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Home My WebLink About149-10 RESOLUTIONRESOLUTION NO. 149-10 A RESOLUTION TO AMEND RESOLUTION NO. 98-09 TO CHANGE ALL REFERENCES FROM "ARKANSAS WESTERN GAS COMPANY" TO "SOURCEGAS, LLC" WHEREAS, the City of Fayetteville received an application from the Arkansas Western Gas Company dated March 26, 2009 requesting that the City of Fayetteville authorize the Department of Finance and Administration to refund sales tax back to the Arkansas Western Gas Company for equipment purchased for its enlarged call center on Millsap in Fayetteville; and WHEREAS, the City Council agreed to such refund for the Arkansas Western Gas Company pursuant to its express request; and WHEREAS, Arkansas Western Gas has been acquired or merged into SourceGas, LLC and the Department of Finance and Administration will not refund the local sales tax to "SourceGas, LLC" until the authorizing Resolution is amended to provide that the sales tax refund should go to SourceGas, LLC rather than to Arkansas Western Gas Company. 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 amends Resolution No. 98-09 (attached) passed on April 21, 2009, by replacing all references to "Arkansas Western Gas Company" with "SourceGas, LLC" so that SourceGas, LLC will be refunded the local one penny sales tax it used to purchase to equipment for its expanded call center at 655 East Millsap in Fayetteville, Arkansas. The local bond penny sales tax shall not be refunded and will be unaffected by this Resolution authorizing the refunding of the one penny operating sales tax to SourceGas, LLC. PASSED and APPROVED this 17th day of August, 2010. APPROVED: ATTEST: B :O ' ELD J I ' 1 ; , Mayor By: i9d4 . SONDRA E. SMITH, City Clerk/Treas �.�`` RK/TR�''%, oT 0,e • • .U• •"3:3: • • FAYETTEVILLE: • %970'..R/KANSP�: °J' AGENDA REQUEST FOR: COUNCIL MEETING OF AUGUST 17, 2010 FROM: LIONELD JORDAN, MAYOR ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A Resolution To Amend Resolution No. 98-09 To Change All References From "Arkansas Western Gas Company" To "SourceGas, LLC" APPROVED FOR AGENDA: '24, 26 to Date 1-M-- It) Finance Director Date 'x'.29-/� hiefo Staff o Date yor 01) J Date 07-29-10P01:52 RCVD FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Lioneld Jordan, Mayor Sondra Smith, City Clerk FROM: Kit Williams, City Attorney DATE: July 29, 2010 RE: Sales Tax Refund Approved for Arkansas Western Gas on April 21, 2009 (Resolution No. 98-09) On March 26, 2009, Mr. Charles V. Stevens, Vice -President of Operations of Arkansas Western Gas Company signed a "Tax Back Application" listing the Arkansas Western Gas Company as the applicant for this refund of state and local sales taxes spent on equipping its enlarged call center on Millsap Road in Fayetteville. Mr. Stevens then requested that Washington County and the City of Fayetteville pass Resolutions to approve and certify the participation of the Arkansas Western Gas Company in the Arkansas Tax Back Program and to authorize the Arkansas Department of Finance and Administration to refund the local sales tax that Arkansas Western Gas would pay to buy more than two million dollars worth of equipment for its expanded call center. The Fayetteville City Council agreed to refund the one penny operation sales tax back to Arkansas Western Gas, but not the bond penny (which was all pledged to paying off the sewer, street, and trail bonds). Accordingly, the City Council passed and Mayor Jordan signed Resolution No. 98-09 authorizing this refund to the Arkansas Western Gas Company per their application and request. Arkansas Western Gas Company has been purchased by or merged into SourceGas, LLC and wants the Sales Tax Refund to go to SourceGas, LLC. The Arkansas Department of Finance and Administration will not refund to "SourceGas, LLC" unless we amend our authorizing Resolution to change "Arkansas Western Gas" to "SourceGas, LLC". Accordingly, Mayor Jordan has asked me to draft a Resolution to amend your initial Resolution to substitute "SourceGas, LLC" for "Arkansas Western Gas Company." Attached is that proposed Resolution. Fayetteville • Chamber of Commerce To: Mayor Lioneld Jordan From: Chung Tan, Manager, Economic Development Date: July 29th, 2010 Subject: Resolution 98-09 Dear Mayor Jordan: In April 2009, the City Council passed Resolution 98-09 to approve the Sales and Use Tax Refund for Arkansas Western Gas (AWG). Please see attached resolution. There arises an issue because the name of the company to be written on the resolution should have been AWG's parent company, SourceGas, LLC instead of AWG. The Department of Finance Administration is unable to process the refunds because of the incorrect name used. I request that the City make a change in the Resolution to reflect the correct name on the resolution. Thank you for your kind assistance in this matter. 123 W. Mountain/PO Box 4216, Fayetteville, AR 72702 Tel: (479) 521-1710; Fax: (479) 521-1791; www.fayettevillear.com RESOLUTION NO. A RESOLUTION TO AMEND RESOLUTION NO. 98-09 TO CHANGE ALL REFERENCES FROM "ARKANSAS WESTERN GAS COMPANY" TO "SOURCEGAS, LLC" WHEREAS, the City of Fayetteville received an application from the Arkansas Western Gas Company dated March 26, 2009 requesting that the City of Fayetteville authorize the Department of Finance and Administration to refund sales tax back to the Arkansas Western Gas Company for equipment purchased for its enlarged call center on Millsap in Fayetteville; and WHEREAS, the City Council agreed to such refund for the Arkansas Western Gas Company pursuant to its express request; and WHEREAS, Arkansas Western Gas has been acquired or merged into SourceGas, LLC and the Department of Finance and Administration will not refund the local sales tax to "SourceGas, LLC" until the authorizing Resolution is amended to provide that the sales tax refund should go to SourceGas, LLC rather than to Arkansas Western Gas Company. 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 amends Resolution No. 98-09 (attached) passed on April 21, 2009, by replacing all references to "Arkansas Western Gas Company" with "SourceGas, LLC" so that SourceGas, LLC will be refunded the local one penny sales tax it used to purchase to equipment for its expanded call center at 655 East Millsap in Fayetteville, Arkansas. The local bond penny sales tax shall not be refunded and will be unaffected by this Resolution authorizing the refunding of the one penny operating sales tax to SourceGas, LLC. PASSED and APPROVED this 17th day of August, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer RESOLUTION NO. 98-09 A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF ARKANSAS WESTERN GAS COMPANY IN THE ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE DF&A TO REFUND CITY SALES TAX BACK TO ARKANSAS WESTERN GAS COMPANY WHEREAS, Arkansas Western Gas Company is planning to relocate a major call center to the former Proctor & Gamble building on Millsap which will create 80 new jobs; and WHEREAS, in order to certify Arkansas Western Gas Company to participate in the sales and use tax refund program, either Washington County or the City of Fayetteville, or both, must "(s)pecify that the Department of Finance and Administration is authorized to refund local sales taxes to the qualified business." {A.C.A. § 15-4-2706 (d)(B)(ii)};.and WHEREAS, the City of Fayetteville or Washington County must also endorse Arkansas Western Gas Company's participation in this state and local sales and use tax refund program; and WHEREAS, bond indentures prevent diversion of sales tax proceeds from the city's bonded penny sales and use tax. 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 Arkansas Western Gas Company's participation in the sales and use tax refund program authorized by A.C.A. § 15-4-2706 (d) in relation to its equipping of a new call center located at Millsap in Fayetteville, Arkansas. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby specifies that the Department of Finance and Administration is authorized to refund the non -bonded penny city sales tax to Arkansas Western Gas Company for qualified equipment purchased for its expanded call center at 655 East Millsap in Fayetteville, Arkansas. \\`o��Q,,,,,,,P�v�af lck‘‘ \:° frc " 9c:1): e. ° aF o- :FAYETTEVILLE: Bv' J `�'`z+ --✓ By; , -C11- --) �` O��nG , Mayor SO RA E. SMITH, City Clerk/Treasurer PASSED and APPROVED this 21s` day of April, 2009. APPROVED: ATTEST: Tax Back Application Applicant -ARKAINSAS Arkansas Western Gas Company Local Operating Name of Firm P O Box 13288 Fayetteville, AR 72703-1002 Mailing Address 655 E Millsap City/State/Zip Fayetteville, AR 72703 Washington Physical Location Glenn Morgan, Director, Special Projects City/State/Zip County 479-582-8225 479-582-8277 Name and Title of Company Contact Phone Fax Complete Company Name, if company is filing for tax credit under a different name Taxpayer Consultant (Optional) Name of Consultant filing this application Phone Company Name of Consultant Project Cost Estimate Mailing Address City/State/Zp Project Cost Estimate Land $ Building (a) New construction •(b) Existing building $ Equipment $2,211,724 Other (Describe in the project plan.) $ TOTAL $2,211,724 NOTE: This application MUST include a project plan that details, in full, the proposed facility, equipment, land and "other" expenditures pertaining to this project. Please use the attached template. Employment Present employment: 342 Number of new employees resulting from this project: 80 Average annual payroll of new, full-time, permanent employees: $2,365,452 NOTE: To qualify for the sales and use tax refund, the business MUST commit to additional job creation under the Advantage Arkansas Program; or, if offered by the director of the Arkansas Department of Economic Development, the Create Rebate Program or the ArkPlus Program. The requisite payroll for new permanent employees must be reached within 24 -months. The 24 -month time period starts with the signing of this financial incentive agreement by the Department of Economic Development. Tax Back (Section 15-4-2706(d) of the Consolidated Incentive Act of 2003 Application (Revised November 2003) Page 1 of 4 SIC/NAICS Classification 1561421 Customer Care Call Center Description of principal business activity, products manufactured, etc. NOTE: Information contained in this application is subject to audit by the Arkansas Department of Finance and Administration. If the SIC/NAICS classification is found to be inaccurate and does not qualify, the business will be decertified and shall not receive any benefits under the program. I.D. Numbers Employer's Federal I.D. Number 71-0521274 Arkansas Sales or Consumer Use Tax Number 0045841-78-00I What percentage of your gross sales are retail sales to the public? 0% If you are a computer-related company, a distribution center or a motion picture company, what percentage of sales is out of state? 4I(TIFICATION BEFORE ME, the undersigned authority, Charles V. Stevens Company Official personally came and appeared and being duly sworn did depose and say that he/she is Vice -President — AWG Operations of Arkansas Western Gas Company Company This affidavit is made for the specific purpose of verifying that the information contained in these two pages is true and correct. The company does hereby agree to report new job creation and investment figures annually to the Arkansas Department of `c mic Development for the term of the incentive agreement. Title Vice -President — AWG Operations Signature of Company Official Title r, • Nota,sygDISON COUNTY r AMY COMM SSlON EXPIRES: 01-01-15 day of va tek , 20 e9 My Commission expires Date I X do 0 do not hereby authorize the Arkansas Department of Economic Development to release to the press the new job creation and investment figures. (Signing this authorization to release job creation and investment numbers is not mandatory. However, information about benefits received is public information and may be obtained through a Freedom of Information request filed with the Arkansas Department of Finance and Administration.) Signature of Company Official Vice -President — AWG Operations Title Date Tax Back (Section 15-4-2706(d) of the Consolidated Incentive Act of 2003 Application (Revised November 2003) Page 2 of 4 Tax Back Resolution AR ANSAS RESOLUTION No. /040 RESOLUTION OF THE CITY OF FAYETTEVILLE CERTIFYING ARKANSAS WESTERN GAS COMPANY, 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 Department of Economic Development; and WHEREAS, ARKANSAS WESTERN GAS COMPANY located at 655 EAST MILSAP, Fayetteville, Arkansas has sought to participate in the program and more specifically has requested benefits accruing from THE PURCHASE OF EQUIPMENT WHEREAS, ARKANSAS WESTERN GAS COMPANY has agreed to furnish the local government all necessary information for compliance. NOW THEREFORE BE IT RESOLVED BY THE CITY OF FAYETTEVILLE, ARKANSAS, THAT: 1. ARKANSAS WESTERN GAS COMPANY be endorsed by the State of Arkansas for benefits from the sales & use tax refunds as provided by Section 15-4-2706(d) of the Consolidated Incentive Act of 2003. 2. The Department of Finance and Administration is authorized to refund local sales and use taxes to ARKANSAS WESTERN GAS COMPANY. 3. This resolution shall take effect immediately. Date Passed: CIUG /% 40/6 Attest: .pry City Clerk `````N I,_ �%�.e ®�=C ("3 • ° s ° :FAYETTEVILLE: �'=Vs.9,QKANSPS.* /-- Tax Back Samplelt47 40ortEGea Page 1 of 1 Lioneld Jor Mayor