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RES NO 04-04-2016 CITY OF VAN BUREN,ARKANSAS RESOLUTION NO. `t - 4 -2016 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, Dillmeier Enterprises, Inc., located at 2903 Industrial Park Road, 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, Dillmeier Enterprises, Inc., 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: Dillmeier Enterprises, Inc., 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 Dillmeier Enterprises, Inc. IN WITNESS WHEREOF, the City of Van Bu - Arkansas, by its City Council, did pass, approve, and adopt, by a vote of (Q for and Q against, - i regoing Resolution at regular meeting held on the 18`h of April 2016. Robert-D. Freeman Mayor AT ,STED: APP'‘IreS 0 FORM: ettidt .e2J ip4b, _ Barbie Curtis Candice A. Settle City Clerk/Treasurer City Attorney VAN Bur,: CHAMBB? OFC April 11, 2016 Honorable Bob Freeman, Mayor and Van Buren City Council Members 1003 Broadway Van Buren, Arkansas 72956 Dear Mayor Freeman and City Council Members: 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. We are pleased to announce that Dillmeier Enterprises, Inc. is expanding their operation here in Crawford County. They are making substantial capital investments in order to create new jobs and grow their businesses. This project has 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. This project qualifies 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 a resolution from the Van Buren City Council to support these projects by waiving the local sales tax only on the qualifying purchases for this project. The Crawford County Quorum Court will also need to pass a similar resolution to support this company. 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 support or local match. Their investment includes new equipment for their existing manufacturing operation in the$600K range. This expansion would result in approximately 20 new jobs with wages in the $12 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, ADFA will issue their Tax Back incentive payments. If you, or any members of the 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 resolution be presented and supported at the City's April 18, 2016 Council Meeting. Respectfully, Jackie Krutsch Executive Director