HomeMy WebLinkAbout20121091.tiff RESOLUTION
RE: APPROVE AGREEMENT FOR TAX INCENTIVE PAYMENTS AND AUTHORIZE CHAIR
TO SIGN - PTI USA MANUFACTURING, LLC
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS,the Board has been presented with an Agreement for Tax Incentive Payments
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and PTI USA Manufacturing, LLC,with terms and conditions being
as stated in said agreement, and
WHEREAS,after review, the Board deems it advisable to approve said agreement,a copy of
which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Agreement for Tax Incentive Payments between the County of Weld,
State of Colorado, by and through the Board of County Commissioners of Weld County, and PTI
USA Manufacturing, LLC, be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to
sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 25th day of April A.D., 2012.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST:d ,eR?'ie -�
�'-�� Sean P. on ay, Chair
Weld County Clerk to the Boar.
�p •�`"' is E La
. G- ia, Pro- em
BY:
Deputy C ' rk to the Bo-
O 71^T A ra Kirkmeyer
APP DAS M: t ` �� ` F �
David E. Long
u y Att ney C zt,
Douglas ademacher
Date of signature: 5-i,2- -/d
ode) A-o TI 1SM�
tom'. CJA, lTC_ movu
L} a 2012-1091
5- 5 Ia F10055
AGREEMENT PURSUANT TO C.R.S. S 30-11-123
47
THIS AGREEMENT is made and entered into this 3D day of /7)i9-2 y ,2011.
and between the County of Weld,a body corporate and politic of the state of Colorado, by and
through the Board of County Commissioners of the County of Weld, whose address is P.O.Box
758, 915 10th Street, Greeley, Colorado 80632, hereinafter referred to as, "Taxing Authority,"
and P17 USA Manufacturing LLC,whose address is 390 Mountain View Drive, Johnstown,CO
80534,hereinafter referred to as,"Taxpayer."
WITNESSETH:
WHEREAS, Taxing Authority desires to promote economic development within Weld
County, Colorado, for the purposes of generating employment opportunities for residents of
Weld County,thereby stimulating the economic well-being of Weld County's citizens,and
WHEREAS, C.R.S. § 30-11-123 provides that the Taxing Authority may negotiate
incentive payments to taxpayers who establish new business facilities or who expand existing
business facilities,and
WHEREAS, Taxpayer represents that it has invested or intends to invest in qualifying
personal property and wishes to receive the incentive payment benefits available pursuant to
C.R.S. §30-11-123,and
WHEREAS, Taxpayer has been determined to be currently eligible to receive the
incentive payment benefits available pursuant to C.R.S. § 30-11-123,and pursuant to the Board
of County Commissioners' policy concerning incentive payments passed by Resolution on
February 20, 1991 ("Resolution of the Taxing Authority").
NOW,THEREFORE,the parties hereto hereby agree to the following:
1. Subject to annual appropriation by Taxing Authority, fifty-percent(50%) of the amount
of personal property taxes paid by the Taxpayer for personal property located at
Taxpayer's Facility at 390 Mountain View Drive,Johnstown,CO 80534("the Facility"),
placed into service in Weld County in:
a. 2012, and appearing on the personal property declaration schedule submitted by
the Taxpayer to the Weld County Assessor, which personal property has not
appeared on previous schedules, shall be paid to the Taxpayer by the Taxing
Authority for the ten(10)tax years beginning 2012 and ending 2021 (hereinafter
referred to as,"10-Year Term").
All tax incentive payments made pursuant to this Agreement shall hereinafter be referred
to as,"Tax Incentive Payments." Taxpayer shall submit to the Weld County Assessor an
affidavit certifying the aggregate cost and year of acquisition of Taxpayer's personal
property that, to Taxpayer's best knowledge, information and belief, qualifies for
incentive payments under C.R.S. § 30-11-123, for the 10-Year Term. The amounts so
1 2012-1091
certified shall be subject to review by the Weld County Assessor.
2. Tax Incentive Payments shall be made by Taxing Authority only upon appropriation,and
only if:
a. All taxes and assessments levied and assessed on Taxpayer by Taxing Authority
for Facility are current,and
b. In each year of this Agreement,Taxpayer remains eligible to receive the Tax
Incentive Payments under criteria established in C.R.S. § 30-11-123 and the
Resolution of the Taxing Authority,and
c. Tax Incentive Payments are not calculated as being part of the Weld County
Home Rule five percent(5%)property tax limitation or State of Colorado
property tax limitation.
3. Any appropriated Tax Incentive Payments shall be made to Taxpayer by Taxing
Authority within 90 days of receipt of full payment by the Taxpayer of all personal
property taxes due and receipt of an affidavit from the Taxpayer stating that the Taxpayer
remains eligible for such payment pursuant to C.R.S. § 30-11-123 and the Resolution of
Taxing Authority.
4. The Tax Incentive Payments shall not be made by Taxing Authority if an amendment to
the Colorado Constitution limiting property taxes is subsequently passed after the date of
this Agreement,or if a court of competent jurisdiction declares any portion of this
Agreement,C.R.S. § 30-11-123 (as may be amended),or the Resolution of the Taxing
Authority,to be invalid or unconstitutional.
5. Any Tax Incentive Payments made under this Agreement that are determined not to be
legal under the laws of the State of Colorado or are determined to be part of the Weld
County Home Rule five percent(5%)property tax limitation or State of Colorado
property tax limitation,shall be repaid to Weld County.
6. TAX INCENTIVE PAYMENTS TO TAXPAYER SHALL ONLY BE MADE TO THE
EXTENT REVENUES ARE AVAILABLE AND APPROPRIATED IN EACH OF THE
TEN(10)TAX YEARS OF THE 10-YEAR TERM.
7. This Agreement is not assignable.
8. Acceptance of any Tax Incentive Payment by Taxpayer constitutes agreement by both
parties to fund the Tax Incentive Payment for the tax year involved.
9. Claim for a Tax Incentive Payment must be submitted to Taxing Authority by Taxpayer
by October 1st of each year or Taxpayer waives the right to receive payment for that
year.
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10. Taxpayer agrees that it shall attempt to use reasonable efforts to ensure that a minimum
of fifty percent (50%) of its workforce employed at the Facility are Weld County
residents during the terms of this Agreement.
11. All notices required or permitted under this Agreement shall be given in writing and shall
be effective when delivered in the case of hand delivery,when transmitted, in the case of
facsimile transmission or five days after mailing, when mailed, provided that mailed
notices shall be sent by certified mail, return receipt requested. Notices shall be sent to
the following addressees at the following addresses or facsimile numbers or to such other
addressees,addresses or facsimile numbers as a party may designate from time to time by
notice given pursuant to this paragraph:
If to the County: Board of County Commissioners
P.O.Box 758
Greeley,CO 80632
Fax Number: (970)352-0242
With a Copy to: Weld County Attorney
915 10th Street
Greeley,CO 80632
Fax Number: (970) 352-0242
If to Taxpayer: PTI USA Manufacturing LLC
390 Mountain View Drive
Johnstown,CO 80534
Fax Number: (970)
12. Each of the parties will execute and deliver such other instruments and documents and
will take all such other actions as the other party may reasonably request and as may
reasonably be required in order to effectuate the purpose of this Agreement and to carry
out its terms.
13. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one-and the same
instrument.
14. This Agreement constitutes the entire agreement between the parties and supersedes and
replaces all prior and contemporaneous agreements,representations,both written and
oral,between the parties with respect to the subject matter of this Agreement. No
variation of modification of this Agreement,and the waiver of the Agreement's
provisions or conditions,shall be binding unless made in writing and signed by duly
authorized officers of the County and Taxpayer. As permitted hereunder,this Agreement
3
shall be binding upon,and inure to the benefit of,the parties and their respective
successors and assigns. This Agreement shall be governed by and construed according to
the laws of the state of Colorado.
15. It is expressly understood and agreed that the enforcement of the terms and conditions of
this Agreement,and all rights of action relating to such enforcement,shall be strictly
reserved to the undersigned parties and nothing in this Agreement shall give or allow any
claim or right of action whatsoever by any other person not included in this Agreement.It
is the express intention of the undersigned parties that any entity other than the
undersigned parties receiving services or benefits under this Agreement shall be an
incidental beneficiary only.
The above and foregoing Agreement was hereby approved on the 3' day of/'99Ti2S.
A.D.,2012.
ATTEST: TAXING AUTHORITY:
Weld County Clerk to the Board County of Weld,by and through the Board of
County Commissioners of the County of Weld
By: /t 1. ►� „ By:
Deputy Cler r`r- j �/• Sean P.Conway,Chairman APR 2 5 2012
�t TAXPAYER:
Iasi R' G PT1 USA Manufacturing LLC
Flowi
r � \ I By: .
Title: Vier Pktypetri; /itL
4
D/�/Gj/
OFFICE OF BOARD OF COMMISSIONERS
I 8 6 I - 2 0 I I PHONE: 970-336-7204
FAX: 0 970-352-0242
1150 O STREET WELn�rO NTY • P.O. BOX 758
GREELEY, COLORADO 80632
October 6,2011
Mr. Magnus Saramago,MBA
Project Manager
PTI Group,Inc.
16511 116th Avenue
Edmonton,Alberta,Canada T5M 3V1
Dear Mr. Saramago:
The Weld County Commissioners are very pleased to learn that PTI Group,Inc.is considering locating a new modular
workforce accommodations manufacturing facility to our growing business community. The attraction and retention of
quality,primary sector businesses such as PTI Group is extremely important to the overall health of the county/region and
we recognize the very positive impact your operation will have in our economy.
We continually work to insure that Weld County is a low tax/cost effective place to do business for all new and existing
employers. One measure of this commitment is the fact that Weld County does NOT charge a typical one to three
percent(1-3%)county-wide sales/use tax. This reduces the tax liability for all Weld employers.
Based on our review of the proposed PTI Group manufacturing operation locating to 390 Mountain View Drive in
Johnstown,we are prepared to offer the 50%personal property tax rebate incentive via state enabling legislation(SB 118
and SB 182). This incentive program enables Weld County to provide a 50%tax rebate for ten years on your new
personal property (equipment) first put into operation in year one. Based on an initial equipment investment of
$4.5 million,the county's portion of this ten-year rebate is roughly estimated to be$61,099,as outlined in the Upstate
Colorado Economic Development information. This incentive is contingent upon at least 25%of your new workforce
being Weld residents. Upon formal approval at a regularly scheduled meeting of the Weld County Commissioners,PTI
Group will then be asked to enter into a Memorandum of Understanding with the County.
Should you have questions on this incentive,please contact Monica Daniels-Mika,Weld County Director of Finance and
Administration at 970-336-7205. Should any other questions arise,please feel free to contact one of your Weld County
Commissioners.
Very truly yours,
BOARD OF COUNTY COMMISSIONERS
- bara Kirrr yer,Chaff
p < <r
S ,Conway,Pro Tem A Dougla demac er
David E.Long i F.Garcia
cc: Monica Mika
Cathy Schulte,Upstate
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