HomeMy WebLinkAbout2007-R-29
RESOLUTION NO. 2007-R- ~ 9
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PERSONAL PROPERTY TAX ABATEMENT
WHEREAS, Eagle Steel, has petitioned the Common Council of the City of
Jeffersonville, Indiana, for a deduction in real property taxes to be assessed on a proposed
expansion to be located in the Ports of Indiana, Jeffersonville, located in the City of
Jeffersonville, Clark County, Indiana; and
WHEREAS, Eagle Steel, has submitted a Statement of Benefits on the form
prescribed by the Indiana State Board of Tax Commissioners for such purpose, which
statement includes a description of the proposed redevelopment, an estimate of the
number of individuals who will be employed as a result of the redevelopment, an
estimate of the annual salaries of these individuals, and an estimate of the value of the
redevelopment; and
WHEREAS, the Common Council of the City of Jeffersonville has previously
determined that the area in which the proposed redevelopment project is located in the
City of Jeffersonville qualifies as an economic revitalization area pursuant to Indiana
Code 6-1.1-12.1-5, et seq., and Resolution 97-R-10, and confirming Resolution 97-R-14;
WHEREAS, the Common Council has reviewed the Statement of Benefits and its
attachment "A" submitted herein, and attaches and incorporates the Statement of Benefits
submitted herein, and attaches and incorporates the attachment "A" to this Resolution.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Jeffersonville, Indiana, that it specifically and affirmatively finds as follows:
1. That the estimate of the value of qualifying manufacturing equipment of
$1,088,000 is reasonable for projects of the nature described in the Statement of
Benefits submitted by the company.
2. . That the e6itimate of the number of 15 individuals who will be additionally
employed can reasonably be expected to result from the proposed described
redevelopment or rehabilitation.
3. That the estimate of the annual salaries of$459,712.50 of those individuals who
will be added can be reasonably expected to result from the proposed described
redevelopment or rehabilitation.
4. That the purchase and installation of the qualifying manufacturing equipment must
be completed within three (3) years from the date of the granted abatement.
5. That the taxes lessened from the granting of this abatement shall be used for
manufacturing equipment up to the purchase price of $1 ,088,000.
6. That all other information requested from Eagle Steel, has been submitted, and the
benefits described in such information can be reasonably expected to result from
the proposed described redevelopment.
7. That the totality of benefits for said redevelopment is sufficient to justify the
deduction.
8. That Eagle Steel has agreed to the payment of a fee of 10% of the annual benefit
of the abatement to the Jeffersonville City Council annually as described in IC 6-
1.1-12.1-14.
BE IT FURTHER RESOLVED, that the Common Council of the City of
Jeffersonville, Indiana, hereby approves the application for deduction presented
by the Statement of Benefits filed by Eagle Steel, and that said company shall be
entitled to deductions for a period of five (5) years on qualifying personal
property pursuant to the provisions ofIC 6-1.1-12.4 for personal property, with
the timely filing and perfection thereof with the Clark County Assessor's office
.~ ,
Passed and adopted this~day of ~Lo1J.t<-., 2007, by the Common Council of
the City of Jeffersonville, Clark County
/i -
President, Common Council
ATTEST:
~ ~A.J
Peggy Wilder, Clerk-Treasurer
Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville,
t
Indiana, this -;.. I'f..I
day of
&J:'JLVJ, 2007
~.
r6 /1.4J~
Peggy Wilder, Clerk-Treasurer
This J / "t I d)lfot'
,./
, 2007
Robert L. Waiz, Jr., Mayor
ATTACHMENT "A"
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR EAGLE STEEL
October 1, 2007
The council will grant 5-year abatement on an amount not to exceed $1,088,000 in
personal property as allowed by state statute. This applies to qualifying new
manufacturing equipment purchased and installed after the abatement is granted and is
subject to the dollar limit specified above. This abatement will only apply to personal
property purchased and installed in the first 36 months following the granting of
abatement, whose purchase price does not exceed $1,088,000. The abatement period
of five years will begin in the first year used for any personal property abatement and
will continue for four additional years. Personal property, subject to abatement,
installed in later years will receive abatement for the remaining years of the original
five year period as if it were purchased and installed at the same time as the original
equipment purchase and installation.
The company will provide at least 15 jobs with at least $459,712 in salaries as
specified in the Statement of Benefits and any attachment thereto. The "salaries" on
the SB-1 is agreed to mean base hourly wages, without overtime or benefits, times
2050 hours per year for the number of employees as indicated in Section 3 of the SB-
1. It is the expectation of the Council that the company will reach the number of
employees and average wages specified within three years of the date of the granting
of the abatement. The company, Eagle Steel, understands that this abatement is being
offered based upon those jobs and wages promised by the company. If the company
fails to reach those numbers or fails to maintain those numbers over the life of the
abatements, the company agrees and understands that the Council will, unless
prohibited by Indiana law, rescind these abatements and require the company to pay
back, at a pro-rata rate the real and personal property taxes that have been abated.
The company agrees to make available any and all information the council deems
necessary to verify compliance.
The company agrees to pay an annual fee of 10% of the amount of real property taxes
abated during each year ofthe abatement as described in Indiana Code 6-1.1-12.1-14.
Eagle Steel
TEN YEAR REAL PROPERTY
Cost
A V @ 80%
Gross Rate
PTRC
Net Rate
Year's Tax
0.019604044
$
New Jobs
City of Jeffersonville Tax Abatement Worksheet
Firm: Eagle Steel
5 year Personal Property
$0
FIVE YEAR PERSONAL PROPERTY
Pool Life
IC 6-4.1-12.1
Total % Abated
Year 1
Year 2
Year 3
Year 4
Year 5
Cost
PPPTRC
NET RATE
Wages Per Job
W /0 OT Average Hourly Rate
$30,647.50 $14.95
Current Yr TTV
% from Form Assessed Value
103 Schedule A or TIV Taxes Paid
Taxes Paid Taxes Abated
Year 1 $ $
Year 2 $ $
Year 3 $ $
'{ear 4 $ $
'{ear 5 $ $
{ear 6 $ $
{ear 7 $ $
{ear 8 $ $
Tear 9 $ $
rear 10 $ $
$ $
Fee Table
Total Investment Base
$
$ 500,001.00
$ 1,000,001.00
$ 10,000,001.00
$ 50,000,001.00
.tal Taxes Abated Abatement Per Job Total Investment
39,086.54 $ 2,605.77 $ 1,088,000.00
al Property
Personal Property CAGIT
$ 64,236.49 $
40 $435,200.00
60 $652,800.00
55 $598,400.00
45 $489,600.00
37 $402,560.00
$0.00
$3,203.82
$5,873.66
$7,208.58
$7,902.74
$24,188.80
% Paid to
City Council
]5%
12%
10%
7.5%
5%
Fee %
10%
Total Fee Paid
to Council Fee per year
$ 3,908.65 $ 390.87
Taxes Abated
$10,679.38
$12,815.26
$8,810.49
$4,805.72
$1,975.69
$39,086.54
EDIT
45,971.25 $ 11,492.81
Ten Years Yearly Thereafter
$ 121,700.56 $ 13,755.94