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.


BDK EZ Application.pdflanscapingplan_update.jpg
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