Agenda Item # 5
Columbus Consolidated Government
Council Meeting
10/11/2011
Agenda Report # 704
TO: Mayor and Council
SUBJECT: Enterprise Zone Tax Abatements (BD&K Foods, Inc.)
INITIATED BY: Planning Department
Recommendation: Approval is requested of a Resolution for BD&K Foods,
Inc. to receive ad valorem tax abatements on personal property only (with the
exclusion of school and general obligation debt levies) as specified under the
Enterprise Zone Employment Act. The Planning Department as well as the Board of
Tax Assessors does not recommend approval of real property items due that a
leased building does not qualify for enterprise zone abatements.
Background: BD&K Foods, Inc., is located at 600 Andrews Road, Suite 1 (
Tax Map Parcel ID # 049 013 007) and is located within the boundaries of the
Columbus Business Development Center Enterprise Zone. The applicant is
requesting to receive tax abatements on personal property ad valorem taxes
(with the exclusion of school and general obligation debt levies); for which ad
valorem taxes are levied.
BD&K Foods, Inc., was founded in 1999 in Auburn, Alabama. In 2009, BD&K Foods,
Inc., moved to Columbus where they leased and renovated a space owned by
Georgia Cold Storage Co. They completed renovations the same year and relocated
the production facility as the corporate headquarters to 600 Andrews Road,
Suite 1. The new facility is approximately 43,740 square feet with walls,
floors, ceilings and utility infrastructure that properly support their
production lines. Approximately $400,000.00 of space improvement was added as
well as $2,869,050.82 of new processing and infrastructure equipment for a
total of 3,269,050.82. The production floor has room for an additional
production line which they hope to expand within the next ten years.
BD&K Foods, Inc., currently produces about 15,000,000 lbs annually, and has a
total production capacity of approximately 40,000,000 pounds annually. BD&K
Foods, Inc., provides over 35 different recipes to customers world-wide, and
sells approximately 15,000,000 pounds of finished product each year. This
amounts to an average of $12,000,000 in sales annually.
All amortizing and revolving loans have been refinanced through Regions Bank in
Columbus, Georgia. In 2009, BD&K Foods, Inc., hired five (5) new employees and
they will maintain those new employees for the duration of the abatement
period, as required by the Enterprise Zone Employment Act. They also hired
three (3) ?low-income and moderate-income? individuals meeting the Enterprise
Zone Employment Law option. The total payroll amount for 2010 was $600,000.00
and they estimate to have the same payroll amount for 2011.
Analysis: Tax Map Parcel ID # 049 013 007 that belongs to Georgia Cold
Storage Co. and leased by BD&K Foods, Inc. meets the criteria established by
the Enterprise Zone Act to be eligible for tax abatements (personal property
only) as a business enterprise (manufacturing) project.
The applicant requested a waiver for the landscaping and fa?ade material option
established by local ordinance # 98-30. The reason for the waiver is the
limitation on space to provide such improvements. The Planning Department
visited the site and suggests granting the waiver.
BD&K Foods, Inc., will created five (5) new full time and they will maintain
those five (5) new jobs for the duration of the tax abatement period jobs in
order to provide additional economic stimulus to the area.
Financial Considerations: Tax abatements under the State of Georgia Enterprise
Zone Act will be made available to this project. Ad valorem taxes will be
abated based upon the following schedule:
-- One hundred percent (100%) of the personal property taxes shall be exempt
for the first five years
-- Eighty percent (80%) of the personal property taxes shall be exempt for the
next two years
-- Sixty percent (60%) of the personal property taxes shall be exempt for the
next year
-- Forty percent (40%) of the personal property taxes shall be exempt for the
next year; and,
-- Twenty percent (20%) of the personal property taxes shall be exempt for the
last year.
If approved by city Council, the schedule will not start on year one (100%),
but on year four (100%). The reason for this change is that BD&K Foods, Inc.,
started their operations back in 2009.
Projected Annual Fiscal Impact Statement: There are no annual fiscal impacts
other than the tax abatements as discussed under the Financial Considerations
section of this report.
Legal Considerations: Approve the resolution for BD&K Foods, Inc. to receive
tax abatements under the Enterprise Zone Employment Act (personal property
only). In addition, BD&K Foods, Inc. will show proof to The Board of Tax
Assessors every year that is maintaining those five (5) new jobs required under
the Enterprise Zone Employment Act.
Recommendations/ Actions: Approval is requested of a Resolution for BD&K Foods,
Inc. to receive ad valorem tax abatements on personal property only (with the
exclusion of school and general obligation debt levies) as specified under the
Enterprise Zone Employment Act. The Planning Department as well as the Board of
Tax Assessors does not recommend approval of real property items due that a
leased building does not qualify for enterprise zone abatements.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING APPROVAL OF THE REQUEST FOR BD&K FOODS, INC. LOCATED
AT 600 ANDREWS ROAD, SUITE 1 TAX MAP PARCEL ID # 049 013 007 TO RECEIVE TAX
ABATEMENTS ON PERSONAL PROPERTY UNDER THE STATE OF GEORGIA ENTERPRISE ZONE ACT
WHEREAS, BD&K Foods, Inc. (Tax Map Parcel ID # 049 013 007) is located within
the boundaries of the Columbus Business Development Center (Enterprise Zone);
and,
WHEREAS, BD&K Foods, Inc. meets the Enterprise Zone criteria as a business
enterprise (manufacturing) project and continues procuring, cooking and
packaging safe and consistent quality foods; and,
WHEREAS, BD&K Foods, Inc. will create five (5) new full time and they
will maintain those five (5) new jobs for the duration of the tax abatement
period jobs in order to provide additional economic stimulus to the area; and,
WHEREAS, BD&K Foods, Inc., schedule for tax abatements on personal property ad
valorem taxes will start on year four (100%) as opposed to year one due that
the business started operations back on 2009; and,
WHEREAS, BD&K Foods, Inc. is not required to incorporate a landscaping/fa?ade
material option, as established by local Ordinance # 98-30, due to limitation
of space.
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, Inc., located at 600 Andrews Road, Suite 1 Tax Map
Parcel ID # 049 013 007, to receive abatement of taxes as allowed by law under
the Enterprise Zone Employment Act of the State of Georgia. BD&K Foods, Inc..
shall comply with the following items in order to receive those tax abatements:
BD&K Foods, Inc., 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
termination of the tax abatements.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________day of _____________, and adopted at said meeting by the
affirmative vote of __________members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
________________________ _________________________
Tiny Washington, Clerk of Council , Mayor
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