HomeMy WebLinkAboutRes.3375.01-19-2021 BILL NO. 21-08 RESOLUTION NO. 33-6
RESOLUTION OF OFFICIAL INTENT OF THE CITY OF CAPE
GIRARDEAU, MISSOURI, TOWARD THE ISSUANCE OF
INDUSTRIAL REVENUE BONDS TO FINANCE AN
INDUSTRIAL DEVELOPMENT PROJECT AND AUTHORIZING
CERTALN ACTIONS RELATING THERETO.
WHEREAS, the City of Cape Girardeau, Missouri (the "City"), is authorized and empowered
under the provisions of Article VI, Section 27(b) of the Missouri Constitution, as amended, Sections
100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended (collectively, the "Act"),
and its City Charter to purchase, construct, extend and improve certain projects (as defined in the Act) for
the purposes set forth in the Act and to issue industrial revenue bonds for the purpose of providing funds
to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or
corporations for manufacturing, commercial, warehousing and industrial development purposes upon
such terms and conditions as the City deems advisable; and
WHEREAS, Chief Property Development, LLC, a Missouri limited liability company (the
"Company"), has requested that the City(1) issue its industrial revenue bonds in an approximate principal
amount of$10,000,000 (the "Bonds") to provide funds to pay certain costs of acquinng and constructing
a commercial building to be used for classrooms and other purposes (the "Project Improvements") to be
located at 340 S. Frederick Street in the City (the "Project Site" and, together with the Project
Improvements,the"Project");and
WHEREAS, the Bonds will be payable solely out of payments, revenues and receipts derived
from the lease of the Project by the City to the Company; and
WHEREAS, the Company will sublease the Project to Southeast Missouri State University to
enable the Department of Art & Design to provide expanded opportunities for students and to expand the
presence of the River Campus; and
WHEREAS, the City has determined that it is necessary and desirable to declare the official
intent of the City to finance the costs of the Project from the proceeds of the Bonds, subject to certain
terms and conditions set forth in this Resolution; and
WHEREAS, the Act requires the City to prepare a plan in connection with any industrial
development project proposed to be undertaken pursuant to the Act; and
WHEREAS, a Plan for an Industrial Development Project and Cost/Benefit Analysis for the
Project(the"Plan") has been prepared; and
WHEREAS, the Act requires the City Council, not less than 20 days before the City Council's
approval of the Plan, to provide notice thereof to all affected cities, fire protection districts, ambulance
districts, school districts,community college districts and counties;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE
GIRARDEAU, MISSOURI, AS FOLLOWS:
Section 1. Finding of Public Benefit. The City Council hereby finds and determines that
the Project will promote the economic well-being and development of the City and the taxing districts
encompassing the area of the Project, and that the issuance of the Bonds to pay the costs of the Project
will be in furtherance of the public purposes set forth in the Act.
Section 2. Declaration of Intent. The City Council hereby declares the intent of the City to
issue the Bonds to provide funds to finance the costs of the Project, subject to the conditions set forth in
this Resolution.
Section 3. Limited Obligations. The Bonds shall be limited special revenue obligations
payable solely out of payments, revenues and receipts derived from the lease of the Project by the City to
the Company. The Bonds and the interest thereon shall not be a debt of the City or the State of Missouri,
and neither the City nor the State shall be liable thereon, and the Bonds shall not constitute an
indebtedness within the meaning of any constitutional, statutory or charter debt limitation or restriction.
Section 4. Conditions to Issuance of Bonds. This Resolution constitutes a statement of
intent of the City Council to provide 15 years of tax abatement for each phase of the Project. The
issuance of the Bonds and the execution and delivery of any documents related to financing the Project
are subject, in the sole discretion of the City, to the following conditions:
(a) approval by the City Council of the Plan, in substantially the form of Exhibit A
hereto;
(b) authorization by ordinance of the City Council;
(c) obtaining any other necessary governmental approvals for the Project;
(d) agreement by the City and the Company on(1)mutually acceptable terms for the
Bonds and for the sale and delivery thereof and (2)mutually acceptable terms and conditions of
any documents related to the issuance of the Bonds and the Project; and
(e) receipt by the City of satisfactory indemnification for all matters relating to the
Project.
Section 5. Reimbursement for Project Costs. The Company is hereby authorized to
proceed with the purchase and construction of the Project, including the entering of contracts and
purchase orders in connection therewith, and to advance such funds as may be necessary to accomplish
those purposes. If the Bonds are issued, the Company may be reimbursed solely out of the proceeds
thereof for expenditures paid or incurred in connection with the Project.
Section 6. Sales Tax Relief. The City will provide a sales tax certificate (the "Certificate")
for the purpose of enabling the Company to obtain sales tax exemption on all construction materials for
the Project Improvements, upon the Company's agreement to fully indemnify and protect the City from
any judgments or actions arising from the use of the Certificate if the City does not issue the Bonds for
any reason.
Section 7. Notice to Taxing Districts. The City Clerk, on behalf of the City Council, shall
send such notices as are required by the Act in connection with the issuance of the Bonds.
Section 8. Preparation of Documents. The City Attorney and Gilmore & Bell, P.C., as
Bond Counsel, and the officers, employees and representatives of the City, are hereby authorized to work
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with the Company, its counsel and others to prepare for submission to and final action by the City Council
all documents necessary to effect the authorization, issuance and sale of the Bonds and other actions
contemplated hereunder in connection with the financing of the Project.
Section 9. Further Authority. The City hereby authorizes and empowers the officers and
representatives of the City to do all such acts and things and to execute, acknowledge and deliver all such
documents as may in their discretion be deemed necessary or desirable to carry out or comply with the
terms and provisions of this Resolution in connection with the structure and sale of the Bonds. All of the
acts and undertakings of such officers and representatives that are in conformity with the intent and
purposes of this Resolution, whether heretofore or hereafter taken or done, shall be and the same are
hereby in all respects, ratified, confirmed and approved.
Section 10. Cancellation. If for any reason the Bonds are not issued within six months after
the date of adoption of this Resolution, this Resolution shall be deemed canceled, and neither party will
thereafter have any rights under this Resolution against the other, except that the Company shall reimburse
the City for all fees and out-of-pocket expenses incurred by the City and Bond Counsel in connection with
the Project.
Section 11. Effective Date. This Resolution shall be in full force and effect from and after
its passage by the City Council.
PASSED AND APPROVED by the City Council this 19th day of January, 2021.
(SEAL)
Bob Fox, Mayor
ATTEST: ,&
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I
CITY OF CAPE GIRARDEAU, MISSOURI
PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
AND
COST/BENEFIT ANALYSIS
FOR
CHIEF PROPERTY DEVELOPMENT, LLC
TABLE OF CONTENTS
Page
I. PURPOSE OF THIS PLAN 1
II. DESCRIPTION OF CHAPTER 100 FINANCINGS 1
General 1
Issuance and Sale of Bonds 1
Property Tax Abatement 2
Sales Tax Exemption 2
III. DESCRIPTION OF THE PARTIES 2
Chief Property Development,LLC 2
City of Cape Girardeau,Missouri 2
IV. REQUIREMENTS OF THE ACT 2
Description of the Project 2
Estimate of the Costs of the Project 3
Sources of Funds to be Expended for the Project 3
Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed
of by the City 3
Affected School District,Community College District,Emergency Service
Providers, County and City 3
Current Assessed Valuation 3
Payments in Lieu of Taxes 3
Sales Tax Exemption 4
Cost/Benefit Analysis and Discussion of Exhibits 4
V. ASSUMPTIONS AND BASIS OF PLAN 5
ATTACHMENT A-SUMMARY OF KEY ASSUMPTIONS
EXHIBIT 1-SUMMARY OF PROPERTY TAX ABATEMENT
EXHIBIT 2-PROJECTED REAL PROPERTY TAX REVENUES IF PROJECT IS NOT BUILT
EXHIBIT 3-PROJECTED REAL PROPERTY TAX REVENUES IF PROJECT IS BUILT BUT
WITHOUT ABATEMENT
* * *
CITY OF CAPE GIRARDEAU,MISSOURI
PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
AND
COSTBENEFIT ANALYSIS
CHIEF PROPERTY DEVELOPMENT,LLC
I. PURPOSE OF THIS PLAN
The City of Cape Girardeau, Missouri (the "City"), intends to issue taxable industrial revenue
bonds in a principal amount not to exceed $10,000,000 (the "Bonds") to finance the costs of an industrial
development project (the "Project") for the benefit of Chief Property Development, LLC (the
"Company"). The Bonds will be issued pursuant to the provisions of the City Charter, Sections 100.010
to 100.200 of the Revised Statutes of Missouri ("Chapter 100") and Article VI, Section 27(b) of the
Missouri Constitution(collectively with Chapter 100, the "Act"). The Bonds will initially be owned by the
Company, and cannot be transferred, other than to the Company's affiliates and lenders, without the City's
prior approval.
Gilmore & Bell, P.C. has prepared this Plan for an Industrial Development Project and
Cost/Benefit Analysis (this "Plan") to satisfy requirements of the Act and to analyze the potential costs
and benefits, including the related tax impact on all affected taxing jurisdictions, of using industrial
revenue bonds to finance the Project and to facilitate abatement of ad valorem taxes on the bond-financed
property.
II. DESCRIPTION OF CHAPTER 100 FINANCINGS
General. Chapter 100 authorizes cities, counties, towns and villages to issue industrial
development revenue bonds to finance the purchase, construction, extension and improvement of
warehouses, distribution facilities, research and development facilities, office industries, agricultural
processing industries, service facilities that provide interstate commerce, industrial plants, including the
real estate either within or without the limits of such municipalities, buildings, fixtures and machinery. In
addition, Article VI, Section 27(b) of the Missouri Constitution authorizes cities, counties, towns and
villages to issue revenue bonds for the purpose of paying all or part of the cost of purchasing,
constructing, extending or improving any facility for manufacturing, commercial, warehousing and
industrial development purposes, including the real estate,buildings, fixtures and machinery.
Issuance and Sale of Bonds. Revenue bonds issued pursuant to the Act do not require voter
approval and are payable solely from revenues received from a lease or other disposition of the project.
The municipality issues its bonds and in exchange, the benefited company promises to make payments
that are sufficient to pay the principal of and interest on the bonds as they become due. Thus, the
municipality merely acts as a conduit for the financing.
Concurrently with the closing of the bonds, the company will lease the site on which the
industrial development project will be located to the municipality. The municipality will immediately
lease the project site and the improvements thereon back to the benefited company pursuant to a lease
agreement. The lease agreement will require the company, acting on behalf of the municipality, to use the
bond proceeds to purchase and construct the project. Once construction is complete, the company will
convey title to the project to the municipality. (The municipality must be the legal owner of the property
while the bonds are outstanding for the property to be eligible for tax abatement, as further described
below.)
Under the lease agreement, the company typically: (1) unconditionally agrees to make payments
sufficient to pay the principal of and interest on the bonds as they become due; (2) agrees, at its own
expense, to maintain the project, to pay all taxes and assessments with respect to the project and to
maintain adequate insurance; (3) may, at its own expense, make certain additions, modifications or
improvements to the project; (4) may assign its interests under the lease agreement or sublease the project
while remaining responsible for payments under the lease agreement; (5) covenants to maintain its
corporate existence during the term of the bond issue; and (6) agrees to indemnify the municipality for
any liability the municipality might incur as a result of its participation in the transaction.
Property Tax Abatement. Under Article X, Section 6 of the Missouri Constitution and Section
137.100 of the Revised Statutes of Missouri, all property of any political subdivision is exempt from
taxation. In a typical Chapter 100 transaction, the municipality holds fee title to the project and leases the
project to the benefited company. Although the Missouri Supreme Court has held that the leasehold
interest is taxable, it is taxable only to the extent that the economic value of the lease is less than the
actual market value of the lease. See Iron County v. State Tax Commission, 437 S.W.2d 665 (Mo.
1968)(en banc) and St. Louis County v. State Tax Commission, 406 S.W.2d 644 (Mo. 1966)(en banc). If
the rental payments under the lease agreement equal the actual debt service payments on the bonds, the
leasehold interest should have no "bonus value" and the bond-financed property should be exempt from
ad valorem taxation while the bonds are outstanding.
If the municipality and the company determine that partial tax abatement is desirable, the
company may agree to make payments in lieu of taxes (sometimes referred to as "PILOTS"). The amount
of payments in lieu of taxes is negotiable. The payments in lieu of taxes are payable by December 31 of
each year and are distributed to the municipality and to each political subdivision within the boundaries of
the project in the same manner and in the same proportion as property taxes would otherwise be
distributed under Missouri law.
Sales Tax Exemption. In addition to property tax abatement, qualified building materials can be
exempt from sales tax if approved by the municipality. The sales tax exemption is evidenced by a project
exemption certificate issued by the municipality.
III. DESCRIPTION OF THE PARTIES
Chief Property Development, LLC. The Company is a limited liability company organized and
existing under the laws of the State of Missouri (the "State") for the purpose of, among other things,
purchasing, developing and maintaining real estate.
City of Cape Girardeau, Missouri. The City is a home rule charter city and political subdivision
of the State. The City is authorized and empowered pursuant to the provisions of the City Charter and the
Act to purchase, construct, extend and improve certain projects (as defined in the Act) and to issue
industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects
and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing,
commercial, warehousing and industrial development purposes upon such terms and conditions as the
City deems advisable.
IV. REQUIREMENTS OF THE ACT
Description of the Project. The Project consists of constructing three art buildings on an
approximately 1.1-acre parcel of land located at 340 S. Frederick Street in the City (together with the
existing structures thereon, the "Project Site"). The Project will be completed in two phases. The first
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phase ("Phase 1") consists of constructing two buildings, one approximately 10,000 square feet and the
other approximately 5,000 square feet. Phase 1 is expected to be complete in the summer of 2021. The
second phase ("Phase 2") consists of constructing an 18,000 square foot building. Phase 2 is expected to
be complete by the end of 2022.
B. Estimate of the Costs of the Project. The Company expects the construction of the
Project to cost approximately$9,000,000. The Bonds are being issued in the maximum principal amount
of$10,000,000 to provide for contingencies.
C. Sources of Funds to be Expended for the Project. The sources of funds to be expended
for the Project will be the proceeds of the Bonds in the maximum principal amount of$10,000,000 and
other available funds of the Company. The Bonds will be payable solely from the revenues derived by
the City from the lease or other disposition of the Project (as further described below). The Bonds will
not be an indebtedness or general obligation, debt or liability of the City or the State. No tax revenues
will be used to repay the Bonds.
D. Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed
of by the City. During the construction period, the Company will lease the Project Site to the City. After
construction of each phase is complete,the Company will convey fee title to that portion of the completed
Project to the City. The City will lease the Project Site and the Project back to the Company for lease
payments equal to the principal of and interest on the Bonds, plus certain payments in lieu of taxes.
Under the terms of the lease agreement with the City, the Company will have the option to purchase the
Project at the termination of the lease. The lease between the City and the Company will terminate on
December 31 of the fifteenth year after Phase 2 is complete, unless terminated sooner pursuant to the
terms of the lease.
E. Affected School District, Community College District, Emergency Service Providers,
County and City. The Cape Girardeau School District No. 63 is the school district affected by the
Project. There are no affected community college districts or emergency service providers affected by the
Project. Cape Girardeau County, Missouri, is the county affected by the Project. The City of Cape
Girardeau, Missouri, is the city affected by the Project. The Cost/Benefit Analysis attached hereto
identifies all other taxing districts affected by the Project (other than those taxing entities solely affected
by the Project with respect to receipt of tax revenues from the commercial surcharge tax).
F. Current Assessed Valuation. The most recent equalized assessed valuation of the real
property at the Project Site is $128,260. The Company estimates the total equalized assessed valuation of
the real property included in the Project after construction of the Project will be approximately
$2,592,000,which was calculated as follows:
Estimated Costs of the Project =$9,000,000
Estimated Appraised Value of the Project =$9,000,000 * 90%=$8,100,000
Estimated Assessed Value of the Project = $8,100,000 * 32%=$2,592,000
If the Company's actual investment is more or less than anticipated, the assessed valuation will likely be
greater or lower. The Cape Girardeau County Assessor will make the final determination of the assessed
value.
G. Payments in Lieu of Taxes. If this Plan is approved by the City, the City intends to issue
the Bonds, take possession of the Project and extend tax abatement on the Project to the Company.
During the tax abatement period, the Company will pay 100% of the ad valorem real property taxes due
on the Project Site.
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Pursuant to Section 100.050 of the Act, certain emergency service districts may elect to be
reimbursed up to 100% of the taxes they would have received, but for the tax abatement. No such
emergency service districts currently exist in the City. The Company will make PILOTs required to
satisfy the obligations to any applicable emergency service districts that may exist in the future, as
required by the Act.
H. Sales Tax Exemption. Qualified building materials purchased for the construction of the
Project are expected to be exempt from sales tax pursuant to the provisions of Section 144.062 of the
Revised Statutes of Missouri and the Bond documents upon delivery of a project exemption certificate by
the City to the Company. If this Plan is approved by the City, the City intends to deliver a project
exemption certificate.
I. Cost/Benefit Analysis and Discussion of Exhibits. In compliance with Section
100.050.2(3) of the Act, this Plan has been prepared to show the costs and benefits to the City and to
other taxing jurisdictions affected by the tax abatements and exemptions of the Project. The projections
in the Cost/Benefit Analysis are estimates based on numerous assumptions set forth in Attachment A
hereto. Therefore, the actual revenues generated from the Project may be significantly different from
those shown in the Cost/Benefit Analysis. The following is a summary of the exhibits attached to this
Plan that show the direct tax impact the Project is expected to have on each taxing jurisdiction and key
ancillary benefits expected to be derived from the Project. This Plan does not attempt to quantify the
overall economic impact of the Project.
Summary of Property Tax Abatement. Exhibit 1 provides a summary for each affected
taxing district of(1) the total estimated tax revenues that will be generated on the Project Site if
the Project is not built, (2) the total estimated tax revenues that will be generated on the Project
Site if the Project is built and the Project does not receive tax abatement and (3) the total
estimated value of the abatement to the Company.
Real Property Tax Revenues. Exhibit 2 provides the projected real property tax revenues
that will be generated from the Project Site if the Project is not built. Exhibit 3 provides the
projected real property tax revenues that will be generated from the Project Site if the Project is
built but the Project does not receive tax abatement.
Refer to Attachment A for the assumptions related to the determination of the assessed
values and the tax formulas.
Sales and Use Tax Exemption. The City will grant a sales and use tax exemption on the
qualified building materials necessary to construct the Project. For purposes of determining the
impact of the sales tax exemption on the qualified building materials on the affected taxing
jurisdictions granted by the City, it was assumed that:
• $3,600,000 of the total costs of the Project will be allocated to construction material costs;
• the applicable sales tax rate is 8.475%, of which 4.225% is allocated to the State,
1.500% is allocated to Cape Girardeau County and 2.750% is allocated to the City;
• the applicable use tax rate is 5.725%, of which 4.225% is allocated to the State and
1.500% is allocated to Cape Girardeau County;
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• 80% of the qualified construction materials will be subject to the State's sales tax and
20%will be subject to the State's use tax;
• 20% of the qualified construction materials will be subject to the County's sales and
use taxes; and
• 5% of the qualified construction materials will be subject to the City's sales tax.
Please note that any variance in these assumptions will alter the net fiscal impact of
the sales tax exemption on the affected taxing jurisdictions.
Based on the assumptions set forth above, the net fiscal impact of the sales and use tax
exemption on the qualified building materials granted by the City is approximately $178,650,
allocated as follows:
Sales Tax Use Tax Total
State $121,680 $30,420 $152,100
County 10,800 10,800 21,600
City 4,950 0 4,950
Total $137,430 $41,220 $178,650
Ancillary Project Benefits. The City believes that the Company's investment in the
Project will create construction jobs during the construction period and spur additional investment
in the City. Construction of the Project will enhance the aesthetics and vibrancy of the Project
Site and surrounding area. The Project will be subleased to Southeast Missouri State University,
expanding the presence of the River Campus and enabling the Department of Art & Design to
provide expanded opportunities for students. None of these ancillary impacts were measured for
purposes of this Plan.
V. ASSUMPTIONS AND BASIS OF PLAN
This Plan includes assumptions that impact the amount of the abatement and exemptions
proposed for the Project. See Attachment A for a summary of these assumptions.
In addition to the foregoing, in order to complete this Plan, Gilmore & Bell, P.C. has generally
reviewed and relied upon information furnished by, and has participated in conferences with,
representatives of the City and its counsel, representatives of the Company, and other persons as the firm
has deemed appropriate. Gilmore & Bell, P.C. does not assume any responsibility for the accuracy,
completeness or fairness of any of the information provided and has not independently verified the
accuracy,completeness or fairness of such information.
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ATTACHMENT A
SUMMARY OF KEY ASSUMPTIONS
1. The Company will invest$9,000,000 in the Project.
2. Construction of Phase 1 will be complete by the end of 2021, and construction of Phase 2
will be complete by the end of 2022.
3. Following the respective construction period of each phase, that portion of the completed
Project will be owned by the City and leased to the Company with an option to purchase. As long as the
Project is owned by the City, it will be exempt from ad valorem property taxes.
4. Phase 1 will be excluded from the calculation of ad valorem real property tax from 2022
through 2036. Phase 2 will be excluded from the calculation of ad valorem real property tax from 2023
through 2037.
5. During the tax abatement period, the Company will pay 100% of the ad valorem real
property taxes due on the Project Site.
6. The Company will not make any PILOTs while the Project is subject to ad valorem real
property tax exemption.
7. Real property taxes are calculated using the following formula:
(Assessed Value* Tax Rate)/100
8. The Company estimates the total equalized assessed valuation of real property included in
the Project after construction of the Project will be approximately $2,592,000, which was calculated as
follows:
Estimated Costs of the Project =$9,000,000
Estimated Appraised Value of the Project =$9,000,000 * 90%=$8,100,000
Estimated Assessed Value of the Project = $8,100,000 * 32%=$2,592,000
10. Each phase will be assessed in the first full year after construction is complete. Each phase
will be reassessed every odd-numbered year thereafter. An estimated growth rate of 2% on the Project has
been assumed for each reassessment.
11. The tax rates used in this Plan reflect the rates in effect for the tax year 2020. The tax rates
were held constant through the 2037 tax year.
* * *
The Cost/Benefit Analysis has been prepared on the basis of factual information and assumptions provided to Gilmore
&Bell,P.C. by, or on behalf of,the City and the Company. This information is provided in conjunction with our legal
representation of the City, as its bond counsel, for this transaction. It is not intended as financial advice or a financial
recommendation to the City,the Company or any other taxing jurisdiction that may be affected by the Project. Gilmore
&Bell,P.C.is not a financial advisor or a"municipal advisor"as defined in the Securities Exchange Act of 1934.
EXE ' 1
SUMMARY OF PROPERTY TAX ABATEMENT
Projected Real
Projected Real Property Tax
Property Tax Revenues if Project Projected Real Projected Tax
Commercial Revenues if Project is Built(Without Property PILOTS if Abatement if Project
Taxing Jurisdiction Tax Rate is Not Built Abatement) Project is Built is Built
State of Missouri 0.0300 S 667 S 12,911 S - S 12,506
County of Cape Girardeau-General Revenue 0.0750 1,665 32273 - 31,266
County of Cape Girardeau-Mental Health 0.0772 1,717 33,225 - 32,133
County of Cape.Girardeau-Public Health 0.0960 2,135 41,316 - 40,021
County of Cape Girardeau-Senior Services 0.0473 1,063 20,572 - 19,927
County of Cape Girardeau-Developmentally Disabled 0.0553 1,230 23,300 - 23,053
City of Cape Girardeau-General 03044 6,769 131;007 - 126,595
City of Cape Girardeau-Health 0.0570 1,263 24,532 - 23,762
Cape Girardeau School District 4.1567 92,433 1,783,950 - 1,732,345
Cape Girardeau Public Library 0.3152 7,009 135,655 - 131,401
Commercial Surtax 03690 5,206 153,809 - 153,329
5.5536 S 124,164 S 2,403,056 S - S 2,327,691
EXE 1'2
PROJECTED REAL PROPERTY TAX REVENUES IF PROJECT IS NOT BUILT
Estimated As s es s e d Value of Project Site 5 128,260 5 130,825 5 130,825 S 133,442 S 133,442 S 136,111 S 136,111 5 138,833
Tax Rate.
Taxing Jurisdiction per 5100 2022 2023 2024 2025 2026 2027 2028 2029
State of Miss ouri 0 0300 $ 38 5 39 5 39 5 40 5 40 5 41 S 41 5 42
County of Cape Girardeau-General Revenue 0.0750 96 98 98 100 100 102 102 104
County of Cap e Girardeau-Mental Health 0.0772 99 101 101 103 103 105 105 107
County of C.ap e Girardeau-Public Health 0.0960 123 126 126 128 128 131 131 133
County of Cape Girardeau-Senior Services 0 0478 61 63 63 64 64 65 65 66
County of Cap e Girardeau-Developmentally Disabled 0.0553 71 72 72 74 74 75 75 77
City of Cape Girardeau-General 03044 390 395 393 406 406 414 414 423
City of Cape Girardeau-Health 0.0570 73 75 75 76 76 78 73 79
Cape Girardeau School District 4.1567 5,331 5,438 5,438 5,547 5,547 5,658 5,655 5,771
Cape Girardeau Public Library 0.3152 404 412 412 421 421 429 429 438
Commercial Surtax 03690 473 483 483 492 492 502 502 512
5.5836 S 7,162 S 7,305 S 7,305 5 7,451 S 7,451 5 7,600 5 7,600 S 7,752
Estimated As s es sed Value of Project Site S 133,833 S 141,609 S 141,609 S 144,442 5 144,442 5 147,330 S 147,330 S 150,277
Tax Rate
Taxing Juris diction per 5100 2030 2031 2032 2033 2034 2035 2036 2037 Total
State of Missouri 0.0300 5 42 5 42 5 42 5 43 5 43 5 44 5 44 5 45 S 667
County of Cap e Girardeau-General Revenue 0.0750 104 106 106 108 108 111 111 113 1,668
County of Cape.Girardeau-Mental Health 01)772 107 109 109 112 112 114 114 116 1,717
County of Cap e Girardeau-Public Health 0 0960 133 136 136 139 139 141 141 144 2,135
County of Cape Girardeau-Senior Services 0.0478 66 68 68 69 69 70 70 72 1,063
County of Cape Girardeau-Developmentally Disabled 0.0553 77 78 78 80 80 81 51 83 1,230
City of Cap e Girardeau-General 03044 423 431 431 440 440 448 448 457 6,769
City of Cape Girardeau-Health 0.0570 79 81 81 32 82 84 84 86 1268
Cape Girardeau School District 4.1567 5,771 5,886 5,886 6,004 6.004 6,124 6,124 6,247 92,433
Cape Girardeau Public Library 0.3152 438 446 446 455 455 464 464 474 7,009
Commercial Surtax 0.3690 512 523 523 533 533 544 544 555 8,206
5.5836 S 7,752 5 7,907 5 7,907 S 8,065 S 8,065 S 8,226 S 8,226 S 8,391 S 124,164
EXI 1 '3
PROJECTED REAL PROPERTY TAX REVENUES IF PROJECT IS BUILT BUT WITHOUT ABATEMENT
Estimated Assessed Value of Phase 1 S 1,152,000 S 1,175,040 S 1,175,040 S 1,198,541 S 1,198,541 S 1,22.2,512 5 1,222,512 $ 1,246,962
Estimated Assessed Value of Phase 2 S - S 1,440,000 S 1,440,000 5 1,468,800 S 1,468,800 5 1,498,176 S 1,498,176 5 1,523,140
Estimated Assessed Value ofProject(Both Phases) $ 1,152,000 S 2,615,040 S 2,615,040 S 2,667,341 5 2,667,341 S 2,720,688 5 2,720,688 5 2,775,101
Tax Rate
Taxing Jurisdiction perS100 2022 2023 2024 2025 2026 2027 2028 2029
State of Missouri 0.0300 S 346 S 735 5 785 S 800 5 800 S 816 S 816 5 833
County of Cape Girardeau-General Revenue 0.0750 864 1,961 1,961 2,001 2,001 2,0-11 2,041 2,081
County of Cape Girardeau-Mental Health 0.0772 889 2,019 2,019 2,059 2,059 2,100 2,100 2,142
County of Cape Girardeau-Public Health 0.0960 1,106 2,510 2,510 2,561 2,561 2,612 2,612 2,664
County of Cape Girardeau-Senior Services 0.0478 551 1,250 1,250 1,275 1,275 1,300 1,300 1,327
County of Cape Girardeau-Developmentally Disabled 0.0553 637 1,446 1,446 1,475 1,475 1,505 1,505 1,535
City of Cape Girardeau-General 0.3044 3,507 7,960 7,960 8,119 8,119 8,282 8.282 8,447
City of Cape Girardeau-Health 0.0570 657 1,491 1,491 1,520 1,520 1,551 1,551 1,582
Cape Girardeau School District 4.1567 47,885 108,699 108,699 110,873 110,873 113,091 113,091 115,353
Cape Girardeau Public Library 0.3152 3,631 8,243 8,243 8,407 8,407 8,576 8,576 8,747
Commercial Surtax 0.3690 4,251 9,650 9,650 9,842 9,842 10,039 10,039 10,240
5.5836 S 64,323 $ 146,013 $ 146,013 S 148,934 S 148,934 $ 151,912 S 151.912 S 154,951
Estimated Assessed Value of Phase 1 $ 1,246,962 S 1,271,901 S 1,271,901 S 1,297,339 $ 1,297,339 5 1,323,286 S 1,323,256 $ 1,349,752
Estimated Assessed Value of Phase 2 5 1,528,140 5 1,558,702 S 1,558,702 S 1,589,876 S 1,589,876 S 1,621,674 S 1,621,674 S 1,654,107
Estimated Assessed Value of Project(Both Phases) $ 2,775,101 S 2,830,603 5 2,830,603 5 2,587,215 S 2,887,215 S 2,944,960 5 2,944,960 S 3,003,859
Tax Rate
Taxing Jurisdiction per$100 2030 2031 2032 2033 2034 2035 2036 2037 Total
State of Missouri 0.0300 S 833 S 349 S 849 $ 866 $ 866 $ 883 S S83 S 901 S 12,911
County of Cape Girardeau-General Revenue 0.0750 2,081 2,123 2,123 2,165 2,165 2,?09 2,209 2,253 32,278
County of Cape Girardeau-Mental Health 0.0772 2,142 2,185 2,185 2,229 1,229 2,274 2,274 2,319 33,225
County of Cape Girardeau-Public Health 0.0960 2,664 2,717 2,717 2,772 2,772 2,827 2,827 2,884 41,316
County of Cape Girardeau-Senior Services 0.0478 1,327 1,353 1,353 1,380 1,380 1,408 1,408 1,436 20,572
County of Cape Girardeau-Developmentally Disabled 0.0553 1,535 1,565 1,565 1,597 1,597 1,629 1,629 1,661 23,800
City of Cape Girardeau-General 0.3044 8,447 8,616 8,616 8,789 8,789 8,964 3,964 9,144 131,007
City of Cape Girardeau-Health 0.0570 1,582 1,613 1,613 1,646 1,646 1,679 1,679 1,712 24,532
Cape Girardeau School District 4.1567 115,353 117,660 117,660 120,013 120,013 122,413 122,413 124,861 1,788,950
Cape Girardeau Public Library 0.3152 5,747 8,922 8,922 9,101 9,101 9,283 9,283 9,468 135,655
Commercial Surtax 0.3690 10,240 10,445 10,445 10,654 10.654 10,867 10,867 11,084 158,809
5.5836 S 154,951 S 158,050 5 158,050 $ 161,211 S 161,211 5 164,435 $ 164,435 S 167,723 $ 2,403,056
City of Cape Girardeau
(River Campus Arts Expansion Project)
COST BENEFIT ANALYSIS
PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT
10'
Gil.MoRE BELL
Table of Contents
Project Assumptions 1
Summary of Property Tax Abatement 2
Projected Real Property Tax Revenues if Project is Not Built 3
Projected Real Property Tax Revenues if Project is Built(Without Abatement) 4
Projected Real Property PILOTs if Project is Built 5
Projected Tax Abatement if Project is Built 6
Sales Tax Exemption 7
This information is provided based on the factual information and assumptions provided to Gilmore&Bell,P.C.by a party to or a representative of a party to the
proposed transaction.This information is intended to provide factual information only and is provided in conjunction with our legal representation.It is not
intended as financial advice or a financial recommendation to any party.Gilmore&Bell,P.C.is not a financial advisor or a"municipal advisor"as defined in the
Securities Exchange Act of 1934,as amended.
Project Assumptions
• Appraised value of Project Site and existing structures $ 400,800
• Assessed value as a percentage of appraised value(commercial) 32.0%
• Assessed value of Project Site and existing structures $ 128,260
• Estimated costs of Phase 1 $ 4,000,000
• Estimated costs of Phase 2 $ 5,000,000
• Appraised value of Phase 1 after completion(90%of estimated costs) $ 3,600,000
• Appraised value of Phase 2 after completion(90%of estimated costs) $ 4,500,000
• Assessed value of Phase 1 after completion(commercial) $ 1,152,000
• Assessed value of Phase 2 after completion(commercial) $ 1,440,000
• Initial year Phase 1 taxes assessed 2022
• Initial year Phase 2 taxes assessed 2023
• Bi-annual growth rate of appraised values 2.0%
• Each Phase's taxes are abated at 100%for 15 years
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Summary of Property Tax Abatement
Projected Real
Projected Real Property Tax
Property Tax Revenues if Project Projected Real Projected Tax
Commercial Revenues if Project is Built(Without Property PILOTs if Abatement if Project
Taxing Jurisdiction Tax Rate is Not Built Abatement) Project is Built is Built
State of Missouri 0.0300 $ 667 $ 12,911 $ - $ 12,506
County of Cape Girardeau-General Revenue 0.0750 1,668 32,278 - 31,266
County of Cape Girardeau-Mental Health 0.0772 1,717 33,225 - 32,183
County of Cape Girardeau-Public Health 0.0960 2,135 41,316 - 40,021
County of Cape Girardeau- Senior Services 0.0478 1,063 20,572 - 19,927
County of Cape Girardeau-Developmentally Disabled 0.0553 1,230 23,800 - 23,053
City of Cape Girardeau-General 0.3044 6,769 131,007 - 126,898
City of Cape Girardeau-Health 0.0570 1,268 24,532 - 23,762
Cape Girardeau School District 4.1567 92,433 1,788,950 - 1,732,845
Cape Girardeau Public Library 0.3152 7,009 135,655 - 131,401
Commercial Surtax 0.3690 8,206 158,809 - 153,829
5.5836 $ 124,164 $ 2,403,056 $ - $ 2,327,691
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Proje__ Real Property Tax Revenues if Project is Not Built
Estimated Assessed Value of Project Site $ 128,260 $ 130,825 $ 130,825 $ 133,442 $ 133,442 $ 136,111 $
Tax Rate
Taxing Jurisdiction per$100 2022 2023 2024 2025 2026 2027
State of Missouri 0.0300 $ 38 $ 39 $ 39 $ 40 $ 40 $ 41 $
County of Cape Girardeau-General Revenue 0.0750 96 98 98 100 100 102
County of Cape Girardeau-Mental Health 0.0772 99 101 101 103 103 105
County of Cape Girardeau-Public Health 0.0960 123 126 126 128 128 131
County of Cape Girardeau- Senior Services 0.0478 61 63 63 64 64 65
County of Cape Girardeau -Developmentally Disabled 0.0553 71 72 72 74 74 75
City of Cape Girardeau-General 0.3044 390 398 398 406 406 414
City of Cape Girardeau-Health 0.0570 73 75 75 76 76 78
Cape Girardeau School District 4.1567 5,331 5,438 5,438 5,547 5,547 5,658
Cape Girardeau Public Library 0.3152 404 412 412 421 421 429
Commercial Surtax 0.3690 473 483 483 492 492 502
5.5836 $ 7,162 $ 7,305 $ 7,305 $ 7,451 $ 7,451 $ 7,600 $
Estimated Assessed Value of Project Site $ 138,833 $ 141,609 $ 141,609 $ 144,442 $ 144,442 $ 147,330 $
Tax Rate
Taxing Jurisdiction per$100 2030 2031 2032 2033 2034 2035
State of Missouri 0.0300 $ 42 $ 42 $ 42 $ 43 $ 43 $ 44 $
County of Cape Girardeau-General Revenue 0.0750 104 106 106 108 108 111
County of Cape Girardeau-Mental Health 0.0772 107 109 109 112 112 114
County of Cape Girardeau-Public Health 0.0960 133 136 136 139 139 141
County of Cape Girardeau- Senior Services 0.0478 66 68 68 69 69 70
County of Cape Girardeau-Developmentally Disabled 0.0553 77 78 78 80 80 81
City of Cape Girardeau-General 0.3044 423 431 431 440 440 448
City of Cape Girardeau-Health 0.0570 79 81 81 82 82 84
Cape Girardeau School District 4.1567 5,771 5,886 5,886 6,004 6,004 6,124
Cape Girardeau Public Library 0.3152 438 446 446 455 455 464
Commercial Surtax 0.3690 512 523 523 533 533 544
5.5836 $ 7,752 $ 7,907 $ 7,907 $ 8,065 $ 8,065 $ 8,226 $
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Projected Re.....aperty Tax Revenues if Project is Built(Without Abatement)
Estimated Assessed Value of Phase 1 $ 1,152,000 $ 1,175,040 $ 1,175,040 $ 1,198,541 $ 1,198,541 $ 1,222,512 $ 1
Estimated Assessed Value of Phase 2 $ - $ 1,440,000 $ 1,440,000 $ 1,468,800 $ 1,468,800 $ 1,498,176 $ 1.
Estimated Assessed Value of Project(Both Phases) $ 1,152,000 $ 2,615,040 $ 2,615,040 $ 2,667,341 $ 2,667,341 $ 2,720,688 $ 2.
Tax Rate
Taxing Jurisdiction per$100 2022 2023 2024 2025 2026 2027 2
State of Missouri 0.0300 $ 346 $ 785 $ 785 $ 800 $ 800 $ 816 $
County of Cape Girardeau-General Revenue 0.0750 864 1,961 1,961 2,001 2,001 2,041
County of Cape Girardeau-Mental Health 0.0772 889 2,019 2,019 2,059 2,059 2,100
County of Cape Girardeau-Public Health 0.0960 1,106 2,510 2,510 2,561 2,561 2,612
County of Cape Girardeau-Senior Services 0.0478 551 1,250 1,250 1,275 1,275 1,300
County of Cape Girardeau-Developmentally Disabled 0.0553 637 1,446 1,446 1,475 1,475 1,505
City of Cape Girardeau-General 0.3044 3,507 7,960 7,960 8,119 8,119 8,282
City of Cape Girardeau-Health 0.0570 657 1,491 1,491 1,520 1,520 1,551
Cape Girardeau School District 4.1567 47,885 108,699 108,699 110,873 110,873 113,091
Cape Girardeau Public Library 0.3152 3,631 8,243 8,243 8,407 8,407 8,576
Commercial Surtax 0.3690 4,251 9,650 9,650 9,842 9,842 10,039
5.5836 $ 64,323 $ 146,013 $ 146,013 $ 148,934 $ 148,934 $ 151,912 $
Estimated Assessed Value of Phase 1 $ 1,246,962 $ 1,271,901 $ 1,271,901 $ 1,297,339 $ 1,297,339 $ 1,323,286 $ 1
Estimated Assessed Value of Phase 2 $ 1,528,140 $ 1,558,702 $ 1,558,702 $ 1,589,876 $ 1,589,876 $ 1,621,674 $ 1
Estimated Assessed Value of Project(Both Phases) $ 2,775,101 $ 2,830,603 $ 2,830,603 $ 2,887,215 $ 2,887,215 $ 2,944,960 $ 2.
Tax Rate
Taxing Jurisdiction per$100 2030 2031 2032 2033 2034 2035 2
State of Missouri 0.0300 $ 833 $ 849 $ 849 $ 866 $ 866 $ 883 $
County of Cape Girardeau-General Revenue 0.0750 2,081 2,123 2,123 2,165 2,165 2,209
County of Cape Girardeau-Mental Health 0.0772 2,142 2,185 2,185 2,229 2,229 2,274
County of Cape Girardeau-Public Health 0.0960 2,664 2,717 2,717 2,772 2,772 2,827
County of Cape Girardeau-Senior Services 0.0478 1,327 1,353 1,353 1,380 1,380 1,408
County of Cape Girardeau-Developmentally Disabled 0.0553 1,535 1,565 1,565 1,597 1,597 1,629
City of Cape Girardeau-General 0.3044 8,447 8,616 8,616 8,789 8,789 8,964
City of Cape Girardeau-Health 0.0570 1,582 1,613 1,613 1,646 1,646 1,679
Cape Girardeau School District 4.1567 115,353 117,660 117,660 120,013 120,013 122,413
Cape Girardeau Public Library 0.3152 8,747 8,922 8,922 9,101 9,101 9,283
Commercial Surtax 0.3690 10,240 10,445 10,445 10,654 10,654 10,867
5.5836 $ 154,951 $ 158,050 $ 158,050 $ 161,211 $ 161,211 $ 164,435 $
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Projected Real Property PILOTs if Project is Built
Estimated Assessed Value of Project(Total) $ 1,152,000 $ 2,615,040 $ 2,615,040 S 2,667,341 $ 2,667,341 $ 2,720,688 $ 2,720,688 $ 2,775,101 S 2,775,101 $ 2,830,603 $ 2,830,603 $ 2,887,215 $ 2.
Tax Rate per
Taxing Jurisdiction $100 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2
State of Missouri 0.0300 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
County of Cape Girardeau-General Revenue 0.0750 - - - - - - - - - - - -
County of Cape Girardeau-Mental Health 0.0772 - - - - - - - - -
- - -
County of Cape Girardeau-Public Health 0.0960 - - - - - - - - - - - -
County of Cape Girardeau-Senior Services 0.0478 - - - - - - - - - - -
-
County of Cape Girardeau-Developmentally Disabled 0.0553 - - - - - - - - - - _ -
City of Cape Girardeau-General 0.3044 - - - - - - - - -
- - -
City of Cape Girardeau-Health 0.0570 - - - - - - - - _
- - -
Cape Girardeau School District 4.1567 - - - - - - - - - _ - -
Cape Girardeau Public Library 0.3152 - - - - - - - - - - - -
Commercial Surtax 0.369D - - - - - - - - - - - -
5.5836 $ - $ - $ - S - $ - $ - $ - S - S - $ - $ - $ - $
-S-
Projected Tax Abatement if Project is Built
Taxing Jurisdiction Tax Rate per$100 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 203,
State of Missouri 0.0300 $ 346 $ 785 $ 785 $ 800 $ 800 $ 816 $ 816 $ 833 $ 833 $ 849 $ 849 S 866 $
County of Cape Girardeau-General Revenue 0.0750 864 1,961 1,961 2,001 2,001 2,041 2,041 2,081 2,081 2,123 2,123 2,165 2
County of Cape Girardeau-Mental Health 0.0772 889 2,019 2,019 2,059 2,059 2,100 2,100 2,142 2,142 2,185 2,185 2,229 2
County of Cape Girardeau-Public Health 0.0960 1,106 2,510 2,510 2,561 2,561 2,612 2,612 2,664 2,664 2,717 2,717 2,772 2
County of Cape Girardeau-Senior Services 0.0478 551 1,250 1,250 1,275 1,275 1,300 1,300 1,327 1,327 1,353 1,353 1,380 1
County of Cape Girardeau-Developmentally Disabled 0.0553 637 1,446 1,446 1,475 1,475 1,505 1,505 1,535 1,535 1,565 1,565 1,597 1
City of Cape Girardeau-General 0.3044 3,507 7,960 7,960 8,119 8,119 8,282 8,282 8,447 8,447 8,616 8,616 8,789 8
City of Cape Girardeau-Health 0.0570 657 1,491 1,491 1,520 1,520 1,551 1,551 1,582 1,582 1,613 1,613 1,646 1
Cape Girardeau School District 4.1567 47,885 108,699 108,699 110,873 110,873 113,091 113,091 115,353 115,353 117,660 117,660 120,013 120
Cape Girardeau Public Library 0.3152 3,631 8,243 8,243 8,407 8,407 8,576 8,576 8,747 8,747 8,922 8,922 9,101 $
Commercial Surtax 0.3690 4,251 9,650 9,650 9,842 9,842 10,039 10,039 10,240 10,240 10,445 10,445 10,654 10
5.5836 $ 64,323 $ 146,013 $ 146,013 $ 148,934 $ 148,934 $ 151,912 $ 151,912 $ 154,951 $ 154,951 $ 158,050 $ 158,050 $ 161,211 $ 161
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Sales Tax Exemption
Sales Tax
MO 4.225%
County 1.500%
City 2.750%
Use Tax
MO 4.225%
County 1.500%
City
Sales Tax Use Tax Total
State $ 121,680.00 $ 30,420.00 $ 152,100.00
County $ 10,800.00 $ 10,800.00 $ 21,600.00
City $ 4,950.00 $ - $ 4,950.00
TOTAL $ 137,430.00 $ 41,220.00 $ 178,650.00
Cost of Construction Materials $3,600,000
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