HomeMy WebLinkAbout1998-R-32RESOLUTION
RESOLUT'~ON APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY' TAX ABATEMENT
WHEREAS, North Shore Development LLC, (the "Applicant") 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 on property located in the area commonly known as the Piggyback Yard in the City
of Jeffersonville, Clark County, Indiana; and
WHEREAS, the Applicant has submitted an application which includes the Statement of Benefits
on the form prescribed by the Indiana State Board of Tax Commissioners for such purpose, which application
and statement include 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, attached hereto as "Exhibit A" and
WHEREAS, by Ordinance No. 90-OR-56, on November 7, 1990, the Common Council of the
City of Jeffersonville designated the area where the proposed redevelopment project is located in the City of
Jeffersonvi]le as an Economic Development Target Area pursuant to Indiana Code 6-I.1-12.1 et seq.,
specifically IC 6-1.1 - 12.1-7; and
WHEREAS, the City's Department of Redevelopment has reviewed the application and Statement
of Benefits submitted by the Applicant and has advised the Common Council that the application has been
submitted in compliance with the approved Tax Abatement Policy of the Common Council of the City of
Jeffersonville.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Jeffersonvikle, Indiana, that it specifically and ~affirmafively finds as follows:
1. That the estimate of the value of the redevelopment is reasonable for projects of the nature
described in the Statement of Benefits submitted by the Applicant.
2. 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.
3. 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.
4. 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.
5. That the totality ofb~nefits for said redevelopment is sufficient to justify the deduction.
BE IT FURTHER RESOLVED, that the Common Council of the City of Jeffersonville hereby
approves the application and Statement of Benefits as presented and fried by the Applicant, and that said
Applicant shall be entided to deductions for a per/od of ten (10) years for improvements to real property,
pursuant to the provision of IC 6-1.1-12.1-3(d) and IC 6-I.i-12.14(d)(3), with the timely filing and
perfection thereof with the Clark County Auditor's office.
This Ordinance shall be in full force and effect from and after it.s passage and approval.
Passed this /.~day of
Presiding Officer
ATTEST:
C. Ricl~ard Spencer, Jr.~ '
Clerk and Treasurer
of
Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville this
~--~- ,1991.
C. Pal-chard Spencer, Jr. ~ ~ /
Clerk and Treasurer
and signed by me this _,ff_~day of.,,/ ,~,a?~. , 199._~.
This Ordinance approved
North Shore Development, LLC
Attachment to Form SB-1
Section 3
MNC anticipates the relocation of approximately 20 employees (I 1 full-time, 9 part-
time) from New Albany to Jeffersonville as a result of the office consolidation, at
salaries totaling approximately $668,000. It is also anticipated that within one year
of project completion, 10 jobs will have been added at an average annual salary of
$30,000.
As the identity of the other tenants is yet to be determined, it is difficult to project
with certainty the number of new jobs and salaries. However, we have made an
attempt based on the information we have available. Our estimate, s are based on an
assumption of one person per 330 gross square feet, and average salaries of $80,000
per executive, $40,000 per professional and $20,000 per administrative employee.
Type _~ Salaries
Site 1 (est. 27,000 s.£ not incl. MNC)
Executive (10%) 8
Professional (60%) 49
Administrative (30%) 25
Total 82
$ 640,000
1,960,000
500,000
$3,100,000
Site 2 (est. 37,000 s.£)
Executive (10%) 11 $ 880,000
Professional (60%) 67 2,680,000
Administrative (30%) 34 680,000
Total 112 $4,240;000
NOVEMBER 16, 1998
TAX ABATEMENT REVIEW,
1. All information (.petition, SB-i, 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 over TEN- year period:
(Over ten-year period)
Value of Abatement Per Job Created:
(Based on 224 New Jobs Created-18 retained)
Tax Received After Abatement: Real Property
(Collect over ten-year period)
Unabated Tax Received : Personal Property
(Collect over ten-year period)
Tax Abatement Review
(continued)
A 1 O-year deduction for real property improvements SHOULD be allowed based on the
following:
etitioner plans to create n opening Site 1
Professional office buil
· Petitioner plans
etitioner plans
& Site 2
The fn'm is financially stable, and has a long-standing history in the Southern Indiana
along with Louisville metropolitan area, and has shown commitment to community.
Petitioner has executed a contract of sale to purchase a portion of lots 2 and 3 of the
Piggyback yard.
Petitioner will encourage additional growth for the Piggyback yard.
Approval of tax abatement is a incentive for this company choosing to locate in
Piggyback yard.
Company has a good history of minority hiring practices.
S~ate Form 27167 (R5 /
Form SD-1 is prescribed by the State Board of Tax Commissioners. 1989
FORM
SB - 1
INSTRUCTIONS:
1. This statement must be submitted to the body designating the economic revitifizetion area prior to the public hearing if the designating body requires infor-
mation from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted
to the designating body BEFORE a person insta? the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of 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 require a
STATEMENT OFBENEFITS. (lC 6-1.1-12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment or rehabilitation,
or pdor 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 mEst be filed by the later of: (1) May 10; or (2) thirty (30) days after a notice of increase in real property 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 which 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 1 and June 14 of that yea~
4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF- 1 annually to show compliance with the Statement
of Benefits. (lC 6-1. I - 12.1-5.6)
Name of taxpayer
North Shore Development, LLC
Address of taxpayer ¢treet and numbe~ city, s~ and ZIP c~e)
2585 Charlestown Road, New Albany~ IN
Name of contact person
Ronald F. Barnes
47150
~lephone number
812 948-1121
Name of designating body irresolution number
City of' Jeffersonvil].~ City Council'
.... ~ .... ITaxing district
Location of'property ,~"":' J~Pigg~' B~k property), ."
Market Street & Sduthern Indiana Avenue Cla~rk '~, ~effersonville
Description of real property improvements and / or new manufacturing equipment ESTIMATED
bee additional sheets if necessary) , Start Date Completion Date
Construction of 2 mid-rise professional office Real Estate Dec. 1998 Dec. 2000
buildingS (anticipate 5 stories plus basement)
New Mfg Equipment
Current values 0
Plus estimated values of proposed project 8 , 500,000
Less values of any property being replaced n/a
Net estimated vaiues upon completion of project 8 ~ 500,000
Estimated solid waste converted (pounds)
Other benefits: n/a
Estimated hazardous waste conver~ed (pounds)
I hereby certify that the representations in this st&tement are true.
Title Date signed (month, day, year)
Member 10-19-98
We have reviewed our pror 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 iimited 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:
I. Redevelopment or rehabilitation of real estate improvements; I-1 Yes I~No
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)
R 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 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 justify the deduction described above.
opro~d: (signature and ~b of authorized member) Telephone number Date signed (month, day, year)
[tested b~ ~-- ,/ '~ .4~ Designated body /
* If the designating body limit's the time period during which an area is an econ~rni~ revitilizat~n ~rea; it' d~8~ not limit the length of time
a taxpayer is entitled to receive a deduction to a number of years designated under lC 6-1.~i-12.1-4 or 4.5 Namely: (see tables below)
Year of Five (5) Year Ten (10) Year
Deduction Percentage Percentage
1 st 100% 100%
2nd 95% 95%
3rd 80% 90%
4th
5th
65% 85%
5O%
6th
7th
8th
9th
10th
8O%
Year of Three (3) Year Six (6) Year Ten (10) Year
Deduction Deduction Deduction Deduction
1 st 100% 100% 100%
2nd
3rd
4th
5th
70% 6th
55% 7th
40% 8th
30%
25%
9th
10th
66%
33%
85%
66%
50%
34%
17%
95%
80%
65%
5O%
40%
30%
2O%
10%
5%