HomeMy WebLinkAbout2015-OR-56 PROPERTY TAX PHASE-INORDINANCE NO. 2015 -OR- 52
AN ORDINANCE ESTABLISHING GUIDELINES AND PRINCIPLES
FOR CONSIDERATION OF PROPERTY TAX PHASE-IN (TAX ABATEMENT)
FOR JEFFERSONVILLE, INDIANA
WHEREAS, the Common Council for the City of Jeffersonville, Clark
County Indiana (hereinafter the "Council"), is the City's statutory Legislative and
Fiscal Body pursuant to Indiana Code 36-4-6 et seq.;
WHEREAS, The City of Jeffersonville, within Clark County, Indiana,
welcomes and encourages business growth and economic development. City
officials strive to work in a collaborative manner with representatives and
agencies of the State of Indiana, members of the business and civic community,
and other partners to attract new companies and retain existing ones. The City of
Jeffersonville values providing an environment in which businesses and residents
may thrive and prosper.
WHEREAS, Property tax abatement is authorized under Indiana Code 6-
1.1 1-12.1 et seq in the form of deductions from assessed valuation. Any
company or project requesting tax abatement(s) from the City of Jeffersonville
must meet all criteria under the law.
WHEREAS, The City of Jeffersonville is guided by 10 principle beliefs, or
factors, concerning economic development and business growth, and they are
provided below for review by prospective tax abatement applicants. These
principles are among the considerations the city council bears in mind as it
evaluates requests for tax abatement; the responses companies provide to the
city regarding these factors assist the city council in determining the length and
scale of any abatement it may grant:
Firms receiving tax abatement are expected to give local construction
firms and local suppliers of goods and services opportunities to do
business whenever possible.
2. Firms that create a technology-based product or service or use advanced
technology in manufacturing will be given a higher priority.
3. The number of jobs retained and/or created per dollar of investment will be
an important consideration.
4. The level of wages and benefits will be a highly important consideration for
all applications.
5. Projects that will require variances, special exceptions and/or exemptions
will require additional review.
1
6. Adverse environmental impacts will negatively affect the consideration of
abatement.
7. Any need for additional public infrastructure or other additional public
support for the project will be considered in determining the length and
scale of the abatement. Support of additional infrastructure will be
considered as a local incentive to the applicant.
8. The time period of depreciation of equipment will be considered in the
length of and scale of any abatement for personal property (equipment,
machinery).
9. In the event the Economic Revitalization Area (ERA) is terminated
because the property is removed from the city, the city council may require
the company to repay the city all or a portion of the personal property tax
savings the company realized as a result of the ERA designation.
10.A limited tax abatement may be considered in a Tax Increment Finance
(TIF) District.
WHEREAS, in addition, the city council may deviate from these 10
principles and grant more or less tax abatement for longer or shorter periods of
time (but not to exceed 10 years) on a case-by-case basis, as long as all
requirements of Indiana law are met. The city council may, in its sole discretion,
determine that certain projects should not receive any tax abatement, no matter
the outcome using the schedules outlined in this document.
NOW, THEREFORE, BE IT RESOLVED by the Common Council as
follows:
1. That the City of Jeffersonville Common Council hereby establishes the
guidelines and principles for consideration of property tax phase-in (tax
abatement) for Jeffersonville, Indiana as set forth in this Ordinance and
further adopts the Tax Abatement Application Score Sheet as set forth
in Exhibit "A" which is attached to this Ordinance.
2. That this Ordinance shall be effective immediately upon passage and
adoption.
Voted For:
2
Voted Against:
CTS
.�►� a n1I e
PASSED AND RESOLVED by the Common Council of the City of
Jeffersonville, Clark County, Indiana, upon this /9 day of ad— , 2015.
TTEST:
Vicki Conlin, erk
City of Jeffersonville
ill, President
Jeffersonville Common Council
PRESENTED by me to the May r ot the City of Jeffersonville Clark County,
Indiana upon th�� day oiC �i?.c,..� , 2015.
Vicki Conlin, Clerk
City of Jeffersonville
SIGNED and APPROVED by me upon this , k-kday ofv
2015.
3
6z/
Mike Moo - Mayor
-6-itr o\
#- '\\ GUIDELINES AND PRINCIPLES FOR CONSIDERATION OF
''-, m' PROPERTY TAX PHASE-IN (TAX ABATEMENT)
e7�� IN JEFFERSONVILLE, INDIANA
so i
The City of Jeffersonville, within Clark County, Indiana, welcomes and encourages business growth and
economic development. City officials strive to work in a collaborative manner with representatives and
agencies of the State of Indiana, members of the business and civic community, and other partners to
attract new companies and retain existing ones. The City of Jeffersonville values providing an
environment in which businesses and residents may thrive and prosper.
Property tax abatement is authorized under Indiana Code 6-1.1 1-12.1 et seq in the form of deductions
from assessed valuation. Any company or project requesting tax abatement(s) from the City of
Jeffersonville must meet all criteria under the law.
The City of Jeffersonville is guided by 10 principle beliefs, or factors, concerning economic development
and business growth, and they are provided below for review by prospective tax abatement applicants.
These principles are among the considerations the city council bears in mind as it evaluates requests for
tax abatement; the responses companies provide to the city regarding these factors assist the city
council in determining the length and scale of any abatement it may grant:
1. Firms receiving tax abatement are expected to give local construction firms and local suppliers
of goods and services opportunities to do business whenever possible.
2. Firms that create a technology-based product or service or use advanced technology in
manufacturing will be given a higher priority.
3. The number of jobs retained and/or created per dollar of investment will be an important
consideration.
4. The level of wages and benefits will be a highly important consideration for all applications.
5. Projects that will require variances, special exceptions and/or exemptions will require additional
review.
6. Adverse environmental impacts will negatively affect the consideration of abatement.
7. Any need for additional public infrastructure or other additional public support for the project
will be considered in determining the length and scale of the abatement. Support of additional
infrastructure will be considered as a local incentive to the applicant.
8. The time period of depreciation of equipment will be considered in the length of and scale of
any abatement for personal property (equipment, machinery).
9. In the event the Economic Revitalization Area (ERA) is terminated because the property is
removed from the city, the city council may require the company to repay the city all or a
portion of the personal property tax savings the company realized as a result of the ERA
designation.
10. A limited tax abatement may be considered in a Tax Increment Finance (TIF) District.
In addition, the city council may deviate from these 10 principles and grant more or less tax abatement
for longer or shorter periods of time (but not to exceed 10 years) on a case-by-case basis, as long as all
requirements of Indiana law are met. The city council may, in its sole discretion, determine that certain
projects should not receive any tax abatement, no matter the outcome using the schedules outlined in
this document.
Page 1 of 9 Effective as of DATE
GUIDELINES FOR CONSIDERATION OF PROPERTY TAX ABATEMENT
JEFFERSONVILLE, INDIANA
Projects will be considered for abatement only if:
1. The company/project meets all of the criteria set forth under I.C. 6-1.1 1-12.1 et seq in the form
of deductions from assessed valuation.
2. The proposed new investment includes at least $1 million of real property and/or personal
property that qualifies for tax abatement.
3. Construction has not begun and/or equipment has not been ordered or the equipment will be
new to the State of Indiana.
4. In addition, if the applicant is not the company, authorization of the application must be
obtained from the company.
TAX ABATEMENT APPLICATION SCORE SHEET
Applicant Name:
I Application Date: i
Company:
Street Address:
City, State, ZIP:
Phone:
>'Email:
Company Name:
(if different from applicant):
Street Address:
City, State, ZIP:
Website:
Street Address of Project Location:
City, State, ZIP:
Project Description:
PROJECT COMPOSITION: (6 points possible). if more than
the scenario with the highest point value.
one scenario applies, use only
POINTS
POINTS
6
POINTS
Personal Property Improvements
8
2
Real Property Improvements
Existing Facility — addition of manufacturing/warehousing
space
4
Personal Property and Real Property Improvements
14
6
16
SCORE
18
ACTIVITY DETAIL: (18 points possible). !f more than one scenario
scenario with the highest point value.
applies, use only the
POINTS
POINTS
6
Existing Facility — new office addition
Existing Facility — expanding or upgrading existing product
line
8
Existing Facility — adding new product line
10
Existing Facility — addition of manufacturing/warehousing
space
12
New Research & Development Facility
14
New Corporate Regional Office or Headquarters Building
16
New Industrial (manufacturing), Warehousing or Logistics
Facility
18
SCORE
EXISTING VACANT STRUCTURE: (15 points possible). Wilt this project reactivate a facility
that has been vacant for at least 12 months?
POINTS
Location will NOT reactivate a vacant facility
0
Location WILL reactivate a vacant facility
15
SCORE
PROJECT CAPITAL INVESTMENT: (20 points possible). What is the total capital
investment for this project? Use only the applkable scenario with the highest point
value.
$1 million — $4,999,999
$5 million — $9,999,999
POINTS
10
15
$10 million or more 20
SCORE
JOB RETENTION: (14 points possible). How many full-time
result of this project? Use only the applicable scenario with
positions will be retained as a
the highest point value.
scenario with the highest
POINTS
1— 9 retained jobs
2
10 —19 retained jobs
4
20 — 29 retained jobs
6
30 — 49 retained jobs
8
50 — 99 retained jobs
10
100 — 499 retained jobs
12
500 or more retained jobs
14
500 or more retained jobs
SCORE
14
NEW JOB CREATION: (14 points possible).
created as a result of this project? Use
point value.
How many net new full-time positions will be
only the applicable
scenario with the highest
2 times current minimum wage
POINTS
1— 9 new jobs
2
10— 19 new jobs
4
20 — 29 new jobs
6
30 — 49 new jobs
8
50 — 99 new jobs
10
100 — 499 new jobs
12
500 or more retained jobs
SCORE
14
SCORE
AVERAGE WAGE: (14 points possible). Utilizing the average
positions for this project and using the current state minimum
does the average wage of this project compare to the current
the applicable scenario with the highest point value.
wage of all full-time
wage as a benchmark, how
minimum wage? Use only
POINTS
2 times current minimum wage
2
2.5 times current minimum wage
4
3 times current minimum wage
6
3.5 times current minimum wage
8
4 times current minimum wage
10
4.5 times current minimum wage
12
5 times current minimum wage (or higher)
14
SCORE
EMPLOYER-SPONSORED HEALTH AND WELLNESS BENEFITS: (5 points possible). Will the
company provide employer-sponsored health and wellness benefits at this location?
What percentage
Use only the applicable
POINTS
Location will NOT provide employer-sponsored health and
wellness benefits at this location
0
Location WILL provide employer-sponsored health and
wellness benefits at this location
5
SCORE
WORKPLACE WELLNESS: (5 points possible). Will the company encourage and promote
workplace wellness through employee participation in exercise and healthy living
programs?
What percentage
Use only the applicable
POINTS
Company will NOT promote workplace wellness through
employee participation in exercise and healthy living
programs
0
Company WILL promote workplace wellness through
employee participation in exercise and healthy living
programs
5
SCORE
EMPLOYER-SPONSORED RETIREMENT PLAN: (5 points possible). Will the company
provide an employer-sponsored retirement plan at this location?
Company will NOT provide an employer-sponsored
retirement plan at this location
Company WILL provide an employer-sponsored
retirement plan at this location
SCORE
BENEFITS PACKAGE: (8 points possible).
compensation package are fringe benefits?
highest point value.
What percentage
Use only the applicable
of your employees' total
scenario with the
POINTS
0%
0
1-10%
2
11— 15%
4
16-20%
6
21— 30% or higher
8
SCORE
DIVERSITY: (7 paints possible). Will the company have a diversity and inclusion policy in
effect at this location?
Please provide a description of all green technologies to be utilized at this location here:
POINTS
Company will NOT have a diversity and inclusion policy at
this location
0
Company WILL have a diversity and inclusion policy at this
location
7
SCORE
7
GREEN TECHNOLOGY: (7 points possible). Will the company utilize green technology at
this location?
Please provide a description of all green technologies to be utilized at this location here:
POINTS
Company will NOT utilize green technology at this
location
0
Company WILL utilize green technology at this location
7
SCORE
GREEN INITIATIVES AND SUSTAINABILITY ACTIVITIES: (7 paints possible). Will the
company implement programs designed to support sustainability through employee ride
sharing, public transportation use, on -campus dining options or other initiatives?
Please provide a description of all green initiative programs to be utilized at this
location here:
POINTS
Location will NOT implement green initiative programs
0
Location WILL utilize green initiative programs
7
SCORE
COMMUNITY INVOLVEMENT: (20 points possible). The City of Jeffersonville will look
favorably on companies that are involved in the community. The city will consider past
and/or current community involvement of an existing company or proposed community
involvement of a new company. Community involvement may include projects associated
with the city, schools, local non-profit organizations, senior citizens, disadvantaged
individuals or groups, day cares, etc. Community involvement must be documented and
applicable documents attached to this Score Sheet.
Please provide a narrative of community involvement here:
Date:
POINTS
Location will NOT be supporting projects associated with
the city, schools, local non-profit organizations, senior
citizens, disadvantaged individuals or groups, day cares,
etc.
0
Location WILL be supporting projects associated with the
city, schools, local non-profit organizations, senior
citizens, disadvantaged individuals or groups, day cares,
etc.
20
SCORE
TOTAL PROJECT SCORE: Please add all above scores together and provide the total below
TOTAL OF ALL ABOVE SCORES I
SIGNATURES
Signature of Applicant:
Print Name:
Signature of Company
Representative:
(if different from applicant):
Date:
Print Name:
GUIDELINE FOR REAL PROPERTY TAX ABATEMENT
TOTAL SCORE
1-9
Abatement Year
1
Abatement Percentage
100%
10 — 19
100%
75%
20-29
3
100%
75%
25%
30-39 1
100%
75%
3
50%
25%
40-49
100%
2
100%
3
75%
50-59
5
50%
25%
100%
2
100%
3
4
80%
60%
40%
20%
60-69
1
100%
2
100%
3
4
90%
80%
5
60%
40%
20%
70 — 79
100%
2
100%
3
90%
4
80%
5
70%
6
60%
40%
20%
80 — 89
100%
100%
90%
80%
5
70%
60%
7
50%
40%
20%
90-99
2
3
4
5
6
8
9
10
100%
100%
90%
80%
70%
60%
50%
40%
30%
20%
100+
1
2
3
4
5
6
7
8
9
10
100%
100%
95%
90%
80%
70%
60%
50%
40%
20%
GUIDELINE FOR PERSONAL PROPERTY TAX ABATEMENT
TOTAL SCORE
1— 39
Abatement Year
1
Abatement Percentage
100%
40-59
100%
2
50%
60-79 1
2
80 — 90
100%
50%
40%
100%
50%
40%
..............................
20%
2
3
4
100%
50%
40%
20%
10%