HomeMy WebLinkAbout2003-R-14RESOLUTION 2003-R-/~
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY TAX ABATEMENT
WHEREAS, O.B. & E. RUBBER CO. has petitioned the Common Council of the
City of Jeffersonville, Indiana, for a deduction in personal property taxes to be assessed on
proposed new manufacturing equipment to be used in, and in real property taxes to be
assessed on proposed improvements to be made on 2997 Industrial Parkway, property
located in the area commonly known as the Jeffersonville Industrial Park, in the City of
Jeffersonville, Clark County, Indiana; and,
WHEREAS, O.B. & E. RUBBER CO. 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 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 Statementlof 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 annuaI 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 .I-
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:
Pegg¢~
Clerk and Treasurer
day of ,~ ,2~03.
' ho?.s R..G.. ,,
Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville
this % day of ~, 2003.
Peggy ¢¢i18~e r
Clerk and Treasurer
This Ordinance app'roved and signed by~is ~ da ,2003.
R. Gal r ·
STATEMENT OF BENEFITS I FORM
state Form 27167 (RS / 11-95) sa - 1
Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1969
INSTRUCTIONS:
1. This statement must be submitted to the body designating the economic revitilization area pdor to the pub c hearing if the designating body requires infor-
mation from the applicant in making its decision about whether to designate an Econom c Revitalization Area. Otherwise this statement must be submitted
to the designating body BEFORE a person installs the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of real property for
which the person wishes to claim a deduction. "Projects" planned or committed to after July 1, 1987 and areas designated after July 1, 1987 require a
STATEMENT OF BENEFITS. (lC 6-1.1-12.1)
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 prior to installation of the new manufacturing equipment, BEFORE a deduction may be approved.
3. To obtain a deduction, Form 322 ERA, Real Estate ImprovemeRts and / or Form 322 ERA / PP, New Machinery, must be filed with the county auditor. With
respect to reel property, Form 322 ERA must be filed by the later of: (I) May 10; or (2) thirty (30) days after a notice of increase in real property assessment
is received from the township assessor. Form 322 ERA / PP must be filed between March I and May 15 of the assessment year in which new manufac-
turing equipment becomes assessable, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between
March I and June 14 of that year.
4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF- I annually to show compliance with the Statement
of Benefits. (lC 6-1.1-12.1-5.6)
Address of taxpayer (street and number, city, state and ZiP code)
Name of comact person
Telephone number
Resolution number
Nam~.o~,jCesignating ~ody/z ,
Location of prope~y ' __ ~ jCoun~ , / ~distriot
Description of real prope~y improvements and / or ~ew manufa~uring equip e t ~
(use a ditional sheete if n~cessary) ~ ~ ~ ~/~, Sta~Date Comptetion Bate
~-- J New Mfg Equipment ~ ~y
COST of the property is confidential. ~: ~ii~i :i::li!l~ ~ :~ Assessed Value
Current values , - ",~·
Plus estimated values of proposed project
Less values of any property being replaced
Net estimated vaIues upon completion of project
Estimated solid waste converted (pounds)
Other benefits:
I hereby certify that the representations in this statement are true.
~/~.,,=~ ,~ Date S~ned (m~nth; day, year)
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the
general standards adopted in the resolution previously approved by this body. Said resolution, passed under lC 6-1.1-12.1-2.5, pro-
vides for the following limitations as authorized under lC 6-1.1-t2.1-2.
A. The designated area has been limited to a period of time not to exceed calendar years * (see below). The date this
designation expires is
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements; ~3' Ye s []No
2. Installation of new manufacturing equipment; [~"Ye s E3No
3. Residentially distressed areas [] Yes [] No
C .The amount of deduction applicable for new manufacturing equipment is limited to $ cost with an assessed
value of $
D .The amount of deduction applicable to redevelopment or rehabilitation is limited to $ cost with an assessed
value of $
E. Other limitations or conditions (specify~
F. The deduction for new manufacturing equipment installed and first cla~med ehg~ble for deduchon after July 1, t991 ~s allowed for:
[] 5years [] 1~yearsThededucti~nperl~dwi~Ibefive(5)yearsun~essthedesignatingb~dyhasbyres~luti~nspe~ifiedtheten(t~)yearped~d.
Aisc we have reviewed the infor~ati0~,contained in the St~temen~ Of benefits and find that the estimates and expectations are reason:
able and have determined that the totality of ber~efitS i~ sufficient to iustify the deduction described above;"
Approved! (~ignature ahd'title Of aDthorized member) Telephone number Date signed (month day,,,
( )
Attested by: Designated body
* If the designating;h(~dv___. limits the time period durib~ whibh an ares is an ..... ' '
economic rewtd~zat~on srea, ~t does not hm~t the length of t~me
a taxpsyer is entitled to receive a deduction to a number of yeats designated u.~der lC 6-1.1 ;12.1-4 o( 4.5 Namely: (see tables below)
1st 100%
2nd 95%
3rd 80%
4th 65%
5th 50% ,;
6th
7th
8th ;
9th
10th
Ten (10) Year
Percentage
100%
95%
9O%
85%
80%
7O%
55%
4o%
3O%
25%
Year of !~ Three (3) Year Six (6) Year Ten (10) Year
Deduction , Deduction Ded.uct qn Deduction
1st 100% 100% 100%
2nd 66% 85% 95%
3rd 33% 66% 80%
4th 50% 65%
5th , . 34% 50%
6th 17% 40%
7th 30%
· 20%
8th ~
9th 10%
t 0th 5%
DEPARTMENT OF REDEVELOPMENT
812 - 285 - 6~06 office
812 - 285 - 6468 fax
City-County Building
501 E. Court Avenue
Jeffersonville, Iudiana 47130
Thomas R. Galligan
Mayor
i
July 15, 2003
TO: Jeffersonville City Council
FROM: Gayle H. Robinson, Director of Department of Redevelopment
SUBJECT: OB&E Rubber Company Request For Tax Abatement
th -
As stated in the July 7 Counml Meeting, Nathan Endris, of OB&E Rubber Company
has requested assistance from the CitY Council in the form of tax abatements. OB&E
Rubber is moving their operation to 2997 Industrial Parkway, Jeffersonville.
OB&E Rubber Company distributes and services industrial rubber products. They do
modification to customer specification of conveyor belts and other applications. The
Company will bring ten employees to the new Jef£ersonville location with additional
employees planned for the near future.
The projected investment is $760,000 ($200,000 in new manufacturing equipment and
$560,000.00 in real estate improvements) by 2004. The number of employees is
currently 10 with a yearly payroll of $513,000.00
The assistance OB&E Rubber Company requests is in the form of a ten year tax
abatement on real estate improvements and new manufacturing machinery.
An equal opportunity employer.