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HomeMy WebLinkAbout2002-R-29RESOLUTION 2002-R- ~-~ RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, Mid-Park, INC. has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in personal property taxes to be assessed on proposed new manufacturing equipment to be used on the property located in the area commonly known as the Clark Maritime Centre, in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, Mid-Park, INC. has submitted an application which includes the Statement of Benefits on the form prescribed by the Indiana State Board of Tax Commissioners for such purpose, which application and statement include a description of the proposed redevelopment, an estimate of the number of individuals who will be employed as a result of the redevelopment, an estimate of the annual salaries of these individuals, and an estimate of the value of the redevelopment, attached hereto as "Exhibit A" and WHEREAS, by Ordinance No. 90-OR-56, on November 7, 1990, the Common Council of the City of Jeffersonville designated the area where the proposed redevelopment project is located in the City of Jeffersonville as an Economic Development Target Area pursuant to Indiana Code 6-1.1-12.1 et seq., specifically lC 6-1.1-12.1-7; and WHEREAS, the City's Department of Redevelopment has reviewed the application and Statement of Benefits submitted by the Applicant and has advised the Common Council that the application has been submitted in compliance with the approved Tax Abatement Policy of the Common Council of the City of Jeffersonville. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Jeffersonville, Indiana, that it specifically and affirmatively finds as follows: 1. That the estimate of the value of the redevelopment is reasonable for projects of the nature described in the Statement of Benefits submitted by the Applicant. 2. That the estimate of the number of individuals who will be employed or whose employment will be retained can reasonably be expected to result from the proposed described redevelopment. 3. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment. 4. That all other information requested from the Applicant has been submitted, and the benefits described in such information can be reasonably expected to result from the proposed described redevelopment. 5. That the totality of benefits for said redevelopment is sufficient to justify the deduction. BE IT FURTHER RESOLVED, that the Common Council of the City of Jeffersonville hereby approves the application and Statement of Benefits as presented and filed by the Applicant, and that said Applicant shall be entitled to deductions for a period of FIVE (5) YEARS for new equipment and machinery, pursuant to the provision of lC 6-1.1-12.1-3(d) and lC 6-1.1-12.1-4(d)(3), with the timely filing and perfection thereof with the Clark County Auditor's office. This Ordinance shall be in full force and effect from and after its passage and approval. Passed this Presiding Officer ATTEST: Peggy Wql~ e~ Clerk and Treasurer this Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville c~ day of O¢~co~0--k_ , 2002. Peggy V~cMr Clerk and Treasurer This Ordinance approved and signed by ~e,t~is /¢¢ d_,ay _of (~ (,,T~om~s R. Gallig~q~M~,¢~ ,2002. PROPERTYTAXABATEMENT 1. Calculate the average wage (divide wages by no. of jobs) 2. Apply average wage to scale to determine maximum abatement per job. 3. Calculate the value of the abatement requested. 4. Divide value of abatement by total number of jobs retained and created to determine the abatement per job. 5. Use the results of step 4 as a guide in conjunction with other relevant factors to determine whether to allow or deny abatement request. Other relevant factors include amount of unabated taxes, importance to the City, hiring practices, etc. Step 1 Calculate the average wage (divide wages by no. of jobs) Wages 1,968,482 NO. of jobs 72 Step 2 Abatement schedule Average Wage 10,000 12,500 15,000 17,500 Maximum abetment amount per job 0 3,000 4,000 5,000 Step 3 Calculate the vaIue of the abatement requested for MACHINERY. TRUE ASSESSED TAX YEAR COST TTV% TAX VALUE VALUE RATE* I 600,000 40% 240,000 80,000 10.0140 2 600,000 56% 336,000 112,000 10.0140 3 600,000 42% 252,000 84,000 10.0140 4 600,000 32% 192,000 64,000 10.0140 5 600,000 24% 144,000 48,000 10.0140 6 600,000 18% 108,000 36,000 10.0140 7 600,000 15% 90,000 30,000 10.0140 8 600,000 15% 90,000 30,000 10.0140 9 600,000 15% 90,000 30,000 10.0140 10 600,000 15% 90,000 30,000 10.0140 Totals for machinery TRUE ASSESSED TAX YEAR COST TTV% TAX VALUE VALUE RATE* 1 0 70% 0 0 10.0140 2 0 70% 0 0 10.0140 3 0 70% 0 0 10.0140 4 0 70% 0 0 10.0140 5 0 70% 0 0 10.0140 6 0 70% 0 0 10.0140 7 0 70% 0 0 10.0140 8 0 70% 0 0 10.0140 9 0 70% 0 0 10.0140 10 0 70% 0 0 10.0140 Totals for Building Totals for Machinery and Building *Rate is net of property tax replacement credit Tax rate 12.1321 Proper~y tax replacement credit 17.4589% Net tax rate 10.0140 Replacement Credit reciprocal 0.825411 Step 4 Divide value of abatement by total number of jobs retained and created. 22,880 Avg. Wage 27,618 20,000 22,500 25,000 27,500 30,000 6,000 7,000 8,000 9,000 10,000 10 YEAR 6YEAR 6YEAR 10 YEAR TAX ABATEMT. ABATEMT. ABATEMT. ABATEMT. 8,011 8,011 8,011 100% 100% 11,216 10,655 10,655 95% 95% 8,412 7,571 6,729 80% 90% 6,409 5,448 4,166 65% 85% 4,807 3,845 2,403 50% 80% 3,605 2,524 0 0% 70% 3,004 1,652 0 0% 55% 3,004 1,202 0 0% 40% 3,004 901 0 0% 30% 3.004 751 O 0% 25% 54.476 42.559 31.965 10 YEAR 6 YEAR 3 YEAR 10 YEAR 3 YEAR 6 YEAR TAX ABATEMT. ABATEMT. ABATEMT. NET TAX ABATEMT. ABATEMT. 0 0 0 0 0 54.47~ Years of Years of Dollar Amount of Machinery Real Estate Amount of #of Abatement Abatement Abatement Abatement Jobs Per Job x 3 0 DIVIDED BY 72 EQUALS $0 x 5 0 DIVIDED BY 72 EQUALS $0 x 10 0 DIVIDED BY 72 EQUALS $0 5 3 31,965 DIVIDED BY 72 EQUALS $444 5 5 31,965 DIVIDED BY 72 EQUALS $444 5 10 31,965 DIVIDED BY 72 EQUALS $444 10 3 42,559 DIVIDED BY 72 EQUALS $591 10 5 42,559 DIVIDED BY 72 EQUALS $591 10 10 42,559 DIVIDEDBY 72 EQUALS $591 0 0 0 0 0 100% 0 0 0 0 0 66% 0 0 0 0 0 33% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 100% 85% 66% 5O% 34% 17% STATEMENT OF BENEFITS State Form 27167 (R5 / 11-95) Form SB - 1 is prescribed by the State Board of Tax Commissioners, t 989 IFORM I SB - 1 INSTRUCTIONS: 1. This statement must be submiffed to the body designating the economic revitilizafion area prior to the public hearing if the designating body requires infor- mation from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted to the des nat ng body BEFORE a person installs the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of real property for which the gperson wishes to claim a deduction. "Projects" planned or committed to after July 1, 1987 and areas designated after July 1, 1987 requl?e a STATEMENTOFBENEFITS. (lC 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment or rehabilitation, or prior to installation of the new manufacturing equipment, BEFORE a deduction may be approved. 3. To obtain a deduction, Form 322 ERA, Real Estate Improvements and / or Form 322 ERA / PP, New Machinery, must be filed with the county auditor. With res ect to real roperty, Form 322 ERA must be filed by the later of: (1) May 10; or (2) th rty (30) days after a notice of increase in real prpperty assessment · P ~. P .......... ,., ........ ~ Form 322 ERA / PP must be ~ ed between March1and May15 ~f the assessment year in wh~ch new manufac- turing equipment becomes assessable, unless a hhng extension has been obtained. A person who obtains a fil~ng extension us he form between Mamh I and June 14 of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF- 1 annually to show compliance with the Statement of Benefits. (IC6-1.1-12.1-5.6) Name of taxpayer Mid-Park, Inc. Address of taxpayer (street and number, city, state and ZiP code) PO Box 326 1021 Salt River Road Leitchfield, KY A1 an Bernard 42755 ~lephone number 270 } 259-3152 Name of designating body Resolution number Oeffersonville City Council Location of property County Taxing district 1302 Port Road Jeffersonville, IN 47130 Clark OeffOity Description of real property improvements and / or new manufacturing equipment ESTIMATED (useaddifi°nalsheetsifnecessarY)Ground & building improvements. StartBate Completion Date New equipment: plasma table, hand weld equip., RealEstate 10/I5/02 I2/06/02 fixtures, industrial saw, flat bed truck and two J forkl i fts. New Mfg Equipment 10/15/02 12/13/02 Current values 1 ~ 300 ~ 000 0 Plus estimated values of proposed project 100,000 600,000 Less values of any property being replaced 0 0 Net estimated values upon completion of project 1 ~ 400 ~ 000 600 ~ 000 Estimated solid waste converted (pounds) Estimated hazardous waste conve )ther benefits; N/A -j STATE OF INDIANA BEFORE THE JEFFERSONV!LLE PLAN COMMISSION Rq RE T~ APPLICATION OF MATT AND LEE ANN KELLER TO REZONE A CERTAIN TRACT OF PROPERTY BEING PART OF SLrRVE¥ NO. 36 OF TME tLLINOIS GRANT FROM C-2 (MEDIUM TO LARGE GENEI~&L COMMERCIAL AND M2: MULTIFAMTLY RESIDENTIAL) TO C2: MEDIUM TO LA.ROE OE-NrERAL COMMERCIAL. C'ERT!YICAT]ON OF FA¥ORABL,E .I'.~COtM'_WIE.h'BAT'{ON M~DE CONCER2~I'MG PROF..OSED ©R1DLMANCE CI-IANGE Whereas, Ma~t and Lee Arm Keller died a petition before the Jeffersonville Plan Commission to change the zoning desi~ation of due property described ~n attached Ex~kibit ,~ (the *'Property"), from C~2 Medium to Large Gener~ Commercial and M2 (Multi-F~mily Residential) to C2: Medium to Large Genial Commercial, and; V~hereas, after proper notice by publication? the Jeffersonvitl¢ Ptau Commission held a public hearing on the petition on August 27~ 2002 and; Whereas, at ~e conclusion of the hearL'~g ~he Yeffersonv/Ile Plan Commission voted by a majority vo~e of its membership ro make a favorable recommendation concerning ~c proposed change of zoning desfgua~/on or,he Property ro 'the leffersonville Common Council. Iq' IS TMEREFOI~E CERT,hF~ED ~at on August 27, 2002, the Jeffetsonville Plan Corn ~ssion male a favormble recommendation concerning the Jeffersonville Co~en Co~ciI mactment by ordln~ce of ~e ~oposed zo~ng desig~tion ch~ge of · e propm~y ~m C-2: Medium ~o La~e G~eral Co~ercial and M2 (Multi-Family Residential) m C2: Medim to L~ge Ge~rj Com~mc~ as requeged {n ~e petition of Matt ~d Lee ~ Keller. ~~~~~ So ce~fied ~s 27 day of Angst 2002. / NOTICE OF INTENT TO CONSIDER PROPOSED CHANGE OF ZONING MAP Notice is hereby given that on the 23rd day of September, 2002, at 7:30 o'clock in the Multi-Purpose Hearing Room on the Third Floor of the City-County Building at 501 East Court Avenue, Jeffersonville, Indiana, the Common Council of the City of Jeffersonville, Indiana intends to consider an ordinance, which, if adopted, xvould change the zoning map designation of the following described property from M2: Multi-Family Residential and C2: Medium to Large General Commercial to entirely C2. DESCRIPTION OF PROPERTY LOCATED IN THE CITY OF JEFFERSONVILLE: PROPERTY ADDRESS: 5016 & 5020 Hwy. 62, Key Nos. 11-24-0310, 11-24-0320, 11-24-0380 and 11-24-0390 The Jeffersonville Plan Connnission made a favorable recommendation concerning the adoption of an ordinance enacting this proposed change of zoning map designation after notice and hearing on August 27, 2002. All interested persons are invited to attend and be heard regarding this matter, l'his Jeffersonville Common Council meeting may be continued from time to time as found necessary. The Jeffersonville Common Council may take official action at the conclusion of debate at this meeting. Such notice given and posted this day of ,2002. PEGGY WILDER Jeffersonville Clerk-Treasurer -I-