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Home My WebLink About2002-R-32RESOLUTION 2002-R- ~,?- RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, AMATROL 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 in, and in real property taxes to be assessed on proposed improvements to be made on, property located in the area commonly known as the Northport Development, in the City of Jeffersonville, Clark County, Indiana; and, WHEREAS, AMATROL 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, 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, shall be entitled to deductions for a period of FIVE (5) YEARS for new equipment and machinery and TEN (10) YEARS for improvements to real property, pursuant to provisions of I.C. 6-1.1-12.1-3(d) and I.C. 6-1.1-12.1-49(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 ATTEST: Clerk and Treasurer __ day of ~o~¢r~¢ ~ , 2002. this Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville (c) day Peggy ~i~l~ Clerk and Treasurer This Ordinance approved and signed.by me/t~is_~- d..gy/~o~f/~ ,2002. STATEMENT OF BENEFITS State Form 27167 (RE / 11-95} Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989 FORM SB - 1 INSTRUCTIONS: I. This statement must be submitted to the body designating the econom c rev/fi izat on area prior o the public hearing if the designating body requires infor- mation from the applicant in making its dec e on 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, or BEFORE he redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. "Projects" planned er commft~ed to after July I, 1967 and areas designated after July 1, 1987 require a STATEMENT OF BENEFITS. (lC 6-I. 1-12.1) 2. Approva of the designating body (City Council, Town Board, County Council, etc.) must be obtained pdor to initiation of the redevelopment or rehabilitation, or pdor to installation of the new manufacturing equipment, BEFORE a deduct on 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 respect to real property, Form 322 ERA must be filed by the later of: (1) May 10; or (2) thirty (30) days after a notice of increase in real property assessment is received from the township assessor. Form 322 ERA / PP must be filed between March I and May 15 of the assessment year in which new manufac- turing equipment becomes assessable, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March 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. (lC 6-1.1-12.1-5.6) Name of taxpayer AMATROL, INC. Address of taxpayer (street and number, city, state and ZIP code) 1638 PRODUCTION RD, JEFFERSONVILLE, TN 47130 Name of contact person ~lephone number ROBERTA E. PERKINS ~]? ?RR-R?R~ Name of designating body Resolution number CITY OF JEFFERSONVILLE, CITY COUNCIL ' Location of property County Taxing district Northport Dev. adjacent to 2~40 Centennial Dr~v~ C~ARK Description of rea~ property improvements and / ~'¢ new manufacturing equipment ESTIMATED fuse additional sheets if necessary) Start Date Completion Date 83,000 sq ft. office & manufacturing bldg. on Real Estate O1 12o01 Acres New Mfg Equipment New manufacturina equipment bo suoport expansion 1 ?./0~ 1 ?/04 NOTE: Pursuant to lC 6-1 ;1-12.1-5.1 (d) (2~ the COST of the property is confidential. Assessed Value i Assessed Value Current values I Plus estimated values of proposed project I Less values of any properly being replaced Net estimated values upon completion of project 5 ~ OOO, 000. CO ~ I 500 ~ OC~O _ Estimated solid waste converted (pounds) Other benefits: Estimated hazardous w~ste conver~ed (pounds) Date signed /month, day, year) We have reviewed our ~nor actions relating to the designation of this economic rewtalization area and find that the apphcant meets the general standards adopter~ in the resotut~on previously approved Dy this body. Said resolution. ~asseo under lC 6-1.1-12.1-2.5. pro- vides for the following m[tat~ons as authorized unoer lC 6-1.1-12.1-2. A. The designated area has been limited to a oeriod of time not [o exceed calendar years ' (see below). The date this designation expires is B. The type of deduction that is allowec in the designated area ~s lim~teo to: 1. Redevelopment or rehabilitation of real estate improvements; [] Yes [- N o 2. Installation of new manufacturing equipment; [] Yes [] NO 3. Residentially distressed areas [] Yes [] No C .The amount of deduction applicable for new manufacturing equipment is imited to $ cost with an assessed value of $ D .The amount of deduction applicable to redeve[oDmem or rehabilitation ~s limited to $ cost with an assessed value of $ E. Other limitations or conditions (specify) F. The deauct~on for new manufacturing eauiomem instal ed and first claimed elig~ole for deduction after July 1. 1991 is allowed for: [] 5 years '-I 10 years The deauct~on oeriod will be five ',5) years unless the designating body has b~, resolution soec fled the ten (10) year period. Aisc we have reviewed the informauon contame~: in the statement of benefits ann find that the estimates and expectations are reason- able and have determined that the totality of benefits ~s sufficient to justify the deduCbon aescribed above. ~,pproved: (signature and title of autnonzeo memoer TeleDi~one numoer Date signed (monrn. day, yearl ~,ttested by: Designated cony * If the designating body limits the time period during which an area ~s an economic rev[tilizat~on area, it does not limit the lengm of time a taxpayer is entitlea to receive a deduction to a number of years aes~gnated under lC 6-1 .t -12.1-4 or 4.5 Namety: ,see tables below) Year of Deduction 1 st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 10O% 95% 8O% 65% 50% 10O% 95% 9O% 85% 80% 70% 55% 4O% 3O% 25% Year of Three (3) Year Six (6) Year Ten (10) Year Deduction Deduction Deduction Deduction 1 st 100% 100% 100% 2nd 66% 3rd 33% 4th 5th 6th 7th 85% 95% 66% 80% 50% 65% 34% 50% 17% 40% 30% 20% 8th 9th 10% 10th 5% PROPERTY TAX ABATEMENT 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 5,035,800 No. of jobs 22,880 133 avg. Wage 37,863 Step 2 Abatement schedule Average Wage 10,000 12,500 15,000 17,500 20,000 Maximum abatment amount per job 0 3,000 4,000 5,000 6,000 Step 3 Calculate the value of the abatement requested for MACHINERY. TRUE ASSESSED TAX YEAR COST TTV% TAX VALUE VALUE RATE* 1 500,000 40% 200,000 66,667 10.0140 2 500,000 56% 280,000 93,333 10.0140 3 500,000 42% 210,000 70,000 10.0140 4 500,000 32% 160,000 53,333 10.0140 5 500,000 24% 120,000 40,000 10.0140 6 500,000 18% 90,000 30,000 10.0140 7 500,000 15% 75,000 25,000 10.0140 8 500,000 15% 75,000 25,000 10.0140 9 500,000 15% 75,000 25,000 10.0140 10 500,000 15% 75,000 25,000 10.0140 Totals for rhachinery 22,500 25,000 27,500 30,000 7,000 8,000 9,000 10,000 10 YEAR 6YEAR 6YEAR 10 YEAR TAX ABATEMT. ABATEMT. ABATEMT. ASATEMT. 6,676 6,676 6,676 100% 100% 9,346 8,879 8,879 95% 95% 7,010 6,309 5,608 80% 90% 5,341 4,540 3,472 65% 85% 4,006 3,204 2,003 50% 80% 3,004 2,103 0 0% 70% 2,503 1,377 0 0% 55% 2,503 1,001 0 0% 40% 2,503 751 0 0% 30% 2.503 626 0 0% 25% 45397 35.466 26.637 TRUE ASSESSED TAX 10 YEAR 6 YEAR 3 YEAR 10 YEAR 3 YEAR 6 YEAR yEAR COST TTV% TAXVALUE VALUE RATE* TAX ABATEMT. ABATEMT. ABATEMT, NET TAX ABATEMT. ABATEMT. 1 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 116,830 116,830 116,830 0 2 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 110,988 99,305 77,108 5,841 3 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 93,464 77,108 38,554 23,366 4 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 75,939 58,415 0 40,890 5 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 58,415 39,722 0 58,415 6 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 46,732 19,861 0 70,098 7 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 35,049 0 0 81,781 8 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 23,366 0 0 93,464 9 5,000,000 70% 3,500,000 1,166,667 10.0140 116,830 I1,683 0 0 105,147 10 5,000,000 70% 3,500,000 1,166,667 10.0140 116.830 5.841 O 0 110,988 Totals for Building 1.168.296 578.307 411.240 232.491 589,990 Totals for Machinew and Building 1.213.693 ~ *Rate is net of property tax replacement credit Tax rate 12,1321 Propedy 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. Years of Years of Dollar Amount of MachineW RealEstate Amountof #of Abatement Abatement Abatement Abatement Jobs Per Job x 3 232,491 DIVIDED BY 133 EQUALS $1,748 x 5 411,240 DIVIDED BY 133 EQUALS $3,092 x 10 578,307 DIVIDEDBY 133 EQUALS $4,348 5 3 259,128 DIVIDEDBY 133 EQUALS $1,948 5 5 437,877 DIVIDED BY 133 EQUALS $3,292 5 10 604,944 DIVIDED BY 133 EQUALS $4,548 10 3 267,957 DIVIDEDBY 133 EQUALS $2,015 10 5 446,706 DIVIDEDBY 133 EQUALS $3,359 10 10 613,773 DIVIDED BY 133 EQUALS $4,615 100% 100% 66% 85% 33% 66% 50% 34% 17% I I