Community Development Advisory Board

CITY OF DERBY MEETING OF THE COMMUNITY DEVELOPMENT ADVISORY BOARD SPECIAL MEETING July 23, 2015 4:00 PM - 5:00 PM The mission of the Community Development Advisory Board (CDAB) is to monitor and maintain the city's economic development plan; make recommendations to the City Council on development projects for which city incentives are requested; propose changes to policies governing economic development activities; and advocate for programs and activities that will improve the city's economic conditions. 1. Roll Call Margaret Fritzler Dwayne Gentry Anndria Obeirne Dale Smith Matt Quinn Jason Wojteczko 2. Public Forum 3. New Business 4. Request for Incentives - Homestead Affordable Housing, Inc. Recommend a Motion to: Recommend to the City Council the request from Homestead Affordable Housing, Inc. for Industrial Revenue Bond financing and tax abatement. 5. Adjournment 1 Community Development Advisory Board 4. Meeting Date: 07/23/2015 Submitted By: Taylour Tedder, Development Manager Subject: Request for Incentives - Homestead Affordable Housing, Inc. Guests: Tom Bishop, President/CEO, Homestead Affordable Housing, Inc. Terri Bradshaw, Director of Property Management, Homestead Affordable Housing, Inc. Background: Homestead Affordable Housing, Inc. has proposed a senior independent living community providing an affordable option for seniors in Derby. It has requested Industrial Revenue Bonds (IRBs) and a 10-year 100% property tax abatement. Development of quality housing options for senior citizens is a priority to ensure seniors can continue to call Derby their home when they are at a point when renting is their preferred option. The project includes 64 units to serve residents 55 years of age or older. New construction is proposed in 16 four-plex buildings meeting LEED and Energy Star 3 certifications. Keeping utility costs low through energy efficiency is a priority for Homestead. Rental rates are income based (see attached schedule). The property will feature the following amenities: Community building including fitness area with exercise equipment, library, computer with internet, activity and craft areas, community room, and office for healthcare providers. Concrete reinforced safe room and washer/dryer in each unit. Raised garden beds and landscaping, gazebo and outside seating with grill and picnic tables, walking paths/sidewalks for distance exercise. Horseshoe and shuffleboard courts, large TV, Blu-Ray player, and game console for movie and game nights. A variety of other services for residents. Homestead is a non-profit company governed by a board of directors and has been in business since 1998. It has 12 properties in Kansas similar to the proposed one for Derby (see attached list). 2 Financial/Sustainability Considerations: The City's portion of the requested property tax exemption and exemption of sales tax on construction materials is estimated to be $1,113,878 over 10 years (see attached cost-benefit analysis). Legal Considerations: Issuance of IRB's and the ability to grant tax abatements are authorized by Kansas law. As required by law, the City has adopted a policy that provides a process for issuance of IRB's and has completed the required cost-benefit analysis. The City has no liability in the event that the bonds are not ultimately issued. Policy Considerations: The City’s economic development policy is designed to encourage businesses that promote, stimulate or develop the economic welfare of the City. This unique offering to seniors provides a product currently unavailable in Derby. Seniors in the community often must move away to access this type of housing. The project is a $10 million capital investment and would create 2 new jobs. There is a 100% substitution rate on employment in this industry. According to the Center for Economic Development and Business Research at WSU, this means the employment does not have a significant economic impact. According to the City’s incentives policy, this business fits into the housing category, which is eligible for public incentives. The policy states the City's intention to encourage development of housing for residents of all ages, abilities and incomes. The City’s incentives policy requires a benefit-cost ratio of 1.30 to 1. This project results in a benefit-cost ratio of 1 to 1 which does not fall within the policy requirement. The need for affordable senior housing to provide an option for long-time Derby residents to remain in their community should be considered. The Mulvane and Haysville Homestead locations house many former Derby residents who had to move to find modern senior housing that they could afford. Of note is the “but-for” principle. The applicant has indicated that without the requested incentive, the alternative is to select a different city for the project. Presentation of Homestead's application and CDAB's recommendation are scheduled for the August 11 City Council meeting, at which time the Council will be asked to set a public hearing for September 8 at 6:30 p.m. Recommend a Motion to: Recommend to the City Council the request from Homestead Affordable Housing, Inc. for Industrial Revenue Bond financing and tax abatement. 3  Attachments Application for Incentives Homestead Communities Listing Derby Income Limits for Rent Cost Benefit Analysis 4 5 6 7 8  Homestead Affordable Housing Senior Apartment Communities Updated 03/11/2015 (w/ LIHTC, HUD and HOME 2015 AMI) Bartell Place Senior Residences Phone: 785/238-3000 Fax: 785/238-3018 614 N. Washington Email: bartellplace@homesteadks.com Junction City, KS 66441 Manager: Lissette Aveiro Total of 33 apartments One 3 story elevator building w/common 24 one-bedroom apartments interior hallways and community space 9 two-bedroom apartments Apartment Amenities: Ceiling Fans, Mini-blinds, walk-in showers, grab bars in the Bathroom, and fully furnished kitchens w/ microwaves over the oven and dishwashers. Community Amenities: Common Sitting Areas on Each Floor, Laundry Facilities, Community Room, Shuffle Board and Pool Tables, Exercise Area, Computer Center, Craft Area, Community Courtyard w/ Gas Grill, and Off-Street Parking. Rent: Subsidized by USDA Rural Development. Rent is 30% of household’s adjusted income minus a utility allowance. Rent includes: water, trash, and sewer. Resident is responsible for: electric. Cable: $43/month. Minimum Age for Head of Household: 62 or disabled and at least 55 years of age Maximum Annual Income - 1 Person 2 Person 3 Person 4 Person 60% AMI $26,100 $29,820 $33,540 $37,260 50% AMI 21,750 24,850 27,950 31,050 Funding Sources: RD 515, LIHTC, HOME, AHP, HUD CDBG, Historic Credits Brookside Cottages Phone: 316/775-2670 Fax: 316-775-2648 711 Smiles Email: brooksidecottages@homesteadks.com Augusta, Kansas 67010 Manager: Donna Burkholder Total of 48 apartments 6- 6-plex and 3- 4-plex buildings set around 36 one-bedroom apartments a courtyard and community building 12 two-bedroom apartments Apartment Amenities: Washer/Dryer Hookups, Ceiling Fans, Mini-blinds, and Grab Bars in Bathroom. Community Amenities: Laundry Facilities, Community Room, Computer Center, Craft Area, Community Garden w/ Gazebo, Covered Patio w/ Gas Grill, and Off-Street Parking. Rent: One-bedroom - $400 per month Two-bedroom - $480 per month Rent includes: water, trash, and sewer. Resident is responsible for: electric and gas. Minimum Age for Head of Household: 55 Maximum Annual Income - 1 person household - $28,560 2 person household - $32,640 3 person household - $36,720 4 person household - $40,800 Funding Sources: LIHTC, Housing Trust Fund, AHP 9 Homestead Senior Res. Harper Phone: 620-896-2284 Fax: 620-896-2284 1123 N. Jefferson Email: mainstreetplace@homesteadks.org Harper, KS Manager: Steffani Kent Total of 30 one-bedroom apartments 3 – 4 plex buildings 3 – 6 plex buildings Apartment Amenities: Mini-blinds, Grab Bars in Bathroom, Washer/Dryer and Built-in Microwave Community Amenities: Community Room and Off-Street Parking. Rent: Subsidized by HUD. Rent is 30% of household’s adjusted income minus a utility allowance. Rent includes: electric, gas, water, trash, and sewer. Minimum Age for Head of Household: 62 or disabled of any age Maximum Annual Income - 1 person household - $20,100 2 person household - $23,000 Funding Sources: HUD Section 8, HOME, AHP, Weatherization Grant Homestead Senior Res. Holton Phone: 785-364-4751 400 Wisconsin Avenue Email: hsrholton@homesteadks.com Holton, KS 66436 Manager: Judy Johnson Total of 24 apartments One 2 story building w/common interior 24 one-bedroom apartments hallways and community space Apartment Amenities: Ceiling Fans, and Grab Bars in Bathroom. Community Amenities: Common Sitting Area, Laundry Facilities, Community Room and Patio, and Off-Street Parking. Rent: One Bedroom - $410 per month Rent includes: gas, water, sewer, and trash. Resident is responsible for: electric. Minimum Age for Head of Household: 55 Maximum Annual Income - 1 person household - $28,140 2 person household - $32,160 Funding Sources: LIHTC, AHP, Weatherization Grant HAH Senior Duplexes Marion Phone: 620-382-2606 Fax: 620-382-6044 1502-1522 Victory Lane Email: hsrmarion@homesteadks.org Marion, KS 66861 Manager: Wendy Buchanan Total of 20 apartments 20 two-bedroom apartments w/ garage Apartment Amenities: Washer/Dryers, Ceiling Fans, Mini-blinds, walk-in showers, grab bars in the Bathroom, fully furnished kitchen w/ microwaves over the oven and dishwashers, and private patio Community Amenities: Common Sitting Area, Community Room and Patio, and Community Garden. Rent: One Bedroom - $435 per month Resident is responsible for: electric, gas, water, sewer, and trash. Cable: $15/month Minimum Age for Head of Household: 55 Maximum Annual Income - 1 Person 2 Person 3 Person 4 Person 60% AMI $25,620 $29,280 $32,940 $36,540 Funding Sources: LIHTC, HOME 10 HAH Senior Residences Marion Phone: 620-382-2606 Fax: 620-382-6044 1500 E. Main Street Email: hsrmarion@homesteadks.com Marion, KS 66861 Manager: Wendy Buchanan Total of 20 apartments 16 one-bedroom and 4 two-bedroom apartments Apartment Amenities: Ceiling Fans, and Grab Bars in Bathroom. Community Amenities: Common Sitting Area, Laundry Facilities, Community Room and Patio, Computer Center, Exercise Room and Off-Street Parking. Rent: Small One Bedroom - $280 per month Large One Bedroom - $330 per month Two Bedroom - $330 per month Rent includes: gas, water, sewer, and trash. Resident is responsible for: electric. Minimum Age for Head of Household: 55 Maximum Annual Income - 1 Person 2 Person 3 Person 4 Person 60% AMI $25,620 $29,280 $32,940 $36,540 50% AMI 21,350 24,400 27,450 30,450 Funding Sources: LIHTC, HOME Homestead Senior Res. Mulvane Phone: 316-425-3800 Fax: 316-425-3907 200 E. Rock Road Court Email: hsrmulvane@homesteadks.com Mulvane, KS 67110 Manager: Paula Davis Total of 40 apartments 3- 4-plex (one/two bedroom units) and 6 one-bedroom apartments 7 – 4 plex (two bdrm w/ garage units) bldgs 34 two-bedroom apartments set around a courtyard and community bldg. Apartment Amenities: Washer/Dryers, Ceiling Fans, Mini-blinds, walk-in showers, grab bars in the Bathroom, fully furnished kitchen w/ microwaves over the oven and dishwashers, and private patio. Community Amenities: Community Room, Computer Center, Covered Patio w/ Gas Grill, and Off- Street Parking. Rent: Subsidized by USDA Rural Development. Rent is 30% of household’s adjusted income minus a utility allowance. Rent includes: Trash. Resident is responsible: for electric, gas, water and sewer. Cable: $33/month Minimum Age for Head of Household: 62 or disabled and at least 55 year of age Maximum Annual Income – 1 Person 2 Person 3 Person 4 Person 60% AMI $26,340 $30,120 $33,900 $37,620 50% AMI 21,950 25,100 28,250 31,350 40% AMI 17,560 20,080 22,600 25,080 30% AMI 13,170 15,060 16,950 18,810 Funding Sources: RD 515, LIHTC, HOME, AHP 11 Homestead Senior Res. Russell Phone: 785-483-6786 Fax: 785-445-4094 238 S. Lincoln Street Email: hsrrussell@homesteadks.com Russell, KS 67665 Manager: Cathlene McClain Total of 12 one-bedroom apartments Apartment Amenities: Ceiling Fans, Mini-blinds, high-rise toilet and walk-in showers. Community Amenities: Common Sitting Area, Laundry Facilities, Exercise Area, Community Computer, and Off-Street Parking. Rent: Subsidized by USDA Rural Development. Rent is 30% of household’s adjusted income minus a utility allowance. Rent includes: gas, water, sewer, and trash. Resident is responsible for: electric. Minimum Age for Head of Household: 62 or disabled and at least 55 years of age Maximum Annual Income - 1 Person 2 Person 50% AMI 20,100 23,000 Funding Sources: RD 515, HOME Homestead Senior Res. Wamego Phone: 785-456-1661 Fax: 785-456-1662 1008 Kaw Valley Park Circle Email: hsrwamego@homesteadks.com Wamego, Kansas 66547 Manager: Lissette Aveiro Total of 32 apartments 3- 4-plex (one/two bedroom units) and 6 one-bedroom apartments 5 – 4 plex (two bdrm w/ garage units) bldgs 26 two-bedroom apartments set around a courtyard and community bldg. Apartment Amenities: Washer/Dryers, Ceiling Fans, Mini-blinds, walk-in showers, grab bars in the Bathroom, and fully furnished kitchen w/ microwaves over the oven and dishwashers. Community Amenities: Laundry Facilities, Community Room, Computer Center, Covered Patio w/ Gas Grill, and Off-Street Parking. Rent: One-bedroom - $278-385 per month Two-bedroom - $331-410 per month Two-bedroom w/ garages - $575-625 per month Rent includes: water, trash, and sewer. Resident is responsible for: electric and gas. Minimum Age for Head of Household: 55 Maximum Annual Income – 1 Person 2 Person 3 Person 4 Person 60% AMI $26,100 $29,820 $33,540 $37,260 50% AMI 21,750 24,850 27,950 31,050 40% AMI 17,400 19,880 22,360 24,840 30% AMI 13,050 14,910 16,770 18,630 Funding Sources: LIHTC TCAP, HOME, AHP 12 Homestead Patio Homes Phone: 620-382-2606 Fax: 620-382-6044 1502 E. Main Street Email: hsrmarion@homesteadks.com Marion, KS 66861 Manager: Wendy Buchanan Total of 16 apartments 14 one-bedroom apartments 2 two-bedroom apartments Apartment Amenities: Community Amenities: Common Laundry Facilities, and Off-Street Parking. Rent: Subsidized by USDA Rural Development. Rent is 30% of household’s adjusted income minus a utility allowance. Rent includes: gas, water, sewer, and trash. Resident is responsible for: electric. Minimum Age for Head of Household: 62 or disabled of any age Maximum Annual Income - 1 Person 2 Person 3 Person 4 Person 80% AMI $34,720 $39,680 $43,920 $49,520 Funding Sources: RD 515 Main Street Place Phone: 316/554-1345 Fax: 316-554-1349 120 E. Karla Email: mainstreetplace@homesteadks.org Haysville, Kansas 67060 Manager: Steffani Kent Total of 59 apartments 7- 6-plex, 3- 4-plex, and 1- 5-plex building 38 one-bedroom apartments set around a courtyard and community bldg. 21 two-bedroom apartments Apartment Amenities: Washer/Dryer Hookups, Ceiling Fans, Mini-blinds, and Grab Bars in Bathroom. Community Amenities: Laundry Facilities, Community Room, Computer Center, Community Garden, Covered Patio w/ Gas Grill, Shuffleboard and Horseshoe Areas, and Off-Street Parking. Rent: One-bedroom - $420 per month Two-bedroom - $470 per month Rent includes: cable, water, trash, and sewer. Resident is responsible for: electric and gas. Minimum Age for Head of Household: 55 Maximum Annual Income – 1 Person 2 Person 3 Person 4 Person 60% AMI $28,560 $32,640 $36,720 $40,800 50% AMI 23,800 27,200 30,600 34,000 13 Trinity Place Phone: 913-367-1185 Fax: 913-367-4883 th 600 N. 9 Street Email: trinityplace@homesteadks.org Atchison, KS 66001 Manager: Teresa Hegarty Total of 36 apartments One 3 story building w/common interior 33 one-bedroom apartments hallways and community space 3 two-bedroom apartments Apartment Amenities: Ceiling Fans, Mini-blinds, and Grab Bars in Bathroom. Community Amenities: Common Sitting Areas on Each Floor, Laundry Facilities, Community Room, Computer Center, Craft Area, Community Patio w/ Gas Grill, and Off-Street Parking. Rent: Subsidized by USDA Rural Development. Rent is 30% of household’s adjusted income minus a utility allowance. Rent includes: water, trash, and sewer. Resident is responsible for: electric and gas. Cable: $15/month. Minimum Age for Head of Household: 62 or disabled and at least 55 year of age Maximum Annual Income – 1 Person 2 Person 3 Person 4 Person 60% AMI $25,260 $28,860 $32,460 $36,060 50% AMI 21,050 24,050 27,050 30,050 14 15 16  Center for Economic Development and Business Research Wichita State University 1845 Fairmount St. Wichita, Kansas 67260-0121 (316) 978-3225 DATE OF ANALYSIS 7/17/2015 TIME OF ANALYSIS 10:45 AM VERSION OF ANALYSIS V2 PROJECT SUMMARY (no multipliers, no substitution) Company Name Homestead Senior Residences Number of new jobs for 10-year period 2 Amount of payroll for 10-year period $711,732 Amount of capital investment for 10-year period $10,010,000 Land $515,000 Buildings $9,435,000 Machinery and Equipment $60,000 INCENTIVE SUMMARY City Incentives - Derby 1,113,878 Tax abatement 1,109,886 Sales tax exemption 3,991 Forgivable loans 0 Infrastructure 0 Cash value all other incentives 0 County Incentives - Sedgwick 697,392 Tax abatement 692,930 Sales tax exemption 4,462 Forgivable loans 0 Infrastructure 0 Cash value all other incentives 0 State Incentives 726,563 Tax abatement 507,131 Sales tax exemption 219,432 Forgivable loans 0 Training dollars 0 Infrastructure 0 Cash value all other incentives 0 School District Incentives - 260 Derby 453,139 Tax abatement 453,139 Page 1 of 15 17  Center for Economic Development and Business Research Wichita State University 1845 Fairmount St. Wichita, Kansas 67260-0121 (316) 978-3225 DATE OF ANALYSIS 7/17/2015 TIME OF ANALYSIS 10:45 AM VERSION OF ANALYSIS V2 TAX ABATEMENT PARAMETERS Real Property Number of years 10 Percentage 100.0% Personal Property Number of years 0 Percentage 0.0% CONSTRUCTION IMPACTS Jobs Multiplier 1.8413 Earnings Multiplier 1.6879 Direct jobs 116 Direct payroll earnings $5,120,000 Total jobs 213 Total payroll earnings $8,642,048 SUBSTITUTION Firm NAICS code 623000 Nursing and residential care facilities Substitution percentage applied to firm operations 100.0% FIRM MULTIPLIERS (On-going Operations) Jobs 1.3731 Earnings 1.4600 ECONOMIC IMPACT OF FIRM OPERATIONS Number of jobs 10-year period Direct - Total - Payroll earnings for 10-year period Direct $0 Total $0 Page 2 of 15 18  Center for Economic Development and Business Research Wichita State University 1845 Fairmount St. Wichita, Kansas 67260-0121 (316) 978-3225 DATE OF ANALYSIS 7/17/2015 TIME OF ANALYSIS 10:45 AM VERSION OF ANALYSIS V2 FISCAL IMPACT City Fiscal Impacts. - Derby Discounted Present value of net benefits $4,095 Rate of Return on Investment Net public benefits 10-year period $4,095 Public costs 10-year period $927,040 ROI 0.4% Benefit-Cost Ratio Public benefits 10-year period $931,135 Public costs 10-year period $927,040 Benefit-Cost Ratio 1.00 County Fiscal Impacts. - Sedgwick Discounted Present value of net benefits $14,884 Rate of Return on Investment Net public benefits 10-year period $14,884 Public costs 10-year period $580,744 ROI 2.6% Benefit-Cost Ratio Public benefits 10-year period $595,628 Public costs 10-year period $580,744 Benefit-Cost Ratio 1.03 State Fiscal Impacts Discounted Present value of net benefits $609,848 Rate of Return on Investment Net public benefits 10-year period $609,848 Public costs 10-year period $641,193 ROI 95.1% Benefit-Cost Ratio Public benefits 10-year period $1,251,041 Public costs 10-year period $641,193 Benefit-Cost Ratio 1.95 School District Fiscal Impacts. - 260 Derby Discounted Present value of net benefits $0 Rate of Return on Investment Net public benefits 10-year period $0 Public costs 10-year period $376,858 ROI 0.0% Benefit-Cost Ratio Public benefits 10-year period $376,858 Public costs 10-year period $376,858 Benefit-Cost Ratio 1.00 Page 3 of 15 19 In the preparation of this report, the Center for Economic Development and Business Research assumed that all information and data provided by the applicant or others is accurate and reliable. CEDBR did not take extraordinary steps to verify or audit such information, but relied on such information and data as provided for purposes of the project. This analysis requires CEDBR to make predictive forecasts, estimates and/or projections (hereinafter collectively referred to as “FORWARD-LOOKING STATEMENTS”). These FORWARD-LOOKING STATEMENTS are based on information and data provided by others and involve risks, uncertainties and assumptions that are difficult to predict. The FORWARD-LOOKING STATEMENTS should not be considered as guarantees or assurances that a certain level of performance will be achieved or that certain events will occur. While CEDBR believes that all FORWARD-LOOKING STATEMENTS it provides are reasonable based on the information and data available at the time of writing, actual outcomes and results are dependent on a variety of factors and may differ materially from what is expressed or forecast. CEDBR does not assume any responsibility for any and all decisions made or actions taken based upon the FORWARD-LOOKING STATEMENTS provided by CEDBR. Page 4 of 15 20  Center for Economic Development and Business Research Project or Company Name: Homestead Senior Residences Wichita State University Date of Analysis: 7/17/2015 1845 Fairmount St. Wichita, Kansas 67260-0121 Version of Analysis: V2 (316) 978-3225 City Fiscal Impacts. - Derby Benefit-Cost Ratio Present Present Value Value of of Net Net Benefits Benefits 1.10 Yr. 1 $2,940 Yrs. 1-2 $3,062 Yrs. 1-3 $3,199 Yrs. 1-4 $3,340 Yrs. 1-5 $3,477 1.00 Yrs. 1-6 $3,609 Yrs. 1-7 $3,737 Yrs. 1-8 $3,861 Yrs. 1-9 $3,980 Yrs. 1-10 $4,095 0.90 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 21  Center for Economic Development and Business Research Project or Company Name: Homestead Senior Residences Wichita State University Date of Analysis: 7/17/2015 1845 Fairmount St. Wichita, Kansas 67260-0121 Version of Analysis: V2 (316) 978-3225 County Fiscal Impacts. - Sedgwick Benefit-Cost Ratio Present Present Value Value of of Net Net Benefits Benefits 1.40 Yr. 1 $14,004 1.20 Yrs. 1-2 $14,096 Yrs. 1-3 $14,201 1.00 Yrs. 1-4 $14,308 0.80 Yrs. 1-5 $14,413 Yrs. 1-6 $14,513 0.60 Yrs. 1-7 $14,611 0.40 Yrs. 1-8 $14,705 0.20 Yrs. 1-9 $14,796 Yrs. 1-10 $14,884 0.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 22 CEDBR-FISCAL IMPACT MODEL FIRM DATA SHEET COMPANY INFORMATION Company name or project name Homestead Senior Residences Contact name Tom Bishop Contact telephone number (785) 364-0110 Contact e-mail address Company NAICS Code - Please select a NAICS code from the list provided. Model 623000 Nursing and parameters are set based on the NAICS selected. residential care facilities Substitution Override Year of application 2015 SITE LOCATION - If incentives are being requested for more than one physical location, and these locations are in Street Address City Derby County Sedgwick School District 260 Derby REAL PROPERTY CONSTRUCTION AND IMPROVEMENTS - If construction is expected to significantly exceed 12- Expansion #1 Year of expansion 2016 Market value of firm's initial NEW OR ADDITIONAL investment in: Land $515,000 Building and improvements $9,435,000 Furniture, fixtures and equipment (including machinery) $60,000 Initial construction or expansion: Cost of construction at the firm's new or expanded facility $9,435,000 Amount of taxable construction materials purchased in: City $660,000 County (should include city amount) $1,540,000 State (should include city and county amounts) $3,520,000 Amount of taxable furniture, fixtures and equipment purchased in: City $15,000 County (should include city amount) $18,000 State (should include city and county amounts) $48,000 Total construction salaries $5,120,000 Expansion #2 (if applicable) Year of expansion Market value of firm's initial NEW OR ADDITIONAL investment in: Land Building and improvements Furniture, fixtures and equipment (including machinery) Initial construction or expansion: Cost of construction at the firm's new or expanded facility Amount of taxable construction materials purchased in: City County (should include city amount) State (should include city and county amounts) Amount of taxable furniture, fixtures and equipment purchased in: City County (should include city amount) State (should include city and county amounts) Total construction salaries Page 7 of 15 23  Expansion #3 (if applicable) Year of expansion Market value of firm's initial NEW OR ADDITIONAL investment in: Land Building and improvements Furniture, fixtures and equipment (including machinery) Initial construction or expansion: Cost of construction at the firm's new or expanded facility Amount of taxable construction materials purchased in: City County (should include city amount) State (should include city and county amounts) Amount of taxable furniture, fixtures and equipment purchased in: City County (should include city amount) State (should include city and county amounts) Total construction salaries OPERATIONS First Year of Full Operations As a Result of This Project New or additional sales of the firm related to this project Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Percent of these sales subject to sales taxes in the: City County State Annual net taxable income, as a percent of sales, on which state corporate income taxes will be computed: New or additional purchases of the firm related to this project Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Percent of these purchases subject to sales/compensating use taxes in the: City County State Page 8 of 15 24 EMPLOYMENT Number of NEW employees to be hired each year as a result of this project Year 1 2 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Number of these employees moving to county each year FROM OUT-OF-STATE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Number of these employees moving to county each year FROM OTHER KANSAS COUNTIES Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Weighted average annual salary of all NEW employees, including all employees hired to date, related to this project Year 1 $32,500 Year 2 $33,150 Year 3 $33,813 Year 4 $34,489 Year 5 $35,179 Year 6 $35,883 Year 7 $36,600 Year 8 $37,332 Year 9 $38,079 Year 10 $38,841 Page 9 of 15 25 VISITORS - Include customers, vendors and company employees from other locations in the count of visitors Number of ADDITIONAL out-of-county visitors expected at the firm as a result of this project Year 1 8 Year 2 36 Year 3 42 Year 4 45 Year 5 45 Year 6 45 Year 7 45 Year 8 45 Year 9 45 Year 10 45 Number of days that each visitor will stay in the area 2 Number of nights that a typical visitor will stay in a local hotel or motel 1 Percentage of visitors traveling on business 0% Percentage of visitors traveling for leisure 100% Percentage of visitor's expenditures spent in the same city as firm's location 100% Percentage of visitor's expenditures spent in the same county as firm's location 100% Percentage of visitor's expenditures spent in Kansas 100% PAYMENT BY THE COMPANY TO TAXINING JURISTICTIONS - Such as payments in lieu of taxes Firm payments to the City Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Firm payments to the County Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Firm payments to the State of Kansas Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Page 10 of 15 26 Firm payments to the School District Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Page 11 of 15 27 CEDBR-FISCAL IMPACT MODEL INCENTIVE INFORMATION CONTACT INFORMATION FOR CEDBR REGARDING INCENTIVE AMOUNTS Contact name Contact telephone number Contact e-mail address SALES TAX EXEMPTION ON CONSTRUCTION MATERIALS Sales tax exemption EXPANSION #1 (please enter yes or no) Yes Percent of construction material costs funded by IRB for EXPANSION #1 100.0% Sales tax exemption EXPANSION #2 (please enter yes or no) No Percent of construction material costs funded by IRB for EXPANSION #2 0.0% Sales tax exemption EXPANSION #3 (please enter yes or no) No Percent of construction material costs funded by IRB for EXPANSION #3 0.0% Sales tax exemption EXPANSION #4 (please enter yes or no) No SALES TAX EXEMPTION FOR OPERATIONS Value of sales tax exemption for OPERATIONS -- CITY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Value of sales tax exemption for OPERATIONS -- COUNTY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Value of sales tax exemption for OPERATIONS -- STATE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 PROPERTY TAX ABATEMENT Property tax abatement - Real property land and buildings Number of Years 10 Percentage 100.0% Property tax abatement - Machinery and equipment Number of Years 0 Percentage 0.0% Page 12 of 15 28 FORGIVABLE LOANS - Cash value Forgivable loans (cash value) -- CITY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Forgivable loans (cash value) -- COUNTY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Forgivable loans (cash value) -- STATE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 STATE TRAINING DOLLARS Training dollars KIT/KER/IMPACT (cash value) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Page 13 of 15 29 INFRASTRUCTURE IMPROVEMENTS Infrastructure improvements (cash value) -- CITY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Infrastructure improvements (cash value) -- COUNTY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Infrastructure improvements (cash value) -- STATE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Page 14 of 15 30 OTHER INVENTIVES - Cash value Cash value of all other incentives -- CITY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cash value of all other incentives -- COUNTY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cash value of all other incentives -- STATE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Page 15 of 15 31