HomeMy WebLinkAbout2013-R-12 RESOLUTION NO. 2013-R- ig.
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR
PROPOSED REAL AND PERSONAL PROPERTY TAX ABATEMENT
WHEAREAS, Heritage Hardwoods of Kentucky, 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 1507
Production Road, located in the City of Jeffersonville, Clark County, Indiana, and
WHEAREAS, Heritage Hardwoods of Kentucky, 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 property improvement of
$1,300,000.00 is reasonable for projects of the nature described in the Statement
of Benefits submitted by the company.
2. That the estimate of the value of the qualifying manufacturing equipment
improvement of $300,000.00 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 77 individuals who will be employed can
reasonably be expected to result from the proposed described redevelopment or
rehabilitation.
4. That the estimate of the annual salaries of $359,128.00 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 $300,000.00, and for
improvements in real estate up to the value of $1,300,000.00.
7. That all other information requested from Heritage Hardwoods of Kentucky, 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 Heritage Hardwoods of Kentucky, 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 Heritage Hardwoods of Kentucky, 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 this 4 day of rn at 2013, by the Common Council of
the City of Jeffersonville, Clark County, Indiana.
.4 /44. Ail %. A■%
President, Common Council
ATTEST:
(-- 61" &SOL la_
Vicki Conlin, Clerk - r-- ./
Presented by me as Clerk- Treasurer to the Mayor of the City of Jeffersonville,
Indiana, this 7 day of // , 2013
_Zeie; d2
Vicki Conlin, Clerk -fir C45
This 7 s ay of k X013
►J ,4k h a
Mike oore, Mayor
n STATEMENT OF BENEFITS
•
�..^ ' REAL ESTATE IMPROVEMENTS 20 PAY 20
'r"
+ A , ' " State Form 51767 (R3 / 12 -11) FORM SB -1 / Real Property
° ;41 4' ,. Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
❑ Redevelopment or rehabilitation of real estate improvements (IC 6 -1.1- 12.1 -4)
❑ Eligible vacant building (IC 6 -1.1- 12.1 -4.8)
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 the redevelopment or rehabilitation of real property 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. (!C 6 -1.1 -12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment or rehabilitation,
BEFORE a deduction may be approved.
3. To obtain a deduction, application Form 322 ERA/RE or Form 322 ERA/VBD, Whichever is applicable, must be filed with the County Auditor by the later
of: (1) May 10; or (2) thirty (30) days after the notice of addition to assessed valuation or new assessment is mailed to the property owner at the address
shown on the records of the township assessor, if any, or the county assessor.
4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF -1 /Real Property annually to the application to
show compliance with the Statement of Benefits. (IC 6- 1.1- 12.1- 5.1(b) and iC 6 -1.1- 12.1- 5.30))
5. The schedules established under IC 6 -1.1- 12.1 -4(d) for rehabilitated property and under IC 6 -1.1 -12.1- 4.8(1) for vacant buildings apply to any statement
of benefits approved on or after July 1, 2000, unless an alternative deduction schedule is adopted by the designating body (IC 6 -1.1- 12.1 -17). The
schedules effective prior to July 1, 2000, shall continue to apply to a statement of benefits filed before July 1, 2000.
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer
1507 Production Road LLC for Heritage Hardwoods of Kentucky, Inc.
Address of taxpayer (number and street, city, state, and ZIP code)
1507 Production Road, Jeffersonville, IN 47130
Name of contact person Telephone number E -mail address
Maurice Smith, CFO (502) 558 -5073 msmith
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
Jeffersonville City Council
Location of property County OLGF taxing district number
1507 Production Road, Jeffersonville, IN 47130 Clark 10009
Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) Estimated start date (month, day, year)
Increased customer demand and product diversity requires an increase in climate controlled 04/01/2013
manufacturing space, process equipment, warehouse space, and additional personnel to Estimated completion date (month, day, year)
nu finished mods. 11 03/15/2013
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
63.00 $2,112,953.00 63.00 $2,112,953.00 14.00
$359,128.00
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6 -1.1- 12.1 -5,1 (d) (2) the COST of the property REAL ESTATE IMPROVEMENTS
is confidential. COST ASSESSED VALUE
-
Current values 673,500.00
Plus estimated values of proposed project 1.300,000.00 1,300
Less values of any property being replaced 0.00 0.00
Net estimated values upon completion of project 1.973.500.00
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.
Signalureeo uthorized representative Title Date signed (month, day, year)
Page 1 of 2 J ;5) 4,) / 3
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 6 -1.1 -12.1, provides for the following limitations:
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
B. The type of deduction that Is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements ❑ Yes ❑ No
2. Residentially distressed areas ❑ Yes ❑ No
3. Occupancy of a vacant building ❑ Yes ❑ No
C. The amount of the deduction applicable Is limited to $
D. Other limitations or conditions (specify)
E. The deduction is allowed for years* (see below).
F. Did the designating body adopt an alternative deduction schedule per IC 6 -1.1- 12.1 -17? ❑ Yes ❑ No
If yes, attach a copy of the alternative deduction schedule to this form.
We have also 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.
Approved (signature and / title of authorized member of design ing body) Telephone number Date signed (month, day, year)
(,�� . 1 ' , '/a/. 4 i ( ` v ) ' i. ' i�1 — 5S q3 3/bid
Attested by (signature and title of attester) Designated 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- 1.12- 12.1 -4.
A. For residentially distressed areas, the deduction period may not exceed five (5) years.
B. For redevelopment and rehabilitation or real estate improvements:
1. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years.
2. If the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years.
C. For vacant buildings, the deduction period may not exceed two (2) years.
Page 2 of 2
• 1A* STATEMENT OF BENEFITS
� FORM SB - 1 / PP
4 R P ERSONAL PROPERTY
` � Y' .. . State Form 51764 (R2/12-11)
' Prescribed by the Department of Local Government Finance PRIVACY NOTICE
+ern
The cost and any specific individual's
salary information is confidential; the
balance of the filing is public record
per 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 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 property return on a certified deduction schedule (Form
103 -ERA) with the township assessor of the township where the property 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. Property 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. (/C 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 •
Name of taxpayer
Heritage Hardwoods of Kentucky, Inc.
Address of taxpayer (number and street, city, state, and ZiP code)
1507 Production Road, Jeffersonville, IN 47130
Name of contact person Telephone number
Maurice Smith, CFO (502) 558 - 5073
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number (s)
Jeffersonville City Council
Location of property County DLGF taxing district number
1507 Production Road, Jeffersonville, IN 47130 Clark 10009
Description of manufacturing equipment and /or research and development equipment ESTIMATED
and /or logistical distribution equipment and /or information technology equipment.
(use additional sheets if necessary) START DATE COMPLETION DATE
Increased customer demand and product diversity requires an Manufacturing Equipment 04/01/2013 09/30/2015
increase in climate controlled manufacturing space, process R & D Equipment
equipment, warehouse space, and additional personnel to
produce finished goods. See attached addendum for list of Logist Dist Equi
equipment. IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT ,
Current number Salaries Number retained Salaries Number additional Salaries
63 2,112,953.00 63 2,112,953.00 14 359,128.00
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6 - 1.1 - 12.1 - 5,1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT
( ) () EQUIPMENT EQUIPMENT
COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED
VALUE VALUE VALUE VALUE
Current values 708,790.00
Plus estimated values of proposed project 300,000.00 300,000.00
Less values of any property being replaced 0.00 0.00
Net estimated values upon completion of project 1,008,790.00
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 authorized representative Title Date signed (month, day, year)
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 6 -1.1- 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
B . The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment; ❑ Ye s ❑ N o
2. Installation of new research and development equipment; ❑ Ye s ❑ N o
3. Installation of new logistical distribution equipment. ['Yes ❑ N o
4. Installation of new information technology equipment; ❑ Ye s ❑ N o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of
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 $ cost with an assessed value of
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 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 5 or 10 year schedule may be deducted.
❑ 3 years ❑ 8 years
❑ 4 years ❑ 9 years
❑ 5 years `* ❑ 10 years "*
I. Did the designating body adopt an alternative deduction schedule per IC 6- 1.1- 12.1 -17? ❑ Yes ❑ No
If yes, attach a copy of the alternative deduction schedule to this form.
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.
Approved: (signature and title of authorized member ) Telephone number Date signed (month, day, year)
6fiwAr urn Ue 1, C L n&fi ,atuvii ( bpd ) ij - 5 c i ;5 -`
Attested by: Designated 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
Additional items estimated costs:
Racking for veneer storage $40,000
Conveyors for new process $50,000
Rocking arm guillotine $80,000
4 add Fork truck $45,000
Total new equipment $215,000+
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR Heritage Hardwoods of Kentucky, Inc.
May , 2013
The council will grant a 10 -year abatement on $300,000 in personal property and
$1,300,000.00 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.
Heritage Hardwoods of Kentucky, Inc.
Maurice Smith
Chief Financial Officer
BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION
STATE OF INDIANA
A RESOLUTION RECOMMENDING TO THE COMMOUN COUNCIL
APPLICATION FOR TAX ABATEMENT FOR
HERITAGE HARDWOODS OF KENTUCKY, INC.
RESOLUTION NO. 2013 -R-
WHEREAS, Heritage Hardwoods of Kentucky, Inc. has made application for tax
abatement from the City of Jeffersonville, Indiana;
WHEREAS, the Common Council is the designating body for approving such
applications;
WHEREAS, said application requires review by the Jeffersonville Redevelopment
Commission.
NOW, THEREFORE, BE IT RESOLVED BY THE JEFFERSONVILLE
REDEVELOPMENT COMMISSION THAT:
1. The Jeffersonville Redevelopment Commission has reviewed the attached
"Statement of Benefits" for Real Estate Improvements;
2. The Jeffersonville Redevelopment Commission has reviewed the attached
"Statement of Benefits" for Personal Property; and
1 The Jeffersonville Redevelopment Commission hereby recommends to the
Common Council the application for tax abatement for Heritage Hardwoods of Kentucky, Inc.
Adopted at a meeting of the Jeffersonville Redevelopment Commission held the
day of , 2013.
JEFFERSONVILLE REDEVELOPMENT
COMMISSION
President
ATTEST:
Secretary
1/2961557.1