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HomeMy WebLinkAbout2014-R-19BEFORE THE COMMON COL7NCII_ FOR THE CITY OF JEFINEI2SONVILL.E, INDINAA RESOLU"PION NO. 2014-R-- /q RESOLUTION Al' YRAD. VINT G STATEMENT OF BENEFIT FOR PROPOSED REAL PROPERTY AND PERSONAL PROPERTY TAX A. RAT EME NT FOR HEARTLAND PAYMENT SYSTEMS WHEREAS, Heartland Payment Systems 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 redevelopment of property, including the construction and buildings and related improvements, to be generally located at One Heartland Way located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, Heartland Payment Systems has submitted a Statement of Benefits on the form prescribed by the Indiana State Board of Tax Commissioners for real property and personal property, which statements includes a description of the proposed redevelopment, an estimate o£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 WHEREAS, 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 ecorcocYtic revitalization area pursuant to Indiana Code 6-1.1-12.1-5, et seq_; and WHEREAS, the Redevelopment Commission cif the City of Jeffersonville has made a favorable recommendation for approval of the Statement of Benefits; and WHEREAS, 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 $835,000.00 is reasonable for projects of the nature described in the Statement of Benefits submitted by the company. 2. That the estimate value of the qualifying personal property improvement of $7,500,000.00 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 840 individuals who will be retained can reasonably be expected to result from the proposed described redevelopment or rehabilitation. 4. That the estimate of the annual salaries of 74 of those individuals who will be added can be reasonably expected to result from the proposed described redevelopment or rehabilitation. 5. That the taxes lessened from the granting of this abatement shall be for improvements in real estate up to the value of $835,000.00. 6. That the taxes lessened from the granting of this abatement shall be for improvements in personal property up to the value of $7,500,000.00. 7. That all other information requested from Heartland Payment Systems 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 Heartland Payment Systems 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 I.C. 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 Heartland Payment Systems, and that said company shall be entitled to deduction for a period of TEN (10) years for improvements to real property and FIVE (5) years for personal property pursuant to provisions of I.C. 6-1.1-12.1-3(d), with the timely filing and perfection thereof with the Clark County Auditor's office. This Resolution shall be in full force and effect from and after its passage and approval. Passed this .5 day of ©C--Iober , 2014. vor 411�ltcC VOTED AGAINST: Passed and adopted by the Common Council of the City of Jeffersonville, Clark County, Indiana on this 5 day of O-lobe_I' , 2014. Vicki Conlin, Clerk ennis Julius 'ouncil President Presented by me as Clerk to the Mayor of said City of Jeffersonville this (( day of Qc-1-o e r , 2014. This Resolution approved and signed by me this 2014. Vicki n1}1n, Clerk 1 day of 0 Q'1 Mik Moore, Mayor This Resolution vetoed by me this day of , 2014. Mike Moore, Mayor ATTACHMENT TO THE STATEMENT OF BENEFITS FOR HEARTLAND PAYMENT SYSTEMS , 2014 The council will grant a 10 -year abatement on $ 835,000.00 in real property and a 5 -year abatement on $7,500,000.00 in personal property as allowed by state statute. 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 five years of the date of the certificate of occupancy. The company understands that this 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. HEARTLAND PAYMENT SYSTEMS By: Printed: Title: ABATEMENT SCHEDULE EXHIBIT REAL PROPERTY PERSONAL PROPERTY Year 1 — 100% Year 2 — 95% Year 3 — 80% Year4-65% Years -50% Year 6-40% Year 7 — 30% Year 8 — 20% Year 9-10% Year 10-5% Year 11-0% Year 1 — 100% Year2-80% Year3-60% Year4-40% Year 5 — 20% Year 6 — 0% BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION STATE OF INDIANA A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL APPLICATION FOR TAX ABATEMENT FOR HEARTLAND PAYMENT SYSTEMS, INC. RESOLUTION NO. 2014-R- t2 WHEREAS, Heartland Payment Systems, 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 Property and Personal Property; and 2. The Jeffersonville Redevelopment Commission hereby recommends to the Common Council the application for tax abatement for Heartland Payment Systems. Ado ted at a meeting of the Jeffersonville Redevelopment Commission held the day of , 2014. ATTEST: cetrtr.00.0:00#/frii, Sec y 1/2961557.1 JEFFERSONVILLE REDEVELOPMENT COMMISSION .//74 Pre ent STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R3 / 12-13) Prescribed by the Department of Local Government Finance FORM SB -1 / PP PRIVACY NOTICE 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. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation of qualifying abatable equipment for which the person desires to claim a deduction. 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, must submit Form CF-1/PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 5. For a Form SS-1/PP that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. Far a Form SB-1/PP that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. (IC 6-1.1-12.1-17) Any information concerning the cost of the property and specific salaries paid to individual employees by the property owner is confidential per IC 6-1.1-12.1-5.1. R INFORMATION Name of taxpayer Heartland Payment Systems, Inc. Name of contact person Scott Hudson Address of taxpayer (number and street, city, state, and ZIP code) One Heartland Way, Jeffersonville, IN 47130 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Jeffersonville City Council Telephone number ( 812 ) 280-8222 ext 1181 Resolution number (s) Location of property One Heartland Way, Jeffersonville, iN County IClark DLGF taxing district number 10039 Description of manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment. ESTIMATED (Use additional sheets if necessary) START DATE COMPLETION DATE IT equipment, servers, monitors, and network gear Manufacturing Equipment R & D Equipment Logist Dist Equipment IT Equipment 10/08/2014 12/31/2016 SECTION 3 Current number 840 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT Salaries Number retained Salaries 38,423,066 840 38,423,066 OF PROPOSED PROJECT Number additional 74 Salaries 3,078,400 SECTION 4 ESTIMATED NOTE: Pursuant to IC 6-1.1-121-5,1 (d) (2) the COST of the property is confidential. TOTAL COST AND MANUFACTURING EQUIPMENT VALUE OF PROPOSED PROJECT R & D EQUIPMENT LOGiST DIST EQUIPMENT IT EQUIPMENT COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE Current values 24,261,405 7,369,846 Plus estimated values of proposed project 7,500,000 228,000 Less values of any property being replaced Net estimated values upon completion of project 31,761,405 7,597,846 SECTION 5 WASTE CONVERTED AND Estimated solid waste converted (pounds) OTHER BENEFITS PROMISED Estimated hazardous BY THE TAXPAYER waste converted (pounds) Other benefits: SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations i this statement are true, Signature of authorized representative 60 '".-- ----- __ ``--� �j��jj Date signed-�'T (month, day, year) 9/16/2014 Printed name of authorized representative J Scott Hudson Title Divisional Controller 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. —7 A. The designated area has been limited to a period of time not to exceed I calendar years * (see below). The date this designation expires is l2-I3't .2_l B. The type of deduction that is allowed in the designated area is limited to: 1 . Installation of new manufacturing equipment; 0 Yes 1'N o 2 . Installation of new research and development equipment; 0 Yes ON o 3 . Installation of new logistical distribution equipment. 0 Yes [10 4 . Installation of new information technology equipment; [a'4es 0 N o C. The amount of deduction applicable to new manufacturing equipment is limited to $ 1\11 /. cost with an assessed value of $ NIA D. The amount of deduction applicable to new research and development equipment is limited to $ $ 4A E . The amount of deduction applicable to new logistical distribution equipment is limited to $ N. A cost with an assessed value of $ Nj F. The amount of deduction applicable to new information technology equipment is limited to $ 1,5 -UO; COO cost with an assessed value of $ ����-7 . G. Other limitations or conditions (specify) NH/\ cost with an assessed value of 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 is allowed for: /fear 1 Year 2 [ja'Year 3 B -'ear 4 Rear 5 (see below *) 0 Year6 0 Year7 ❑ Year8 ❑ Year9 ❑Year 10 I. For a Statement of Benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? 0 Yes 0 No If yes, attach a copy of the abatement schedule to this form. If no, the designating body is required to establish an abatement schedule before the deduction can be determined. 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. Rlroved by: (signature and title inted name of authorized D s ' I orized .erofdes '_natingbody) r , er of des • nating body Atte • e by: (signal IC and ti a of attest n n Telephone number Date signed (month, day, year) (via ) 86-p/a' /o-.s-�� Name of designating body eF U, Ile -AO nn name of i 1/AIWA • _A Alai * If the designating body limits the time period during which an area is an economic revitalization taxpayer is entitled to receive a deduction to a number of years that is less than the number o that limitation does not limit the length of time a rs designated under IC 6-1.1-12.1-17. IC 6-1.1-12.1-17 Abatement schedules Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten (10) years. (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS State Form 51767 (R5 / 12-13) 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): 0 Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4) ❑ Residentially distressed area (IC 6-1.1-12.1-4.1) INSTRUCTIONS: 20 PAY 20_ Address of taxpayer (number and street, city, state, and ZIP code) One Heartland Way, Jeffersonville, IN 47130 FORM SB -1 / Real Property PRIVACY NOTICE Any information concerning the cost of the property and specific salaries paid to individual employees by the property owner is confidential per IC 6-1.1-12.1-5.1. 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. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction, a Form 322/RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is made or not later than thirty (30) days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year. 4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction is applicable. iC 6-1.1-12.1-5.1(b) 5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. IC 6-1.1-12.1-17 AXPAYER INFORMATION Name of taxpayer Heartland Payment Systems Inc. Address of taxpayer (number and street, city, state, and ZIP code) One Heartland Way, Jeffersonville, IN 47130 Name of contact person Telephone number Scott Hudson ( 812) 280-8222 ext 1181 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Jeffersonville City Council E -ma/ address dscott.hudson . e-hps.com Resolution number Location of property One Heartland Way, Jeffersonville, IN 47130 County I Clark DLGF taxing district number 10039 Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) Expansion of Heartland Service Center Estimated start date (month, day, year) 10/08/2014 Estimated completion date (month, day, year) 12/31/2016 SECTION 3 Current number 840.00 ESTIMATE OF EMPLOYEES Salaries $38,423,066.00 AND SALARIES Number retained 840.00 AS RESULT OF PROPOSED Salaries $38,423,066.00 PROJECT Number additional 74.00 Salaries $3,078,400.00 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values 54,812,691.00 17.102.550.00 Plus estimated values of proposed project 835.000.00 260,500.00 Less values of any property being replaced Net estimated values upon com.letion of project 55,647.691.00 17,363,050,00 SECTION 5 WASTE CONVERTED AND OTHER Estimated solid waste converted (pounds) BENEFITS PROMISED BY THE TAXPAYER Estimated hazardous waste converted (pounds) Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representa ions in this stateme t are true. Signature of authorized representative .• Date signed (month, day, year) 09/16/2014 Printed name of authorized representativeTitle Scott Hudson I Divisional Controller Page 1 of 2 FOR IJSE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted under IC 6-1.1-12.1, provides for the following limitations: A. The designated ar�ja ha been limited to a period of time not to exceed expires is I1 -7i 21)2i0 or to be adopted by this body. Said 2— calendar years* (see below). resolution, passed or to be passed The date this designation to: [Kes ❑ No ❑ Yes 2-'o 0 . I B. The type of deduction that is allowed in the designated area is limited 1. Redevelopment or rehabilitation of real estate improvements 2. Residentially distressed areas ' C. The amount of the deduction applicable is limited to $ ) 3S i c,) D. Other limitations or conditions (specify) E. Number of years allowed: D•Year 1 []Year 2 [.,}'rear 3 II -'Year 4 ErYear 5 (* see below) Ct'�tear 6 Erc'ear 7 Lwear 8 E S'ear 9 Erlear 10 F. For a statement of benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? [tes fl No If yes, attach a copy of the abatement schedule to this form. If no, the designating body is required to establish an abatement schedule before the deduction can be determined. 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 designating body) r9 Telephone number (31a )a854407/7 Name of designating body .Se ersonuIIlc C14-1 Date signed (mon , day, year) io-5-1 Coutic'� Printed name of authori ed member of .-signating body Dennis uIius tees; -% es -..y (signature and title of a.> - P '. -d name of attester _n. 4 !L i � v� revitalization area, that limitation does not limit the length of time a the number of years designated under IC 6-1.1-12.1-17. was approved prior to July 1, 2013, the deductions established in IC five (5) years. For a Form SB-1/Real Property that is approved after June 30, for each deduction allowed. The deduction period may not exceed ten SB-1/Real Property was approved prior to July 1, 2013, the abatement SB-1/Real Property that is approved after June 30, 2013, the designating allowed. (See IC 6-1.1-12.1-17 below.) in or relocated to a revitalization area and that receives a deduction under factors: and personal property. to the state minimum wage. June 30, 2013. A designating body shall establish an abatement schedule must specify the percentage amount of the deduction for each year of years. July 1, 2013, remains in effect until the abatement schedule expires under of benefits. — /v �Cra-.r—� ' r I r wiiNI * If the designating bo. /`� its the time period during which an area is an economic taxpayer is entitled: eceive a deduction to a number of years that is less than A. For residentially distressed areas where the Form SB-1/Real Property 6-1.1-12.1-4-1 remain in effect. The deduction period may not exceed 2013, the designating body is required to establish an abatement schedule (10) years. (See IC 6-1.1-12.1-17 below.) B. For the redevelopment or rehabilitation of real property where the Form schedule approved by the designating body remains in effect. For a Form body is required to establish an abatement schedule for each deduction IC 6-1.1-12.1-17 Abatement schedules Sec. 17. (a) A designating body may provide to a business that is established section 4 or 4.5 of this chapter an abatement schedule based on the following (1) The total amount of the taxpayer's investment in real (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared (4) The infrastructure requirements for the taxpayer's investment. (b) This subsection applies to a statement of benefits approved after for each deduction allowed under this chapter. An abatement schedule the deduction. An abatement schedule may not exceed ten (10) (c) An abatement schedule approved for a particular taxpayer before the terms of the resolution approving the taxpayer's statement Page 2 of 2