The URL can be used to link to this page

Home My WebLink About1998-R-14RESOLUTION NO. 98-R-/Z/ A RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, ScanSteel Service Center, Inc. has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in real property and personal property taxes to be assessed on proposed improvements to be made and equipment in the Clark Maritime Center, located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, ScanSteel Service Center, 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 89-R-32 and Confirming Resolution 89-R-39; 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 rehabilitation. 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. ScanSteel P.O, 8ox 2667 1634 Broadway Service Center Clerksville, IN 47129 Inc. Phone: 284-4141 Fax (812) 28:4-4395 1-800-264-5141 Description of real property improvement and/or new manufacturing equipment Two Phase Project Phase I: Cost $2,500,000 Site Work: All the necessary sitework to prepare 11.5 acres of land to accommodate a fmal facility of 195,000 sq. ft. of indOor plant, 225,000 sq. ft. of under-crane outdoor space and 6,000 sq. ft. of office. Office Facility: Build 3,000 sq. fi: of new office space. Indoor Plant Facility: Build 65,000 sq. ft. o£neW indOor plant space. Outdoor Under-Crane Facility: Build a 75,000 sq. ft. crane rail system to handle all shipping and receiving. Emplownent: Create 30 new jobs. Phase II: Cost $2,300,000 Indoor Plant Facility: Build an additional 65,000 sq. ft. of indoor plant space Outdoor Under-Crane Facility: Build an additional 75,000 sq. fi. of outdoor crane rail. Employment: Creute 45 new jobs. THE Executive Director (812) 285-6477 MEMORANDUM TO: FROM: RE: DATE: JEFFERSONVILLE CFfY COUNCILPERSONS PHILIP W. MCCAULEY DEPARTMENT OF REDEVELOPMENT TAX ABATEMENT APPLICATION BY SCAN STEEL MAY I 2, 1998 IN COMPETITION WITH THE LOUISVILLE RIVERPORT, THE CITY OF JEFFERSONVlLLE HAS BEEN CHOSEN AS THE FIRST CHOICE OF SCAN STEEL, INC. SCAN STEEL, PRESENTLY LOCATED IN CLARKSVlLLE, IS A CLOSELY HELD CORPORATION OWNED BY THE SCANLON FAMILY; SCAN STEEL PLANS A MAJOR EXPANSION AND BOTH CLARKSVILLE AND JEFFERSONVlLLE STAND TO BENEFIT. THEIR PROPERTY IN CLARKSVILLE DOES NOT ALLOW FOR THE PLANNED EXPANSION BUT iS SUITABLE PROPERTY FOR RETAIL DEVELOPMENT FOR CLARKSVlLLE. TAX ABATEMENT IS CRITICAL TO SCAN STEEL. THE COMPANY, WHILE SUCCESSFUL, COULD NOT CHOOSE JEFFERSONVlLLE WITHOUT THE ABATEMENT. THE DEPARTMENT OF REDEVELOPMENT IS HELPING SCAN WITH OTHER STATE INCENTIVES CRITICAL TO THEIR FISCAL NEEDS FOR THIS EXPANSION AND RELOCATION. THE PERTINENT INFORMATION IS AS FOLLOWS; . TAXES ABATED TAXES COLLECTED REAL ESTATE (10 YRS.) 328,000 334,000 MACHINERY (5 YRS.) 108,000 75,000 TOTAL TAxes COLLECTED DURING THE 10 YEARS THE ABATEMENT IS IN EFFECT WILL BE $409,000. ADDITIONALLY, EACH YEAR THEREAFTER TAXES WILL BE APPROXIMATELY $76,000. 501 E. Court Avenue · Jeffersonvitle, Indiana 47130 · Fax (812) 285-6468 Page Two A TOTAL OF 75 FULL-TIME JOBS Wlii BE CREATED IN JEFFErSONVILLE INCLUDING 45 IMMEDIATELY AND 30 IN PhaSE I1 iMMEDiATELY AFTER COMPLETION OF PHASE I OF THE CONSTRUCTION. THE TAX ABATEMENT WILL BE APPROXIMATELY $5,800 PEr JOb. ThE AVERAGE COMPENSATION WILL BE APPROXIMATELY $24,000 PER JOB. Our STANDARD FOr gRANTINg abaTeMENTS FOR JObS AvEragINg $24,000 IS $8,000 PER JOB. THIS COMPANY FULFILLS ALL OF CiTY ORDINANCE REQUIREMENTS AND WOULD BE AN OUTSTANDING ADDITION TO OUR CITY. ThE COMPANY'S GROWTH POTENTIAL iS OUTSTANDING AND WiLL CONTRIBUTE TO ThE SYNERGY AT ThE MaRITiME CENTRE AMONG HIGh QuALiTY STEEL COMPANIES. THE DEPARTMENT OF REDEVELOPMENT HIGHLY RECOMMENDS THE GRANTING OF a FIVE YEAR ABATEMENT ON EQUIPMENT AND ~ 0 YEARS ON rEAL ESTATE IMPROVEMENTS. 0000000000 0000000000 0000000000 0000000000 0000000000 0000000000 ~0000000000 X ~ ~0~000000 ~0~000000 0000000000 0000000000 0000000000 0 ~~0000 0000000000 0000000000 ~0000000000 0000000000 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 Jeffersonville, 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 ten (10) 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), and five (5) years for equipment pursuant to I.C. 6-1.1-12.1-4.5, with the timely filing and perfection thereof with the Clark County Auditor's office. Passed and adopted th s day of , 199__~. ThomasR. Ga iga / Presiding Officer A'I-FEST: Presented by m.e_as Clerk and '['.reasurer to the~Mayor of said City of Jeffersonvillethis //~dayof /~_.~ , 199_~. C. Richard Spencer,/,pr. v Clerk and Treasurer Approved and signed by me this / ~' day of ,//~,,~ V , ,1,9,,9_~. 2 ,~ STATEMENT OF BENEFITS NSTR~ONS: ~, ~i~s~tementmust~ubmi~t~t~e~ydesignafingthe~micre~ti/~ati~n~a~r~thepub~ichea~ng~f~edesigna~ng~r~uiresinf~r- ~ lmm the ~l~nt in m~ing its d~sion a~ut Whether to designate an E~nomic RewtilizaEon Area. ~he~se t~is statement m~t ~ submiE~ to the designating ~y BEFORE a person installs t~e new manufa~uring equzpment, or B~ORE tbe.r~evelopment ~ rehabilita~on of real ~ro~ for ~ ~e ~rson ~s~e5 ~o cJaJm a d~uction. A statement of ~nefits /s not r~uir~ if t~ araa was designat~ an E~ pdor to Ju~ 1, ~987 ~d the 'p~j~ was plann~ and ~mmi~ to by r~e ap~fi~nt, a~ ~rov~ by the deS~gnadng ~ p~or to that date. "Proj~' ~ann~ or ~mm~ed to a~er July I, 1987 and areas designated a~er July I, 1987 r~uire a STATEME~ OF BENEF/TS. (lC ~1~ 1-12.1) 2. ~oval of the des/gnaung ~y ~Ci~ Council, Town Board. Coun~ Council, etc.) must be ~in~ pdor to inifiation of the r~evelopment or rehabifitation. or ~or to i~tallation of the new man~a~unng ~u~pment. BEFORE a d~u~on may ~ T To oOtam a d~u~ion. Fo~ 322 ERA. Real Estate Imp~vemems a~ / or Form 322 E~ / P~ New Ma~ine~, must ~ fil~ ~ ~e ~n~ auditor. ~th res~ to real p~pe~ Form 322 ERA must De fil~ Dy ~he la,er of: (1) May I O; or (2) ~i~ (30) days a~er a notice of in.ease in re~ p~ a~essment ~ r~tv~ t~m ~e lo~sn~P a~se~o~:. Form 322 ERA / PP must ~ fil~ ~en Ma~ ~ a~ May 15 of the ~es~ent ye~ m wb~ new m~ac- L Pr~ o~e~ w~osa Slatemenr of Benefit5 was ~prov~ a~er July I, ~991 mu~t suOmit Fo~ CF - ~ ~nually to ~ow ~mpli~ w~h ~e Statement of lA~x~ress of taxpayer (~treet and number, c~ty, stats and ZiP c'~e) P. O. 1634 Br~ S~., Cl~k~il!e N~ o~ ~nta~ ~n Telep~ne nu~r ~ S~I~ ( 812 ) 284~141 Name of designating body City of Jeff. ersonville City Council b3ca~on of property County Clark Res01ubon number Taxing distdcl Jef fersonville Clark Maritime .Center Desc~13'don of real °roperty {mpr°Vem~htS a~O / or new manutactudng equipmem to be acquired (uSe:addiEonal E~mated ster~ng date ~ if nece$.~ary) 0 0 O-- 0 June 1, 1998 Estimated completion date December 1, 1998 Number ~ 75 ' 120 ~st ~ V~ ~ ~ Value Curves - 0 - - 0 - ~s ~mat~ v~ues of pro~s~ pro~e~ 2 ~ 800 ~ 000 2 t 000 ~ 000 ~esofany~o~[ngredl~ - 0 - - 0 - N~ ~ ~ues u~n ~mptetion of P~i~ 2 ~ 800 ~ 000 2 ~ 000 ~ 000 I hereby cer~h%/that the representations in this staterhent are tTUe. S~gnature of au/J]oazed representative IT~tie ~ . Date signed (mon~. day, year) We have reviewed our prior actions relating to the designation of this economic revitaIization area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5, pro- vides for the following limita:tions 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 be/ow). 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; I~Yes FqNo 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 deduction after July 1, 1991 is allowed for:° [] 5 years [] 10 years The deduction period will be five (5) years unless the designating body has by resolution specified the ten (10) year period. 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. ~,pproved: (signatu/'¢/ and title ¢/autl4'~izcd rrcCnber) Telephone number ;Da e signed (month, day, year) Designated body · If the designating body limits~he time p~n"~d 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: (see tables below) Year ot Deduction 1st 2nd Five (5) Year Percentage 100% '95% Percentage 100% 95% Year of Deduction 1s 2nd Three (3) Year Deduction 66% 55% Six (6) Year Deduction _.J 85% 7th 3rd 80% 90% 3rd 33% 66% 4th 65% 85% 4th 50% 5th 50% 80% 5th 34% 6th 70% 6th 17% 7th 8th Ten (10) Year Deduction 100% 95% 8O% 65% 5O% 4O% 30% 4O% 8th 20% 9th 30% 9th 10% 10th 25% 10th 5%