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Home My WebLink About1997-R-13RESOLUTION 97-R-/~ RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, Wayne Steel, Inc. (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 properties located at the Clark Maritime Centre 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, the Common Council of the City of Jeffersonville has previously determined that the area where the proposed redevelopment project is located in the City of Jeffersonville is an Economic Revitalization Area pursuant to Indiana Code 6-1.1-12.1 et seq., Resolution 89-R-32 and Confirming Resolution 89-R-39; 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 Jeffersonville, Indiana, that it specifically and affirmatively 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 rede,, clopment. 3. TSar the estimate of ti~e 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 redeveiopment. THE PHILIP W. McCAULEY Executive Director (812) 285-6477 JENNIFER L. MEAD Asst. Redevelopment Director (812) 285-6490 TAX ABATEMENT REVIEW - WAYNE STEEL, INC. 1. All information (petition, SB-1, filing fee, independent auditor's report) has been submitted by the Petitioner. 2. Conditions of policy are met, as Petitioner plans to build a new facility and install new manufacturing equipment. 3. Project is NOT located in an allocation area. 4. Project is located in an already established Economic Revitalization Area 5. Project is NOT located in an Economic Development Target Area Abatement Estimate: Real Property ($3.6 M) over ten-year period: Equipment ($5.225 M) over ten-year period: TOTAL AMOLrNT OF ABATEMENT: (Over ten-year period) $ 560,216.00 $ 498.649.00 $1,058,864.00 Value of Abatement Per Job Created: (Based on 55 New Jobs Created) $ 19,252.00 Taxes Due w/o Abatement: Real Property ($3.6 M) over ten-year period: Equipment ($5.225 M) over ten-year period: TOTAL AMOUNT OF TAX DUE W/O ABATEMENT (Over ten-year period) $1,131,749.00 $ 638~270.00 $1,770,019.00 Total Tax Received With Abatement: (Over ten-year period) $ 711,155.00 Additional Unabated Tax Received From Inventory: (Per $1 M in reported inventory; over ten-year period) $ 157,368.00 501 E. Court Avenue · Jeffersonville, Indiana 47130 · Fax (812) 285~6468 Tax Abatement Review - Wayne Steel, Inc. Page 2 A 10-year deduction for real property improvements and a 1 O-year deduction for new equipment SHOULD be allowed based on the following: Petitioner plans to create 30 new jobs upon opening the facility, and 55-60 by 1999. Petitioner plans to make $3.6 million in real property improvements, and plans to purchase $5.225 million in new manufacturing equipment. Petitioner plans to create jobs for which the average wage is $29,090 ($1.6 million in salaries divided by 55 jobs created). Company is extremely stable financially, with a net worth of approximately $19 million. Long-term lease with the Indiana Port Commission has been approved for execution. Neighbors in the Clark Maritime Centre (especially Eagle Steel) are excited about the synergy that will result from this company's location there. Approval of tax abatement is a major incentive for this company's choosing to locate in Jeffersonville. Company has a good history of minority hiring practices. Company has begun to secure Industrial Revenue Bond financing to begin construction, and plans to begin hiring in November, 1997. The aesthetic appearance of this facility will be a positive addition to the Clark Maritime Centre. Resolution No. 97-R-ff~._ 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 deducti~)n. 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"b'/l/ (/z~) years for improvements to real property, pursuant to the provision oflC 6-1.1-12.1-3(d) and lC 6-1.1-12.1- 4(d)(3 ), and for a period of 7~-f,4' (/,o.) years for equipment and machinery pursuant to IC 6-1. t- 12.1-4.5, with the timely filing and perfection thereof with the Clark County Auditor's office. third day of March, 1997, by the Common Council of the City of Passed and adopted this i~~Of~~ Jeffersonville, Clark County, Indiana. om~~ R~ Ga ' ~ 11 cer ATTES!: ~ ~,. Richard Spencer J~Clerk arm, q reasurer Presented by me as Clerk and Treasurer to the Mayor of the City of Jeffersonville, Indiana, this ~ day of March, 1997. ~ ~~~~ ~7~ic~ard Spencer, Jr.~erk ~d T~trer Approved and signed by me this __ ~ dayofMar~97. /~ ~/~/~/ [~l~o~as R. Galligan, Mayor C:~,0FFiCE,,WpWIN~TAX~SB APPROVAL RES WS.wpd STATEMENTOF BENEFITS - Fomt $~- 1 is pre~:~lxd Dy the State ~1 of Tax Commissiorm~, 198g IFORM INSTRUCTIONS: · ,h= ,-~,e~nn=~nn h,'.,'tv R~CF~RI; e ~ ~Is ~ new managing ~u~ 3. To ~ a d~, Fo~ 3~ E~. ReM ~e ~ ~ / or Fo~ ~ J~ 14 of ~ ~ 4. P~ o~ w~ SMte~ of ~ was ~ ~ July I, 1991 must Name of taxoayer Wayne Steel, Inc. A~ctress of taxpayer (street ar~ numOer, c;~ sra~e anO ZIP cocle) 1070 West Liberty Street, P. O. Box 999, Wooster, OH 44691-0999 Name°t~nta~em°n (330) 264-8416 Robert L. Stauffer, Vice President - Finance City of Jeffersonville, Indiana 97-R- Loc~ono~lxo~mY. Clark Maritime Centre C~UmYclar~ Jeffersonviller IN 47130 Utica Des~,~ ol teaJ proper(y tml~ovements an(~ l or new manut=r'~,mng equ~ to De a~ (uM ~'~ W # necessa~) 2-15-97 Building (approx. 80,000 sq ft) $3.6 million/equipment to include 2 leveling & slitting lines, overhead cranes, shea?~ and miscellaneous support equipment approx. $5.225 million! 1-1-99 Curremnurr~er Salaries0 N~r~ $~e~ 0 Nu~'e:--.'~---~55 - 60 $~.-~-S;'-'~; million Colt &-*~..~ VIM ~ Alielled VlJue ~e=~,.~,~u~=~-~ i $3.6 million $5. 225 ~illi ~n L~ ~,,e~ ~ a~ ,,o~f ~ ~ $ 3.6 N~,.~[~~:e~pmt~ million $5. 225 milli Dn Dam ~ ~ ,~,,~'~%. day, year; President 2/ ~ /97 We have reViewed our odor acaons relating to the designation of this economic revitalization area and find that the applicant meetS the general standards adopted in the resolution p~revio, usiy approved by this body. Said resolution, passed under lC 6-1.1-12.1-2.5, pro- vidas for the follOWing limitations as authonzea unoer 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 ~is designation eXl~res is B. The type of deduction that is allov~:] in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements: :[~Yes [] No' 2. Installation of new manufacturing equipment: ~ Yes [] No 3. Residentially distmsssd areas ~-T.Yes [] No C. The amount of deduction applicable for new manufacturing equipment installed and first claimed eligible tot deduction after July 1, 1987, is limited to $ cost with an assessed value of $ D. The amount of deduction applicable to redevelopment or rehabilitation in an area designated after September 1, 1988 is limited to $ cost with an assessed value of $ E. Other limitations or conditions (s;ec/fy) F. The deduction for new manufacturing equipment installed and first claimed eligible for deduction alter July 1, 1991is allowed for. [] 5 years :{~ I0 years Also we have rev,ewed tl~e information contained in the statement of benefits anct find that the estimates and expectsaons are reason- al~ and I~ave determinab that the totality of/l~efits is sufficient to !ustify the deduction described above, N3tb~eo: (s;gna~ure anci ~tle ot au~onzed rnem~e~ J Tetel:~one numoer Date s~gne~3 (mon~, ~ay, yea~) --* If the des~:J~ating body limits ~e time period during which an area is an economic revitilization area. it does not limit the isngth of time a taxpayer is entffied to receive a deduction to a number of years designated under lC 6-1.1-12.1-4 or 4.5 Namely: (see taples below) Year of ~ (5) Year T~'t (10) Year Deduction perea~t~ge P~t~entage ' 1St 1 (X~o 100e/o 2m:l 95% 95% 3a:l 80% 90% 4m' ~ 85% 5~ 5~o 8~o 6~ 70% 7~ 55% ~ ~/o ~ 30% 1 ~ 25% Year of i Three (3) Year Six (6) Year Too (10) Year Deduction I Deduction Deduction Deduction 1$t 100% 100% 100% 2ed 66% 85% 95% 3~1 3.3% 66% 80% 4th 50% 65% 5th 34% 50% 6th 17% 40% 7th 30% 10th