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HomeMy WebLinkAbout2006-R-12 RESOLUTION NO. 2006-R- RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, JDC VENEERS INC., and its subsidiary Cornerstone Architectural Plywood, has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in personal property taxes to be assessed on proposed new manufacturing equipment to be used in property located in the AMERICA PLACE DEVELOPMENT located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, JDC VENEERS INC., has submitted a Statement of Benefits on the form prescribed by the Indiana State Board of Tax Commissioners for such purpose, which 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; and WHEREAS, the Common Council of the City of Jeffersonville has previously determined that the area in which the proposed redevelopment project is located in the City of Jeffersonville qualifies as an economic revitalization area pursuant to Indiana Code 6-1.1-12.1-5, et seq., and Resolution 90-R-10; and WHEREAS, the Common Council has reviewed the Statement of Benefits and its attachment "A" submitted herein, and attaches and incorporates the Statement of Benefits submitted herein, and attaches and incorporates the attachment "A" to this Resolution. 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 redevelopment or rehabilitation of $910,000 in new personal property is reasonable for projects of the nature described in the Statement of Benefits submitted by the company. 2. That the estimate of the number of 25 individuals who will be additionally employed and 8 individuals whose employment will be retained can reasonably be expected to result from the proposed described redevelopment or rehabilitation. 3. That the estimate of the annual Salaries of $862,400 of those individuals who will be additionally employed and $283,560 of those whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation. 4. That all other information requested from JDC VENEERS, INC., has been submitted, and the benefits described in such information can be reasonably expected to result from the proposed described redevelopment or rehabilitation. 5. That the totality of benefits for said redevelopment or rehabihtation is sufficient to justify the deduction. 6. That JDC Veneer has agreed to the payment of a 15% fee to the Jeffersonville City Council annually as described in IC 6-1.1-12.1-14. BE IT FURTHER RESOLVED, that the Common Council of the City of Jeffersonville, Indiana, hereby approves the application for deduction presented by the Statement of Benefits filed by JDC VENEERS, INC., and that said company shall be entitled to deductions for a period of ten (10) years for personal property, pursuant to the provisiOns of I.C. 6-1.1-I2.1-4.5 Version b, with the timely filing and perfection thereof with the Clark County Auditor's office Passed and adopted this ~) day of C~L~ ,2006, by the Common Council of the City °fJeffers°nville' Clark ~~i ff~. ~/~ President, Common Council Peggy Wilder, Clerk-Treasurer Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville, Indiana, this day of C~i~ ~ ,2006 Peggy Wilder, Clerk-Treasurer obert '  STATEMENT OF BENEF TS F FORM PERSONAL PROPERTY - ISB- 1 / P[ State P<3rrn 51764 (5-04) Address of taxpayer (street and numbe~ ci~ state and ZIP c~e) and/or logistical distribution equipment end/or information technology equipment County Taxing dis=rict ESTIMATED Start Date Completion Manufacturing EqulpmentI R & D Equipment Log/st D/st Equipment ' IT Equipment ' Salades NOTE: Pursuant to lC $-1.1-12.1-5.1 (d) (2) the COST of ~he property is con~dential. Plus estimated vatues of proposed project Less values of any property being replaced Mahufacturing R & D Equipment Equipment Logist Oist Equipment Cost Assessed Cost Assessed Value Value Cost Assessed Value IT Equipment I hereby certify 'that the representations in this statement are true. ~t? o/o , ._____ vewed our r or act Dna relating to the designer on of this economic revitalization area and find that the applicant mee[~ We have re ' P . · · ' solution assed under tC 6-1 1-12 %2 5, I general standards adopted m the resolubon prevtously approved by th~s body. Said re . P · v/des for the followiCtg limitations as authorized under lC 6-1.1-12.1-2. A. The designated area has Dean limited to a period of t 'ne not to exceed designation expires is B. The type of deduction that is allowed in the designated area is limited to: I [nata[lafion of new manufacturing eouiomant: 2 nstallation of new research and development equipment: 3. Installation of new logistical distribution eeuipm, em. 4. Installation of new information technology equipment: calendar years" (see be/ow), The date I~Yes []No []Yes FiND t--t Yes E]No I- Yes [] No .The amount of deducbon applicable to new manufacturing equrpment is limited to $ cost with an essa: value of $ The amount of deducbon applicable to new research and development equipment is limited to $ cost an assessed value of $ The amount of deduction applicable to new logistical distribution equipment is limited to $ cost wit assessec value of $ F. The amount of deduction applicable to new information technology eduioment is limited to $ _ cost wit assessed value of $ G Other limitations or cond~bons (specify) H The deduction for new manufacturing equipment and/or new research and oevelopmem equipment and/or new logistical distribu equipment and/or new information technology equipment instaHec and first claimed e gible for deduction after July 1 200(} is allo' Fi 1 year [] 6 years [] 2 years [] 7 years [] 3 years -- [] 8 years [] 4 years [] 9 years --I 5 years"' [] 10 years"' "For ERA's established poor to July 1. 2000 on~y a 5 or 10 year schedule may be deducted. adze and have determined that the tota[i[~, of benefits is sufficient to .~stify the deduction described above. · If the designaun§ body limits the time period during which an area is an economic revitalization area it does '~ot limit the Iengtn o time a taxoayer ~s entitled to "eceive a deduction to a number of years designated under lC 6-1.1-12,1-4.5 ATTACHMENT "A' ATTACHMENT TO THE STATEMENT OF BENEFITS FOR JDC VENEERS, INC. FEBRUARY 6, 2006 The council will grant 10-year abatement on $910,000 in personal property as allowed by state statute. This applies to qualifying new equipment ordered after the abatement is granted and is subject to the dollar limit specified on the SB-1. This abatement will only apply to equipment ordered and installed in the first 24 months following the granting of abatement. The company will provide jobs and salaries as specified in the SB-I and any attachment thereto. The "salaries" on the SB-1 is agreed to mean base hourly wages, without overtime or benefits, times 2080 hours per year for the number of employees as indicated in Section 3 of the SB-1. In the case ora ten-year abatement it is the expectation of the council that the company will reach the number of employees and average wages specified on the SB-1 within three years of the date of the granting of the abatement. The company understands that his abatement is being offered based upon those jobs and wages. If the company fails to substantially reach those numbers or falls to maintain those numbers over the life of the abatements, the council may as provided by law rescind this abatement. The company agrees to make available any and all information the council deems necessary to verify compliance. The company agrees to pay an annual fee of 15% as described in Indiana Code 6-1.I- 12.1-14.