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HomeMy WebLinkAbout2014-R-21BEFORE TME COMMON COUNCIL FOR THE CITY OF JEFFERSONVILL , VNOINAA RESOLUTION NO. 2014-R-- 46'4 RESOLUTION APPROVING WAIVER OF NON-COMPLIANCE FOR INDEMITSU LUBRICANTS AMERICA CORPORATION REAL AND PERSONAL PROPERTY TAX ABATEMENT WHEREAS, Idemitsu Lubricants America Corporation previously received approval of the Common Council of the City of Jeffersonville, Indiana on March 7, 2011, 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 3230 Industrial Parkway located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, Idemilsu Lubricants America Corporation, 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 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 W HF_REAS, 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 revitalisation area pursuant to Indiana Code 6-1_1-12.1-5, et seq.; and WHEREAS, the Redevelopment Commission of the City of Jeffersonville 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. WHEREAS, the estimated date of completion by Idemitsu Lubricants America Corporation was December 31, 2014; however, Idemitsu is requesting that they be given a one year extension on the tax abatement, until December 31, 2015 for reasons listed in the explanation attached hereto as "Exhibit B". 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 $1,500,000.00 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 $3,150,000.00 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 94 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 44 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 $ 1,500,000.00. 6. That the taxes lessened from the granting of this abatement shall be for improvements in personal property up to the value of $ 3,150,000.000. 7. That all other information requested from Idemitsu Lubricants America Corporation 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 Idemitsu Lubricants America Corporation 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 resolution for waiver of non- compliance on real and personal property for tax abatement for Idemitsu Lubricants America Corporation approving extension for abatement period to December 31, 2015. This Resolution shall be in full force and effect from and after its passage and approval. Passed this 1 1 day of goOe m bcr , 2014. D FOR: VOTED AGAINST: Passed and adopted by the Common Council of the City of Jeffersonville, Clark County, Indiana on this / 7 day of Koff' rnber , 2014. Vicki Conlin, Clerk ennis Juliu ,r`ouncil President ,/ 'IPresented by me as Clerk to the Mayor of said City of Jeffersonville this day of /VMI)emf , 2014. /-1A. Vicki Conlin, Clerk This Resolution approved and signed by me this / 2014. This Resolution vetoed by me this day of y of Mike oore, Mayor , 2014. Mike Moore, Mayor "Exhibit A" Idemitsu Lubricants America Corporation 10/22/2014 FORM CF-1/PP — Update on "Warehouse and Office expansion project" As determined on February 28, 2011, Idemitsu Lubricant America Corporation was granted a 10 -year abatement on $7,063,500.00 in real property and 5 -year abatement on $12,820,250.00 in personal property, as allowed by state statute. Originally estimated, plan called for all capital spending to be completed as of December 31, 2014. As reported on Form CF-1/RR, spending on qualifying real estate improvement, for the total of $8,311,751, was done by December 31, 2014. Conversely, spending on personal property has been slower than anticipated, with the new estimated completion date of December 31, 2015. Total spending thru September 30, 2014 was $8,317,666. Main factors delaying personal property spend are directly tied to the necessary requirement for management's time to thoroughly plan, effectively coordinate, and successfully carry out the already completed warehouse and office expansions, as well as the filling line replacement/upgrade projects. The final phase to the planned capital expansion project is now estimated $6.6 million for our tank farm expansion. The planning process began early in 2014 and the construction should be completed by November 2015. The actual growth of Idemtisu's business over the last 3 years alone has put excessive time constraint on Idemitsu's management and their ability to devote sufficient effort to capital spending for personal property. As evident by actual current employee numbers of 96 vs. originally planned for 87, Idemtisu is continuously working on adding new manpower in order to keep up with the current operations and properly plan for new endeavors. Given the above stated, we kindly ask you to please approve extension for the abatement period to 12/31/2015. le COMPLIANCE WITH STATEMENT OF BENEFITS LLl PERSONAL PROPERTY State Form 51765 tR2 15-131 Prescribed by the Department of Local Government Finance FORM CF -1 / PP I INSTRUCTIONS: 1. Property owners whose Statement of Benefits was approved must file this form with the local Designating Body to show the extent to which there has been compliance with the Statement of Benefits. (1C 6-1.1-12.1.5.6) 2. This form must be filed with the Form 103 -ERA Schedule of Deduction from Assessed Value between March 1, and May 15, of each year, unless a filing extension under IC 6-1.1-3.7 has been granted A person who obtains a filing extension must file between March 1, and the extended due date of each year. 3. With the approval of the designating body, compliance information for multiple projects may be consolidated on one (1) compliance (CF -1). Name of taxpayer Idemltsu Lubricants America Corporation TAXPAYER INFORMATION Address of taxpayer (number and stmef city state, and ZAP code) 701 Port Road, Jeffersonville, IN 47130 Name of contact person Heather Couch Name of designating body City Of Jeffersonville LOCATION AND DESCRIPTION OF PROPERTY Telephone number ( 812 ) 285-8214 Resolution number It Couny Clark Location of property 701 Port Road, Jeffersonville, IN 47130 Description of new manufacturing equipment, or new research and development equipment, or new Information technology equipment or new logistical distribution equlpme^t to be acquired Warehouse and Office expansion project SECTION 3 EMPLOYEES AND SALARIES EMPLOYEES AND SALARIES 2011 -R -0f OLGF taxing district nt.mber 10039 Estimated starting date (month. day year) 29!2011 Estimated corn :leticn date (month. day, year) 12L3i/ Oi5'' AS ESTIMATED ON 58-1 Current number of employees Salaries sew ACTUAL 9300 3,185<409.00 Number of employees retailed Salaries e,L5 1016 20i if 5900 3,165,4119.00 Number of additional employees 4 Salaries 1,094,412.00 5.2e7 971 e4 CP - pirI/ li1►�t Iv Fr( 1hi ►r COST AND VALUES MANUFACTURING EQUIPMENT 23,00 R & D EQUIPMENT LOGIST DIST EQUIPMENT AS ESTIMATED ON S8-1 COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE IT EQUIPMENT COST ASSESSED VALUE Values before project Pius Values of proposed project /2,920.250.00 tq2. 090 Less Values of any property being replaced Net values upon completion of project ACTUAL — .� Values before prV ic�Q'(niLtc(!2 p j OST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE { Plus Values of proposed project 5 453.190.52 2,664,47525 Less: Values of any property being replaced Net values upon completion of project NOTE: The COST of the property Is confidential pursuant to IC 6-1,1-12.1-5 6 (d).. SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED SY THE TAXPAYER AS ESTIMATED ON SB -1 WASTE CONVERTED AND OTHER BENEFITS Amount of solid waste converted Amount of hazardous waste converted Other benefits: ACTUAL TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative 1 Title 1 Data signed (month. day, year) OPTIONAL: FOR USE BY A DESIGNATING BODY WHO ELECTS TO REVIEW THE COMPLIANCE WITH STATEMENT OF BENEFITS (FORM CF-1) !to.' THAT WAS APPROVED AFTER JUNE 34, 1991. INSTRUCTIONS: (1C 6-1,1-12.1-5.9) 1, This page does not apply to a Statement of Benefits filed before July 1, 1991, that deduction may not be terminated for a failure to comply with the Statement of Benefits. 2. Within forty-five (45) days after receipt of this form, the designating body may determine whether or not the property owner has substantially complied with the Statement of Benefits. 3, if the property owner is found NOT to be in substantial compliance, the designating body shall send the property owner written notice. The notice must Include the reasons for the determination and the date, time and place of a hearing to be conducted by the designating body. if a notice is mailed to a property owner e copy of the written notice will be sent to the Township Assessor and the County Auditor. 4. Based on the information presented at the hearing, the designathrg body shall determine whether or not the property owner has made reasonable effort to substantially comply with the Statement of Benefits. 5, If the designating body determines that the property owner has NOT made reasonable effort to comply, then the designating body shall adopt a resolution terminating the deduction. The designating body shell Immediately mail a certified copy of the resolution to: (1) the property owner, (2) the County Auditor and (3) the Township Assessor. We ave reviewed the property ❑ the ❑ other the CF -1 and find that. owner IS in substantial compliance property owner IS NOT in substantial compliance (specify) _ Reasons for the determination (attach additional sheets ft necessary) re of authorized member (f ,..--2--7_, pate signed (month, day, year) /f/ / %_ � i Designating body %� I /1 1 -(� C Y111 Yi C• 11 l , C) Li n C t 1. C, i"�/ �j /1 �.X'JSi`l+G.l shal receive the opportunity for a hearing. The to owing date and lithe property owner is found not to be in substantial compliance, the property owneropP time has been set aside for the purpose of considering compliance. Time of hearing hti+l PM Date of hearing (month. day, year) //— q- HEARING RESULTS Approved Location of hearing P.I I' A r t (to he completed after the hearing) • Denied (see instruction 5 above) Reasons for the determination (attach additional sheets it necessary) gnatu of authorized member Oa signed (month. day, r) ailed h 1 C 11 Designating body //11' / n�} F -(— (`(� I C o in,n 17 I.UCt,r1 L CA,4-ci d < 1 ii-t"4rSa n vl )'-e .J "I APPEAL RIGHTS ( C 6.1.1-12.1.5.9(e)1 A property owner whose deduction is denied by the designating body may appeal the designating body's decision by filing a complaint in the office of the Circuit or Superior Court together with a bond conditioned to pay the costs of the appeal It the appeal is determined against the property owner. BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION STATE OF INDIANA A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL A WAIVER OF NON-COMPLIANCE FOR IDEMITSU LUBRICANTS AMERICA CORPORATION ON REAL AND PERSONAL PROPERTY TAX ABATEMENT RESOLUTION NO. 2014-R- / 3 WHEREAS, Idemitsu Lubricants America Corporation was granted a tax abatement on real and personal property by resolution on March 1, 2011 from the City of Jeffersonville, Indiana; WHEREAS, the Common Council is the designating body for approving such applications; WHEREAS, the estimated date of completion by Idemitsu Lubricants America Corporation was December 31, 2014; however, Idemitsu is requesting that they be given a one year extension on the tax abatement, until December 31, 2015 for reasons listed in the explanation attached hereto as "Exhibit A". 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 "Waiver of Non —Compliance" for Real Property and Personal Property Tax Abatement; and 2. The Jeffersonville Redevelopment Commission hereby recommends to the Common Council the resolution for waiver of non-compliance on real property and personal property for tax abatement for Idemitsu Lubricants America Corporation approving extension for abatement period to December 31, 2015. Ac -ted at a meeting of the Jeffersonville Redevelopment Commission held the day of \9-1-r '( \9-1-r , 2014. ATTEST: Secretary 1/2961557.1 JEFFERSONVILLE REDEVELOPMENT COMMISSION CITY Or 3,EFF,'"E'"fiSONVILLE 1)1»: ).1121 i i:"r 1 \\\ Les iNterliltiy, .\ trail office S12 -"S5 -m440 fii tile I 500 Quartermaster Court, Suite 47130 BEFORE 111E CITY COUNCIL OF JEFFERSONVILLE, INDIANA IN THE MATTER OF A RESOLUTION FOR WAIVER OF NON-COMPLIANCE FOR IDEMITSU LUBRICANTS AMERICA CORPORATION REAL PROPERTY AND PERSONAL PROPERTY FAX ABATEMENT NOTICE OF HEARING ON RESOLUTION FOR WAIVER OF NON- COMPLIANCE FOR IDEMITSU LUBRICANTS AMERICA CORPORATION REAL PROPERTY AND PERSONAL PROPERTY TAX ABATEMENT Notice is hereby given that the Redevelopment Commission for the City of Jeffersonville has tiled a Resolution For Waiver of Non -Compliance with the Jeffersonville City, Council, Jeffersonville, Indiana asking for an extension of the tax abatement of ldemitsu Lubricants America Corporation. A public hearing will be held on November 17, 2014 at 7:00 p.m. in the City Council Chambers, 1 S floor. City Hall, 500 Quartermaster Court, Room 101, Jeffersonville, Indiana at which time and place all interested p rso be hear, reference to the matters set out in said resolution. An equal opportunity employ Les Merkley City Attorney Jeffersonville City Hall 500 Quartermaster Court Jeffersonville. iN 47130 (812) 285-6423