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HomeMy WebLinkAboutResolution 3111 Approving application of Color World for tax reduction ~.... - - 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. {~ t!',/J~~ DON E. STUECK, Mayor ATTEST: ~J~ ROBIN L. SULLIVAN Clerk of the Commission APPROVED AS TO FORM: _. . --- - ""'" ..- --. - -= EXHIBIT "A" colo~ WO~lbfO) P ~ II(fi)lr~~:l 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 .. . --.- ...------ .."."",..-' - -- .-- 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