HomeMy WebLinkAbout2010-R-25RESOLUTION N0.2010-R-~
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR
PROPOSED OF REAL AND PERSONAL PROPERTY TAX ABATEMENT
WHEAREAS, Sphere One, Inc., has petitioned the Common Council of the
City of Jeffersonville, Indiana, for a deduction in real and personal property taxes to be
assessed on a proposed expansion to be located at 5140 Maritime Road located in the
City of Jeffersonville, Clark County, Indiana; and
WHEAREAS, Sphere One, 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 value of the qualifying real estate improvement of $800,000 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
$2,825,000 is reasonable for projects of the nature described in the Statement of
Benefits submitted by the company.
3. That the estimate of the number of 25 individuals who will be employed can
reasonably be expected to result from the proposed described redevelopment of
rehabilitation.
4. That the estimate of the annual salaries of $800,000 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 manufacturing equipment
must be completed within three years.
6. That the taxes lessened from the granting of this abatement shall be used for
manufacturing equipment up the purchase price of $2,825,000, and for
improvements in real estate up to the value of $800,000.
7. That all other information requested from Sphere One Inc., has been submitted,
and the benefits described in such information can be reasonably expected to
result from the proposed described redevelopment.
8. That the totality of benefits for said redevelopment is sufficient to justify the
deduction.
9. That Sphere One 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 Sphere One 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 thisa~~day of4~' 2010, by the Common Council of
the City of Jeffersonville, Clark
t, Common Council
ATTEST:
Peggy Wilder, Clerk-Treasurer
Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville,
Indiana, this~l day ofc~~~~W, 2010
Peggy Wilder, Clerk-Treasurer
This ~~ day of f~~~010
a
Thomas R. Galliga ,Mayor
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR SPHERE ONE, INC.
September 20, 2010
The council will grant a 10-year abatement on $800,000 in real property and 5-year
abatement on $2,825,000 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 within 3 years from date of passage.
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.
SPHE C.
an Ric ards
Chief Financial Officer ;