ORDINANCE NO. 7882
AN ORDINANCE EXEMPTING FROM AD VALOREM TAXATION FIFTY FIVE PERCENT (55%) OF THE APPRAISED VALUE OF BUILDING EXPANSION IMPROVEMENTS AND MACHINERY AND EQUIPMENT USED BY PROSOCO, INC., FOR THE MANUFACTURING OF ARTICLES OF COMMERCE, AS PROVIDED BY ARTICLE 11, SECTION 13 OF THE CONSTITUTION OF THE STATE OF KANSAS.
WHEREAS, on September 26, 2002, Prosoco, Inc. submitted an application for the exemption from ad valorem taxation of fifty-five percent (55%) of the appraised value of its building expansion improvements, and machinery and equipment used in the manufacturing of articles of commerce in the City of Lawrence, Douglas County, Kansas;
WHEREAS, the Governing Body of the City of Lawrence, Kansas, did, on November 13, 2001, adopt Resolution No. 6343, which sets forth the official policies and procedures for the granting of exemptions pursuant to Article 11, Section 13 of the Constitution of the State of Kansas, as required by K.S.A. 79-251;
WHEREAS, pursuant to Resolution No. 6343, the Public Incentives Review Committee, having met on October 31, 2002, to review and consider the application of Prosoco, Inc., for exemption from payment of said ad valorem taxes, did, on October 31, 2002, upon motion made, seconded, and approved, agreed to recommend to the Governing Body of the City of Lawrence, Kansas, that a fifty-five percent (55%) tax abatement for ten (10) years be granted to Prosoco, Inc., on an estimated total of two million, three hundred and forty eight thousand dollars ($2,348,000.00) in building expansion improvements, and two hundred and sixty thousand dollars ($260,000) on machinery and equipment, as permitted by Article 11, Section 13 of the Constitution of the State of Kansas;
WHEREAS, on November 5, 2002, the Governing Body of the City of Lawrence, Kansas, conducted a public hearing on the granting of the exemption requested by Prosoco, Inc., prior to which the notices both by publication and in writing, required by K.S.A. 79-251(b), were made and given in strict conformity with such requirements;
WHEREAS, pursuant to information presented by Prosoco, Inc., the Governing Body of the City of Lawrence, Kansas, found the subject property will be used exclusively for the purpose specified in Section 13 of Article 11 of the Kansas Constitution;
WHEREAS, at said public hearing, on November 5, 2002, the Governing Body of the City of Lawrence, Kansas, approved the request by Prosoco, Inc., for the exemption from ad valorem taxation to-wit a fifty five percent (55%) tax abatement for ten (10) years for up to two hundred and sixty thousand dollars ($260,000) equipment and machinery and two million three hundred and forty eight thousand dollars ($2,348,000.00) in building expansion improvements;
WHEREAS, the Governing Body made the factual determination that the exemption, including the exemption of tangible personal property, was required to retain jobs in the State of Kansas, all as required by K.S.A. 79-252; and
NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS;
SECTION I. The above recitals are incorporated herein by reference and made a part hereof as if fully stated and repeated herein.
SECTION II. Fifty five percent (55%) of the appraised valuation for new equipment and machinery and building expansion improvements up to and including the value of $2,348,000 on new construction and up to and including the value of $260,000 on machinery and equipment as described in the Affidavit of Cost For Machinery, Equipment and New Construction executed by Bruce Boyer, Vice-President, Prosoco, Inc., on said machinery and equipment and building improvements, used by Prosoco, Inc., in the manufacturing of articles of commerce, is hereby exempted from ad valorem taxation for a ten (10) year period.
SECTION III. The exemption from ad valorem taxation hereby granted shall begin with the taxes levied in the calendar year 2005.
SECTION IV. Each year during the exemption period, the Douglas County, Kansas Appraiser shall exempt fifty five percent (55%) of the appraised valuation of machinery and equipment and building expansion improvements up to and including the value of $2,348,000 on new construction and up to and including the value of $260,000 on machinery and equipment described in the Affidavit of Cost For Machinery, Equipment and New Construction of this ordinance, and place the balance of the appraised valuation on the tax roles.
SECTION V. Prosoco, Inc. shall be responsible for the preparation, initiation, timely filing, pursuing and follow-up of all applications and related paper work required by any state or local body or agency having authority of or over the allowance of approval of such exemption.
SECTION VI. The Mayor and the City Clerk of the City of Lawrence, Kansas are hereby authorized to execute and submit the proper documents to effectuate the exemption hereby granted.
SECTION VII. The exemption from ad valorem taxation hereby granted is subject to the limitation of fifty five percent (55%) tax abatement on new equipment and machinery and building improvements having a maximum value of $260,000 for machinery and equipment and $2,348,000 for additional improvements made to property.
SECTION VIII. If Prosoco, Inc fails to pay the ad valorem taxes which are assessed against the subject property, a penalty and/or interest will be assessed against Prosoco, Inc by the Douglas County Treasurer in accordance with applicable State laws relating to late tax payments. If Prosoco, Inc fails to timely pay any such ad valorem taxes and such failure shall continue for one (1) year, the exemption from ad valorem taxation hereby granted shall be terminated December 31, in the year such payment was due.
SECTION IX. The ordinance shall be in force and effect from and after its adoption and publication as provided by law.
Adopted the ___ day of July, 2005 by the governing body of the City of Lawrence, Kansas.
PASSED
__________________________________ Dennis Highberger, Mayor
ATTEST:
____________________________________
Frank S. Reeb, City Clerk