HomeMy WebLinkAboutResolution 3176 Approving application of Color World
COMMISSION RESOLUTION NO. 3176
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONT ANA, APPROVING THE APPlICA TION OF COLOR WORLD OF MONT ANA,
INC., FOR TAX REDUCTION UNDER SECTION 15-24-1401, ETSEQ., MONTANA
CODE ANNOTATED, AND CITY OF BOZEMAN COMMISSION RESOLUTION NO.
2660.
WHEREAS, on the 29th day of June 1987, following due and proper public hearing,
the
City Commission did adopt Commission Resolution No. 2660, defining, approving and adopting the
tax incentive program as set forth in Section 14-24-1402, M. C.A., for qualifying improvements and
modernized processes of new industry or expanding industry within the jurisdictional limits of the
City of Bozeman, Montana; and
WHEREAS, on the 7th day of April 1997, the City Commission did adopt Commission
Resolution No. 3170, setting the public hearing on the application of Color World of Montana, Inc.,
for tax reduction under Section 15-24-1401, et seq., M.C.A.; and
WHEREAS, on the 5th day of May 1997, following due notice, the City Commission did
conduct the public hearing as set forth in Commission Resolution No. 3170; and
WHEREAS, public comment was received prior to and during the public hearing; and
WHEREAS, it appears the applicant's taxes have been paid in full.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, that the application of Color World of Montana, Inc., for tax reduction under Section
15-24-1401, et seq., Montana Code Annotated, and Commission Resolution No. 2660, is hereby
approved for those qualifying improvements or modernized processes totalling $500,000.00, as
described on Exhibit" A", attached hereto and incorporated by this reference as though fully set
forth herein.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 2nd day of June 1997.
(D~ [~
DON E. STUECK, Mayor
ATTEST:
rJtJ~
ROBIN L. SULLIVAN
Clerk of the Commission
APPROVED AS TO FORM:
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EXHIBIT "A"
colo~ WO~lO
P ~ II nTE~:l
March 6, 1997
Bozeman City Commission
City Hall
Bozeman, MT
Dear Sir:
This letter represents an addendum to Color World Printer's application for tax abatement under Tille 15-
Chapter 24- Part 14 MCA submitted on 27 Fcbruary 1997. Color World has been working closely with the
County Assessor on how the law applied to a number of new purchases we have made. On March 6th, we
were informed by the County Assessor that additional purchases we made qualified under the "new and
expanding" tax abatement. We did not make the I March deadline because the County Assessor was still
making a determination on our equipment. This additional equipment is listed here. All other information
on the earlier application still applies. Please call if you have any questions.
..,'- .
Process: Electronic Image Assembly and Electronic Photographic Scanning
Description of Process: This process is the major step in preparing, constructing, and creating the
material used in the four-color printing process. Once a client has done the basie design and creative
work, our plant takes the ideas and materials and creates printing plates. The Electronic Image Assembly
process is used to create the film necessary to make plates. This process replaces a highly-manual process
that was time-intensive and slow. Nearly all printing begins with electronic assembly and Color World
employs this technology to stay competitive and provide high quality services to our customers.
Description of Equipment: (I) Crosfield Studio 9000 workstation. This is a computer workstation with a
video display, hard disk storage, multiple CPUs, and specialized software. Images are masked, cropped,
corrected, placed and adjusted on this workstation for final placement to film before the printing process.
(2) Crosfield Scanner and Imagesetter. This is a laser-optic drum scanner and output device. Photos are
rcceived from clients and placed on this device. They are converted into digital files for placement in
computer files and outpullo film. This device allows full color printing to inelude photographs.
Total Cost of Equipment: $250,000
Sincerely,
~/ .).) ~--
-- -----
Michael J. Burgard
General Manager, Color World Printers
201 E. Mendenhall Street. P.O. Box 1088 . Bozeman, Montana 59715
Telephone 406/587-4508 . 1-800/332-3303
FAX 406/587-0628
EXHIBIT "A"
colo~ WO~lLD
p~IUnrr~~L
Fehruary 25, 1997
City Clerk, Bozeman City Commission
City Hall
Bozeman, MT 59715
Dear Commissioners:
This is a formal application for tax ahatementunder Title 15-Chapter 24- Part 14 MCA. Enclosure (J) is
the typed application form. I have listed here the specific: equipment and processes requested in this
application. I have also listed short history of Color World Printers and the henefits of acquiring this
equipment.
Process: Multi-Color Commercial Printing
Description of Process: This process is the primary process involved in producing one, two or four-color
printed material. It involves running paper through a printing press, applying ink to the paper in a highly
sophisticated ink and water process, and drying the ink. The resultant products are brochures, art prints,
posters, catalogs, books, data sheels, newsletters, and post cards.
Description of Equipment: (1) Heidelberg MOZP 2/C press. This is a two color printing press designed
to complement our current four color printing press. The 2/C press is not only used for printing complete
one and two color jobs, it is also used to provide varnishes and fifth colors to four color jobs. None of the
equipment is used for administrative or selling purposes.
Total Cost of Equipment: $250,000
While a benefit analysis is nol required as part of an application for tax ahatement under 15-24-1401, I
have included a short list of community benefits and a history of Color World Printers contribution to the
community.
History: Color World Printers has heen in husiness since 1967. We have a long history of service to the
community and participation in community events. We employ over 35 people in a variety of sales,
produc:lion and manufacturing positions. Our total payroll is in excess of $1 ,000,000. We hire people from
within the community whenever possible. We regularly contribute to such community functions as the
Museum of the Rockies, MSU Rodeo, MSU Athletics, and the chamber of commerce.
Color World Printers is family-owned and recently was purchased by Michael Burgard and Jeff Burgard,
sons of the original founder, Stan Burgard. We take great pride in our desire to produce quality work at a
fair pricc while treating employees fairly. Many of our employees are among the highest paid
manufac:luring jobs in Bozeman based on the last survey from the chamber of commerce. We arc
committed to the Bozeman community and the family a long-term desire to make Color World succeed in
Bozeman.
In addition to this purchase for which we are applying for a tax abatement, Color World purchased the
assels and equipment of Digital Colour of Belgrade. Digital Colour was a fully equipped digital prepress
house. Their equipment is the best in the state. They also had numerous out-of-state clients. The business
was doing poorly overall and was in danger of closing. We purchased the business, kept four of the
employees and have maintained the majority of the customer base.
Benefits: The specific benefits of Color World's purchase include:
* Increased sales: Color World is on a growth path of 23% a year. This is an increase over our
growth percentage from last year. We sell printing throughout the state of Montana as well as in Idaho
and Wyoming and California. The majority of our purchases and expenditures arc local or Montana-
201 E. Mendenhall Street . P.O. Box 1088 . Bozeman, Montana 59715
Telephone 406/587-4508 . 1-800/332-3303
FAX 406/587-0628
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EXHIBIT "A"
based.
* Increased employees: Color World continueR to pay top dollar Ralaries. We have
over 35 full
and part-time personnel. We are in the proceRs of hiring thrcc new personnel in conjunction with the
growth and expanRion based on our new equipment. We anticipate hiring more personnel during the next
12-18 months.
* Increase company stability: This move helps to insure Color World can be a viable
business in
the electronic age. It givcR 35 people a secure job, allows us to serve over 500 customers and continues
Color World'R role as one of the leading printers in Montana.
* Increased opportunity to reeruit new bURiness, both in-state and out-of-state:
This purchase
along with our purchase of Digital Colour allows us to continue to position Color World as a excellent
printing resource for out-of-Rtate printing and prcprcRS work. In the last three months along, wc have done
over $55,000 worth of prepresR work that would have normally be done out of state. We havc abo
increased our out of Rtate printing clients in the laRt six month.
Sincerely,
(?ft?~
Michael 1. Burgard
VP, Finance, Color World PrinterR
EncloRure: (I) Tax Application