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160E Regular Council Meeting August 13, 2012 Page 6 KC Plant Manager Philip Senn explained that KC would be making an investment over the next five years in the amount of about 150 million dollars. Mr. Senn said the investment would be to primarily deliver new products and product changes and would also involve investment in equipment to make the products. Mayor Hashmi inquired about the lifespan of the machines. Mr. Senn said they currently had assets on their books that were 1980 vintage and the new equipment was expected to outlive the seven year tax abatement. Council Member Grossnickle asked about creation of jobs. Mr. Senn said they were not adding jobs, but expected to retain the current 770 employees. Council Member Wright confirmed with Mr. Senn that KC would retain the current job level of 770 employees. Mayor Hashmi opened the public hearing and asked for anyone wishing to speak in support of this item, to please come forward. Steve Gilbert spoke in support of this item. He asked that Section 1.1 of the Agreement be changed to reflect an expiration date of December 31, 2023, to make it a ten year term. Mayor Hashmi asked for anyone wishing to speak in opposition of this item, to please come forward. With no one else speaking, Mayor Hashmi closed the public hearing. Subject to the correction, a Motion to approve the tax abatement was made by Council Member Wright and seconded by Council Member Lancaster. Motion carried, 7 ayes — 0 nays. Mayor Hashmi asked for a Motion to re -open this item due to a correction to be made. A Motion to re -open this item was made by Council Member Drake and seconded by Council Member Wright. Motion carried, 7 ayes — 0 nays. City Attorney Kent McIlyar inquired of Steve Gilbert the correct dates for the tax abatement as State Law limits the abatement to a ten year term. Mr. McIlyar wanted to know if the January 1, 2013 through December 31, 2022, isn't that ten years? Tax consultant Curt Glass said the beginning date in the agreement is the beginning date of the investment and then the actual first year of abatement would be 2014. Mr. Glass said they could just move the beginning date of the abatement agreement and end date to capture a ten year period. Mr. Godwin verified the correct dates as January 1, 2014 through December 31, 2023. Mr. Glass said the first investment would be in 2013 to be abated in 2014. Subject to the changes, a Motion to approve the Tax Abatement Agreement was made by Council Member Wright and seconded by Mayor Hashmi. Motion carried, 7 ayes — 0 nays. Mayor Hashmi said he would like to discuss an item on the consent agenda and made a Motion to re -open item 12 and seconded by Council Member Grossnickle. Motion carried, 7 ayes — 0 nays. 12. Discuss and act on a Resolution to state City Council intent to participate in tax abatement and to ratify and approve the existing abatement guidelines and criteria. Mayor Hashmi said at a previous Council meeting they discussed different rules being following for residences versus commercial, as well as different areas to be addressed within the City for tax abatement. Mayor Hashmi said these guidelines did not cover tax abatements in