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Home My WebLink About2022-R-08 Resolution Approving Statement of Benefits for Proposed Vacant Building Deduction & Property Tax Abaement for Amatrol, Inc. BEFORE THE COMMON COUNCIL FOR THE CITY OF JEFFERSONVILL INDIANA RESOLUTION NO. 2022-R- RESOLUTION APPROVING STATEMENT OF BENEIFTS FOR PROPOSED VACANT BUILDING DEDUCTION & PERSONAL PROPERTY TAX ABATEMENT WHEREAS, Amatrol, Inc. petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction of real property assessed value for an eligible vacant building, and personal property taxes to be assessed at the proposed project location, including the acquisition of the eligible vacant building and the purchase of new manufacturing, IT, logistics and R&D equipment used in the production process, to be generally located at 2533 Centennial Boulevard located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS,Amatrol, Inc.has submitted a Statement of Benefits on the forms prescribed by the Indiana State Board of Tax Commissioners for real property vacant building deductions and personal property, which includes a description of the proposed development and investment, an estimate of the number of individuals who will be retained as a result of the development and investment, an estimate of the salaries of these individuals, an estimate of the number of individuals who will be employed as a result of the development and investment, an estimate of the annual salaries of these individuals, and an estimate of the value of the development; and WHEREAS,the Common Council of the City of Jeffersonville has previously determined that the area in which the proposed development 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 Indiana Code 6-1.1-12.1 provides for certain property tax deductions for "eligible vacant buildings"; and WHEREAS, an existing building at 2533 Centennial Boulevard, Jeffersonville, IN 47130 (the "Property") has been unoccupied for at least one (1)year; and WHEREAS, the Redevelopment Commission of the City of Jeffersonville has made a favorable recommendation for approval of the Statement of Benefits for real and personal property; and WHEREAS, the Applicant plans to improve and occupy the Property, as well as create new employment opportunities within the City; and WHEREAS,the Common Council of the City of Jeffersonville has reviewed the Statement of Benefits and its attachments submitted herein, and attaches and incorporates the Statement of Benefits and its attachments herein,to this Resolution. BE IT FURTHER RESOLVED,. that the Common Council of the City of Jeffersonville, Indiana, hereby approves the,applications for deduction presented by the Statement,of Benefits filed by Amatrol, Inc., and that said company shall be entitled to deduction for a period of TEN (10)years for eligible real property improvement values for an eligible vacant building, and a period of FIVE (5) years for improvements to personal property, pursuant to the provisions of Indiana Code 6-1.1-12.1, with the timely filing and perfection thereof with the Clark County Auditor's and Clark County Assessor's office.This Resolution shall be in full force and effect from and after its passage and approval. Passed this day of ,2022. [signature page to follow] VOTED FOR: VOTED AGAINST: N-QvR ,‘2/1- 1/4 uts Passed and adopted by the Common Council of the City of Jeffersonville, Clark County, Indiana on the / day of /,tq 4S f , 2022. L/(7,F President, att Owen Attest: Lisa Gill, lerk Presented by me as Clerk to the Mayor of said City of Jeffersonville this ej day of 0/1/671- , 2022. Adi Lisa Gill, Clerk This Resolution approved and signed by me this 11 day of , 2022. ike Moore, Mayor This Resolution vetoed by me this day of , 2022. 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. The property located at 2533 Centennial Boulevard has been unoccupied for one (1)year and is therefore an"eligible vacant building"as that term is defined by the Act. 2. The assessed value of the improvements for the "eligible vacant building" is estimated to be $3,713,800. 3. Reasonable efforts have been made to find a tenant to locate in the "eligible vacant building"while unoccupied. 4. That the estimated acquisition and improvement value of $7,300,000 for the "eligible vacant building" is reasonable for projects of the nature described in the Statement of Benefits by the Amatrol,Inc. 5. That the estimate value of the qualifying personal property improvement of $1,805,000 is reasonable for projects of the nature described in the Statement of Benefits submitted by the Amatrol, Inc. 6. That the abatement schedule is justified and prescribed by the Tax Abatement Score Sheet("Exhibit C") as prescribed by Ordinance No. 2015-OR-56. 7. That the estimate of the number of 189 individuals and annual salaries to be retained at the project site can reasonably be expected to result from the proposed described development and investment. 8. That the estimate of the number of 35 new individuals and annual salaries to be employed at the project site can reasonably be expected to result from the proposed described development and investment. 9. That the taxes lessened from the granting of this abatement shall be for improvements in real estate with an estimated value of $3,713,900 and improvements in personal property with an estimated value of$1,805,000. 10. That the totality of benefits for said development and investment is sufficient to justify the deduction. 11. That Amatrol, Inc. 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 Indiana Code 6-1.1-12.1-14. ATTACHMENTS TO THE STATEMENT OF BENEFITS FOR AMATROL, INC. The Company will provide jobs and salaries as specified in the SB-ls and any attachment thereto. It is the expectation of the Council that the company will reach the number of employees and average wages specified on the SB-1 within five years. The Council understands this abatement is being offered based upon those jobs and wages. If the company fails to substantially reach those numbers or fails to maintain those numbers over the life of the abatement, the Council may, as provided by law, rescind this abatement. The Company agrees to make available any and all information the Council deems necessary to verify compliance. The Company agrees to pay an annual fee of 10% as described in Indiana Code 6-1.1-12.1-14. AMATROL . By: Printed: 10 47113 Title: Exhibit Statement of Benefits Vacant Building Deduction Form SB-1/VBD Attached Statement of Benefits Personal Property Form SB-1/PP Attached Exhibit Tax Abatement Score Sheet as prescribed by Ordinance No. 2015-OR-56 Attached Abatement Schedule Exhibit Real Property Year Abatement Percentage 1 100%exempt 2 95%exempt 3 80% exempt 4 65% exempt 5 50% exempt 6 40% exempt 7 30% exempt 8 20%exempt 9 10% exempt 10 5% exempt 11 First year of full property tax payment Personal Property Year Abatement Percentage 1 100% exempt 2 80% exempt 3 40% exempt 4 20% exempt 5 10% exempt • 6 First year of full property tax payment Abatement Savings Estimate Tax Abatement Estimate Existing Building A/v $4,294,900 44 Existing Building Deduction ' $3,713,800 Tax Rate(Pay 22) 3.0961% Tax Cap 3.0000% Improvement Improvement Year >> Abatement Percentage Property Property Taxes w/ Total Savings Taxes w/Cap Abatement Year 1 100% $128,847 $17,991 $110,856 Year 2 95% $128,847 $23,741 $105,106 Year 3 80% $128,847 $40,988 $87,859 Year 4 65% $128,847 $58,235 $70,612 Year 5 50% $128,847 $75,483 $53,364 Year 6 40% $128,847 $86,981 $41,866 Year 7 30% $128,847 $98,480 $30,367 Year 8 20% $128,847 $109,978 $18,869 Year 9 10% $128,847 $121,476 $7,371 Year 10 5% $128,847 $127,225 $1,622 $1,288,470 $760,578 $527,892 Personal Property Cap Ex $11,805,000 Year Property Taxes w/ Property Taxes w/o Abatement Percentage Abatement Abatement Total Savings Year 1 100% $0.00 $22,353.84 $22,353.84 Year 2 80% $6,259.08 $31,295.38 $25,036.30 Year 3 40% $14,082.92 $23,471.53 $9,388.61 Year 4 20% $14,306.46 $17,883.07 $3,576.61 Year 5 10% $15,088.84 $16,765.38 $1,676.54 Assumption:PP uses depreciation schedule Pool2(5-to-8- year life) $49,737.30 $111,769.21 $62,031.91 EXHIBIT 2022-R-02 Jeffersonville Redevelopment Commission Attached