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Home My WebLink About2002-R-34RESOLUTION 2002-R- RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, FedX Ground Package 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, FedX Ground Package 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 "Exhibit A" and WHEREAS, the Common Council of the City of Jeffersonvilie 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 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: . day of t~O~., 2002. Presiding Officer Clerk and Treasurer Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville this _._LD.~ day of t~r-,~,~-,~b,~ 2002. Peg~ ¢¢ifder Clerk and Treasurer This Ordinance approved and signed byme~this ~- dayof ~ , 2002. ~ -F~mas R. Gall'ig~n,~a~Y ' STATEMENT OF BENEFITS I FORM State Form 27167 (R614-00) I SB - '~ malion from the applicant in making its decision about whether to designate an Economic Revitalization Area, Oth, erw/ne this.statement ~nust b_e~u.,b~rn~g~.~d te the designating bcd BEFORE a person installs the new manufacturing equipment and I or research and aeve~opmem equ~pman[, or =~-v~= me redevelopment or reha~litation of real property for which the person wishes to claim a deduction. "Prejec~" planned or committed to after July f, fg87 and areas designated after July 1, lg87 require a STATEMENT OF BENEFITS. (lC 6-I. f-f2.1) 2. Approval 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 and I or research and development equipment, BEFORE a deduction may be approved. 3. T~btainadeduc~n~F~rm322ERA~Rea~Estate~mprovementsand~rF~m1322ERA~PPMEand~r322ERA/PPR&DE~mustbe~iodwlihtheseun~y auditor. With rsepect to real property, Form 322 ERA must be filed by the later of' ( f ) May t O; or (2) thftty (30) days after a notice of increase in real property assessment is received from the township assessor. Form 322 ERA I PPME and / or 322 ERA PPR & DE must be filed between March I and May 15 of the assessment year in which new manufacturing equipment and I or research and dev. e. lop~ne~nt eq. u. ipme.nt, be. .,com, es arr.SSessabio, unless a filteg extension has been chtainnd. A person who obtains a tiling extension must file the form bstwsen March 7 eno June 7 4 OT rna[ yea. 4. Preper~v owners whose Statement of Benefits was approved after June 30, 199f must submit Form CF- 1 annually to show compliance with the Statement of Benefits. (lC 6-f.f-12.1-5.6) 5. The schedu~esestab~tshedunder~C6-1~1-12~1-4(d)and~c6-~1~12~1-4~5(e)e~ectiveJu~y1~2~pp~yt~anystatamentufbene~s~ted~n~r~fter July 1, 2000. The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits filed before July f, 2000. Name of taxpayer FedEx Ground Package System, Inc. ~dd~'=ss of taxpayer (street and number, city, state and ZIP code) 1000 FedEx Drive, Moon Township, PA 15108 Name of contact person Telephone number Lowell G. Marque[te, Senior Manager- Taxes ( 412 ) 262-6267 Name of de. signaling body Resolution number Common Council of the City of Jeffersonville Location of property County Taxing district 5153 Madtime Road C an~ City of Jeffersonville Descrtpt~n of real property improvements and I or new manufacturing equipment and / or ESTIMATED research and development equipment (use additionalsheets ffnecessary) Start Date Complelion Date The proposed project includes a 15,348 square feet expansion of FedEx Ground's existing 73,628 square feet distribution facility, Real Estate November 2002 August 2003 New Mfg Equipment N/A N/A R & DE N/A N/A Current number Salades Number retained i Satsrise Number additional Salaries 152 $4,800,000 152 -- $~t,800,000 92 ,2,500,000 Research and Development NOTE: Pursuant to lC 6-1.1-12.1-5.1 (d) (2) the Real Estate Improvements Machine~j Equipment Current values $1,902,600 Less values of any property being m~r~l N/A N/A Other benef'~: The proposed project will also include the installation of approximately $500,000 in new material handling equipment. Note: Employee numbers listed above include fell-time employees, part-time employees, and full-time independent contractors. In addition, the number of additional positions created as a result of this expans on will take pi, ace over a four-year pedod. I hereby certify that the representabions in this Statement are true. ~'/~ ,~ ./~'/~ Senior Manager, Taxes 10/21/02 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 7,300,000 No. of jobs 244 22,880 Avg, Wage 29,918 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' 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% 90% 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 0 0 0% 25% Step 4 Divide value of abatement by total number of jobs retained and created. Years of Years of Dollar Amount of Machinery Real Estate Amount of #of Abatement Abatement Abatement Abatement Jobs Per Job x 3 120,895 DIVIDED BY 244 EQUALS $495 x 5 213,845 DIVIDED BY 244 EQUALS $876 x 10 300,719 DIVIDEDBY 244 EQUALS $1,232 5 3 120,895 DIVIDED BY 244 EQUALS $495 5 5 213,845 DIVIDED BY 244 EQUALS $876 5 10 300,719 DIVIDED BY 244 EQUALS $1,232 10 3 120,895 DIVIDEDBY 244 EQUALS $495 10 5 213,845 DIVIDED BY 244 EQUALS $876 10 10 300,719 DiViDED BY 244 EQUALS $1,232 *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. ABATEMT. ABATEMT. NET TAX ABATEMT. ABATEMT. I 2,600,000 70% t ,820,000 606,667 10.0140 60,751 60,751 60,751 60,751 0 100% 100% 2 2,600,000 70% 1,820,000 606,667 10.0140 60,751 57,714 51,639 40,096 3,038 66% 85% 3 2,600,000 70% 1,820,000 606,667 10.0140 60,751 48,601 40,096 20,048 12,150 33% 66% 4 2,600,000 70% 1,820,000 606,667 10.0140 60,751 39,488 30,376 0 21,263 50% 5 2,600,000 70% 1,820,000 606,667 10.0140 60,751 30,376 20,655 0 301376 34% 6 2,600,000 70% 1,820,000 606,667 10,0140 60,751 24,301 10,328 0 36,451 17% 7 2,600,000 70% 1,820,000 606,667 10.0140 60,751 18,225 0 0 42,526 8 2,600,000 70% 1,820,000 606,667 10.0140 60,751 12,150 0 0 48,601 9 2,600,000 70% 1,820,000 606,667 10.0140 60,751 6,075 0 0 54,676 10 2,600,000 70% 1,820,000 606,667 10.0140 60.751 3.038 0 0 57,714 Totals for Building 607.514 300.719 213.845 120.895 306,795 Totals for Machinery and Building 7~ ~