Title
Resolution to Approve Industrial Facilities Exemption Certificate between the City of Ann Arbor and Arbor Networks
Memorandum
Attached for your review and approval is a resolution and proposed abatement agreement (Industrial Facilities Exemption Certificate) for Arbor Networks Inc. The purpose of this abatement is to attract and retain corporate investment in the City of Ann Arbor.
Arbor Networks, Inc. is a company that is in the business of network security and operational performance products. The company is requesting an abatement of $883,527 of real property improvements and $7,790,454 of new personal property and equipment (see addendum to the attached proposed agreement).
Arbor Networks was granted a tax abatement in 2008 for $4,961,800 of which $1,350,000 was real property improvements and $3,611,800 in personal property. Arbor Networks has added $1,350,000 in real property improvements and $3,118,728 in personal property. The abatement agreement in 2008 required them to add at least 90% of the $4,961,800 which they have.
The abatement agreement in 2008 also required Arbor Networks to move 74 jobs to the facility and add not less than 8 jobs. Arbor Networks reported that as of December of 2010 there were 74 jobs at this location, but given the economy they were not able to add an additional 8 jobs.
City Administration recommends approval of this abatement request for the following reasons:
· The digital information business is continually changing with new and faster technology and Arbor Networks needs new test equipment and digital equipment, with anticipation of 20 new employees resulting to this facility.
· The attraction and retention of these operations is consistent with the City and SPARK’s economic growth objectives.
Staff
Prepared by: David Petrak, City Assessor
Reviewed by: Tom Crawford, Financial and Administrative Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, Pursuant to P.A. 1...
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