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HomeMy WebLinkAbout028 - 04/17/2012 - APPROPRIATING GENERAL FUND RESERVES FOR THE PURPOSE OF REBATING USE TAX TO HEWLETT PACKARD COMPANY I ORDINANCE NO. 028, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING GENERAL FUND RESERVES FOR THE PURPOSE OF REBATING USE TAX TO HEWLETT PACKARD COMPANY IN SUPPORT OF THE BUILDING SIX ANNEX EXPANSION IN ACCORDANCE WITH RESOLUTION 2010-029 WHEREAS, on May 18, 2010, City Council approved Resolution 2010-029 approving a Business Investment Agreement ("Agreement") between the City and Hewlett Packard Company ("HP") for the Building 6 Annex Expansion project (the "Project"); and WHEREAS, the Project includes retrofitting an HP building located on the Harmony Road facility to include a 40,000 square foot expansion and lab equipment investment for an Engineering Focused Lab facility; and WHEREAS, the total construction and equipment investment for the Project will total approximately $64.4 million and create over 100 high-paying, primary jobs that will provide significant economic benefit to the community at large; and WHEREAS, the City's Economic Development Department has concluded that the Project will generate an increase in tax revenue for the City, over and above the rebate amount as stated in the Agreement, in approximately the following amounts: (i) $450,000 in additional Use Tax over the next ten years, (ii) $150,000 in new annual Personal Property Tax in the first ten years and $250,000 in new Property Tax in subsequent years, and (iii) $88,000 in new annual Real Property Tax revenues; and WHEREAS, in accord with the terms of the Agreement, HP has completed the Project and has submitted an application for a one-time Use Tax rebate in the amount of $241,193 for the investment of$30 million in lab equipment; and WHEREAS,Article V,Section 9,of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year,provided that the total amount of such appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds that providing financial assistance to HP, upon the terms and conditions of the Agreement, is in the best interests of the City and serves the important public purposes of increasing employment within the City, stabilizing and improving the long-term tax base of the City, and promoting economic development within the City. Section 2. That there is hereby appropriated for expenditure from reserves in the General Fund the sum of TWO HUNDRED FORTY ONE THOUSAND AND ONE HUNDRED NINETY THREE DOLLARS ($241,193) for the purpose of rebating Use Tax to Hewlett Packard Company in support of the Building Six Annex Expansion project. Introduced,considered favorably on first reading,and ordered published this 3rd day of April, A.D. 2012, and to be presented for final passage on the 17th day of April, A.D. 2012. nE " ix.�P�l1Gy ayor ATTEST: Interim City Clerk QLORP� Passed and adopted on final reading on the 17th day of April, A.D. 2012. My{Y or ATTEST: 00 OF FORTCO Interim City Clerk cO�OR.