HomeMy WebLinkAbout2010-R-12RESOLUTION N0.2010-R- I~-
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR
PURPOSED REAL AND PERSONAL PROPERTY TAX ABATEMENT
WHEAREAS, Steel Dynamics, Inc., has petitioned the Common Council of the
City of Jeffersonville, Indiana, for a deduction in real and personal propez•ty taxes to be
assessed on a proposed expansion to be located at 5134 Loop Road located in the City of
Jeffersonville, Clark Coiuzty, Indiana; and
WHEAREAS, Steel Dynamics, Inc., has submitted a Statement of Benefits on
the fozxn 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 redeveloped, an estimate
of the annual salaries of these individuals, and an estimate of the value of the
redevelopment; and
WHEAREAS, the Cozmnon Council of the City of Jeffersonville has previously
determined that the azea 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.
WHEAREAS, the Conunon Council has reviewed the Statement of Benef is
submitted herein, and attaches and incorporates the Statement of Benefits submitted
herein to this Resolution.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City
of Jeffersonville, Indiana, that it specifically and affirmatively find as follows:
1. That the estimate value of the qualifying real estate improvement of $2,400,000-
$3,000,000 is reasonable for projects of the nature described in the Statement of
Benefits submitted by the company.
2. That the estimate of the value of qualifying manufacturing equipment of
$400,000-$500,000 is reasonable for projects of the nature described in the
Statement of Benefits submitted by the company.
3. That the estimate of the ntunber of 4-5 individuals who will be additionally
employed can reasonably be expected to result from the proposed described
redevelopment of rehabilitation.
4. That the estimate of the annual salaries of $270,000 of those individuals who will
be added can be reasonably expected to result from the proposed described
redevelopment or rehabilitation.
5. That the purchase and installation of the qualifying manufactw~ing equipment
must be completed within three (3) years from the date of the granted abatement.
6. That the taxes lessened from the granting of this abatement shall be used for
manufacturing equipment up to the purchase price of $500,000, and for
improvements in real estate up to the value of $3,000,000.
7. That all other information requested from Steel Dynamics, Inc., has been
submitted, and the benefits described in such information can be reasonably
expected to result fiom the proposed described redevelopment.
8. That the totality of benefits for said redevelopment is sufficient to justify the
deduction.
9. That Steel Dynamics, Inc. has agreed to the payment of a fee of 10% of the arulual
benefit of the abatement of the Jeffersonville City Council aimually 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 Steel Dynamics, Inc., and that said
company shall be entitled to deduction for a period of TEN (10) years for
improvements to real property, pursuant to provisions of I.C. 6-1.1-12.1-3(d)
and 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 Auditor's office.
This Ordinance shall be in full force and effect from and after its passage and
approval.
Passed and adopted this /7 day of /'~' ZO10, by the Common Council of
the City of Jeffersonville, Clark
Common Council
ATTEST:
LK.f~~U
Peggy Wilder, Clerk-Treasurer
Pj•esented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville,
Indiana, this ~~~day of , 2010
~.c'u~J
Peggy Wilder, Clerk-Treasurer
This day of O1
Thomas R. Galligan ayor
STATEMENT OF BENEFITS
REAL ESTATE IMPROVEMENTS
Stato Fomt 51767 (R2 / i-07)
~ ~ »` °' Prescribed by the Department of Local Government Finance
This statement is being completed for real properly that qualifies under the following Indiana Code (check one box):
^ Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4)
^ Eligible vacant building (IC ti-1.1-12.1-4.8)
20 11 RAY 20 12
FORM SB-1 /Real Property
INSTRUCTIONS:
1. This statement must he submhted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from rho applicant in making its decision about whether to designate an Economic Revltelizatlon Area. Othorwise fhls statement must he
submitted to the designating body BEFORE the +edevelopment or rehabilitation of teal property for which the person wishes to claim a deduction.
'Projects" planned or committed to alter Jtrly 1, 1987, and areas designated after July 1, 1987, require a S7ATEMEIVT OF BENEFITS. (fC G-1. f-12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment or rehabilitation,
BEFORE a deduction maybe approved.
3. To obtain a deduction, application Form 322 ERA/RE or Form 322 ERA/VBD, Whichever is applicable, must be filed with the CountyAuditor by the later
of.• (1) May f0; or (2) fhiriy (30) days aRer the notice ofadditiort to assessed valuation or new assessment is mailed !o the properly owner at the address
shown on the records of the township assesso>:
4. Properly ow~ters whose Statement of Benefits was approved aRer June 30, 1991, must attach a Forrn CF-1/Real Properly annually to the application to
show compliance with the Statement ofi3enefits. (lC 6-1.1-f2.1-5.1(h) and IC 6-i.1-12.1-5.3(j)J
5. The schedules established under IC 6-1. f-12.1-4(d) for rehabilitated properly and under IC 6-1.1-12.1-4.8(1) for vacant buildings apply to any statement
of benefits approved on or aRer July 1, 2000. The schedules eh`ective prior to July 1, 2000, shat! carttinue to apply to a statement of benefits fried before
July 1, 2000.
to of taxpayer
Steel Dynamics, inc.
Address of taxpayer (number and streef, city, state, and Z(P code)
34 Loop Road, Jeffersonville, IN 47130
ie of cornact person
Diana Mavnarri Ar•rni.r,}onr
Telephone number
E-mall address
--- t°'~l G 1°-'`~ac Diana-Ma nerd sfld.com
Name of designating body
Common Council of the City of Jeffersonville, IN Resolution rnrmber
Location of property
5134 Loop Road
Jeffersonville
IN Caurtt
y
DLGF taxing district number
,
,
OesaipGon of real property improvements, redevelopment
ar rettabilitatiort (
dditi Clark 039
,
trse a onal sheets if necessary)
E
ti
d
canstntction of new coil storage building s
mate
start date (month, day, year)
06/01/2010
Estimated completion date (ntorNlr, day, year)
osrol/2a1o
Current number Salaries Number retained
90
00 Salaries
Number additional Salaries
.
$6,575,000.00 90.00
$6,600,000.00
4.00 ~-S. oD $270
000
00
NOTE; Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the COST of the property • ,
.
REAL
ESTATE IMPROV
M
is confidential. . E
ENTS
Current values
COST
ASSESSED VALUE
Plus estimated values of proposed project bb v~r .. ~ add ~
less values of any property being replaced
Net estimated values upon completion of project
Est(mated solid waste converted (pounds) Estimated hazardous waste converted
(pounds)
Other benefits
•
hereby certify that the representations in this statement are true. •
Signalur augtorized r resentative Idle
bate signed (month, day, year)
Plant Manager 04/15/2010
Done i ../ ~
~~~ ~.
y ~ o .., ..
We have reviewed our prior actions relating to the designation of this Economic Revitalization Area and find that the applicant meets the general statxlards
adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1,1-12.i, provides for the foNowing limitations:
A. The designated area has been limited to a period of time not to exceed calendar years * (see below). The date this designation
expires Is --~
B. The type of deduction that is allowed in the designated area is limited to
1. Redevelopment or rehabilitation of real estate improvements Yes ^ o
2. Residentially distressed areas ^ Yes ~~o
3. Occupancy of a vacant building ^ Yes (~'No
C. The amowit of the deduction applicable is limited to S 3~ 000, 8 pO
D. Other limitations or conditions fsaocftvt
E. The deduction is allowed for J b years* (see below).
We have also reviewed tl~e 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.
of a ,prized member of designating body) Telephone number Dafe signed (month, dey, year)
by (signature and tills of attester) 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 IC 6-1.12-12.1-4.
A. For residentially distressed areas, the deduction period may not exceed five (5) years.
8. For redevelopment and rehabilitation or real estate improvements:
i. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period Is limited to three (3), six {ti), or ten (10) years.
2. If the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years.
C. For vacant buildings, the deduction period may not exceed two (2) years.
Page 2 of 2
tNe have reviewed our prior actions relating to the designation of this economic revilalizallon area and find that the applicant meets the general standards
adopted to 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 des[gnated area has been limited to a period of time not !o exceed 'P~ calendar years ' (sse below). The date this designation expires
is ---.
l3 . The typo of deduction that is allowed In the designated area is limited to:
1. Installation of new manufacturing equipment; Yes Q fl o
2. Installation of new research and development equipment; ^ Ye s ~ ~1 0
3. Installation of now log(stical distribution equipment. ^ Ye s N o
4. Installation of now information technoloyy equipment; ^ Ye s ~N o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ SOOT (~ 8 U cost with an assessed value of
$ 500 ~y ~
p. The amount of deduction applicable to new research and development equipment is limited to $ ___~~/Q_________ cost
wifh an assessed value of $ ____ /V ,q .
-LI-----------
E .The amo nt of deduction applicable to new logistical distribution equipment is limited to $ /f/ ~ cost with an assessed value of
$ ~. ,
F. Tlie amou of deduction applicable to new information technology equipment is limited to $ ,y~'T cost with an assessed value of
$ __.
G. Other limitations or conditions {specify). ~ " /~
ti. 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 i, 2000, Is allowed for:
^ 1 year ^ 6 years '" For ERA's established prior to July 1, 2000, o~ a
^2 years ^ 7 years 5 or 10 year schedule maybe deducted.
^ 3 years ^ S years
^ years ^ 9 years
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.
Approvetl: a authorized member) Telephone number Oate signed (rnonlh, day, year)
S• J~
Attest y: ~ M~ signaled body iy
1 it ~ )'l/)'~'v /L~[.L/Ytc 1
' If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of lime a taxpayer is
entitled to receive a deduction to a number of years designated under iC 6-1.1-12.1-4.5
STATEMENT OF BENEFITS
~ ~ ~ ` ' PERSONAL. PROPERTY
State Fam 5176A (R / 1.08)
[ ° `~ Prescrlbad by the Department of L.oca1 Government Finance
C FORM SB-1 I PP
PRIVACY NOTICE
Tlx+ cost and any specific Individual's
salary hifomraUon Is conAdential; the
balance of the fillsg Is public retard
r IC 6-1.1-12.1.5.1 c and d .
INSTRUCTIONS:
1, ThJs statement must be submitted to the body designating the rcanornlc Revilatizatlon Area prior to fhe public hearing If the designating body requires
!n(amratlon from U+e applicant in making its declslon aba[rt whether to deslgrtate an Econornlc Revitalization Area, Otherwise this statement must be submitted
to the deslgnatbtg body BEFORE' a person histalls the new manufackrring equipment ancUorrosearch and development equipment, and/orlogistical distribution
equlprrtent and/or~ Intonnation technology equipment for which the parson wishes fo claim a deduction. f~rojects" planned a~ committed to alter July 1, 1987,
and areas designated after July 1, 1987, require a STATEM!_NT OF BENEFITS, (1C 6-1.1-12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must bo obtained prior to insteRation of the new manufacturing equipment
and/or research and davalopme[tt 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 Tito a certified deduction schedule with fhe parson's personal property return on a certified deduction schedule (Form
103-ERA) with the township assessor of the township where the property is situated. Tha 103-ERA must be tiled between March 1 and May 15 of the
assessment year in which saw manufacturing equipment and/or research and development equipment and/or togisfical distrct<rtion equipment and/or
information technoloyy equipment is installed and fully functional, [rnless a tiling extension Etas bean obtained. A person who obtains a filing extension rn[rst
file the form between March 1 and the extended due date of that year,
4. Property owners whose Statement of Benefits was approved alter June 30, 1991, must submit Form CF-1 / PP annually to show compliance with the
Statement of Benefrts. (!C 6-1.1-12. f-5.6)
5. The schedules established under !C 6-1, t-12.1-4.5(d) acrd (e) apply to equipment installed aRer March 1, 2001. For equipment installed prior to March 2,
200?, the schedules and stat[rtes in effect at the time shat! contin[re to apply. (IC 6-1.1-12.1-4.5(t) and (gJ)
• •' •
Name of taxpayer
Steel Dynamics, Inc.
Address of Taxpayer (number and street, city, stale, and Z!P code)
5134 Loop Road, Jeffersonville, IN 47130
Name of contact person Telephone number
Diana Maynard, Accountant (812) 218-1490
Name of designating body Resolution number {s)
Common Council of the City of Jeffersonville, IN
Location of property County DLGF taxing district number
5134 Loop Road, Jeffersonville, IN Clark 039
Description of manufacturing equipment and/or research and development equipment ESTIMATED
and/or (ogistlca) distribution equipment and/or information technology equipment. sTART DATE COMPLETION OATS
(use add tional sheets if necessary)
Manufacturing Equipment 06/01/2010 08/01/2010
fork lifts, packaging machines, and other equipment used
for handling and storing coils in storage building R & D Equipment
Logisl Dist Equipment
IT Equipment
Current number Salaries Number refalned Salarlas Number additional Salaries
90 6,575,000.00 90 6,600,000.00 4 -- 5 270,000.00
NOTE: Pursuant to IC 6.1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST tT EQUIPMENT
EQUIPMENT E UIPMENT
COST of the property Is con(Idential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED
VALUE
VALUE VALUE VALUE
Current values
Plus estimated values of proposed project o0 otx~ ~-
Less values of any property being replaced
Net estimated values upon completion of project
~ • ~~ ra• -• ~:
Estimated solid waste converted (pounds) Estimated hazardous waste converted (po[rnds)
Other benefits:
• •
I hereby certify that the representations In this statement are true.
Signature f authorized represenlatlye Tllle Dale signed (month, day, year)
Plant Manager 04115/2010
v v
We have reviewed our prior actbns relating to the designation of this economic revitalizallon 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 underlC 6-1,1-12.1-2.
A ,The designated area has been limited to a period of time not to exceed ___. calendar years ' (see below). The date This designation expires
is
B .The typo ofdeduction that is allowed in the designated area is limited to: ~f Yes ^ fl o
1. Installation of new manufacturing equipment;
2. Installation of new research and development equipment; ^ Ye s Q o
3. Installation of now logistical distribution equipment. ^ Y e s ~ o
4. Installation of new information technology eyuiprnent; ^ Ye s Q"N o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ 5001 (~ 9 b cost with an assessed value of
$ 5yo, ~v v
d. The amo t of deduction applicable to new research and development equipment is limited to $ ___!V~/]__ ___ cost
with an assessed value of $ ____ /1y~r~__________•
E ,The amo nt of deduction applicable to new logistical distribution equipment is limited to $ ~/ cost with an assessed value of
$ Nq
F. The amou of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of
$ -• N~~
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 andlor
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 ERAs established prior to July 1, 2000, oni a
^ 2 years ^ 7 years 5 or 10 year schedule may be deducted.
^ 3 years ^ 8 years
^ years ^ 9 years
[[~& years "' ^ 10 years "
Also we have reviewed the in[ormation 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: a a++lhorized rnember) Telephone number Oale signed (month, day, year)
S. ~~
e„e~,o „ t~signated body ~
. U
If the designating body limits the time Period during which an area is an economic revitalization area, it does not limit the length of lime a taxpayer is
entitled to receive a deduction to a number of years designated under iC 6-1.1-12.1-4.5
Southern
v{'~e Indiana
Chamber & Economic Development
Indiana Property Tax Estimator
4100 Charlestown Road New Albany, IN 47150
Phone: 812.945.0266 Fax:812.948.4664 www.1si.org
Clark County, JEFF CITY-UTICA TWP-OFW, Tax District No: 10039
Tax Rate (2AU9): $2.2336
Project Name: Steel Dynamics, Inc.
REAL PROPERTY
Cost of Real Property: $3,000,000.00
With Abatement Without Aba tement
Net Circuit Net Estimated Tax
Property Circuit Breaker Properly Property Breaker Tax Property Abatement
Taxes Tax Credit Taxes Taxes Credit Taxes Savings
ear 1 $0 $0 $0 $67,008 $0 $67,008 $67,008
ear 2 $3 350 $0 3 350 $67 008 0 $67 008 $63 658
ear 3 $13,402 $0 $13,402 $67,008 $0 $67,008 $53,606
ear 4 $23 453 $0 $23 453 $67 008 $0 $67,008 $43 555
ear 5 $33,504 $0 $33,504 $67,00 $0 $67,008 $33,50
ear 6 $40 205 $0 40 205 $67 008 $0 $67 008 $26 803
ear 7 $46,906 $0 $46,906 $67,008 $0 $67,008 $20,102
ear 8 $53 606 $0 $53 606 $67 008 $0 $67 008 $13,402
ear 9 $60,307 $0 $60,307 $67,008 $0 $67,008 $6,701
ear 10 $63 658 0 $63 658 $67 00 $0 $67 008 $3 35
Totals $338 390 $0 $338,391 $670,08 $O $670,080 $331 689
Note: The rates used in the tax abatement calculator are 2009 rates. Additional tax districts will be added
when DLGF certifies their 2009 rates.
Southern
U{'Je Indiana
Chamber & Economic Development
Indiana Property Tax Estimator
4100 Charlestown Road New Albany, IN 47150
Phone: 812.945.0266 Fax:812.948.4664 www.1si.org
Clark County, JEFF CITY-UTICA TWP-OFW, Tax District No: 10039
Tax Rate {2009): $2.2336
Project Name: Steel Dynamics, Inc.
PERSONAL PROPERTY
Cost of Personal Property: $500,000.00
With Abatement Without Abatement Estimated
Property
Taxes Circuit
Breaker
Tax Credit Net
Property
Taxes
Pro ert Taxes Circuit
Breaker Tax
Credit
Net Property
Taxes Tax
Abatement
Savings
ear 1 $0 $0 $0 $4,467 $0 $4,467 $4,467
ear 2 $1,251 $0 $1,251 $6,254 $0 $6,254 $5,003
ear 3 $1,876 $0 $1,876 $4,691 $0 $4,691 $2,814
ear 4 $2,144 $0 $2,144 $3,574 $0 $3,574 $1,430
ear 5 $2,680 $0 $2,680 $3,350 $0 $3,350 $670
Totals $7,952 $O $7,95 $22,336 $0 $22,336 $14,384
Note: The rates used in the tax abatement calculator are 2009 rates. Additional tax districts will be added when DLGF
certifies their 2009 rates.