Item Coversheet

Resolution

NO. 57

A Resolution setting a Public Hearing For Prairie Farms Dairy, Inc., Industrial Facilities Exemption Application.

BATTLE CREEK, MICHIGAN - 1/2/2018

Resolved by the Commission of the City of Battle Creek:

That a Public Hearing is set  for 7:00 PM, January 16, 2018, on a proposed Industrial Facilities Exemption (IFE) Certificate at the request of Prairie Farms Dairy, Inc. for real property located at 126 Brady Road in Industrial Development District No. 2.

The City of Battle Creek has received an application for an Industrial Facilities Exemption Certificate under the provisions of Act 198 of the Public Acts of 1974, as amended, from Prairie Farms Dairy, Inc. with respect to a facility located within Industrial Development District No. 2; and

 

1.  The City Commission of the City of Battle Creek shall hold a hearing on January 16, 2018, 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 real 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 January 2, 2018.


Victoria Houser


Battle Creek City Commission
1/2/2018
Action Summary

Staff Member: Steven M. Hudson 
Department:Assessing 
SUMMARY 
A Resolution setting a Public Hearing For Prairie Farms Dairy, Inc., Industrial Facilities Exemption Application.
BUDGETARY CONSIDERATIONS
CITY OF BATTLE CREEK
Assessor's Application Review & Tax Analysis for Industrial Facilities Tax Exemption Request
Applicant: Prairie Farms Dairy, Inc.
Location of Facility: 126 Brady Road
Application Filed: 12/14/2017
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 14,000 square foot facility to support a new Ultra Pasteurization production line.
Property Type Estimated Investment Construction Begins Construction Ends # of Years Eligible Abatement Ends
Real $4,081,465 11/1/2017 4/30/2018 12 12/30/2031
Personal*
Total: $4,081,465 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 $2,040,700 $130,686 $71,465 $59,221 1st Year Abatement
2019 $2,040,700 $130,686 $71,465 $59,221 2nd Year Abatement
2020 $2,040,700 $130,686 $71,465 $59,221 3rd Year Abatement
2021 $2,040,700 $130,686 $71,465 $59,221 4th Year Abatement
2022 $2,040,700 $130,686 $71,465 $59,221 5th Year Abatement
2023 $2,040,700 $130,686 $71,465 $59,221 6th Year Abatement
2024 $2,040,700 $130,686 $71,465 $59,221 7th Year Abatement
2025 $2,040,700 $130,686 $71,465 $59,221 8th Year Abatement
2026 $2,040,700 $130,686 $71,465 $59,221 9th Year Abatement
2027 $2,040,700 $130,686 $71,465 $59,221 10th Year Abatement
2028 $2,040,700 $130,686 $71,465 $59,221 11th Year Abatement
2029 $2,040,700 $130,686 $71,465 $59,221 12th Year Abatement
2030 $2,040,700 $130,686 $71,465 $59,221 13th Year Abatement
2031 $2,040,700 $130,686 $71,465 $59,221 14th Year Abatement
TOTALS $1,829,599 $1,000,506 $829,093
Expected # of jobs to be created within 2 years of completion: 16
Expected # of jobs to be retained as a result of this project: 150
City's Current Abatement Ratio (including this application): 9.21%
Proposed TOTAL Taxes to be Abated over Life of Certificate: $829,093
Real
Full Millage+ 64.0396 Submitted by: Steven Hudson, MMAO 4
IFT Millage+ 35.0197 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 schedules a public hearing on the attached Industrial Facilities Exemption (IFE) application from Prairie Farms Dairy, Inc.


DISCUSSION OF THE ISSUE

POSITIONS

ATTACHMENTS:
File NameDescription
Prairie_Farms_IFE_Application_12-14-17.pdfPrairie Farms IFE Application 12-14-17