Title
Resolution to Approve Industrial Facilities Exemption Certificate Application of Edwards Brothers, Inc.
Memorandum
Attached for your review and approval is a resolution approving an Industrial Facilities Exemption Certificate (tax abatement) Application for Edwards Brothers, Inc. under the terms of an Exemption Certificate Agreement between the City and Edwards Brothers.
Edwards Brothers, Inc. is an Ann Arbor based company that is in the business of book printing and binding.
The company is requesting an abatement of $3,620,518.00 of real property improvements and equipment. The tax abatement requested is for a twelve-year period, terminating December 30, 2019. It would cover real property improvements to Edward Brother’s property in 2007 and 2008 and new personal property equipment purchases in 2007 and 2008.
City Administration recommends approval of this abatement request for the following reasons:
· Edwards Brothers is committed to Ann Arbor but is facing pressures from national competitors’ growth, making it more difficult to compete.
· The printing business is increasingly moving to color printing and Edwards Brothers needs to acquire a new press, with anticipation of 10 new employees resulting from the new press acquisition.
· The attraction and retention of these operations is consistent with the City and SPARK’s economic growth objectives.
Under the terms of the Exemption Agreement, Edward Brothers agrees to maintain operations within the City during the twelve-year period. It further agrees to add not less than 10 jobs at its facility and comply with all of the requirements of the City’s Living Wage Ordinance. Edward Brothers will provide documentation to the City Assessor of actual costs of Real Property Improvements and New Personal Property acquired. If costs are less than the estimated cost on the Application for the Exemption Certificate by more than twenty percent or if taxable values of the property assessed for tax year 2007...
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