Item Coversheet

Resolution

NO. 78

A Resolution approving an Industrial Facilities Exemption Certificate on behalf of WKW Roof Rail Systems LLC for real and tangible personal property located at 215 N. Hill Brady Road in Industrial District No. 2, and having an estimated cost of $54,491,210.

BATTLE CREEK, MICHIGAN - 2/3/2015

Resolved by the Commission of the City of Battle Creek:

 

On December 30, 2014, an application was submitted on behalf of WKW Roof Rail Systems LLC for an Industrial Facilities Tax Exemption Certificate under Act 198 of the Public Acts of 1974, as amended, with respect to certain industrial property set forth in the application located within the boundaries of Industrial Development District No. 2 established by Resolution December 2, 1975; and

 

After notice was given as required by law, the City Commission of the City of Battle Creek held a public hearing on the 3rd of February at 7:00 PM and the opportunity to be heard was offered to the Assessor and representatives of all taxing units affected by the application referred to above, as well as to all other interested parties; and

 

It appears to this Commission that the application filed on behalf of WKW Roof Rail Systems LLC for an Industrial Facilities Tax Exemption Certificate with respect to the property described in it complies in all respects with the requirements of the Act; and the WKW Roof Rail Systems LLC complies with the City’s Equal Employment Opportunity Policy; and now

 

1. The Commission determines that the granting of this Industrial Facilities Tax Exemption Certificate required by the application of WKW Roof Rail Systems LLC is in keeping with the Commission’s policy in granting these certificates, effective on June 10, 1986.

 

2. The Commission determines that the granting of this Industrial Facilities Tax Exemption Certificate requested by WKW Roof Rail Systems LLC together with all other Industrial Facilities Exemption Certificates presently in effect, will not have the effect of substantially impeding the operation of the City of Battle Creek and will not impair the financial soundness of any taxing unit which levies ad valorem property taxes in the City of Battle Creek.

 

3. The application of WKW Roof Rail Systems LLC for an Industrial Facilities Tax Exemption Certificate with respect to the property described in it has an estimated cost of $54,491,210 for real and tangible personal property and is approved for twelve (12) years after completion.

 

4. The Commission determines that the facilities, which are subject to the previously mentioned application, were not installed more than six months prior to filing of the application and will be completed in not more than two years.

 

5.   The aggregate SEV of real and personal property exempt from ad valorem taxes within the City of Battle Creek after granting this certificate will exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted.

 

6. The application of WKW Roof Rail Systems LLC together with all other pertinent documents as required by the Act, including proper evidence of this Commission’s approval of the application shall be forwarded to the Michigan State Tax Commission by the City Clerk in accordance with the requirements of this Act.









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 February 3, 2015.


Victoria Houser


Battle Creek City Commission
2/3/2015
Action Summary

Staff Member: Steven M. Hudson 
Department:Assessing 
SUMMARY 
A Resolution approving an Industrial Facilities Exemption Certificate on behalf of WKW Roof Rail Systems LLC for real and tangible personal property located at 215 N. Hill Brady Road in Industrial District No. 2, and having an estimated cost of $54,491,210.
BUDGETARY CONSIDERATIONS
           
CITY OF BATTLE CREEK
Assessor's Application Review & Tax Analysis for Industrial Facilities Tax Exemption Request
   
Applicant:     WKW ROOF RAIL SYSTEMS, LLC
Location of Facility:   215 N. Hill Brady Road  
Application Filed:   12/30/2014    
Industrial Development District: IDD No. 2    
Special District(s) Containing Facility: TIFA    
Type of Facility:   NEW    
Description of Facility:        
Real property improvements include converting an existing building used as warehouse to an industrial automotive supply components facility.  Equipment purchases will enable production and assembly of manufactured parts.
Property Type Estimated Investment Construction Begins Construction Ends # of Years Eligible Abatement Ends
Real $4,634,497 7/18/2014 12/30/2016 12 12/30/2027
Personal* $49,856,713 7/18/2014 12/30/2016 12 12/30/2027
Total: $54,491,210 NOTE:  Abatement ends 12 years after project completion.
           
ESTIMATED PROPERTY TAXES OVER LIFE OF CERTIFICATE
Tax Year Taxable Taxes Without Taxes With Taxes Abatement Years
Value Abatement Abatement Abated
2015 $1,287,284 $45,422 $24,834 $20,588 1st Year Abatement
2016 $2,317,249 $163,811 $89,629 $74,182 2nd Year Abatement
2017 $2,317,249 $163,811 $89,629 $74,182 3rd Year Abatement
2018 $2,317,249 $163,811 $89,629 $74,182 4th Year Abatement
2019 $2,317,249 $163,811 $89,629 $74,182 5th Year Abatement
2020 $2,317,249 $163,811 $89,629 $74,182 6th Year Abatement
2021 $2,317,249 $163,811 $89,629 $74,182 7th Year Abatement
2022 $2,317,249 $163,811 $89,629 $74,182 8th Year Abatement
2023 $2,317,249 $163,811 $89,629 $74,182 9th Year Abatement
2024 $2,317,249 $163,811 $89,629 $74,182 10th Year Abatement
2025 $2,317,249 $163,811 $89,629 $74,182 11th Year Abatement
2026 $2,317,249 $163,811 $89,629 $74,182 12th Year Abatement
2027 $2,317,249 $163,811 $89,629 $74,182 13th Year Abatement
TOTALS   $2,011,154 $1,100,381 $910,772  
           
Expected # of jobs to be created within 2 years of completion: 186  
Expected # of jobs to be retained as a result of this project: 19  
City's Current Abatement Ratio (including this application): 21.22%  
Proposed TOTAL Taxes to be Abated over Life of Certificate: $910,772  
           
  Real Personal  
   Full Millage** 63.6266 39.6266 Submitted by: Steven Hudson, MMAO 4
   IFT Millage** 34.8132 19.8132 City Assessor  
*New personal property becomes exempt in 2016  
**Does not include 1% administrative fee  
   
ANALYSIS IS FOR ILLUSTRATIVE PURPOSES ONLY
ACTUAL AMOUNT AND DURATION OF INCENTIVE SUBJECT TO CITY COMMISSION APPROVAL

HISTORY, BACKGROUND and  DISCUSSION
This resolution approves a new Industrial Facilities Tax Exemption for WKW Roof Rail Systems LLC.
DISCUSSION OF THE ISSUE

POSITIONS

ATTACHMENTS:
File NameDescription
WKW_IFT_Application_12-30-14.pdfWKW Roof Rail System LLC IFT Application
Resolution_64_Setting_Public_Hearing_for_WKW_Roof_Rail_Systems_LLC.pdfResolution 64 Setting Public Hearing For WKW IFT Application