HomeMy WebLinkAbout190-10 RESOLUTIONRESOLUTION NO. 190-10
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF
DELTA GROUP ELECTRONICS, INC. IN THE ARKANSAS TAX BACK
PROGRAM AND TO AGREE TO AUTHORIZE DF&A TO REFUND CITY
SALES TAX BACK TO DELTA GROUP ELECTRONICS, INC.
WHEREAS, Delta Group Electronics, Inc. is planning to relocate its plant to Fayetteville
and will build a new facility for approximately 125 employees, 75 of which are new employees;
and
WHEREAS, in order to certify Delta Group Electronics, Inc. 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 Delta
Group Electronics, Inc.'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
Delta Group Electronics, Inc.'s participation in the sales and use tax refund program authorized
by A.C.A. §15-4-2706 (d) in relation to its building and equipping of a new manufacturing
facility 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 Delta Group Electronics, Inc. for qualified construction and manufacturing
equipment purchased for its new facility in Fayetteville, Arkansas.
PASSED and APPROVED this 2nd day of November, 2010.
APPROVED:
Bv:
1 ELD J c� i AN, Mayor
ATTEST:
° C,\1 Y OF °,;
oV ° ° N
: FAYETfEVILLE: ry
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C'(?,‘ By:
SONDRA E. SMITH, City Clerk/Treasurer
Don Marr, Chief of Staff
Submitted By
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
11/2/2010
City Council Meeting Date
Agenda Items Only
Mayor's Administration
Division
Action Required:
Chief of Staff
Department
Resolution of the City of Fayetteville Certifiying Local Government Endoresement ofDelta Group Electronics Inc. to
participate in the Tax Back Program (As Authorized by Section 15-4-2706 (d) of the Consolidated Incentive Action of
2003) and authorizing the Department of Finance and Administration to refund local sales and use taxes to Delta
Group Electronics Inc.
Cost of this request
Account Number
Project Number
Budgeted Item
Category / Project Budget
Program Category / Project Name
Funds Used to Date Program / Project Category Name
Remaining Balance Fund Name
Budget Adjustment Attached
10 IS-- '10 Previous Ordinance or Resolution #
Depa ent Direct • Date
City Attorney
Finance d Internal Services Director
Chie f Staff
Date
16 -Ig -2010
Date
Date
Original Contract Date:
Original Contract Number:
Received in City
Clerk's Office
10-115-10P03:58 RCVD
4 tsv
Comments:
Revised January 15, 2009
aTheylle
City Council Agenda Memo
City Council Meeting Date:
November 2, 2010
To: Mayor and Members of the City Council
From: Don Marr, Chief of Staff
Thru: Mayor Jordan
Date: 10-15-2010
Subject: Tax Back Program Request
Recommendation:
The City Staff and Administration recommend on behalf of the Mayor's office that the City Council
of the City of Fayetteville, AR pass a resolution in support of Delta Electronics request to
participate in the State of Arkansas Tax Back Program.
Background:
The City of Fayetteville, AR was contacted by Steve Clark, CEO & President of the Fayetteville
Chamber of Commerce, Chung Tan the City of Fayetteville's Economic Development
Representative Contractor through the Fayetteville Chamber of Commerce Economic
Development contract, and Business Owner of Delta Group Electronics Inc. contacted the City of
Fayetteville seeking the City's endorsement of Delta Group Electronics Inc to Participate in the
Tax Back Program of the Consolidated Incentive Act of 2003.
Delta Group Electronics Inc is a company which is relocating to Fayetteville, AR from Prairie
Grove AR and will be constructing a new facility that will employ 125 employees. (relocating 50
employees and new hires of approximately 75 employees) Delta Group Electronics Inc has
chosen a location at Mountain Ranch Development west of the 1-540 By Pass, south of Wedington
& north of MLK Blvd. Delta Group Electronics Inc new manufacturing plant will be LEED
certifiable and located within the City of Fayetteville. This tax back program request is a
requirement in order for the company to begin receiving the State of Arkansas AEDC's Grant
funds.
Budget Impact:
We believe the budget impact for the City of Fayetteville will be neutral. We believe the job growth
will spur new sales tax growth from new employee spending and the sales tax we are forgoing
was Sales Tax that we could possibly not have at all if the expansion did not occur or the
expansion was done by the company relocating to another municipality.
113 West Mountain 72701 (479) 575-8323 accessfayetteville.org
TDD (Telecommunications Device for the Deaf) (479)-521-1316
RESOLUTION NO.
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF
DELTA GROUP ELECTRONICS, INC. IN THE ARKANSAS TAX BACK
PROGRAM AND TO AGREE TO AUTHORIZE DF&A TO REFUND CITY
SALES TAX BACK TO DELTA GROUP ELECTRONICS, INC.
WHEREAS, Delta Group Electronics, Inc. is planning to relocate its plant to Fayetteville
and will build a new facility for approximately 125 employees, 75 of which are new employees;
and
WHEREAS, in order to certify Delta Group Electronics, Inc. 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 Delta
Group Electronics, Inc.'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
Delta Group Electronics, Inc.'s participation in the sales and use tax refund program authorized
by A.C.A. § 15-4-2706 (d) in relation to its building and equipping of a new manufacturing
facility 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 Delta Group Electronics, Inc. for qualified construction and manufacturing
equipment purchased for its new facility in Fayetteville, Arkansas.
PASSED and APPROVED this 2"d day of November, 2009.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer