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memo�andum
<br />TO: Mayor & City Council
<br />John Godwin, City Manager
<br />FROM: Steve Gilbert, Executive Director
<br />Paris Economic Development Corporation
<br />SUBJECT: J. Skinner Baking Co. (Skinner) Tax Abatement Request
<br />DATE: Apri122, 2013
<br />BACKGROUND: In December 2012 Skinner purchased the former Sara Lee facility with plans
<br />to invest $25,000,000 and create 393 jobs. Part of the local incentive package included a
<br />property tax abatement. $5,600,000 has been spent to date by Skinner, prior to this abatement
<br />request. Skinner will continue to pay property taxes on this $5.6 million, which will benefit all
<br />of the local taxing jurisdictions on-going. Paris EDC has provided other job creation incentives.
<br />STATUS OF ISSUE: Skinner has begun to hire employees and is currently making
<br />improvements to the facility in preparation to install new product lines and revitalize existing
<br />lines. Skinner will begin production in May 2013 and will steadily ramp-up hiring and
<br />production over the next 3 years. $19,400,000 will be spent by Skinner in making improvements
<br />to their property during the term of this tax abatement agreement. The improvements are
<br />summarized as follows:
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<br />Real Property and Existing Building Improvements $901,000 2013
<br />Building modifications to support proper operation, sanitation and installation of 200,000 2014
<br />the new equipment and production lines to manufacture Skinner's baking
<br />products, including updated utilities; floor, wall, and ceiling changes and finishes;
<br />structural im rovements to su ort static, live and d namic e ui ment loadin .
<br />Sweet Dou h Production Line 745,000 2013
<br />289,000 2013
<br />Croissant Production Line 500,000 2014
<br />300,000 2013
<br />Fruit lnte ration Line 930,000 2014
<br />35,000 2013
<br />Frozen Dou h Production Line 1,500,000 2014
<br />Pound Cake Production Line 1,500,000 2015
<br />Snack Cake Production Line 1,500,000 2015
<br />Clam Shell Division 1,000,000 2014
<br />Muffin Production Line 4,000,000 2015
<br />1,000,000 2015
<br />Ongoing Capital Improvements 2,500,000 2016
<br />To various roduction lines, e ui ment and facilities. 2,500,000 2017
<br />Total 5-Year Ca ital Investment $19,400,000 2013-2017
<br />BUDGET: N/A
<br />RECOMMENDATION: Approve Tax Abatement Request.
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