HomeMy WebLinkAbout2015-R-8BEFORE THE COMMON COUNCIL
FOR THE CITY OF JEFFERSONVILLE, INDIANA
RESOLUTION NO. 2015-R- g
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PROPOSED PERSONAL PROPERTY TAX ABATEMENTS
WHEREAS, PGP Corporation dba Voss Clark petitioned the Common
Council of the City of Jeffersonville, Indiana, for a deduction in personal property taxes
to be assessed on personal property on a proposed improvement, located at 701 Loop
Road located in the City of Jeffersonville, Clark County, Indiana; and
WHEREAS, PGP Corporation dba Voss Clark, has submitted a Statement of
Benefits on the form prescribed by the Indiana State Board of Tax Commissioners for
personal property, which statements include 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 of 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-
1.1-12.1-5, et seq.; and
1
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
$5,000,000.00 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 132 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 4 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 $5,000,000.00.
5. That all other information requested from PGP Corporation dba Voss Clark 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 is sufficient to justify the
deduction.
2
7. That PGP Corporation dba Voss Clark 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 PGP Corporation dba Voss Clark, 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 1p day of J LJ cJ , 2015.
VOTE
FOR:
VOTED AGAINST:
Passed and adopted by the Common Council of the City of Jeffersonville, Clark
County, Indiana on this 6, day of .J , 2015.
3
sa Gill, Council President
Vicki Conlin, Clerk
Presented by me as Clerk to the Mayor of said City of Jeffersonville this g day of
, 2015.
I 0.1,
This Resolution approved and signed by me this
2015.
Vicki Conlin _Clerk
�I
Mike • ore, Mayor
This Resolution vetoed by me this day of
4
, 2015.
Mike Moore, Mayor
BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION
STATE OF INDIANA
A RESOLUTION RECOMMENDING TO THE COMMOUN COUNCIL
APPLICATION FOR TAX ABATEMENT FOR
PGP CORPORATION DBA VOSS CLARK
RESOLUTION NO. 2015-R- ,
WHEREAS, PGP Corporation dba Voss Clark 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 PGP Corporation dba Voss Clark.
Adopted at a meeting of the Jeffersonville Redevelopment Commission held the
day of Juit4 , 2015.
JEFFERSONVILLE REDEVELOPMENT
COMMISSION
ATTEST:
Secretary
1/2961557.1
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR PGP CORPORATION DBA VOSS CLARK
, 2015
The council will grant a 5 -year abatement on $5,000,000.00 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.
PGP CORPORATION DBA VOSS CLARK
By:
Printed:
Title:
5
Form SB -1 Description Attachment
Voss Clark Equipment Project July 2015
The automotive and steel industries are using more advanced high strength steels in order to
meet the stringent Corporate Average Fuel Economy (CAFE) standards. Voss Clark is in the
process of upgrading its manufacturing equipment in order to effectively process these
advanced high strength steels and maintain its position as a viable steel processor for the
automotive industry. We have recently identified equipment that would allow us to increase
our productivity and efficiency rates.
Replace our Mig Welding System with Fiber Laser Technology and a new entry bridle
ABATEMENT SCHEDULE EXHIBIT
REAL PROPERTY PERSONAL PROPERTY
Year 1-100%
Year 2 — 95%
Year3-80%
Year4-65%
Year 5 — 50%
Year 6 — 40%
Year? -30%
Year8-20%
Year 9-10%
Year 10-5%
Year 11-0%
Year 1 — 100%
Year 2 — 80%
Year3-60%
Year 4 — 40%
Year5-20%
Year 6-0%
STATEMENT OF BENEFITS
PERSONAL PROPERTY
State Form 51764 (R3 / 12-13)
Prescribed by the Department of Local Government Finance
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 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. For a Form 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. (/C 6-1.1-12.1-17)
lFORM 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.
•, - '
Name of taxpayer
PGP Corp DBA Voss Clark
•-v •N
Name of contact person
David Voss
Address of taxpayer (number and street, city, state, and ZIP code)
701 Loop Road, Jeffersonville, IN 47130
Telephone number
( 812 ) 285-7700
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
body
Name of designating
Jeffersonville City Council
Resolution number (s)
Location of property
701 Loop Road, Jeffersonville, IN 47130; Port of Indiana - Jeffersonville
I 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.)
Replace our current Mig Welding System with a new Fiber Laser Technology System
and a new Entry Bridle. (see attachment)
ESTIMATED
START DATE
COMPLETION DATE
Manufacturing Equipment
07/06/2015
03/31/2016
R & D Equipment
Logist Dist Equipment
IT Equipment
SECTION 3
Current number
132
SECTION 4
NOTE: Pursuant to IC 6-1.1-12.1-5.1
ESTIMATE OF
Salaries
9,500,000
ESTIMATED
(d) (2) the
EMPLOYEES AND SALARIES
Number retained
132
TOTAL COST AND
MANUFACTURING
EQUIPMENT
AS RESULT OF PRO°OSED
Salaries
9,500,000
VALUE OF PROPOSED PROJECT
R & D EQUIPMENT
PROJECT
Number additional
4
LOGIST DIST
EQUIPMENT
Salaries
IT
180,000
EQUIPMENT
COST of the property is confidential.
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
Current values
29,325,263
Plus estimated values ofproposed project
5,000,000
Less values of any property being replaced
1,300,000
Net estimated values upon completion of project
33,025,263
SECTION 5 WASTE CONVERTED AND
Estimated solid waste converted (pounds)
OTHER BENEFITS
PROMISED BY THE TAXPAYER
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
Date signed (month, day, year)
(.1.1(.2/fs
I ���va
Printed name of honzed reprpesentattivf
owl
Title
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 desinated area has been limited to a period of time not to exceed W calendar years * (see below). The date this designation expires
is�61) 202L
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;
Erf;s ❑N
❑ Yes B o
❑ Yes
❑ Yes
^^Q �l-o
o
C . The amount of deduction applicable to new manufacturing equipment is limited to $ 50001 000 cost with an assessed value of
$ 15,ow 1 U00
D. The amount of deduction applicable to new research and development equipment is limited to $ n1 Lcost with an assessed value of
$
E. The amount of deduction applicable to new logistical distribution equipment is limited to $ NIA cost with an assessed value of
F. The amount of deduction applicable to new information technology equipment is limited to $
$
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:
KIf Ar
cost with an assessed value of
[Fear 1
0 Year 6
®/fear 2
0 Year 7
la/ear 3
0 Year 8
fear 4 Errear 5
0 Year 9 ❑ 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? aerr ❑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.
roved by: (signature and title of authorized member of designating body)
Telephone number
(3)a) a86 -64a.9
Date signed (month, day, year)
Printed nbme /of7 authorized member of designating body
ki5A c rii lP-esfdefr:
Att d b : (signet and title of attester)
Name of designating body
TeQ`ersonoille Common CGcincf1
Printed name of attt er
V;CA.,i Conlin
* If the designating body limits the tine 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