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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 ooo§§~ ~°~ oo ooooo~°~ 0 0 0 o ~ ° o 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 ~'