HomeMy WebLinkAbout2004-R-27 RESOLUTION 2004-R ~
RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY TAX ABATEMENT
WHEREAS, Kellems & Coe Tool Corp. (the "Applicant"), has petitioned the
Common Council of the City of Jeffersonville, Indiana, for a deduction in personal
property taxes to be assessed on new manufacturing equipment to be located at the
North Port Business Park in the City of Jeffersonville, Clark County, Indiana; 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 for such purpose, which application and statement include a
description of the proposed new equipment, an estimate of the number of
individuals who will be employed as a result of the new equipment, an estimate of
the annual salaries of these individuals, and an estimate of the value of the new
equipment hereto as Exhibit "A" and
WHEREAS, the Common Council of the City of Jeffersonville has previously
determined that the area where the proposed new equipment is located in the City
of Jeffersonville is an Economic Revitalization Area pursuant to Indiana Code 6-1.1-
12.1 et seq., Resolution 97-R-10 and Confirming Resolution 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 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 new equipment 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 new equipment.
Resolution No. 2004-R
3. That the estimate of the annual salaries of those individuals who will be
employed or whose employment will be retained eau be reasonably expected
to result from the proposed described new equipment.
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 new equipment.
5. That the totality of benefits for said new equipment 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~ and that said Applicant shall be entitled to
deductions for a period of 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 the Clark
County Auditor's office.
Passed and adopted this fourth day of October, 200/~/B~on council of
Robert~'~. WaiSt., Presiding Otiicer
ATTEST:
Peggy V~rd~er, Clerk and Treasurer
Presented by me as Clerk and Treasurer to the Mayor of the City of Jeffersonville,
Indiana, this ~h day of October 2004. ~A ~
..~ .--th da e~///
Approved and s~gned by me th~s 4 y of OctOb
Robert I~ Waiz, ~r. Mayor
PETITION
TO: Common Council of the City of Jeffersonville
FROM: Kellems & Coe Tool Corporation ("Kellems & Coe")
RE: Petition for Tax Abatement for Manufacturing Equipment
DATE: September 20, 2004
Pursuant to Ordinance No. 96-OR-84 of the City Council issued on November 18, 1996,
Kellems & Coe, by its counsel, J. Spencer Harmon, hereby provides the following information:
1. Applicant -- Kellems & Coe Tool Corporation
2200 Centennial Boulevard
Jeffersonville, Indiana 47130
2. The address of the proposed site is 2200 Centennial Boulevard, Jeffersonville,
Indiana 47130.
3. The Plant Site is located in Northport.
4. No tangible personal property will be replaced by the new manufacturing
equipment.
5.
The real and personal property taxes paid at the location during the previous three
years are as follows:
Real Pro ert
$15,410.00
Year Pers~
2003 $34,001.00
(not yet paid)
$18,473.00
$6,449.00
2002 $45,202.00
2001 $50,212.00
2000 $42,042.00
K3106:3124:38226:1 :J EFFER-SONVILLE
6. The current number of total employees is 44. The number of full-time employees
is 44, and the number of part-time employees is 1. The current number of full-time female and
minority employees is 4 and the number of part-time female and minority employees is 1.
7. The estimated cost of the new manufacturing equipment for which abatement is
being requested is $500,000.
8. The estimate of the number of new permanent jobs to be created by the addition
of the new equipment within one year of completion is 4. The average annual salary for each
position will be $23,250. There will be no impact on current full-time and part-time jobs. 9. The new manufacturing equipment has not been installed.
10. The name and address of the person to contact regarding notice of Council
meetings and public hearings is J. Spencer Harmon, Stites & Harbison PLLC, 323 East Court
Avenue, Jeffersonville, Indiana 47131, (812) 282-7566 (fax 812-284-5519).
11. Attached is a duly executed Statement of Benefits, Form SB-1.
Signed this 20th day of September, 2004, by J. Spencer Harmon, counsel for Kellems &
Coe Tool Corporation.
j~--~nce_r H_.arr~on
~ITES & HARBISON, PLLC
323 East Court Avenue
Jeffersonville, 1N 47130
812-282-7566
K3106:3 i 24:38226:1 :JEFFERSONVILLE
EXHIBIT A.
DESCRIPTION OF EQUIPMENT BEING PURCHASED
Cincinnati Milacron Roboshot 250R, Mfg. 1999
500 ton Cincinnati Milacron
Related equipment and other manufacturing equipment
K3106:3124:38226:1 :JEFFERSONVILLE
ADVISORY REVIEW BY THE DEPARTMENT OF REDEVELOPMENT
KELLEMS & COE TOOL CORPORATION
SEPTEMBER 21,2004
1. All information as required in 37.01 (B) (1) - (12) has been submitted.
2. All requirements of Jeffersonville's Tax Abatement Policy have been met.
3. Kellems & Coe is in the Inter City Road TIF.
4. Kellems & Coe is in an Economic Revitalization Area.
5. Kellems & Coe is not in an Economic Development Target Area.
(a) And (b) The nature of the equipment was not described in detail. However,
there is a statement that no equipment was being replaced and the added number
of new jobs is a modest four. It seems reasonable that four new jobs would be
created. Further, I have had a frank conversation with Spencer Harmon, Kellems
& Coe's attorney explaining that Jeffersonville's Common Council and
Redevelopment Department now does a careful review of promises made in forms
SB -1 each year and the importance that overly optimistic numbers not be used.
The SB-1 indicates the four new salaries will be $32,180.00 each. The form lists
current Salaries of $1,956,817 with 44 employees indicating an average of
$44,677.00; it therefore seems reasonable that the new jobs would average the
$32,180.00.
6c. The amount of abatement per job created would be $2,214 or an average of
$440.00 per year over the five-year period. The total amount of abatement would
be $5,409.
Recommendation
Kellems & Coe's 2004 CF-1 for previous abatements has real property investment
$200,000.00 over the goal of their original request and personal property
investment $1,179,000.00 over goal. The four new hires will bring them only to
the point they stated they were at in their 2004 CF-1 filing.
The Department of Redevelopment recommends approval of five-year abatement.
STATEMENT OF BENEFITS LSB - 1 / PP
PERSONAL PROPERTY
State Form 51764 (5-04)
STRUCTIONS: · · nm c revtta izafion area prior to the pub c hear ng if the de~ gnating body r~qu~es,
IN . ent must be submitted to the body.des;gnatmg the econ~.: ..... ~ Economic Re~/itafization Area. Otherwise this statement must be su~n;~ee
I. Ttes sta~em · ' makin it~ decl$ on about whether ta d~slgna[e a evelo mente ul me~, and/or loglstlcat dtstribU~ton
2. Approval~fthedesl~n, atta~, bo Y~n!~Y~i~m and/orte isNcald~stnbuh°neqummentand/°rlnf°rma~°ntech o gy q P
ame of taxpayer
KeUems & Cee Tool Corporation
~ss of taxpayer (street and number, city, state and ZiP code)
2200 Centennial Boulevard, Jeffersonvil[e, IN 47130
Carolyn Cee, President
T--~'eph ~ ne number
(812) 283-4435
ame of des[gnsting body
Jeffersonvitle City Council --------~county
~0f property ~ Clark
NoC(hport
f manufacturing e uipment and er research and development equipment
al dlstdbufion eq~pment and/or informatien technology equipment
~t sheets if necessary) M~nufactudn
O4-R-_ ...... ~
Utica
Start Date
See Exhibit A ar(ached hereto and made a part hereof.
9/25/2004 5/3i/2005
etained
Current number
44 1,965,817-00 14
; NOTE: Pursuant to lC 6-1.1-12.1~5,1 (d) (2) the
operty is confidential
Estimated solid waste c~nver[ed (pounds)
Other benefits:
Vatae
Numbersdd~on~
1,g65,817.00 4
Estimated hazardous waste converted (pounds) --
IT Equipment
Cost 'v~lue
See lC ~
authorized
ereb ced' ~tafionsinthisstatementaretrue.
· · ' omic revitmization area and find that the applicant meets the
' I r actions relating to th~ designation of this e,c;o~,av R~i resolution, passed under lC 6-1.1-12.1-2.5, pro-
have reviewed ou, r p.no! .... r,~.n .f orewous[ approved by thl .... j .... d _
general standards ~oo.p[~? }.n ~_...--~,.;;~.:~ge~d under ~ 6-1.1-12.1-2.
vides for the folJowmg iimtrauon~ ,~ ,~,~, .....
The designated area has been limited to a period of time not to exceed _ calendar years * (see below). The date this
designation expires is _
. The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment; [] Yes [] No
[]Yes []No
2. installation of new research and development equipment; []Yes []No
3. installation of new logistical distribution equipment' []Yes []No
4. Installation of new information technology equipment;
.The amount of deduction applicable to new manufacturing equipment is limited to $ _ __ _ cost with an assessed
value of $ cost with
.The amount of deduction applicable to new research and development equipment is limited to $ _ -
an assessed value of $ _ ' cost with an
E. The amount of deduction applicable to new logistical distribution equipment is limited to $ -
assessed value of $ _ cost with an
F. The amount of deduction applicable to new information technology equipment is limited to
assessed value of $ __ -- '
G. Other iimitations or conditions (specify)_
H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution
equipment and/or new information technology equipment installed and first claimed eligible for deduction after July '1. 2000 is a~lowed
for: ** For ERA's established prior to July 1,2000 only a
[] 'i year [] 6 years
[] 2 years [] 7 years 5 or f0 year schedule may be deducted.
[] 3 years ~ 8 years
[] 4 years [] 9 years
[] 5 years ** [] 10 years **
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.
Date signed (month, day, year)
Signature and title of authotfzed member) ~ephone number
· · · · · durin which an area s an economic revitalization area, it does not limit the length of
· e des/ nabng body hm~ts th~ t~me peno~ g ~.,~ years desianated under lC 6-1.1-12.1-4.5
ti [mfetha( taxpayer is entitled to race,ye a deduchon to a