Public Hearing Notice

NOTICE TO TAXING JURISDICTIONS To: Taxing Jurisdictions (Distribution List attached) Re: Notice of Industrial Development Project for Blue Springs 70 Logistics, LLC On behalf of the City of Blue Springs, Missouri (“City”), please find enclosed a copy of the proposed Plan for an Industrial Development Project (“Plan”) for Blue Springs 70 Logistics, LLC (“Company”), which also contains a Cost Benefit Analysis on the affected taxing jurisdictions. The City anticipates considering an Ordinance to approve the Plan at its regular meeting on Monday, November 2, 2020 scheduled to begin at 6:00 PM in the City Council Chambers at the Howard L. Brown Public Safety Building, Blue Springs, Missouri. The Plan, if approved, consists of the design and construction of an approximately 584,820 square-foot Class A industrial building in the City, for purposes as further described in the attached Plan. The City invites all affected taxing districts to attend the meeting on November 2, 2020 and to make oral comments on the proposed Plan to the City or to provide written comments to the City on the Plan prior to the meeting. All comments of the taxing districts will be fairly and duly considered by the City. A copy of the Plan and Cost Benefit Analysis for the proposed project is enclosed and also will be on file in the office of the City Clerk and will be available for public inspection during normal business hours. Any questions should be directed to Mike Mallon, Acting Director of Community Development for the City at (816) 228-0124. Dated: October 13, 2020. CITY OF BLUE SPRINGS, MISSOURI 903 West Main Street Blue Springs, Missouri 64015 City of Blue Springs Jackson County Assessment Department City Clerk Director 903 West Main Street 415 E. 12th Street, 1M Blue Springs, MO 64015 Kansas City, MO 64106 Jackson County Jackson County Collections Department County Executive Director 415 E. 12th Street, 2nd Floor 415 E. 12th Street, Suite 100 Kansas City, MO 64106 Kansas City, MO 64106 Jackson County Community Mental Grain Valley School District Health Attn: Superintendent Executive Director 31606 E. Pink Hill Road 1627 Main Street, Suite 500 Grain Valley, MO 64029 Kansas City, MO 64108 Mid-Continent Public Library Developmental Disability Services of Director Jackson County – eitas 15616 East Highway 24 Executive Director Independence, MO 64050 8511 Hillcrest Road Kansas City, MO 64138 Central Jackson County Fire Protection State Tax Commission of Missouri District 301 W. High Street, Room 840 Attn: Fire Chief P.O. Box 146 805 N.E. Jefferson St. Jefferson City, MO 65102 Blue Springs, MO 64014 Missouri Department of Revenue Missouri Director of Revenue County Tax Section County Tax Section State Blind Pension Fund Merchants/Manufacturers Replacement Tax 301 West High Street, Room 330 Fund Jefferson City, MO 65105 301 West High Street P.O. Box 453 Jefferson City, MO 65102-0453  ____________________________ CITY OF BLUE SPRINGS, MISSOURI PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND COST-BENEFIT ANALYSIS FOR BLUE SPRINGS 70 LOGISTICS, LLC NOVEMBER 2, 2020 _____________________________  TABLE OF CONTENTS Page I. PURPOSE OF THIS PLAN .......................................................................................................... 1 II. DESCRIPTION OF CHAPTER 100 FINANCINGS.................................................................. 1 General............................................................................................................................................ 1 Issuance and Sale of Bonds ........................................................................................................... 1 Property Tax Abatement............................................................................................................... 2 III. DESCRIPTION OF THE PARTIES ............................................................................................ 2 Blue Springs 70 Logistics, LLC... ....................................................Error! Bookmark not defined. City of Blue Springs, Missouri. ..................................................................................................... 2 IV. REQUIREMENTS OF THE ACT................................................................................................ 2 Description of the Project. ............................................................................................................. 2 Estimate of the Costs of the Project. ............................................................................................ 2 Source of Funds to be Expended for the Project......................................................................... 2 Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed of by the City. ............................................................................................................. 3 Affected School District, Fire Protection District, County and City.Error! Bookmark not defined. Current Assessed Valuation. ......................................................................................................... 3 Payments in Lieu of Taxes. ........................................................................................................... 3 Cost-Benefit Analysis and Discussion of Exhibits. ...................................................................... 4 V. ASSUMPTIONS AND BASIS OF PLAN .................................................................................... 4 ATTACHMENT A – SUMMARY OF KEY ASSUMPTIONS ATTACHMENT B – MAP OF PROJECT SITE EXHIBIT 1 - PROJECT ASSUMPTIONS EXHIBIT 2 - SUMMARY OF COST BENEFIT ANALYSIS EXHIBIT 3 - PROJECTED TAX REVENUES ON PROJECT SITE WITHOUT PROJECT (NO ABATEMENT) EXHIBIT 4 - PROJECTED TAX REVENUES ON PROJECT SITE WITH PROJECT (NO ABATEMENT) EXHIBIT 5 - PROJECTED VALUE OF TAX ABATEMENT EXHIBIT 6 - PROJECTED PAYMENT IN LIEU OF TAXES EXHIBIT 7 - PROJECT SALES AND USE TAX EXEMPTION ON CONSTRUCTION MATERIALS * * *  CITY OF BLUE SPRINGS, MISSOURI _________________________________ PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND COST-BENEFIT ANALYSIS FOR BLUE SPRINGS 70 LOGISTICS, LLC. I. PURPOSE OF THIS PLAN The City Council of the City of Blue Springs, Missouri (the “City”) will consider an ordinance approving this Plan (defined below) and authorizing the issuance by the City of its taxable industrial development revenue bonds in the approximate aggregate principal amount of $30,000,000 (the “Bonds”), to finance the costs of an industrial development and commercial project (the “Project”) for Blue Springs 70 Logistics, LLC or its successors and assigns (the “Company”). The Bonds will be issued pursuant to the provisions of Sections 100.010 to 100.200 of the Revised Statutes of Missouri, as amended, and Article VI, Section 27(b) of the Missouri Constitution, as amended (collectively, the “Act”). This Plan for an Industrial Development Project and Cost-Benefit Analysis (the “Plan”) has been prepared to satisfy requirements of the Act and to analyze the potential costs and benefits, including the related tax impact on all affected taxing jurisdictions, of using industrial development revenue bonds to finance the Project and to facilitate abatement of ad valorem taxes on the bond-financed property. II. GENERAL DESCRIPTION OF CHAPTER 100 FINANCINGS General. The Act authorizes cities, counties, towns and villages to issue industrial development revenue bonds to finance the purchase, construction, extension and improvement of warehouses, distribution facilities, research and development facilities, office industries, agricultural processing industries, service facilities that provide interstate commerce, industrial plants and other commercial projects. Issuance and Sale of Bonds. Revenue bonds issued pursuant to the Act do not require voter approval and are payable solely from revenues received from the project. The municipality issues its bonds and in exchange, the benefited company promises to make payments that are sufficient to pay the principal of and interest on the bonds as they become due. Thus, the municipality merely acts as a conduit for the financing and is not responsible to pay debt service on the bonds from its own funds. Concurrently with the closing of the bonds, the company will convey to the municipality title to the site on which the industrial development project will be located, including all improvements built on the site. (The municipality must be the legal owner of the property while the bonds are outstanding for the property to be eligible for tax abatement, as further described below.) At the same time, the municipality will lease the project site and the improvements thereon back to the benefited company pursuant to a lease agreement. The lease agreement will require the company, acting on behalf of the municipality, to use the bond proceeds to pay the costs or reimburse the costs of purchasing, constructing and installing the project, as applicable. Under the lease agreement, the company typically: (1) will unconditionally agree to make payments sufficient to pay the principal of and interest on the bonds as they become due; (2) will agree, at its own expense, to maintain the project, to pay all taxes and assessments with respect to the project, and to maintain adequate insurance; (3) has the right, at its own expense, to make certain additions, modifications or improvements to the project; (4) may assign its interests under the lease agreement or sublease the project while remaining responsible for payments under the lease agreement; (5) will covenant to maintain its corporate existence during the term of the bond issue; and (6) will agree to indemnify the municipality for any liability the municipality might incur as a result of its participation in the transaction.  Property Tax Abatement. Under Article X, Section 6 of the Missouri Constitution and Section 137.100 of the Revised Statutes of Missouri, all property of any political subdivision is exempt from taxation. In a typical transaction, the municipality holds fee title to the project and leases the project to the benefited company. Although the Missouri Supreme Court has held that the leasehold interest is taxable, it is taxable only to the extent that the economic value of the lease is less than the actual market value of the lease. See Iron County v. State Tax Commission, 437 S.W.2d 665 (Mo. 1968) (en banc). If the rental payments under the lease agreement equal the actual debt service payments on the bonds, the leasehold interest should have no “bonus value” and the bond-financed property should be exempt from ad valorem taxation so long as the bonds are outstanding. If the municipality and the company determine that partial tax abatement is desirable, the company may agree to make “payments in lieu of taxes” (sometimes called “PILOTS”). The amount of payments in lieu of taxes is negotiable. The payments in lieu of taxes are payable by December 31 of each year, and are distributed to the municipality and to each political subdivision within the boundaries of the project in the same manner and in the same proportion as property taxes would otherwise be distributed under Missouri law. III. DESCRIPTION OF THE PARTIES Blue Springs 70 Logistics, LLC The Company is a limited liability company organized and existing under the laws of the State of Missouri. City of Blue Springs, Missouri. The City is a constitutional charter city and political subdivision organized and existing under the laws of the State of Missouri. The City is authorized and empowered pursuant to the provisions of the Act to purchase, construct, extend and improve certain projects (as defined in the Act) and to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing, commercial, warehousing and industrial development purposes upon such terms and conditions as the City deems advisable. IV. REQUIREMENTS OF THE ACT Description of the Project. The project to be financed by the Bonds consists of building an approximately 585,660 square-foot Class A industrial building. The real property improvements being financed by the Bonds are referred to as the “Project Improvements” which are located on real estate referred to as the “Project Site.” The existing Project Site has an estimated current market value of $19,950 and an assessed value of $2,394. The Project Improvements together with the Project Site are referred to as the “Project.” Estimate of the Costs of the Project. The Project is expected to cost approximately $30,000,000, with approximately $9,855,950 estimated to be spent on construction materials. The Project Improvements will be developed and constructed in 2021. Source of Funds to be Expended for the Project. The sources of funds to be expended for the Project, including the Project Site with existing improvements and the Project Improvements, will be the proceeds of the Bonds in an approximate principal amount $30,000,000, to be issued by the City and purchased by the Company or its designee (the “Bondholder”) and, if needed, other available funds of the Company. The Bonds will be payable solely from the revenues derived by the City from the lease or other disposition of the Project (as further described below). The Bonds will not be an indebtedness or general -2- obligation, debt or liability of the City or the State of Missouri within the meaning of any charter, statutory or constitutional debt limitation or provision. Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed of by the City. The City will hold title to the Project during the term of the Bonds. The City will lease the Project to the Company for lease payments equal to the principal and interest payments on the Bonds. Under the terms of the lease agreement with the City, the Company will have the option to purchase the Project at any time and will have the obligation to purchase the Project at the termination of the lease. The lease between the City and the Company is expected to terminate in 2031, unless terminated sooner pursuant to the terms of the lease. Affected School District, Fire Protection District, County, and City. The Grain Valley R-V School District is the school district affected by the Project. Jackson County, Missouri is the county affected by the Project. The City is the city affected by the Project. The Central Jackson County Fire Protection District is the fire protection district affected by the Project. The Cost-Benefit Analysis attached hereto identifies all other taxing districts affected by the Project (other than those taxing entities solely affected by the Project with respect to receipt of tax revenues from the commercial surcharge tax). Current Assessed Valuation. The most recent equalized assessed valuation of the Project Site is $2,394. The estimated total equalized assessed valuation of the Project Improvements after construction of the Project Improvements (2022) is $6,440,508. This valuation was calculated based upon an assumed appraised value of $20,126,589 (approximately 75% of construction costs) for the Project Improvements in year 2022, multiplied by the assessment rate of 32%. The estimated total equalized assessed valuation of the Project Site after construction (2022) is $1,011,446. This valuation was calculated based upon an assumed appraised value of $3,160,768, multiplied by the assessment rate of 32%. The estimated total equalized assessed valuation of the Project (2022), therefore, is $7,451,954. Payments in Lieu of Taxes. If this Plan is approved by the City Council, the City intends to issue the Bonds in 2020 and provide tax abatement to the Company of 100% of the property taxes to be paid related to the Project during construction and for a period of ten years beginning in the year following completion of construction of the Project Improvements; provided, however, that the abatement to the Company of property taxes imposed by the Central Jackson County Fire Protection District shall only be 25%. The Company will not make PILOT payments on the Project to any taxing entity other than the Central Jackson County Fire Protection District equal to 75% of the property taxes expected to be imposed by the fire protection district. Sales and Use Tax Exemption on Construction Materials. Qualified building materials purchased for the construction of the Project Improvements are expected to be exempt from sales and use tax pursuant to the provisions of Section 144.062 of the Revised Statutes of Missouri and the underlying bond documents upon delivery of a project exemption certificate by the City to the Company. The table below shows the approximate amount the Company intends to spend on construction materials in each taxing jurisdiction: Total Amount of Construction Materials: $9,855,950 Construction Materials to be purchased within the State of Missouri (but outside Jackson County): $6,805,950 Construction Materials to be purchased within Jackson County (but outside City of Blue Springs): $2,450,000 -3-  Construction Materials to be purchased within the City of Blue Springs: $125,000 Cost-Benefit Analysis and Discussion of Exhibits. In compliance with Section 100.050.2(3) of the Revised Statutes of Missouri, this Plan has been prepared to show the costs and benefits to the City and to other taxing jurisdictions affected by the tax abatements and exemptions of the Project. The following is a summary of the exhibits attached to this Plan that show the direct tax impact the Project is expected to have on each taxing jurisdiction. This Plan does not attempt to quantify the overall economic impact of the Project. Project Assumptions. Exhibit 1 presents a list of the assumptions related to the determination of assessed valuations and the tax formulas. Summary of Cost-Benefit Analysis. Exhibit 2 presents a summary for each affected taxing district of (1) the total estimated tax revenues that would be generated if the Project did not occur, (2) the total estimated tax revenues that would be generated if the Project occurred but did not receive tax abatement, and (3) the total estimated value of the abatement to the Company. Real Property. Exhibit 3 provides the projected tax revenues which would be paid on the Project Site without tax abatement and without the Project Improvements. Exhibit 4 provides the projected tax revenues that would be generated from the Project if the Project Improvements occur but without tax abatement. Exhibit 5 provides the projected value of the real property tax abatement on the Project to the Company. Exhibit 6 provides the projected payments in lieu of taxes payable to the fire protection district. Sales and Use Tax Exemption on Qualified Construction Materials. Exhibit 7 provides the projected value of the sales and use tax exemption on qualified construction materials to the Company. V. ASSUMPTIONS AND BASIS OF PLAN In preparing this Plan, key assumptions have been made to estimate the fiscal impact of the abatement and exemptions proposed for the Project. See ATTACHMENT A for a summary of these assumptions. Information necessary to complete this Plan, has been furnished by representatives of the City, representatives of the Company and its counsel, the Bondholder and other persons deemed appropriate and such information has not been independently verified for accuracy, completeness or fairness. * * * -4-  ATTACHMENT A SUMMARY OF KEY ASSUMPTIONS 1. The Project is estimated to cost approximately $30,000,000, with the Project Improvements to cost approximately $26,835,452 and the existing Project Site to have an approximate current value of $3,160,768 when acquired by the Company. 2. The construction of the Project Improvements are expected to be completed in 2021 and the abatement period will begin January 1, 2022. 3. The investment in the Project Improvements will produce an assessed value for the Project in the amount of $7,451,954, consisting of $1,011,446 for the Project Site and $6,440,508 for the Project Improvements. 4. The Project Site will include the site outlined in red, as shown on Attachment B. 5. The Project will be owned by the City and leased to the Company with an option to purchase. As long as the Project is owned by the City, it is expected to be exempt from ad valorem taxes. 6. The Project will be excluded from the calculation of ad valorem property taxes during construction and for a period of ten years after construction is completed. 7. During the entire term of the Bonds (expected to be through 2031), the Company will not be required to make payments in lieu of taxes except in accordance with that portion of Section IV above in the Plan entitled “Payments in Lieu of Taxes.” 8. Commercial real property taxes are calculated using the following formula: (Assessed Value * Tax Rate)/100 9. The assessed value of the Project Improvements is calculated using the following formula: Estimated Value * Assessment Ratio of 32% 10. After development, the assessed value of the Project Improvements is subject to growth at an estimated rate of 2% every year an assessment is made (every odd year). 11. The tax rates used in this Plan reflect the rates in effect for the tax year 2020. The tax rates were held constant through the 2031 tax year. * * * A-1  ATTACHMENT B MAP OF PROJECT SITE B-1  City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) COST BENEFIT ANALYSIS PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT  Table of Contents Project Assumptions 1 Summary of Cost Benefit Analysis 2 Projected Tax Revenue on Project Site Without Project (No Abatement) 3 Projected Tax revenues on Project Site With Project (No Abatement) 4 Projected Value of Tax Abatement 5 Projected Payment In Lieu of Taxes 6 Projected Sales and Use Tax Exemption on Construction Materials 7 This information is provided based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide factual information only and is provided in conjunction with our legal representation. It is not intended as financial advice or a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a “municipal advisor” as defined in the Securities Exchange Act of 1934, as amended. City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis 10/12/2020  Project Assumptions  Initial year taxes assessed 2022  Assessed value of project site $ 2,394  Appraised value of project site after construction $ 3,160,768  Investment in project improvements $ 26,835,452  75% of project improvements $ 20,126,589  Bi-annual growth rate of appraised value of real property 2.0%  Assessed value as a percentage of appraised value (real) 32.0%  Assessed value of project improvements $ 6,440,508  Assessed value of project site after construction $ 1,011,446  Terms of abatement: Years 1 to 10 100% City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis -1 - 10/12/2020  Summary of Cost Benefit Analysis Projected Tax Projected Tax Revenues on Revenues on Projected Project Site Project Site With Projected Payment in Without Project Project (No Value of Tax Lieu of Taxing Jurisdiction Tax Rate (No Abatement) Abatement) Abatement Taxes Board of Disabled Services 0.0649 $ 16 $ 50,840 $ 50,840 $ - City - Blue Springs 0.6817 172 534,017 534,017 - Fire District - Central Jackson 1.0886 274 852,767 213,192 639,575 Grain Valley School R-V 5.1059 1,285 3,999,765 3,999,765 - Jackson County 0.6110 154 478,634 478,634 - Mental Health 0.1056 27 82,723 82,723 - Mid-Continent Library 0.3696 93 289,530 289,530 - State Blind Pension 0.0300 8 23,501 23,501 - 8.0573 $ 2,028 $ 6,311,778 $ 5,672,203 $ 639,575 City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis -2 - 10/12/2020  Projected Tax Revenues on Project Site Without Project (No Abatement) Estimated Assessed Value of Project Site $ 2,394 $ 2,442 $ 2,442 $ 2,491 $ 2,491 $ 2,541 $ 2,541 $ 2,591 $ 2,591 $ 2,643 Tax Rate per Taxing Jurisdiction $100 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Board of Disabled Services 0.0649 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 16 City - Blue Springs 0.6817 16 17 17 17 17 17 17 18 18 18 172 Fire District - Central Jackson 1.0886 26 27 27 27 27 28 28 28 28 29 274 Grain Valley School R-V 5.1059 122 125 125 127 127 130 130 132 132 135 1,285 Jackson County 0.6110 15 15 15 15 15 16 16 16 16 16 154 Mental Health 0.1056 3 3 3 3 3 3 3 3 3 3 27 Mid-Continent Library 0.3696 9 9 9 9 9 9 9 10 10 10 93 State Blind Pension 0.0300 1 1 1 1 1 1 1 1 1 1 8 8.0573 $ 193 $ 197 $ 197 $ 201 $ 201 $ 205 $ 205 $ 209 $ 209 $ 213 $ 2,028 City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis -3 - 10/12/2020  Projected Tax Revenues on Project Site With Project (No Abatement) Estimated Assessed Value of Project Site with Project $7,451,954 $7,600,993 $7,600,993 $7,753,013 $7,753,013 $7,908,073 $7,908,073 $8,066,235 $8,066,235 $8,227,560 Tax Rate Taxing Jurisdiction per $100 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Board of Disabled Services 0.0649 $ 4,836 $ 4,933 $ 4,933 $ 5,032 $ 5,032 $ 5,132 $ 5,132 $ 5,235 $ 5,235 $ 5,340 $ 50,840 City - Blue Springs 0.6817 50,800 51,816 51,816 52,852 52,852 53,909 53,909 54,988 54,988 56,087 534,017 Fire District - Central Jackson 1.0886 81,122 82,744 82,744 84,399 84,399 86,087 86,087 87,809 87,809 89,565 852,767 Grain Valley School R-V 5.1059 380,489 388,099 388,099 395,861 395,861 403,778 403,778 411,854 411,854 420,091 3,999,765 Jackson County 0.6110 45,531 46,442 46,442 47,371 47,371 48,318 48,318 49,285 49,285 50,270 478,634 Mental Health 0.1056 7,869 8,027 8,027 8,187 8,187 8,351 8,351 8,518 8,518 8,688 82,723 Mid-Continent Library 0.3696 27,542 28,093 28,093 28,655 28,655 29,228 29,228 29,813 29,813 30,409 289,530 State Blind Pension 0.0300 2,236 2,280 2,280 2,326 2,326 2,372 2,372 2,420 2,420 2,468 23,501 8.0573 $ 600,426 $ 612,435 $ 612,435 $ 624,684 $ 624,684 $ 637,177 $ 637,177 $ 649,921 $ 649,921 $ 662,919 $6,311,778 City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis -4 - 10/12/2020  Projected Value of Tax Abatement Estimated Assessed Value of Project Site with Project $ 7,451,954 $ 7,600,993 $ 7,600,993 $ 7,753,013 $ 7,753,013 $ 7,908,073 $ 7,908,073 $ 8,066,235 $ 8,066,235 $ 8,227,560 Abatement Percentage 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Tax Rate per Taxing Jurisdiction $100 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Board of Disabled Services 0.0649 $ 4,836 $ 4,933 $ 4,933 $ 5,032 $ 5,032 $ 5,132 $ 5,132 $ 5,235 $ 5,235 $ 5,340 $ 50,840 City - Blue Springs 0.6817 50,800 51,816 51,816 52,852 52,852 53,909 53,909 54,988 54,988 56,087 534,017 Fire District - Central Jackson* 1.0886 20,280 20,686 20,686 21,100 21,100 21,522 21,522 21,952 21,952 22,391 213,192 Grain Valley School R-V 5.1059 380,489 388,099 388,099 395,861 395,861 403,778 403,778 411,854 411,854 420,091 3,999,765 Jackson County 0.6110 45,531 46,442 46,442 47,371 47,371 48,318 48,318 49,285 49,285 50,270 478,634 Mental Health 0.1056 7,869 8,027 8,027 8,187 8,187 8,351 8,351 8,518 8,518 8,688 82,723 Mid-Continent Library 0.3696 27,542 28,093 28,093 28,655 28,655 29,228 29,228 29,813 29,813 30,409 289,530 State Blind Pension 0.0300 2,236 2,280 2,280 2,326 2,326 2,372 2,372 2,420 2,420 2,468 23,501 8.0573 $ 539,585 $ 550,377 $ 550,377 $ 561,384 $ 561,384 $ 572,612 $ 572,612 $ 584,064 $ 584,064 $ 595,745 $ 5,672,203 *The company will pay a PILOT of 75% to the Central Jackson Fire Protection District. As a result, the abatement percentage for the Central Jackson Fire Protection District is 25%. City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis -5 - 10/12/2020  Projected Payment in Lieu of Taxes Estimated Assessed Value of Project Site with Project $ 7,451,954 $ 7,600,993 $ 7,600,993 $ 7,753,013 $ 7,753,013 $ 7,908,073 $ 7,908,073 $ 8,066,235 $ 8,066,235 $ 8,227,560 PILOT 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Tax Rate per Taxing Jurisdiction $100 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Board of Disabled Services 0.0649 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - City - Blue Springs 0.6817 - - - - - - - - - - - Fire District - Central Jackson* 1.0886 60,841 62,058 62,058 63,299 63,299 64,565 64,565 65,857 65,857 67,174 639,575 Grain Valley School R-V 5.1059 - - - - - - - - - - - Jackson County 0.6110 - - - - - - - - - - - Mental Health 0.1056 - - - - - - - - - - - Mid-Continent Library 0.3696 - - - - - - - - - - - State Blind Pension 0.0300 - - - - - - - - - - - 8.0573 $ 60,841 $ 62,058 $ 62,058 $ 63,299 $ 63,299 $ 64,565 $ 64,565 $ 65,857 $ 65,857 $ 67,174 $ 639,575 *The company will pay a PILOT of 75% to the Central Jackson Fire Protection District. City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis -6 - 10/12/2020  Projected Sales and Use Tax Exemption on Construction Materials Costs of Applicable Construction Exempt Tax Materials Rate Amount State of Missouri Sales Tax 6,805,950 4.2250% $ 287,551 State of Missouri Use Tax 3,050,000 4.2250% $ 128,863 Jackson County 2,450,000 1.3750% $ 33,688 Central Jackson County Fire Protection District 125,000 0.5000% $ 625 City of Blue Springs 125,000 2.5000% $ 3,125 $ 453,851 City of Blue Springs, Missouri (Blue Springs 70 Logistics, LLC) Cost Benefit Analysis -7 - 10/12/2020