HomeMy WebLinkAbout2013-R-11 RESOLUTION NO. 2013-R- I
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR
PROPOSED 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 property taxes to be
assessed on a proposed expansion to be located at 5134 Loop Road, located in the City
of Jeffersonville, Clark County, Indiana; and
WHEAREAS, Steel Dynamics, 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
$5,780,000.00 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 98 individuals who will be employed can
reasonably be expected to result from the proposed described redevelopment of
rehabilitation.
3. That the estimate of the annual salaries of $8,567,140.00 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 within three years.
5. That the taxes lessened from the granting of this abatement shall be used for
manufacturing equipment up the purchase price of $5,780,000.00.
6. 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 from the proposed described redevelopment.
7. 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 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 Steel Dynamics, Inc., and that said
company shall be entitled to deduction for a period of 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 _ day of , 2013, by the Common Council of the
City of Jeffersonville, Clark County, Indiana.
Passed and adopted this k day of rn 013, by the Common Council of the
City of Jeffersonville, Clark i unty, Indiana.
, jellee/L.
President, Common Council
ATTEST:
liAt de/XLL (
Vicki Conlin, Clerk-T-reasurAw.
Presented by me as Clerk- Treasurer to the Mayor of the City of Jeffersonville,
Indiana, this day of Ii) 2013
Vicki Conlin, Clerk
This 7 da, of /r_ . 20 I3
Aid r
Mike Moore, Mayor
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR Steel Dynamics, Inc.
May , 2013
The council will grant a 10 -year abatement on $5,780,000.00 in real property 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.
STEEL DYNAMICS, INC.
Diana Maynard
Chief Financial Officer
.:. STATEMENT OF BENEFITS
PERSONAL PROPERTY FORM SB - 11 PP
i' State Form 517$4 (82112.11)
„
C ' : .4: the of Local GQvgmtnent Finance I�R VA Y NOTIC
The cost and any specific Indiv
salary information Is confidential, the
balance or t filing Is public record
INSTRUCTIONS: per IC 6-1.1- 12.1 -5.1 (c) and (d).
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 Econornic Revitalization Area. Otherwise this statement must be submitted
to the designating body BEFORE a person installs the new menufacturing 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 to after July 1, 1987,
and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (iC 6 -1.1 -12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manufacturing equipment
and /or research and development 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 file a certified deduction schedule with the person's personal properly return on a certified deduction schedule (Form
103 -ERA) with the township assessor of the township where the properly Is situated or with the county assessor If there is no township assessor for the
township. The 103 -ERA must be filed between March 1 and May 15 of the assessment year In which new manufacturing equipment and /or research and
development equipment and /or logistical distribution equipment and /or information technology equipment Is Installed and fully functional, unless a filing
extension has been obtained. A person who obtains a filing extension must file the form between March 1 and the extended due date of that year.
4. Properly owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF -1 / PP annually to show compliance with the
Statement of Benefits. (IC 6 -1.1- 12.1 -5.6)
5. The schedules established under IC 6 -1.1- 12.1- 4.5(d) and (e) apply to equipment installed after March 1, 2001, unless an alternative deduction schedule is
adopted by the designating body (IC 6- 1.1- 12.1 -17).
SECTION 1 TAXPAYER INFORMATION
--- .Namecoi taxpayer- ---- -- _,. :- .__...__ ____._. - . - - - - ........._. ...,....,......-.. ..,..__....- -.-.._._....- -
Steel Dynamics, Inc.
Address of taxpayer (number and street, clty,, slate, and ZIP code)
5134 Loop Road, Jeffersonville, IN 47130
Name of contact person Telephone number
Diana Maynard (812) 218 -1490
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number (s)
Common Council of the City of Jeffersonville
Location of property County OLGF taxing district number
5134 Loop Road, Jeffersonville Claris 039
Description of manufacturing equipment andlor research and development equipment ESTIMATED
and/or logistical distribution equipment andlor information technology equipment. START DATE COMPLETION DATE
additional sheets if necessary)
Manufacturing Equipment / 03/31/2014
replacement of existing drives, motors, and software
automation with upgraded cleaning section process R & 0 Equipment �'-'
equipment Lost Dist Equipment
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESUI:I' OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
98 8,567,140,00 98 8,567,140.00 0 0.00
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-6.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGf3T DIET IT EQUIPMENT
( ) () EQUIPMENT EQUIPMENT
COST of the property is confidential. COST ASSESSED C OST ASSE COST ASSESSED COST ASSESSED
VALUE VALUE VALUE VALUE
Current values
Pius estimated values of proposed project 5,780,000.00 ,'
Less values of any property being replaced
Net estimated values upon completion of project r �
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature of iirized representative Title 1j 11 Date signed (month, clay, year)
r' J) 1q ti 1- If'ty'ait5e 1
Page 1 of 2
FOR USE OF THE DESIGNATING BODY
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 0 -1.1- 12.1 -2.5, provides for the following limitations as
authorized under IC 0 -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 data this designation expires
Is
B . The type of deduction that Is allowed in the designated area Is limited to:
1, Installation of new manufacturing equipment; ❑ Yes ❑ N o
2, Installation of new research and development equipment; ❑ Yes ❑ N o
3. Installation of new logistical distribution equipment. ❑ Yes ❑ N o
4. Installation of new information technology equipment; ❑ Yes ❑ N o
��� t c . �s s t • e s , • } c • • s , t i c s •! ^t iI ^ t I • _ 43t wltl]_an_as805sed Value Of
.�rwrwwrr
D. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of
E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of
$ •
F. The amount of deduction applicable to new information technology equipment Is limited to $ coat with an assessed value of
C3. 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 for deduction on or after July 1, 2000, Is allowed for
❑ 1 year ❑ 6 years "` For ERA's established prior to July 1, 2000, only a
❑ 2 years ❑ 7 years 6 or 10 year schedule may be deducted.
❑ 3 years ❑ 8 years
❑ 4 years 0 9 years •
❑ 5 years ** ❑ 10 years
1, Did the designating body adopt an alternative deduction schedule per IC 6 -1,1- 12,1 -17? ❑ Yes 0 N
If yes, attach a copy of the alternative deduction schedule to this form.
Also we have reviewed the Information contained in the statement of benetits 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.
Appro : (signature and tiH r o thorized mgrnbor) Telephone number Bate el had (month, day, year)
Attested by: bestgneted 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 6.1,1- 12,1 -4,5
Page2of2
Proposed Equipment IJst
Deflector Roll #1 30,200
High Pressure Water Spray Tank 260,800
Deflector Roll 112 30,200
Support Structure 132,700
Deflector Roll #3 30,200
Spray Cleaning Tank 271,900
Brush Scrubber #1 295,600
Offline Reservoir for Brush #2 89,100
Wringer Rolls for Brush #2 143,400
Inner Tank for Brush #2 29,100
Cascade Rinse Tanks 485,100
Solution Circulation System 72,800
Fume Exhaust System 66,100
Bridle #2 131,900
Stainless Steel Tank Upgrade 121,500
Water Softener 14,378
Sumps 3,500
Pump Skids 135,000
Lechler Headers 112,200
Ductwork /mist elim 50,000
Zero Gravity Filters 100,000
Sonic Air 100,000
ABB Motors 725,141
ABB Drives 522,245
Spare motors, drives PLCs 465,246
Process Control Room Pemco 300,000
PLC Controllers - Rockwell 255,800
Wire for Motors 203,651
Sub Station and Switchgear 125,000
Generator Cat 500 Kw w /Transfer Switch 82,500
Motor Control Center with Drives and Starters for 78,800
Cleaning section
Control Wiring and Network Cable 65,000
Network Routers and switches 65,000
Pad and Structure for PCR 49,550
UPS for PLCs, Computers, Network 35,000
Computers and Servers 25,000
Blowers and Brakes for Motors 20,255
Instrumentation for Cleaning Section 14,850
Starters for Strip Dryer 12,959
Tray 12,028
Computers, Workstations 10,000
480 3P Distribution Center 5,680
5,779,383
H: \Abatement Equipment List 2013.xls
Page 2
Percent of Fringe Benefits 2930%