ORDINANCE NO. 22-11099
AN ORDINANCE EXEMPTING CERTAIN PROPERTY IN THE CITY OF SALINA, KANSAS, FROM AD VALOREM TAXATION FOR ECONOMIC DEVELOPMENT PURPOSES PURSUANT TO ARTICLE 11, SECTION 13 OF THE KANSAS CONSTITUTION; PROVIDING THE TERMS AND CONDITIONS FOR AD VALOREM TAX EXEMPTION; AND DESCRIBING THE PROPERTY SO EXEMPTED.
WHEREAS, Article 11, Section 13 of the Kansas Constitution permits the governing body of any city by ordinance to exempt from ad valorem taxation all or any portion of the appraised valuation of all buildings, together with the land upon which such buildings were located, and all tangible personal property associated therewith used exclusively by a business for the purpose of manufacturing articles of commerce for not more than ten (10) calendar years after the calendar year in which the business commences its operations or in which expansion of an existing business is completed; and
WHEREAS, the governing body of the City of Salina, Kansas (the “City”), after conducting a public hearing pursuant to published notice as provided by law, has determined that the building additions constructed by McShares, Inc. (the “Company”) and used exclusively in the Company's business of manufacturing articles of commerce should be granted tax exemption for economic development purposes; and
WHEREAS, the governing body of the City has by previously adopted resolution made the findings of fact required by K.S.A. 79-251;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS:
Section 1. Grant of Exemption. In accordance with Article 11, Section 13 of the Kansas Constitution, and pursuant to K.S.A. 79-251, Resolution No. 22-8022 of the City, the governing body of the City hereby determines that the following described property should be granted a 100% ad valorem tax exemption, provided no exemption may be granted from the ad valorem tax levied by a school district pursuant to the provisions of K.S.A. 72-53,113 and amendments thereto, and subject to proper application to and approval of the State Board of Tax Appeals, and further subject to the conditions set forth herein:
The building improvements constructed beginning in 2022 on the following property (the “Project”):
ALL OF LOT FOUR (4) EXCEPT THE WEST 203 FEET THEREOF, AND THE EAST 137 FEET OF THE WEST 340 FEET OF THE SOUTH 230.95 FEET OF THE NORTH 385.41 FEET OF LOT FIVE (5), IN THE BROWN AND BROWN ADDITION TO THE CITY OF SALINA, SALINE COUNTY, KANSAS.
The exemption shall commence as of January 1 following completion of the Project and shall be for a term of 10 years. Continuation of the ad valorem tax exemption shall be subject to compliance by the Company with the terms and conditions of the Tax Incentive Agreement herein described, and the exemption may be withdrawn by the governing body upon a finding that the Company is no longer entitled to such exemption under the terms of the Tax Incentive Agreement.
Section 2. Authorization of Tax Incentive Agreement. The form of the Tax Incentive Agreement presented to the governing body of the City on this date is hereby approved, with such minor corrections or modifications as may be approved by the Mayor, such approval to be conclusively evidenced by execution of the agreement by the Mayor and the City Clerk, and the Mayor and City Clerk are hereby authorized to execute the Tax Incentive Agreement on behalf of the City.
Section 3. Transferability of Exemption. If there is a change in ownership of the exempt property, the ad valorem tax exemption granted by this Ordinance is not transferable without the express approval of the City.
Section 4. Effective Date. This Ordinance shall be in full force and effect from and after its passage, execution by the Mayor, and publication in the official city newspaper as provided by law.