HomeMy WebLinkAbout153-17 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Resolution: 153-17
File Number: 2017-0386
B -UNLIMITED, INC.:
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF B -UNLIMITED, INC. IN
THE ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE THE ARKANSAS
DEPARTMENT OF FINANCE AND ADMINISTRATION TO REFUND CITY SALES TAX BACK TO
B -UNLIMITED, INC. FOR QUALIFIED PURCHASES
WHEREAS, B -Unlimited, Inc., a custom collegiate licensed apparel company headquartered in Fayetteville
which has seen growth in sales from $500,000.00 in 2009 to a projected $10,000,000.00 in 2017, has
purchased property at 2291 South School Avenue and plans a total investment of $300,000.00 in new
construction, improvements, and equipment modernization; and
WHEREAS, B -Unlimited, Inc. is committed to creating 16 new jobs paying an average hourly wage of
$15.02 for a total annual payroll of approximately $500,000.00; and
WHEREAS, B -Unlimited, Inc. meets the Fayetteville First Plan's strategic focus of retaining
manufacturers, retailers, and e-commerce companies; and
WHEREAS, in order to certify B -Unlimited, 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 B -Unlimited, 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 B -Unlimited, Inc.'s
participation in the sales and use tax refund program authorized by A.C.A. § 15-4-2706(d) in relation to its
construction, equipping and hiring at its new facility in Fayetteville, Arkansas.
Page 1 Printed on 812117
Resolution: 153-17
File Number 2017-0386
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 13 -
Unlimited, Inc. for qualified construction and equipment purchased for its facility in Fayetteville, Arkansas.
PASSED and APPROVED on 8/1/2017
Attest:
Sondra E. Smith, City Clerk Treasurer
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Page 2 Printed on 812117
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2017-0386
Agenda Date: 8/1/2017 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 9
B -UNLIMITED, INC.:
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF B -UNLIMITED, INC.
IN THE ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE THE
ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION TO REFUND CITY SALES
TAX BACK TO B -UNLIMITED, INC. FOR QUALIFIED PURCHASES
WHEREAS, B -Unlimited, Inc., a custom collegiate licensed apparel company headquartered in
Fayetteville which has seen growth in sales from $500,000.00 in 2009 to a projected $10,000,000.00 in
2017, has purchased property at 2291 South School Avenue and plans a total investment of $300,000.00
in new construction, improvements, and equipment modernization; and
WHEREAS, B -Unlimited, Inc. is committed to creating 16 new jobs paying an average hourly wage of
$15.02 for a total annual payroll of approximately $500,000.00; and
WHEREAS, B -Unlimited, Inc. meets the Fayetteville First Plan's strategic focus of retaining
manufacturers, retailers, and e-commerce companies; and
WHEREAS, in order to certify B -Unlimited, 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 B -Unlimited, 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 B -Unlimited,
Inc.'s participation in the sales and use tax refund program authorized by A.C.A. §15-4-2706(d) in
relation to its construction, equipping and hiring at its new facility in Fayetteville, Arkansas.
City of Fayetteville, Arkansas Page 1 Printed on 81212017
File Number: 2017-0386
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 B -Unlimited, Inc. for qualified construction and equipment purchased for its facility in Fayetteville,
Arkansas.
City of Fayetteville, Arkansas Page 2 Printed on 8/2/2017
Devin Howland
Submitted By
City of Fayetteville Staff Review Form
2017-0386
Legistar File ID
8/1/2017
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
7/12/2017 ECONOMIC DEVELOPMENT (050)
Submitted Date Division / Department
Action Recommendation:
B -UNLIMITED, INC.: A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF B -UNLIMITED, INC. IN THE
ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE THE DEPARTMENT OF FINANCE AND
ADMINISTRATION TO REFUND CITY SALES TAX BACK TO B -UNLIMITED, INC. FOR QUALIFIED PURCHASES
Account Number
Project Number
Budgeted Item? No
Does item have a cost? No
Budget Adjustment Attached? NA
Previous Ordinance or Resolution #
Original Contract Number:
Comments:
Budget- Impact:
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
$ - —_
0
Approval Date:
40710
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF AUGUST 1, 2017
TO: Mayor; Fayetteville City Council
THRU: Don Marr, Chief of Staff
FROM: Devin Howland, Director of Economic Vitality
DATE: July 12, 2017
SUBJECT: B -Unlimited, Inc. Tax Back Program
CITY COUNCIL MEMO
RECOMMENDATION:
The City Staff and Administration recommend on behalf of the Mayor's office that the City
Council of the City of Fayetteville pass a resolution in support of B -Unlimited, Inc. to participate
in the State of Arkansas Tax Back Program. The Arkansas Economic Development Commission
seeks local support for the Tax Back Program, and the City Council's action to support this
application will result in their approval.
BACKGROUND:
The City of Fayetteville was contacted by Steve Clark, -President and CEO of the Fayetteville
Chamber of Commerce and Chung Tan, Director of Economic Development with the
Fayetteville Chamber of Commerce, seeking endorsement of B -Unlimited, Inc. to participate in
the State of Arkansas Tax Back Program of the Consolidated Incentive Act of 2003.
B -Unlimited is a custom collegiate licensed apparel company headquartered in Fayetteville. B -
Unlimited Inc. has seen a rapid increase in sales from $500,000 in 2009 to a projected
$10,000,000 in sales this year. Recently, B -Unlimited purchased a property at 2291 S School
and this expansion project includes an investment of $300,000 in new construction,
improvements, and equipment modernization. Furthermore, B -Unlimited Inc. is committed to
creating 16 new jobs at an average wage of $15.02 per hour resulting in an annual payroll of
$500,000.
DISCUSSION:
B -Unlimited, Inc. meets the Fayetteville First Plan's strategic focus of retaining manufacturers,
retailers, and e-commerce companies.
BUDGET/STAFF IMPACT:
We believe the budget impact will be neutral. The job growth will spur new sales tax growth from
the new employees but most importantly may lead to further expansion in this area supporting
B -Unlimited, Inc.'s needs.
Mailing Address;
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
Attachments:
Exhibit A: Chamber of Commerce Support Letter
Exhibit B: Consolidated Incentive Act of 2003 Incentive Application
191FJ
toFayetteville
Chamber of Commerce
July 10, 2017
Mayor Lioneld Jordan
City Council
113 W Mountain
Fayetteville, AR 72701
Dear Mayor Jordan and City Council Aldermen/women:
I write to support B -Unlimited, Inc.'s application for the Sales and Use Tax Refund program.
B -Unlimited, Inc. is a custom collegiate licensed apparel screen printing company headquartered
in Fayetteville. The company saw its sales increased from $500,000 in 2009 to an expected $10
million this year.
With the explosive growth comes the need to expand and create new jobs. B -Unlimited recently
bought a property in south Fayetteville (2291 S School Ave) and this expansion project includes
$300,000 worth of new construction, expansion/improvement of existing buildings and
modernization in terms of equipment. There will be 16 new jobs created with an average wage
of $15.02 per hour resulting in an annual new payroll of $500,000.
1 strongly recommend that the City Council approves a resolution to refund sales and use taxes to
B -Unlimited for qualified purchases under this program. Your approval indicates positive
support for our locally grown small businesses and encourages other small businesses to follow
suit. While B -Unlimited hires and trains across the board, they pay special attention in
developing and training creative and e-commerce skills thereby contributing to the workforce
pool for this category of skill sets.
B -Unlimited is expected to continue its growth as it continues tapping into the custom collegiate
licensed apparel market. Last but not least, B -Unlimited supports other local retailers as a
service partner.
Thank you for your consideration.
�,- W
Stee Clak IOM
President/CEO
I Yl:xu1[11hl ;{c :+ii(l P.(). [.3,� ,210 :ilie- AR 71;2--12_16
171) I it �: J'a cilutiilicar.cun7
ARKANSULS
OFFICE tJ
ons®iidated incentive Act ®f 2003 Pro;ectlJ
Incentive Application
Project Manage
Date Received
Incentive Please select which of the following program(s) are applicable to thisapplicat
Program
Jab Creatloit:
Advantage Arkansas (incorne Tax Credit program)
Investment: (construction, nximnslon, modernization)
Aplslic_ants ntdV only select one of the fawitt ro,rams:
Q Tali Back (sales and Use Tax Refund program)
For new or expanding buisnesses with a $100,000 minimum investrnent
OR
InvestArk (Sales and Use Tax Credit program)
For existing businesses only, with two (2) or more years of operating in Arlc%tnsas, ini
j — minimum of .$5,o0n,000 and obtaining a direct -pay sales/use tax permit.
Applicant B_Unlimited.I_nc. _
Local Operating Name of Companyv
2291 S School Avenlie �_ �� ayeetteville/AIS 7`�;
Mailing Address _ City/State Zit)
2291 S School Avenue Fayetteville/AR,
Physical Location of Project City/State/Zip CUt,
Kevin W'asemiller, 417-230-5?71
Name and Title of Local Company Contact Phone — Fax
kevin((ob-uf)1irnite-d.cofn b-I,.1111iinited.coi-"i
Company Contact e-mail address Company Website
Complete Company Name, if company is filing for tax credit under a different n
Cpnsolidateci Incentive Act of 2003 Application §15-4-2705, §154-2706(c), §t5-4 2706(d)
(Revised 7/(19)
Page 7 of 6
ONLY
a
2701
tv
Project
Cost
Estimate
Employment
Land..................... ......... ..........................$—
Building (a) New construction ..................$ 100,000
(b) Existing building..,................. $ 100,000
Equipment.......... ......................................... � 100,000
TOTAL ...............$_1,00 .000
Present employment:
Number of new employees resulting from this project: 16
Average Hourly wage of new employees hired for this project: $ 15.02
Total annual payroll of new employees hired For this project: $X00.000
NOTE, To qualify for the income tax credits provided by the Advantage 4rkan5as
program, the company must be an eligible business and meet the minin um payroll
requirements for the Tier (county) in which the project is located, The 7 'er Map is
available on line at www.Arkar3sas[DC.coLia.
NAICS
Classification _23113
Cagle
Custon-I collegiate licensed apparel screen printing coo -iparly
Description of principal husiness activity, products manufactured, etc.
What percentage of the applicant's gross sales are retail sales to the public 3 %
(An eligible company must not derive more than 10% of its revenue from s, es to the
general public)
If the applicant is a computer-related company, a distribution center, officeactor
business, motion picture company or a scientific and technical services burless, 75%
of the applicant's sales revenue must be derived from out of state.
What percentage of the applicant's sales is derived from out of state? 22
j NOTE: Information contained in this application is subject to audit by the Arkansas De
Finance and Administration. If any of the above information is found to be Ina
does not qualify, the business will be decertified and shall not receive any bene
required to repay any benefits received, plus penalty.
Consolidated Incentive Act of 2003 Application §].5-4-270'x, §15-4 2706(c), §15-4-2'706(d)
(Revised 7/09)
Page 2of6
ntent of
ate and
and may be
I.D. Numbers Employer's Federal I.D. Number
Arkansas Sales or Consumer Use Tax NumL
Information Ownership of Company (Please check the appropriate box.)
for Income Tax Individual
Credit ❑Partnership C
❑Taxable Corporation Small Business Corporation
(C Corporation) (Sufi S Corporation)
If ownership of company is Individual, partnership, LLC or Small Business Corporation please
provide the following information (a separate attachment may be submitted if necessary);
Name(s) Percent Social Security Nunr ber or
of Owner(s) [Ownership Federal tax I.D. N nber
Belt Clark 100%
When does your tax year end? 1-2 3
Month Date
Consultant
Information- -- Phone Fax
(If Applicable) I
Consultant Firm Name
i
Mailing Address City/State/Zip-
Consultant
ity/State/ZipConsultant E-mail address
Consolidated Incentive Act of 2003 Application §15-4.2705, 515-4-2706(c), §15-4-2706(d)
(Revised 7/09)
Page 3 of 6
I
Project Plan
Please indicate the activity planned by the company associated with this application.
(Check all that apply)
W1 New Construction ® Expansion of existing business FVJ Modernization
Estimated Start Date of Project; 104/2017 Estimated Completion Date of Project: 1()/201
Project Description.
I'rnject scope includes building executive officers and conference room(s), w[uehc�usi,lg Sl:rErl�:. -,nl�rc�icicry
room (controlled conditions) as well as finishingc ut the second .floor of our second building t,
accontpnodale more salesianist offices.
Project Cost Estimates:
Ct'Sc
ription:.-
Land;
Building:
Machinery and
:quipment:
Land Tatal:
New construction; Build out of executive offices
and conference room;
embroidery room and
warehousing space
Expansion or Purchase of existing facility:
Building out the 2nd floor of our existing
office/production Space
Building Total: $ 200,000
Description; Pre, -printing znachinez•y to lnrcxirrrize ._ T
Production efficiency as well as
increase number cif jobs per press
per day as we anticipate a spiky; in
sales/production this Fall 2017
_. . _' y._Total: {)O ,OOO
ac irtc r & Equipment i $ .ln
Total Estimated Project Cost; $3rrl>ot)a
Consolidated Incentive Act of 2003 Application §15-4-2705, §IS_4-2705(c) 515.4-2706(d)
(Revised 7/09)
Page 4 of 6
Certification
The undersigned authority, Ben Clark
� acknowledges that hr she is
company official (printed Name.)
the owner or authorized official of the applicant company that has the authority to act on be a)f of
the applicant.
This affidavit is made for the specific purpose of verifying that the information contained in tl is
application is true and correct. The applicant acknowledges that only those eligible project ci sts
incurred and/or employees hired after the date this application is received by the Commissio 1 will
be considered for refund or credit. The Advantage Arkansas program requires a separate finf ncial
incentive agreement, signed by the applicant company and the Commission, before hiring an
new, full-time, permanent employees. The applicant company does hereby agree to report liew
job creation and investment figures annually to the Arkansas Department of Finance and
Administration for the term of the incentive .agreement and to the Arkansas Economic
Develorl Ccs is 'on a an request.
CEO 06/20/20
Signature of company official Title te—
Contract Disclosure
Any individual contracting with the State of Arkansas must make full disclosure if he or she is
current or former: member of the General Assembly,, Constitutional Officer, hoard or Commis ion
member, State employee, or the spouse or immediate family member cif any of the; persons
described herein: or if such persons having any position of control or any ownership interest ( f ten
percent (10%) or greater in the entity currently applying to contract with the State, Please inc icate if .
this disclosure is required for this application. Failure to disclose such information is a criminr
offense and shall render any contract with the State of Arkansas null and void..
Disclosure Required?: oYes or 0 No
Press Release Disclosure
I of do [--Jdo not authorize the Arkansas Economic Development Commission to release t 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 thro r,gh a
Freedom otlpforiled with the Arkansas Department of Finance and Administr• 3tion.)
CE( 06/20/2017
Signature of Company official rifle Date
Cortsolidated Incentive Act of 2.003 Applicafion g1S-4-2705, §15-4-2706(c), §15-4"2706(d)
(Revised 7109)
Page 5 of 6
If you have questions about the incentive programs Included in this application, phase call tl
Arkansas Economic Development Commission at 501-682-7675 or visit the Commission's we
at Wvr"V A1It.irr"a.a 1)(.:.,r1),
Submit this application to:
Business Development Division
Arkansas Economic Development Commission
900 West Capitol, Suite 400
Little Rock, Ali 72201
AEDC APPROVAL
The Commission's approval of this application is based upon its content, The eligibility provisons
of the individual incentive programs will be administered by the Arkansas Department of Fit) 7cc�
and Administration upon audit at a later date,
Signature of AEDC incentives Manager
Consolidated Incentive Art of 2003 Application §15-4-2705, §15-4-2706(x), §15-4-2706(d)
(Revised 7/09)
Page 6 of 6