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HomeMy WebLinkAbout2016-R-4 BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION STATE OF INDIANA A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL APPLICATION FOR REAL PROPERTY AND PERSONAL PROPERTY TAX ABATEMENT FOR POSCO-AAPC,LLC RESOLUTION NO. 2016-R_ T WHEREAS, POSCO-AAPC, LLC has made application for real property and personal property tax abatement from the City of Jeffersonville, Indiana; WHEREAS, the Common Council is the designating body for approving such applications; WHEREAS, said applications require review by the Jeffersonville Redevelopment Commission. NOW, THEREFORE, BE IT RESOLVED BY THE JEFFERSONVILLE REDEVELOPMENT COMMISSION THAT: 1. The Jeffersonville Redevelopment Commission has reviewed the attached "Statement of Benefits" for Real Property and Personal Property; and 2. The Jeffersonville Redevelopment Commission hereby recommends to the Common Council the applications for tax abatement for POSCO-AAPC, LLC Adopted at a meeting of the Jeffersonville Redevelopment Commission held the day of Varc�- , 2016. JEFFERSONVILLE REDEVELOPMENT COMMISSION Pre ldent ATTEST: Sec tary 1/2961557.1 STATEMENT OF BENEFITS FORM SB-1 !PP PERSONAL PROPERTY State Form 51764(R4!11-15) Prescribed by the Department of Local Government Finance PRIVACY NOTICE Any information concerning the cost of the property and specific salaries paid to individual employees by the property owner is confidential per IC 6-1.1-12.1-5.1. INSTRUCTIONS 1 This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information 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 and/or research and development equipment,and/or logistical distribution equipment and/or information technology equipment for which the person wishes to claim a deduction. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation of qualifying abatable equipment for which the person desires to claim a deduction. 3. To obtain a deduction, a person must file a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 103-ERA)with the township assessor of the township where the property is situated or with the county assessor if there is no township assessor for the township. The 103-ERA must be filed between January 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between January 1 and the extended due date of that year. 4. Property owners whose Statement of Benefits was approved,must submit Form CF-1/PP annually to show compliance with the Statement of Benefits. (lC 6-1.1-12.1-5.6) 5. For a Form SB-1/PP that is approved after June 30,2013,the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/PP that is approved prior to July 1,2013,the abatement schedule approved by the designating body remains in effect. (IC 6-1 1-12.1-17) SECTION •- • Name of taxpayer Name of contact person POSCO AAPC, LLC. Jini Oh Address of taxpayer(number and street,city,state,and ZIP code) Telephone number 6500 Jefferson Metro Pkwy., McCalla,AL 35111 ( 205 ) 277-2151 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) Location of property County DLGF taxing district number 5146 Loop Rd.,Jeffersonville,IN 47130 Clark 10039 Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or information technology equipment. START DATE COMPLETION DATE (Use additional sheets if necessary) 1 Pickling&Coating,2 Heat Furnaces,4 Drawing Machines,8 Cranes and Manufacturing Equipment 11/01/2016 04/26/2017 Hooks,2 Forklifts, other Machines&Equipments R&D Equipment Logist Dist Equipment IT Equipment 11/01/2016 04/26/2017 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 0 0 0 0 60 3,756,480.00 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE:Pursuant to IC 6-1.1-12,1-5.1 (d)(2)the MANUFACTURING R&D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED ASSESSED COST ASSESSED COST ASSESSED COST VALUE VALUE VALUE VALUE Current values 0 0 Plus estimated values of proposed project 10,500,000 500,000 Less values of any property being replaced 0 0 Net estimated values upon completion of project 10,500,000 500,000 SECTION • .AND OTHER BENEFITS PROMISED Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) Other benefits SECTION • I hereby certify that the representations in this statement are true. Signature of authorize e Date s�gne (month,day,year) Printed name of hon representative Title Kyu Tae Kim Finance Director Page 1 of 2 FOR USE OF THE DESIGNATING _. . 7The ed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5, provides for the following limitations as r IC 6-1.1-12.1-2. ed area has been limited to a period of time not to exceed calendar years'(see below). The date this designation expires NOTE This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1 .Installation of new manufacturing equipment; ❑Yes ❑ No ❑ Enhanced Abatement per IC 6-1 1-12.1-18 2 .Installation of new research and development equipment; ❑Yes ❑ No Check box if an enhanced abatement was 3 .Installation of new logistical distribution equipment. ❑Yes ❑ No approved for one or more of these types. 4 .Installation of new information technology equipment; ❑Yes ❑ No C.The amount of deduction applicable to new manufacturing equipment is limited to S cost with an assessed value of $ . (One or both Rhes may be filled out to establish a limit,if desired.) D.The amount of deduction applicable to new research and development equipment is limited to S cost with an assessed value of S . (One or both lines may be filled out to establish a limit,if desired.) E. The amount of deduction applicable to new logistical distribution equipment is limited to S cost with an assessed value of S . (One or both lines may be filled out to establish a limit,if desired.) F. The amount of deduction applicable to new information technology equipment is limited to$ cost with an assessed value of $ . (One or both lines may be filled out to establish a limit,if desired.) G. Other limitations or conditions(specify) H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment and/or new information technology equipment installed and first claimed eligible for deduction is allowed for. ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 ❑ Enhanced Abatement per IC 6-1.1-12.1-18 Number of years approved: ❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 (Enter one to twenty(1-20)years,may not exceed twenty(20)years.) I. For a Statement of Benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ❑Yes ❑No If yes,attach a copy of the abatement schedule to this form. If no,the designating body is required to establish an abatement schedule before the deduction can be determined. Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved by:(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year) Printed name of authorized member of designating body Name of designating body Attested by:(signature and title of attester) Printed name of attester If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 0-1.1-12.1-17. IC 6-1.1-12.1-17 Abatement schedules Sec.17.(a)A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1)The total amount of the taxpayer's investment in real and personal property. (2)The number of new full-time equivalent jobs created. (3)The average wage of the new employees compared to the state minimum wage. (4)The infrastructure requirements for the taxpayer's investment. (b)This subsection applies to a statement of benefits approved after June 30,2013.A designating body shall establish an abatement schedule for each deduction allowed under this chapter.An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten(10)years. (c)An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 STATEMENT OF BENEFITS 20_PAY 20 REAL ESTATE IMPROVEMENTS — State Form 51767(R6 110-14) FORM SBA I Real Property ,0 `r Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost i�Redevelopment or rehabilitation of real estate improvements(IC 6-1 1-12.1-4) of the property and specific salaries paid to individual employees by the ❑Residentially distressed area(IC 6-1 1-12.1-4.1) property owner is confidential per INSTRUCTIONS: IC 6-1.1-12.1-5.1. 1 This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information 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 the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction,a Form 3221RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is made or not later than thirty(30)days alter the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year. 4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-i/Real Property The Form CF-1/Real Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable. IC 6-1.1-12.1-5.l(b) 5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed For a Form SB-1JReal Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. IC 6-1 1-12 1-17 SECTION •- • Name of taxpayer POSCO AAPC, LLC. Address of taxpayer(number and street city,state,and ZIP code) 6500 Jefferson Metro Pkwy., McCalla, AL 35111 Name of contact person Telephone number E-mail address Jini Oh ( 205 ) 277-2151 joh@poscoaapc.com I SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Location of property County DLGF taxing district number 5146 Loop Rd. Jeffersonville, IN 47130 Clark 10039 Description of real property mprovements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year) New Wire Rod Processing Center 04/27/2016 Estimated completion date(month,day,year) 01/31/2017 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salanes Number retained salaries Numberadditional Salaries 0.00 $0.00 0.00 $0.00 60.00 $3,756,480.00 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values 0,00 Plus estimated values of proposed project 7,600,000.00 Less values of any property being replaced 0,00 Net estimated values upon completion of project 7,600,000.00 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) _ Estimated hazardous waste converted(pounds) Other benefits SECTION • I hereby certify that the representations in this statement are true. Signature of authorized repres Date signed(month,day,year) Punted name of authonzed repres"tive Title Kyu Tae Kim Finance Director Page 1 of 2 FOR USE OF THE DESIGNATING :.. We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: 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 ❑No 2.Residentially distressed areas ❑Yes ❑No C. The amount of the deduction applicable is limited to 5 D. Other limitations or conditions(specify) E. Number of years allowed: ❑Year 1 ❑ Year 2 ❑ Year 3 ❑Year 4 ❑ Year 5 (*see below) ❑Year 6 ❑Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ❑Yes ❑No If yes,attach a copy of the abatement schedule to this form. If no,the designating body is required to establish an abatement schedule before the deduction can be determined. We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year) ( ) Printed name of authorized member of designating body Name of designating body Attested by(signature and title of attester) Printed name of attester If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1,2013,the deductions established in IC 6-1.1-12.1-4.1 remain in effect.The deduction period may not exceed five(5)years. For a Form SB-1/Real Property that is approved after June 30, 2013,the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten (10)years. (See IC 6-1.1-12.1-17 below.) B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1,2013,the abatement schedule approved by the designating body remains in effect.For a Form S13-1/Real Property that is approved after June 30,2013,the designating body is required to establish an abatement schedule for each deduction allowed.(See IC 6-1.1-12.1-17 below.) IC 6-1.1-12.1-17 Abatement schedules Sec.17.(a)A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full-lime equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (b) This subsection applies to a statement of benefits approved after June 30,2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten(10)years. (c) An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 COMPLIANCE WITH STATEMENT OF BENEFITS FORM CF-1 /PP PERSONAL PROPERTY State Form 51765(R31 11-15) Prescribed by the Department of Local Government Finance INSTRUCTIONS. 1 Property owners whose Statement of Benefits was approved must file this form with the local Designating Body to show the extent to which there has been compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 2. This form must be filed with the Form 103-ERA Schedule of Deduction from Assessed Value between January 1 and May 15 of each year, unless a filing extension under IC 6-1.1-3.7 has been granted. A person who obtains a riling extension must file between January 1 and the extended due date of each year. 3. With the approval of the designating body, compliance information for multiple projects may be consolidated on one(1)compliance (CF-1). SECTION •- • Name of taxpayer County POSCO AAPC,LLC. Clark Address of taxpayer(number and street,city,state,and ZIP code) DLGF taxing district number 6500 Jefferson Metro Pkwy., McCalla,AL 35111 10039 Name of contact person Telephone number Jini Oh ( 205 ) 277-2151 SECTION 2 LOCATION AND DESCRIPTION OF PROPERTY Name of designating body Resolution number Estimated start date(month,day,year) 11/1/2016 Location of property Actual start date(month,day,year) 5146 Loop Rd.,Jeffersonville,IN 47130 Description of new manufacturing equipment,or new research and development equipment,or new information technology Estimated completion date(month,day,year) equipment,or new logistical distribution equipment to be acquired. 4/26/2017 1 Pickling&Coating,2 Heat Furnaces,4 Drawing Machines,8 Cranes and Hooks,2 Forklifts,other Actual completion date(month,day,year) Machines&Equipments SECTION • EMPLOYEES AND SALARIES AS ESTIMATED ON SBA ACTUAL Current number of employees 0.00 Salaries 0.00 Number of employees retained 0.00 Salaries _ 0.00 Number of additional employees 60.00 Salaries 3,758.480.00 SECTION • AND VALUES MANUFACTURING R Sr D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT AS ESTIMATED ON SB-1 COST I ASSESSEDASSESSED ASSESSED ASSESSED VALUE COST VALUE COST VALUE COST VALUE Values before project 0.00 0.00 Plus: Values of proposed project 10.500.000.00 500,000.00 Less: Values of any property being replaced 0.00 0.00 Net values upon completion of project 10.500,000.00 500,000.00 ACTUAL COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Values before project Plus: Values of proposed project Less: Values of any property being replaced Net values upon completion of project NOTE:The COST of the property is confidential pursuant to IC 6-1.1-12.1-5.6(c). SECTION • •AND OTHER BENEFITS PROMISED WASTE CONVERTED AND OTHER BENEFITS AS ESTIMATED ON SBA ACTUAL Amount of solid waste converted Amount of hazardous waste converted Other benefits: SECTION • I hereby certify that the representations in this statement are true. Signature of authorized represen Title Date signed(month.day year) Finance Director /�+o6Y --LO Page 1 of 2 FOR USE BY A DESIGNATING BODY WHO ELECTS TO REVIEW THE COMPLIANCE (FORMWITH STATEMENT OF BENEFITS THAT WAS -. AFTER INSTRUCTIONS: (IC 6-1.1-12.1-5.9) 1.This page does not apply to a Statement of Benefits riled before July 1, 1991:that deduction may not be terminated for a failure to comply with the Statement of Benefits. 2.Arithin forty-five(45)days after receipt of this form,the designating body may determine whether or not the property owner has substantially complied with the Statement of Benefits. 3.If the property owner is found NOT to be in substantial compliance,the desiqnating body shall send the property owner written notice. The notice must include the reasons for the determination and the date,time and place of a hearing to be conducted by the designating body If a notice is mailed to a property owner, a copy of the written notice will be sent to the County Assessor and the County Auditor. 4 Based on the information presented at the hearing,the designating body shall determine whether or not the property owner has made reasonable effort to substantially comply with the Statement of Benefits and whether any failure to substantially comply was caused by factors beyond the control of the property owner. 5.If the designating body determines that the property owner has NOT made reasonable effort to comply, then the designating body shall adopt a resolution terminating the deduction. The designating body shall immediately mail a certified copy of the resolution to:(1)the property owner,(2)the County Auditor, and(3)the County Assessor We have reviewed the CF-1 and find that: ❑ the property owner IS in substantial compliance ❑ the property owner IS NOT in substantial compliance ❑ other(specify) Reasons for the determination(attach additional sheets if necessary) Signature of authorized member Date signed(month,day,year) Attested by: Designating body If the property owner is found not to be in substantial compliance,the property owner shall receive the opportunity for a hearing.The following date and time has been set aside for the purpose of considering compliance. Time of hearing ❑ AM Date of hearing(month,day,year) Location of hearing ❑ PM HEARING RESULTS(to be completed after the hearing) ❑ Approved ❑ Denied(see instruction 5 above) Reasons for the determination(attach additional sheets if necessary) Signature of authorized member Date signed(month,day,year) Attested by: Designating body APPEAL RIGHTS[IC 6-1.1-12.1-5.9(e)] A property owner whose deduction is denied by the designating body may appeal the designating body's decision by filing a complaint in the office of the clerk of Circuit or Superior Court together with a bond conditioned to pay the costs of the appeal if the appeal is determined against the property owner. Page 2 of 2 00'. COMPLIANCE WITH STATEMENT OF BENEFITS 20 PAY 20 REAL ESTATE IMPROVEMENTS — — State Form 51766(R3/2-13) FORM CF-1 I Real Property Prescribed by the Department of Local Government Finance PRIVACY NOTICE INSTRUCTIONS: The cost and any specific individual's 1. This form does not apply to property located in a residentially distressed area or any deduction for which the salary information balance the filing g confidential;the is public record Statement of Benefits was approved before July 1, 1991. per IC 6-1.1-12.1-5.1(c)and(d). 2. Property owners must rile this form with the county auditor and the designating body for their review regarding the compliance of the project with the Statement of Benefits (Form SB-1/Real Property). 3. This form must accompany the initial deduction application(Form 322/RE)that is filed with the county auditor 4. This form must also be updated each year in which the deduction is applicable. It is filed with the county auditor and the designating body before May 15,or by the due date of the real property owner's personal property return that is filed in the township where the property is located. 5. With the approval of the designating body,compliance information for multiple projects may be consolidated on one(1)compliance form(Form CF-1/Real Property). SECTION •- • Name of taxpayer County POSCO AAPC, LLC. Clark Address of taxpayer(number and street,city,state,and ZIP code) DLGF taxing district number 6500 Jefferson Metro Pkwy., McCalla,AL 35111 10039 Name of contact person Telephone number Jini Oh ( 205 ) 277-2151 SECTION 2 LOCATION AND DESCRIPTION OF PROPERTY Name of designating body Resolution number Estimated start date(month,day,year) 04/27/2016 Location of property Actual start date(month,day,year) 5146 Loop Rd.,Jeffersonville, IN 47130 Description of real property improvements Estimated completion date(month,day,year) New Wire Rod Processing Center 01/31/2017 Actual completion date(month,day,year) SECTION • EMPLOYEES AND SALARIES AS ESTIMATED ON SB-1 ACTUAL Current number of employees 0 Salaries 0 Number of employees retained 0 Salaries 0 Number of additional employees 60 Salaries 3,756,480.00 SECTION • COST AND VALUES REAL ESTATE IMPROVEMENTS AS ESTIMATED ON SB-1 COST ASSESSED VALUE Values before project 0 Plus: Values of proposed project 7600000 Less: Values of any property being replaced 0 Net values upon completion of project 7600000 ACTUAL COST ASSESSED VALUE Values before project Plus: Values of proposed project Less: Values of any property being replaced Net values upon completion of project SECTION • .AND OTHER BENEFITS PROMISED WASTE CONVERTED AND OTHER BENEFITSAS ESTIMATED ON SB-1 ACTUAL Amount of solid waste converted Amount of hazardous waste converted Other benefits: SECTION • I hereby certify that the representations in this statement are true. Signature of authorized representative 7 Title Date signed(month,day,year) Finance Director , Page 1 of 2 •• • FOR USE BY A DESIGNATING BODY WHO ELECTS TO REVIEW THE COMPLIANCEOF ORM CF-1) THAT WAS APPROVED AFTER JUNE 30,1991 INSTRUCTIONS: (IC 6-1.1-12.1-5.1 and IC 6-1.1-12.1-5.9) 1•Not later than forty-five(45)days after receipt of this form,the designating body may determine whether or not the property owner has substantially complied with the Statement of Benefits(Form SB-1/Real Property). 2.If the property owner is found NOT to be in substantial compliance,the designating body shall send the property owner written notice. The notice must include the reasons for the determination and the date,time and place of a hearing to be conducted by the designating body. The date of this heating may not be more than thirty(30)days after the date this notice is mailed_ A copy of the notice may be sent to the county auditor and the county assessor. 3.Based on the information presented at the heating,the designating body shall determine whether or not the property owner has made reasonable efforts to substantially comply with the Statement of Benefits(Form SB-1/Real Property)and whether any failure to substantially comply was caused by factors beyond the control of the property owner. q if the designating body determines that the property owner has NOT made reasonable efforts to comply,then the designating body shalt adopt a resolution terminating the property owner's deduction. if the designating body adopts such a resolution,the deduction does not apply to the next installment of property taxes owed by the property owner or to any subsequent installment of property taxes. The designating body shall immediately mail a certified copy of the resolution to:(1)the property owner,(2)the county auditor,and(3)the county assessor. We have reviewed the CF-1 and find that: ❑the property owner Is In substantial compliance ❑ the property owner IS NOT in substantial compliance ❑other(specify) Reasons for the determination(attach additional sheets if necessary) Signature of authorized member Date signed(month,day,year) Attested by: Designating body If the property owner is found not to be in substantial compliance,the property owner shall receive the opportunity for a hearing.The following date and time has been set aside for the purpose of considering compliance. (Hearing must be held within thirty(30)days of the date of mailing of this notice.) Time of hearing AM I Date of hearing(month,day,year) Location of hearing PM HEARING RESULTS(to be completed after the hearing) ❑ Approved ❑ Denied(see instruction 4 above) Reasons for the determination(attach additional sheets if necessary) Signature of authorized member Date signed(month,day,year) Attested by: Designating body APPEAL RIGHTS PC 6-1.1-12.1-6.9(e)] A property owner whose deduction is denied by the designating body may appeal the designating body's decision by filing a complaint in the office of the Circuit or Superior Court together with a bond conditioned to pay the costs of the appeal if the appeal is determined against the property owner. Page 2 of 2 GUIDELINES AND PRINCIPLES FOR CONSIDERATION OF © PROPERTY TAX PHASE-IN(TAX ABATEMENT) IN JEFFERSONVILLE,INDIANA so\ 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 6-1.11-12.1 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. S. 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 i of 9 Effective as of 10-26-15 "EXHIBIT A" 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.6-1.11-12.1 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 S Applicant Name: Jini Oh(Jang) "Aiicatlon 03/18/2016 Company: i POSCO-AAPC,LLC Street Address: 6500 Jefferson Metro Parkway City,State,ZIP: McCalla,AL 35111 Phone: 205-277-2151 Loh@poscoaapc.com Company Name: (if di erent rom applicant): Street Address: City,State,ZIP: Website: Street Address of Project Location. 5146 Loop Rd City,State,ZIP: uv.: Jeffersonville, IN 47130 Project Descrl tion: Wire Rod Processing Center.This Project will be a joint Venture with POSCO America and JP Steel. Page 2 of 9 Effective as of 10-26-15 PROJECT COMPOSITION: (6 points possible). If more than one scenario applies,use only the scenario with the highest point value. POINTS Personal Property Improvements 2 Real Property Improvements 4 Personal Property and Real Property Improvements 6 SCORE 6 ACTIVITY DETAIL: (18 points possible). if more than ones gnario applies,use oniv the scenario with the highest point value. POINTS Existing Facility—new office addition 6 Existing Facility—expanding or upgrading existing product 8 line Existing Facility—adding new product line 10 Existing Facility—addition of manufacturing/warehousing 12 space New Research&Development Facility 14 New Corporate Regional Office or Headquarters Building 16 New Industrial(manufacturing),Warehousing or Logistics 18 Facility SCORE 18 EXISTING VACANT STRUCTURE: (15 points po .`WiIJ this projec ;edctivate a facility that has been vocont for at least 12 months? _ POINTS Location will NOT reactivate a vacant facility 0 Location WILL reactivate a vacant facility 15 SCORE 0 PROJECT CAPITAL INVESTMENT: (20 points possible). What is[ e total capital investment for this project? Use only the applicable scenario with the highest point )ue. POINTS $1 million—$4,999,999 30 $5 million—$9,999,999 15 $10 million or more 20 SCORE 20 Page 3 of 9 Effective as of 10-26-15 JOB RETENTION: (14 points possible). How many full-time positions will be retained as a result of this project? Use only the applicable scenario with the highest point value. 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 SCORE 0 °NEW JOB CREATION: (14 points possible). How many net new full-time positions will be created as a result of this project? Use only the applicable scenario with the highest point value. 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 14 SCORE 10 AVERAGE WAGE: (14 points possible) Utilizing the average wage of alifull-time positions for this project and using the current state minimum wage as a benchmark,how does the average wage of this project compare to the current minimum wage? Use only the applicable scenario with the highest point value. 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 4 Page 4 of 9 Effective as of 10-26-15 EMPLOYER-SPONSORED HEALTH AND WELLNESS BENEFITS: (5 points possible). Will the company provide employer-sponsored health and wellness benefits at this location? POINTS Location will NOT provide employer-sponsored health and 0 wellness benefits at this location Location WILL provide employer-sponsored health and 5 wellness benefits at this location SCORE 5 rWORKPLACE WELLNESS: (5 points possible). Will the company encourage and promote workplace wellness through employee participation in exercise and healthy living progrgMs? POINTS__ Company will NOT promote workplace wellness through employee participation in exercise and healthy living 0 programs Company WILL promote workplace wellness through employee participation in exercise and healthy living 5 programs SCORE 0 EMPLOYER-SPONSORED RETIREMENT PLAN: (5 points possible). Will the company provide an employer-sponsored retirement plan at this location? POINTS Company will NOT provide an employer-sponsored 0 retirement plan at this location _ Company WILL provide an employer-sponsored 5 retirement plan at this location SCORE 5 BENEFITS PACKAGE: (8 points possible). What percentage of your employees'total compensation package are fringe benefits? Use only the applicable scenario with the highest point value. POINTS 0% 0 1-10% --- ------- 2 11-15% ---- _ 4 16-20% 6 21—30%or higher 8 (Health 70%;401K match 3%) SCORE 8 Page 5 of 9 Effective as of 10-26-15 DIVERSITY: (7 points possible). Will the company have a diversity and inclusion policy In __effect at this location? POINTS Company will NOT have a diversity and inclusion policy at 0 this location 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 0 location Company WILL utilize green technology at this location 7 SCORE 0 GREEN INITIATIVES AND SUSTAINABILITY ACTIVITIES: (7 points 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 0 Page 6 of 9 Effective as of 10-26-15 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 anew 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 q i cob do ume,nts ,tta sed to this Score Sheet. Please provide a narrative of community involvement here: POINTS Location will NOT be supporting projects associated with the city, schools,local non-profit organizations,senior 0 citizens,disadvantaged individuals or groups,day cares, etc. Location WILL be supporting projects associated with the city,schools, local non-profit organizations,senior 20 citizens,disadvantaged individuals or groups,day cares, etc. SCORE 20 T I&AL PROJECT SCORE: Please add all above scores together and provide the total below TOTAL OF ALL ABOVE SCORES 103 SIGNATURES Signature of Applicant: Date: 03/18/2016 Print Name: � Zy Signature of Companylow— Representative: _� d3 j�g12-W (if different from applicant), 1 Print Name: ,u r.e, I /� Page 7 of 9 Effective as of 10-26-15 GUIDELINE FOR REAL PROPERTY TAX ABATEMENT TOTAL SCORE �— Abatement Year Abatement Percentage 1-9 1 100%0 10-19 t 100% _ ) 2 75?,% 20-29 1 1005'. 2 -------- -- 75% 3 25% 30-39 1 100% 2 75% 3 50% 4 25% 40-49 1 100% 2 100% 3 75% 4 50% 5 25% SO–S9 1 100% 2 100% 3 80% 4 60% 5 40% 6 20% 60-69 1 100% 2 100% 3 90% 4 80% 5 60% 6 40% 7 20% 70-79 1 100% 2 10095 3 90% 4 80% 5 70% 6 60% 7 40% 8 20% 80-89 1 100% 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% 8 40% Page 8 of 9 Effective as of 10-26-15 9 20% _H � 7, , � x� ,; a •," a '"sem —90-99 _ 1 100% _ 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% 8 40% 9 30%-- 10 20°10 _ 100+ 1 _ _ 100% 2 100% 3 95% 4 90% 5 80% 6 70% 7 _ 60% -- 8 50% 9 40% 10 20% GUIDELINE FOR PERSONAL PROPERTY TAX ABATEMENT TOTAL SCORE Abatement Year Abatement Percentage 1-39 1 100% 40-59 1 ---l00%- 2 00%2 50,0 60-79 1 100% 2 504b 3 40". - 80-90 1 10040 — —�-- 2 --- 50°{0 3 _ 40% 4 20% 90+ 1 100% 2 50% _ 3 40% 4 20% 5 10% Page 9 of 9 Effective as of 10-26-15 HMSERENERGY ECON0141C DEVELOPMENT Indiana Tax Abatement Results • Clark County,Jeff City-Utica Twp-Ofw • Tax Rate(2015):3.1848 • Project Name:Project Bolts Real Property: $7,600,000.00 With Abatement Without Abatement Estimated Abatement Circuit Tax Net Circuit Percentage Property Breaker Property Breaker Tax Property Net Property Abatement Taxes Tax Taxes Taxes Savings Credit Taxes Credit Year 1 100% $0.00 $0.00 $0.00 $242,045.00 ($14,045.00) S228,000.00 $228,000.00 Year 2 100% $0.00 $0.00 $0.00 $242.045.00 ($14,045.00) $228.000.00 $228.000.00 Year 3 90% $24.204.00 $0.00 $24.204.00 $242.045.00 ($14,045.00) $228.000.00 5203.796.00 Year 4 80% $48.409.00 $0.00 $48.409.00 $242,045.00 ($14,045.00) $228.000.00 5179,591.00 Years 70% $72,613.00 $0.00 572.613.00 $242,045.00 ($14.045.00) $226.000.00 $155,387.00 Year6 60% $96,818.00 $0.00 $96.818.00 $242,045.00 ($14.045.00) $228,000.00 $131,182.00 Year 7 504 $ $0.00 $121,022.00 $242.045.00 ($14:045.00) 5228,000.00 $106.978.00 121.022.00 Year 40% $ $0.00 $145,227,00 $242,045.00 ($14,045.00) $228,000.00 $82,773.00 145,227.00 Year 304. S $0.00 $169,431.00 $242.045.00 ($14,045.00) $228.000.00 $58.569.00 169.431.00 Year 10 20% S 50.00 $193.636.00 $242,045.00 ($14.045.00) S228.000.00 $34.364.00 193,636.00 Totals $871,360.00 $0.00 $871,360.00 $2,420,450.00 ($140.450.00) $2.280,000.00 $1,408,640.00 Personal Property: $11,000,000.00 With Abatement Without Abatement Estimated Abatement Circuit Tax Net Circuit Net Percentage Property Breaker Property Abatement Property Breaker Property Taxes Tax Taxes Savings Taxes Tax Credit Taxes Credit Year t 100% $0.00 $0.00 $0.00 $140,131.00 ($8.131.00) $132,000.00 5132.000.00 Year2 50% $98,092.00 $0.00 $98,092.00 $196.184.00 ($11,384.00) $184.800.00 $86.708.00 Year3 40% $88.283.00 50.00 $88.283.00 $147.138.00 ($8,538.00) $138.600.00 $50,317.00 Year 4 20% 589.684.00 50.00 $89.684.00 $112.105.00 ($6.505.00) $105.600.00 $15,916.00 Year 5 10% 594.589.00 $0.00 594.589.00 $105.098.00 (S6.098.00) $99.000.00 $4.411.00 Totals $370.648.00 $0.00 $370.648.00 $700,656.00 ($40.656.00) $660.000.00 $289.352.00 Disclosures • The abatement calculations were prepared by Umbaugn,a financial consulting firm,in cortunction with Hoosier Energy.based on current State statute.This calculation is Intended to provide an ILLUSTRATIVE and PRELIMINARY,dication of the Level of property tares and potential tax savings for a proposes investment eased on certain assumptions.Please read the Disclosures carefully. • Companies must consult their own tax advisors to determine their actual tax liability and to prepare their annual Indiana lax filings. • To be eligible to receive property tax abatements in Indiana,a Company must follow a specific application process.Please contact your Hoosier Energy representative for further guidanco. • Assumes pay 2014 property tax rates,as provided by the Department of Local Government F nance. • Actual assessed value of a structure will be determined by the local Assessor.This value may be materially different from value provided for this estimate. • Real property in Indiana is subject to annual adjustments of assessed value to rhe market vakie of the structure based an annual sales data ("Trending`), • AN personal property(equipment)is assumed to be new.and is assumed to be depreciated in Pool 102(5-6 year depreciable fife).A mixture of new and existing equipment(as well as a mixture of depreciation pools)will produce different tax savings results. • Assumes a one-time investment in real and personal property.Staqgoring the investments may have a material effect on the actual value of tax abatements. • Includes the calculation of Minimum Value Ratio(MVR)for testi abatement of personal property which effectively increases the assessed value used in the abatement calculation when the taxpayer is subject to the 30**floor.The MVR equals die adjusted assessed value at the 30%floor divided by the depreciated assessed value of the equ pmenL • Includes the applicalian of the Circuit Breaker Tax Credit,which limits the total property tax Wolity of a taxpayer to 3.00%of the gross assessed value of commercialindustrial real and depreciable personal property. • The tax abatement savings value is an ESTIMATE based on preliminary information entered into this calculator.Actual abatement savings may differ matetiafty from the results of this calculator based on the timing of the investment.actual assessment of structures,differences in the depreciation pools for personal property,annual changes in tax rates.adoption of a local option income tax for property tax relief purposes. changes to Indiana property tax taw or regulations.or changes in assessment methodology. • •The results of this calculator should be treated as an ESTIMATE available for illustrative purposes only.and should be treated as an estimate when discussing,negotiating and olfering incentives;and should W noted as such in memoranda and legal documents related thereto. 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