HomeMy WebLinkAboutResolution 3111 Approving application of Color World for tax reduction
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COMMISSION RESOLUTION NO.3'"
A RESOLUTION OF THE CITY COMMISSION
OF THE CITY OF BOZEMAN,
MONT ANA, APPROVING THE APPUCA
TION OF COLOR WORLD OF MONT ANA,
INC., FOR TAX REDUCTION UNDER
SECTION' 5-24-'40' , ET SEa., MONT ANA
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 4th day of March
1996, the City Commission did adopt Commission
Resolution No. 3106, setting the public hearing on the application of Color World of Montana, Inc.,
for tax reduction under Section 15-24~1401, etseq., M.C.A.; and
WHEREAS, on the 1 st day of April
1996, following due notice, the City Commission did
conduct the public hearing as set forth in Commission Resolution No. 3106; 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 $283,379.00, as
described on Exhibit II 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 15th day of April 1996.
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DON E. STUECK, Mayor
ATTEST:
~J~
ROBIN L. SULLIVAN
Clerk of the Commission
APPROVED AS TO FORM:
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EXHIBIT "A"
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January 18,1996
City Clerk, City Commissioner
City Hall
Bozeman, MT 59715
Dear Commissioners:
This is a formal application for tax abatement under Title I5-Chapter 24- Part 14 MCA. Enclosure (1) 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 benefits of acquiring this
equipment.
Process: Electronic Image Assembly
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 basic 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
needs to employ this technology to stay competitive.
Description of Equipment: (1) Scitex Dolev 400 Imagesetter; (I) Howtek Scanner; (4) Apple Macintosh
workstations; (1) Textronix Dye Sublimation Printer; (1) Xante High-resolution Laser Proofer; (1) AST
IBM-Compatible workstation; Numerous Ethernet cards, software products, and connections; (5) APC
UPS systems; (1) Barco Hi-resolution Color Correcting Monitor; Numerous Syquest backup drives;
Numerous software packages including Adobe Photoshop, Quark Express, Adobe Pagemaker; Adobe
Illustrator; Scitex Autoframes; Abode Streamline; and Howtek Aurora Color Correction. This equipment
was purchased from a single source and is all part of the overall Electronic Image Assembly process, None
of the equipment is used for administrative or selling purposes_
Total Cost of Equipment: $251,891
Process: Automated Job Costing, Job Tracking, and Job Scheduling
Description of Process: Our system is used to estimate all jobs, schedule the individual aspects of each
job, track their progress through the plant, determine their job costs, and provide sales, marketing and
financial analysis after the job is complete. Our automated system is an integral part of our entire
manufacturing process.
Description of Equipment: (1) Wyse 60 MHz Pentium Server; Covalent Job scheduling and
manufacturing process software. This includes software to price all jobs; to schedule work in the plant; to
record all costs; to track the flow of work through the plant, to bill all customers; and to analyze the
manufacturing process; (1) Digiboard Terminal Server; (1) Wyse Forte 486 Computer; Numerous
Ethernet connections and connectivity software. Again, this system is pu'rchased as a whole and will be
listed on the tax form as a single line item.
Total Cost of Equipment: $31,488
Grand Total of Requested Tax Abatement: $283,379
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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While a benefit analysis is not required as part of an application for tax abatement 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 been in business since 1967. We have a long history of service to the
community and participation in community events. We employ over 30 people in a variety of sales,
production and manufacturing positions. Our total payroll is in excess of $800,000. 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 price while treating employees fairly. Many of our employees are among the highest paid
manufacturing jobs in Bozeman based on the last survey from the chamber of commerce. We are
committed to the Bozeman community and the family a long-term desire to make Color World succeed in
Bozeman.
Benefits: The specific benefits of Color World's purchase include:
*Increased sales: Color World is on a growth path of 15% a 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 are local or Montana-based.
* Increased employees: Color World has hired 6 new employees since the introduction of the
Electronic Image Assembly. Most of these jobs are $10 an hour or higher. Our business plan shows hiring
2-3 more people in 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 gives 30 people a secure job, allows us to serve over 500 customers and continues
Color World's role as one of the leading printers in Montana.
* Increased opportunity to recruit new business, both in-state and out-of-state: There are many
potential customers who will only work with a printer that has electronic image assembly. We will be
working with additional out-of-state customers to bring their work into Montana We have already
acquired one $45,000 a year out-of-state account based on the new equipment.
Sincerely,
~?/
Michael 1. Burgard
VP, Finance, Color World Printers
Enclosure: (1) Tax Application