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HomeMy WebLinkAbout2006-R-14 RESOLUTION NO. 2006-R-~ RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, SDI, INC., has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in real and personal property taxes to be assessed on a proposed new facility and new manufacturing equipment to be located in the Clark Maritime Center located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, SDI, 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 89-R-32, and confirming Resolution 89-R-39; 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, ~hat it specifically and affirmatively finds as follows: 1. That the estimate of the value of redevelopment or rehabilitation, $5,000,000 to $6,000,000 in real improvements and $33,000,000 in 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 37 individuals who will be additionally employed and 42 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 $2,170,251 of those individuals who will be added and $2,532,000 of those who will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation. 4. That all other information requested from SDI, 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 rehabilitation is sufficient to justify the deduction. 6. That SDI, Inc. 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 FURTItER 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 SDI, INC., and that said company shall be entitled to deduetions for a period of ten (10) years for personal property, and ten years on real property pursuant to the provisions of IC 6-1.1-12.4 for real property and IC 6-1.1-12.1-4.5 Version b for personal property, with the timely filing and perfection thereof with the Clark County Auditor's office Passed and adopted this((~ay of~L~k2006, by the Common Council of the City of Jeffersonville, Clark Court , Indmna. President, Common Council ATTEST: Peggy Wilder, Clerk-Treasnrer Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville, Indiana, this ~-~ day of ~ ,2006 Peggy Wilder, Clerk-Treasurer ,2006 ATTACHMENT "A" ATTACHMENT TO THE STATEMENT OF BENEFITS FOR SDI, INC. February 6, 2006 The council will grant 10-year abatement on $5,000,000 to $6,000,000 in real and $33,000,000 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-1 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 fails 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 6-1.1- 12.1-14. Steel Dynamics, Inc. Steel Dynamics, Inc. ' Statement of Benefits, Real Estate Improvements Form SB-1/RE The project consists of the expansion of the facility owned by Steel Dynamics, Inc. (SDI) in the Clark Maritime Centre in Jeffe~-§onyille~ IN. ~Tbe current facility consists of hot-dipped galvan/zing line with a capacity Ofapp~'0~iely 335,000 net tOns. The eXPar/sion consists 0f equipment that ~Vill'fiI16bY'SDI ~o~ ......... produce galvalume products along with the current galvanized products~ The anticipated cost of this equipment is between $5 and $6 million. In addition, SDI will acquire machinery that will provide acrylic coating to the products produced in Jeffersonville. The anticipated cost of the acrylic coater is between $1 and $2 million. The final part of the expansion consists of acquisition and construction of a new pre-paint coil coating facility. The coil coating facility will have an annualcapacity ofapproximately 190,000 nettons and will be able ~o paint the various products produced at the Jeffersonville facility. It is anticipated that the new line will employ between 30 and 40 employees and will have a machinery and equipment cost in the range of $26 to $28 million. The real property improvements will consist ora building to house the new operating facility, a boiler room and a motor room. In addition, various innd improvements will be required to allow for the efficient flow of products. The anticipated cost of the real property improvements is between $5 and $6 million. The coil coating facility will offer value-added opportunities for galvalume as well as the existing galvanized capabilities and will position SDI to participate in the growing Southern markets for pre-painted Steel. Steel Dynamics, Inc®. Corporate Office 6714 Pointe Inverness Way, Suite 200 For[ Wayne, Indiana 46804 (260) 459-3553 (260) 969-3590 fax www.steeldynamics.com December 22, 2005 City of Jeffersonville Common Council 501 E. Court Avenue Jeffersonville, 1N 47130 Re: Steel Dynamics, Inc., Jeffersonville Facility Dear Sir or Madam: Enclosed please find the completed SB-1/RE and SB-1/PP for the proposed expansion at our Jeffersonville, IN location. We would like for the Council to consider our request for real and personal property tax abatement. Prior to the public hearing regarding the requested abatements, we would like to request a meeting to include representatives from the Council, the Port Authority and the Indiana Economic Development Corporation to discuss incentives for this project. Tom Hartman, Controller-Jeffersonville Facility, will be contacting yo~ regarding the scheduling of this proposed meeting. If you should have any questions, please feel free to contact Tom at (260) 868-8125 or myself at (260) 969-3569. Sincerely, Marlene K. Campbell Senior Tax Accountant Steel Dynamics, Inc. Enclosures Steel Dynamics, Inc. Statement of Benefits, Personal prOperty Form SB-1/PP The project consists of the expansion of the facility owned by Steel Dynamics, Inc. (SDI) in the Clark Maritime CeriSe in Jeffersonville, IN. The current facility consists of hot-dipped galvanizing line with a capacity of approximately 335,000 net tons. The expansion consists of equipment that will allow SDI to produce galvalume products along with the current galvanized products. The anticipated cost of this equipment is between $5 and $6 million. In addition, SDI will acquire machinery that will provide acrylic coating to the products produced in Jeffersonville. The anticipated cost ofthe acrylic coater is between $1 and $2 million. The final part of the expansion consists of acquisition and conslamction of a new pre-paint coil coating facility. The coil coating facility will have an annual capacity of approximately 190,000 net tons and will be able to paint the various products produced at the Jeffersonville facility. It is anticipated that the new line will employ between 30 and 40 employees and will have a machinery and equipment cost in the range of $26 to $28 million. The coil coating facility will offer value-added opportunities for galvainme as well as the existing galvanized capabilities and will position SDI to participate in the growing Southern markets for pre-painted steel.  STATEMENT OF BENEFITS I FORM PERSONAL PROPERTY SB - 1 I PP State Form 51764 (5-04) Preschbed by the Department of Local Government FinagCe INSTRUCTIONS: 1. This statement must be submitted to the body designating the economic revitaliza~on area prior to the public headog if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Are~. (~th~nw~e ~ statement rnu~E ~be fo the designating body BEFORE a person installs the new manufac~unng equipment and/or research and development equipment, and/or foglst~al equipment and/or information technokwJy equipment for whfoh the person w~bes to claim a deductibn. "Projects" planned or oarnmiffed to after Ju~, 1, 1997 and areas designated after July 1, 1987 require a STATEMENT OF BENEFITS. (lC 6-1.1-12 1) 2. Approval of the designating body (City Council, Town Board, Cousty Council, etc.) must be obteiced pnbr fo ~};stallabbn of the new manufoctun~g equ~)~ment and/or research and development equipment and/or Iogis#oal distribution equl~oant and/or taforma~on tachqology equipment. BEFORE a deduction may be approved 3. To obtain a deduction, Form 322 ERA/PPME and/or Form 322 ERA/PP Other, must be filed wkh the qoush/ audi~o~ Form 322 ERA/PPME and/or Form 322 ERA/PP Ob~er must be filed between March I and May 7 5 Of Ere assessment year ~; which new menufaciurfog equipment and/or research and development equipment and/or fogisUcal distribution equipment and/or information technology equipment becomes assessable, un/ess e fili~g ex~nsion has been obtained. A person who obtains a filing extension must file the form be~veen March I and the extended due date of that yse~ 4. property owners whose Statement of Benefits was approved after June 30, 1gEl must submit Form CF-I annustly fo show compliance with the Statement 5. The schedufos established ~nder lC 6-1.1-1Z l~f(d)and ~C 6-1~1~12~ f-4~ 5(e) eh%`ctive Ju~y1~ 2~ app~y fo any ststement ~f beoa~s ~ted oa ~r after ' 1, 2000, The schedules e~ pdof t6~lU~y 1, 2000 Shell con,hue to apply to those statement of be~;effis filed before July 1, 20~0. Name of taxpayer Steel Dynamics, Inc. Address of taxpayer (street and number, city, state, ZIP coge) 5134 Loop Road Jeffersonville IN 47130 Mary Fink (260) 969-3562 Common Council of the City of Jeffersonville, IN 5134 Loop Road Jeffersonville IN 47130 Clark Jeffersonville See attached sheet ManufactudngEquipment 01/02/2006 05/31/2007 42 2,532,000 42 2,532,000 37 2,170,251 E~mated ~waste converted (pe~nds) E~mated solid waste converted (pounds) Title Date signed (month, day, year) * See lC 6-'1.'1-~2.' Form SB-IIPP, page I - Copyright © 2005 DIS, Inc. We have reviewed our p~or actions relating to the das~jeation of th~s economic revitalization area and find that the aplYacant meets the genoral standards adopted in the resolution previoaslY approved bY this b°dy' Said rasokition, pessed under lC 6-1.1-12.1-2.5, pro- vides for the following limitatioes as authorized under lC 6-!.!,~1~1~2. A. The designated area has been limited to a period of time Oat to exceed calendar years * (see below). The date this designa~on ex~ires is B. The lype of deduction that is allowed in the designated area is limited to: [3Yas '~ D No 1. astallation of new manufacturing equipment, 2. nsta ation of new research aod deva!opmen? equipment; [] Yes El No ' 3. Installation of new logistical distribution equipment. F1 Yes n NO 4. inatallation of new information technology equipment; [3Yes I~ No C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of $ ' - -' · · cast with an ~ D. The amount of deduction applicable to new research and development equipment ~s timited to $ value of $. cost with E. The amount of deduction applicable to new logistical distn'butiea equipment is limited to $ an assessed value of $ F. The amouat of deduction applicable to new ioformation tochnologY equipment ~s limtied t° $ coat with as assessed value of $ - G. Other limitations or cond~s~) H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new leg~atical drstribution equipment and/or new ioformatton technology equipment installed and first ctatrsed ehg~ble for deduction aRer July 1,2000 ~s allowed D 1 year n 6 years D 2 years [] 7 years [3 3 years D 8 years [3 4 years [3 9 years [3 5 years** [3 10 years ** ** For'ERA's established p~or fo July 1, 2000 0nlY a 5 or 10 year schedule may be deducted. _ _ ~_. - _~ ,~-, ,~.~ ~^~r,,, of bene~ffis ~ s~at fo justify the deduction u~ ,~ . ..... . . it does eat limit the length of time * If the designating body limits the time period dunng which an area ~s an economic revitalizatiea area, STATEMENT OF BENEFJ~S REAL ESTATE ]MPRO~ State Form 51767 (5-04) pmscnbed by the Depa~tm~qt of Lecal Government Finance FORM SB - I / RE INSTRUCTIONS: .... . . 1, This sfatament must be submEtad to the body designating the economic, tevltalizattan area. ~ior. to. the pubtic, hearing if. the des~nating, body requires info-. marion from the applicant in making its deci~on about whether to de~gnate an Economic RevrYalizat~n Area. Otbo~e ttas statement mu~t be subm~ed Name of taxpayer Steel Dynamics, Inc. Add~ of ~payer (s~e~ and numbs, d~. s~e, ZIP c0de) ~134 Loop Road Jeffersonvitle IN 47130 Name of contact person (260) 969-3562 Mary Fink Name of designa§ng body Common Council of the City of Jeffersonville, IN Location of p~pe~y Clark Jef fersonvilte 5134 Loop Road Jeffersonville IN 47130 See attached sheet StertDate Completion Date 42 2,532,000 42 2,532,000 37 2,170,251 :.lus ~-,~i. ~ walu~ of I~. ~ ~l~t 5~000,000 6,000,000 ~tot ~m~ vta~ upon ~l~$on of ~ ilffi/ l .... !homb¥ ~,ifi/that the mp~tions m th~$ ~tatoment are tru~ TEN YEAR REAL PROPERTY Cost $5,500,000 AV @ 80% $4,400,000 Gross Rate 0.029326 PTRC 0.325343 Net Rate 0.01978499 Year's Tax $87,054 New Jobs Added Payroll 37 $2,170,251 Taxes Paid Wages w/o OT $58,655 Cost PP PTRC NET RATE Current Yr TTV % from Form Taxes 103 Abated Schedual A Year 1 $0 $87,054 40 Year 2 $4,353 $82,701 60 Year 3 $17,411 $69,643 55 Year 4 $30,469 $56,585 45 Year 5 $43,527 $43,527 37 Year 6 $52,232 $34,822 30 Year 7 $60,938 $26,116 30 Year 8 $69,643 $17,411 30 Year 9 $78,349 $8,705 30 Year 10 $82,701 $4,353 30 Total $439,623 $430,917 TEN YEAR PERSONAL PROPERTY Pool 3 9 to 12 Life $33,000,000 0.160441 0.024620907 Assessed Value or TTV $13,200,000 SI9,800,000 $18,150,000 $14,850,000 $12,210,000 $9,900,000 $9,900,000 $9,900,000 $9,900,000 $9,900,000 Taxes Paid 0 $48,749 $89,374 $109,686 $120,249 $121,873 $146,248 $170,623 $194,998 $219,372 $1,221,172 Taxes Abated $324,996 $438,745 $357,496 $255,934 $180,373 $121,873 $97,499 $73,124 $48,749 $24,375 $1,923,164 Total Taxes Abated $2,354,081 Real Propedy Plus $439,623 / Promised Jobs = Abatementperjob / 79 $29,798 Pemonal Property Plus Cagit Plus Edit $1,221,172 $217,025 $54,256 TotalTaxes Paid $1,932,076 Yearly Thereafter $602,082