Agenda Item # 5
Columbus Consolidated Government
Council Meeting
11/10/2015
Agenda Report # 49
TO: Mayor and Council
SUBJECT: Enterprise Zone: BD & K Foods, Inc., 1333 Cusseta Road
INITIATED BY: Planning Department
Recommendation: Approval is requested for BD&K Foods, Inc. to receive
enterprise zone tax abatements at their new facility at 1333 Cusseta Road. The
abatements are to begin 1/1/2016.
Background: BD&K Foods is expanding operations and has purchased an
additional facility located at 1333 Cusseta Road. The addition will allow the
company to extend the warehousing and distribution components of the business
which will result in 35 new jobs and an initial investment of 1.7 million
dollars. BD&K Foods currently provides 65 jobs in the Columbus area and
generates approximately $15 Million in annual revenue.
Analysis: BD&K Foods has met the necessary requirements set forth in ordinance
98-30 to receive a 10 year abatement on property taxes as part of the Columbus
Business Development Center.
Financial Considerations: BD&K Foods will be investing $1,700,000.00 into the
project and will create 35 new jobs over the period. They will also be
occupying a vacant building and improvements are expected to be completed by
the end December 2015.
Projected Annual Fiscal Impact Statement: For the BD&K Foods property, the
City will be forfeiting about $28,589.48 in property taxes for the first 5
years. School and other taxes will not be affected. Job growth and the
improvements made to the properties can offset the loss in property taxes.
Legal Considerations: The application has been reviewed and meets or will meet
the requirements per the Enterprise Zone Employment Act of 1997 prior to
receiving tax abatements.
Recommendations/ Actions: Approve the resolution for BD&K Foods to receive
property tax abatements through the Columbus Business Development Center per
ordinance #98-30.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING APPROVAL OF THE REQUEST FOR BD&K FOODS, AN
EXPANSION LOCATED AT 1333 CUSSETA ROAD, TO RECEIVE TAX ABATEMENTS UNDER THE
STATE OF GEORGIA ENTERPRISE ZONE ACT.
WHEREAS, BD&K Foods expansion at 1333 Cusseta Road is located within the
boundaries of the Columbus Business Development Center (Enterprise Zone); and,
WHEREAS, BD&K Foods reports making an additional investment in land, buildings
and machinery and equipment at their 1333 Cusseta Road location in the amount
of $1,700,000.00; and,
WHEREAS, the project meets the Enterprise Zone business type criteria; and,
WHEREAS, BD&K Foods reports that they will create at least 5 jobs
(approximately 35 jobs) at this particular location prior to the tax abatement
period, and maintain the 5 jobs (net) during the full length of the tax
abatement period in order to provide additional economic stimulus to the area;
and,
WHEREAS, BD&K Foods, will provide operating statements, income and expense
information, as well as before and after photographs to the Board of Tax
Assessors at the stage of completion as of the January 1 valuation date as set
by Georgia code; and,
WHEREAS, the project will incorporate and maintain the facade
requirement for the duration of the tax exemption period, as established by
local Ordinance #98-30.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the Council of the Consolidated Government of Columbus hereby
authorizes and approves BD&K Foods, located at 1333 Cusseta Road, to receive
abatement of taxes as allowed by law under the Enterprise Zone Employment Act
of the State of Georgia. BD&K Foods, shall comply with the listed requirements
in order to receive those tax abatements:
1.
BD&K Foods, will show proof to The Board of Tax Assessors every year that they
are maintaining those five (5) new jobs required under the Enterprise Zone
Employment Act. Failure to maintain those new jobs will result in the
termination of the tax abatements.
2.
The Board of Tax Assessors also requires recipients to provide notice of the
status of the project as of January 1 of each year in order to grant the
abatement. This information enables the Board to value the property at the
stage of completion as of the January 1 valuation date as set by Georgia code.
The Board would need to know when the project is considered completed.
3.
The project will incorporate and maintain the landscape requirement, for the
duration of the tax exemption period, as established by local ordinance# 98-30.
The applicant shall also be required to follow any additional requirements as
determined by the City.
4.
Facade enhancement shall be approved by the City official prior to the granting
of the tax abatements.
____________
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
_________ day of _____________ 2015, and adopted at said meeting by the
affirmative vote of _____________ members of said Council.
Councilor Allen voting _______________.
Councilor Baker voting _______________.
Councilor Barnes voting _______________.
Councilor Buck voting _______________.
Councilor Davis voting _______________.
Councilor Henderson voting _______________.
Councilor Huff voting _______________.
Councilor Turner Pugh voting _______________.
Councilor Thomas voting _______________.
Councilor Woodson voting _______________.
_______________________________ _________________________
Tiny B. Washington, Clerk of Council Teresa Pike
Tomlinson, Mayor
Attachments