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HomeMy WebLinkAboutResolution 05-43 06/20/2005 . ATTACHMENT III RESOLUTION NO. 05-43 A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AGREEMENTS WITH LANE COUNTY AND THE UNITED STATES BAKERY TO EXTEND THE PROPERTY TAX EXEMPTION TWO YEARS FOR A NEW BAKERY IN THE GLENWOOD AREA. WHEREAS, the United States Bakery, Inc. could receive a property tax exemption under ORS 285 because it is an eligible business firm, and WHEREAS, the United States Bakery, Inc. agrees (a) to compensate during the entire enterprise zone tax exemption period all new employees at an average rate of not less than 150 percent ($45,474) of Lane County's prevailing average annual wage ($30,316) at the time of applying for authorization; and . (b) to meet any additional requirements that the zone sponsors may reasonably request. WHEREAS, the United States Bakery, Inc. anticipates it will complete construction of its Williams Bakery manufacturing facility in early 2006; WHEREAS, the United States Bakery, Inc. has filed an authorization application form with the Springfield Enterprise Zone Manager; WHEREAS the United States Bakery, Inc. will negotiate a'First Source agreement with the Oregon Employment Division for referring qualified candidates to the United States Bakery, Inc. for new job openings within the Springfield Enterprise Zone until the end of the exemption period; . WHEREAS, the Springfield City Council would like to encourage investment in new Springfield manufacturing and high technology facilities, increase both the number of family wage jobs and the wages paid to its citizens in new economic sectors, assist in the diversification of manufacturing and high technology in the local economy, ensure competitiveness of future Springfield businesses, and provide support for the long-term operation of United States Bakery's Springfield facilities. Resolution #05-43 Page 1 Attachment III-1 . . . NOW THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield as follows: 1. The Springfield City Council, as the governing body of one of the sponsors of the Springfield Enterprise Zone II, approves extending the property tax benefits of the Springfield Enterprise Zone for two years to the United States Bakery, Inc., as requested in Exhibit A and incorporated herein by reference, for a possible $29.975 million project, and 2. The City Manager is authorized to sign agreements with Lane County, the co-sponsor of the Springfield Enterprise Zone II, and the United States Bakery, Inc. to the terms described herein and provided that the United States Bakery, Inc. meets the terms of ORS 285. 3. In return for the extension, the City will require United States Bakery, Inc. to pay the City the equivalent of providing essential public services during the two-year tax-exemption period in the amount of $134,900 for each additional year of exemption. The City and United States Bakery, Inc. will negotiate the payment schedule. 4. This resolution shall take effect upon adoption by the Council and approval by the Mayor. ADOPTED by the Common Council and approved by the Mayor of the City of Springfield, this 20thdayof June, 2005. Adopted by a vote of -L for and ~ against. ~. Mayor ATTEST: Oui-& , ~ City Recorder REVIEWED & APPROVED FO . Resolution #05-43 Page 2 Attachment III - 2 OREGON ENTERPRISE ZONE AUTHORIZATION APPLICATION . aComplete form and submit to the local enterprise zone manager before breaking ground or beginning work at the site. aPlease type or print neatly. Location of Property (street address if different from. above) ZIP Code (N r>. ~l' 5.<: ~ OR Ci'7f(),) Ir,,}~ Map and Tax La Numb r of Site \Y Q~ c:.~ I () Co <::; ~ ConJaa Person .I~D? o~ \2. CO\) <J 0 1Q~ ~ II O~ I~'J /\ OA./{L . ) (j () I \ C 4<X>C:> 01..- II{ ~ O~ II 0\ LCQ )Hi01~ I) Q~(...co 1'6, ?, <l.-" I \ ('), I t. 0 'f' . . th . II' ( ) My firm expects to apply or this property tax exemption In e.o oWing year s : D Check here if your firm has or has had another exemption in this enterprise zone. Note the first year of such exemption: ~Check here jf you are requesting an extended abatement of one or two additional years of ~xemption. This is subject to minimum average annual .compensationafor employees and written agreement with local zone sponsor. Sponsor may request additional requirements. "&J Check here that your firm commits to renew this authorization application. Renew this application on or before April 1 every two calendar years, until the tax exemption on qualified property is claimed. ;r . BUSINESS ELIGIBILITY Eligible Activitya Check all activities that apply to proposed investment within the enterprise zone: ~ Manufacturing D Fabrication D Bulk Printing D ShippingD Agricultural Production D Energy Generation D Assembly D Processing D Software Publishing D Storage D Back-office Systems D Othera describe the activities that provide goods, products, or services to other businesses (or to other operations of your firm): D Check here if your business firm does or will engage in ineligible activities within the enterprise zone (such as retail. sales, health care, professional services, or construction). Describe below (or in an attachment) these activities and how they are physically separate from "eligible activitiesachecked above: Special Casesa Check all that apply: D Check here if a hotel, motel, or destination resort in an applicable enterprise zone. D Check here if a retaillfinancial call center. Indicate expected percent of customers in local caJ/ing area: %. D Check here if a "headquartersa facility. (Zone sponsor must find that operations are statewide or regional in scope and locally signifrcant.) D Check here if an electronic commerce investment in an e-commerce enterprise zone. (This also provides for an income tax credit.) EMPLOYMENT IN THE ENTERPRISE ZONE (see worksheets on last page) Do not count temporary, seasonal, construction, FTE, part-time jobs (32 hours or less per week), or employees working at ineligible operations. Existing Employmenta My business firm's average employment in the zone over the past 12 months is New Employeesa aHiring is expected to begin on (date or month and year): J- ,. aHiring is expected to be completed by (month and year): aEstimated total number of new employees to be hired with this investment is: jobs. A I, k,. 'Ji' f1( '1>-/.iJ "'! L 1 "'t1i1f..-ifi~",.... -- "I~'n Commitmentsa By checking all boxes below, you agree to the following commitments as required by law for authorization: m When the exemption claim is filed by April 1, total employment in the zone each year will not have shrunk by 85 percent at one time or by 50 percent twice in a row, compared to any such previous year's figures. jgJ By April 1 of the first year of exemption on the proposed investment in qualified property, I will increase existing employment within the zone by one new employee or by 10 percent, whichever is greater. . .. ~ My firm will comply with local additional requirements as contained in: (1) a written agreement for an extended agreement, (2) zone sponsor resolution(s) waiving required employment increase, or (3) an urban enterprise zone's adopted policy. 1Xf My firm will verify compliance with the above commitments, as requested by the local zone s~onsor, the county assessor or their representa- tive, or as directed by state forms or administrative rules. ~ My firm will maintain at least either of the above minimum levels as an annual average employment during the exemption period. ~ My firm will enter into a first-source hiring agreement before hiring new eligible employees. (This mandatory agreement entails an obligation to consider referrals from local job training providers for eligible job openings within the zone during at least the exemption period.) 150-303-029IRev.2-04\Web Resolutlon No. U.J-4J - Page 3 OREGON EMPLOYMENT OUTSIDE THE ENTERPRISE ZONE Check only those that,apply:. ..... / .. o Check here if ~our fir.m .or a com~only controlled fir~ is, or will be, closi~g or ~urtailing operations in the.state beyond 30 miles of the zone'~ . boundary. Indicate timing, location, number of any Job losses, and relationship to the proposed enterprise zone investment: . ~ Che~k here if you are transferring any operations into the zone from site~r~32:files Of. the zone boundary (existing businesses only): My fIrm's average employment at the site(s) over the past 12 months is . jobs. .. 'E1 Check here if your firm commits to increase, the combined employment at the site(s) and in the zone to 110 percent of the existing combined level by April 1 and on average during the first year of exemption. PROPOSED INVESTMENT IN ,QUALIFIED PROPERTY Anticip~ted Timing-Enter dates or months/years Site and Building & Structures , Action Preparation Construction* Placed in Service Machinery and Equipment Procurement- Installation Placed in Service , To commence Il. or begin on ~ - \ C:S' D6 To be c:::.. completed on . J/ \ V)--,00 . And/or new reconstruction, additions to, or modifications of existing building(s) or structure(s). ** May precede application by up to three months. Special Issues: o Check here for building/structure acquiredl1eased for which construction, reconstruction, additions, or-modifications began prior to this applica- tion (attach executed lease). o Check here for Work-in-Progress tax exemption for qualified property that is not yet placed in service and is located on site as of January 1. . (Attach description and list of such probable property. See 'Speciallssues Worksheet," on the last page.) Qualifying Property: Estimates of cost (please attach a preliminary list of machinery and equipment). Type of Property 'Number of EacMtem Expected Estimated Cost Check if any (... ,. Ilem will be Leased Building or structure to be newly constructed $\ ":> 'j $ ,ceo Real Property New addition to or modification of an existing building/structure Heavy or affixed machinery and equipment Personal Property $50,000 or more Item(s) Costing: $1,000 or more (E-commerce zone or used exclusively for tangible production) $ Total Estimated Cost of Investment $ &- i 97 (o:J,) Additional Description: In addition to what is explained elsewhere, briefly comment below (or in an attachment) on the scope of your il')Vestment, the particular operations and output that are planned, and the intended uses of the qualifying property. ' DECLARATION I declare under penalties of false swearing [OAS 305.990(4)] that' I have examined this document and attachments, and to the best of my knowledge, they are true. correct, and complete. If any information changes, I will notify the zone manager and the county assessor and submit appropriate written amendments. I understand that my business firm will receive the tax exer:nption for property in the enterprise zone, only if my firm satisfies statutory requirements (OAS Chapter 2858) and complies with all local, Oregon, and federal laws that are applicable to my business. MUST BE SIGNED BY AN OWNER, COMPANY EXECUTIVE, OR AUTHORIZED REPRESENTATIVE OF THE BUSINESS FIRM Signature 41" Date X ; rn tG f..r (J / V ~ " v) Title (if not an owner or exe . attach letter attesting to appropriate contractual authority) c.. H f-f 1"- ,,11"'" -r CwO Local enterprise zone manager and county assessor must approve this application (with Enterprise Zone Authorization Approval, form 150-303-082) 150-303-029 (Rev. 2-04) Web Resolution No. 05-43 - Page 4 . ,of. . . ..... :. . P. Q.80X 14769 315 NE:TENTH AVENUE .. : PORTLAND. OREGON 97232 . , PHONE (503)731-5670 FAX (503) 731-56.80 February 10,2005 TQ'~lb.om It May Conc.ern: Please allow this letter to serve '.as confirmatio:nthat Murrey R.. Albers is United States Bakery's C.E.O. andChainnall of the Board. . . If you have any questions; please don't hesitate to call me (503-731-5671). Thank you. . .: 1. ~ ' Sincerely; ~,qUlt~d,.'S~tat~s B~3kerY ..",., .' "':,', , . " .. , . . , . ^ ......... ...:4 .....\ . .. . ..... ',Keith VanEminerik , Asst., Secretary Resolution No. 05-43 - Page 5 ATTACHMENT II - PAGR .':1