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| Resolution | NO. 170 |
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| | | | | | | | | A Resolution setting a Public Hearing for Asmo Manufacturing Inc. Industrial Facilities Tax Exemption Application. | | | |
| | | | | | | | | BATTLE CREEK, MICHIGAN - 6/21/2016 | | | |
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Resolved by the Commission of the City of Battle Creek:
A Resolution setting a Public Hearing for 7:00 PM, July 5, 2016, on a proposed Industrial Facilities Tax Exemption Certificate at the request of Asmo Manufacturing Inc., for real and assessable personal property located at 500 Fritz Keiper Blvd. in Industrial Development District No. 2.
The City of Battle Creek has received an application for an Industrial Facilities Tax Exemption Certificate under the provisions of Act 198 of the Public Acts of 1974, as amended, from Asmo Manufacturing Inc., with respect to a facility located within Industrial Development District No. 2; and
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The City Commission of the City of Battle Creek shall hold a hearing on July 5, 2016, beginning at 7:00 PM in the City Commission Chambers in City Hall, Battle Creek, Michigan, for the purpose of affording a hearing to the applicant, the City Assessor and a representative of each taxing unit which levies ad valorem property taxes in the City of Battle Creek on the real property of the applicant, as required by Section 5(2) of said Act; and
2. The City Clerk shall notify in writing the City Assessor and the legislative body of each taxing unit which levies ad valorem property taxes on the tangible personal property of the applicant, of the date, time and place of the aforementioned hearing and that the City Commission shall afford the applicant, Assessor and a representative of each such taxing unit an opportunity to be heard with respect to the applicant's application.
I, Victoria Houser, City Clerk of the City of Battle Creek, hereby certify the above and foregoing is a true and correct copy of a Resolution adopted by the Battle Creek City Commission at a Regular meeting held on June 21, 2016.
Victoria Houser
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| | | | | | | | | Battle Creek City Commission
6/21/2016
Action Summary | | | |
| | | | | | | | | | Staff Member: | Steven M. Hudson | | Department: | Assessing |
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| | | | | | | | | SUMMARY
| A Resolution setting a Public Hearing for Asmo Manufacturing Inc. Industrial Facilities Tax Exemption Application.
| BUDGETARY CONSIDERATIONS
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| CITY OF BATTLE CREEK |
| Assessor's Application Review & Tax Analysis for Industrial Facilities Tax Exemption Request |
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| Applicant: |
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Asmo Manufacturing Inc. |
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| Location of Facility: |
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500 Fritz Keiper Blvd |
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| Application Filed: |
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5/26/2016 |
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| Industrial Development District: |
IDD #2 |
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| Special District(s) Containing Facility: |
BATTLE CREEK TIFA |
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| Type of Facility: |
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NEW |
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| Description of Facility: |
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| Addition of 50,400 square feet to existing building to accommodate the expansion of the manufacturing process. |
| Property Type |
Estimated Investment |
Construction Begins |
Construction Ends |
# of Years Eligible |
Abatement Ends |
| Real |
$2,879,978 |
1/7/2016 |
8/1/2016 |
12 |
12/30/2030 |
| Personal* |
$9,309,284 |
5/1/2016 |
10/1/2018 |
12 |
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| Total: |
$12,189,262 |
NOTE: Abatement ends 12 years after project completion. |
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| ESTIMATED PROPERTY TAXES OVER LIFE OF CERTIFICATE |
| Tax Year |
Taxable |
Taxes Without |
Taxes With |
Taxes |
Abatement Years |
| Value |
Abatement |
Abatement |
Abated |
| 2017 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
1st Year Abatement |
| 2018 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
2nd Year Abatement |
| 2019 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
3rd Year Abatement |
| 2020 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
4th Year Abatement |
| 2021 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
5th Year Abatement |
| 2022 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
6th Year Abatement |
| 2023 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
7th Year Abatement |
| 2024 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
8th Year Abatement |
| 2025 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
9th Year Abatement |
| 2026 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
10th Year Abatement |
| 2027 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
11th Year Abatement |
| 2028 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
12th Year Abatement |
| 2029 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
13th Year Abatement |
| 2030 |
$1,440,000 |
$91,622 |
$50,131 |
$41,491 |
14th Year Abatement |
| TOTALS |
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$1,282,712 |
$701,834 |
$580,878 |
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| Expected # of jobs to be created within 2 years of completion: |
27 |
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| Expected # of jobs to be retained as a result of this project: |
278 |
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| City's Current Abatement Ratio (including this application): |
14.13% |
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| Proposed TOTAL Taxes to be Abated over Life of Certificate: |
$580,878 |
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Real |
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| Full Millage* |
63.6266 |
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Submitted by: |
Steven Hudson, MMAO 4 |
| IFT Millage* |
34.8132 |
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City Assessor |
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| *New personal property became exempt in 2016 |
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| *does not include 1% administrative fee |
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| ANALYSIS IS FOR ILLUSTRATIVE PURPOSES ONLY |
| ACTUAL AMOUNT AND DURATION OF INCENTIVE SUBJECT TO CITY COMMISSION APPROVAL |
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HISTORY, BACKGROUND and DISCUSSION
| This resolution schedules a public hearing on the attached Industrial Facilities Tax Exemption application from Asmo Manufacturing Inc.
| DISCUSSION OF THE ISSUE
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| POSITIONS
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