Agenda Item #
Columbus Consolidated Government
Council Meeting
05/14/2013
Agenda Report #
TO: Mayor and Council
SUBJECT: Enterprise Zone - Kellogg Keebler Company
INITIATED BY: Planning Department, Verona Campbell
Recommendation: Approval is requested of a resolution for Kellogg Company (aka
Keebler Company), to receive ad valorem tax abatements and waiver of building
permit fees (with the exclusion of school and general obligation debt levies)
as specified under the Enterprise Zone Employment Act. Said project meets the
minimum requirements as established in the Enterprise Zone Employment Act.
Background: Keebler Company?s Columbus Bakery is located at 3700 Victory Drive
and is located within the boundaries of the Columbus Business Development
Center Enterprise Zone. The applicant is requesting to receive tax abatements
on all ad valorem taxes (with the exclusion of school and general obligation
debt levies) on personal property, specifically new manufacturing machinery and
other new machinery and equipment that Keebler is investing. The applicant also
requests abatements of other city fees, specifically building permit fees.
Analysis: The Keebler Company will hire and maintain at least five (5) new
employees, as required by the Enterprise Zone Employment Act, prior to the tax
abatement period. They plan to create 16 jobs overall, with hiring to be based
on qualifications and a target of hiring 14 or more local residents.
Project is internally funded by Kellogg Company. There is no lender. Their
projected capital investment over the entire 10-year period is $7,505,786.00.
Estimated wages for the newly created 16 jobs are projected at $232,825.00 in
2013 and $815,300.00 for 2014.
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 property taxes shall be exempt for the first
five years
Eighty percent (80%) of the property taxes shall be exempt for the next two
years
Sixty percent (60%) of the property taxes shall be exempt for the next year
Forty percent (40%) of the property taxes shall be exempt for the next year;
and
Twenty percent (20%) of the property taxes shall be exempt for the last year
The Board of Tax Assessors will provide the estimate of taxes abated for the
ten year period beginning with Tax Year 2013.
Projected Annual Fiscal Impact Statement: At a stated value of 7.5mm of
additional investment in personal property, the 10 year abatement would be
based on a declining value of the asset, the type of asset (percentages set by
the state) and the annual mileage rate. (if they timely file, the value of
personal property goes down each year, therefore, the assessed value also
declines accordingly).
Legal Considerations: The Board of Tax Assessors also requires to be notified
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. The only
personal property which has been approved for recognition within the Enterprise
Zone is machinery and equipment which is permanently located within the EZ.
Recommendations/ Actions: Approve the resolution authorizing the City Manager
to receive ad valorem tax abatements to Keebler Company for the additional
investment of $7,500,000.00 in their Columbus Bakery facility, after
consideration of the CCG Board of Tax Assessors' recommendations.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING APPROVAL OF THE REQUEST FOR KEEBLER COMPANY,
LOCATED AT 3700 VICTORY DRIVE, TAX MAP PARCEL ID #062 006 003, TO RECEIVE TAX
ABATEMENTS UNDER THE STATE OF GEORGIA ENTERPRISE ZONE ACT.
WHEREAS, Keebler Company (Tax Map Parcel ID #062 006 003) is located
within the boundaries of the Columbus Business Development Center (Enterprise
Zone); and,
WHEREAS, Keebler Company proposes to make an additional investment in
personal property at their Columbus Bakery in the amount of $7,505,786.00; and,
WHEREAS, the project meets the Enterprise Zone business type criteria
as a manufacturer; and,
WHEREAS, Keebler Company will create 16 jobs at this particular
location prior to the tax abatement period, and maintain at least 5 of those
jobs during the full length of the tax abatement period in order to provide
additional economic stimulus to the area; and,
WHEREAS, Keebler Company 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 Keebler Company, located at 3700 Victory Drive, Tax Map
Parcel ID #062 006 003, to receive abatement of taxes as allowed by law under
the Enterprise Zone Employment Act of the State of Georgia. Keebler Company
shall comply with the listed requirements in order to receive those tax
abatements:
1. Keebler Company 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. Failure to maintain those new jobs will result in the
termination of the tax abatements.
2. The Board of Tax Assessors also requires to be notified 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 in place and 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 _____________ 2013, and adopted at said meeting by the
affirmative vote of _____________ members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.
_____________________________
_________________________
Tiny B. Washington, Clerk of Council Teresa Pike
Tomlinson, Mayor
Attachments