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HomeMy WebLinkAbout1349 Approving Plan for IDA Project Babra, LLC BILL NO. 2014-082 ORDINANCE NO. 130 AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR BABRA, LLC 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 "Act'), 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 September 4, 2014 (the "Plan") for BABRA, LLC, a Missouri limited liability company (the "Company"), was prepared and distributed to the taxing jurisdictions along with notice of a public hearing to be held by the City on October 7, 2014; and WHEREAS, on October 7, 2014 the public hearing on the Plan 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 full 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 7th day of October, 2014. d � Kathleen L. Rose, Mayor ATTEST: Robin,Littrep, Git Clerk -2- EXHIBIT A -3- BEFORE THE BOARD OF ALDERMEN OF CITY OF RIVERSIDE,MISSOURI PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR BABRA,LLC September 4,2014 PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR BABRA,LLC TO: BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE,MISSOURI BABRA, LLC, a Missouri limited liability company(the "Company")has proposed this plan for an industrial development project as described herein to City of Riverside, Missouri (the "City"), for approval,to be carred out pursuant to Article VI, Section 27(b)of the Missouri Constitution, 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 Project. The Project consists of acquiring, constructing, improving purchasing, equipping and installing an approximately 245,000 square foot industrial building to be located on approximately 14.285 acres to be located at 4106 Mattox Road, in the City of Riverside,Missouri, for industrial development purposes(the"Project"). 2. Estimate of the Cost of the Project. The total aggregate construction cost of the Project is estimated to be$14,000,000. 3. Source of Funds to be Expended for the Project. The source of funds to be expended for the Project will be the proceeds of$14,000,000 estimated aggregate principal amount of Taxable Industrial Revenue Bonds (the "Bonds") to be issued by the City for the Project. 4. Statement of the Terms Upon Which the Project is to be Leased and Otherwise Disposed of by the City. The Project will be leased (with an option to purchase) to the Company, its affiliate or an assignee. 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 lease or other disposition of the Project and the Bonds will not be an indebtedness or general obligation, debt or liability of the City. 5. General Information Concernine the Company. The Company is a Missouri limited liability company. The principal business of the Company is development of commercial real estate. 6. Bond Purchase Arraneements. It is expected that the Company, an affiliate of the Company or the Company's lender will purchase the Bonds. 7. Affected School District, Community Colleee District. County and City. 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 $103,377. The estimated total equalized assessed valuation after construction of the Project for real property to be included in the Project is$4,566,210. 9. Cost/Benefit Analysis. Attached hereto as Exhibit A is the cost/benefit 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. Payments in Lieu of Taxes. It is anticipated that the Company will make a payments in lieu of taxes for each year that any real property is owned by the City in amount equal to the property taxes that otherwise would have been payable on such real property and such payments in lieu of taxes will be captured such payments in lieu of taxes will be captured and applied in accordance with the L-385 Levee Redevelopment Plan thru 2029. 11. Sales Tax Exemption on Construction Materials. It is anticipated that the construction materials used to construct the Project will be exempt from state and local sales taxes. -2- EXHIBIT A COSTBENEFIT ANALYSIS Since the Chapter 100 Bonds will be issued by the City solely for the purpose of granting the sales tax exemption on construction materials for the benefit of the Company, there will be no real property tax abatement. However, since the City will own title to the projects during construction, the property will be exempt from property tax during such time of City ownership, but the property owner will be required to make Payments in Lieu of Taxes(PILOTS)equal to 100% of the property taxes that otherwise would be payable on such real property.