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HomeMy WebLinkAbout2015-R-2BEFORE THF COMMON CCJLJNCii. FOR "1"1-I F. CITY OF J FFFFRS ONV I I.I.E, IN UI ANA RESOLt 1"1 -ION NO. RESOLUTION APPROVING STATEMENT OF F: INT FFITS FOR PROPOSED REAL PROPERTY AND PF RSON AI_ PRO YE: ITT Y TAX ABATE 1%4 E -NT TS W HERF_AS, CFiemtrusion, Inc_ petitioned the Cortnnon 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 1403 Port Road located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, Cherntrusion, Inc., has submitted a Statement of Benefits on the form prescribed by the Indiana State 13oard of "fax C-orninissioners for real property and personal property, which statements include 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 WHEREAS, the Con -anon Council of -the City of -Jeffersonville has previously determined that the arca in which the proposed redevelopment project is located in the City of Jeffersonville qualities as an economic revitalization area pursuant to Indiana Code 6-1.1-12.1-5, 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 real estate improvement of $1,400,000.00 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 $3,600,000.00 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 107 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 8 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 $1,400,000.00. 6. That the taxes lessened from the granting of this abatement shall be for improvements in personal property up to the value of $3,600,000.00. 7. That all other information requested from Chemtrusion, 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 Chemtrusion, 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 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 Chemtrusion, Inc., 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 a day of 0,41 , 2015. VOTED FOR: VOTED AGAINST: Passed and adopted by the Common Council of the City of Jeffersonville, Clark County, Indiana on this a day of , 2015. ATTEST: Vicki Conlin, Clerk isa G , Council President Presented by me as Clerk to the Mayor of said City of Jeffersonville this a ( day of , 2015. Vicki Conlin, C erk This Resolution approved and signed by me this d. rTh dl'ty 2015. This Resolution vetoed by me this Mike oore, Mayor day of , 2015. Mike Moore, Mayor REAL PROPERTY Year 1-100% Year 2-95% Year 1-100% Year 3 — 80% Year 2 — 80% Year 4 — 65% Year 3 — 60% Year 5 — 50% Year 4 — 40% Year 6 — 40% Year 5 — 20% Year 7 — 30% Year 6 — 0% Year 8 — 20% Year 9 — 10% Year 10-5% Year 11-0% ABATEMENT SCHEDULE EXHIBIT PERSONAL PROPERTY ATTACHMENT TO THE STATEMENT OF BENEFITS FOR MYTEX POLYMERS , 2015 The council will grant a 5 -year abatement on $ 2,322,000.00 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: STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS State Form 51767 (R5112-13) 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): © Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4) 0 Residentially distressed area (IC 6-1.1-12.1-4.1) INSTRUCTIONS: 20 PAY 20_ 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 SECTION 1 TAXPAYER INFORMATION Name of taxpayer CHEMTRUSION, INC Address of taxpayer (number and street, city, state, and ZIP code) 7115 CLINTON DRIVE, HOUSTON, TX 77020 Name of contact person SCOTT E. OWENS, PRESIDENT SECTION 2 LOCATION Name of designating body JEFFERSONVILLE CITY COUNCIL AND DESCRIPTION Telephone number ( 713 1 675-1616 OF PROPOSED PROJECT E-mail address sowens • chemtrusion.com Resolution number Location of property 1403 PORT ROAD, JEFFERSONVILLE, IN 47130 County CLARK DLGF taxing district number 10039 Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) CONSTRUCT ADDITIONAL WAREHOUSE AND RAIL CAPACITY Estimated start date (month, day, year) 02/15/2015 Estimated completion date (month, day, year) 12/31/2016 SECTION 3 Current number 107.00 SECTION 4 ESTIMATE OF EMPLOYEES Salaries $4,400,000.00 ESTIMATED AND SALARIES Number retained 107.00 TOTAL COST AND AS RESULT OF PROPOSED Salaries $4,400,000.00 VALUE OF PROPOSED PROJECT REAL PROJECT Number additional 8.00 ESTATE IMPROVEMENTS Salaries $256,000.00 COST ASSESSED VALUE Current values 4,335,799.00 Plus estimated values of proposed project 1,400,000.00 Less values of any property being replaced Net estimated values upon completion of project 5,735,799.00 SECTION 5 Estimated solid waste converted WASTE CONVERTED AND OTHER (pounds) BENEFITS PROMISED BY THE TAXPAYER Estimated hazardous waste converted (pounds) Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereb . that the representations in this statement are true. Signature uthori ed repretentayn s.._ c4:- U Date signed (month, day, year) 112 II Printed name of authorized representative SCOTT E. OWENS Title PRESIDENT Page 1 of 2 F£1R U5 fF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed under IC 6-1.1-12.1, provides for the following limitations: A. The designated area hs been limited to a period of time not to exceed 1'2 calendar years* (see below). The date this designation expires is 12151 ZOZto B. The type of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements es ❑ y.0 2. Residentially distressed areas ❑ Yes PNo C. The amount of the deduction applicable is limited to $ 1 140 0 100 0 D. Other limitations or conditions (specify) E. Number of years allowed: 'S( ar 1 is Year 6 ❑v'Year 2 Fear 7 E.]'Year 3 t[/Year8 [✓]'ear 4 L Year 9 E'Year 5 (* see below) Fear 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? Rhes ❑ 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) Printed ria`me of 2tuthorized member of designating body s.#4 P es, den -i - Telephone number ($la) a 85 - Date signed (m nth, day, year) ah% Name of designating body Chi erson.)/I�e Common) Cr) nCI I Attested by (signatu7rnid till of attester) (ILi Pri?tetl name of attester 'IL At. VI Jct. Cord' n I Cie rk_ * If the designating body limits the time pe ' during which an area is an economic revitalization area, that limitati n 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. A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1, 2013, the deductions established in IC 6-1.1-12.1-4-1 remain in effect. The deduction period may not exceed five (5) years. 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. The deduction period may not exceed ten (10) years. (See IC 6-1.1-12.1-17 below.) B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. 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. (See IC 6-1.1-12.1-17 below.) 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 PERSONAL PROPERTY State Form 51764 (R3112-13) Prescribed by the Department of Local Govemment Finance FORM SB -1 / PP 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. 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 infomtation 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 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. (IC 6-1.1-12.1-5.6) 5. Fora Form SB-1/PP that is approved alter June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. Fora 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 TAXPAYER INFORMATION Name of taxpayer CHEMTRUSION, INC Name of contact person SCOTT E. OWENS Address of taxpayer (number and street, city, state, and ZIP code) 7115 CLINTON DRIVE, HOUSTON, TX 77020 Telephone number ( 713 ) 675-1616 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body JEFFERSONVILLE CITY COUNCIL Resolution number (s) Location of property 1403 PORT ROAD, JEFFERSONVILLE, IN 47130 County CLARK 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. (Use additional sheets if necessary.) PURCHASE AND INSTALL MORE EFFICIENT COMPOUNDING AND PROCESSING EQUIPMENT WITH THE LATEST TECHNOLOGY ESTIMATED START DATE COMPLETION DATE Manufacturing Equipment 02/15/2015 12/31/2016 R & D Equipment Logist Dist Equipment IT Equipment SECTION 3 Current number 107 SECTION 4 NOTE: Pursuant to IC 6-1.1-12.1-5.1 ESTIMATE OF Salaries $4,400,000 ESTIMATED (d) (2) the EMPLOYEES AND SALARIES Number retained 107 TOTAL COST AND MANUFACTURING EQUIPMENT VALUE AS RESULT OF PROPOSED Salaries $4,400,000 OF PROPOSED PROJECT R & D EQUIPMENT PROJECT Number additional 8 LOGIST DIST EQUIPMENT Salaries IT 256000. EQUIPMENT COST of the property is confidential. COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE Current values 21,000,000 5,700,000 Plus estimated values of proposed project 3,600,000 1,080,000 Less values of any property being replaced Net estimated values upon completion of project 24,600,000 6,780,000 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS Estimated solid waste converted (pounds) PROMISED BY THE Estimated hazardous waste TAXPAYER converted (pounds) Other benefits: SECTION 6 TAXPAYER CERTIFICATION I her ' that the repr ntations in this statement are true. Signatu of a orized re ntativ Date signed (month, day, year) Printed nam authorized representative SCOTT E OWENS Title PRESIDENT & CEO 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 adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12. authorized under IC 6-1.1-12.1-2. �s A. The designat d area has been limited to a period of time not to exceed calendar years * is (9_ at ` 202 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; ales ❑N ❑Yes [r -)'No ❑ Yes []'N o El Yes [14o C. The amount of deduction applicable to new manufacturing equipment is limited to $ 3 (000100 0 D. The amount of deduction applicable to new research and development equipment is limited to $ $ that the applicant meets the general standards 1-2.5, provides for the following limitations as (see below). The date this designation expires cost with an assessed value of 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 $ 0 F. The amount of deduction applicable to new information technology equipment is limited to $ " cost with an assessed value of 0 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: [Year 1 0 Year 6 'Year 2 0 Year 7 [Year 3 0 Year 8 [Year 4 ❑ Year 9 Year 5 (see below *) ❑ 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? 0S(es ❑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' signature and title of ?uthorized member of designating body) Prin ed nam of authorized er of designating body ) SP( GI 1 I !- -e st ePei►l- tt t_ed,,b : (signal and ti le of attester) v-�l. CAS Telephone number (,7 12) a3 1Ma7 Datg signed (month, day, year) Name of designating ody G o�� cs,,o,fIe tem mon delcil PritIted ame of attester l ,r Coy in CIA/ (cl er k * If the designating body limits the timeperiod 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 BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION STATE OF INDIANA A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL APPLICATION FOR TAX ABATEMENT FOR CHEMTRUSION, INC. RESOLUTION NO. 2015-R- 1 WHEREAS, Chemtrusion, 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 Chemtrusion, Inc. Adopted at a meeting of the Jeffersonville Redevelopment Commission held the 2t -til day of Jary,�Q� , 2015. JEFFERSONVILLE REDEVELOPMENT COMMISION 774,d- resider ATTEST: 1/2961557.1