HomeMy WebLinkAbout2018-R-11 BEFORE THE COMMON COUNCIL
FOR THE CITY OF JEFFERSONVILLE, INDIANA
RESOLUTION NO. 2018-R- /
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR
PROPOSED REAL PROPERTY TAX ABATEMENT
WHEREAS, Masonic Office Building LLC petitioned the Common Council of the City
of Jeffersonville, Indiana, for a deduction in real property taxes to be assessed on a proposed
redevelopment of property, including the renovation and adaptive reuse of a building and related
improvements, to be generally located at 509 Spring Street located in the City of Jeffersonville,
Clark County, Indiana; and
WHEREAS, Masonic Office Building LLC has submitted a Statement of Benefits on the
form prescribed by the Indiana State Board of Tax Commissioners for real property, which
statement includes a description of the proposed redevelopment, an estimate of the number of
individuals who will be employed as a result of the developed, an estimate of the annual salaries
of these individuals, and an estimate of the value of the redevelopment; and
WHEREAS,the Common Council of the City of Jeffersonville has previously
determined that the area in which the proposed redevelopment project is located in the City of
Jeffersonville qualifies as an economic revitalization area pursuant to Indiana Code 6-1.1-12.1-5,
et seq.; and
WHEREAS, the Redevelopment Commission of the City of Jeffersonville has made a
favorable recommendation for approval of the Statement of Benefits; and
WHEREAS,the Common Council has reviewed the Statement of Benefits and its
attachment "A" submitted herein, and attaches and incorporates the Statement of Benefits
submitted herein, and attaches and incorporates the attachment " A" to this Resolution.
Presented by me as Clerk to the Mayor of said City of Jeffersonville this day of
OC.1-6,6r- , 2018.
-1.:4
Vicki Conlin, Clerk
This Resolution approved and signed byme thisAayof � ► , 201:.
Li4PP g
Mike Moore, Mayor
This Resolution vetoed by me this of , 2018.
Mike Moore, Mayor
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 value of the qualifying real estate improvement of$2,500,000 is
reasonable for projects of the nature described in the Statement of Benefits submitted
by the company.
2. That the estimate of the number of 45 individuals to be employed at the project site
can reasonably be expected to result from the proposed described redevelopment and
rehabilitation.
3. That the estimate of the annual salaries of the 45 individuals who will be employed at
the project side can reasonably be expected to result from the proposed described
redevelopment and rehabilitation.
4. That the taxes lessened from the granting of this abatement shall be for improvements
in real estate up to the value of$2,500,000.
5. That all other information requested from Masonic Office Building LLC has been
submitted, and the benefits described in such information can be reasonably expected
to result from the proposed described redevelopment and rehabilitation.
6. That the totality of benefits for said redevelopment is sufficient to justify the
deduction.
7. That Masonic Office Building LLC has agreed to the payment of a fee of 10% of the
annual benefit of the abatement of the Jeffersonville City Council annually as
described in I.C. 6-1.1-12.1-14.
, ot' -R-1/
BE IT FURTHER RESOLVED, that the Common Council of the City of
Jeffersonville, Indiana, hereby approves the application for deduction presented by the
Statement of Benefits filed by Masonic Office Building LLC, and that said company shall
be entitled to deduction 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),with the timely filing and perfection thereof
with the Clark County Auditor's office. This Resolution shall be in full force and effect
from and after its passage and approval. Passed this I day of QcJ-obp l— , 2018.
VOTED FOR: VOTED AGAINST:
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Passed and adopted by the Common Council of the City of Jeffersonville, Clark County,
Indiana on this / day of Qc:o6 p( , 2018.
President, Lisa Gill
ttest:
-.- -: -63-J1A---
Vicki Conlin, Clerk
Abatement Schedule Exhibit
Real Property
Year Abatement Percentage
1 50% exempt
2 50% exempt
3 50% exempt
4 50% exempt
5 50% exempt
6 50% exempt
7 50% exempt
8 50% exempt
9 50%exempt
10 50%exempt
11 First year of full property tax payment
-0,"-"' STATEMENT OF BENEFITS 20 19 PAY 2020
�' �° REAL ESTATE IMPROVEMENTS
da
/ State Form 51767(R6/10-14) FORM SB-1 /Real Property
ie`Ta"` Prescribed by the Department of Local Government Finance
PRIVACY NOTICE
This statement is Deing completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost
Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4)
of the property and specific salaries
QI P P paid to individual employees by the
❑Residentially distressed area(IC 6-1.1-12.1-4.1) 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 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 322/RE 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 after 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-1/Real Property. The Form CF-1/Real
Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
IC 6-1.1-12.1-5.1(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-1/Real 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 1 TAXPAYER INFORMATION
Name of taxpayer
Masonic Office Building LLC
Address of taxpayer(number and street,city,state,and ZIP code)
350 Missouri Ave., Suite 200, Jeffersonville, IN 47130
Name of contact person Telephone number E-mail address
Brandon Denton ( 502 ) 767-1280 bdenton@dentonfloyd.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
City of Jeffersonville Common Council 2018-R-
Location of property County DLGF taxing district number
509 Spring Street, Jeffersonville, IN Clark 010
Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year)
Renovation and redevelopment of the former Masonic Temple building into a functioning office building for primary - -2018
use as Denton Floyd Real Estate Group's development headquarters.
Estimated completion date(month,day year)
- -2019
SECTION 3 • ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
0.00 $0.00 0.00 $0.00 45.00 $3,374,280.00
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values 95,700.00
Plus estimated values of proposed project 2,500,000.00 2,500,000.00
Less values of any property being replaced
Net estimated values upon completion of project 2,500,000.00 2,595,700.00
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds)
Other benefits
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the re esentations in this statement are true.
Signat : •,�u • representative Date signed(month,day,year)
Print-d n. e• -utho ed representative [Title
Brandon Denton Principal
Page 1 of 2
FOR USE OF THE DESIGNATING BODY .
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed I v V calendar years*(see below). The date this designation
expires is 07o a U
B. The type of deduction that is allowed in the designated area is limited to:
1.Redevelopment or rehabilitation of real estate improvements ErYes ❑No
2.Residentially distressed areas ❑Yes
C. The amount of the deduction applicable is limited to$ cl boo 600.ab
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. Fora 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 an title of authorized member of designating body) Telephone number Date signed(month,day,year)
iz•- ✓ > ( Yi a ) Y6---6(/ -7 /O/Di /Fl
ea a of authorized member of designating body Name of designating body II ff
�,'SA C,1I Common C04nc/l C1 0E- a'lur`t�
Atte by(signature nd title o attester) Prifed name of attester /
—CdO-Al- V C..-kl Con/In
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 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.(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-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
Abatement Savings Estimate Exhibit
Indiana Tax Abatement Results
• Clark County, Jeffersonville City-lfw
• Tax Rate (2018):3.3981
Real Property: $2,500,000.00
With Abatement Without Abatement
Estimated
Abatement Circuit Circuit Tax
Net
PercentageNet Property Breaker Property Breaker Abatement
Property Property
Taxes Tax Taxes Tax Sayings
Taxes Taxes
Credt Credit
Year 1 50% 5 42,476 00 50.00 $42476.00 $84,953.00 ($9,953.00) 575,000.00 $32,524.00
Year 2 50% $42,476 00 $0 00 $42476.00 $84,953.00 ($9,953.00) $75,000.00 $32,524.00
Year 3 50% 542476.00 $0.00 $42476.00 $84,953.00 ($9,953.00) $75,000.00 $32524.00
Year 4 50% $42.476 00 $0,00 $42,476.00 $84,953.00 ($9,953.00) $75,000.00 $32,524.00
Year 5 50% $42.476 00 $0.00 $42476.00 $84,953,00 )$9,953.00 $75,000.00 $32,524.00
Year 6 50% $42,476 00 $0,00 $42.476.00 $84 953.00 ($9,953 00; $75 000 00 $32,524.00
Year 7 50% $42,476 00 $0.00 $42,476.00 $84.953,00 ($9,953.00; $75,000.00 $32,524.00
Year 8 50% $42,476.00 $0.00 $42,476.00 $84 953.00 ($9,953.00) $75,000.00 $32,524.00
Year 9 50% $42,476.00 $0.00 $42,476.00 $84,953.00 ($9,953.00) $75,000.00 $32,524.00
Year 10 50% $42,476.00 $0.00 $42,476.00 $84,953.00 ($9,953.00) $75,000.00 $32,524.00
Totals $424,760.00 $0.00 5424.760 00 $849,530.00 ($99,530,00)$750,000 00 5325240.00
BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION
STATE OF INDIANA
A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL
APPLICATION FOR TAX ABATEMENT FOR
MASONIC OFFICE BUILDING LLC
RESOLUTION NO. 2018-R (13
-
WHEREAS, Masonic Office Building LLC has made application for tax abatement from
the City of Jeffersonville, Indiana;
WHEREAS, the Common Council is the designating body for approving such
applications;
WHEREAS, said application requires review by the Jeffersonville Redevelopment
Commission;
NOW, THERFORE 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;
2. The Jeffersonville Redevelopment Commission hereby recommends to the
Common Council the application for tax abatement for Masonic Office Building LLC
Adopted at a meeting of the Jeffersonville Redevelopment Commission held the ldtiday of
AlAgeS4. , 2018.
JEFFERSONVILLE REDEVELOPMENT
COMMI SION
/`
'resi•- -
ATTEST:
Atop" glidez.)
Secretary
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: Masonic Office Building LLC Application Date: 9-5-18
Company:
Street Address: 350 Missouri Ave., Suite 200
City,State,ZIP: Jeffersonville, IN 47130
Phone: 502-767-1280 Email: bdenton@dentonfloyd.com
Company Name:
(if different from applicant): Denton Floyd Real Estate Group
Street Address: 350 Missouri Ave., Suite 200
City,State,ZIP: Jeffersonville, IN 47130
Website: www.dentonfloyd.com
Street Address of Project Location: 509 Spring Street
City,State,ZIP: Jeffersonville, IN 47130
Project Description: Renovation and redevelopment of the former Masonic Temple building into a
functioning office building for primary use as Denton Floyd Real Estate Group's development headquarters.
Page 1 of 8 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 one scenario applies, use only 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 and 12
warehousing space
New Industrial (manufacturing), Warehousing or Logistics 14
Facility
New Corporate Regional Office or Headquarters Building 16
New Research & Development Facility 18
SCORE 16
EXISTING VACANT STRUCTURE: (15 points possible). Will 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 15
PROJECT CAPITAL INVESTMENT: (25 points possible). What is the total capital
investment for this project? Use only the applicable scenario with the highest point
value.
POINTS
$1 million—$4,999,999 10
$5 million—$9,999,999 15
$10 million—$19,999,999 20
$20 million or more 25
SCORE 10
Page 2 of 8 Effective as of 10-26-15
JOB RETENTION: (18 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—249 retained jobs 14
250—499 retained jobs 16
500 or more retained jobs 18
SCORE 2
NEW JOB CREATION: (18 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—249 new jobs 14
250—499 new jobs 16
500 or more new jobs 18
SCORE 8
AVERAGE WAGE: (18 points possible). Utilizing the average wage of all full-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
Less than 3 times current minimum wage 0
3 times current minimum wage 10
3.5 times current minimum wage 12
4 times current minimum wage 14
4.5 times current minimum wage 16
5 times current minimum wage(or higher) 18
SCORE 18
Page 3 of 8 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
WORKPLACE WELLNESS: (5 points possible). Will the company encourage and promote
workplace wellness through employee participation in exercise and healthy living
programs?
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 5
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
SCORE 8
Page 4 of 8 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 7
location
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:
LED lighting;energy efficient windows and plumbing/water conversation technology
POINTS
Company will NOT utilize green technology at this 0
location
Company WILL utilize green technology at this location 7
SCORE 7
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:
On campus dining; company encourages ride-sharing, public and other alternative methods
POINTS
Location will NOT implement green initiative programs 0
Location WILL utilize green initiative programs 7
SCORE 7
Page 5 of 8 Effective as of 10-26-15
COMMUNITY INVOLVEMENT: (5 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: Company is affiliated with
the following local organizations:Building Industry Association of Greater Louisville,Building and Development
Association of Southern Indiana and One Southern Indiana 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 5
citizens, disadvantaged individuals or groups, day cares,
etc. •
SCORE 5
TOTAL PROJECT SCORE: Please add all above scores together and provide the total below
TOTAL OF ALL ABOVE SCORES 124
SIGNATURES
A .i►
Signature of Applicant: �� Date: 9-5-18
/!
Print Name: Brandon Denton
Signature of Company
Representative: Date:
(if different from applicant):
Print Name:
Page 6 of 8 Effective as of 10-26-15
GUIDELINE FOR REAL PROPERTY TAX ABATEMENT
TOTAL SCORE Abatement Year Abatement Percentage
1-9 1 100%
10—19 1 100%
2 75%
20—29 1 100%
2 75%
3 25%
30—39 1 100%
2 90%
3 75%
4 60%
40-49 1 100%
2 90%
3 75%
4 60%
5 45%
50—59 1 100%
2 90%
3 75%
4 _ 60%
5 45%
6 35%
60-69 1 100%
2 90%
3 75%
4 60%
5 45%
6 35%
7 25%
70—79 1 100%
2 90%
3 75%
4 60%
5 45%
6 35%
7 25%
8 15%
80-89 1 100%
2 90%
3 75%
4 60%
5 45%
6 35%
7 25%
8 15%
9 10%
Page 7 of 8 Effective as of 10-26-15
90-99 1 100%
2 90%
3 75%
4 60%
5 45%
6 35%
7 25%
8 15%
9 10%
10 5%
100+ 1 100%
2 95%
3 80%
4 65%
5 50%
6 40%
7 30%
8 20%
9 10%
10 5%
GUIDELINE FOR PERSONAL PROPERTY TAX ABATEMENT
TOTAL SCORE Abatement Year Abatement Percentage
1-39 1 100%
40—59 1 100%
2 50%
60—79 1 100%
2 50%
3 40%
80-90 1 100%
2 50%
3 40%
4 20%
90+ 1 100%
2 80%
3 40%
4 20%
5 10%
Page 8 of 8 Effective as of 10-26-15
Exhibit C
Abatement Schedule Exhibit
Real Property
Year Abatement Percentage
1 50%exempt
2 50%exempt
3 50%exempt
4 50%exempt
5 50%exempt
6 50%exempt
7 50%exempt
8 50%exempt
9 50%exempt
10 50%exempt
11 First year of full property tax payment