ORDINANCE NO. 8497
AN ORDINANCE EXEMPTING FROM AD VALOREM TAXATION FIFTY-FIVE PERCENT (55%) OF THE APPRAISED VALUE OF NEW MACHINERY AND EQUIPMENT USED BY THE GARAGE DOOR GROUP INC., D/B/A AMARR GARAGE DOORS AND RAM KANSAS, L.L.C, FOR THE MANUFACTURING OF ARTICLES OF COMMERCE, AS PROVIDED BY ARTICLE 11, SECTION 13 OF THE CONSTITUTION OF THE STATE OF KANSAS.
Whereas, on October 15, 2003, the Garage Door Group, Inc., d/b/a Amarr Garage Doors, 3800 Greenway Circle, Lawrence, Kansas (“Amarr”) submitted an application (“Application”) for property tax abatement to the City of Lawrence, Kansas (“City”), which is attached hereto and incorporated by reference; and
Whereas, the Governing Body of the City of Lawrence, Kansas, did, on, October 28, 2003, adopt Ordinance 7706, which set 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 at the time of the Application; and
Whereas, pursuant to Ordinance 7706, the Public Incentives Review Committee, having met on October 22, 2003 to review and consider the application of Garage Door Group, Inc., d/b/a Amarr Garage Doors, for exemption from payment of said ad valorem taxes, did, 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 Garage Door Group, Inc., d/b/a Amarr Garage Doors as requested; and such recommendation was further conditioned on Garage Door Group, Inc., d/b/a Amarr Garage Doors demonstrating compliance with a performance agreement to be executed as a condition of granting the abatement; and
Whereas, on November 18, 2003, the Governing Body of the City of Lawrence, Kansas, conducted a public hearing and authorized the granting of the exemption requested by Garage Door Group, Inc., d/b/a Amarr Garage Doors, 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; and
Whereas, pursuant to information presented by Garage Door Group, Inc., d/b/a Amarr Garage Doors, 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; and
Whereas, at said public hearing, on November 18, 2003, the Governing Body of the City of Lawrence, Kansas, approved the request by Garage Door Group, Inc., d/b/a Amarr Garage Doors, for the exemption from ad valorem taxation to-wit a fifty-five percent (55%) tax abatement for ten (10) years for up to seven million, seven hundred thousand dollars ($7,700,000) in the construction of a new facility and modification to an existing facility and nine million, four hundred thousand dollars ($9,400,000) in new machinery and equipment; and
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
Whereas, on December 17, 2003, the City of Lawrence, Kansas and Garage Door Group, Inc., d/b/a Amarr Garage Doors, entered into a Performance Agreement, and all provisions of said Performance Agreement are hereby incorporated by reference as if fully set forth herein; and
Whereas, on March 31, 2004, the City of Lawrence, Kansas and Garage Door Group, Inc., d/b/a Amarr Garage Doors and RAM Kansas, LLC, executed a First Addendum to the Performance Agreement, and all provisions of said Performance Agreement as amended, are hereby incorporated by reference as if fully set forth herein; and
Whereas, the Kansas Legislature passed, and the Governor approved on May 22, 2006, HB 2583, (Ch. 205, Session Laws of Kansas, 2006) which eliminated property taxes on new business machinery and equipment purchased after July 1, 2006; and
Whereas, on March 27, 2007, Garage Door Group, Inc., d/b/a Amarr Garage Doors and RAM Kansas, LLC, sold their Lawrence facility; and
Whereas, pursuant to K.S.A. 79-213 and K.S.A. 79-221, this transfer of ownership invalidated the fifty-five percent (55%) abatement on the construction of a new facility and modification to an existing facility of seven million, seven hundred thousand dollars ($7,700,000); and
Whereas, on April 7, 2009, the Governing Body of the City of Lawrence adopted Ordinance 8384 and repealed Ordinance 7706; and
Whereas, Garage Door Group, Inc., d/b/a Amarr Garage Doors and RAM Kansas, remains eligible under state law to receive a fifty-five percent (55%) abatement on up to nine million, four hundred thousand dollars ($9,400,000) in new machinery and equipment.
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 machinery and equipment up to and including the value of nine million, four hundred thousand dollars ($9,400,000) as described in the Affidavit attached hereto as Exhibit A, executed by Nancy J Kelley, Controller (insert name and title here ) used by the Garage Door Group, Inc., d/b/a Amarr Garage Doors, in the manufacturing of articles of commerce pursuant to Article 11, Section 13 of the Constitution of the State of Kansas, is hereby exempted from ad valorem taxation for a ten (10) year period beginning January 1, 2010 for new machinery and equipment purchased beginning December 1, 2003 and ending July 1, 2006.
SECTION III. The exemption from ad valorem taxation hereby granted shall begin with the taxes levied in the calendar year beginning January 1, 2010.
SECTION IV. Garage Door Group, Inc., d/b/a Amarr Garage Doors, 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 V. 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 VI. The exemption from ad valorem taxation hereby granted is subject to the limitation of Fifty five percent (55%) tax abatement on new machinery and equipment having a maximum value of nine million, four hundred thousand dollars ($9,400,000) for a ten (10) year period beginning January 1, 2010 for new machinery and equipment purchased beginning December 1, 2003 and ending July 1, 2006.
SECTION VII. If Garage Door Group, Inc., d/b/a Amarr Garage Doors, fails to pay the ad valorem taxes which are assessed against the subject property, a penalty and/or interest will be assessed against the Garage Door Group, Inc., d/b/a Amarr Garage Doors by the Douglas County Treasurer in accordance with applicable State laws relating to late tax payments. If the Garage Door Group, Inc., d/b/a Amarr Garage Doors fails to timely pay any such ad valorem taxes, or file reports or other information as requested by the City, the City Commission after notice and a public hearing may modify the abatement by ordinance.
SECTION VIII. If the Garage Door Group, Inc., d/b/a Amarr Garage Doors, fails to abide by the conditions set forth in the performance agreement pursuant to Section 24 of Ordinance 7706, the City Commission after notice and a public hearing may modify the abatement by ordinance.
SECTION IX. This Application and abatement ordinance shall be governed by the provisions of Ordinance 7706, which is incorporated by reference as if fully set forth herein and attached hereto as Exhibit B.
SECTION X. The ordinance shall be in force and effect from and after its adoption and publication as provided by law.
SECTION XI. Ordinance 8470 is hereby repealed.
Adopted the ___ day of April, 2010 by the Governing Body of the City of Lawrence, Kansas.
PASSED
__________________________________ Robert Chestnut, Mayor
ATTEST:
____________________________________
Jonathan M. Douglass, City Clerk
APPROVED AS TO FORM AND LEGALITY
_________________________________________
Toni Ramirez Wheeler, Director of Legal Services