RESOLUTION NO. 7233
A RESOLUTION OF THE CITY OF LAWRENCE, KANSAS, MAKING CERTAIN FINDINGS OF FACT AS REQUIRED BY K.S.A. 79-251, AS AMENDED, WITH RESPECT TO A PROPERTY TAX EXEMPTION BE GRANTED TO Plastikon healthcare, llc, FOR CERTAIN REAL AND PERSONAL PROPERTY.
WHEREAS, the City of Lawrence, Kansas (the “City”), desires to promote, stimulate, and develop the general welfare and economic prosperity of the City and its inhabitants and thereby to further promote, stimulate, and develop the general welfare and economic prosperity of the State of Kansas;
WHEREAS, Plastikon Healthcare, LLC, a Kansas limited liability company (the “Company”) has applied to the City for a property tax exemption pursuant to the provisions of Article 11, Section 13 of the Kansas Constitution for a facility and certain personal property located in the City for the expansion of its business and to be used for one of the exempt purposes set forth in Article 11, Section 13 of the Kansas Constitution; and
WHEREAS, the Governing Body, after conducting a public hearing pursuant to published notice as provided by law, has determined and finds that real property and personal property belonging to the Company, all of which will be used exclusively in the Company’s business of manufacturing articles of commerce, should be granted a tax exemption for economic development purposes.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:
SECTION 1. Use of Property. The Governing Body has determined and finds that the property, for which the exemption is to be granted, will be used exclusively in the Company’s business of manufacturing articles of commerce as specified in Article 11, Section 13 of the Kansas Constitution.
SECTION 2. Relocation. The Company is not relocating from one city or county to another within the State of Kansas. The Company currently operates other facilities located in the City.
SECTION 3. Conditions to Tax Abatement. The granting of tax abatement to the Company for the new facility for business expansion is subject to: (a) obtaining any necessary governmental approvals; and (b) the Company’s compliance with the City’s policies relating to ad valorem tax abatement.
SECTION 4. Approval of Project. The Governing Body hereby determines and finds that the acquiring, constructing, and equipping of the facility expansion for the Company’s business will promote the general welfare and economic prosperity of the City and the granting of tax abatement for the Company’s facility expansion will be in furtherance of a public purpose.
SECTION 5. Ad Valorem Tax Exemption. In consideration of the Company’s decision to acquire, construct, and equip the new facility, the City hereby agrees to take all appropriate action to request the Kansas Board of Tax Appeals to approve a partial ad valorem property tax exemption (not including special assessments or the school district’s capital outlay levy imposed pursuant to K.S.A. 72-8801) for all property (including real property, building improvements, machinery, and equipment) constituting a part of the new facility for expansion of its business. In making this determination, the Governing Body has conducted the public hearing and reviewed the analysis of costs and benefits of the exemption required by K.S.A. 79-251, as amended. Assuming the exemption receives all approvals, such exemption will begin the calendar year after which the expansion of the Company’s facility commences operations and continue for not more than 10 calendar years (the “Exempt Period”).
Subject to the terms and conditions of a Performance Agreement to be entered into by the Company and the City, the City will request 50% abatement of ad valorem taxes (not including special assessments or the school district’s capital outlay levy imposed pursuant to K.S.A. 72-8801) during the Exempt Period, unless the Company demonstrates to the satisfaction of the City that the Project is constructed to LEED Silver equivalent or higher, in which case the City will request 70% abatement of such ad valorem taxes.
SECTION 6. Effective Date. This Resolution shall take effect and be in full force immediately after adoption.
ADOPTED by the Governing Body of the City of Lawrence, Kansas, this 19th day of December, 2017.
APPROVED:
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Leslie Soden
Mayor
ATTEST:
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Sherri Riedemann
City Clerk
APPROVED AS TO FORM:
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Toni R. Wheeler
City Attorney