HomeMy WebLinkAbout235-08 RESOLUTIONRESOLUTION NO. 235-08
A RESOLUTION CERTIFYING LOCAL GOVERNMENT ENDORSEMENT
OF INEOS BIO, A DIVISION OF INEOS USA LLC TO PARTICIPATE IN THE
TAX BACK PROGRAM (THE CONSOLIDATED INCENTIVE ACT OF 2003,
A.C.A. § 15-4-2706(D))
WHEREAS, the local government must endorse a business to participate in the Tax
Back Program and benefit from the refunds/tax credits as provided in the Consolidated Incentive
Act of 2003, A.C.A. § 15-4-2706(d); and
WHEREAS, the local government must authorize the refund of local sales and use tax as
provided in the Consolidated Incentive Act of 2003; and
WHEREAS, said endorsement must be made on specific form available from the
Arkansas Department of Economic Development; and
WHEREAS, INEOS Bio, a Division of INEOS USA LLC, located at 1650 Pump Station
Road, Fayetteville, Arkansas has sought to participate in the program and more specifically has
requested benefits accruing from modemizing the facility; and
WHEREAS, INEOS Bio, a Division of INEOS USA LLC 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 FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby endorses
INEOS Bio, a Division of INEOS USA LLC for benefits from the refunds/tax credits as provided
in the Consolidated Incentive Act of 2003, A.C.A. § 15-4-2706(d).
Section 2. That the City Council of the City of Fayetteville, Arkansas hereby authorizes
the Department of Finance and Administration to refund local sales and use taxes to INEOS Bio,
a Division of INEOS USA LLC.
PASSED and APPROVED this 16th day of December, 2008.
APPROVED:
By
DAN COODY, Mayor
ATTEST:
By: LAA
0SoYO s-*
=V?3sc:FAYETTEVILLE::.'z• -,
J
S A E. SMITH, City Clerk/Treasurer
Ray M. Boudreaux
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
City Council Meeting Date
Aviation & Economic Development
Division
Action Required:
,Pts
0135
fit1t03 816/
X t! T r Jam'
General Government
Department
Action Required: Approve a Local Government Endorsement of INEOS Bio, a Division of INEOS USA LLC, to
participate in the State Tax Back incentive program.
Cost of this request
Account Number
Project Number
Budgeted Item
Funds Used to Date
Remaining Balance
Budget Adjustment Attached
Program Category / Project Name
Program / Project Category Name
Fund Name
Department Director
Dat
7Of 4h8City Attorney te
Finance and Internal Service Director
Mayor
It -2S-157
Date
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City Clerk'
I i -2I- 3'
i
Received in Mayor's Office /E FRED
1
Comments:
•
•
City Council Meeting of: 12/2/08
Agenda Item No.:
ri e te\ 1II AVIATION & ECONOMIC DEVELOPMENT
ARKANSAS FAYETTEVILLE EXECUTIVE AIRPORT • DRAKE FIELD
CITY COUNCIL AGENDA MEMO/STAFF CONTRACT REVIEW MEMO
TO: Mayor and City Council
THRU: Staff/Contract Review Committee
FROM: Ray M. Boudreaux, Director, Aviation and Economic Development
DATE: November 20, 2008
SUBJECT: Approval of Tax Back application from INEOS Bio, A DIVISION OF
INEOS USA LLC Signature of the Mayor and Clerk.
RECOMMENDATION: Approve resolution certifying INEOS Bio, A DIVISION OF INEOS USA
LLC to participate in the Arkansas Tax Back Program. The Arkansas Tax Back program refunds sales and
use taxes to the business for building materials and taxable equipment connected with the eligible project.
This is an AEDC incentive program. It requires resolution of the local governing body for participation.
DISCUSSION: INEOS Bio now occupies part of the Bio Engineering Resources, Inc. facility in the
Fayetteville Industrial Park. INEOS Bio is an exciting new business within INEOS Technologies. It was
created on July 1st 2008 to commercialize a highly innovative technology platform for the production of
clean biofuel and low-cost chemical intermediates from a wide range of low-cost carbon materials
including household waste. Their initial focus is the commercialization of the world's leading second
generation bioethanol technology process to serve the global renewable transport fuels market. Commercial
plants will efficiently convert a broad range of low-cost organic carbon materials, including the
biodegradable portion of municipal wastes and organic commercial and industrial wastes into clean,
renewable bioethanol fuel. The bioethanol produced will deliver substantial greenhouse gas savings
compared to gasoline. Their technology allows clean renewable fuel production to be de -coupled from
food production in what they believe is a genuinely sustainable way.
The technology platform will be extended in due course to manufacture advanced fuels and valuable
chemical intermediates from a wider range of low-cost carbon materials.
The formation of INEOS Bio and its selection of Fayetteville as its US headquarters, is a significant
landmark, demonstrating the commitment of INEOS to transform the renewable fuels and chemicals
arenas, with a potentially world -changing technology. INEOS Bio is an excellent addition to our pursuit of
Green Valley business and Industry. They plan to invest $1.3M and hire an additional 12 employees.
BUDGET IMPACT: None.
Attachments: Staff Review Form
Tax Back Resolution
4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701
479.718.7642 • 479.718.7646 FAX • wvrw.accessfayetteville.org/govemmentlaviation
airport_economic_development@d.fayetteville.ar.us
RESOLUTION No.
A RESOLUTION CERTIFYING LOCAL GOVERNMENT ENDORSEMENT
OF INEOS Bio„ A DIVISION OF INEOS USA LLC TO PARTICIPATE IN THE
TAX BACK PROGRAM (THE CONSOLIDATED INCENTIVE ACT OF 2003,
A.C.A.§ 15-4-2706(D)).
WHEREAS, the local government must endorse a business to participate in the Tax
Back Program and benefit from the refunds/tax credits as provided in the Consolidated Incentive
Act of 2003, A.C.A. § 15-4-2706(d); and
WHEREAS, the local government must authorize the refund of local sales and use tax as
provided in the Consolidated Incentive Act of 2003; and
WHEREAS, said endorsement must be made on specific form available from the
Arkansas Department of Economic Development; and
WHEREAS, INEOS Bio„ A DIVISION OF INEOS USA LLC, located at 1650 Pump
Station Road, Fayetteville, Arkansas has sought to participate in the program and more
specifically has requested benefits accruing from modernizing the facility; and
WHEREAS, INEOS Bio„ A DIVISION OF INEOS USA LLC has agreed to furnish the
local government all necessary mfonmation for compliance.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby endorses
INEOS Bio„ A DIVISION OF INEOS USA LLC for benefits from the refunds/tax credits as
provided in the Consolidated Incentive Act of 2003, A.C.A. § 15-4-2706(d).
Section 2. That the City Council of the City of Fayetteville, Arkansas hereby authorizes
the Department of Finance and Administration to refund local sales and use taxes to INEOS Bio„
A DIVISION OF INEOS USA LLC.
PASSED and APPROVED this 16`h day of December, 2008.
APPROVED: ATTEST:
By: By:
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
Clarice Pearman - Res. 235-08
From:
To:
Date:
Subject:
CC:
Attachments:
Clarice Pearman
Boudreaux, Ray
12.19.08 5:31 PM
Res. 235-08
Audit
Audit
Pagel of l
Ray:
Attached is a copy of the above resolution passed by City Council regarding INEOS Bio. Please let me know if there is
anything else needed for this item. Have a good day.
Thanks.
Clarice
file://C: \Documents%20and%20Settings\cpearman.000\Local%20Settings\Temp\XPgrpwise\494BDA82... 12.19.08