NOTICE OF PUBLIC HEARING OF OVERLAND PARK, KANSAS

Transcription

1 NOTICE OF PUBLIC HEARING OF OVERLAND PARK, KANSAS The City of Overland Park, Kansas (the City ), will conduct a public hearing at : p.m. (or as soon thereafter as is practical) on Monday, May,, in the City Council Chambers of City Hall, Santa Fe Drive, Overland Park, Kansas, to consider applying to the Court of Tax Appeals of the State of Kansas to grant an exemption from ad valorem taxes pursuant to K.S.A. -a Second, as amended, for property financed with the proceeds of not to exceed $,, principal amount of Federally Taxable Private Activity Revenue Bonds (Teva Neuroscience, Inc. Project) (the Bonds ), in accordance with K.S.A. - to -d, inclusive, as amended. The proceeds of the Bonds will be used to finance the acquisition, construction, furnishing and equipping of a corporate headquarters facility, including real estate, buildings, improvements and equipment (collectively, the Project ) to be located at the southwest corner of College Boulevard and Nall Avenue, within the City. The Project will be leased to CN Associates, LLC, a Kansas limited liability company (the Company ). The Company will sublease the Project to Teva Neuroscience, Inc., a Delaware corporation and a wholly owned subsidiary of Teva Pharmaceutical Industries Ltd. ( Teva ) for its corporate headquarters facility. Application for the exemption will be conditioned on an agreement by the Company and Teva to make certain payments in lieu of taxes which payments will be apportioned and paid by the Johnson County Treasurer to all taxing subdivisions in the territory in which the Project is located in the manner provided by K.S.A. -. The Bonds and the interest thereon will not be a debt or general obligation of the City, the State of Kansas or any municipal corporation thereof, and neither the Bonds nor the interest thereon are payable in any manner from tax revenues of any kind or character. The meeting and the hearing will be open to the public. Interested members of the public are invited to attend the hearing and will have an opportunity to express their views with respect to the Bonds and the Project. Written comments with respect to the exemption may also be submitted to the City Clerk before the hearing. A copy of the Resolution to be considered by the City on May,, expressing the intent of the governing body of the City relating to the Project and the issuance of the Bonds is on file in the office of the City Clerk and is available for public inspection during normal business hours. Additional information regarding the Bonds or the Project may be obtained in advance of the hearing from the City Clerk or on the City s website at Government/Legal-Notices/. DATED this th day of April,. CITY OF OVERLAND PARK, KANSAS By: /s/marian Cook City Clerk Notice of Public Hearing

2 RESOLUTION NO. DRAFT -- A RESOLUTION DECLARING THE INTENT OF THE CITY OF OVERLAND PARK, KANSAS, TO ISSUE FEDERALLY TAXABLE PRIVATE ACTIVITY REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION, FURNISHING AND EQUIPPING OF A CORPORATE HEADQUARTERS FACILITY AND TO GRANT PROPERTY TAX EXEMPTION. WHEREAS, the City of Overland Park, Kansas (the City ), is authorized and empowered pursuant to the provisions of K.S.A. - to -d, inclusive, as amended (the Act ), to acquire, purchase, construct, furnish and equip certain facilities (as defined in the Act) for the stated statutory purposes, to enter into leases or lease-purchase agreements with any person, firm or corporation for said facilities and to issue revenue bonds for the purpose of paying the cost of such facilities; and WHEREAS, Teva Neuroscience, Inc., a Delaware corporation duly authorized and qualified to do business in the State of Kansas and a wholly owned subsidiary of Teva Pharmaceutical Industries Ltd. ( Teva ), has requested the City to issue the City s federally taxable private activity revenue bonds in one or more series to finance the acquisition, construction, furnishing and equipping of Teva s corporate headquarters facility, including real estate (the Project Site ), buildings and improvements (collectively, the Project Improvements ) and equipment (the Project Equipment ) to be located at the southwest corner of College Boulevard and Nall Avenue, within the City, in order to promote, stimulate and develop the general economic welfare and prosperity of the City and its environs and the health of the citizens thereof and thereby to further promote, stimulate and develop the general economic welfare and prosperity of the State of Kansas and the health of the citizens thereof; and WHEREAS, the Project Site, the Project Improvements and the Project Equipment are herein collectively referred to as the Project ; and WHEREAS, the City will lease the Project to CN Associates, LLC, a Kansas limited liability company (the Company ) and the Company will sublease the Project to Teva; and WHEREAS, subject to the provisions of Section of this Resolution, the City desires to finance the cost of acquiring, constructing, furnishing and equipping the Project by the issuance of federally taxable private activity revenue bonds in one or more series pursuant to the Act, said bonds to be payable solely out of the rentals, revenues and receipts derived from the lease of the Project by the City to the Company and the sublease of the Project to Teva; and WHEREAS, the City, Teva and the Company desire that the financing of the Project commence as soon as it is practicable; and WHEREAS, the Company and Teva have requested the City to issue the initial series of its federally taxable private activity revenue bonds in the principal amount not to exceed $,, (the Series A Bonds ); --.

3 DRAFT -- NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF OVERLAND PARK, KANSAS, AS FOLLOWS: Section. Subject to the provisions of Section of this Resolution, it is hereby found and declared that the issuance of federally taxable private activity revenue bonds in one or more series by the City for the purpose of financing the cost of the proposed Project to be leased to the Company and subleased to Teva will promote, stimulate and develop the general economic welfare and prosperity of the City and its environs and the health of the citizens thereof as well as further promoting, stimulating and developing the general economic welfare and prosperity of the State of Kansas and the health of the citizens thereof. Section. Subject to the provisions of Section of this Resolution, the governing body of the City hereby intends to authorize the issuance of federally taxable private activity revenue bonds in one or more series and to authorize the issuance of the Series A Bonds in the principal amount not to exceed $,, to be issued pursuant to the Act and all necessary regulatory approvals and upon the conditions more fully set forth in Section hereof. Section. Notwithstanding this Resolution of Intent of the City to issue the bonds in one or more series and to issue the Series A Bonds in the principal amount not to exceed $,,, the issuance of the bonds and the Series A Bonds is expressly subject to presentation, completion and final approval by the governing body of the City, of each of the conditions set forth in sub-paragraphs (a) through (e) below. In addition the issuance of such bonds is also conditioned on and subject to the reservations of rights set forth in sub-paragraphs (f) and (g) below: (a) Satisfactory negotiation and approval of a lease agreement, sublease lease agreement, trust indenture, bond ordinance and other documents necessary for the issuance of the bonds, including a payment in lieu of tax agreement for each series of bonds including a payment in lieu of tax agreement for the Series A Bonds by and among the City, the Company and Teva wherein the Company and Teva agree to pay certain sums based upon a fifty percent (%) abatement by the City of general ad valorem real estate taxes; provided, however, said fifty percent (%) abatement is subject to the Company and Teva complying with the terms and conditions of said payment in lieu of tax agreement; and (b) Obtaining all necessary zoning and building permits and compliance with all necessary regulatory approvals and with the City ordinances; and (c) Successful private placement of the bonds or other purchase method approved by the City; and (d) Approval of the bonds by Kutak Rock LLP, Bond Counsel, and approval of certain legal matters pertaining to the bonds by counsel to the Company and counsel to Teva; and (e) Adequate security for the payment of the bonds; and --.

4 DRAFT -- (f) The City hereby reserves the right to rescind this Resolution of Intent if the conditions specified in this Section hereof are not, in the sole judgment of the City, satisfied, or upon change of federal or state law or regulations affecting the City s issuing authority; and (g) If the bonds, including the Series A Bonds, are not issued for any reason, including noncompliance with the conditions of this Section hereof the City shall not be subject to any liability, whatsoever, to the Company or Teva. Section. Subject to the conditions and prior approvals of Section, the Company and Teva are hereby authorized to proceed with all matters necessary to accomplish the purposes set forth in this Resolution. Section. The Mayor, City Council, City Manager, Deputy City Manager, Bond Counsel and City Attorney are hereby directed to take such action as they deem necessary in cooperation with all persons involved with the financing of the Project in order to present the necessary documents to the governing body of the City for final action. In connection therewith, Bond Counsel for the City is directed to work with the Company, Teva and their respective counsel, and all others necessary, to accomplish the purposes as set forth herein. Section. The City, the Company and Teva expect to incur expenses in connection with the acquisition, construction, furnishing and equipping of the Project prior to the issuance of the bonds. The City, the Company and Teva reasonably expect to reimburse all expenditures in connection with the Project from the proceeds of the bonds, including the Series A Bonds. Section. This Resolution shall take effect and be in full force on the date it is adopted by the governing body and signed by the Mayor. This Resolution shall be of no effect and shall be null and void on, in the event the Series A Bonds have not been issued by such date. --.

5 DRAFT -- THIS RESOLUTION IS HEREBY ADOPTED by the governing body of the City of Overland Park, Kansas, this th day of May,. CITY OF OVERLAND PARK, KANSAS (SEAL) By: Carl R. Gerlach Mayor ATTEST: By: Marian Cook City Clerk APPROVED AS TO FORM: By: Michael R. Santos, City Attorney APPROVED AS TO FORM: By: Janet S. Garms, Bond Counsel Resolution of Intent --.

6 A Tax Abatement Cost-Benefit Analysis of Teva Neuroscience, Inc. The firm is located in: City of Overland Park Report Printed: // Description of the firm's location or expansion in the community: The project contemplated under this Application is the relocation of Teva Neuroscience's Kansas City, Missouri office to a site in Overland Park, Kansas at the southwest corner of College Blvd. and Nall Aveneue. This report includes an analysis of costs and benefits from the firm for the following taxing entities where the firm is or will be located. These taxing entities are considering tax abatements or incentives for the firm: City: Overland Park County: Johnson School District: Blue Valley () Special Taxing District: Special Taxing District: State of Kansas JCCC Johnson County Parks & Library Contents of this report: About this Cost-Benefit Analysis Report Page Summary of Costs and Benefits for all Taxing Entities Page The Economic Impact that the Firm will have on the Community Page Costs and Benefits for: City: County: Overland Park Johnson Page Page School District: Blue Valley () Page Special Taxing District: JCCC Page Special Taxing District: Johnson County Parks & Library Page State of Kansas Page This Kansas Tax Abatement Cost Benefit Analysis (CBA) is prepared by the Kansas Department of Commerce for the benefit and use of the State of Kansas and its local units of government. This model was developed to assess the costs and benefits property tax abatement and economic development incentives have on state revenues. The Department of Commerce makes no representations, guarantees, or warranties as to the accuracy, completeness, or suitability of the analysis or information contained in this CBA. The Kansas Department of Commerce specifically disclaims any and all liability for any claims or damages that may result from other uses of the analysis in this CBA. Teva Neuroscience, Inc. - // at :: PM Page

7 About this Cost-Benefit Analysis Report This cost-benefit analysis report was prepared using a computer program that analyzes economic and fiscal impact. The report shows the impact that the firm, its employees and workers in spin-off jobs will have on the community and the state. The economic impact over the next ten years is calculated along with the accompanying public costs and benefits for the State of Kansas and the taxing entities included in this analysis. The analysis also shows the effect of tax abatements and incentives that may be considered for the firm. Here is how the analysis was performed:. Data was entered for the state and community's tax and other rates; the firm and its employees; tax abatements and other incentives being considered for the firm; construction activity; and expected visitors.. Using the data entered, as well as some rates built into the computer program, calculations were made of the economic impact of the firm along with the related costs and benefits. The calculations of impact include direct, indirect and induced impact. Regional economic multipliers, specific to the firm's industry group, were used by the program to calculate the direct and induced or spin-off jobs and earnings in the community. These are the report sections: Summary of Costs and Benefits for all Taxing Entities This report page summarizes the costs and benefits for all taxing entities resulting from the firm and from new direct, indirect and induced jobs. The Economic Impact that the Firm will have on the Community This report page shows the number of direct, indirect and induced jobs that will be created in the community, the number of new residents and additional school children, and increases in local personal income, retail sales, economic activity and the property tax base in the first year and over the next ten years. Benefits and Costs for Each Taxing Entity These report pages summarize the costs and benefits for the State of Kansas and for each taxing entity as a result of the firm locating or expanding in the Kansas community. The public benefits include additional revenues from the firm and employees for the taxing entities - - -sales taxes, property taxes, utilities, utility franchise fees, other payments by new residents, Payments in lieu of taxes (PILOT) by the firm and additional school funding. Public costs include the additional costs of public services for new residents and the firm, costs of educating new students that move to the school district, along with tax abatements and incentives provided to the firm. In addition to a presentation of public costs and benefits, this report also computes the present value of net benefits to be received by each taxing entity; the payback period for incentives and taxes to be abated; the rate of return on investment for each entity, and, cost benefit ratios. Payback Period The investment payback period for each taxing entity was computed. This analysis views the financial incentives, including tax abatement, that the taxing entities are considering for the firm as an investment that the public will be making in the company. The payback period, therefore, is the number of years that it will take each taxing entity to recover the cost of incentives from the net annual benefits that they will receive. This payback period also shows the point in time where the cost and benefits are equal for the level and length of tax abatements and incentives being granted. The payback period is a basis for judging the appropriateness of providing incentives to a firm. Generally, the shorter the payback period the better the investment. Teva Neuroscience, Inc. - // at :: PM Page

8 Present Value The present value of the expected cash flow over the next ten years for each entity was computed. Present value is a way of expressing in today s dollars, dollars to be paid or received in the future. Today s dollar and a dollar to be received or paid at differing times in the future are not comparable because of the time value of money. The time value of money is the interest rate or each taxing entity s discount rate. The analysis uses a discount rate that is entered to make the dollars comparable by expressing them in today s dollars (present value). Generally, a positive present value indicates an acceptable investment. Rate of Return on Investment The rate of return on investment for each taxing entity was also computed. As with the computation of payback, the rate of return analysis views the incentives that each taxing entity is considering as an investment that the public will be making in the company. The rate of return, therefore, is the compound rate of return, over the next ten years, on each taxing entity's investment in the firm. Generally, a positive compound rate of return is considered desirable. Benefit to Cost Ratio The benefit to cost ratio for each taxing entity was also computed. This ratio compares public benefits over a ten year period from the new or expanding firm to public costs during the same period. For example, a benefit to cost ratio of. (or. to ) shows that ten year benefits are percent of public costs. Conversely, a benefit to cost ratio of. shows that public benefits are only percent of public costs --costs exceed benefits. Generally, a benefit to cost ratio of. to is considered acceptable for a taxing entity to grant tax abatements and other financial incentives to a firm. Teva Neuroscience, Inc. - // at :: PM Page

9 How were the benefits and costs determined? City, County, Special Taxing District and State Benefits and Costs The Cost Benefit Analysis (CBA) operates with the assumption that % of the jurisdiction s revenues and expenditures supports its citizens, and % supports its businesses. Therefore, % of the revenues/costs (divided by number of residents) are calculated as the average revenue/cost per resident; % of these revenues/costs (divided by the number of workers in the jurisdiction) are calculated as the average revenue/cost per worker. The CBA predicts potential benefits and costs from residents by multiplying the number of new employees moving to the jurisdiction by the average revenue/cost per resident. Benefits and costs from the business expansion are predicted by multiplying the average revenue/cost per worker. Collection of sales taxes, transient guest taxes and property taxes as well as utility enterprises and franchise fees are potential benefits from an expansion.. Other revenues include fees, permits, license, and other charges. The program predicts costs by removing utility enterprise expenditures and internal transfers from the general operating budget, and reducing the result to a cost per resident and a cost per worker. School District Benefits and Costs Property taxes as well as state and federal payments per full time student are used to predict benefits a school district may realize. The Kansas Department of Education condenses the school district s budget to a cost p er student. One new student will not cause the addition of a new classroom or the hiring of another teacher, so it would not be fair to estimate the impact of new students using the average cost per student. The program utilizes a marginal cost per student (% of the average cost per student, unless a different percentage is requested) to predict the cost to the district when a new student is added. Revenue per student is calculated from the amount of state and federal payment per student that the district receives. The business predicts the average family size of new employees moving to the jurisdiction and the number of school age children in the family. The CBA can work with percentages, as in a family size of.. Indirect Jobs The ripple or spin-off economic activity created by an expansion generates indirect or induced benefits. The number of jobs this activity generates depends largely on the type of business that is expanding and what types of jobs will be needed to support not only the business, but the new employees and their families. The program uses a default of % of the number of new employees to predict these jobs. The percentage can be adjusted, depending on community conditions, which also determine whether the indirect workers will be moving from out of state or out of county. Formulas used in this analysis Present Value = ( Benefits (for the year) +Discount Rate (.%))^Number of s Abated) Compound Rate of Return = ((Present Value of Costs Present Value of Benefits)^ (/Number of s Abated))- Benefit to Cost Ratio = Present Value of Benefits Present Value of Costs Payback Period = The point where total benefits equal or surpass total costs. K.S.A. - (g) allows governmental bodies to seek assistance provided by the Kansas Department of Commerce (COMMERCE) in preparing an application requesting exemption from property taxes. COMMERCE prepared this cost benefit analysis as a service under this statute utilizing data gathered by the requesting governmental body, and makes no recommendation to the Board of Tax Appeals either for or against approval of a request for tax abatement. Teva Neuroscience, Inc. - // at :: PM Page

10 Summary of Costs and Benefits for all Taxing Units Benefits: Sales Taxes Property Taxes Utilities and Utility Franchise Fees Corporate and Personal Income Taxes Additional School Funding Other Revenues (Including PILOT) Benefits City: Overland Park $, $,, $, $,, $,, County: Johnson $, $,, $,, $,, Blue Valley () $,, $,, $,, JCCC Johnson County Parks & Library State of Kansas $,, $,, $, $, $,, $, $, $,, $,, $,, $,, Costs, Incentives and Taxes Abated: Costs of Services for the Firm and New Residents Costs of Taxes Educating Abated & New Students Taxes Abated Incentives Incentives Costs City: Overland Park $, $, $, $, $,, County: Johnson $, $,, $,, $,, Blue Valley () $, $,, $,, $,, JCCC Johnson County Parks & Library State of Kansas $, $, $,, $,, $, $, $, $,, $, $, $,, $,, $, $,, Net Benefits: Benefits Present Value of Benefits Costs (Includes Taxes Abated and Incentives) Present Value of Costs Benefit to Cost Ratio (Over s) City: Overland Park County: Johnson Blue Valley () JCCC Johnson County Parks & Library State of Kansas $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $, $,, $,, $,, $,, $,, $, $,, $,, $,, $,, $, $, $,,. :. :. :. :. :. : Other Net Benefits Present Value of Net Benefits Taxes Abated & Incentives Present Value of Taxes Abated and Incentives Payback Period for Taxes Abated and Incentives and Taxes Abated Compound Rate of Return (Over Yrs) City: Overland Park County: Johnson Blue Valley () JCCC Johnson County Parks & Library State of Kansas $,, $,, $,, $, $, $,, $,, $,, $,, $, $, $,, $, $,, $,, $, $, $,, $, $,, $,, $, $, $,, s s s s > s s.%.%.%.%.%.% Teva Neuroscience, Inc. - // at :: PM Page

11 The Economic Impact of this expansion by Teva Neuroscience, Inc. NAICS Code - Chemical manufacturing In the first year Over the next ten years *Number of new direct and indirect jobs to be created Number of new residents in the community Number of additional students in the local school district **Increase in local personal income ***Increase in local retail sales,, $,,,,, $,, $,, Increase in the community's property tax base Land Buildings Furniture, fixtures & Equipment Residential Property $,, $,, $,, $,, $, $,, $,, $,, $,, $, *The Employment Multiplier for NAICS Code is.. The Employment Multiplier is used to estimate the total change in the number of direct and indirect jobs as a result of the expansion. **The Earnings Multiplier for NAICS Code is.. The Earnings Multiplier is used for estimating to what degree more personal income will be generated. ***The Percentage of Gross Salaries expected to be spent on retail sales is. Property taxes to be abated by the following taxing entities: City County School District Special Taxing District Special Taxing District The State Percent of property taxes to be abated on: Land.%.%.%.%.%.%.%.%.%.% Buildings and Improvements.%.%.%.%.%.%.%.%.%.% Furniture, Fixtures & Equipment.%.%.%.%.%.%.%.%.%.% Teva Neuroscience, Inc. - // at :: PM Page

12 City of: Overland Park Benefits: Sales Taxes Property Taxes Utilities and Utility Franchise Fees Other Municipal Revenues (Including PILOT) Construction Period $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $, $,, $,, Costs: Property Taxes Abated Incentives Taxes Abated & Incentives City Costs for the firm and Municipal Services for New Residents Costs, Taxes Abated & Incentives Construction Period $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, Net Benefits (or Costs) Public Benefits Public Costs, Property Taxes Abated and Incentives Net Benefits or (Costs) Present Value of Net Benefits Present Value of taxes abated and incentives Construction Period $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, $,, $,, $, Discounted payback period for taxes abated and incentives... Compound rate of return over the next ten years on the city's investment of taxes abated and incentives for the firm... Benefit/Cost Ratio (Over s)... s.%. : Teva Neuroscience, Inc. - // at :: PM Page

13 Johnson County Benefits: Sales Taxes Property Taxes Construction Period $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, Other County Revenues (Including PILOT) $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, $,, Costs: Property Taxes Abated Incentives Taxes Abated & Incentives County Costs for the firm and County Services for New Residents Construction Period $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, $, $,, Net Benefits (or Costs) Public Benefits Public Costs, Property Taxes Abated and Incentives Net Benefits or (Costs) Present Value of Net Benefits Present Value of taxes abated and incentives Construction Period $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, $,, $,, $,, Discounted payback period for taxes abated and incentives... Compound rate of return over the next ten years on the county's investment of taxes abated and incentives for the firm... Benefit/Cost Ratio (Over s)... s.%. : Teva Neuroscience, Inc. - // at :: PM Page

14 School District: Blue Valley () Benefits: Property Taxes Additional State, Federal and Other School Funding (Including PILOT) $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $, $, $, $, $, $, $, $, $, $, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, Costs: Additional Costs Property Taxes Abated $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, Net Benefits (or Costs) Public Benefits Costs and PropertyTaxes Abated Net Benefits or (Costs) Present Value of Net Benefits Present Value of Taxes Abated $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, $,, $,, $,, Discounted payback period for taxes abated and incentives... Compound rate of return over the next ten years on the school district's investment of taxes abated and incentives for the firm... Benefit/Cost Ratio (Over s)... s.%. : Teva Neuroscience, Inc. - // at :: PM Page

15 Special Taxing District: JCCC Benefits: Property Taxes Additional Revenues $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $, $,, Costs: Additional Costs Property Taxes Abated $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, Net Benefits (or Costs) Public Benefits Costs and PropertyTaxes Abated Net Benefits or (Costs) Present Value of Net Benefits Present Value of Taxes Abated $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, $, $, $, Discounted payback period for taxes abated and incentives... Compound rate of return over the next ten years on the taxing district's investment of taxes abated and incentives for the firm... Benefit/Cost Ratio (Over s)... s.%. : Teva Neuroscience, Inc. - // at :: PM Page

16 Special Taxing District: Johnson County Parks & Library Benefits: Property Taxes Additional Revenues $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, Costs: Additional Costs Property Taxes Abated $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, Net Benefits (or Costs) Public Benefits Costs and PropertyTaxes Abated Net Benefits or (Costs) Present Value of Net Benefits Present Value of Taxes Abated $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $, $, $, $, Discounted payback period for taxes abated and incentives... Compound rate of return over the next ten years on the taxing district's investment of taxes abated and incentives for the firm... Benefit/Cost Ratio (Over s)... > s.%. : State of Kansas Teva Neuroscience, Inc. - // at :: PM Page

17 Benefits: Sales Taxes Property Taxes Corporate and Personal Income Taxes Other State Revenues (Including PILOT) Construction Period $,, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $, $,, $,, $,, Costs: Construction Period Property Taxes Abated $, $, $, $, $, $, $, $, $, $, Incentives $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, Taxes Abated & Incentives $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, State Costs for the firm and Services for New Residents $, $, $, $, $, $, $, $, $, $, Cost of Educating New Students $, $, $, $, $, $, $, $, $, $, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $, $,, $,, $,, $,, $,, Net Benefits (or Costs) Public Benefits Public Costs, Property Taxes Abated and Incentives Net Benefits or (Costs) Present Value of Net Benefits Present Value of taxes abated and incentives Construction Period $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, $,, Discounted payback period for taxes abated and incentives... Compound rate of return over the next ten years on the state's investment of taxes abated and incentives for the firm... Benefit/Cost Ratio (Over years)... s.%. : Teva Neuroscience, Inc. - // at :: PM Page

18 Data Used in this Benefits/Cost Report # Teva Neuroscience, Inc.. City of Overland Park..%.% $,,,, $,, $,, $,, $,, $,,. City Mill Levy. City Sales Tax rate. City Transient Guest Tax rate. Average market value of new residential property in the city. Number of residents in the city. Number of workers at businesses in the city. Number of households in the city. Annual Revenues for the city. General Operating budget for the city. Enterprise funds that are self supporting, such as utilities. Internal transfers (the portion of the city budget reflecting one city department billing another city department). Collection of property taxes, transient guest taxes, sales taxes, utilities and utility franchise fees Annual Billed Amount Utility Revenue from Households City Owned Utilities Annual Cost Franchise Fee Collections Collected Fee Rate. Telephone $,.. Electricity $,,.. Gas $,,.. Water. Waste Water. Garbage. Cable $,,.. Other $ Average utility revenue and franchise fee collections per household: City or County Owned Utilities Annual Billed Amount Utility Revenue from the Firm Annual Cost Franchise Fee Collections Collected Fee Rate. Telephone $, $.. Electricity $, $,.. Gas $, $,.. Water $,. Waste Water $,. Garbage $,. Cable $, $.. Other $, $, utility revenue and franchise fee collections from firm in Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page

19 . Johnson County..%,, $, $,, $,, $,, $,, $,,. County Mill Levy. County Sales Tax rate. County Transient Guest Tax rate. Regional economic multiplier adjustment for the county. Number of residents in the county. Number of workers at businesses in the county. Average market value of new residential property in the county. Annual Revenues for the county. General Operating budget for the county. Enterprise funds that are self supporting, such as utilities. Internal transfers (the portion of the county budget reflecting one county department billing another county department). Collection of property taxes, transient guest taxes, sales taxes, utilities and utility franchise fees. Blue Valley (). $,, $,, $, $, $, $,. District local option mill levy. Average market value of new residential property in the district. Number of students enrolled in the district. Annual Operating expenditures. Average Cost per child enrolled in the district. Estimated marginal cost per child enrolled in the district. State funding per child in the district. Federal and other annual funding per child in district. JCCC. $,,, $,, $,, $,, % % % %. District mill levy. Average market value of new residential property in the district. Number of residents in the district. Number of workers at businesses in the district. annual revenues. general operating budget. property taxes collected. Percent of budget devoted to residents. Percent of non-tax revenues received from residents.. Percent of budget devoted to businesses.. Percent of non-tax revenues received from businesses. Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page

20 . Johnson County Parks & Library. $,,, $,, $,, $,, % % % %. District mill levy. Average market value of new residential property in the district. Number of residents in the district. Number of workers at businesses in the district. annual revenues. general operating budget. property taxes collected. Percent of budget devoted to residents. Percent of non-tax revenues received from residents.. Percent of budget devoted to businesses.. Percent of non-tax revenues received from businesses. State of Kansas..% $, $ % % % % % $ $, % State mill levy State sales tax rate Annual marginal revenues per new resident (excluding property, income and sales taxes.) Annual marginal cost of providing services to each new resident Tax classification for residential real property Tax classification for commercial and industrial real property Tax classification for commercial and industrial machinery and equipment ( years of more life) Tax classification for all other tangible personal property Economic life (in years) for straight line depreciation of commercial and industrial machinery and equipment Minimum taxable value (as a percent of retail cost) of commercial and industrial machinery and equipment Annual marginal cost (per worker) of providing services to businesses Annual per worker revenues for the state from businesses (excluding property, income and sales taxes) Percent of gross salary that a typical Kansas worker spends on taxable goods and services Inflation and Discount Rates Used.%.% Inflation rate Discount for calculating the present value of costs and benefits Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page

21 . NAICS Code. Teva Neuroscience, Inc.. Description and purpose of the expansion: The project contemplated under this Application is the relocation of Teva Neuroscience's Kansas City, Missouri office to a site in Overland Park, Kansas at the southwest corner of College Blvd. and Nall Aveneue. Capital Investment Market or retail value of the new or additional investment: First Expansion Second Third Fourth. Land $,,. Building Improvements $,,. Furniture, fixtures and equipment $,, Sales Purchases. $,,. $,,. $,,. $,,. $,,. $,,. $,,. $,,. $,,. $,, Percentage subject to sales tax: Sales. City % %. County % %. State % % Sales and Purchases Purchases.%. Expected annual net taxable income (% of sales on which state corporate income tax will be computed.) Annual Utility Expenditures Construction Period of Expansion. Telephone $,. Electricity $, $,. Gas $, $,. Water $, $,. Wastewater $, $,. Garbage $,. Cable $,. Other $, $, %. Anticipated percentage rate utility bills will increase during the remaining years of the expansion. Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page

22 New Employees due to Expansion New Hires Average Annual Salaries Moving to the county. $,. $,. $,. $,. $,. $,. $,. $,. $,. $, Moving from out of state New Construction Initial Construction or Expansion nd Expansion rd Expansion. Construction Cost $,,. Construction Profit Percentage % % % th Expansion % Construction Materials Purchased Initial Construction or Expansion nd Expansion rd Expansion th Expansion. In the state $,,. In the County $,,. In the City $,, Costs of Furniture, Fixtures & Equipment Purchased Initial Construction or Expansion nd Expansion rd Expansion th Expansion. In the state $,,. In the County $,,. In the City $,, Construction Workers and Salaries Initial Construction or Expansion nd Expansion rd Expansion th Expansion. Number of construction workers. Household size of average worker..... salary paid average worker $,. construction salaries $,, Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page

23 Visitors due to the Expansion Out-of-town visitors expected.,.,.,.,.,.,.,.,.,.,.... Number of days an average visitor is expected to stay in the area.. Number of nights a visitor is expected to stay in city hotels or motels. Number of nights a visitor is expected to stay anywhere in the county Extraordinary Payments the Firm Will Make City County State. Construction Period. $,. $,. $,. $,. $,. $,. $,. $,. $,. $, Extra Costs to Provide Infrastructure and/or Services for this Expansion City County State. Construction Period Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page

24 Incentives, Other than Tax Abatements offered the Firm City County State. Construction Period $,. $,,. $,,. $,,. $,,. $,,. $,,. $,,. $,,. $,,. $,, Property Tax Abatements Yes. Is the expansion located within city property tax jurisdiction? Taxes will be abated by: Yes Yes Yes Yes Yes Yes. City. County. School District. Special Taxing District #. Special Taxing District #. State Percentage of taxes to be abated on: Land. %. %. %. %. %. %. %. %. %. % Buildings & Improvements % % Furniture, Fixtures & Equipment % % % % % % % % % % % % % % % % % % Where new employees live As a Percentage of the Number of New Employees %. In the city. %. In the school district where the firm is located. %. In special taxing district %. In special taxing district Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page

25 Where new employees shop As a Percentage of the Number of New Employees % % %. In Kansas.. In the county. In the City New Employee Housing and Schools Count.. %. Household size of a typical new employee. School age children in household of a typical new employee. Percentage of new employees moving to the community for whom new housing will be required. Indirect New Employees As a Percentage of the Number of New Employees.%.% Spent in. Moving to the county. Of those, moving from out-of-state Where construction salaries are spent Percentage Initial Construction or Expansion nd Expansion rd Expansion th Expansion. Kansas % $,,. County % $,,. City % $,, Visitors In the county. Daily retail spending by a visitor, excluding lodging $. Average daily hotel/motel room rates $ Of that, in the city $ $ Data Used Report - Last Printed // at :: Teva Neuroscience, Inc. - Page