HomeMy WebLinkAbout2009-R-04
RESOLUTION N0.2009-R- '7
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PERSONAL PROPERTY TAX ABATEMENT
WHEREAS, Flow International Corporation, has petitioned the Common Council of the City of
Jeffersonville, Indiana, for a deduction in real property taxes to be assessed on a proposed
new facility to be located in the Bridgeport Business Center located in the City of
Jeffersonville, Clark County, Indiana; and
WHEREAS, Flow International Corporation, 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, 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 $716,392 and real
estate improvements of $635,000 is reasonable for projects of the nature described in the
Statement of Benefits submitted by the company.
2. That the estimate of the number of 9 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 $540,000.00 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,
demonstration and showroom, and IT equipment.
6. That all other information requested from Flow International Corporation, 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 Flow International Corporation 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 Flow
International Corporation, and that said company shall be entitled to deductions for a period of
five (5) years on qualifying personal property pursuant to the provisions of IC 6-1.1-12.4 for
personal property, with the timely filing and perfection thereof with the Clark County Assessor's
office.
The Jeffersonville location of Flow International, headquartered in Kent, Washington,
has experienced tremendous growth due to its increasing presence in the Aerospace
industry. The recent announcement mid 2008 by Airbus of a multi million contract with
Flow bolstered this position, along with other contracts with clients like Boeing, GE and
Mitsubishi Heavy Industries for Jeffersonville produced product has resulted in
significant growth. Also, due to restructuring implemented by Flow's Kent management,
closures of facilities in Canada and Taiwan and the resulting transfer of that business to
Jeffersonville has also increased activity at Flow. And, finally, a new training center,
relocated from Detroit, and demo lab has been constructed within the Jeffersonville
facility.
Flow has been a part of the Jeffersonville manufacturing landscape since 1995. During
its existence, it has become an ISO certified facility with solid, hard-working employees.
Presently there are 53 hourly employees and 44 salary employees; these numbers are up
one and five employees respectively compared to a year ago. The annual payroll of Flow
Jeffersonville is approximately $5.4 million. Flow Jeffersonville is a model factory,
working hard to provide Flow with a stellar location for its Aerospace business. Flow's
impressive history has resulted in the following investments totaling over $1 million over
the past year:
• Purchase of land between the Production Road facility and the Fabricon Building
• Purchase of the Fabricon Building
• Relocation of the standard product production line
• Remodeling of the Sales Offices
• Remodeling of the Reception Area
• Construction of a Training Center and Demo Lab within the main building
• Purchase/upgrade of IT equipment
• Addition of high 4 paying engineering and project management positions
These investments have allowed Flow to take on the rapidly increasing workload, even
with a sizable decrease in the production of our standard production business. As a
result, Flow has been able to avoid any adjustments in our workforce that have become so
prevalent in today's dismal economic climate. When this business recovers, we fully
expect to need additional employees to be added to production.
Flow's clientele include a number of premier international corporations such as Airbus,
Boeing and Mitsubishi. High level employees of these companies, including the
president of Airbus US, have visited Jeffersonville and left thoroughly impressed with
both Flow employees and the Jeffersonville area. The recently completed training center
has hosted two sessions with up to eight students. The plan is to hold at least two of these
sessions every month; the economic impact of these training sessions is significant, with
hotel, meals, rental cars and other entertainment dollars being spent in Jeffersonville.
Flow continues to strive to elevate its operations, and become the "shining star" of Flow
International. The management of Flow obviously has many options when deciding how
to spend investment dollars. To date we have been successful in this goal, and future
expansion of business and realignment could be very beneficial to the Jeffersonville
operations. Should Jeffersonville be the site chosen for future consolidation of
operations, the benefits to the area would be significant, including:
• Nine additional jobs with average annual payroll of $500,000:
o Two engineering positions at an average hourly rate of $37.00
o Designer at an average hourly rate of $22.00
o Five Advanced Technicians at an average hourly rate of $16.97
o One project manager at an average hourly rate of $50.00
• Additional investment in equipment - $1,000,000
• Facilities improvements including IT area remodeling, landscaping, etc. $250,000
• Training
Flow International in Jeffersonville is obviously a growing company with solid ties to the
city of Jeffersonville. The opporhuuties for growth and additional investment are good
and we hope that the City of Jeffersonville will partner with us and help in keeping this
solid company and its highly skilled and highly compensated workforce here for a long
time to come.
a ~~ ~°; STATEMENT OF BENEFITS FORM SB-1 1 PP
`~-~'~~-. ~ PERSONAL PROPERTY
` State Form 517fi4 (R t 1-06) PRIVACY NOTICE
'J ~OiB ~,• Prescribed by the Department of Local Government Finance
The cos[ and any specific individual's
salary information is conr~dentiat; the
balance o€ the filing is public record
per IC 6-1.1-12.1-5.1 c and d .
INSTRUCTIONS:
1, This statement must ba submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted
to the designating body BEFORE a person installs the new manufacturing equipment and/or research and development equipment: and/orlogistical distribution
equipment and/or information technology equipment for which the person wishes to claim a deduction. Projects' planned or committed fo after July 1, 1987,
and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (/C 5-1.1-12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior fo insfafla$on of the new manufacturing equipment
and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment, BEFORE a deduction may
be approved
3. To obtain a deduction, a person must frle a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form
103-ERA) with the township assessor of the township where the property is situated. The 103-ERA must be filed between March 1 and May 15 of the
assessment year in which new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or
information technology equipment is installed and fully frrnctional, unless a fr!!ng extension has been obtained. A person who obtains a frling extension must
frle the form between March 1 and the extended due date of that year.
4. Property owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF-1 / PP annually to show compliance with the
Statement of Benefits. (lC 6-1.1-12.1-5.6)
5. The schedules established under IC 6-1.1-12.1-4.5(d) and (e} apply to equipment installed after March 1, 2001. For equipment installed prior to March 2,
2001, the schedules and statutes in effect at the time shall conSnue to apply. (!C 6-1.1-12.1-4.5(t) and (g))
Name of taxpayer
Flow International Corporation, Jeffersonville Division
Address of taxpayer (number and street, cdy, state, and ZfP code)
1635 Production Road Jeffersonville, IN 47130
Name of contact person Telephone number
Anthony Neeley (812) 2ssasas
Name of designating body Resolution number {s)
Common Council of City of Jeffersonville
Locatlon of property County DLGF taxing district number
1635 Production Road Jeffersonville, IN 47130 Clark
Description of manufacturing equipment and/or research and development equipment ESTIMATED
and/or logistical distribution egwpment and/or information technology equipment,
a
)
if
diti
l
h
t START DATE COMPLETION DATE
ry
s
necess
ona
s
ee
(use ad
d trainin
l
dd
d
h
d i Manufacturing Equipment 04/01/2009 04/30/2010
g
new
y a
e
owroom an
n s
Equipment use
center; IT equipment
R & D Equipment
Logist Dist Equipment
IT Equipment 04/30/2009 04/30!2010
• • • ~ • •••• ~ •o
Current number Salaries Number retained Salaries Number ad ditional Salaries
97 5,400,000.00 97 5,400, 000.00 9 540,000.00
NOTE: Pursuant to IC 6-1.1-12.i-5.1 (d) (2) the MANUFACTURING
EQUIPMENT R & D EQUIPMENT LOG15T DIST
EQUIPMENT IT EQUIPMENT
COST of the property is confidential. COST ASSESSED
UALUE COST ASSESSED
VALUE COST ASSESSED
VALUE COST ASSESSED
VALUE
Current values 1,192,000.00 366,208.00 t99,1H)0.00 82,532.00 334,120.00 108,216.00
Plus estimated values of proposed project 616,392.00 aoc,65a.oo 100,000.00 s5,ooo.oo
Less values of any property being replaced 0.00 0.00 0.00 0.00 0.00 0.00
Net estimated values upon completion of project t,soa,392.00 786,882.00 193,000_00 65,352.00 494,120.00 173,218.00
Estimated solid waste converted {pounds) 00=00
Otherbenaflts:
Please see attached wri#e up
Estimated hazardous waste converted (pounds) 0_00
I hereby certify that the representations in this statement are true.
Signature o rizsd re resentative Title Date signed {month, day, year)
Opera#ions Manager +~'~0~0~
~ Y
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards
adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5, provides for the following limitations as
authorized under IC 6-1.1-12.1-2.
A .The designated area has been limited to a period of time not to exceed
is
calendar years' (see below). The date this designation expires
B .The type of deduction that is allowed in the designated area Is Ilmlted to:
1. Installation of new manufacturing equipment;
2. Installation of new research and development equipment;
3. Installation of new logistical distribution equipment.
4. Installation of new information technology equipment;
^Yes ^N o
^Yes ^N o
^Yes ^N o
^Yes ~N o
C. The amount of deduction applicable to new manufacturing equipment is limlted to $
cost with an assessed value of
D. The amount of deduction applicable to new research and development equipment is limited to $ _~______ cost
with an assessed value of $ ~____~
E .The amount of deduction applicable to new logistical distribution equipment is Ilmlted to $ cost with an assessed value of
F. The amount of deduction applicable to new information technology equipment is limited to $
cost with an assessed value of
G. Other limitations or conditions (specify}
H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment and/or
new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for.
^ 1 year ^ 6 years "For ERA's established prior to July 1, 2000, only a
^ 2 years ^ 7 years 5 or 10 year schedule may be deducted.
^ 3 years ^ 8 years
^q years ^ 9 years
^ 5 years *' ^ 10 years "
Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits Is sufficient to justify the deduction described above.
Approved: (signature and title of authorized member}
Attested by:
Telephone number ~ Date signed (month, day, year)
Designated body
If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a Taxpayer is
entitled to receive a deduction to a number of years designated under tC 6-1.1-12.1-4.5
Passed and ado ted this
p ~~ day of 2009, by the Common Council of the City of
Jeffersonville, Clark County, Indiana.
President, Common Council
ATTEST:
~--~~
r
Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville, Indiana, this
day
of Y'i 2009.
This ~ day of ~ 2009
x
l