| 
Click
map for larger detailed view.
|
|
Local
Enterprise Zone Incentive Information
- Constitutional Oaks Business Park – Lee County, Virginia
 Company
building 362,000 sq.ft. plant in Constitutional Oaks Business
Park
Building $ 27,700,000
Equipment $ 26,000,000
Land cost (20 acres) $ 500,000
Employment
Employ 195 (assumed)
after first year of operation
Entry wage rate – not known
Tax incentives based on assumptions of various multiples of minimum
wage
Value of various
local Enterprise Zone incentives – Lee County Enterprise
Zone
Reduction
in land purchase cost (Lee County IDA)
| @ 1.5 X minimum
wage |
$ 75,000 |
(15% reduction
in land cost) |
| @ 2.0 X minimum
wage |
$ 150,000 |
(30% reduction
in land cost) |
| @ 2.5 X minimum
wage |
$ 225,000 |
(45% reduction
in land cost) |
Waiver
of permit/other fees (Lee County)
| Building permit |
$ 10,860 |
(square footage
X $.03/sq.ft.) |
| Electric, mechanical,
plumbing, occupancy |
$95 |
|
| Contractors fee
|
$44,320 |
(contract amount
X $.0016) |
| |
$ 55,275 |
|
Scale
utilized for Real Property, Machinery & Tools tax incentives
Year |
Minimum
Wage
|
1.5X
($7.73)
|
2.0X
($10.30)
|
2.5X
($12.88)
|
1-5 |
40% |
60% |
80% |
100% |
6 |
20% |
40% |
60% |
80% |
7 |
0% |
20% |
40% |
60% |
8 |
0% |
0% |
20% |
40% |
9 |
0% |
0% |
0% |
20% |
10 |
0% |
0% |
0% |
0% |
Constitutional
Oaks Business Park – Lee County, Virginia
Real Property Tax
$28,200,000 value X .65% = $183,300/yr Real Property tax
@ 1.5 X minimum wage
$183,300 x 60% = $109,980/yr for years 1-5 ($549,900), yr 6 -
$73,320, yr 7 - $36,660
Total real property tax savings thru year 7 = $659,880
@ 2.0 X minimum wage
$183,300 x 80% = $146,640/yr for years 1-5 ($733,200), yr 6 -
$109,980, yr 7 - $73,320, yr 8 - $36,660
Total real property tax savings thru year 8 = $953,160
@ 2.5 X minimum wage
$183,300 x 100% = $183,300/yr for years 1-5 ($916,500), yr 6 -
$146,640, yr 7 - $109,980, yr 8 - $73,320, yr 9 - $36,660
Total real property tax savings thru year 7 = $1,283,100
Machinery
& Tools Tax
(assuming tax rate stays constant)
| -
|
@
1.5 X minimum wage |
@
2.0 X minimum wage |
@
2.5 X minimum wage |
Year |
Taxable
Amount
|
Depreciation
Schedule
(10% assumed)
|
Machine
&
Tool Tax
($1.41/$100)
|
Tax
Liability
After Local
Incentives
|
M&T
Tax
Savings to
Company
|
Tax
Liability
After Local
Incentives
|
M&T
Tax
Savings to
Company
|
Tax
Liability
After Local
Incentives
|
M&T
Tax
Savings to
Company
|
1 |
$26,000,000 |
100% |
$366,600 |
$146,640 |
$219,960 |
$73,320 |
$293,280 |
0 |
$366,600 |
2 |
$23,400,000 |
90% |
$329,940 |
$131,976 |
$197,964 |
$65,988 |
$263,952 |
0 |
$329,940 |
3 |
$20,800,000 |
80% |
$293,280 |
$117,312 |
$175,968 |
$58,656 |
$234,624 |
0 |
$293,280 |
4 |
$18,200,000 |
70% |
$256,620 |
$102,648 |
$153,972 |
$51,324 |
$205,296 |
0 |
$256,620 |
5 |
$15,600,000 |
60% |
$219,960 |
$87,984 |
$131,976 |
$43,992 |
$175,968 |
0 |
$219,960 |
6 |
$13,000,000 |
50% |
$183,300 |
$109,980 |
$73,320 |
$73,320 |
$109,980 |
$36,660 |
$146,640 |
7 |
$10,400,000 |
40% |
$146,640 |
$117,312 |
$29,328 |
$87,984 |
$58,656 |
$58,656 |
$87,984 |
8 |
$7,800,000 |
30% |
$109,980 |
$109,980 |
0 |
$87,984 |
$21,996 |
$65,988 |
$43,992 |
9 |
$7,800,000 |
30% |
$109,980 |
$109,980 |
0 |
$109,980 |
0 |
$87,984 |
$21,996 |
TOTAL |
- |
- |
$2,016,300 |
$1,033,812 |
$982,488 |
$652,548 |
$1,363,752 |
$249,288 |
$1,767,012 |
TOTAL TAX SAVINGS to the company
IF 1.5 X minimum wage $75,000 + $55,275 + $659,880 + $982,488
= $1,772,643
IF 2.0 X minimum wage $150,000 + $55,275 + $953,160 + $1,363,752
= $2,522,187
IF 2.5 X minimum wage $225,000 + $55,275 + $1,283,100 + $1,767,012
= $3,330,387
|
