Loading...
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