HomeMy WebLinkAbout2004-R-10Resolution No.2004-R-10
RESOLUTION
CONCERNING STATEMENT OF BENEFITS
FOR PURPOSE OF TAX ABATEMENT ON NEW MANUFACTURING MACHINERY
BY THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE
WHEREAS, through Indiana Code I.e. 6-1-12.1, cedain properly tax deductions may be
afforded as an incentive to encourage rehabilitation or redevelopment or real properly
and or fo install new manufacturing equipment in Economic Revitalization Areas; and
WHEREAS, such improvements will benefit the long term fax bose, and stimulate
employment oppodunities with in the City of Jeffersonville, IN and
WHEREAS, the Common Council of the City of Jeffersonville established the
Jeffersonville Urban Enterprise Zone as Economic Revitalization Area for properly tax
abatement purposes; and
WHEREAS, Seatply INC, is the owner of the new manufacture machinery in the above
referenced Economic Revitalization Area, has submitted o Statement of Benefits form SB-
1, exhibit A attached for the construction of o new facility pursuant fo Indiana Code I.C.
6-1.1-12.1-4.5, as prescribed by the State Board of Tax Commissioners; and
WHEREAS, the Common Council has reviewed said Statement of Benefits;
NOW, THEREFORE, BE IT RESOLVED, That:
The Common Council hereby finds that the information contained in the
Statement of Benefits form can reasonably be expected from the
proposed project.
The Common Council fudher determines that, based upon the above
findings, the benefits set fodh in the Statement of Benefits form justify the
applicable deduction for the proposed new machinery fo be acquired.
o
The Abatement period for the new facility shall be for a period of FIVE (5)
years.
The Mayor is hereby authorized fo approve the Statement if Benefits as
submitted by Seatply INC, and the City Clerk shall attest.
Adopted by
'~ ~2004.
the Common Council of the City of Jeffersonville on~/~f
R'b'l~ed Wa'/~ Jr., Mayor
of the CiW of Jeffersonville
Attest:
City Clerk Treasurer
Accepted and Approved by me this
9
Robed Waiz, Mayor
CiN of Jeffersonville, Indiana
Attest:
~Jerk Treasurer
STATEMENT OF BENEFITS
Stale Form 27167 (R7 / 12-01)
Prescribed by ~he Department of Local Government Finance
FORM
SB- 1
Name of taxpayer
Seatpty, [NC
Address of taxpayer (street and number, city, state and ZIP code)
264 AAmericaPlace, Jeffersonvilie IN 47130
Name of contact person Telephone number
Levon Afeyan, President ((812) 2~4-7679
Name of designating body Resolution number
Common Council City of JeffersonviIle
Location of property County Taxing district
284 A AmericaPtace, JeffersonviIle IN 47130 C ark Jeff-City
Description of real properly improvements and / or new madufacturing equipment and / or ESTIMATED
research and development equipment (use additional sheets if necessary) Stad Date Completion Date
Real Estate
New Mfg Equipment 03/04/2004 12/0412004
R&DE [
Current number Salaries I Number retained Salaries I Number additional Salaries
2 $75,000,00I2 $75,000.00[ 19 $546,000.00
Research and Development
NOTE: Pursuant to lC 6-1,1-12.1-5.1 (d) (2) the Real Estate Improvements Machinery Bquipment
COST of the property is confidential. Cost Assessed Value Cost IAssessed Value Cost Assessed Value
Current values I
Plus estimated values of proposed project $700,000,00 I
Less values of any property being replaced I
Net estimated values upon completion of project $700,000.00
Estimated solid waste converted (pounds) ....................... Estimated hazardous waste converted (pounds) .......................
Other benefits:
Seatply, INC has purchased an existing company located in Jeffersonville that was on the 9erge of closure Seatply committed to keeping the existing
employees and growing the business with substantial new investment.
~ ~ I hereby Certifl/that the representations in this statement are true.
Signature of authorize re'p sentative Title Date signed (month, day,year)
· m c revital~Lat on area and find that the applicant meets the
. - ' ....*~"s latinn to the designation of th!s ~on, o ~ q=i~ rc,~r~ u ' n aassed under lC 6-1.1-12.1-2.5. pro-
enera standards adopted in the reso,uu~'~;~'l~ ~ 1-12.1-2.
gvides for the following hm~tat~ons as author,=~- __
The designated area has been limited to a period of time not to exceed ............ calendar years * (see below). The date this
designation exp res is ......... ~-. ..................
The type of deduction that is allowed in the designated area is I mired to: [] Yes [] N o
1. Redevelopment or rehabilitation of real estate improvements; [~ Yes [] N o
2. Installation of new manufacturing equipment;
3. Installation of new research and development equipment; [] Yes [] No
E~Yes [~No
4. Residentially distressed areas
.The amount of deduction applicable for redevelopment or rehabilitation is limited to $ .................. cost with an assessed
value of $ ................ '
.The amount of deduction applicable to new manufacturing equipment is limited to $ ................. cost with an assessed
value of $ .................... '
E, The amount of deduction applicable to new research and development equipment is limited to $ ................. cost with
an assessed value of $ .....................
· · . " s s ecif~ ................................ "
F. Other hmltattons or condd[on ( P Y ..... ¢ ~---~,fits and find that the estimates and expectations are reason-
eviewed the nformation contained !~ t~e S~a~e~l~;,~i'f'~'fhe deduction described above.
signal,re and ,/fie of authorized member) -'~'~phone n~mbe~ -- /Oate signed (mort,h, d------ay, year~
~ '-- IDesignated body
INSTRUCTIONS: (IC6-1.1-12.~-5.9) , .. - . _,,_~d,,ma,¢deerminewhetherornotthepropertyownerhassubstantiallycompliedwith
1. Within forty-five (45) days after recent of th/s form, me c~es¢gn~,.,,~ ~',~ ;, ~
the Statement of Benefits.
, fin bed shall send the property owner written notice. The notice must include
' u 3d NOT to be in substantial compliance, the d?~gna g Y des ' If a notice is mailed to a property owner
2, lf the property owner ls fo ..... -~-,~ firnea ¢taceofaheanngtobeconductedbythe gnatmgbody.
for new manufacturing equipment and I or research and development equipment, a copy of the written notice shall be sent to the State Board of Tax
3. Based on file 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.
If the designating body determines that the property owner has NOT made reasonable effort to comply, then the designating body shall adopt a resolution
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 necessaO/)
~gnature of authorized member
iDate signed (month, day, '¢ ,~r)
Attested by: --
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 ~te of hearing ~'~-~ocation of hearing
HEARING RES~eted after the h~
[] Approved [] Denied (see instruction 4 above)
Reasons for the determination (attach additional sheets if necessary)
Si--'~nature of authorized member
Date sigr~ed (month, day. ye~,)_~
Attested by: ~ / Designating body
AL RIGHTS [lC
i APPE . -- -' ...... ~ the desinnating body's decision by fihn~ a comp!al~
~n Ptf~Poef~YceOOwfnt%rewc~rOcs~td~rd~uc~Oer~Om~ ~t~lr~1°~Yett~eerdwei~g~a~ngdo~°OnYdi~i°anYe~d~°=;'aY the c~ts of the appeal if the appeal ,s determ,neo
against the property owner.
FORM
COMPLIANCE WITH STATEMENT OF BENEFITS CF-t
State Form 44973 (R4 / 'i2-01)
Prescribed by the Depa~ment of Local Government Finance
ment of Benefi s was approved after June 30, 199'/ must file t,b s form with the County Auditor and the
INSTRUCTIONS: f. Property owners whose State cnmn ~n w h he Statement of Benefits, (This does not apply
Ioca Des hating Body to show the extent to which there has been __,. ¢ __ ce
to propert'~ located in a res dentiafiy distressed area). (lC fi- f . f-f2,1-5.6)
If the deduc¢ion applies to Real Es a e and improvements, then his form must be filed with the initial deduction application and then
2. r he end of each ear in which the deduc on s app cable.
annually w hin sixty (60) days aftet . ~ ~ Y-. ~,~-~, ..... * ~uioment this form must be fi ed with Form 322 ERA/PP, ME,
3. ForNewManufactur?gEquomentorNew~esearcf~auu~=v~'~'"~"~ ~ ' x n onunder CC-l.l*3,Thasbeengranted, A
or R and DE respectively between March ~ and May 15 of each year, unless a filzng ete s
person who obtains a filing extension must file between March 1 and the extended due date of each year.
4. With the approval of the designating body, compliance information for multiple projects may be consolidated on one (1) compliance
form (CF-
Name of taxpayer
Seatply, INC
nd number, cit~ state and ZIP code)
264 A America Place, Jeffersonville iN 47130
Telephone number
person ~$4-7679
Levon Afeyan, President
Resolution number
N~me of designating body
Common Council City of Jeffersonville County Taxing district
Location of properly
264 A America Place, Jeffersonville IN 47130 Clark Jeff-City
E)escription of real property improvements and/or new manufacturing equipment, or new research and development Estimated starting date
equipment to be acquired 03/04/2004
Estimated completion date
New Manufactodng Equipment to be used in process 12/04/2004
C_~urrent number of employees_ $75,000.00 ~.00
Salaries ~
Number of employees retained I $75,000.00
Salaries I
Number of additional employee__s I
Salaries
Assessed Value Assessed Value Assessed Value
Values before proiect
Values of any
Values before project
Values of proposed project
Values of any property being replaced
NOTE: The COST of the p~operty is confidential pursuant to lC 6~.1-12.1-5.6 (d).
Assessed Value cbst ssed Value
~ ~~ooo
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0
0
0 o
~ °
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February 10, 2004
Common Council City of Jeffersonville
Jeffersonville Redevelopment Commission
James Beecher, Executive Director
Filing Information for Tax Abatement within the City of Jeffersonville, according to
policy
37.01 Information Required of Applicants Seeking Tax Abatement.
Seatply Inc.
Attn: Levon Afeyan, President
264 A America Place
Jeffersonville, IN 47130
Real property abatement not being requested
Real property abatement not being requested
4. N/A
5. N/A
7.
8.
9.
6 current employees
Estimate of cost on new manufacturing equipment $700,000.00
Information requested provided on SB-1
New machinery not present at location or placed on tax roles prior too 2004 taxes
10. Levon Afeyan, President
11. Attached SB-1
12. N/A
~9'i~d C. Duggins Jr.
L-'--e~vo~Af~an' President
ADVISORY REVIEW BY THE DEPARTMENT OF REDEVELOPMENT
SEATPLEY, INC.
264A AMERICA PLACE
JEFFERSONVILLE, INDIANA 47130
A five-year deduction for new equipment SHOULD be allowed based on the
following:
1. All information (Petition, SB1 and Filing Fee) has been submitted by the
Petitioner.
2. Conditions of the policy are met as Petitioner plans to install NEW manufacturing
equipment.
3. Project IS NOT located in an allocation area.
Project IS located in an already established Economic Revitalization Area.
Petitioner plans to retain 2 jobs and create 19 new jobs upon completing the
installation of the new manufacturing equipment. The 19 new jobs will have an
average wage of $28,737.00.
The projected value of the abatement per job retained/created is in the $2,000 -
$3,000 range. (A more specific number is difficult to calculate because of the
uncertainties of reassessmem and the application of CAGIT and School PTRC.
The Petitioner has purchased an existing company located in Jeffersonville that
was on the verge of closure and has made a commitment to grow the business
with substantial new investment.
pETITITION FOR ABATEMENT
TO:
FROM:
SUBJECT:
DATE:
CC:
CITY COUNCIL MEMBERS
SEATPLEY, INC 1Lg~,PRESENTED BY DAVID DUGGINS
TAX ABATEMENT
1/28/2004
PEGGY WILDER, CLEILI</TREASUERER
City Council Member:
Seatply, INC has been manufacturing curved plywood for the furniture industry in Montreal,
Canada since 1981. It has grown to over 85 employees and to be one of the top five companies
producing a curved xvood product in North America. Their product is a primary' component of the
contract furniture industry including many brands of office, hotel, and restaurant furniture. Seatply
has been able to distinguish itself from other competitors by constandy applying new technologies to
their manufacturing process, including an interactive customer friendly web site.
The last few years have been extremely d/fficult for U.S. furniture manufactures. The weak
market demand and the influx of Chinese imports, have forced many companies to close down. One
of the frost was Jasper Wood Products, a producer of curved wood products for over 25 years.
Indiana, laom~ of many furniture manufacturers, was faced with a supply void. Seatply had already
b~en si'tipping product to Indiana to other clients such as Paoli Furniture and Classico Furniture, but
the cost of transportation and the weak U.S. dollar was making it difficult to gain market share. A
local plant ,,,,'as necessau', and the Jeffersonville opportunity seemed to be the best. An offer was
made and accepted for an e~sting company set to close here in Jeffersonviile.
I have included a Statement of Benefits(SB-1), a Compliance Form(CF-l) and a spreadsheet used
to calculate the total amount of the manufacturing equipment abatement. The spreadsheet displays
the cost of the abatement in tax dollars and the benefit in the form of new wages and employment.
Seatply has committed to bring on 17 new employees and invest over $700,000.00 in new equipment.
We are asking for your support in our effort to grow with a five-year abatement on the nexv
equipment. The employment numbers are strong with the average hourly wage over the $12.00 an
hour figure. Sear'ply is currently located in America Place.
Please consider the information attached, and I ,,viii be in contact to answer any questions you
may have.
David Duggins ~'