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Resolution

NO. 78

A Resolution approving an Industrial Facilities Exemption Certificate on behalf of WKW Roof Rail Systems LLC for real and tangible personal
property located at 215 N. Hill Brady Road in Industrial District No. 2, and having an estimated cost of $54,491,210.
BATTLE CREEK, MICHIGAN - 2/3/2015
Resolved by the Commission of the City of Battle Creek:
On December 30, 2014, an application was submitted on behalf of WKW Roof Rail Systems LLC for an Industrial Facilities Tax Exemption
Certificate under Act 198 of the Public Acts of 1974, as amended, with respect to certain industrial property set forth in the application located
within the boundaries of Industrial Development District No. 2 established by Resolution December 2, 1975; and
After notice was given as required by law, the City Commission of the City of Battle Creek held a public hearing on the 3rd of February at 7:00
PM and the opportunity to be heard was offered to the Assessor and representatives of all taxing units affected by the application referred to
above, as well as to all other interested parties; and
It appears to this Commission that the application filed on behalf of WKW Roof Rail Systems LLC for an Industrial Facilities Tax Exemption
Certificate with respect to the property described in it complies in all respects with the requirements of the Act; and the WKW Roof Rail
Systems LLC complies with the Citys Equal Employment Opportunity Policy; and now
1. The Commission determines that the granting of this Industrial Facilities Tax Exemption Certificate required by the application of WKW
Roof Rail Systems LLC is in keeping with the Commissions policy in granting these certificates, effective on June 10, 1986.
2. The Commission determines that the granting of this Industrial Facilities Tax Exemption Certificate requested by WKW Roof Rail Systems
LLC together with all other Industrial Facilities Exemption Certificates presently in effect, will not have the effect of substantially impeding the
operation of the City of Battle Creek and will not impair the financial soundness of any taxing unit which levies ad valorem property taxes in the
City of Battle Creek.
3. The application of WKW Roof Rail Systems LLC for an Industrial Facilities Tax Exemption Certificate with respect to the property described
in it has an estimated cost of $54,491,210 for real and tangible personal property and is approved for twelve (12) years after completion.
4. The Commission determines that the facilities, which are subject to the previously mentioned application, were not installed more than six
months prior to filing of the application and will be completed in not more than two years.
5. The aggregate SEV of real and personal property exempt from ad valorem taxes within the City of Battle Creek after granting this certificate
will exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted.
6. The application of WKW Roof Rail Systems LLC together with all other pertinent documents as required by the Act, including proper
evidence of this Commissions approval of the application shall be forwarded to the Michigan State Tax Commission by the City Clerk in
accordance with the requirements of this Act.

I, Victoria Houser, City Clerk of the City of Battle Creek, hereby certify the above and foregoing is a true and correct copy of a Resolution
adopted by the Battle Creek City Commission at a Regular meeting held on February 3, 2015.

Victoria Houser
Battle Creek City Commission
2/3/2015

Action Summary
Staff Member:

Steven M. Hudson

Department:

Assessing

SUMMARY

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A Resolution approving an Industrial Facilities Exemption Certificate on behalf of WKW Roof Rail Systems LLC for real and tangible
personal property located at 215 N. Hill Brady Road in Industrial District No. 2, and having an estimated cost of $54,491,210.
BUDGETARY CONSIDERATIONS
CITY OF BATTLE CREEK
Assessor's Application Review & Tax Analysis for Industrial Facilities Tax Exemption Request
Applicant:

WKW ROOF RAIL SYSTEMS, LLC

Location of Facility:

215 N. Hill Brady Road

Application Filed:

12/30/2014

Industrial Development District:

IDD No. 2

Special District(s) Containing Facility:

TIFA

Type of Facility:
Description of Facility:

NEW

Real property improvements include converting an existing building used as warehouse to an industrial automotive
supply components facility. Equipment purchases will enable production and assembly of manufactured parts.
Property Type
Real

Estimated
Construction
Construction
# of Years
Investment
Begins
Ends
Eligible
$4,634,497
7/18/2014
12/30/201612
$49,856,713

Total:

$54,491,210NOTE: Abatement ends 12 years after project completion.

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
TOTALS

12/30/201612

12/30/2027

Personal*

Tax Year

7/18/2014

Abatement Ends

12/30/2027

ESTIMATED PROPERTY TAXES OVER LIFE OF CERTIFICATE

Taxable
Taxes Without Taxes With
Taxes
Abatement Years
Value
Abatement
Abatement
Abated
$1,287,284
$45,422
$24,834
$20,5881st Year Abatement
$2,317,249
$163,811
$89,629
$74,1822nd Year Abatement
$2,317,249
$163,811
$89,629
$74,1823rd Year Abatement
$2,317,249
$163,811
$89,629
$74,1824th Year Abatement
$2,317,249
$163,811
$89,629
$74,1825th Year Abatement
$2,317,249
$163,811
$89,629
$74,1826th Year Abatement
$2,317,249
$163,811
$89,629
$74,1827th Year Abatement
$2,317,249
$163,811
$89,629
$74,1828th Year Abatement
$2,317,249
$163,811
$89,629
$74,1829th Year Abatement
$2,317,249
$163,811
$89,629
$74,18210th Year Abatement
$2,317,249
$163,811
$89,629
$74,18211th Year Abatement
$2,317,249
$163,811
$89,629
$74,18212th Year Abatement
$2,317,249
$163,811
$89,629
$74,18213th Year Abatement
$2,011,154
$1,100,381
$910,772

Expected # of jobs to be created within 2 years of completion:

186

Expected # of jobs to be retained as a result of this project:

19

City's Current Abatement Ratio (including this application):

Proposed TOTAL Taxes to be Abated over Life of Certificate:
Real
Personal
Full
63.6266
39.6266Submitted by:
Millage**
IFT
34.8132
19.8132
Millage**
*New personal property becomes exempt in 2016
**Does not include 1% administrative fee

21.22%
$910,772

Steven Hudson, MMAO 4

City Assessor

ANALYSIS IS FOR ILLUSTRATIVE PURPOSES ONLY

ACTUAL AMOUNT AND DURATION OF INCENTIVE SUBJECT TO CITY COMMISSION APPROVAL
HISTORY, BACKGROUND and DISCUSSION
This resolution approves a new Industrial Facilities Tax Exemption for WKW Roof Rail Systems LLC.
DISCUSSION OF THE ISSUE

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POSITIONS
ATTACHMENTS:
File Name

Description

WKW_IFT_Application_12-30-14.pdf

WKW Roof Rail System LLC IFT Application

Resolution_64_Setting_Public_Hearing_for_WKW_Roof_Rail_Systems_LLC.pdf

Resolution 64 Setting Public Hearing For WKW IFT Application

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