Item Coversheet

Resolution

NO. 188

A Resolution approving an Industrial Facilities Exemption Certificate on behalf of Bowers Aluminum Company for real property located at 1401 Shiga Drive in Industrial District No. 2, and having an estimated cost of $2,420,000.

BATTLE CREEK, MICHIGAN - 9/5/2017

Resolved by the Commission of the City of Battle Creek:

 

On July 28, 2017, an application was submitted on behalf of Bowers Aluminum Company for an Industrial Facilities 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 5th of September 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 Bowers Aluminum Company for an Industrial Facilities Exemption Certificate with respect to the property described in it complies in all respects with the requirements of the Act; and the Bowers Aluminum Company complies with the City’s Equal Employment Opportunity Policy; and now

 

1. The Commission determines that the granting of this Industrial Facilities Exemption Certificate required by the application of Bowers Aluminum Company 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 Exemption Certificate requested by Bowers Aluminum Company 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 Bowers Aluminum Company for an Industrial Facilities Exemption Certificate with respect to the property described in it has an estimated cost of $2,420,000 for real property and is approved for twelve (12) years after completion.

 

4. The Commission determines that the facility, which is subject to the previously mentioned application, did not commence 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 Bowers Aluminum Company 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 5, 2017.


Victoria Houser


Battle Creek City Commission
9/5/2017
Action Summary

Staff Member: Steven M. Hudson 
Department:Assessing 
SUMMARY 
A Resolution approving an Industrial Facilities Exemption Certificate on behalf of Bowers Aluminum Company for real property located at 1401 Shiga Drive in Industrial District No. 2, and having an estimated cost of $2,420,000.
BUDGETARY CONSIDERATIONS
CITY OF BATTLE CREEK
Assessor's Application Review & Tax Analysis for Industrial Facilities Tax Exemption Request
Applicant: Bowers Aluminum Company
Location of Facility: 1401 Shiga Drive
Application Filed: 7/28/2017
Industrial Development District: IDD #2
Special District(s) Containing Facility: BATTLE CREEK TIFA
Type of Facility: NEW
Description of Facility:
Applicant intends to construct a 68,850 square foot facility to be used for anodizing aluminum products
Property Type Estimated Investment Construction Begins Construction Ends # of Years Eligible Abatement Ends
Real $2,420,000 9/18/2017 9/17/2018 12 12/30/2030
Personal*
Total: $2,420,000 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
2018 $400,000 $25,616 $14,008 $11,608 1st Year Abatement
2019 $1,210,000 $77,488 $42,374 $35,114 2nd Year Abatement
2020 $1,210,000 $77,488 $42,374 $35,114 3rd Year Abatement
2021 $1,210,000 $77,488 $42,374 $35,114 4th Year Abatement
2022 $1,210,000 $77,488 $42,374 $35,114 5th Year Abatement
2023 $1,210,000 $77,488 $42,374 $35,114 6th Year Abatement
2024 $1,210,000 $77,488 $42,374 $35,114 7th Year Abatement
2025 $1,210,000 $77,488 $42,374 $35,114 8th Year Abatement
2026 $1,210,000 $77,488 $42,374 $35,114 9th Year Abatement
2027 $1,210,000 $77,488 $42,374 $35,114 10th Year Abatement
2028 $1,210,000 $77,488 $42,374 $35,114 11th Year Abatement
2029 $1,210,000 $77,488 $42,374 $35,114 12th Year Abatement
2030 $1,210,000 $77,488 $42,374 $35,114 13th Year Abatement
TOTALS $955,471 $522,494 $432,977
Expected # of jobs to be created within 2 years of completion: 50
Expected # of jobs to be retained as a result of this project: 0
City's Current Abatement Ratio (including this application): 9.09%
Proposed TOTAL Taxes to be Abated over Life of Certificate: $432,977
Real
Full Millage+ 63.7096 Submitted by: Steven Hudson, MMAO 4
IFT Millage+ 34.8547 City Assessor
*New personal property became 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 Exemption for Bowers Aluminum Company.
DISCUSSION OF THE ISSUE

POSITIONS

ATTACHMENTS:
File NameDescription
Resolution_No._175_8-15-17t.pdfResolution Establishing Public Hearing Bowers IFE
Bowers_Aluminum_Co_IFE_Application_w_attachmnets_7-28-17.pdfBowers Aluminum Co. IFE Application 7-28-17