HomeMy WebLinkAbout2015-R-3BEFORE THE COMMON COUNCIL
FOR THE CITY OF JEFFERSONVILLI✓, I1,41.31ANA
RESOLUTION NO. 201 5-12- ,'j
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PROPOSED PERSONAL PROPERTY TAX ABATEMENTS
WHEREAS, Mytex Polymers petitioned the C=ommon Council of the City of
Jeffersonville, Indiana, for a deduction in personal property taxes to be assessed on a
proposed improvements, located at 1403 Port Road located in the City of -Jeffersonville,
Clark County, Indiana; and
WHEREAS, Mytex Polymers, has submitted a Statement of Benefits on the form
prescribed by the Indiana State Board of Tax Commissioners for personal property,
which statement includes a description of the proposed improvements, an estimate of the
number of individuals who will be employed as a result of the improvements, an estimate
of -the annual salaries of these individuals, and an estimate of the value of the
improvements; and
WHEREAS, the Common Council of the City cif -Jeffersonville has previously
determined that the area in which the proposed improvement project is located in the City
of -Jeffersonville qualifies as an economic revitalization area pursuant to Indiana Code 6-
1 . 1 - 1 2. 1 -5, et seq.; and
WHEREAS, the Redevelopment Commission of 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 personal property improvement of
$1,702,000.00 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 30 individuals who will be retained can
reasonably be expected to result from the proposed described redevelopment or
rehabilitation.
3. That the estimate of the annual salaries of 3 of those individuals who will be
added can be reasonably expected to result from the proposed described
redevelopment or rehabilitation.
4. That the taxes lessened from the granting of this abatement shall be for
improvements in personal property up to the value of $1,702,000.00.
5. That all other information requested from Mytex Polymers has been submitted,
and the benefits described in such information can be reasonably expected to
result from the proposed described improvements.
6. That the totality of benefits for said improvements are sufficient to justify the
deduction.
7. That Mytex Polymers 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 Mytex Polymers, and that said company shall be
entitled to deduction for a period of 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 a day of e.44,, , 2015.
VOTED FOR: VOTED AGAINST:
c
Passed and adopted by the Common Council of the City of Jeffersonville, Clark
County, Indiana on this day of 4+. , 2015.
A
Vicki Conlin, Clerk
ill, Council President
Presented by me as Clerk to the Mayor of said City of Jeffersonville this 3 day of
jQ , 2015.
Vicki Conlin, Clerk
Islq-C-
This Resolution approved and signed by me this d.
2015.
1
This Resolution vetoed by me this day of
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR MYTEX POLYMERS
, 2015
The council will grant a 5 -year abatement on $ 1,702,000.00 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.
MYTEX POLYMERS
By:
Printed:
Title:
BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION
STATE OF INDIANA
A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL
APPLICATION FOR TAX ABATEMENT FOR MYTEX POLYMERS
RESOLUTION NO.2015-R-
WHEREAS, Mytex Polymers 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 Personal Property; and
2. The Jeffersonville Redevelopment Commission hereby recommends to the
Common Council the application for tax abatement for Mytex Polymers
Adopted at a meeting of the Jeffersonville Redevelopment Commission held the 22
day of ,)gylt>al , 2015.
ATTEST:
1/2961557.1
Secretary
JEFFERSONVILLE REDEVELOPMENT
COMMISSION/%
///,/17
resident
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
Any information concerning the Cost
of the property end specific salaries paid
to individual employees by the property
owner is confidential per IC 6.1,1.12.1.5.1,
INSTRUCTIONS
7. 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 e 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 retum 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.
(/C 6-1,1-12.1-5.6)
5. For Fonn SB-1/PP 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/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)
SECTION 1
Name of taxpayer
Mytex Polymers US Corp.
Name of contact person
Peter Tevebaugh
Address of taxpayer (number and sheet, city, slate, and ZlPcode)
1403 Port Rd-, Jeffersonville, IN 47130
Telephone number
( 812 ) 280-2954
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
Jeffersonville City Coundl
Location of property 1 County
1403 Port Rd. I Clark
OLGF taxing district number 1
10039
Description of manufacturing equipment and/or research and development equipment
and/or logistical distribution information
ESTIMATED
equipment and/or technology equipment.
(Use additional sheets if necessary.)
START DATE
COMPLE ION DATE
A variety of capital projects aimed at improving productivity to enhance company's
overall competitiveness.
Manufacturing Equipment
02/15/2015
03/31/2017
R & D Equipment
Logist Dist Equipment
17 Equipment 02/15/2015
03/31/2017
SECTION 3
Current number
30
SECTION 4
NOTE; Pursuant to IC 6-1.1-12.1.5.1
ESTIMATE OF
Salaries
53,031,000
ESTIMATED
(d) (2) the
EMPLOYEES AND SALARIES
Number retained
30
TOTAL COST AND
MANUFACTURING
EQUIPMENT
AS RESULT OF PROPOSED
Salaries
$3,031,000
VALUE OF PROPOSED PROJECT
R & D EQUIPMENT
PROJECT
Number additional
3
LOGIST DIST
EQUIPMENT
Salaries
IT
$180,000
EQUIPMENT
COST of the properly is confidential.
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
COST
ASSESSED
COST ST
ASSESSED
VALUE
Current values
4,013,781
983,426
Pius estimated values of proposed project
1,702,000
620000_
Less values of any property being replaced
68,000
_ _
_
81,000
Net estimated values u.on completion of project
5,647,781
539,000
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED
Estimated solid waste converted (pounds) Estimated hazardous
BY THE
waste
TAXPAYER
converted
(pounds)
Other benefits:
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature or authorized representative
Date signed (month, day, /rear)
Printed name of authorized representative 1 Title
I
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 Irea has been limited to a period of time not to exceed
is 13 1 /d i)
B. The type of deduction that is allowed in the designated area is limited to:
1 . Installation of new manufacturing equipment;
2 . Installation of new research and development equipment;
3 . Installation of new logistical distribution equipment.
4 . Installation of new information technology equipment;
calendar years * (see below). The date this designation expires
Yes ❑ No
El Yes 0 N
❑Yes 0 N
[z]'Yes ❑ N o
C. The amount deduction applicable to new manufacturing equipment is limited to $ 1 10Q Ord•Q7 cost with an assessed value of
$ r
D. The amount of deduction applicable to new research and development equipment is limited to $
E. The amount of deduction applicable to new logistical distribution equipment is limited to $
cost with an assessed value of
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 is allowed for:
o Year 1
o Year 6
o Year 2
o Year 7
o Year 3
o Year 8
❑ Year 4
❑ Year 9
® Year 5
0 Year 10
(see below')
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? ❑Yes ❑ 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.
Approved by: (signatu,e and title of ayflQorizecl member of designating body)
Telephone number
(va)a85-6/02.'7
Date signed (month, day, year)
a -a -is
Printed name of authorieS,de,lf
member of designating body
J-'sM- 6111,
Attested by: (signature and title of attester)
Name of desi atin boodx �i
G,DC4�ZrSartu1(% �m1�'b;n l,auacl�
Printed ame of attester
* If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years 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
REAL PROPERTY
Year 1-100%
Year 2 — 95%
Year 3 — 80%
Year4-65%
Year 5 — 50%
Year 6-40%
Year 7 — 30%
Year 8 — 20%
Year 9— 10%
Year 10 — 5%
Year 11— 0%
ABATEMENT SCHEDULE EXHIBIT
PERSONAL PROPERTY
Year 1-100%
Year 2 — 80%
Year 3 — 60%
Year4-40%
Year 5 — 20%
Year 6 —0%