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HomeMy WebLinkAbout2004-R-33 RESOLUTION 2004-R RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF pROPERTY TAX ABATEMENT WHEREAS, PI Louisville\Cardinal Investments (the "Applicant"), has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in personal property taxe~ to be assessed on proposed improvements to be located at America Place 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 p~escribed by the Indiana State Board of Tax Commissioners for such purpose, which application and statement include a description of the proposed real improvements, an estimate of the number of individuals who will be employed as a result, an estimate of the annual salaries of these individuals, and an estimate of the value of the proposed improvements hereto as Exhibit "A" and WHEREAS, the Common Council of the City of Jeffersonville has previously determined that the area where the' proposed improvements are located in the City of Jeffersonville is an Economic Reyitahzat~on Area pursuant to Indiana Code 6-1.1- 12.1 et seq. 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 thc estimate of the value of the proposed improvements 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 can reasonably be expected to r~suit from the proposed described improvements. Resolution No. 2004-R 3. That the estimate of the annual salaries of those individuals who will be employed or whose employme~t will be retained can be reasonably expected to result from the proposed improvements· · d 4. That all other information requested from the Applicant has been subm~tte , and the benefits described in !uch information can be reasonably expected to result from the proposed improvements. 5. That the totality°f benefits f°r said impr°vements is sufficient t° justify the deduction. BE IT FURTHER RESOLVED,ithat 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 the improvements pursuant to lC 6-1.1- 12.1-4.5, with the timely filing and perfection thereof with the Clark County Auditor's office. ~' ~,) / Pa.ssed and adopted this fourth day of Oct. ober, 2~04 by th~]~mon council of the City of Jeffersonville, Clark C°unty, Indiana' l~.// Robert L. Waiz/Jr., Presiding Officer ATTEST: Peggy WA~~t~, Clerk and Treasurer Presented by me as Clerk and Treasurer to the Mayor of the City of Jeffersonville, Indiana, this 1st day of November 2004. Peggy~W~~easurer Approved and signed by me this Ist day of Novem~~ Robert L. Waiz, Jr.,/Mayor STATEMENT OF BENEFITS SB - State Form 27t67 (R7 Prescribed by the Department of Local Government Finance STRUCTIONS: ........ n area -rior to the pub c hearing f the designating body requires infer- IN .... :"~'~ ~ the body designating the economic rew[l~lza~le · ~ ........ ~ ^rea Otherwise this statement must be sub_m-~d 1. Thie st ...... t wbetber to des~gna e manta u/ merit, or BEFORt: tne · m the a I/cant tn mak ng its dec~sl?n abou ' ui ment and I or research and develop q P 87 and to the des~gnah g Y. · · r~ for which the person w~ ment or rehab tation of real prope Y - -12f redeve op ..... OR7 r~t~ire a STATEMENT OF BENEFITS· (lC 6 f. areas designated after ,~u/y ~, · ..... ~ .... e c. must be oma ned prior to initiation of the redevelopment or rehabilitation, ' tin bed C Councb, Town Board, County Counc,~, ., ~^_~, ..... ~ ~ ~,, nt BEFORE a deduction may be approved. 2. Approval o.f the de~lgna g Y ( Y ' ~ ea '~ nt and I or reseamrl anu or prior to installation of the new manufactunn ~ .u~_me 2 ERA / PPME and I or 322 ERA PPR & DE, mus be filed with the · . 322ERA, RealEstatelmprovementsan~/,o,~F.°~rn~,~2~!~. ~l~=~lO. or(2)thirtv(30)daysafieranoticeofincroasein.re, al 3. To obtain a deduction, Form . ~_ ~.~ ~22 ERA must be filea oy ~e ~,~ ,~,. ~ .~ ,~,~ ~;~^ A~ ~ h~ ~.~t be filed between March 1 and May county auditor. With ~eepect. to r,e.a_?_ro,~pe~ ~vn~h,/;'~assessor Form 322 ERA I pPME and / or 322, cr~/~ Cr~ ~ ~'~-~ecemes assessable unless a filing fn tshi~n with tbe Statement 4. property owners whose Statement of Benefits was approved after June 30, lggl must submit Form CF- 1 annually to show compliance of Benefite. (lC 6-~.1-~ 2. ~-5. d) 5. The schedu~es estab~shed under ~C 6-~.`i~`i2.f*4(d) and ~C 6-`i.`~2. ~-4.5 (e) effectlve Ju~y1~ 2~ app~y t~ any statement ~f benefits fi~ed ~n ~r after before July 'i, 2000. July 'i 2000. The schedu es effective prior to July ~, 2000 shall continue to apply to those statement of benefits filed PI Louisville\Cardinal Investments ~nd number, city, state and ZIP code) 224 Eiler Ave. Louisville, KY 40214 number Name of designating body Jeffer~ County Location of properly Clark 1600 Dutch Lane Jeffersonville, IN 47130 and / or new manufacturing equipment and / or (use additional sheets if necessary) Rea[ property improvements include add office space including bathrooms, HVAC, convert warehouse space to production space, tear down concrete ramp and add parking, replace roof, and add dock. See attached list for manufacturing equipment. Real Estate New Mfg Equipment R&DE number Taxing d[stdct ESTIMATED Current ~umber 0 in indiana NOTE: Pursuant to lC 6-1.1-12.1-5.1 (d) (2) the COST of the property is corffidential. N tuber additiona Salades retained Salades ~ver 2 years 28 Fu 0 Real Estate Improvements Machinery Equipment Cost Cost Cost ,stimated values of proP°sed project Less values of any probert~y being rep[aced Net Estimated solid waste converted (pounds) __0_ ................ Estimated hazardous waste converted (pounds) Other benefits: I herebv,c~tify tha~resentations in this statement are true· of authorized representative - ~ ~ - ned (month, day, year) . ' ' nomic rev ta ization area and find that the applicant meets the ............ d our ,~rior actions relating to the designation of!~ .e~o "^d" Sa d resolution, passed under lC 6-1.1-12.1-2.5, pro Yve na tandards adopted in the resolutlO? prewo, us!y..a~p~pr.ov.e~u~ g?er.al s! ......... :n~ limitations as authorized un<~er 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: [] Yes [] N o 1. Redevelopment or rehabilitation of real estate improvements; [] Yes [] N o 2. Installation of new manufacturing equipment; [] Yes [] N o 3. installation of new research and development equipment; [] Yes [] No 4. Residentially distressed areas cost with an assessed C ,The amount of deduction appiicable for redevelopment or rehabilitation is limited to $ ............... va ue of $ ............... D .The amount of deduction applicable to new manufacturing equipment is mited 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. ~p-ppmved: (signature and title of authorized member) Telephone number ~ned (month, da~ A--~sted by: (~ · urin which an area saneconomicrevitilizati°narea'itd°esn°tiimitthelength°ftime .ifth~desi,~natnebodylimitsthetlmepe~iodd g L _. .... .~.~sianated under lC 6-l.1-12.1-4 or 4.5 a taxp~Y~ is er~tled to receive a deduction to a numuer ,~. y~o,o ~ STATEMENT OF BENEFITS State Form 27167 (R7 112-01) Prescribed by the Department Of Local Government Finance FORM SB - 1 . · dar to he ublic hear ng if the designating body requires ir~for- iNSTRUCTIONS: . - - ~ o~,~,~finn t conomic revitihzatlon area p , , , P * .~,~*.'o his statement must be subm ted 1. Th s s atement must be · n abou whether to des gnate an Ec h and developmen equnment or BEFORE the · om the a l/cant ~n making ~ts decis¢? facturin equipment and or rese?c ,, . y , ma(ion f, r .___,,~,~,, BEFORE a person ~nstalls t~e new menu ,~¢?tn n a' a deduction, 'Projects planaed or committed to after Jul t 1987 and PME and I or 322 ERA PPR & DE, taus be filed with the , I Estate mprovements and I or Forn? ~22 .ER.A.,/.P._~_. ~. ~./2~ thirb/~30i days after e notice of increase in real 3. To obtain a deduction, Form 322 ERA, Rea ERA must be fi ed by the later Or: ( U ~w~y ,~;,.~. ~ ~ 7~ ~'ust be filed between March I and May county a.d o,. ith ,¢ pect. Fo.--. ER*/p,.ME and, or ;4.- nt becomes aaaessab' , un, ss a extension has been obtamed, A person who obtains a g I annually to show compliance with the Statement 4. Property owners wh°ae Statement °f Benefits was appr°ved afier June 30' tggl must submit Form CF- 5, The schedules established under lC 6-1.1-12.1-4(d) and lC 5-1.1-f2.1-4.5 (e) effective July t, 2000 apply to any statement of benefits fi/od an ar after filed before July 1, 2000, July 1, 2000, The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits PI Louisville\Cardinal Investments and number, city, state and ZIP code) 224 Filer Ave. Louisville, KY 40214 ((502) 3~8-6555 Resolution number ¢ ~ Taxing district rk ESTIMATED Start Date Completion Date Real Estate 08/23/2004 10/15/2004 New Mfg Equipment R&DE , of contact person County Clark 1600 Dutch Lane 3effersonville, IN 47130 md / or new manufacturing equipment and / or (use additional sheets if necessary) Real property improvements include add office space including bathrooms, HVAC, convert warehouse space to production space, tear dow~ concrete ramp and add parking, replace roof, and add dock. See attached list for manufacturing equipment. Name of designating body Current number 23 Full 4 Part $800,000.00 Number retained Salaries Number additional NOTE: Pursuant to lC 6-1,1-12.1-5.1 (d) (2) the Real Estate Improvements Machinery Cost property is confidential Cost values s est/ Less Cost s 0 Estimated solid waste converted (pounds) _0__ .................. Estimated hazardous waste converted (pound) .................... Other benefits: · e of authoriz ns in this statement are true. ADVISORY REVIEW BY THE DEPARTMENT OF REDEVELOPMENT P.I. LOUISVILLE/CARDINAL ENVESTMENTS LLC JULY 20, 2004 1. All information as required in 37.01 (B) has been submitted. 2. No written petition was made except for the SB-1 and the "other benefit" section was left blank. However, it does seem that the requirements of this policy have been met, except as indicated in numbers 4 and 5 below. 3. The described area is not in a tax allocation area. 4. Although I do not have a complete description of all revitalization areas with-in the city, this would not seem to be in any Economic Revitalization Area. 5. The area is not 'in an Economic Development Target Area. 6. (a) Since this is an eXisting business I would expect at least the 23 full time and 4 part-time employee positions to result. I would think that in the beginning most of these jobs would be filled by non-Jeffersonville non-Indiana residents. (b) The estimated salaries without benefits, of $800,000 for 23 full-time and 4 · · ' $32,000 annuallyperjob. The part time are good paying ]obs, averaging proposed additions average $17,600 per year. This assumes the part-time are half-time jobs. The current positions that average $32,000 yearly would for some time be for individuals commuting fr°m out of state. The proposed addition of five full-time and seven part-time jobs averaging $17,600 yearly is less than the current $13.82 Clark County average. Abatement per employee isn't computed because I have no feel for when or if the 25 current higher paying jobs would be held by Southern Indiana residents. The detailed machinery listing provided has only four items with an original cost over $20,000.00 and much is beyond its depreciable life. I would recommend against any machinery abatement. Given that the property is an old existing warehouse space and that the $32,000.00 average paying jobs do not fit everyone's definition of new, we would not usually consider the $400,000.00 of proposed improvements for abatement. However, there is an issue worth considering. The property for whatever reason is assessed as land only for $165,600.00. The expected sale price is $800,000.00 and a stated $400,000.00 ~vorth of rehabilitation. If the sale will cause the assessed value to change, the table below would be the result. ELEVEN YEAR TAX COLLECTION FIVE-YEAR ABATEMENT REHABILITATION CURRENT PROPOSED Land Only Increased Assessment due to sale $30,965.00 $30,965.00 83,116.00 $400,000.00 Rehabilitation with Five year abatement Total Collected 38__~080 O0 $152,161.00 TOTAL ABATEMENT $14,280.00 I recommend a five-year abatement on rehabilitation investment.