HomeMy WebLinkAboutResolution-2004-0034
CITY OF WHEAT RIDGE, COLORADO
RESOLUTION NO. 34
Series of 2004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WHEAT
RIDGE PROVIDING TAX INCENTIVES TO THE COORS BREWING
COMPANY FOR THE REBUILD AND MODERNIZATION OF THE
ROCKY MOUNTAIN BOTTLING COMPANY FACILITY IN THE CITY
OF WHEAT RIDGE
WHEREAS, the Coors Brewing Company owns and operates a bottle manufacturing
facility III the City of Wheat Ridge; and
WHEREAS, said bottle manufacturing facility is located III a Wheat Ridge Enterprise
Zone; and
WHEREAS, the bottle manufacturing facility employs 256 people and pays significant
sales, use, and property taxes to the City of Wheat Ridge; and
WHEREAS, the Coors Brewmg Company has proposed a major rebuild and
modernization of the bottle manufacturing facility furnaces which will aid in ensuring their
contlllued success; and
WHEREAS, as a business located in an enterprise zone, CRS Section 31-15-903(2) and
Section 39-30-107.5(1) permit the City of Wheat Ridge to negotiate and provide sales and use
tax incentives to businesses located within the City and an enterprise zone; and
WHEREAS, the extension of incentives to the Coors Brewing Company for the bottlmg
facility will assist in the economic feasibility of a business which IS highly deSirable for the City
of Wheat Ridge and consistent with the Wheat Ridge economic development objectives; and
WHEREAS, to sustam the level of services and quality of life, the City of Wheat Ridge
recognIzes that economic reVitalization IS critical to thIS thnvlllg commumty
NOW, THEREFORE, BE IT RESOLVED by the Wheat Ridge City Council, that the
Mayor and City Clerk are hereby authorized to enter into a Tax Incentive Agreement (Exhibit 1
of this resolution) with the Coors Brewing Company for the provision ofthe followmg incentives
to facilitate the proposed rebuild and modernization of the Rocky Mountain Bottling Company
facility furnaces WIthin the City of Wheat RIdge:
a. A 25% reductIOn III all sales and use taxes attributable to the rebuild and modernization
of the Rocky Mountam Bottling Company for a period of three years commencing
January 1,2005 and ending December 31,2007 as outlined m the attached Tax Incentive
Agreement.
DONE AND RESOLVED this 13th day of December, 2004,
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ATTEST:
Exhibits:
L Tax Incentive Agreement
TAX INCENTIVE AGREEMENT
THIS AGREEMENT, dated this 13th day of December, 2004 IS entered IlltO
between the City of Wheat Ridge, Colorado, a Colorado home rule city and mumclpal
corporatIOn (the "City") and Coors Brewlllg Company, a Colorado corporation ("Coors"), and IS
made pursuant to Sections 31-15-903 and 39-30-107.5 of the Colorado ReVIsed Statutes,
RECIT ALS
A. Coors owns and operates a bottle manufactunng plant (the "Plant") located withm
the City and withlll the Jefferson County Enterpnse Zone,
B. Coors employs approxImately 256 indiVIduals at the Plant and currently operates
the Plant at full capacity
C. To mamtam the competitive advantage of the Plant and its existmg employment
base, Coors Wishes to rebuild and modernize two furnaces. Based on current estimates, the
rebuild and modernIzation project will cost approximately $37.4 milhon and will occur m two
phases, One furnace will be modernized m 2005 and the second by 2007,
D. Sections 31-15-903 and 39-30-107,5 of the Colorado Revised Statutes permit the
City to negotiate and provide sales, use, and property tax Illcenhves to businesses that expand
facilities located withm the City and within an enterprise zone.
E, The CIty and Coors Wish to enter into an agreement through which the CIty will
prOVIde sales/use tax incentives to encourage the modernlzatlOn of the furnaces.
F The execution, dehvery, and performance of thiS Agreement are speCifically
authonzed by Wheat Ridge City Council ResolutIOn No. 2004-34, dated December 13,2004,
TERMS AND CONDITIONS
NOW THEREFORE in consideratIOn of the mutual promises contained m this
Agreement, the parties agree as follows.
ARTICLE ONE - DEFINITIONS
Section 1.01 As used through thiS Agreement, the term "Plant" means the bottle
manufacturing plant located at 10619 West 50th Avenue, Wheat Ridge, Colorado 80033,
extendlllg to approXImately 27 acres, and containing approXImately 385,000 square feet of
Illdustrial buildlllgs.
Section 1.02 As used throughout thiS Agreement, the term "Facility" means the Plant,
including the land on which the Plant is located, and all machmery, equipment, and other real
and tangible personal property located at or wlthlll the Plant and used by Taxpayer m connectlOn
WIth the operation of the Plant.
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SectIOn 1,03 As used throughout this Agreement, the term "Quahfied EqUipment and
Machinery" means equipment, machmery, and materials related to rebuild of the two (2)
furnaces used III Taxpayer's business conducted at the Facility,
Section I 04 As used throughout thiS Agreement, the term "Return" means any
sales/use tax return filed by Taxpayer m accordance with SectIOns 22-56 and 22-66 of the Wheat
Ridge City Code.
Section 1 05 As used throughout thiS Agreement, the term "Sales/Use Tax Incentive
Period" means the period beginning January 1,2005, and ending December 31, 2007,
(a) As used throughout thiS Agreement, the term "Taxpayer" shall be to
Coors,
ARTICLE TWO - SALES/USE TAX REFUND OR CREDIT
Section 2.01 (a) Taxpayer shall file monthly Returns With respect to its operations
at the Faclhty and subJect to the terms of this Agreement, shall pay all sales/use taxes m
accordance With SectIOns 22,56 and 22-66 of the Wheat Ridge City Code,
(b) With respect to each monthly Return covering any portIOn of the
Sales/Use Tax Incentive Penod, Taxpayer shall be entitled to withhold an amount equal to 25%
of the sales/use tax leVied by the City and shown on the Return as attributable to the rebuild of
Quahfied EqUipment and Machmery, If Taxpayer purchases material to rebuild the Quahfied
Equipment and Machinery dunng the Sales/Use Tax Incentive Penod and, at the time of such
purchase, Taxpayer pays the full amount of sales/use tax leVied by the City upon such purchase
(the "sales/use tax amount"), then Taxpayer shall be entitled to offset 25% of the sales/use tax
amount agalllst any balance due on ItS Return for the month in which Taxpayer purchased
materials to rebuild the Qualified EqUipment and Machlllery and shall treat the amount of the
offset as an amount withheld pursuant to the first sentence of thiS paragraph, To the extent that
the amount of any offset exceeds the balance due With respect to the Return for the month m
which the matenals were purchased to rebuild the Qualified EqUipment and Machmery, the
excess may be carried forward from month-to-month and apphed against any balance due on
subsequent Returns untll the offset is fully utilized.
(c) For purposes of ItS internal accounting, Taxpayer shall account
separately for all amounts Withheld pursuant to this Section 2.01.
ARTICLE THREE - REPRESENT A TIONS BY THE CITY
Section 301 The City represents and warrants that It has mformed Jefferson County
and Jefferson County School District Number R-l of the negotiation of this Agreement.
Section 3,02 The City represents and warrants that It has full power and authority to
enter into and perform all obhgatlOns under this Agreement, including the authority granted by
SectIOns 31-15-903 and 39-30-107.5 of the Colorado Revised Statutes.
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ARTICLE FOUR ~ COMPLIANCE WITH AMENDMENT ONE
It IS the mtent of the parties to comply with the reqUirements of Article X, SectIOn 20 of
the Colorado ConstltutlOn. The parties reasonably believe that the provIsions of this Agreement
are m comphance With the Colorado Constitution, and that thiS Agreement IS not subject to
annual qualification or reauthonzatlon of any kind. To the extent that annual appropnation of the
obligations of the City created by this Agreement IS required by Article X, SectIOn 20 of the
Colorado ConstitutIOn or to the extent that this Agreement IS determined to be unenforceable for
all or any portion of ItS term, the parties covenant and agree to take all actions reasonably
necessary to fulfill the purpose of this Agreement, including the negotiation of Similar
agreements, The parties do not intend this agreement to be a multi-year obhgatlOn of the city
Any financial obhgatlOn of the city hereunder is subject to annual appropriation.
ARTICLE FIVE ASSIGNMENT
Upon the commencement of the Partnership, Coors shall assign all of ItS rights and
obligations under thiS Agreement to the Partnership (Rocky Mountalll Bottle Company) and the
Partnership shall be substituted III Coors' place for all purposes under this Agreement and shall
succeed to all of Coors' rights and obhgatlOns under this Agreement. The City agrees that the
assignment and substitution of the Partnership III place of Coors shall relate back to the original
effective date of this Agreement, as if the Partnership had been the ongmal signatory to this
Agreement With the City. Coors and the Partnership shall promptly notify the City following the
assignment contemplated by thiS Article Five,
ARTICLE SIX - MISCELLANEOUS
SectIOn 6 01 ThiS Agreement constitutes the entire agreement between the parties and
supersedes all pnor agreements and understandmgs, both oral and wntten, between the parties
With respect to the subject matter of this Agreement. This Agreement may not be amended,
waived, or terminated other than by wntten agreement, Signed by each party
Section 6,02 Except as otherwise provided in Article Five, thiS Agreement IS not
assignable by either party,
SectIOn 6,03 ThiS Agreement is subject to and shall be interpreted in accordance With
the laws of the State of Colorado and the City, mcludlllg all apphcable rules and regulations of
the Colorado Department of Revenue and the City. ExclUSive venue and JunsdlctlOn over any
dispute arismg under thiS Agreement shall be m the Dlstnct Court of Colorado m and for the
County of Jefferson,
Section 6.04 All notices relating to this Agreement shall be effective when sent via
certified mall or overnight delIvery to the followlllg addresses, or to such other addresses as the
parties may from time to time designate in writing to the other party in accordance with this
Section 6,04:
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If to the City, to~
Office of Economic Development
City of Wheat RIdge
7500 West 29th Avenue
Wheat Ridge, Colorado 80033
with a copy to~
City Attorney
CIty of Wheat Ridge
7500 West 29th Avenue
Wheat Ridge, Colorado 80033
If to Coors, to~
Coors Brewing Company
PO Box 4030
Mail No. NH205
Golden, Colorado 80401
SectlOn 6,05 ThiS Agreement may be executed m one or more counterparts, each of
which when executed shall be an origmal and all of which together shall constitute one
Agreement.
SectlOn 6,06 ThiS Agreement shall be blllding upon the parties, and subJect to the
provisions of SectIOn 6.02 and m accordance With ArtIcle Five,
SectlOn 6,07 Article titles and headings used throughout thiS Agreement are for
gUidance only and shall not be given effect in the interpretatIOn of this Agreement.
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IN WITNESS WHEREOF the parties execute this Tax Incentive Agreement to be
effective as of the first date set forth above.
CITY OF WHEAT RIDGE, COLORADO, a
Colorado home rule city and municipal
corporation
ATTEST:
By:
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( ~~~derson, City Clerk
Approved as to form:
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COORS BREWING COMPANY, a Colorado
corporation
By:
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Robe~t K. Caseria
Chief Supply Chain
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Title.
Officer, Coors U.S.
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