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HomeMy WebLinkAbout2010-R-21RESOLUTION N0.2010-R-/~~ RESOLUTION APPROVING STATEMENT OF BENEFIT FOR PURPOSED PERSONAL PROPERTY TAX ABATEMENT WHEAREAS, Southern Indiana Plastics, Inc., has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction of personal property taxes to be assessed on a proposed expansion to be located at 1606 Dutch Lane located in the City of Jeffersonville, Clark County, Indiana; and WHEAREAS, Southern Indiana Plastics, Inc., 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 redeveloped, an estimate of the annual salaries of these individuals, and an estimate of the value of the redevelopment; and WHEAREAS, 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. WHEAREAS, 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 find as follows: 1. That the estimate of the value of qualifying manufacturing equipment of $428,000 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 14 individuals who will be additionally employed can reasonably be expected to result from the proposed described redevelopment. 3. That the estimate of the annual salaries of $436,800 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 by December 31St, 2013. 5. That the taxes lessened from the granting of this abatement shall be used for manufacturing equipment up the purchase price of $428,000. 6. That all other information requested from Southern Indiana Plastics, Inc., 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 Southern Indiana Plastics, Inc. has agreed to the payment of a fee of 10% of the annual benefit of the abatement of 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 Southern Indiana Plastics, Inc., and that said company shall be entitled to a deduction for a period of FIVE (5) years for personal property improvements, pursuant to provisions of IC 6-1.1-12.4, 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 day o , 2010, by the Common Council of ~,~. the City of Jeffersonville, Common Council ATTEST: Peggy Wilder, Clerk-Treasurer Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville, Indiana, this, day of , 2010 Peggy Wilder, Clerk-Treasurer .U, This ~~ day o , 2010 /~ ~ ~ Thomas R Galligan, ayor ATTACHMENT TO THE STATEMENT OF BENEFITS FOR SOUTHERN INDIANA PLASTICS AUGUST 11, 2010 The council will grant 5-year abatement on $428,000 in personal property as allowed by state statute. This applies to qualifying new equipment order after the abatement is granted and is subject to the dollar limit specified on the SB-1. This abatement will only apply to equipment purchased and installed by December 31St, 2013 The company will provide jobs and salaries as specified in the SB-1 and any attachment thereto. The "salaries" on the SB-1 is agreed to mean base hourly wages, without overtime or benefits, times 2080 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 on the SB-1 within three years of the date of the granting of the abatement. The company understands that his abatement is being offered based upon those jobs and wages. If the company fails to substantially reach those numbers or fails to maintain those numbers over the life of the abatement, the council may as provided by law rescind this abatement. 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% as described in Indiana Code 6-1.1- 12.1-14. SOUTHERN INDIANA PLASTICS oger allwood President .-if e~ ~ STATEMENT OF BENEFITS r'~1 PERSONAL PROPERTY ~~~~ State Fonn 51764 (R f 1-06) ~~!-i Prescribed by the Department of Local Government Finance FORM SB-1 ! PP PRIVACY NOTICE Tha coat and any specific individual's salary informatan is oontidendah, the bal~ce of the filingg is public record IC 6-1.1-12.1-5.1 c and d . INSTRUCTIONS: 1_ This statement must be 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/or logistical distribution equipment and/or Information technology equipment for which the person wishes to claim a deduction. "Projects" planned or committed fo aAer Jufy 1, 1987, and areas designated afierJuly 1, 1987, require a STATEMENT OFBENEFfT5. (!C 6-1.1-12.1) 2. Approval o/the designatfng body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manuracl wring equipment and/or research and development equipment and/or logistical dtstribuilon equipment and/or information technology equipment, BEFORE a deduction may be approved 3. To obtain a deduction, a parson must file a cerii~ed deduction schedule with the person's persona! 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 filed between March 1 end May 15 of the assessment year in which new manulacfuring equipment and/or research and devetopmenf equipment and/or logisttcaf distributton equipment and/or information technology equipment is installed and fuNy functional, unless a filing extension has been obtained. A person who obtains a filing extension must fits fha form between March 1 and the extended due date of that year. 4. Property owners whose Statement of Bene/its was approved after June 30, 1991, must submit Form CF-1 I PP annually to show compliance with the Statement of Benefits. (fC 6-1.1-12.1-5.6) 5. The schedules established under IC 6-i.1-i2.1-4.5(d) and (e) apply to equipment installed aRer March i, 200?. Far equipment installed prior to March 2, ~nny thA schedules and statutes in eN'ect at the time shall continue fo appty. (IC 6-i. i-12.1-4.5(t) and (g)) •- • ~ Name of taxpayer SOUTHERN INDIANA PLASTICS, INC. Address of taxpayer (number and street, cifK state, and Z1Pcodej 1606 DUTCH LANE JEFFERSONVILLE IN 47130 Name of contact person ' telephone number ROGER SIiAI.LW00D I 2 0 Name of designating body Resolutbn number (s) Locafion of property County DLGF taxing district number 1606 DUTCH LANE, JEFFERSONVILLE, IN 47130 CLARK 10009 Description of manufacturing equipment andlar research and devetopmenf equipment ESTIMATED and/or logistical distribution equipment and/or information technology g~uiprJt~ill. START DATE COMPLETION DATE ft UU UUS l ZZ ddi i . , ona t q (use additional sheets if necessary) Leasing a . 2011 2013 with total amount being 50,000 sq. ft. for Toyota Manufacturing Equipment and Honda production components. Will need new R8 D Equipment machinerq and equipment a>id.software to increase capacity as well as hire additional staffing, Logist Dist Equipment managers and supervisors. IT Equipment Current number Salaries Number retained Salares Number adrFiiorrel Salaries 27 ;864,000 27 X864,000 14 800 -.•. . •-. NOTE: Pursuant io IC 6-1.1-12.1-5.t (d) (2) the MANUFACTURING R 8 O EQUIPMENT LOGIST DIST IT ECfU1PMENT EOUIPMENT E UIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values 2M I.SM 45 , 000 20 000 Pius estimated values of proposed pro)ect 414 500 I3 500 Less values of any property being replaced Net estimated values upon completion of ptrojeCl ~ • ~ ~ • -• r Estimated solid waste converted (pounds} -0- Estimated hazardous waste converted (pounds) -0- Other benefits: • ~ I hereby certify that the representations in this statement are true. ~ Signature of autttoriz sentative Title Date signed (month, day, year} RESIDENT 6 O 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 6-1.7-12.1-2.5, 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 .-~ calendar years " {see below). The date this designation expires is 1~`~~"fig B .The type of deduction that is allowed in the designated area is limited to: dYe s ^ N o 1. installation of new manufacturing equipment; 2. InstaNation of new research and development equipment, ^ Ye s ^ N o 3. Installation of new logistical distribution equipment. 4. Installation of new information technology equipment; Yes ~ N o y~~_ cost with en assessed value of C. The amount of deduction applicable to new manufacturing equipment is limited to $ E .The amount of deduction applicable to new logistical distribution equipment is limited to $ D. Tha amount of deduction applicable to new research and development equipment is limited to $ with an assessed value of $ __~~_~__________~ `'' cost '-" cost with an assessed value of $ ~~ { F. Tha amount of deduction applicable to new information technology equipment is limited to $ l ~ J d c7 cost with an assessed value of $ P3~5z~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 and/or new information technology equipment installed and first claimed eligible far deduction on or after Juty 1, 2000, is allowed for. ^ 1 year ^ 6 years "For ERA s established prior to July 1, 2000, ~ht a ^2 years ^7 Years 5 or 10 year schedule may tie deducted. ^3 years ^8 years 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. Telephone number Date sued (month, day, year} Oesignaled body ~vp _p e titledtlo receive adaduotion to atnumber of yea des gnated under lC 6-1A.1 12 14.5 alization area, it does not limit the length of time a taxpayer s