax exemption shalr�be u e Tn accordance with the following
criteria:
A. Demonstration of economic benefit. The Board of City
omm ssloners may const er granting said tax exemption
only upon clear and factual demonstration of direct
economic benefit. The project shall create additional
permanent jobs and increase private capital investment
in new plant and/or equipment.
B. Preservation of existin tax base. It is the intent of
this policy to promote expansion of the tax base and
ensure that the taxing districts having authority to
levy taxes on the property affected will receive, in the
future, not less than the amount received prior to
granting the exemption.
C. Eligible businesses. In accordance with Article 11 of
the Kansas Constitution, a tax exemption will be
considered only for businesses engaged in the following
activities:
Manufacturing articles of commerce;
Conducting research and development; or
3. Storing goods or commodities which are sold
or traded in interstate commerce,
El lglbie property, The Board of City Commissioners
may axe,
empt-from ad valorem taxation all or any portion
of the appraised valuation of:
1. All newly constructed buildings or additions
to existing buildings used exclusively for
eligible business activities which is necessary
to facilitate the formation of a new business
or expansion of an existing business if, as a
result of such formation or expansion, new
employment Is created,
2. All newly acquired or existing tangible
personal property used exclusively for eligible
business activities, except that no existing
tangible personal property located In the state
of Kansas may be granted an exemption
unless said exemption is required, based on a
factual determination, to retain jobs In the
state of Kansas.
No exemption will be granted for the land
upon which qualified buildings or building
additions are located, existing buildings already
built, or any property rented or leased to outside
interests by other than a not-for-profit local
economic development corporation. No exemption
will be granted for buildings or building additions
for which a building permit has been applied or
construction commenced before the date said
exemption is granted. No exemption will be
granted for any existing tangible personal
property located in the City of Salina nor any
newly acquired tangible personal property ordered
or purchased prior to the date said exemption is
granted.
In the event a not-for-profit local economic
development corporation constructs a new building
for an unidentified occupant, the minimum job
requirement shall be waived. No tax exemption
shall be granted until occupancy by an eligible
business activity and project completion.
Section 5. Amount and term.
A. Base exemption. An exemption may be granted for 25%
of the property taxes due for projects which involve
new capital investment and which create new permanent,
full-time jobs as follows: $100,000 of investment and 3
new jobs; $200,000 of Investment and 2 new jobs; or
$300,000 of investment and 1 new job.
Incentive exemption. Special consideration will be given
toto increa�amount of tax exemption up to 100%
based on the following scale regarding the amount of
capital Investment and number of new employees:
An additional tax exemption of 2.0% for each
additional new job (FTE) above the base minimum.
An additional tax exemption for each additional
$15,000 of investment above the base minimum as
follows: $100,000 to $1 million - 0,3%; between $1
million and $2 million - 0,2%; above $2 million -
0.1%.
C. Descending scale. The calculated total tax exemption
will be applied according to the following scale:
Years 1 thru 5 - 100%
Years 6 thru TO - 508
D. Term of exem tion. No tax exemption shall be in effect
or more than 10 years after the calendar year In which
the business commences operations or completes an
expansion. Any applicant receiving a tax exemption
shall be required to make payments in lieu of taxes
equal to the amount of property tax not exempted.
Said payments shall be payable to the Saline County
Treasurer for distribution, under the provisions of
K.S.A. 12-148, to the general fund of all taxing
subdivisions, excluding the state, which levy taxes on
property where the business is situated. This
apportionment shall be based on the relative amount of
taxes levied by each of the applicable taxing
subdivisions. Any tax exemption granted shall not
affect the liability of any special assessments levied or
to be levied against such property. No tax exemption
granted shall be continued If the business ceases
operations or ceases to be engaged in eligible business
activities.
Location remium. Businesses shall be encouraged to
ovate and or expand within special redevelopment areas
of the City's enterprise zone. To foster such action,
businesses may receive a premium equal to fifty percent
(508) of and which shall be added to the calculated
tax exemption (e.g. forty percent (40%) calculated tax
exemption plus twenty percent (20%) premium equals
sixty percent (60%) total exemption for years one (1)
through five (5).] Special redevelopment areas shall be
designated by separate resolution of the Board of City
Commissioners.
Section 6. Preliminary review. Prior to submittal of a formal
application, a mess may inquire as to eligibility for tax exemption and the
anticipated amount based on preliminary employment and capital Investment
figures. The business shall complete a pre -application form and submit same to
the City Manager's office. City staff will review the information submitted and
respond to the business regarding apparent eligibility and potential amount of
tax exemption if granted. The response from city staff shall in no way
represent definitive findings or be seen as an expression of intent or obligation
of the Board of City Commissioners to favorably consider or approve a formal
request for tax exemption. The pre -application form and staff response shall be
deemed to be proprietary business information and shall be kept confidential.
Section 7. Formal application.
A, _Filing fee. An application for a tax exemption shall be
accompanied by a non-refundable filing fee of $250,00.
Said fee shall be used to defray expenses incurred In
processing and evaluating the application.
B. Application contents. The City will not consider the
granting of any tax exemption unless the business
submits a full and complete application and provides
such additional Information as may reasonably be
requested. The application shall contain the following:
1. Name and address of business, principal owners
and officers, contact person and telephone
number.
2. A general description of the nature of the
business, business history and experience, and a
list of principal competition in the local market.
3. Name and address of the owner of the land and
building occupied or to be occupied by the
business.
4. A general description of the proposed building
project or Improvements, including estimated
capital costs, plus the amount or percentage of tax
exemption being requested.
5. A site plan of the proposed building project or
improvements.
6. If an existing business, average total monthly
employment figures for the past twelve months.
7. Number of new jobs (FTE) to be created by type
or position.
8. A statement explaining why the requested tax
exemption is a critical factor in determining
whether the proposed project is to be completed.
C. Review procedures. Each application for tax exemption
shall generally follow the following procedures:
1. The business submits a completed application and
pays the required filing fee to the City Clerk.
2. The City Clerk provides notification of the
application for tax exemptlon to the Board of City
Commissioners.
3. The Board of City Commissioners refers the
application to the City Manager for an analysis of
the costs and benefits of such exemption and
authorizes a public hearing to be scheduled.
4. The City Clerk publishes required notice of the
hearing and sends written notice of the hearing to
the Saline County Commission and U.S,D. 305.
5. The Board of City Commissioners reviews the
analysis of costs and benefits and receives
comments from the applicant, affected taxing
districts, and the general public. At the
conclusion of the hearing, the Board of City
commissioners will take formal action on the
application. Approval shall be in the form of a
resolution.
6. If approved, the business will need to file an
exemption claim form with the County Appraiser as
required by state statute. Such claim form shall
be signed by the City Clerk.
D. Terms and conditions. In granting a tax exemption,
the Board o ity ommissloners may impose any terms
or conditions as deemed necessary to fulfill the purpose
and Intent of this policy.
Section 8. Completion review. Each tax exemption granted shall be
subject to a review ofproject completion. This review shall be for the purpose
of determining if the economic benefits were achieved, if the percent and term of
exemption remain valid, and if the business is in compliance with any established
terms or conditions. In the event the capital Investment project has not been
completed, the review status shall be considered to be In -progress and no tax
exemption shall be granted. If the capital investment project is complete but the
employment goal has not been reached and hiring remains active, the applicant
business may choose to be considered in -progress and receive no tax exemption
or be considered partially complete and receive a one-time prorated tax
exemption for the subject year. A project shall be considered complete If more
than 18 months have elapsed since Initial approval of the tax exemption
resolution.
A. Filing date and fee. The application for completion
review sha 1 e filed on an annual basis no later
than January 15 of each year until the project has
been completed. The filing fee shall be $125.00
and is non-refundable. There shall be no filing
fee for an in -progress review.
B. Business Information. The recipient business shall
provide information pertaining to the number of
full-time permanent jobs created as a result of the
project, the actual amount of capital invested in
the project, the ongoing nature of business
activities, and any other data as may reasonably
be requested.
C, Review p rocess. The City Manager will review the
application 'Aa submit a report to the Board of
City Commissioners. The Board of City
Commissioners will consider the application and
staff report at a public hearing, advance notice of
which shall be as provided for the hearing on the
original application. Said hearing and decision on
whether or not to grant a certification of
compliance for the tax exemption shall occur no
later than February 15 of each year.
D. Certification. If certification of compliance for the
tax exemption is granted, the exemption claim form
filed by the property owner with the County
Appraiser shall include a written statement, signed
by the City Clerk, that the property continues to
meet all terms and conditions established as a
condition of granting the exemption.
E. Revocation. The Board of City Commissioners
reserves the right to revoke a granted tax
exemption due to submittal of a fraudulent
application, failure to submit the completion review
application and supporting Information, failure to
meet qualifying criteria, or failure to comply with
established terms or conditions. Failure to
produce the stated economic benefits will result in
a reduction or loss of tax exemption.
Section 9. Monitorinreview. Following receipt of certification of
compliance, each tax exempton g ranted shall be subject to an annual monitoring
review of business status. This review shall be for the purpose of determining
if the business continues to meet eligibility criteria and remains in compliance
with any established terms or conditions.
A. Filing date and fee. The application for monitoring
review shall e fifed on an annual basis no later than
January 15 of each year for the term of the exemption.
The filing fee shall be $50,00 and is non-refundable.
B. Business Information. The recipient business shall
provide informal on pertaining to the ongoing nature of
business activities, average total monthly employment,
any change in majority ownership of the business and
any other data as may reasonably be requested.
C. Review process. The City Manager will review the
app icat on -an , unless ineligibility or non-compliance is
evident, shall direct the City Clerk to Issue a
certificate of compliance. In the alternative, the City
Manager shall submit a report to the Board of City
Commissioners for their determination of compliance.
D. Certification, if compliance is deemed to exist, the
exemption claim form filed by the property owner with
the County Appraiser shall include a written statement,
signed by the City Clerk, that the property continues
to meet all terms and conditions established as a
condition of granting the exemption.
E. Revocation. The Board of City Commissioners reserves
ti-fe--r-1gWt to revoke a granted tax exemption due to
submittal of a fraudulent application, failure to submit
the monitoring review application and supporting
Information, failure to meet qualifying criteria, or
failure to comply with established terms or conditions.
Section 10Confidentiality. All applications and records pertaining to
a formal fax exemption request sFtalf be subject to the provisions of the Kansas
Open Records Act.
Section 11. Industrial Revenue Bonds. The criteria, terms and
provisions of this policy shall serve as a g, eine for tax exemption requests
associated with industrial Revenue Bonds for which resolutions of intent have
been applied for after the effective date of this policy.
Section 12. Amendments, The Board of City Commissioners reserves
the right to aim revoke, change or otherwise modify this policy from time to
time to promote the best interests of the City of Salina.
Section 13. Effective date. This policy shall apply to all applications
for tax exemption submitte on ora ter the date of adoption.
Adopted by the Board of City Commissioners and signed by the Mayor
this 19th day of January, 1991,
Rob, Ma r
[SEAL)
ATTEST:
Jacq,e ne Shiever, City Clerk
RESOLUTION NUMBER 05-6230
A RESOLUTION RECONFIRMING SUPPORT FOR THE REGIONAL
STRATEGIC PLAN; REQUESTING THE KANSAS SECRETARY OF COMMERCE AND
HOUSING RE -DESIGNATE SALINE COUNTY AS A NON -METROPOLITAN BUSINESS
REGION UNDER THE KANSAS ENTERPRISE TONE ACT; RE-ESTABLISHING
CERTAIN ECONOMIC DEVELOPMENT INCENTIVES TO BE PROVIDED BY THE
CITY OF SALINA FOR A SPECIAL REDEVELOPMENT AREA, AS WELL AS OTHER
AREAS OF THE CITY; AND REPEALING RESOLUTIONS NO. 00-5646 AND NO. 00-
5647.
WHEREAS, the Kansas Enterprise Zone Act of 1992, K.S.A. 74-50,113 et seq. eliminated
certain local zones and local incentives, and established a system of state-wide and country -wide
Enterprise Zones and incentives; and
WHEREAS, following the adoption of the state Enterprise Zone Act the City of Salina
eliminated its locally designated Enterprise Zones and by Resolution No. 91-4266 and 98-5374
designated an area within the City of Salina as a Special Redevelopment Area; and
WHEREAS, the City of Salina desires to re-establish and clarify certain local economic
development incentives originally established in 1992 for both the Special Redevelopment Area and
for the remainder of the City; and
WHEREAS, a regional strategic plan as required by 74-50, 116 (c) (2), has been updated
and adopted by the Governing Body of Saline County on November 15, 2005. SO NOW
THEREFORE
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
Section 1. The following local economic development incentive is adopted for the City of
'
Salina, to be included in the Kansas enterprise Zone Act planning and reporting:
A qualified business located anywhere within the Salina city limits shall be eligible
for a rebate of fifty percent (SO%) of their paid building permit fees for newly
constructed buildings, building additions or renovations to existing buildings, when
the project cost, as shown on the building permit application, exceeds one hundred
thousand dollars ($100,000), and the building is used for, (a) manufacturing articles
of commerce; (b) conducting research and development; or (c) storing goods and
commodities sold or traded in interstate commerce. The rebate shall be paid at the
time of issuance of a final Certificate of Occupancy.
Section 2. The local economic development incentive is adopted for the Special
Redevelopment Area of the City of Salina as follows:
At the time of application for a building permit the City of Salina will waive one
hundred percent (100%) of the normal building permit fee for all newly constructed
buildings, building additions or renovations to existing buildings that are usedfor
any purpose.
Section 3. That the above building permit related economic development incentives are in
addition to the City's economic development incentives established under industrial revenue bond,
industrial development property tax exemption, and neighborhood revitalization policies and
'
programs.
Section 4. The regional business incentives(s) of four (4) hours of North Central Regional
Planning Commission staff time, valued at $50.00 per hour, will be offered to all qualified
businesses in the City; and
Section 5. The following county -wide business incentives will be offered to all qualified
businesses as outlined in Section I of this resolution.
Section 6. That all qualified businesses in the City will be notified of the business
incentives indicated above by letter of public notice; and
Section 7. That the Governing Body of the City of Salina desires to continue its
participation with Cloud, Dickinson, Ellsworth, Jewell, Lincoln, Mitchell, Ottawa, Republic, Saline
and Washington counties as part of a Kansas Enterprise -Lone designated non -metropolitan business
region as provided for by K.S.A. 74-50,116.
Section 8. That the Kansas Secretary of Commerce and Housing is hereby requested to re -
approve Saline County as a Kansas Enterprise Zone designated nun -metropolitan business region
pursuant to the Kansas Enterprise Zone Act.
Section 9. That the City Manager is authorized to take all actions necessary to implement
the provisions of this resolution.
Section 10. That Resolution Nos. 00-5646 and 00-5647 are hereby repealed.
Section 11. That this resolution shall be in full force and effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 12'h day t
December, 2005. /
�A
Deborah Divine, Mayor
[SEAL]
ATTEST
/ uCG(ti�&crk
Lieu Ann
SAUNA,
V I Salina Community
m
Econoic Development
Organization
CITY OF SALINA, KANSAS
SPECIAL MEETING OF THE SALINA COMMUNITY ECONOMIC DEVELOPMENT
ORGANIZATION, INC.
DECEMBER 6, 2021
12:00 PM
Via in person and Zoom (Z)
1. CALL TO ORDER AND ROLL CALL
The Special Meeting of the Salina Community Economic Development Organization, Inc. was
called to order at 11:59 AM by Lloyd Davidson, Board President.
(1.1) Confirmation of Meeting Notice
Robinson confirmed that the meeting notice was made public via email, news release, and social
media on November 30, 2021
Those present and comprising a quorum:
Lloyd Davidson Pete Brungardt Paula Fried
Frank Hampton Brian Richardson Cheryl Murray (Z)
Paula Fried (in ®12:05) Max Wellbrock-Talley
Also present:
Mitch Robinson, Salina Community Economic Development Organization Executive Director;
Robin VanAtta, Salina Community Economic Development Organization Admin. Assistant;
Mike Schrage, City Manager, City of Salina
Monte 1ANte, CEO, RevCo/McShares
Jason Creed, CFO, RevCo/McShares
Jeff Maes, ComPro Realty, representing RevCo/McShares
Absent:
John Gunn
Jim Maes (per conflict of interest)
(1.2) Public Comment
No public comments.
2. EXECUTIVE SESSION
Moved by Brungardt, seconded by Richardson to move that the Salina Community Economic
Development Organization board of directors recess into executive session for forty-five (45)
minutes to discuss the subject of a specific economic development project based upon the need
to discuss data relating to the financial affairs or traded secrets of corporations, partnerships,
trusts and individual proprietorships pursuant to K.S.A. 75-4319. The open meeting will resume
in this room at 12:45 PM. Aye: (6). Nay: (0). Motion carried.
120 W. Ash I Salina, KS 67402-0586 1 785.404.3131 i www.satinaedo.org
The board of directors recessed into executive session at 12:02 PM and reconvened at 12:53
PM.
Also present in executive session:
Mike Schrage, City Manager, City of Salina
Monte White, CEO, RepCo/McShares
Jason Creed, CFO, RepCo/McShares
Jeff Maes, ComPro Realty, representing RepCo/McShares
3. ACTION ITEMS
Moved by Hampton, seconded by Richardson to present the two incentive options to the
company. Once the company decides which option to pursue, the EDO will bring that incentive
proposal to the City of Salina City Commissioners for consideration.
Incentive Options include:
A). A 100% abatement for 10 years with the company providing 5 new jobs by year 5 with claw -
back function.
-OR-
B) A 100% abatement for years 1-5 and 50% abatement for years 6-10 with no employee
requirements and no claw -back function.
Aye: (7). Nay: (0). Motion carried.
Motionby Hampton, seconded by Richardson to recommend 100% abatement on the sales tax of
the construction materials for the expansion project, wluch is estimated at a $6-$7 million
investment. This recommended abatement would be available for Incentive Option A or
Incentive Option B. Aye: (7). Nay: (0). Motion carried.
4. ADJOURNMENT
Davidson adjourned the meeting at 1:12 PM.
Lloy
d
gGidson, Board President
ATTEST:
i,
Cheryl Murray, Board Secretar
Repco Incentive Calculation
$6M Project Assumption
investment Calculation
$300K+ 1 lob
25
$300K - $1M (.3%/$15K)
46.67
X
0.3
14
$1M - $2M (.2%/$15K)
66.67
X
0.2
13.33
$2M - $6M (.1%/$15K)
266.67
X
0.1
26.67
79.00
Years 1-5
79.00
Employment Calculation
2% per job above minimum
4
X
2
8
:l
Years 1-5 - 50% Special
Redevelopment Area Premiim 43.5
130.5
Years 1-5 100%
Years 6-10 (50% of calculated total) 50%-65.25%
Repco Incentive Calculation
$7M Project Assumption
Investment Calculation
$300K+ 1 Job
25
$300K- $1M (.3%/$15K)
46.67
X
0.3
14
$1M - $2M (.2%/$15K)
66.67
X
0.2
13.33
$2M - $7M (.1°%/$15K)
333.33
X
0.1
33.33
85,67
Years 1-5
85.67
Employment Calculation
2% per job above minimum
4
X
2
8
93.67
Years 1-5 - 50% Special
Redevelopment Area Premiim 46.835
140.505
Years 1-5 100%
Years 6-10 (50% of calculated total) 50%-70.2S%