RES NO 02-04-2014 CITY OF VAN BUREN, ARKANSAS
RESOLUTION NO. 2014
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS, A RESOLUTION TO BE ENTITLED:
A RESOLUTION OF THE CITY OF VAN BUREN, ARKANSAS CERTIFYING
LOCAL GOVERNMENT ENDORSEMENT OF BUSINESS TO PARTICIPATE
IN THE TAX BACK PROGRAM (AS AUTHORIZED BY SECTION 15- 4- 2706(d)
OF THE CONSOLIDATED INCENTIVE ACT OF 2003).
WHEREAS, in order to be considered for participation in the Tax Back Program, the local government
must endorse a business to participate in the Tax Back Program; and
WHEREAS, the local government must authorize the refund of local sales and use taxes as provided in
the Consolidated Incentive Act of 2003; and
WHEREAS, said endorsement must be made on specific form available from the Arkansas Economic
Development Commission; and
WHEREAS, Engineered Fabricated Solutions located at 2407 Lost Beach Crossing, Van Buren,
Arkansas has sought to participate in the program and more specifically has requested
benefits accruing from construction and /or expansion of the specific facility; and
WHEREAS, Engineered Fabricated Solutions has agreed to furnish the local government all necessary
information for compliance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
VAN BUREN, ARKANSAS, THAT
SECTION 1: Engineered Fabricated Solutions be endorsed by the Van Buren City Council for benefits
from the sales use tax refunds as provided by Section 15- 4- 2706(d) of the Consolidated
Incentive Act of 2003.
SECTION 2: The Department of Finance and Administration is authorized to refund local sales and use
taxes to Engineered Fabricated Solutions.
SECTION 3: This resolution shall take effect immediately.
IN WITNESS WHEREQF, the City of Van Bur ansas, by its City Council, did pass,
approve, and adopt, by a vote of tp for and a against, t e foregoing Resolution at its regular meeting
held on the 24 of February 2014. 1
Robert D. Free
ATTESTED: AP f R ro AS TO FORM:
V&IALL— eUIC&11,
Barbie Curtis Ca a l e A. Settle
City Clerk/Treasurer ity Attorney
VAN BUREN
CHAMBER
OF COMMA
February 14, 2014
Honorable Bob Freeman
City of Van Buren
1003 Broadway
Van Buren, Arkansas 72956
Dear Mayor Freeman:
As you are aware, the Van Buren Chamber of Commerce is working with both new and
existing businesses, the Arkansas Economic Development Commission and other
regional partners to create jobs here in Van Buren. Most of the new jobs that are
created in Arkansas and across the country are through business expansions. By
supporting existing businesses we keep the jobs here in Van Buren.
At this time we have two businesses that are expanding their operations here in Van
Buren. Both companies are considering making substantial capital investments in order
to create new jobs and grow their businesses. These two projects have been
coordinated through both my office at the Van Buren Chamber of Commerce and
through Tim Allen, President of the Fort Smith Regional Chamber of Commerce.
Both of these projects qualify for an Arkansas Economic Development Commission
(AEDC) incentive called Tax Back. Tax Back allows an exemption of the state and local
sales tax on materials and equipment for qualifying expansion projects. This incentive is
competitive with other surrounding states and is important to keeping jobs here in
Arkansas.
At this time we are requesting resolutions from the City of Van Buren and from the
Crawford County Quorum Court to support these projects by waiving the local sales tax
only on the qualifying purchases for these projects. Without local support of the projects
the AEDC will not provide the Tax Back incentive. As with all current economic
development projects in the state of Arkansas, state incentives have to have some type
of local match.
Project 1:
Arkansas Lamp
1701 South 28th Street
Van Buren, Arkansas
Their investment includes new construction and equipment for their warehousing and
manufacturing operation in the $300K dollar range. This expansion would result in
approximately 10 new jobs with wages in the $11 per hour range.
Project 2
Engineered Fabricated Solutions
2407 Lost Beach Crossing
Van Buren, Arkansas
Their investment includes new equipment for their existing manufacturing operation in
the $800K range. This expansion would result in approximately 10 new jobs with wages
in the $18 per hour range.
I would like to point out two things: (1) These are not sales tax dollars that are in the
current local city or county budgets. The amount of sales tax funds on these expansions
are a fraction of the resulting annual payrolls that will be created if these projects are
approved. (2) If approved at the local and state level, the administration of the incentive
is the responsibility of the AEDC and the Arkansas Department of Finance and
Administration (ADFA). The qualifying company must show documented proof of the
material and equipment purchases and sales tax paid. The qualifying company must
also provide proof that the jobs were actually created as stated in their applications.
Once the company has submitted its required documentation to the State, then ADFA
will issue their Tax Back incentive payments.
If you, or any members of the Van Buren City Council have any further questions about
these projects and our request for your supporting resolutions, please contact me. We
would like to request that the resolutions be presented and supported at the City's
February 24 City Council Meeting.
Respectfully,
ackie Krutsch
Executive Director
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