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Home My WebLink AboutResolution 3125 Set public hearing for AK tax reduction - - - ................ m_ COMMISSION RESOLUTION NO. 3125 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING A PUBLIC HEARING TO HEAR PUBLIC COMMENT ON THE APPLICATION OF AK SPECIAL TIES, INC., FOR TAX REDUCTION UNDER SECTION 15. 24.1401, ET SEQ, MONTANA CODE ANNOTATED AND CITY OF BOZEMAN COMMISSION RESOLUTION NO. 2660. WHEREAS, at its meeting held on the 15th day of April 1996, the City Commission acknowledged receipt of an application from AK Specialties, Inc., Bozeman, Montana, for tax reduction based upon improvements to their business pursuant to Section 15-24-1401, et seq, M.C.A., and City of Bozeman Commission Resolution No. 2660; and WHEREAS, Section 15~24-1401, et seq. M.C.A.. authorizes local government to grant tax reduction for qualifying improvements or modernized processes that represent new or expanding industries whereby said qualifying improvements or modernized processes may be taxed at 50 percent of their taxable value in each of the first five (5) years after the construction permit is issued, and that in each year thereafter, the percentage of taxation shall be increased by equal percentages until the full taxable value is attained in the tenth (10th) year and that in subsequent years, the property shall be taxed at 100 percent of its taxable value; and WHEREAS, the Bozeman City Commission enacted Commission Resolution No. 2660 to implement the tax reduction specified in Section 15-24-1401, et seq, M.C.A., to qualifying new or expanding industry; and WHEREAS, AK Specialties, Inc.. Bozeman, Montana, sets forth in its application certain information regarding the improvements and modernized processes and for which Color World of Montana requests said tax reduction; and WHEREAS. Section 15-24-1402(2), M.C.A., requires the governing body to give notice of a public hearing to hear comment, as set forth in Section 76-15-103, M.C.A. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the Clerk of the Commission be directed to give notice to the public pursuant to the legal requirements of Section 15-24-1402 and Section 76-15-103, M.C.A., of a public hearing to be held upon said application on the 15th day of July 1996. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 17th day of June 1996. ATTEST: (9fM f ~ DON E. STUECK, ayor ~dJ2g::-... R IN L. SULLIVAN Clerk of the Commission NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Commission of the City of Bozeman, Montana, on the 15th day of July 1996 at the hour of 7:00 p.m., in the Commission Room of the Municipal Building, 411 East Main Street, Bozeman, Montana, will hear public comment on the application of AK Specialties, Inc., for tax reduction pursuant to Section 15-24~ 1402, Montana Code Annotated, and City of Bozeman Commission Resolution No. 2660, whereby qualifying improvements or modernized processes which represent new or expanding industry may be taxed at 50 percent of their taxable value in each of the first five (5) years after the issuance of the construction permit and that in each year thereafter, the percentage of their taxable value shall be increased by an equal percentage of their taxable value until the full taxable value is attained in the tenth (10th) year and thereafter taxed at 100 percent of its taxable value. For additional information, please contact Robin Sullivan, Clerk of the Commission, at 411 East Main Street, Bozeman, Montana, or telephone 582-2320 (TOO 582-2301) during regular business hours. ROBIN L. SULLIVAN Clerk of the City Commission Legal Ad Publish: Friday, June 21, 1996 Sunday, July 7, 1996 -- -..-- - _.__n. .,--- ----. ------ E8~ AK Specialties, Inc. 415 A East Birch Street Bozeman, Montana 59715 (406) 587-2205 Fax 587-5633 PRECISION :2 March 28, 1996 City Commission City of Bozeman 411 E. Main BOZEMAN, MT 59715 Dear City Commission: We are a fairly new business to Bozeman, specializing in machining metals or plastics. We have had approximately fifty different customers with nine of those generating major ongoing contracts. One of our biggest customers is in California. New to us this year, they have been over 50% of our sales since January 1st. Due to requests trom our customers, we decided to invest in two major machines so that we could do large production runs. The first machine is a Haas Vertical Machining Center leased on June 7, 1995. It has generated business to make the monthly payments, plus we hired two more employees, first part time, now full time. The second machine is a Haas CNC Lathe leased on February 5, 1996. It, too, is paying for itself, and we hired another employee part time. We are projecting that we will need him full time in the near future. We would like to be considered for the tax incentives offered to expanding manufacturing businesses. Our line of production qualifies us as manufacturing. We are a clean, productive business with many satisfied customers local and distant. Thank you for your consideration. Sincerely, ..-......-~ --~._( .Tr~ Tony J. J President, AK Specialties, Inc. SCHEDULE 'A' EQUIPl'tIENT SCHEDULE TIDS SCHEDULE is attached to and made part of a certain Lease Rental Agreement, munber 95140001, between CNC Associates, Inc., as Lessor, and A K Specialties, Inc., as Lessee. QU~I'{TITY EQlJIPIYfENT DESCRIPTION SERIAL NUMBER 5000 (1) HA.A.S Vertie<tl Machining Center: Model VF ~ 3, including: (1) Rigid Tapping $71 ,900 (1) Programilliible Coolant Nozzle (1) Chip Conveyor (1) Coordinate Rotation and Scaling Option 5,995 (1) 3 S' Floppy Disk (1) Custom M:acros Option (1) wt TooLing 4,544 Set-up 1,000 Freight 1,200 $84,639 The Lessee hereby certifies that the description of personal prorerty set forfu above comtitutes an accurate aC(:{)unt of the Equipment, as such is defined in the u.1se Rental Agreement of which t.his Schedule is a part. . LESSOR: CNC Associates, Inc. LESSEE: A K Spe.:;ialties, Inc. By: ~~ By: ~Tk~ Title: Secretary Title: President Date: 7/13/95 Date: 0-1-9:5 ___._.,., ...__ ____.,.__....__._u ___ ..._......u.._.___ _.._.._____ ..-..,.---...-..-- --..-.-....- .-.------ w .,' .~ . Page ----Lof----L Lease No. 022-3001206 FIRST SECURITY LEASING EXHIBIT A to Lease Sch~dule to Mast~r Equipm~nt Lease AgfCem~nt DESCRIPTION OF EQUIPMENT Id~nlitication New Invoic~ or or Pur<:hase ~ Vendor Description Serial Number ~ ~ I KING MACHINE HAAS CNC/LATHE 60254 NEW $ 59,500.00 I HAAS HYDRAULIC I'KG NEW 6,495.00 I HAAS CHIP CONVBYOR NEW 4,995.00 1 3.5 FLOPPY DISC DRIVE NEW 995.00 1 TOOL WRENCH NEW 49.00 4 TOOL HOLDERS 3/4, 1-1/4, 1-112 NEW 400.00 4 TOOL HOLDERS 3/4 ONLY NEW 160.00 1 MACHINE SETUP 1,500.00 1 ROY AL TOOLING PKG NEW 2,082.00 1 V ALENITE TOOLING PKG NEW 2,149.45 1 HARDINGE TOOLING PKG NEW 1,351.55 FRT INS. & HANDLING - OUTGOING 1.350,00 TOTAL INVOICE PURCHASE PRICE S 81,633.00 LESSEE: A K SPECIAL TIES. INc., A MONTANA CORPORATION and PAUL D. CHAUSSE and CONNfE J. CHAUSSE and TONY J. KNICK and ANN E. KNICK. AS INDIVIDUALS A~MONTANACORPORATlON By: X ".-" ~-- Its: r BY: y (171.w . CONNIE J. CH BY: XG-Mi/lVt', K-1UV't ANN E. KNICK, AN INDIVIDUAL AK SPECIAL TIES, INC. 03/21/96 Account QuickReport As of June 7,1995 Type Date Num Name Memo Split Amount Balance 1520. Machinery and equipment 54,643.77 General Journal 6n/95 11 Haas Vertical... 2710. Cap. Ie... 84,639.00 139,282.77 Total 1520 . Machinery and equipment 84,639.00 139,282.77 TOTAL 84,639.00 139,282.77 ~ I Page 1 AK SPECIAL TIES, INC. 03/21/96 Account QuickReport As of February 5,1996 Type Date Num Name Memo Split Amount Balance - 1520. Machinery and equipment 139,530,69 General Journal 2/5/96 Haas CNC lat... 2730. Cap. Le.., 81 ,633.00 221 ,163,69 Total 1520 ' Machinery and equipment 81 ,633.00 221 ,163,69 TOTAL 81,633.00 221,163.69 l . Page 1 ~ -- AK SPECIAL TIES, INC. CUI/. 08/05/98 Sales by Customer Summary 'flUEI/. January 1 through June 5, 1996 'lIAL Jan 1 - Jun 5, '98 Jan 1 - Jun 6, '96 ~-~~~'~"~"--~~--_.,,..,_.." AT & T Bell Laboratories 0.00 450.00 Big Sky Laser Technologies 4,191.75 2,450.25 " Blosurface Technologies Corp. 6,997.30 8,009.76 Bullwhacker Industries 15.00 0.00 Campus Stores 0.00 300.00 Center for Biofilm Engineering 0.00 783.50 Chemical Engineering Dept. 40.00 0.00 DeGldeo's 15.00 0.00 Dynojet Research 3,136.50 840.00 ERC 0.00 95.00 v' Exclusive Design Company Co. 1 i fo r 111 d, 65,328.40 0.00 FastenalCompany 10.00 0.00 Head Room 500.00 0.00 'V"' ILX Lightwave Corp, 1,713.00 0.00 Kelly Hall 0.00 21.00 Keystone Machine 1,320.00 3,480.20 .../ Kid-Kart Inc. 6,531.00 0.00 King Machine, Inc. 495.00 0.00 Mountain Arts 0.00 50.00 NC Solutions 1 ,033.44 730.00 Optical Dimensions 60.00 605.00 ..j Pathway Systems, Inc. 66,983.25 32,364.92 Paul T. Oswald, CPO 105.70 0.00 PC Logic 980.00 0.00 Pearlsmith 161.48 0.00 Quantum Composers 957.25 375.00 .J Revelation Engineering 3,662,00 175,00 Sam Patton 0.00 30,00 Schmm Industries, Inc. 0.00 60.00 School of Art 40.00 0.00 TMA Technologies, Inc. 0.00 10,356.58 Vision One 335,00 490.00 William G. Walter 0.00 344.40 ~.~.~~..~-~-- TOTAL 164,811.07 62,010.81 ,,---~,,'_.~'~~-'. ~~~~~ Page 1 --.------....-----.-- ----