BG Products, Inc. Industrial Revenue Bond Issue Office of Economic - - PowerPoint PPT Presentation

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BG Products, Inc. Industrial Revenue Bond Issue Office of Economic - - PowerPoint PPT Presentation

Dec 07, 2023 128 likes •315 views

BG Products, Inc. Industrial Revenue Bond Issue Office of Economic Development September 3, 2019 BG Products 2 BG Products formed 1971 Manufacturer of lubrication and cleaning products for the automotive industry Purchased

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BG Products, Inc. Industrial Revenue Bond Issue

Office of Economic Development September 3, 2019

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BG Products

  • BG Products formed 1971
  • Manufacturer of lubrication and cleaning products for the

automotive industry

  • Purchased former Sunflower Oil and Grease facility located at

701 & 740 S. Wichita in 1980s

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BG Products

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701 & 740 S. Wichita

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BG Products

  • Invested heavily in research and development of new product

lines; refined existing lines as engines have become more sophisticated

  • Automotive products and services for fuel systems, engines,

transmissions, brakes, power steering, climate control systems

  • Provides training to service advisors and technicians

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BG Products

  • Auto lab and R&D lab were old and inefficient
  • During training session, auto lab shut down; R&D lab too small

to grow

  • Classroom for training limits class size
  • Demolished two structures and replaced with new 34,000 sf

addition

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BG Products

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BG Products

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BG Products

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BG Products

  • New, larger classroom
  • Larger auto lab; dedicated demonstration room
  • Offices for engineers; increased R&D lab space
  • Larger breakroom space for training sessions

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BG Products

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BG Products

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BG Products

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BG Products

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BG Products

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Jobs Base New 5 Year Projected Avg Salary Capital 2017 174 11 185 $70,200 $12,000,000

  • 83% property tax abatement
  • 5-plus 5 year basis
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BG Products

  • Value of one year 83% tax abatement ($12,000,000 at 80%)
  • City

$56,865 State $ 2,614

  • County $51,232

USD 259 $93,569 TOTAL = $204,280 *BG Products pays in excess of $72,000 property tax annually

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BG Products

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CEDBR Benefit/Cost Analysis: $12,000,000 Projected City of Wichita 1.67 to 1 City of Wichita – Gen Fund 1.30 to 1 City of Wichita – Debt Srv Fund 1.53 to 1 Sedgwick County 1.31 to 1 USD 259 1.81 to 1 State of Kansas 3.70 to 1

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BG Products

Recommendation:

  • It is recommended that the City Council close the public

hearing and place on first reading the bond ordinance authorizing the execution and delivery of documents for the issuance of taxable Industrial Revenue Bonds in an amount not to exceed $12,000,000 for BG Products, Inc. and authorize the necessary signatures.

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Office of Economic Development

BG Products, Inc. Industrial Revenue Bond Issue