HomeMy WebLinkAbout1170 Chapter 100 Bonds Premium Waters BILL NO. 2012- 078 ORDINANCE NO. ��
AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
FOR PREMIUM WATERS, INC.
WHEREAS, the City of Riverside, Missouri, a fourth-class city and political subdivision of
the State of Missouri (the "City"), is authorized and empowered pursuant to the provisions of
Article VI, Section 27(b) of the Missouri Constitution, as amended, and Sections 100.010 through
100.200, inclusive, of the Revised Statutes of Missouri, as amended (RSMo) (collectively, the
"AcY'), to purchase, construct, extend and improve certain projects (as defined in Section 100.010
RSMo) and to issue industrial development revenue bonds for the purpose of providing funds to
pay the costs of such projects and to lease or otherwise dispose of such projects to private
persons or corporations for manufacturing, commercial, warehousing and industrial development
purposes upon such terms and conditions as the City shall deem advisable; and
WHEREAS, Section 100.050 RSMo requires the City to prepare a plan in connection
with any industrial development project undertaken pursuant to the Act; and
WHEREAS, a Plan for an Industrial Development Project dated November 20, 2012 (the
"Plan") for Premium Waters, Inc., a Minnesota corporation (the "Company"), was prepared and
distributed to the taxing jurisdictions along with notice of a public hearing to be held by the City
on December 18, 2012; and
WHEREAS, on December 18, 2012 the public hearing on the Pian was held by the City;
and
WHEREAS, the Board of Aldermen hereby finds and determines that it is desirable for
the improvement of the economic welfare and development of the City and within the public
purposes of the Act that the City approve the Plan pursuant to the Act; and
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE
CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS:
SECTION 1— APPROVAL OF THE PLAN. The Board of Aldermen hereby finds that:
(a) proper notice as required by the Act was properly given to all taxing jurisdictions regarding
the proposed Plan and (b) it has fairly and duly considered all comments submitted to the Board
of Aldermen regarding the proposed Plan. The Board of Aldermen hereby approve the Plan in
the form of Exhibit A attached hereto.
SECTION 2- FURTHER AUTHORITY. The City shall, and the officials, agents and
employees of the City are hereby authorized to, take such further action, and execute such
other documents, certificates and instruments as may be necessary or desirable to carry out
and comply with the intent of this Ordinance.
SECTION 3- EFFECTIVE DATE. This Ordinance shall be in fuil force and effect from
and after its passage and approval.
BE IT REMEMBERED that the above was read two times by heading only, passed and
approved by a majority of the Board of Aldermen and APPROVED by the Mayor of the City of
Riverside, Missouri, this 18th day of December 2012.
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Kathleen L. Rose, Mayor
ATTEST:
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Robir� Littrell, City Clerk
� ' �
' APPRO D AS TO FORM:
' c ro son, City Attorney
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NOTICE TO TAXING NRISDICTIONS ON ATTACHED LIST
Re: Notice of Public Hearing — Premium Waters, Inc. Project
On behalf of the City of Riverside, Missouri ("City"), please find enclosed a copy of the
proposed Plan for an Industrial Development Project ("Plad') for Premium Waters, Inc.
("Company"), which also contains a Cost Benefit Analysis on the affected taxingjurisdictions.
It is anticipated that the Company will make payments in lieu of ta�ces for each year that any real
property is owned by the City in amount equal to 100% of the property taxes that otherwise
would have been payable on such real property and such payments in lieu of taxes will be
captured and applied in accordance with the L-385 Levee Redevelopment Plan thru 2029.
It is anticipated that the Company or the lessee of the personal property will make payments in
lieu of taxes for each year that any personal property is owned by the City in an amount equal to
75% of the property taxes that otherwise would have been payable on such personal property.
It is anticipated that the personal property constituting a paR of the Project will be exempt from
state and local sales taxes.
Tbe City anticipates considering an Ordinance to approve the Plan at its regular meeting on
Tuesday, December 18, 2012 at 7:00 PM at City Hall located at 2950 N.W. Vivion Road,
Riverside, Missouri. The Plan, if approved, consists of acquiring, purchasing, equipping and
installing additional machinery and equipment for the Company's facility generally located at
4301 NW Mattox Road in the City of Riverside, Missouri, for industrial development purposes as
further described in the attached Plan.
The City invites all affected taxing districts to attend the meeting on December 18, 2012 and to
make oral comments on the proposed Plan to the City or to provide written comments to the City
on the Plan prior to the meeting. All comments of the taxing districts will be fairly and duly
considered by the City.
A copy of the Plan and Cost Benefit Analysis for the proposed project is enclosed and also will be
on file in the o�ce of the City Clerk and will be available for public inspection during normal
business hours.
Any questions should be directed to Mike Duffy, Director of Community Development for the
Ciry at(816)741-3993.
Dated: November 20, 2012
CITY OF RIVERSIDE, MISSOURI
2950N.W. Vivion Road
Riverside, Missouri 64150
Citv of Riverside Park Hill School District R-V
Donna Resz, Director of Finance Dr. Scott Springston
2950 N.W. Vivion Road 7703 NW Barry Road
Riverside, MO 64150 Kansas Ciry, MO 64153
Platte Coun[y Board of Services for the Tri-County Mental Health Services, Inc.
Developmentally Disabled 3100 NE 83` Street, Suite 100]
Janice Tilman, Executive Directoc Kansas City, MO 64119-9998
7900 NW 106�' Street
Kansas City, MO 64153
Metropolitan Community College Mid Continent Public Library
Dr. Mazk James, Chancelloi Steven V. Potter, D'uectoi
3200 Broadway 15616 E. Highway 24
Kansas City, MO 64111 Independence, MO 64050-2057
Missouri Department of Revenue Missouri Department of Revenue
Blind Pension Fund Tax Adminish�arion Bureau
Brian Kinlcade, Interim Director 301 West High Sh
221 West High Street Jefferson City, MO 65101
Jefferson City, MO 65102
Platte County Platte County Assessor
Jason Brown, Presiding Commissioner David Christian
415 Third Street, Suite 105 41 � Third Street, Suite 20
Platte City, MO 64079 Platte City, MO 64079
Platte County Collector Revenue Missouri Department of Ewnomic Development
Sheila Palmer Chris Pieper, Acring Director
415 Third Street, Suite 40 301 West High Sheet
Platte Ciry, MO 64079 Jefferson City, MO 65102
Parkville Special Road District Senior Citizens Tax Authoriry
7101 NW Hampton Road 11724 NW Plaza Circle, Suite 600
Parkville, MO 64152 Kansas City, MO 64153
Platte County Health Department Riverside Quindaro Bend Levee District
212 Marshall Road 4330 N Belgium Avenue
Platte Ciry, MO 64079 Riverside, MO 64150
BEFORETHE
BOARD OFALDERMEN
OF
CITY OF RIVERSIDE, MISSOURI
PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
FOR
PREMIUM WATERS, INC.
NOVEMBER 20, 2012
PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR
PREMIiJM WATERS, INC.
TO: BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI
On February 7, 2012 the Board of Aldermen of the City of Riverside, Missouri (the "City") approved
Ordinance No. 1098 that approved a Plan of Industrial Development dated December 29, 2011 (the
"Original Plad') for Premium Waters, Inc., a Minnesota corporation (the "Company") for the purpose of
providing financing to acquire, construct, improve, purchase, equip and install an approximately 165,000
square feet of industrial building consisting of approximately 158,500 square feet of manufacturing space
and approximately 6,500 square feet of office space to be located on approximately 14.4 acres generally
located at 4301 NW Mattox Road in the Ciry of Riverside, Missouri, for industrial development purposes
(the "Original ProjecY').
The Company has proposed this plan for an industrial development project as described herein to the
City, for approval, to be carried out pursuant to Article VI, Section 27(b) of the Missouri Constimtion, as
amended, Sections 100.010 to 100.200, inclusive, of the Missouri Revised Statutes, as amended, and in
support of said application submits the following:
1. Description of the Proiect. The Project consists of acquiring purchasing, equipping and
installing additional machinery and equipment to be installed at the Original Project for
industrial development purposes (the "Project").
2. Estimate of the Cost of the Proiect. The total aggregaCe cost of the Project is estimated to
be $4,400,000.
3. Source of Funds to be Exoended for the Proiect. The source of funds to be expended for
the Project will be the proceeds of $4,400,000 estimated aggregate principal amount of
Taxable Industrial Revenue Bonds, Series 2013 (the `Bonds") to be issued by the City for
the Project in multiple series.
4. Statement of the Terms Unon Which the Proiect is to be Leased and Otherwise
Disposed of bv the Citv. The land and building portion of the Project will be leased (with
an option to purchase) to the Company, its affiliate or an assignee. The personal property
portion of the Project will be leased (with an option to purohase) to the Company, its affiliate
or the Company's equipment lender. The lease payments collectively will equal the
principal and interest on the Bonds plus the payments in lieu of taxes. The Bonds will be
payable solely from the revenues derived by the City from the leases or other disposition of
the Project and the Bonds will not be an indebtedness or general obligation, debt or liabiliry
of the City.
5. General Information Concernine the Companv. The Company is a Minnesota
corporation. The principal business of the Company is Yhe manufacture and sale of bottled
water.
6. Bond Purchase Arran2ements. It is expected that the Company, an affiliate of the
Company or the Company's lender will purchase the Bonds.
7. Affected School District, Communitv Colle2e District, Countv and Citv. The Park Hill,
Missouri R-V School District, the Metropolitan Junior College District of Kansas City,
Platte County, Missouri and the City will be affected by the Project.
8. Equalized Assessed Valuation. The most recent equalized assessed valuation of all of the
real property to be included in the Project is $-0. The estimated total equalized assessed
valuation after construction of the Project for real property to be included in the Project is
$3,555,200 and for personal property is $5,927,400.
9. CostBenefit Analvsis. Attached hereto as Exhibit A is the cosUbenefit analysis on each
affected school district, Platte County, Missouri, the City and the other affected taxing
jurisdictions, which assumes no tax abatement for real property since the Company will
make payments in lieu of taxes and such payments in lieu of taxes will be captured and
applied in accordance with the L-385 Levee Redevelopment Plan thru 2029.
10. Pavments in Lieu of Taxes. It is anticipated that the Company will make payments in lieu
of taxes for each year that any real property is owned by the City in amount equal to 100%
of the property taxes that otherwise would have been payable on such real property and such
payments in lieu of taxes will be captured and applied in accordance with the L-385 Levee
Redevelopment Plan thru 2029.
It is anticipated that the Company or the lessee of the persona] property will make payments
in lieu of taxes for each year that any personal property is owned by the City in an amount
equal to 75% of the property taxes that otherwise would have been payable on such personal
propeRy.
11. Sales Tax Exemution on Construction Materials and Personal Prouertv. It is anticipated
that the construction materials used to construct the Project and personal property
constituting a part of the Project will be exempt from state and local sales taxes.
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EXHIBIT A
City of Riverside, Missouri
(Premium Waters, Inc.)
COST BENEFIT ANALYSIS
PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT
; %i
GILMO�E BELL
Table of Contents
I Project Assumptions 1
II Summary 2
D Projected Tax Revenues Without Abatement (Personal Property) 3
IV Projected Tax Abatement (Personal Property) 4
V Present Value of Abatement for Personal Property 5
VI Projected PILOT Amount (Personal Property) 6
Ciry of Riversidg Missourr
Premium Waters, /nc.
Cos( Bettefit Analysis IIQD/Z012
� Project Assumptions
• Initiel year taxes assesscd 2013
• Appraised value of personal property $4,398,069
• Assessed value as a percentage of appraised value personal property 333%
• Abatement period for personal property only Years 1- 10
Percentage abatement for personal property 25%
• Total abaLemem (Personal Property) $ 94,00837
• Present Value to 12/1/2012 of Personal Property Abatement $ 88,02124
• Depreciation Schedule
Class Life
Year 7 5 3
0 ]00.00% 100.00% 100%
1 89.29% 85.00% 75%
2 70.16% 59.�0% 38%
3 55.13% 41.6�% 5%
4 42.88°/a 24.99% 5%
5 30.63°/a ]0.00% 5%
6 1838% 10.00% 5%
7 10.00% ]0.00% 5%
8 10.00% 10.00% 5%
9 10.00% 10.00% 5%
10 ]0.00% 10.00% 5%
City ofRiverside, Missouri
Premrum Wnters, /nc.
Cos( BenefitAnal��sis -1 - 11/20/2012
Summary of Tax [mpact Analysis
( Personal Property)
Revenue
Tax Revenue for Value of Generated
Personal Property Abatement from
Without for Personal PILOT
Taxing Jurisdiction A Property Payments*
StateofMissouri $1,702 $426 $1,277
Platte County, Missouri 567 142 426
Health Center 4,539 1,135 3,404
Board of Services for the
Developmentally Disabled 7,376 1,844 5,532
Clay-Platte-Ray Mental Health 5,674 1,419 4,256
Mid-Continent Public Library
District 18,157 4,539 13,618
Senior Citizens Services Fund 2,837 709 2,128
Park Hill R-V 307,151 76,788 230,363
Parkville Special Road District 14,781 3,695 ll,086
Metropolitan Junior College
District af K.C. 13,249 3,312 9,937
$376,033 $94,008 $282,025
'Personal pmpety PILOTs
City ojRiverside, Missouri
Premium Waters, /nc.
Cos( Benefit Analysis -Z - 1lRO/2012
e.oien=a ru a..��w w�mom nmmm�i
(PObouJ Pmperly) ,
G� JA dVl fPOSannlPmcnv S 1�6<559 E 1259629 S 913861 E bJSfl) E 4)1614 5 ]04910 S 209"1@ 3 U6J�3 E 1J69W 3 136,10]
lixinglunedinl les Nsi< Ocr8100 y013 301f RU�S 3016 2U1] IUIB SU19 3030 2UE1 3022 9'oul
9a¢ ofMlssoun � 0 dJOa S 43Y 5 3]8 S 94 S le4 8 141 S YI S 61 S JI E 41 5 41 S 1,903
YIaVC Counry,Mlssoun ODI00 146 126 91 65 C9 }p 20 14 14 14 SW
41ea1ihCmmv 00800 I I)2 Ip08 931 51] 9]9 2<4 16G 109 109 109 4,SJ9
Roaedo�ServimsCOr�heDCVelopmcniellyDlsabled 0p00 I904 1,618 I,INB %39 613 396 366 19) 199 1I9 '1,I90
Clay-Pla��e-Ray Mcnlal Hulth OJ000 I G65 I 260 914 646 492 305 205 Ufi 136 U6 5,6"14
Mld-COn�inanPUblicLlbmryDistnct 03200 4,fi8] 4,OI1 2,924 2,066 1,509 9]6 555 436 4]6 436 I8,15]
SenlorCi�izensSemccsFund 00500 ]32 bJ0 45] 343 2J6 152 102 68 69 6B 3,83]
ParkHillR-V 5413I )9,281 68,186 49,090 34,956 25,5J0 16,506 IIOB6 J,J98 ]3�8 ]398 309,15�
Varkv111e5panalROeEDisvin D.Y605 i815 3,281 2,JBI 1682 1119 ]94 543 J55 355 355 I4]81
MetmpoGmnlmtiorCollegeDisinccaCKC 0.P335 3,420 3941 2,134 1508 I,101 J12 4J8 318 318 318 13,249
PmjenedTexRwcnucswi[hwvAbammmt 6b2➢ S 9]061 S 83499 S 60,564 E 42]95 S 11255 Y 20,20] S 13,5]2 E 9,0}3 S 9,03] S 9,031 $ 3]6,0]3
No�indudinyinstallation._..
3yorPmpntyEelimilGdAfseseAVelue E 609,800 2d3,063 152,298 9fi,IC9 I415) IQI53 10,153 IOJfl 10,153 IO,ISI IO,IS3
SYmrProperlyEs�imilMbxnseJV�lue S 1}J3,933 944,199 3]J,569 2fi4,299 185,009 II1005 44,420 44,@0 44420 44,420 44,420
9-YenrProperlyES�ima�eJAVOSedVdue S 3A5A,33t dl),294 )?9,]M12 5)3,414 450,5"I4 J50,456 250,D] 150,219 %I)29 81]29 81,)29
I J64.55] 1,359 Q9 913,861 645 D] p>I (�I4 )OJ,910 2U0,"192 136,JO1 136,303 13fi lOJ
C'%o/ti.mJt Muvun
�mee. n.N.� -i. iinwte�l
Pmjec�ed Taz Abatemeot
(Personal Properry�) •
Lstimatcd Assessed Value of Versonal Pmpeny S 1,464,557 $ 1 259,629 S 913,861 $ 645,737 $ 471,614 $ 304,910 $ 204 792 $ 136,303 $ 136,303 S 136,303
Abateme ntPementage 25% 25% 25% 25'Yo 25% 25% 25% 25% 25% 25%
'iax Ratc per
Taxinglurisdiction $100 20I3 2014 2015 20t6 2017 2018 2019 2020 2021 2022 'Polal
Stateo(Missoun OU300 $ 110 $ 94 $ 69 S 48 S 35 $ 23 $ IS $ 10 $ 10 $ 10 S 426
Pla[teCounty,Missouri 00100 37 31 23 16 12 8 5 3 3 3 142
F1ealthCenter 0.0800 293 252 IA3 12� 94 6I 41 27 27 27 1,135
Board of Scrvices for �he Developc Q 1300 476 409 297 210 153 99 67 44 44 44 1,844
Clay-Platte-RayMentalHealth 0.1000 366 315 228 161 IIS 76 51 34 34 34 1,419
Mid-ContfnentPublfcLbcaryDist 03200 1,172 1,008 731 517 377 244 164 109 109 109 4,539
SenforCitizens Services Fund OD500 183 157 114 81 59 38 26 19 17 17 709
ParkHfllR-V 54i33 IQ820 17,047 12,368 8,739 6,382 4,126 2,771 1,845 1,845 1,845 76,788
Parkville Special Road District 02605 954 820 595 421 307 199 133 89 89 89 3,695
Metmpolitan Junior College Distri� 01 R 55 735 533 377 275 178 120 80 80 80 3,312
Pmjectcd Tu Abatement (i 6273 S 24,265 S 2Q870 $ 15,141 S I Q699 $ 7,814 S 5,052 $ 3,393 $ 2,258 $ 2,258 $ 2.258 S 94,008
<'iry IRiverzide.Muto�rl
Remiww Warrrs.Ik
Co.rlBUl Awu(ysu -J- . IIRNSOII
Presem Value of Abafement Benell tor Personal Yroperty
. Present ValueJ �0 12AR012
Uiscounl Rate': 2.OSODU%
Computa�ion Date: 12/1R012
Prcsent Velue to
Aba�emenl for Days Present I2/12012
Personal From Velue at
Da�e Property 12/U2012 Factor 2.05000%
12/1/2013 24,265 360 097981093 23,77526
12/U2014 2Q870 920 0.96002947 2Q035.67
12/V2015 15,147 1,080 0.94064737 74,242.42
12/I/2016 1Q699 1,440 0-92165658 9,86055
12/12017 7,814 1,800 090304919 7,05627
12/I/201R 5,052 2,160 0.88481747 4,469.95
12/I/2019 3,393 2,520 0.86695384 2,941.61
12/Il2020 2,258 2,880 0 ft4945085 1,91837
12/i/2021 2,258 3240 0.83230123 1,879.58
12/I/2022 2,258 3,600 0.81549784 1,841.63
$94,008 Present Value'. $88.02L24
' 10-Ycar l�reasury Ratc
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co.�ee lu.a�M+� -s' iirzorzoia
PmjmteA PII,OT Amoum
(Realand Personal Property) .
EstimatedAsscssedValueofPersunalProperty $1464,557 $125Q629 $ 9138fi1 3 645,73"7 $ 471614 $ 304910 5 204,792 $ I36,303 S 136,303 $ 136703
PersonalPmpenyPILOT " 15% 75% 75% "75% 75°r6 75% 75% 75% 75% 75%
fan Rate
TaxingJwisdiction perS100 2013 201d 2U15 2U16 2017 2018 2019 202U 2021 2U22 To�al
S[me ofMissoun 0.0300 $ 3i0 5 283 $ 206 S 145 $ IU6 S 69 5 4fi $ 31 S 31 $ 31 $ 1 277
PlatteCowty,Missouri ODI00 I10 94 69 48 3S 23 IS IO 10 10 426
Ilealth Cente� OA800 S79 756 548 387 2S3 I83 123 S2 82 82 3,404
BoardofServicesfortheDevelopn O.I300 1428 7?28 891 630 460 297 200 133 733 I33 5,532
Clay-Platte-RayMentalHealth 0.7000 1,098 945 685 484 354 229 154 102 102 102 4,256
MidLontinentPublfcLibraryDisn 03200 3,515 3,023 2,193 1,550 1,132 732 492 327 327 327 73,618
SeniorCitizens5ervicesFund OA500 549 472 343 24? 177 114 77 SI 51 51 2,128
ParkHillR-V 54133 59,461 51,141 37,103 26,2I7 19,147 12,379 8,314 5534 5,534 5,534 230,3b3
Parkville Special Road District 02605 2,861 2,461 1 785 I 2G2 921 596 400 266 266 266 I7 086
Metwpolitan7unforCollegeDistnc 0333 2,565 2,206 1,600 1,131 826 534 359 239 239 239 9937
ProjecledPlLO'T 6.fi273 S 72,795 $ 62610 $ 45,423 $ 32,096 $ 23441 E 15��55 $ 10,779 5 6,775 E 6,775 S 6,775 S 282,025
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