HomeMy WebLinkAboutYellowstone County - CHS 0 -«}c)lo-/-4e
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JEFF MARTIN
Clerk&Recorder Phone (406) 256-2785
P.O.Box 35001 Fax (406) 256-2777
Billings,Montana 59107-5001 Email: jmartin@co.yellowstone.mt.gov
January 19, 2016
City of Laurel
Attn: Finance
115 W. 1St Street
Laure, MT 59044
CERTIFIED MAIL
Dear Taxing Entity:
Please take notice that the Yellowstone County Board of Commissioners has scheduled a public hearing
at 9:45 A.M.on February 23, 2016 in Room 403A,Yellowstone County Courthouse to determine
whether to grant a tax incentive for CHS, pursuant to the provisions of Title 15, Chapter 24, Part 15 of
the Montana Code Annotated for remodeling, reconstruction or expansion of buildings or structures.
This applicant's business will be located within your jurisdiction and if the tax incentive is granted,the
applicant will be taxed on property as follows pursuant to Section 15-24-1502, MCA:
100%of the taxable value for the remodeled, reconstructed or expanded portion of the
property for the construction period not to exceed 12 months and for up to 5 years following
the completion of construction.
In addition to this initial period,the Board shall grant, subject to its right to terminate the tax
incentive, the following tax incentive to be applied:
20%of the increased taxable value for the remodeled, reconstructed or expanded portion of the
property the first year following the exemption period.
40%of the increased taxable value for the remodeled, reconstructed or expanded portion of the
property the second year following the exemption period.
60%of the increased taxable value for the remodeled, reconstructed or expanded portion of the
property the third year following the exemption period.
80%of the increased taxable value for the remodeled, reconstructed or expanded portion of the
property the fourth year following the exemption period.
100%of the increased taxable value for the remodeled, reconstructed or expanded portion of
the property the fifth year following the exemption period.
100%of the taxable value for the remodeled, reconstructed or expanded portion of the
property for the following years.
You may send any written comments to the Yellowstone County Clerk and Recorder, P.O. Box 35001,
Billings, MT 59107 at any time prior to the public hearing and the comments will be included in the
record of the public hearing and the comments will be included in the record of the public hearing. You
are also invited to participate in the public hearing in person although your attendance is not
mandatory.
I am enclosing a copy of the Application for Tax Incentive, a Resolution of Intent setting the public
hearing as well as a copy of the proposed Resolution granting the tax incentive for your consideration. If
you have any questions, please contact Chad Moore, Big Sky Economic Development Authority, 222
North 32nd Street,Suite 200, Billings, MT 59101 (406)254-6014.
Sincerely,4,;(14-1 )
Jeff Martin
Yellowstone County Clerk
Resolution No. 16-09
Resolution of Intent to Approve Tax Benefits for CHS, Inc., as Building Remodel,
Expansion or Reconstruction as Defined in 15-24-1401 or 15-24-1402, MCA.
WHEREAS, on January 19, 2016, CHS, Inc. submitted to the Board of County Commissioners,
Yellowstone County, Montana, for its approval an application for the tax benefits described in
section 15-24-1401 or 15-24-1402, Montana Code Annotated.
WHEREAS, the Board of County Commissioners, Yellowstone County, Montana, will hold a
Public Hearing to determine if CHS, Inc. is qualified as a Building Remodel, Expansion or
Reconstruction defined in section 15-24-1401, Montana Code Annotated, and eligible for the tax
benefits described in section 15-24-1402, Montana Code Annotated. The improvements or
modernized processes that qualify for the tax treatment approved by this resolution are:
SEE APPLICATION LISTING NEW BUSINESS .
WHEREAS, on February 23, 2016, following due notice as defined in section 76-15-103,
Montana Code Annotated, the Board of County Commissioners, Yellowstone County, Montana,
will hold a public hearing and will approve or deny the use of the schedule provided for in
subsection (1) of section 15-24-1401 or 15-24-1402, Montana Code Annotated, in determining
the tax benefits for CHS, Inc.
NOW THEREFORE, BE IT RESOLVED,
If the property of CHS, Inc. qualifies for the tax treatment provided for in section 15-24-1401 or
15-24-1402, Montana Code Annotated. The use of the schedule provided for in subsection(1) of
section 15-24-1401, Montana Code Annotated, in determining the tax benefits for CHS, Inc. will
be approved.
Passed and Adopted on the 19 day of January, 2016.
BOARD OF COUNTY COMMISSIONERS
YELLOWSTO r COUNTY,MONTANA
Bill Kennedy, Chairpers
_i►3's�__ ATTEST:
ohn Ostlund, ►4 ember
J. .•es E. Reno ember Jeff artin, Clerk and Recorder
•
APPLICATION FORM FOR TAX REDUCTION
BUILDING REMODEL, EXPANSION OR RECONSTRUCTION
(As allowed under Yellowstone County Resolution 02-66, City Council Resolutions 05-18377
and 05-18378 and 15-24-1501, 15-24-1502 or 15-24-1601 MCA)
1. Name of business: CHS Inc
2. Building Remodel or Reconstruction: Start of construction (date)
End of construction (date)
3. X Building Expansion: Start of construction(date)
End of construction(date) December 4, 2015
4. Address of business: 803 Highway 212 S. Laurel, MT 59044
Actual location of business: same
Tax Code: D2739 0`F' ^7 3 cS
Within city limits of Billings YES I I NO
5. Person representing business and responsible for application:
Name:
Shelly Nauman Title: Energy Finance Manager
Address: P.O. Box 909 Telephone: 406-628-5290
6. Amount of capital investment for Expansion, Remodel or Reconstruction in Billings/Yellowstone
County:$ 13,000,000 budget (attach detailed costs of materials and labor and dates of
construction. County Commissioners and/or City Council may request further information,such
as financial statements,business references,or other documents prior to acting on this request).
7. Approximate market value of building prior to remodel, reconstruction,or expansion:
Building#1 $3,853,110 built in 1999, Building#2$5,854,211 built in 2008 is receiving N&EI.
8. Explain business activity—what business does: CHS Laurel Operations in Laurel, MT is the headquaters
for our Northern Pipeline and Terminals Operations and the location of the CHS Laurel Refinery. The refinery
processes approximately 56,000/bpd of crude oil.The Northern Pipeline and Terminals include a crude oil
pipeline and a main refined pipeline, 7 light product terminals in MT, ND,WI and 3 asphalt terminals in MT and
ND.
9. How long has this business been located in billings and/or Yellowstone Bounty? I he onginal retmery
was built in 1930. Cenex purchased it in 1943. The Oil Basin Pipeline was built in 1954 from Laurel to Glendive.
Cenex purchased that in 1959 and in 1960 built pipe from Glendive to Minot.We have been in this community for
73 years.
10. As of the date of this application, how many employees does the business have:
At the Laurel location only
3 4 8 3 8
Full-time Part-time
11. How many employees will the applicant have within 2 years after completion of construction:
Full-time
We will have addilcomin PorH
Pbut it is due to the additional construction.
- 1 -
12. Describe job skills required for all new employees both full and part-time:
Skill set required includes engineers and supervisors with
OII and Gas , refinery expertence , governmental and
regulatory knowledge, Accountants , and IT professionals .
rechnically certificed craft labor , and process technology
trained operational labor for both refinery and pipeline .
13. What is the hourly pay scale of bothfull and part-time employees to include benefits(new employees only):
The current union average with benefits is$46.51. Supervisory will be higher than that.
14. Other Economic impacts of capital investment:The purpose of this buildinv is to hold the current employee
count and our current contractors. We have outgrown our current office space. Since 2008,the onset of the coker,
we have added 20 administrative and supervisory employees for refinery and pipeline.We are out of room.
15. Planned hiring schedule: As mentioned earlier,we plan to hire additional employees with the refienry
construction.
16. List other property tax benefits business currently receives or has applied for: N&El issued 5-31-2005,
N&EI issued 10-2-2007-Building#2 is included in this incentive.
17. Building permit(attach copy or explain absence):See attached permit
2014-BLDG-001053
18. A non-refundable fee of$500 must accompany this application to cover the cost of application
administration. Make checks payable to the Big Sky Economic Development Authority.
19. All items on this application must be addressed. Upon completion and accompanied by the
application fee,the original can be submitted to the Big Sky Economic Development Authority,
222 N.32nd Street,Suite 200, Billings, Montana 59101 (telephone 256-6871). If the application is
complete,a duly advertised public hearing will be scheduled, after which the Commissioners
and/or City Council,in their discretion,will decide whether to approve or deny the application.
The applicant,or a representative of the applicant,must appear in person at the public hearings.
20. The application to the Department of Revenue,which is part of this application,must also be
completed and signed by the applicant.
21. The Board of County Commissioners and/or City Council may review this applicant's tax incentive
program at any time and terminate further reductions at their discretion if they find the provisions
of Resolution are not being met.
22. If application is approved, applicant will comply with the following provisions. Failure to comply
may lead to the previously approved tax abatement being rescinded:
i. Provide copy of Occupancy Certificate and/or Certificate of Substantial Completion
ii. Annual Survey to be completed and returned to Big Sky EDA by June 30 of each year
iii. Remain current on all property taxes on the subject property
iv. Notify Big Sky EDA of any ownership changes or change of use of the facility
v. Comply with any other provisions set by the Board of County Commissioners and/or City
Council
23. In order for this incentive program to apply to the applicant's current year taxes,Yellowstone
County must receive the properly completed application by March of the year in which the
reduction is desired. If within the city of Billings,City Council must approve the application by
March of the year in which the reduction is desired.
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24. Signature of applicant/representat've: >
25. Date of application:
26. County Commissioner's Public hearing held (date):
27. City Council's Public hearing held(date):
Application Complete
Name: ✓ f ife'., ' D.
Recommendation by the Big Sky Economic Development A ori : Signature: /17
Approve Deny Signature: j, Date: iff/
or
County Board of Planning or Laurel-Yellowstone Cit °ounty Planning Board certifies that business
conforms to zoning regulations:
Signature: Date:
If a non-public water or sewer system is used (i.e.,septic tank and water well)County Health
Department certifies that system conforms to acceptable standard,or will do so on completion of
construction:
Signature: Date:
County Treasurer's Office certifies that City and County taxes have been paid in full or otherwise
satisfied:
Signature* Date: / Jt�
City Finance office certifies that the business has applied for the appropriate City business license:
Signature: Date:
Action by Board of County Commissioners:
Date:
Approve Deny Chair: Date:
Member: Date:
Member: Date:
Action by Billings City Council(if applicable—project within City limits):
Approve Deny
Date: CITY OF BILLINGS
By:
ATTEST:
By:
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APPLICATION TO THE DEPARTMENT OF REVENUE
BUILDING REMODEL, RECONSTRUCTION OR EXPANSION
(Title 15-Chapter 24—Part 14 MCA)
To.: Assessor
Yellowstone County
Name of Applicant
Mailing Address:
Legal description of affected property:
Date construction permit issued:
(If no permit is required, specify the date when certificate in lieu of building permit was issued).
This application covers the(expansion/new)construction of the plant.
A public hearing on this matter of Building Expansion, Remodel,or Reconstruction was held at the
Yellowstone County Courthouse at (am/pm)on the day of , 20
Due notice as defined in 76-15-103 was given. True and exact copies of said notices are attached to this
application. Yes No
The statutory$500,000 investment requirement for expansion or modernization has been met.
Yes No
The statutory 2.5%o increase in value requirement for new improvements has been met.
Yes No
The statutory 5%increase in value requirement for new improvements has been met.
Yes No
The qualifying property consists of the following:
(Attach site plats,construction prints,and detailed equipment list identifying the qualifying property.)
This application is made under the provisions of 15-24-1501 or 1601 MCA,and by resolution adopted by
the Commissioners of Yellowstone County, on the 9th day of August 2002. A copy of the same is
attached.
(Owner/Agent)
We,the undersigned, Commissioners of Yellowstone County,(approve/disapprove)this application for
. We find that it(does/does not)conform to the criteria
as set forth in the resolution adopted by this Board on the 9th day of August 2002.
Name Title
Name Title
Name Title
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Notice of Public Hearing
The Yellowstone County Board of County Commissioners will hold a public hearing in
Room 403A, fourth floor of the Yellowstone County Courthouse at 9:45 am Tuesday,
February 23 , 2016 on CHS Inc. application for tax benefits for the remodeling,
reconstruction or expansion of existing buildings or structures under Sections 15-24-1501
and 15-24-1502 of the Montana Code Annotated and Resolution 03-136 of Yellowstone
County. CHS Inc. has expanded their existing building at 803 Highway 212 S., Laurel,
MT 59044 to allow for its expansion. CHS Inc. would like to receive tax benefits for its
expansion. All interested persons are encouraged to attend and provide comment on the
application.
CHS Inc.
803 Highway 212 S.
Laurel, MT 59044
All interested persons are encouraged to attend and provide comment on the application.
Dated this 19th day of December, 2016
Board of County Commissioners
Yellowstone Co ty, Montana
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Bill Kennedy, Chairman e
(SEAL)
ATTEST:
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Jeff M , Clerk and Recorder