HomeMy WebLinkAbout1998-R-15RESOLUTION NO. 98-R-/~
A RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY TAX ABATEMENT
WHEREAS, RPS, 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 Center, located in the City of
Jeffersonville, Clark County, Indiana; and
WHEREAS, RPS, 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 indi¥iduals who will be
employed or whose employment will be retained can be reasonably expected to
result from the proposed described redevelopment or rehabilitation,
STATEMENT OF BENEFITC--
INSTRUCTIONS:
which the person wishes to claim a deduction. "PrO/ec.:' planned or committed to after July I, 1987 and areas designated after July 1, 1987 rec~u~re z
STATEMENT OF BENEFITS. (lC 6- I. I- 12. I)
2. Approval of the designating b~dy (City Council Town Bocrd, County Council, etc.) must De obtained prior to initiation of the redevelopment or rehaDilitation
or prior to installation of the new manufacturing equipme~' BEFORE a deduct on may be approved,
3. To obtain a deduction, Form 322 ERA, Real Estate Impro ments and / or Form 322 ERA / PP. New Machinery, must be filed with the county auditor, Wilt
re t to real pro~erl)~ Form 322 ERA must be filed Dy th, later of: (t) May 10; or (2) thi,~y (30) days after a notice of increase in real proberty assessme~
luring 6qu~pment becomes assessa~e, unless a fihng exL- ~s~on has been oDta/ned, A pprson who obtains a firing extension must file the o
March I and June 14 of that yea~
4. Pro~etly owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF - 1 annually to show compliance with the Statemen
of Benefits. (lC 6- I. 1.12. 1-5.8)
Name of taxpayer
RPS, Inc.
Address ot ~axpayer ($~'e6t ar,d numbea, ~ sta~e an~ ZIP c~de)
1000 I~PS Drive~ Moon Township, PA 15108
Name of contact person TelelYnOne number
Lowell Marquette, Tax Manager (~12)262-6267
Jeffersonville City Council
Coun~ T~i~istdct
Loca~on~pmpe~ Clark Jeffersonville
Clark Maritime Centre
~sc~ndre~gml~yiml:xovementsand/ornewma~a~ufing ~uipm~t ESTIMATED
~lsh~/tn~ S~Date ~letionDate
Me~al warehouse-type buildin8 to be built on land
will be approxi~tely 68,000 square feet tn the RealE~e 5/98 12/98
initial phase. ~ere will also be approx~tely ~g~t ~/A N/A
, *See Attachment
* [ch~ent
Current values -
pt us e~i~,~i~, values of p~.--;~.~ci ixoject ~.~ 800 ~000 $1~200~000 $1~650~000 $550,000
Less values of any proper~y being r_*~a~ acad
Net eai;,,,.i~d values upon co,w~eti(m of project $4m800;000 $1,200,000 $1,650,000 $550,000
Estimated solid waste conver~ed (pounds)
Other benefits:
Estimated haZardous ~aste converted (pounds)
[ authorized representative
hereby certif7 that the repreSentations in this statement are true.
{ Date 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
genera standards adopted in the resolution previously approved by this body. Said resolution, passed under lC 6-t.1-12.1-2.5, pro-
vides for the following limitat one as authorized under lC 6-1.1 -12.1-2.
A. The designated area has been timited 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 F' No
2. installation of new manufacturing equipment; ~Yes FqNo
~Yes F~No
3. Residentially distressed areas cost with an assessed
C. The amount of deduction applicable for new manufacturing equipment is limited to $
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:
r- 5 years [] 10 years The deduction period will be five (5) years unless the designating body has by resolution specified the ten (10) yesr period.
Aisc 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.
..... rea is an economic rev tilization area, it does not limit the length of time
* f the designating body ,ts.thet, , ,pEi_o22 ,5,g, w22 ,h des hated under lC 6-1.1-12.1-4 or 4 5 Namely (see tables below)
a taxpayer is entlt ed to receive a oeoucdu~ ~u ~ ,,u,,,~,~r O z g '
Deduction
I st
2nd
3rd
4th
25% 10th
Attachment to Statement of Benefits -.~ FORM SB-1
Section 2
Although there will not be any new manufacturing equipment, there will be
some newly purchased personal property to be used at this facility.
Approximately $1,650,000 will be spent on material handling equipment to move
the packages through the sortation process. This machinery will be installed
during January, 1999.
Section 3
The employees quantified on this statement of benefits represent the number of
full-time and part-time employees that are projected to be working at the
proposed Jeffersonville facility. The average wage of these new employees at
start-up will be approximately $12.70 per hour.
In addition to the stated number of employees at this facility, there are also
independent contractors that perform the pickup, delivery and long haul
functions necessary to the company. These independent contractors are not in
any way employed by RPS, Inc., but instead contract with RPS to provide pickup
and delivery services with vehicles that are owned by the independent
contractors. These contractors will be comercially domiciled in the area;
therefore, income earned will stay in the region as new income tax revenue.
There will be 47 independent contractors in 1999, earning net wages of
approximately $15.00 per hour after deducting operating expenses. While the
independent contractors are individual business owner,s and the range of
earnings will vary accordingly, it is expected that the independent contractors
Will earn on average, approximately $15.00 per hour after deducting operating
expenses. When these independent contractors are included with RPS' new
employees, the total new jobs created would increase during the first year (1999)
by 126 people with an average wage of approximately $13.75 per hour.
Note: There will be additional employment increases during the 5 years after the
start-up of this facility. When compared to the start-up levels in 1999, it is
projected that there will be approximately 48 new jobs created
representing an additional $1,100,000 in employee wages and net earnings
of independent contractors.
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) with the timely filing
and perfection thereof with the Clark County Auditor's office.
Passed and adopted this ,//,~ day of .///).41./ ,199~.
tTh~omas R. Galligan ~
Presiding Officer
ATTEST:
(~ieF~i~;~rddTSreP;snu~Jr' ~ '
Presented by .me as Clerk and Treasurer to th~, Mayor of said City of
Jeffersonville thiS t/~ day of //]"'/.~4~ ,199_~_~.
/
C. Richard Spenc r. ~" '
Clerk and Treasurer
Approved and signed by me this
dayo .
Tt~omas R. Galligan, r~ayo¢~/
2
THE
Executive Director
(812) 285-6477
MEMORANDUM
TO:
JEFFERSONVILLE CITY COUNClLPERSONS
FROM:
Philip W. MCCAULEY
DEPARTMENT OF REDEVELOPMENT
RE:
Tax ABATEMENT APPLICATION BY RPS, INC.
DATE: MAY I 2, 1998
RPS, INC. haS BEEN CONSIDERINg LOCATINg IN JEfFERSONVlLIE
(AT ThE MARitimE CENTRE) SINCE EARLY 1996. ALL TErms OF LocatiNG
hERE EXCEPT TAX abaTEMENT WERE agrEED TO IN 1996 FOR LOCatINg A
Major HUB hERE. The ProJECt FELL THrOUgh WHEN RPS DECIDED TO
SCALE BACK ThEIr PLAN AND REDUCE ThE SIZE OF THEIr PLANNED
OPERATION. NOW, AFTEr NEARLY TWO years, PLANS TO LOCATE iN
JEFFErSONV1LLE RAVE BEEN FINALIZED PENDING ThE GrANTiNG OF TAX
ABATEMENT ON THEIr rEAL ESTATE iMPrOVEMENTS. ThE PERTINENT
iNFOrMATION iS AS FOLLOWS:
TAXES ABATED
( I 0 Yrs.)
TAXES COLLECTED
( I 0 YRS.)
REAL ESTATE 562,000 573,000
MACHINERY
42)- 258,000
TOTAL
TAXES COLLECTED DURING THE t 0 YEARS ThE ABATEMENT IS IN
EffECT WILL BE $831,000 PlUS TAXES ON INVENTorY NOT iNCLUDED
ABOVE. NINETY-TWO FULL-TIME EQUIVALENT JOBS WILL BE CREATED IN
JEFFERSONVILLE, iNCLUDING 47 CoNTraCT DRIVERS.
THE ABATEMENT WILL BE APPROXIMATELY $6, 100 PEr JOb. THE
AVERAGE COMPENSATION WILL BE APPROXIMATELY $28,500 PER FULL
TIME JOB EQUIVALENT. THIS COMPANY, LIKE OTHERS IN THE INDUSTRY OF
DELIVERING PARCELS, WILL UTILIZE PART-TIME LABOR EXTENSIVELY. OUR
STANDARD FOR GRANTING ABATEMENT FOR JOBS AVERAGING $28,500 is
$9,000 PER JOb.
501 E. Court Avenue · Jeffersonville, Indiana 47130 · Fax (812) 285-6468
Page Two
ThIS COMPANY ALSO FULFILLS ALL OTHER CITY ORDINANCE ~
STANDARDS INCLUDING MINORITY HIRING PRACTICES= ThE DEPARTMENT OF
REDEVELOPMENT rECOMMENDS APPROVAL OF THiS ABATEMENT TO
CULMINATE EFFORTS OF NEARLY TWO YEARS TO brlHG This SUBSTANTIAL
AND hIGhLY SUCCESSFUL COMPANY TO JEFFErSONVILLS.
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