HomeMy WebLinkAbout1405 Industrial Development Project US Farathane LLC BILL NO. 2015-032 ORDINANCE NO. 1405
AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
FOR US FARATHANE 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 March 3, 2015 (the
"Plan") for US Farathane LLC., a Delaware 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 April 21, 2015; and
WHEREAS, on April 21, 2015 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 approves 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 21st day of April, 2015.
Lff&�Z-
Kalfileen L. Rose, May6r
ATTEST: ,
RobirYLittrell, City Clerk
n A P
-2-
EXHIBIT A
-3-
NOTICE TO TA3aNG JURISDICTIONS ON ATTACHED LIST
Re: Notice of Public Hearing—Horizons West Project
On behalf of the City of Riverside, Missouri (the "City"), please find enclosed a copy of the
proposed Plan for an Industrial Development Project for US Farathane LLC ("Plan'), which also
contains a Cost Benefit Analysis on the affected taxing jurisdictions.
The City anticipates considering an Ordinance to approve the Plan at its regular meeting on
Tuesday, April 21, 2015 at 7:00 PM at City Hall located at 2950 N.W. Vivion Road, Riverside,
Missouri. The Plan, if approved, consists of purchasing, equipping and installing certain
personal property in a leased facility containing approximately 221,940 square feet of
industrial building located at 4600 NW 4ff Street in the City of Riverside, for industrial
development purposes as further described in the attached Plan.
The City invites all affected taxing districts to attend the meeting on March April 21,2015 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 office 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
City at(816)741-3993.
Dated: March 30, 2015
CITY OF RIVERSIDE,MISSOURI
2950 N.W.Vivion Road
Riverside,Missouri 64150
cc: Director of Missouri Dept. of Economic Development
City 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 City,MO 64153
Platte County Board of Services for the Tri-County Mental Health Services,Inc.
Developmentally Disabled 3100 NE 83`d Street,Suite 1001
Janice Tilman, Executive Director Kansas City,MO 64119-9998
7900 NW 106"Street
Kansas City,MO 64153
Metropolitan Community College Mid Continent Public Library
Dr. Mark James,Chancellor Steven V. Potter, Director
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 Administration Bureau
Brian Kinkade,Acting Director 301 West Iligh Street
221 West High Street Jefferson City,MO 65101
Jefferson City,MO 65102
Platte County Platte County Assessor
.lesson Brown,Presiding Commissioner David Cox
415 Third Street,Suite 105 415 Third Street,Suite 20
Platte City,MO 64079 Platte City,MO 64079
Platte County Collector Revenue Missouri Department of Economic Development
Sheila Palmer Mike Downing, Director
415 Third Street,Suite 40 301 West High Street
Platte City,MO 64079 Jefferson City,MO 65102
Parkville Special Road District Senior Citizens Tax.Authority
710 t 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 City, MO 64079 Riverside, MO 64150
Clay,Platte,Ray Mental Health Tax Levy Board
3100 NE 83rd Street,Suite 2700
Kansas Citv, MO 64119
I
BEFORE THE
BOARD OF ALDERMEN
OF
CITY OF RIVERSIDE,MISSOURI
PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
(PERSONAL PROPERTY)
FOR
US FARATHANE LLC
MARCH 3,2015
PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR
US FARATHANE LLC
TO: BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE,MISSOURI
US Farathane LLC, a Delaware 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 carried out pursuant to Article Vl, 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 purchasing, equipping and installing
certain personal property in a leased facility containing approximately 221,940 square feet of
industrial building located at 4600 NW 41R Street in the City of Riverside, Missouri, for
industrial development purposes(the"Project").
2. Estimate of the Cost of the Project. The total aggregate cost of the Project is estimated to
be$51,120,000.
3. Source of Funds to be Expended for the Proiect The source of funds to he expended for
the Project will be the proceeds of $51,120,000 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 Projeet is to be Leased and Otherwise
Disposed of by the City. The Project will be leased (with an option to purchase) to the
Company or an affiliate. 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 liability of the City.
5. General Information Concerning the Company. The Company is a Delaware limited
liability company. The principal business of the Company is plastics manufacturing that
supply the automotive industry.
6. Bond Purchase Arrangements. 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. Eaualized Assessed Valuation. The most recent equalized assessed valuation of Project is
$0. The estimated total equalized assessed valuation after completion of the Project for
personal property is$17,066,250.
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.
10. Payments in Lieu of Taxes. 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 25% of the property taxes that
otherwise would have been payable on such personal property.
11. Sales Tax Exemption on Personal Property. It is anticipated that the personal property
constituting the Project will be exempt from state and local sales taxes.
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EXHIBIT A
City of Riverside,Missouri
(US Farathane LLC Project)
COST BENEFIT ANALYSIS
PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT
GILMOREBELL
Table of Contents
I Project Assumptions I
II Summary of Tax Impact Analysis(Personal Property) 2
III Projected Tax Revenues Without Abatement(Personal Property) 3
IV Projected PILOT Amount(Personal Property) 4
V Projected Tax Abatement(Personal Property) 5
City of Riverside,Missouri
(US Farathane LLC Project)
Cost Benefit Analysis 313012015
Project Assumptions
• Initial year taxes assessed 2016
• Appraised value of personal property 5 Year 7 Year
Placed in Service: Ecomonic Life Ecomonic Life Total:
2015 $ 7,186,800 $ 28,747,200 $ 35,934,000
2016 $ 2,160,000 $ 8,640,000 $ 10,800,000
2017 $ 877,200 $ 3,508,800 $ 4,386,000
Total: $ 10,224,000 $ 40,896,000 $ 51,120,000
• Assessed value as a percentage of appraised value(personal) 33.33%
• Terms of abatement:
Personal property
Years 1 to 10 75%
Year Recovery Period in Years
3 5 7 10 15 20
0 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
1 75.00% 85.00% 89.29% 92.50% 95.00% 96.25%
2 37.50% 59.50% 70.16% 78.62% 85.50% 89.03%
3 12.50% 41.65% 55.13% 66.83% 76.95% 82.35%
4 5.00% 24.99% 42.88% 56.81% 69.25% 76.18%
5 5.00% 10.00% 30.63% 48.07% 62.32% 70.46%
6 5.00% 10.00% 18.38% 39.33% 56.09% 65.18%
7 5.00% 10.00% 10.00% 30.59% 50.19% 60.29%
8 5.00% 10.00% 10.00% 21.85% 44.29% 55.77%
9 5.00% 10.00% 10.00% 15.00% 38.38% 51.31%
10 5.00% 10.00% 10.00% 15.00% 32.48% 46.85%
City of Riverside,Missouri
(US Farathane LLC Project)
Cost Benefit Analysis -1 - 3/30/2015
Summary of Tax Impact Analysis
(Personal Property)
Revenue
Tax Revenue for Generated
Personal Property from PILOT Value of
Tax Distribution Tax Rate Without Abatement Payments Abatement
State of Missouri 0.0300 $ 16,744 $ 4,186 $ 12,558
Platte County, Missouri 0.0600 33,488 8,372 25,116
Health Center 0.0800 44,651 11,163 33,488
Board of Services for the Developmentally Disabled 0.1300 72,557 18,139 54,418
Clay-Platte-Ray Mental Health 0.1000 55,813 13,953 41,860
Mid-Continent Public Library District 0.3200 178,602 44,651 133,952
Senior Citizens Services Fund 0.0500 27,907 6,977 20,930
Park Hill R-V 5.5650 3,106,008 776,502 2,329,506
Parkville Special Road District 0.2649 147,849 36,962 110,887
Metropolitan Junior College District of K.C. 0.2374 132,501 33,125 99,376
M&M Replacement Surcharge 0.3600 200,928 50,232 150,696
7.1973 $ 4,017,048 $ 1,004,262 $ 3,012,786
City of Riverside,Missouri
(US Farathane LLC Project)
Cost Benefit Analysis -2- 3/30/2015
Projected Tax Revenues Witkout Abatement
(Personal Property)
Estimated Assessed Value of Personal Property 510,591,326 $11,330,813 $10,021,426 $7,589,028 $5,355,571 $3,529,191 $2,186,414 $1,801,832 $1,703,830 $1,703,830
Tax.Rate
Taxing Jurisdiction per 5100 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
Smte of Missouri 0.0300 $ 3,177 S 3,399 S 3,006 $ 2,277 S 1,607 $ 1,059 S 656 S 541 S 511 S 511 $ 16,744
Plaine Cotmty,Missouri 0.0600 6,355 6,798 6,013 4,553 3,213 2,118 1,312 1,081 1,022 1,022 33,488
Health Center 0.0800 8,473 9,065 8,017 6,071 4,284 2,823 1,749 1,441 1,363 1,363 44,651
Board of Services for the Developmentally Disabled 0.1300 13,769 14,730 13,028 9,866 6,962 4,588 2,842 2,342 2,215 2,215 72,557
Clay-Platte-Ray Mental Health 0.1000 10,591 11,331 10,021 7,589 5,356 3,529 2,186 1,802 1,704 1,704 55,813
Mid-Continent Public library District 0.3200 33,892 36,259 32,069 24,285 17,138 11,293 6,997 5,766 5,452 5,452 178,602
Senior Citizens Services Fund 0.0500 5,296 5,665 5,011 3,795 2,678 1,765 1,093 901 852 852 27,907
Park Hill R-V 5.5650 589,407 630,560 557,692 422,329 298,038 196,400 121,674 100,272 94,818 94,818 3,106,008
Parkville Special Road Disuict 0.2649 28,056 30,015 26,547 20,103 14,187 9,349 5,792 4,773 4,513 4,513 147,849
Metropolitan Junior College District of K.C. 0.2374 25,144 26,899 23,791 18,016 12,714 8,378 5,191 4,278 4,045 4,045 132,501
M&M Replaceman Surcharge 0.3600 38,129 40,791 36,077 27,321 19,280 12,705 7,871 6,487 6,134 6,134 200,928
7.1973 $ 762,289 S 815,513 S 721,272 S 546,205 S 385,456 $ 254,006 S 157,363 $ 129,683 $ 122,630 $ 122 630 $4,017,048
Personal Property Assessed Value
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
5-Year Property 7,186,800 2,036,056 1,425,239 997,668 598,601 239,536 239,536 239,536 239,536 239,536 239,536
2,160,000 - 611,939 428,357 299,850 179,910 71,993 71,993 71,993 71,993 71,993
877,200 - - 248,515 173,961 121,772 73,063 29,237 29,237 29,237 29,237
10,224,000 2,036,056 2,037,178 1,674,540 1,072,411 541,218 384,592 340,766 340,766 340,766 340,766
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
7-Year Property 28,747,200 8,555,269 6,722,340 5,282,249 4,108,522 2,934,796 1,761,069 958,144 958,144 958,144 958,144
8,640,000 - 2,571,295 2,020,406 1,587,585 1,234,821 882,056 529291 287,971 287,971 287,971
3,508,800 - - 1,044231 820,509 644,736 501,474 358213 214,951 116,948 116,948
40,896,000 8555,269 9,293,634 8,346,886 6,516,617 4,814,352 3,144,599 1,845,648 1,461,066 1,363,064 1,363,064
City of Riverside,Missouri
NS Farathaae LLC Projee(1
Cast BeneJtt Analysis -3- 3/30/2ols
Projected PILOT Amount
(Pero nal Property)
Estimated Assessed Value of Personal Property $10,591,326 511,330,813 510,021,426 $7,589,028 55,355,571 $3,529,191 $2,186,414 $1,801,832 $1,703,830 $1,703,830
PILOT Payment 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
Tax Rate
Taxing Jurisdiction per S100 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
Stateof Missouri 0.0300 $ 794 S 850 $ 752 S 569 $ 402 S 265 S 164 S 135 S 128 S 128 S 4,186
Platte County,Missaun 0.0600 1,589 1,700 1,503 1,138 803 529 328 270 256 256 8,372
Health Center 0.0800 2,118 2,266 2,004 1,518 1,071 706 437 360 341 341 11,163
Board of Services for the Developmentally Disabled 0.1300 3,442 3,683 3,257 2,466 1,741 1,147 711 586 554 554 18,139
Clay-Platte-Ray Mental Health 0.1000 2,648 2,833 2,505 1,897 1,339 882 547 450 426 426 13,953
Mid-Contmetn Public Library District 0.3200 8,473 9,065 8,017 6,071 4,284 2,823 1,749 1,441 1,363 1,363 44,651
Senior Citizens Services Fund 0.0500 1,324 1,416 1,253 949 669 441 273 225 213 213 6,977
Park Hill R-V 5.5650 147,352 157,640 139,423 105,582 74,509 49,100 30,418 25,068 23,705 23,705 776,502
Parkville Special Road District 0.2649 7,014 7,504 6,637 5,026 3,547 2,337 1,448 1,193 1,128 1,128 36,962
Metropolitan Junior College District ofKC. 0.2374 6,286 6,725 5,948 4,504 3,179 2,095 1,298 1,069 1,011 1,011 33.125
M&M Replacement Surcharge 0.3600 9,532 10,198 9,019 6,830 4,820 3,176 1,968 1,622 1,533 1,533 50,232
7.1973 S 190,572 S 203,878 S 180,318 S 136,551 S 96,364 S 63,502 $ 39,341 S 32,421 $ 30,657 $ 30,657 gON#OppN
City ejRi wade,A issoari
(US Farathane LLCPrejee4)
Cost BeneJltAnalysis -4- 3/30/2075
Projected Tax Abatement
(Personal Property)
Estimated Assessed Value of Personal Property 510,591,326 $11,330,813 510,021,426 $7,589,028 $5,3!5,571 S3,529,191 $2,186,414 $1,801,832 $1,703,830 $1,703,830
Abatement Percentage 75% 75% 75% 75% 75% 75% 75% 75% 75% 75%
Tax Rate
Taxing Jurisdiction W$100 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
State of Missouri 0.0300 S 2,383 $ 2,549 S 2,255 S 1,708 S 1,205 S 794 5 492 S 405 S 383 $ 383 S 12,558
Plane County,Missouri 0.0600 4,766 5,099 4,510 3,415 2,410 1,588 984 811 767 767 25,116
Health Center 0.0800 6,355 6,798 6,013 4,553 3,213 2,118 1,312 1,081 1,022 1,022 33,488
Board of Services for the Developmemally Disabled 0.1300 10,327 11,048 9,771 7,399 5,222 3,441 2,132 1,757 1,661 1,661 54,418
Clay-Plane-Ray Memel Health 0.1000 7,943 8,498 7,516 5,692 4,017 2,647 1,640 1,351 1,278 1,278 41,860
MidCmtincm Public Library Disnict 0.3200 25,419 27,194 24,051 18,214 92,853 8,470 5,247 4,324 4,089 4,089 133,952
Senior Citizens Services Fund 0.0500 3,972 4,249 31758 2,846 2,008 1,323 820 676 639 639 20,930
Paris Hill R-V 5.5650 442,055 472,920 418,269 316,747 223,528 147,300 91,255 75,204 71,114 71,114 2,329,506
Parkville Special Road District 0.2649 21,042 22,511 19,910 15,078 10,640 7,012 4,344 3,580 3,385 3,385 110,887
Metropolitan Junior College District of K.C. 0.2374 18,858 20,175 17,843 13,512 9,536 6,284 3,893 3,208 3,034 3,034 99,376
M&M Replacement Surcharge 0.3600 28,597 30,593 27,058 20,490 14,460 9,529 5,903 4,865 4,600 4,600 150,696
7.1973 S 571,717 $ 611,634 $ 5402954 S 409,654 $ 289,092 $ 190,505 $ 118,022 $ 97,262 S 91,972 S 91,972 $3,012,786
City of Riverside,Missouri
(US Famthane LLC Project)
Cost Benefit Analysis -J- 3/3aam