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Home My WebLink About1997-R-12RESOLUTION 97-R- RESOLUTION APPROVING STATEMENT OF BE _NEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, Schimpff's Confectionery, through co-owners Warren and Jill Schimpff (the "Applicant"), has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in mai property taxes to be assessed on proposed improvements to be made on properties located at 347 and 351 Spring Street 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 Tm,( 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, the area in which the proposed redevelopment project is located is in a previously designated registered historic district; and WHEREAS, by Ordinance 96-OR-86, on November 18, 1996, the Common Council of the City of ~effersonville designated the area where the proposed redevelopment project is located in the City of Jeffersonville as an Economic Development Target Area pursuant to Indiana Code 6-1.1- 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 submitteO 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 Jeffersonville, Indiana, that it specifically and affirmatively finds as Ibllows: 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. Resolution No. 97-R-_Z~_ Page 2 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 of benefits 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 filed by the Applicant, and that said Applicant shall be entitled to deductions for a period of 7-~',,~' (/z, ) years for improvements to real property, pursuant to the provision of IC 6-1.1-12.1-3(d) and IC 6-1.1-12. I- 4(d)(3), with the timely filing and perfection thereof with the Clark County Auditor's office. Passed and adopted this third day of March, 1997, by the Common Council of the City of Jeffersonville, Clark County, Indiana. Thomas R. Galtigan, Pfesidi~.~fficer ATTEST: C. RiChard Spencer, JrFlerk a~,frea~urer Presented by me as Clerk and Treasurer to the Mayor of the City of Jeffersonville, Indiana, this day of March, 1997. Approved and signed by me this ~...-"~ C. Ricl~ard Spencer, Jr.~_.~erk and ~r,~s~rer · _ day of March 7. 'Thtomas R. Galligan, Mayor (2/ C:\OFFICE\WPWIN\TAX~SB APPROVAL RES.wpd THE PHILIP W. McCAULEY Executive Director (812) 285-6477 JENNIFER L. MEAD Asst. Redevelopment Director (812) 285-6490 TAX ABATEMENT REVIEW - SCHIMPFF'S CONFECTIONERY 1. All information (petition, SB-1, filing fee) has been submitted by the Petitioner. 2. Conditions of policy are met, as Petitioner plans to expand an existing facility. 3. Project is NOT located in an allocation area. 4. Project is NOT located in an already established Economic Revitalization Area 5. Project is located in an Economic Development Target Area in Downtown Jeffersonville Current Assessed Valuation of 347 Spring Street - $22,770.00 Current Assessed Valuation of 351 Spring Street - $15,470.00 Abatement Estimate: Real Property ($260,000) over ten-year period: Equipn~ent ($25,000) over ten-year period: TOTAL AMOUNT OF ABATEMENT: (Over ten-year period) $ 40,460.00 N/A $ 40,460.00 Value of Abatement Per Job Retained/Created: (Based on 13 Jobs Retained/Created) $ 3,112.00 Taxes Due w/o Abatement: Real Property ($260,000) over ten-year period: Equipment ($25,000) over ten-year period: TOTAL AMOUNT OF TAX DUE W/O ABATEMENT: (Over ten-year period; for improvements only) $ 81,737.00 $ 3.054.00 $ 84,791.00 Total Tax Received With Abatement: (Over ten-year period) $ 44,331.00 Additional Unabated Tax Received From Inventory: (Based on 1996 figures; over a ten-year period) $ 1,574.00 Additional Unabated Tax Received From Real Property: (Based on 1996 figures; over a ten-year period) $ 41,670.00 501 E. Court Avenue · Jeffersonville, Indiana 47130 · Fax (812) 285-6468 Tax Abatement Review - Schimpff's Confectionery Page 2 A 10-year deduction for real property improvements SHOULD be allowed based on the following: Petitioner plans to retain 8 jobs and to create 5 new jobs upon completing renovation of the candy 'museum and the candy-making viewing area. Petitioner plans to make $260,000.00 in real property improvements, and plans to purchase $25,000.00 in new candy manufacturing equipment, without requesting an abatement on said equipment. Petitioner plans to retain/create jobs at which the average wage is $ 9,600.00 ($125,000 divided by 13 jobs). Company has made 105-Year commitment to Jeffersonville, as business has been located at same location on Spring Street since 1890's. Significant improvements from this project toward preservation of Jeffersonville Historic District Economic Development Commission and Common Council previously recognized the need to spur retail development in Downtown Jeffersonville as evidenced by designation of EDTA. Establishes tourist destination in Downtown Jeffersonville, as candy museums (like Hershey Chocolate Museum in Hershey, PA) are quite rare. STATEMENT OFBENEFITS :~, St~ero~T167(R~/{l~IS) :~', *": Page 9r. FORM SB - 1 .iNSTRuC'BON$: ~* .. :; ,'.~.. .~ro.m me appl'.~c~, tn rnamng its osc:s~on about whether to d. es~g.nare an .ecoa. rotc Ftevitali_~_ ~Area. Othen~se this statement must be submiffe ?~_*gnating .l~gqy* B.EFq. R.E a .p~** i. nslal_~ ~e ~ man~.~ring eq~p~ent, or BEFORE'the redevelopme~ or re~ of real property ~i.~TE~E~T oO~BV~7~.~.,o. 1.~lfn. 'Projects planneff.or commit~acl to ~ July 1, 1987 and areas designated after July I, 1987 require m l:~or ~ ~ ot lne new ntanuraclunng equipment, ~p.p~H~ a ae~os~on rnay De ~ . . . ,mape~. m rea~ propen~, Po.r~. 3,~ P. HA must ne ~ l~y me later o~: ( 7 ) MaY ~ U, or (g) Utirty (30) days after a notice of increase in real properiy assessme~ ~u.~v~. ~om.~. ;owns~ asse .s~. . ~. ~ ~,~ ~;A / PP .mu~. ~e. f~ ~.~. n M.an~ ~ ar~ ~y ~ S of ~e osse.~mem year ~n ~ new rnanu~ owners whose Statement of Benefi~ was approved after June ,90, 199f must subn~ Form CF- ! annually to show compliance with U~e ofBenefi~. (IC6. L1-I~.1-~.6) flame of taxpayer AG.:. u~ of taxpayer (sm~et and number, c/ty, ~ and Z/~ code~ W +7/3 o N~uiiu of comact pe~on Sal;u'ies Number ret~ned I ;,.<';ooo e 000 Estimated solid waste converted (pounds) . Estimated hazardous waste converted (pounds) Other benefits: ~"-~-~:|;:; I, ~':t;i './-'¥1 ;1:!I~ ;1:11 I; llf~ I I~l~; · I hereby certify that the representations in this statement are true. Signature of authofizecl representative Title Date signed (month, day, year) 'We have reviewed our ~dor actions relating to the designation of this economic revitalization area and find that the appltcant meets the general standards adol~ted in the .res* ution previously approved by this body. Said resolution, passed under lC 6-1.1.~!2.172.5, pro- vides for the following l~mitations 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 astate improvements; I-lYes r-IN, 2. Installation of new manufacturing equipment; . r'l Yes r-i No 3. Residentially distressed areas F'I Yes r"l 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 ,~lue of, $. E. Other limitatJons or conditions (specify) F. The deduction for new manufacturing equipment [nst~fled and first claimed eligible for deduction after July 1, t 991 is'ail.wed for: [] 5years [] lOyears The deduction peded wifl be five (5) years unless the designatJng bedy has by resotutJon specified the ten (l O) year peded- ~is~e have reviewed the information cor~ained in the statement of benef'~ and tind that the estimates asd expectations are reason- ~b~/,~nd have determined that the totality ~3e~efits is sufficient to justify the deduction described above. Ap 3r~ed: (signature and title.of autlJofized mernber~ ) Telephone number Date signed (',iiu,b~, day, year) J * L 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 of Five (5) Year Ten (10) Year · Deduction Percentage Percentage I st 100% 100% 2nd 950/0 950/0 3rd -'. 80% 90% .... 4th 65% 85°/0 5th 500/0 800/0 6th 70% 7th 9th 10th 55% 40% 30% 25% 1st 2nd 3rd 4th 5th 7th 8th 10th Three (3) Year Six (6) Year Ten (10) Year Deduction Deduction Deduction 100% J 100% J 100% 33% 56% 80% 50% 65% 17% 40% 30% 20% 10% 5%