HomeMy WebLinkAbout2002-R-33RESOLUTION 2002-R-_~_~
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY TAX ABATEMENT
WHEREAS, DALLMANN SYSTEMS, INC. has petitioned the Common Council of
the City of Jeffersonville, Indiana, for a deduction in real property taxes to be assessed on
proposed improvements to be made on property located in the area commonly known as
the Clark Maritime Centre, in the City of Jeffersonville, Clark County, Indiana; and
WHEREAS, DALLMANN SYSTEMS, 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
'IExhibit 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 Dy the
Applicant, shall be entitled to deductions for a period of TEN (10) YEARS for improvements
to real property, pursuant to provisions of I.C. 6-1.1-12.1-$(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 .,~
. day of ~, 2002.
Presiding Officer
ATTEST:
Peggy W~l~e r
Clerk and Treasurer
~ Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville
this. (L) day of~Ot)'¢-~, 2002.
Peggy
Clerk and Treasurer
This Ordinance approved and sig~ ,2002.
STATEMENT OF BENEFITS
State Form 27167 (R5 / tl-g5)
Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989
FORM
SB - 1
INSTRUCTIONS:
1. This statement must be submitted to the body designating the econom c revit ization area prior to the public hearing if the designating body requires infer-
mation 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, or BEFORE the redevelopment or rehabilitation Of real property for
which the person wishes to claim a deduction. "Projects" planned or committed to after July 1, 1987 and areas designated after July 1, 1987 require a
STATEMENT OF BENEFITS. (IC6-1 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, Rea Estate mprovements 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) th rty (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 1 and May 15 of the assessment year in wh ch 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 1 and June 14 of that yea~
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)
r, ci~
person
Telephone number
Resolution number
Nam~desi~a,T~g body I/.
Location of property__ ~ / County _ i Taxing district
)ascription of real proper~y imp¥~ve'ments and / or new manufacturing equipment ESTIMATED
'use additional sheets if negessary) Star~ Date Completion Date
New Mfg Equipment
Current values
Plus estimated values of proposed project
Less values of any propedy being replaced
Net estimated values upon completion of project
Estimated solid waste converted (pounds)
Other benefits:
Estimated hazardous waste converted (pounds)
~[s statement are true. _ ......
I ~d (month, day, year)
We have reviewed our prior act OhS relating to the designation of this economic revitalization area and find that the applicant meets the
genera standards adopted in the resolution previously approved by this body. Said resolution, passed under lC 6-1.1-12.1-2.5, pro-
vides for the following [imitations as authorized under lC 6-1.1-12.1-2.
A. The designated area has been limited to a period of time not to exceed calendar years * (see below). The date this
designation expires is
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements; [] Yes [] N o
2. Installation of new manufacturing equipment; []Yes I~No
3. Residentially distressed areas [] Yes [] No
C .The amount of deduction applicable for new manufacturing equipment is limited to $ cost with an assessed
value of $
D .The amount of deduction applicable to redevelopment or rehabilitation is limited to $ cost with an assessed
value of $
E. Other limitations or conditions (specify)
F. The deduction for new manufacturing equipment installed and first claimed eligible for deduction after July 1, 1991 s al owed for:
[] 5 years [] 10 years The deduction period wilt be five (5) years unless the designating body has by resolution specified the ten (10) year period.
Aisc we have reviewed the information contained in the statement of benefits and f nd that the estimates a8d expectations are reason-
able and have determined that the totality of benefits is sufficient to iustify the deduction described above.
Approved: (signature and title of authorized member) Telephone( ) number Date signed (month, dayLyear) , ,
Attested by: Designated body
* If the designating body limits the time period during which an area is an economic revitilization area, it does not limit the length of time~
a taxpayer is entitled to receive a deduction to a number of years designated under lC 6-1.1-12.1 -4 or 4.5 Namely: (see tables below)
Year of Five (5) Year Ten (10) Year
Dedudtion ,~ Percentage Percentage
1 st 100% 100%
2nd 95% 95%
3rd 80% 90%
4th 65% 85%
5th 50% 8O%
6th 70%
7th
8th
9th
55%
4O%
30%
10th 25%
Year of
Deduction
1 st
Three (3) Year Six,(6) Year Ten (10),Year
Deduction ' Deduction Deduction
100% i 00% 100%
2nd 66% 85% 95%
3rd 33% 66% 80%
4th
5th
50% 65%
34% 5O%
6th 17%
7th
8th - '
9th
10th
4O%
3O%
2O%
1 O%
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, Calcu[ate 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 pract[ces, etc.
Step 1
Calculate the average wage (divide wages by no. of jobs)
Wages 578,000 No. of jobs
22 Avg. Wage 26,273
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
Calculata the value of the abatement requested for MACHINERY.
TRUE ASSESSED TAX
YEAR COST TTV% TAX VALUE VALUE RATE*
I 0 40% 0 0 10.0140
2 0 56% 0 0 10.0140
3 0 42% 0 0 10.0140
4 0 32% 0 0 10.0140
5 0 24% 0 0 10.0140
6 0 18% 0 0 10.0140
7 0 15% 0 0 10.0140
8 0 15% 0 0 10.0140
9 0 15% 0 0 10.0140
10 0 15% 0 0 10.0140
Totals for machinery
22,500 25,000 27,500 30,000
7,000 8,000 9,000 10,000
TAX
10 YEAR 6 YEAR 6 YEAR 10 YEAR
ABATEMT. ABATEMT. ABATEMT. ABATEMT.
0 0 0 100% 100%
0 0 0 95% 95%
0 0 0 80% 9O%
0 0 0 65% 85%
0 0 0 50% 80%
0 0 0 0% 70%
0 0 0 0% 55%
0 0 0 0% 40%
0 0 0 0% 30%
0 O 0 0% 25%
Years of Years of Dollar Amount of
Machinen/ Rea[ Estate Amount of #of Abatement
Abatement Abatement Abatement Jobs Per Job
x 3 22,445 DIVIDED BY 22 EQUALS $1,020
x 5 39,702 DIVIDED BY 22 EQUALS $1,805
x 10 55,831 DIVIDED BY 22 EQUALS $2,538
5 3 22,445 DIVIDED BY 22 EQUALS $1,020
5 5 39,702 DIVIDED BY 22 EQUALS $1,805
5 10 55,831 DIVIDED BY 22 EQUALS $2,538
10 3 22,445 DIVIDED BY 22 EQUALS $1,020
10 5 39,702 DIVIDED BY 22 EQUALS $1,805
10 10 55,831 DIVIDED BY 22 EQUALS $2,538
Step 4
Divide value of abatement by total number of jobs retained and created.
*Rate is net of property tax replacement credit
Tax rate 12.1321
Property tax replacement credit 17.4589%
Net tax rate 10.0140
Replacement Credit reciprocal 0.825411
TRUE ASSESSED TAX 10 YEAR 6 YEAR 3 YEAR 10 YEAR 3 YEAR 6 YEAR
YEAR COST TTV% TAXVALUE VALUE RATE* TAX ABATEMT. ASATEMT. ABATEMT. NETTAX ABATEMT. ABATEMT.
1 482,707 70% 337,895 112,632 10.0140 11,279 11,279 1:1,279 11,279 0 100% 100%
2 482,707 70% 337,895 112,632 10.0140 11,279 10,715 9,587 7,444 564 66% 85%
3 482,707 70% 337,895 112,632 10.0140 11,279 9,023 7,444 3,722 2,256 33% 66%
4 482,707 70% 337,895 112,632 10.0140 11,279 7,331 5,639 0 3,948 50%
5 482,707 70% 337,895 112,632 10.0140 11,279 5,639 3,835 0 5,639 34%
6 482,707 70% 337,895 112,632 10.0140 11,279 4,512 1,917 0 6,767 17%
7 482,707 70% 337,895 112,632 10.0140 11,279 3,384 0 0 7,895
8 482,707 70% 337,895 112,632 10.0140 11,279 2,256 0 0 9,023
9 482,707 70% 337,895 112,632 10.0140 11,279 1,128 0 0 10,151
10 482,707 70% 3371895 112,632 10.0140 11.279 564 0 0 10,715
Totals for Building 112.789 55.831 39.702 22.445 56,958
Totals for Machinery and Building 112.789 55.831