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HomeMy WebLinkAbout2004-R-19RESOLU ['ION NO. 04-R- Iq RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, KEY ELECTRONICS, INC. and HARDY PROPERTIES, LLC (the "Applicant"), has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in personal property and real property taxes to be assessed on proposed improvements to be made on property located in North Port Business Centre in the City of Jeffersonville, Clark County, Indiana (more fully described on "Exhibit A"); and WHEREAS, the Applicant has submitted an application which includes the Statement of Benefits on the form prescribed by the Indiana State Board of Tax Commissioners of such purpose, which application and statement includes 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 "Exhibits B1 and B2"; and WHEREAS, the Common Council of the City of Jeffersonville has previously designated the area where the proposed redevelopment project is located in the City of Jeffersonville as an Economic Revitalization Area pursuant to Indiana Code 6-1.1 - 12. I et seq., and Resolution No. 97-R- 14; 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 compliande 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 leffersonville, 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 Statement of 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 annual 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 tbe 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- RESOLUTION NO. 04-R- Page 2 BE IT FURTHER RESOLVED, that the Common Council of the City of Jeffersonville, Indiana hereby approves the application and Statement of Benefits as presented and filed by the Applicant, and that said Applicant shall be entitled to deductions for a period often (10) years for improvements to real property, pursuant to the provision oflC 6-1.1-12.1-3(d) and IC 6-1.1-12.1-4(d)(3), and five (5) years for equipment and machinery pursuant to IC 6-1.1-12.1-4.5, with the timely filing and perfection thereof with day!of August, 200z Council Robert L, ~. Presiding Officer / the Clark County Auditor's office. Passed and adopted this Jeffersonville, Clark County, Indiana. of the City of Peggy Wiid~ Clerk and Treasurer this Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville, Indiana, ~ dayofAugust, 2004. Peg~-~f'd~ r Approve dandsigned by me this /I day ofAugu~~ Robert L. Waiz,/Jr. Mayor ~XHIBIT 'A' DESCRIPTION OF A 9.877-ACRE TRACT OF NORTH PORT DEVELOPMENT CORPORATION That part of Survey No. 14 of the Illinois ~ran~ of Clark Count3', Indiana being further described as follows: Commencing at a steel pin which marks th~ north corner of Survey No. 14. Thence along the line dividing Surveys No. 14, 23 and 24, South 54 deg. 35 mSm. 43 sec. West, 888.21 feet to the southwestern right-of-w&y line of Centennial Boulevard; Thence along said right-of-way line, 366.21 feet along a curve to the right with a radius of 670.00 feet and a chord which bears South 55 deg. 20 min. 17 sec. East, 361.67 feet to a steel pin and cap that marks the east corner of Nuvista Properties, LLC and being the True Point of Beginning. Thence continuing along the southwestern r~ght-of-way line of Centenmal Boulevard for the next nme courses, 144.11 feet along a curve to the right having a radius of 670.00 feet and a chord which bears South 33 deg. 31 min. 02 sec. East, 143.83 feet; Thence South 27 deg. 21 min. 20 sec. East, 94.18 feet; Thence 47.62 feet along a curve to the right having a radius of 30.00 feet and a chord which bears South 19 deg. 03 man. 18 sec. West, 42.77 feet; Thence South 63 deg. 35 min. 21 sec. West, 38.52 feet; Thence South 26 deg. 24 min. 39 sec. East, 60.00 feet; Thence North 63 deg. 35 min. 21 sec. East, 40.49 feet; Thence 47.63 feet along a curve to the right having a radius of 30.00 feet and a chord which bears South 71 deg. 53 mm. 00 sec. East, 42.78 feet; Thence South 27 deg. 21 min. 20 sec. East 97.54 feet; Thence 70.10 feet along a curve to the right having a radius of 1970.00 feet and a chord which bears South 26 deg. 20 min. 10 sec. East, 70.10 feet to the northwestern right-of-way line of a proposed street; Thence along the northwestern right-of-way line'of the proposed street for the next three courses, South 62 deg. 52 min. 56 sec. West, 492.50 feet; Thence 46.36 feet along a curve to the right having a radius of 50.00 feet and a chord which bears South 89 deg. 26 min. 50 sec. West, 44.72 feet; Thence 131.71 feet along a reverse curve to. the left having a radius of 75.00 feet and a chord which bears South 65 deg. 42 min. 10 sec. West, 115.43 feet; Thence leaving said proposed road right-of-way, North 81 deg. 23 min. 55 sec. West, 360.47 feet to the east line of a 15-foot xvide sanitary sewer easement; Thence along said easement for the next rv¢o calls, North 09 deg. 25 min. 37 sec. East, 266.53 feet; Thence North 08 deg. 02 min. 36 sec. East 317.72 feet to the southwestern line of Nuvista Properties, LLC'Thence, along the southern boundaries of Nuvista Properties, LLC for the next three calls, South 44 deg. 02 min. 10 sec. East, 76.42 feet; Thence South 84 deg. 05 min. 53 sec. East, 290.4I feet; Thence North 54 deg. 35 min. 43 sec. East, 320.00 feet to the southwestern right-of-way line of Centennial Boulevard, the Tree Point of Beginning; This tract of land contains 9.877 acres, which is subject to all rights-of-xvay and easements of record. The above-described 9.877-acre tract being a portion of the lands conveyed to North Port Development Corporation as set forth in Deed Drawer 2') Instrument No. 8745 in the Office of the Recorder, Clark County, Indiana. ,,~-b'TiCA-SELLERSEIURG ROAD SURt, E~ 200 0 200 400 Scale 1" 200' KOF~TTEI~ FIVE STAR PRoPF, t~TIF~, LLC JACOBI. TOOMBS & LANZ. 1NC. CONSULTING 120 BELL AV~NU~ CLAi~f~V~.I.E: ~A 47129 Sketch of Proposed Property situated in Survey No. 14 in Clark County, Indiana SCALE= 1'-200' I DATE: 7/30/2004 I DRAWN: K.W.' · [ EXHIBIBT STATEMENT OF BENEFITS State Form 27167 ~7 / ~2-01~ Prescribed bv the Deoarlrnem of Local Government Finance EXHIBIT 'B 1' FORM SB - '1 INSTRUCTIONS ~ This statement must be submitted o the body Qes gna/lng me economic revitifization area prior to the public hearing if the designating body requires infor- mation from the a~licant in making its decision about whether to designate an Econom c Rev a ization Area. Otherwise this statement must be submitted to the dee/gna7 ng body BEFORE a person nsralls the new manufacturing equtpmen~ ancl I or r,,esearcn and development equipment, or BEFORE the redevelopment or rehabilitation of real oroper~y for which the eerson wishes o claim a deduction. Projects p anned or commifted to after July f , 1987and areas aesignated after July 1. 1987 reau¢re a STATEMENT OF BENEFITS .lC 6-1.1-f2.1 2 ADDroval of the designating body (City Council. Town Board. Counl.~ Council, etc must be obtained Dnor to initiation of the redevelopment or rehabililation, or DOor to installation of the new manufacturing equipment and / or research and develoement equipmem. BEFORE a deduction may be approved. 3. To obtain a deducbon Form 322 ERA Real Estate Im~rovemems and / or Form 322 ERA PPME and or 322 ERA / PPR & DE, must be filed with the county auditor. With respect 7o rea~ firoper~y, Form 322 ERA must be fi ed by the later oft (1) May f O; or (2) thirty (30) days after a notice of increase in real prope/ly assessment is received from the townshta assessor. Form 322 ERA / PPME and / or 322 ERA PPR & DE must be fi ed between March I and May 15 of the assessment year m wi~¢ch new manufacturing eou~bment and I or research an¢ oeve/ooment equipment becomes assessable, unless a filing extension has ~een obtained. A person WhO o~mms a filing extension must file the form between March f and the extended due date of that year. 4. Propert~ owners ~vhose Statement of Benefits was al)proved after June 36 1991 must suemit Form CF - I annually to show compliance with the Statement 5, The schedtaes estabhshed under/C 6-1.1-12.1-4/d ane /C 6-~ 1-12. f-4.5 fe effective Jul¢ f, 2000 apply to any statement of benefits fi/ed on or after July ?, 2000. The scneau~es effective ~rior to July ~ 2000 shall con~mue 7o apply ~o rnose s~a¢ement of benefits filed before July 1, 2000. Named/taxpayer ' ' ' ~ ' · · Key Electronics, Inc. Address of taxpayer (street and number, city, state and ZIP code) 2633 Grant Line Road, New Albany, IN 47150 Name of contact person Telephone number ((812) 9~1-7858 A. Thomas Hardy Resolution number Name of designating body Location of property County Taxing district North Port Business Centre, Jeffersonvilta, indiana, 47130 Clark ESTIMATED Descript on of rea property improvements and / or new manufacturing equipment and / or research and development equipment (use additional sheets f necessary) Start Date Completion Date Production machinery & equipment, computer equipment, furniture & fixtures Real Estate New Mf9 Equipment 10/0112004 12/31/2009 R & DE 10/01/2004 12131/2009 Current number Salaries Number retained Salaries dditional Salaries 70 $3,2 million w/benefits 70 $3.2 million w/benefita 20 $.9 million w/benefits Research and Development NOTE: Pursuant to lC 6-1.1-12.1 -5.1 (d) (2) the Real Estate Improvements Machinery Equipment COST of the property is confidential Cost ~.ssessed Value Cost Assessed Value Cost Assessed Valu~ Current values $1,000,000 $0 Plus estimated values of proposed project $1,500,000 $100,000 Less values of any property being replaced $0 $100,000 Estimated solid waste converted (pounds) ........................ Estimated hazardous waste converted (pounds) ....................... Other benefits: Key Electronics, Inc. will be a major employer in a non-polluting/high tach manufacturing sector which will enable Key to function as a long-term good corporate citizen of the Jeffersonville community. Key Electronics does not compete with other Jeffersonville businesses bat does effectively compete with off-source manufacturing plants. Operating Key as efficiency as possible allows Key to compete in a world economy and maintain good paying jobs within our local communities. I hereby certify that the representations in this statement are true. Title Date signed (month, day, year) Si~~_ President 03/02/2004 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 6-1.1-12.1-2. 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; r~Yes []No 2. Installation of new manufacturing equipment; FqYes []No 3. Installation of new research and development equipment; [] Yes [] No 4. Residentially distressed areas F'IYes []No C. The amount of deduction applicable for redevelopment or rehabilitation is limited to $ .................. cost with an assessed value of $ ................... D. 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 $ .................... . F. Other limitations or conditions (specify) .......................................................................... Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: (signature and title of authorized member) Attested by: Telephone number ~(esignat~d body Date signed (month, day, year) * If the designating body limits the time period during which an area is an economic revitilization area, it does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under lC 6-1.1-12.1-4 or 4.5 STATEMENT OF BENEFITS State Form 27167 ¢R7 / 12-01 Prescribed by the Deoartment of LocaI Government Finance EXHIBIT 'B2' FORM SB - 1 INSTRUCTIONS: This statement must ce suemdted to ne cody des gna ng the economc revitifizafion area prior to the public hearing if the designating body requires infor- mation from the applicant in making its decision about whether to designate an Economc Revitalization Area. 0 herwise this sta ement must be submitted he desi natin oeo BEFORE a person insta s he new manufacturing equ pment and / or research and development equipment, or BEFORE the ~r~deve/oo%nt o~rCeha~litation of real property for wh ch the person wishes to claim a deduction. P~jec s" planned or committed to aRer July f, f987 and areas aes¢gnated after Juty 1, f987 require a STATEMENT OF BENEFITS. (lC 6-f. f-¢ 2.1) 2. Approval of the designating body (Cty Council, Town Board, County Council, otc ) mus be obtained pdor to initiation of the redevelopment or rehabilitation, or pdor to installation of the new manufactudng equipment and / or research and dave opment equipment, BEFORE a deduct on may be approved, 3 To obtain a deduction, Form 322 ERA, Real Estate Improvements and / or Form 322 ERA / PPME and / or 322 ERA / PPR & DE must be filed with the county audito~ With respect to rea properly, Form 322 ERA must be filed by the later ot~- ('/) May 1 O; or (2) thirty (30) days after a notice of increase in real oroperfy assessment is received from the township assessor. Form 322 ERA I PPME and or 322 ERA PPR & DE must be filed behveen March ~ and May ~5 of the assessment ,'ear m which new manufacturing equipment and / or research and development equipment becomes assessable, unless a filing extension nas been obtained. A person who obtains a filing extension must file the form between March f and the extended due date of that year. 4. Property owners wnose Statement of Benefits was approved after June 30, 1991 must submit Form CF - f annually to show compliance with the Statement 5. The schedu~esestab~saeaun~er~C6-~-~"f2~-4(d)and~c6"~-12~1-4-5(e)e~ectiveJu~y~2~app~yt~anystatement~fbenefitsfited~n~rafter July l 2000 The schedules effective odor to July ~, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000. Name of taxpayer Hardy Properties LLC Address of taxpayer (street and number, city, state and ZIP code) 12507 Hummingbird Way, Sellersburg, IN 47172 Name of contact person Telephone number ((812) 9~1-7858 A. Thomas Hardy ~ Name of designating body Resolution number Location of property IC°unty Taxing district North Port Business Centre, Jeffersonville, Indiana, 47130I Clark De$cr p on of rea proper~y improvements and / or new manufacturing equipment and / or ESTIMATED research and deve opment equipment (use additional sheets if necessary) Start Date Completion Date New building construction: -100,000 sq. ff. of finished area with ~60,000 sq. ff. (~n- , Real Estate 09/01/2004 04/30/2005 first level and ~40,000 sq. ff. on second floor, ~ ,, N~w Mfg Equipment R&DE Current number Salaries Number retained Salaries Number additional Satades 70 $3.2 million w/benefits 70 $3.2 million w/benefits 20 $.9 million w/benefits Research and Development NOTE: Pursuant to lC 6-1,1-12.1-5,1 (d) (2) the Real Estate Improvements Machinery Equipment COST of the property is confidential. Cost Assessed Valu( Cost Assessed Value Cost Assessed Value Current values $0 Plus estimated values of proposed project $4,000,000 Less values of any property being replaced $0 Net estimated values upon completion of project 4 000 000 . · ~ ~ Estimated solid waste converted (pounds) ....................... Estimated hazardous waste converted (pounds) ........................ Other benefits: Key Electronics, Inc. will be a major employer in a non-polluting/high tech manufacturing sector which will enable Key to function as a long-term good corporate citizen of the Jeffersonville community. Key Electronics does not compete with other Jeffersonvilte businesses but does effectively compete with off-source manufacturing plants, Operating Key as efficiency as possible allows Key to compete in a world economy and maintain good paying jobs within our local communities. I hereby certify that the representations in this statement are true. Sig~~ Title Date signed (month, day, year) - Member 08/02/2004 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 6-1.1-12.1-2. 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; 2. installation of new manufacturing equipment; 3. Installation of new research and development equipment; 4. Residentially distressed areas []Yes E]No [~Yes [~No [~] Yes [~No [~Yes [~No C .The amount of deduction applicable for redevelopment or rehabilitation is limited to $ .................. cost with an assessed value of $ ................... D .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 $ ..................... F. Other limitations or conditions (specify) ........................................................................ Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: (signature and title of authorized member) Telephone number Date signed (month, day, year) Attested by: B(esignat~d body * If the designating body limits the time period during which an area is an economic revitilization area, it does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under lC 6-1.1-12.1-4 or 4.5 ADVISORY REVIEW BY THE DEPARTMENT OF REDEVELOPMENT KEY ELECTRONICS, INC. JULY 15, 2004 1. All required information as required in 37.01 (B) (1) - (12) has not been submitted. Much of this information, legal description, map, current assessed valuation, taxes paid in previous three years is not available as the exact location has not been determined. Conclusions can be dra~vn, however, since Key has indicated that new construction on vacant land is their intent and the curren~t taxes would therefore be negligible. 2. Although no written petition and statement of benefits other than the SB-1 form has been submitted I believe that the requirements of the Policy have been met to the extent possible given that no exact real property has been identified. 3. The general area, as discussed, of the proposed project is in the Inter City Road TIF. 4. The general area, as discussed, of the proposal is in an Economic Revitalization Area. 5. The general area, as discussed, of the proposal is not in an Economic Development Target Area. 6. Since this is an existing enterprise items (a) and (b) i.e. The number of jobs and the annual salaries can be a reasonably expected result. 6c. The amount of abatement per job would be an average of $435 per year over the ten year period. What follows is the methodology for the above estimates: Real estate investment $4,000,000.00 with a projected 70% assessed value of $2,800,000.00. Machinery investment of $1,500,000.00 with a projected 30% assessed value of $450,000.00 Research and Development Equipment of $100,000.00 with a projected 50% assessed value of $50,000.00. The effective tax rates ~vere developed by taking the proposed rate of 2.8826 and making adjustments for the Property Tax Replacement Credit and the Schools General Fund and CAGIT. 7. I believe that the total amount of abated real estate tax for the ten years would be $374,000.00. The Machinery would be $25,000.00 and the Research Equipment would be $3,000.00. This assumes 10-year abatement on real estate and 5 years on machinery and research equipment. The average salary and benefits would be $45,500.00 per worker. The $4,100,000.00 of salary and benefit at approximately 75% salary of $3,000,000.00 would produce $375,000.00 of 1% CAGIT and .25% EDIT over the ten years. The Real Estate taxes paid over the ten years would be $326,000.00.