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HomeMy WebLinkAbout2012-R-09 RESOLUTION NO. 2012-R- 64 BEFORE THE COMMON COUNCIL FOR THE CITY OF JEFFERSONVILLE, INDIANA RESOLUTION AMENDING STATEMENT OF BENEFIT FOR PROPOSED REAL AND PERSONAL PROPERTY TAX ABATEMENT WHEREAS, the Common Council for the City of Jeffersonville on September 20, 2010 adopted Resolution No 2010-R-25 whereby statement of benefit for proposed real and personal property tax abatement was approved (see attached Exhibit A) for Sphere One, Inc. ("Sphere"); and WHEREAS, subsequent to the adoption of Resolution No. 2010-R-25, Sphere has since changed its formal name from Sphere to Arctic Minerals, LLC and JKBR, LLC; and WHEREAS, the new entities were formed for purposes of operating the Sphere in the State of Indiana; and WHEREAS, Arctic Minerals, LLC now owns the personal property located at 5140 Maritime Road in Jeffersonville, Indiana which was the subject of Resolution No. 2010-R-25; and WHEREAS, JKBR, LLC now owns the real property located at 5140 Maritime Road in Jeffersonville, Indiana which was the subject of Resolution No 2010-R-25; and WHEREAS, for purposes of a reduction in real and personal property taxes to be assessed at 5140 Maritime Road in Jeffersonville Indiana, it is necessary to amend Resolution No 2010-R-25 and the Statement of Benefits for Sphere One, Inc. to include both Arctic Mineral, LLC and JKBR, LLC; and WHEREAS, that all other provisions of Resolution No. 2010-R-25 and the Statement of Benefits shall remain unchanged. NOW, THEREFORE, BE IT RESOLVED by the Common Council for the City of Jeffersonville, Indiana, that Resolution No. 2010-R-25 and the Statement of Benefits is hereby amended to include the entities Arctic Minerals, LLC and JKBR, LLC; and BE IT FURTHER RESOLVED, that the the Common Council for the City of Jeffersonville, Indiana, hereby approves the amended Statement of Benefits originally filed by Sphere to include the entities Arctic Minerals, LLC and JKBR, LLC; and BE IT FURTHER RESOLVED, by the Common Council for the City of Jeffersonville, Indiana, that JKBR, LLC shall be entitled for a deduction for the remainder of the original period of TEN (10) years for improvements to real property, pursuant to I.C. 6 -1.1- 12.1 -3(d) and Arctic Minerals, LLC shall be entitled for a deduction for the remainder of the original FIVE (5) years on qualifying personal property pursuant to I.C. 6 -1.1 -12.4 for ers n p o al property, with the timely filing and perfection of the amended Statement of Benefits with the Clark County Auditor's office; and BE IT FUTHER RESOLVED, that Resolution No 2010 -R -25 is hereby amended consistent with the terms set forth above and that all other provisions of Resolution No. 2010 -R -25 not in direct conflict with said terms shall remain unchanged. k.. This Resolution shall be in full force and effect from and after its passage and approval. Passed and adopted on this day of June, 2012, by the Common Council for the Cit y of Jeffersonville, Indiana. 1 ` Ed Zastwany ' ' President, Common • uncil ATTEST: ift.4A Sca<AL Vicki Conlin, Clerk This Resolution presented by me as Clerk to the Mayor of Jeffersonville, Indiana at 9 :30 m. on this day of J Lc/x A- , 2012. 1;1.22.L Vicki Conlin, Clerk This Resolution signed and approved by me the Mayor of Jeffersonville, Indiana at 9• a. m. on this J day of ja.Au_ J Mike Moore Mayor This Resolution vetoed by me the Mayor of Jeffersonville, Indiana at m. on this day of , 2012. Mike Moore, Mayor Prepared by: Les D. Merkley City Attorney l =+ 4 1 Xrewrrri+.ur^.msns:sls wHH tl4IIfvrc.++w pttyssrras nr. vcrnrirt� C Q m an y 1n . May 14 2012 Mr Les D Merkley 500 Quartermaster Court Jeffersonville IN 47130 r , rr Lmerkle cit ofjeff..net Y@ Y J fi Subject PROPERTY 5140 Maritime Road Jeffersonville Indiana 47130 Dear Les, Thanks for meeting with Ryan and myself on Friday May 11. As we discussed the original Resolution no 2010 -R -25 dated 9 -20 -2010 was filed under Sphere One, Inc. At that point in time we had not established the operating entities for the Jeffersonville Indiana Project. Subsequent to acquiring the original building we have form two LLC's . Phycial Address Arctic Minerals LLC PERSONAL PROPERTY OWNER 5140 Maritime Road Jeffersonville Indiana 47130 JKBR LLC REAL PROPERTY OWNER 5140 Maritime Road Jeffersonville Indiana 47130 We are respectfully asking to amend the original document to reflect the addition of the above 2 companies. Please let me know if you have further questions. Brian L Richards brichards @kishcompany.com Vice President 8020 Tyler Blvd Suite 100 Mentor Ohio 44060 440 - 205 -9970 RESOLUTION NO. 2010-R- 3 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 n 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 revi p iously 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" 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 Y 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 ualif ' { q ymg 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 uali q Eying 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, nutted, and the benefits described in such information can be reasonably expected Y p 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 thisab of44i , 2010, by the Common Council of the City of Jeffersonville, Clark Co io s is ! . r I� President, Common Council ATTEST: ( WAX& Peggy Wilder, Clerk- Treasurer Presented by me as Clerk- Treasurer to the Mayor of the City of Jeffersonville, • j.. } • . ' r Indiana, thisAt day of , 2010 Peggy Wilder, Clerk- Treasurer At This day of f A-l"1 010 Thomas R. Galliga , , Mayor V -- } ' - . • , 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 ! . '_, I.. C. — : 'an Ric cards Chief Financial Officer ; t 4 '