HomeMy WebLinkAbout1999-R-06RESOLUTION NO. 99-R-_~._
A RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY TAX ABATEMENT
WHEREAS, Gateway Galvanizing INC. has petitioned the Common Council
of the City of Jeffersonville, Indiana, for a deduction in real property taxes to be
assessed on proposed improvements to be made in the Clark Maritime Centre
Business Park, located in the City of Jeffersonville, Clark County, Indiana; and
WHEREAS, Gateway Galvanizing 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 et seq., and Resolution 97-R-10 and Confirming Resolution
97-R-14; and
WHEREAS, the Common Council has reviewed the Statement of Benefits
submitted herein, and attaches and incorporates that Statement to this Resolution;
NOW THEREFORE, BE IT HEREBY RESOLVED by the Common Council of
the City of Jeffersonville, Indiana, that it specifically and affirmatively finds as follows:
That the estimate of the value of the redevelopment or rehabilitation is
reasonable for projects of the nature described in the Statement of Benefits
submitted by the developer.
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 or rehabilitation4
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 or rehabilitation.
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 redevelopment.
That the totality of benefits for said redevelopment is sufficient to justify the
deduction.
BE IT FURTHER RESOLVED, that the Common Council of the City of
Jeffersonvitle, 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 of five (5) years for improvements to real property, pursuant
to the provisions of I.C. 6-1.1-12.1-3(d) and I.C. 6-1.1-12.1-4(d)(3), with the timely
filing and perfection thereof with the Clark County Auditor's office.
Passed and adopted this /,~ day of /Z'"'-,~. ,199~.~.
'Thomas R. Galligah ~' /J
Presiding Officer ~/
ATTEST:
C. Richard Spencer, Jr. ~'
Clerk and Treasurer
Presented by .m.e as Clerk and Treasurer to the Mayor of said City of
Jeffereonville this ,/~, day of ?",~-~>, ,199 .
Clerk and Treasurer
Approved and signed by me this .//_/~'~ day of ,~ ,199~_.
Thomas R. Galligan,~May~
2
Gateway Galvanizing
INC
We are pleased to present to the Council the
proposed project of Gateway Galvanizin~ Inc~
owned by Brett Goff, Julian Dozier, Kern
Cauanaugh and Terry Arnio. Gateway Galvanizin~
Inco~ anticipates investing $4 million into a galva-
nizing plant with additional investment of $1.4
million in manufacturing equipment.
Gateway Galvanizing INC
· 38,000 square feet hot dip galvanizing facility
· Products to be galvanized will include; high-
way guardrails, overhead signs, rebar, large
structural steel, and miscellaneous products
such as nuts, bolts and nails.
· Hot dip galvanizing provides a corrosion resis-
rant coating to these products.
· Initial job creation of 25 jobs
· Expecting to create 60 full time jobs within a 3
year period
· This venture is being funded by four partners
with a total investment of 4 million dollars
· The group of partners has over 100 years of
combined experience in the galvanizing busi-
ness
· This experience includes; management of pub-
lic companies as well as managing companies
that were personally owned
· The company will serve the Indiana, Ohio and
Kentucky marketplace
Below is a summary of the NET proceeds for
the real property taxes and personal property
taxes over a five-year period.
We anticipate collecting $202,437 after
abatement.
Five Year Abatement Estimate
$ 175,060 Total Taxes Per Year, Real Property
$ -0- Total Taxes Per Year, Personal
Tax Received after Abatement
$ 73,605
$ 128,832
$ 202,437
Net Real Property/five Years
Net Personal Property/five Years
Net Taxes Over Five Year Period
Estimated Number of New Permanent
Gateway Galvanizing/NC., initially will em-
ploy 25 people with salaries totaling
$600,000 with an average salary of $24,000
per year. Within three years they anticipate
adding 60 additional jobs.
February 5, 1999
TAX ABATEMENT REVIEW
GATEWAY GALVANIZING INC
1117 Brown Foreman Rd., Jeffersonville, IN 47130
1. All information (petition, SB-1, filing fee, independent auditors report) has been submitted by
the Petitioner.
2. Conditions of policy are met, as Petitioner plans to build a new facility.
3. Project is located in an allocation area.
4. Project is located in an already established Economic Revitalization Area
5. Project is located in an Economic Development Target Area
Abatement Estimate:
Real Property
Equipment I H,400,000
over Five - year period:
$175,060
(Over five year period)
Value of Abatement Per Job Created:
(Based on 25 New Jobs Created)
$ 7,002
Additional Unabated Tax Received From Inventory:
Tax Received After Abatement:
(Over five-year period)
Real Property $ 73,605
Machinery 128,832
Tax Abateme~ Renew
GATEWAY GALVANIZING 1NC.
(~minue~
A 5-year deduction for real property improvements SHOULD be allowed based on the following:
~etitione[ ~!~ ~ ~reate upon opening~} ~ facility with average
In addition, potential to create ~qi~ within a 3 year period
at full capacity.
Petitioner~ ~ in r.eal prop. erty improvements, and plans to
purchase ~i~ ~,~ w manufactunng eqmpment.
This venture is being funded by four partners with a total investment of $4,000,000.
This company will serve the Indiana, Ohio, and Kentucky market place.
Petitioner has Purchase Agreement with Clark Maritime Centre which has been approved
for execution. (Petitioner will not execute contract until Council rules on abatement).
Petitioner will encourage additional growth for the Clark Maritime Cemre.
Approval of tax abatement is a ~ incentive for this company choosing to locate in
Clark Maritime Centre.
Company has a good history of minority hiring practices.
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STATEMENT OF BENEFITS FORM
State Form 27167 (RS / 11-95) SS ' 1
Form SB - 1 is prescribed by the State Board of Tax Commissioners. 1989
INSTRUCTIONS
1. This statement must be subm fted to the body designating the economic reviti/ization area prior to the public hearing if the designating
ma#on from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement~ ~duy', requires refer
it be submitted
to the designating body BEFORE a person installs the new manufactudng equipment, or BEFORE the redevelopment or rehabilitation ~f real property for
which the person wishes to claim a deduction. "Projects" planned or committed to after July 1, 1987 and areas designated after July ~1, 1987 requ/Ye a
STATEMENTOFBENEFITS. (IC6-1.1-12.1) I ill ~ n
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment or rahab' 'tat'o ,
or prior to installation of the new manufacturing equipment, BEFORE a deduction may be approved.
3. To Obtain a deduction, Form 322 ERA, Real Estate Improvements and / or Form 322 ERA / PP, NeW Machine~ must be filed with the county auditor. With
respect to real property, Form 322 ERA must be filed by the later of: (1) May 10; or (2) thirty (30) days after a notice of increase in real prdperty assessment
is received from the township assesso£ Form 322 ERA / PP must be filed between March I and May 15 of the assessment year in wh!ch new manufac-
turing equipment becomes assessable, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between
March I and June 14 of that year.
4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF- 1 annually to show compliance th the Statement
of Benefits. (lC 6-1.1-12.1-5.6)
Name of taxpayer
Address of taxpayer (street and number, city, state and ZIP code)
Name of contact person
Telephone number
Name ~f desi,gnating body Rein ~1~,r
Loc~tib"n'0f'prop~'~b/ ' ~: ;"h , . County Taxing district
Description of r~-ai property improvements and / or new manufacturing ~qu~pm~nt ESTIMATED
(use additional sheets if necessary) ~ , ' ~ ~ ~ ~ Sta~ Date Completion Date
Current number Salaries
" ': JJJi ill
NOTE: Pursuant to lC 6-1.1-t 2.1-5.1 (d) {2) the
.......... *::' ::::~ ~::< ........ i:: Assessed Value >:::::~:: AsSessed Value
COST of the property is confidential.
Plus estimated values of proposed project
I
Less values of any property being replaced
Net estimated values upon completion of project
Estimated solid waste converted (pounds)
Other benefits:
Estimated hazardous waste converted
I hereby certify that the representations in this statement are true.
~ature of authorized representative ~/-3(~./,,,~ ~., ~..Tide //~/'2~ ' Date.,~Z._ / -- ¢ ?signed (month, day, year)
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; []Yes r-lNo
2. Installation of new manufacturing equipment; [] Yes [] No
3. Residentially distressed areas [] Yes [] No
C .The amount of deduction applicable for new manufacturing equipment is limited to $ cost with an assessed
value of $
D .The amount of deduction applicable to redevelopment or rehabilitation is limited to $ cost with an assessed
value of $
E. Other limitations or conditions (specify)
F. The deduction for new manufacturing equipment installed and first claimed eligible for deductior~ after July 1; 1991 is allowed for:
[] 5 years I-I 10 years The deduction period witl be five (5) years unless the designating body has by resolution specified the ten (10) year pedod.
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 iustify the deduction described above,
Telephone number Date signed (month, day, year)
z z-z
Attested by: __ ~r~- Designated body
* If the designating body limits the time p~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 Namely: bee tables below)
Five (5) Year
Percentage
1 st 100% 100%
2nd 95% 95%
3rd 80% 90%
4th 65%
85%
5th 50% 80%
6th 70%
7th 55%
8th 40%
9th 30%
10th 25%
Year of Three (3) Year Six (6) Year Ten (10) Year
Deduction Deduction Deduction Deduction
1 st 100% / 100% / 100%
2nd 66%/ 85% 95%
3rd 33% 66% 80%
4th 50% 65%
5th 34% 5O%
6th 17% 40%
7th 30%
8th 20%
9th 10%
10th 5%