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| Resolution | NO. 207 |
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| | | | | | | | | A Resolution amending an Industrial Facilities Exemption Certificate on behalf of Nexthermal Corporation for real and tangible personal property located at 1045 Harts Lake Road in Industrial District No. 2, and having an estimated cost of $1,276,250. | | | |
| | | | | | | | | BATTLE CREEK, MICHIGAN - 9/1/2015 | | | |
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Resolved by the Commission of the City of Battle Creek:
On May 8, 2015, an application was submitted on behalf of Nexthermal Corporation 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 345, 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 16th of June 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 Nexthermal Corporation 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 Nexthermal Corporation 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 Nexthermal Corporation 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 Nexthermal Corporation 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 Nexthermal Corporation for an Industrial Facilities Tax Exemption Certificate with respect to the property described in it has an estimated cost of $1,276,250 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 Nexthermal Corporation 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 September 1, 2015.
Victoria Houser
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| | | | | | | | | Battle Creek City Commission
9/1/2015
Action Summary | | | |
| | | | | | | | | | Staff Member: | Steven M. Hudson | | Department: | Assessing |
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| | | | | | | | | SUMMARY
| A Resolution amending an Industrial Facilities Exemption Certificate on behalf of Nexthermal Corporation for real and tangible personal property located at 1045 Harts Lake Road in Industrial District No. 2, and having an estimated cost of $1,276,250.
| 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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NEXTHERMAL CORPORATION |
| Location of Facility: |
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1045 Harts Lake Road |
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| Application Filed: |
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5/8/2015 |
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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 10,000 square feet to existing building to accommodate new production line. |
| Property Type |
Estimated Investment |
Construction Begins |
Construction Ends |
# of Years Eligible |
Abatement Ends |
| Real |
$909,745 |
1/14/2015 |
1/14/2017 |
12 |
12/30/2029 |
| Personal* |
$366,505 |
1/14/2015 |
1/14/2017 |
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| Total: |
$1,276,250 |
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 |
| 2016 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
1st Year Abatement |
| 2017 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
2nd Year Abatement |
| 2018 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
3rd Year Abatement |
| 2019 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
4th Year Abatement |
| 2020 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
5th Year Abatement |
| 2021 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
6th Year Abatement |
| 2022 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
7th Year Abatement |
| 2023 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
8th Year Abatement |
| 2024 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
9th Year Abatement |
| 2025 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
10th Year Abatement |
| 2026 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
11th Year Abatement |
| 2027 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
12th Year Abatement |
| 2028 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
13th Year Abatement |
| 2029 |
$454,900 |
$28,944 |
$15,837 |
$13,107 |
14th Year Abatement |
| TOTALS |
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$405,212 |
$221,711 |
$183,501 |
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| Expected # of jobs to be created within 2 years of completion: |
10 |
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| Expected # of jobs to be retained as a result of this project: |
94 |
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| City's Current Abatement Ratio (including this application): |
15.24% |
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| Proposed TOTAL Taxes to be Abated over Life of Certificate: |
$183,501 |
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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 becomes 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
| On May 8, 2015, Nexthermal Corporation applied for an IFT abatement for an investment of both real and personal property. Recent legislation exempted any new industrial personal property for 2016. Because the applicant would receive no additional benefit from an abatement on the personal property, Resolution 165 passed by the Commission on June 16th addressed only the real property portion of the abatement.
The Clerk's office was notified by the State that because the application requested both a real and personal property abatement, both portions would have to be addressed. The Commission must approve or deny the personal property abatement request.
This resolution amends Resolution 165 of June 16, 2015 to include approval of both the real and personal property components of the application.
| DISCUSSION OF THE ISSUE
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| POSITIONS
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