HomeMy WebLinkAbout2002-R-38RESOLUTION 2002-R- ~%
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY TAX ABATEMENT
WHEREAS, Cintas Corporation, 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 North
Port Industrial Park, in the City of Jeffersonville, Clark County, Indiana; and
WHEREAS, Cintas Corporation, 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 Revitalization Area pursuant to Indiana Code 6-1.1-12.1 et seq., Resolution 97-
R-10 and Confirming Resolution 97-R;14; 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 comptiance 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 flied by the
Applicant, and that said Applicant shall be entitled to deductions for a period of TEN (10)
years for improvements to real property, pursuant to the provisions of I.C. 6-1:1-12.1-3(d)
and I.C. 6-1.1-12.1-4(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:
peggy
Clerk and Treasurer
this
dayof
k. on as R.
Presiding Officer
Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville
~,'~ day of ~ 2002.
Peggy W~i~e r
Clerk and Treasurer
This Ordinance approved and signed by me/t~his ~y,P~
~T~om&s R. Galfi'g(en,CCvl¢
,2002
STATEMENT OF BENEFITS
State Form 27167 R5/'11-95)
Form SB - 1 Is prescribed by the State Board of Tax Commissioners 1989
FORM
SB - 1
INSTRUCTIONS:
7. This statement must ce suom/r[ed to the body designating the econom c revit ization area prior to the public hearing if the designating boey requires infor-
mation from the applicant in making its decision about whether to designate an Economic Revita/izafion Area. Otherwise this statement must be submittec
!o the designating body BEFORE a person installs the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of real property fat
~vhich the carson wishes to claim a deduction. "Projects" olanned or committed to after Juiy 1, 1987 and areas designated after July f. 1987 reouire a
~TATEMENT OF BENEFITS. qC 6-1.1-12.1
2. Approval of the destgnati~g body (City Council, Town Board. County Council. etc. must be obtained unor re ~nmazmn of the redevelooment or rehabilitation
or erior to installation of the new manufacturinD equipment. BEFORE a deduction may ee approveo.
3. To obtain a deduction, Form 322 ERA, Real Estate Improvements end / or Form 322 ERA / PP, ~lew Machinery, must be filed with the county auditor. With
respect to real property, Form 322 ERA must be filed by the ater of: (1) May 10; or (2) thirty (30) days after a notice of increase in real property assessmam
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 fifing extension has been obtained. A carson who obtains a filing extension must file the form between
March 1 and June 14 of that ye~
4. Property owners whose Statement of Benefits was approvea after June 30 1991 muet submit Form CF- I annual,/ ro snow comufiance with the Statement
of Benefits. lC 6-I.1-t2.1-5.6)
state and ZIP code
Name of contact p~rson
Telepnone n~mber
- Resolution number
Name of designatin~ body
Location et proper~y ~ County Taxing district
D~sbeplion o{ r~al prop~y improvements and / or new manufactudnfl ~quipm~nt ESTIMATED
use additional sheets if necessa~) Sta~ Date Completion Date
Real Estate
New Mfg Equipment
Current number Salaries Number retained Sa ar es Number additional Salaries
NOTE: Pursuant to lC 6-1.1-12.1-5.1 (d) (2) the
Current values
Plus estimated values of proposed project
Net estimateq values upon completion of project
Estimated solid waste converted (pounds) Estimated hazardous waSt~convertea(~unds)
Other benefits:
I hereby certify that the representations in this statement are true.
S g~ature~,f authorized, repr~"'pnt, ative /f Title Date si~ned (month, day, year)
60 Spaces
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. CaIculate 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 gu[de 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 3,950,000 No. of jobs 134
Step 2
Abatement schedule
Average Wage 10,000 12,500 15,000 17,500
Maximum abetment amount per job 0 3,000 4,000 5,000
Step 3
Calculate the value of the abatement requested for MACHINERY.
TRUE ASSESSED TAX
YEAR COST TTV% TAX VALUE VALUE RATE*
I 4,500,000 40% 1,800,000 600,000 10.0140
2 4,500,000 56% 2,520,000 840,000 10.0140
3 4,500,000 42% 1,890,000 630,000 10.0140
4 4,500,000 32% 1,440,000 480,000 10.0140
5 4,500,000 24% 1,080,000 360,000 10.0140
6 4,500,000 18% 810,000 270,000 10.0140
7 4,500,000 15% 675,000 225,000 I0.0140
8 4,500,000 15% 675,000 225,000 10.0140
9 4,500,000 15% 675,000 225,000 10.0140
10 4,500,000 15% 675,000 225,000 10.0140
Totals for machinery
22,880
Avg. Wage 29,478
20,000 22,500 25,000 27,500 30,000
6,000 7,000 8,000 9,000 10,000
10 YEAR 6 YEAR 6 YEAR 10 YEAR
TAX ABATEMT. ASATEMT. ABATEMT. ABATEMT.
60,084 60,084 60,084 100% 100%
84,117 79,911 79,911 95% 95%
63,088 56,779 50,470 80% 90%
48,067 40,857 31,244 65% 85%
36,050 28,840 18,025 56% 80%
27,038 18,926 0 0% 70%
22,531 12,392 0 0% 55%
22,531 9,013 0 0% 40%
22,531 6,759 0 0% 30%
22.531 5.633 ~ 0% 25%
408.570 319.195 239.734
TRUE ASSESSED TAX 10 YEAR 6 YEAR 3 YEAR 10 YEAR 3 YEAR 6 YEAR
YEAR COST TTV% TAX VALUE VALUE RATE* TAX ABATEMT. ABATEMT. ABATEMT. NET TAX ABATEMT. ABATEMT.
I 3,000,000 70% 2,100,000 700,000 10.0140 70,098 70,098 70,098 70,098 0
2 3,000,000 70% 2,100,000 700,000 10.0140 70,098 66,593 59,583 46,265 3,505
3 3,000,000 70% 2,100,000 700,000 10.0140 70,098 56,078 46,265 23,132 14,020
4 3,000,000 70% 2,100,000 700,000 10.0140 70,098 45,564 35,049 0 24,534
5 3,000,000 70% 2,100,000 700,000 10.0140 70,098 35,049 23,833 0 35,049
6 3,000,000 70% 2,100,000 700,000 10.0140 70,098 28,039 11,917 0 42,059
7 3,000,000 70% 2,100,000 700,000 10.0140 70,098 21,029 0 0 49,068
8 3,000,000 70% 2,100,000 700,000 10.0140 70,098 14,020 0 0 56,078
9 3,000,000 70% 2,100,000 700,000 10.0140 70,098 7,010 0 0 63,088
10 3,000,000 70% 2,100,000 700,000 10.0140 70.098 3.505 O 0 66,593
Totals for SuiIding 700.978 346.984 246.744 139.495 353,994
Totals for Machinery and Building 1.109.548 666179
*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
Step 4
Divide value of abatement by total number of jobs retained and created.
Years of Years of Dollar Amount of
Machinery RealEs~te Amountof #of Abatement
Abatement Abatement Abatement Jobs Per Job
x 3 139,495 DIVIDED BY 134 EQUALS $1,041
x 5 246,744 DIVIDED BY 134 EQUALS $1,841
x 10 346,984 DIVIDED BY 134 EQUALS $2,589
5. 3 379,229 DIVIDED BY 134 EQUALS $2,830
5 6 486,479 DIVIDED BY 134 EQUALS $3,630
5 10 586,718 DIVIDED BY 134 EQUALS $4,378
10 3 458,690 DIVIDED BY 134 EQUALS $3,423
10 5 565,939 DIVIDED BY 134 EQUALS $4,223
10 10 666,179 DIVIDED BY 134 EQUALS $4,971
100% 100%
66% 85%
33% 66%
50%
34%
17%
ciNr,
MEMORANDUM
DATE:
October 22, 2002
TO:
Dustin T. White
Development Director
City-County Building
501 E. Court Avenue
Jeffersonville, IN 47130
FROM:
John Stratman
SUBJECT: Application for Tax Abatement
Attached is Form SB-1, Statement of Benefits, for the new production facility Cintas is
planning to construct in Jeffersonville. Also attached is a preliminary site plan for the
building, and a photograph of the recently completed building in Evansville, IN.
We request that the City review the Form and take the appropriate actions. I am
available to attend a Council meeting to present our project to the elected leaders.
Cintas looks forward to locating in Jeffersonville, and to establishing a long relationship
with both the City-County government and its citizens. Should you have questions or
need further information, please do not hesitate to contact me.
27 Whitney Drive, Cincinnati, Oh 45150 Phone 513-965-4908 FAX 513-965-0985
C :\WINDO WSkDESK TOP, Cent ral Dec01YLouisville\Tax releaf memo.doc