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.
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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.
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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
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May 14 2012
Mr Les D Merkley
500 Quartermaster Court
Jeffersonville IN 47130 r ,
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Lmerkle cit ofjeff..net
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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.
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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
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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 ! .
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President, Common Council
ATTEST:
( WAX&
Peggy Wilder, Clerk- Treasurer
Presented by me as Clerk- Treasurer to the Mayor of the City of Jeffersonville,
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Indiana, thisAt day of , 2010
Peggy Wilder, Clerk- Treasurer
At This day of f A-l"1 010
Thomas R. Galliga , , Mayor
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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 ;
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