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HomeMy WebLinkAbout1996-R-28 PROPOSES OF PROPERTY TAX ABATEMENT WHEREAS, Dr. Stephen Miller 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 at 1820 E. 10th Street in the city of Jeffersonville, Clark County, Indiana; and WHEREAS, Dr. Stephen Miller 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 th~ 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 W~h~w~AS, 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., with the approval of Resolution 96-R-24 on May 6, 1996, and a Confirming Resolution on 4a ~~ , 1996; and WHEREAS, the Common Council has reviewed the Statement of Benefits submitted herein, and attaches and incorporates that Statement to this Resolution as Exhibit "A". NOW, TT~Y~<EFORE, BE IT RESOLVED City of Jeffersonville, Indiana, affirmatively finds as follows: by the common Council of the that it specifically and 1. That the estimate of the value of the redevelopmen~ is reasonable for projects of the nature described in the Statement of Benefits submitted by the developer.' 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 Dr. Stephen Miller 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 FURTHERRESOLVED, that the Common Council of the City of Jeffersonville hereby approves the~ application for deduction presented by the Statement of Benefits filed by Dr. Stephen Miller and that said developer shall be entitled period of __~ ( ~_ ) years for property, pursuant to the provision of I.C. to deductions for a improvements to real 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 ~-- , 1996, by the Common Council of the City of Jeffersonville, Clark Couhty, Indiana. ~ GAL~G~ ,~~' THOMAS R. PRESIDING OFFICER OF THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE ATTEST: ~ c. RiCeD SPE.C R, CLERK-TREASURER Presen. ted by m.e. as Clef.k-Treasurer to the Mayor of the City of Jeffersonvllle, Indiana, this ~. day of ~-~- , 1996. Approved and signed by me this ~y ~~i996- MA~OI~ THOMAS R. ~G~GAN 'STATEMENT OF BENEFITS , ': FORM SB - 1 INSTRUCTIONS: ~ ~he de~nneth~ beclv BEFOR oerson installs the new manufactonng s~pment, or uuJ.u.= me reseve,~p.,?,~, u, ,?,.,~,.,,.,~,y,: . .-...,.,.~,~ v/nich ~'~ wishes to O~R'Emaa deduc#on. 'Proje~s' planned or committed to after July 1, 1987 and areas cles~gna~es after duly ;, ZU~/ requlr STATEMENT OF BEN~t'.~. (IC6.1.1-12-1) · " 2. Appmvalofthedesi~ngbody (Cily~ou~. 'l, Tov~. Board, c~untyc~u~nd~ e~tc~) roust~be~btain~d` p~f~rto init~ati~n~fthe redeve~pm~nt~rrehab#i~at~ or prJor to iestolla~on of the new mesufactuSng equ~pment, BEFORE a c~eoucoon roay ~ ~v~. . respect to real properS, Form 322 ERA must be ~ by me rater et: .( U .May. T =, or (~:l. .m~r~ (~0)_~.~ ~ ~ ~,~ =,~=e~<r,'~nt .v, mr in ~vh~' '~v manu tuting equipment beoomes asses~le, unless a tiling extens~n has eeen oora~nso. ~ pe~son WhO ommns d ,.,,~ ~,~' ''~' '"~ .,~ ,~-,. March I and June 14 of ~hat yea~. 4. Prcoefly owners whose Statement ~ BenaEt~ was approved after June 30, 1991 must submit Form CF - I annually to show compliance ~ the State~ of Bendf~s. (IC6-1.1-12-1-5.6) leme of to,.q~yer STEPHEN D. MILLER, O.D. Rddress ol ba~ayer (sffest and number, city, a;-~ escl ZIP code) 1713 E. 10TH ST STE E JEFFER*SONVILLE INDIANA 47130 Name of co~t~t person T,,;~hur, e nmw~er STEPHEN P. MILL~R~ O.D. ~12.1 282-6311 , ~esol~on number Name of designating body . Loc~on of property County Taxing ~.~ 1820 E.10TH ST.JEFFERSONVILT,E. TND. CLARK 'EFFERSONVILLE :~:~ptio~ of real prop~_wty impm~,ments and / o~ new manuta~unng eqmpme.~ ,useedd#1onelsheets#nesessa~) furniture,frame displays, StenDate Com~etion£ auto-refractor, retinal camera(all instruments Real~ ,7,n~ lqQ~N'nv 'fcu necessary for an optometric practice. New keg E~u~pmem Estimated solid waste converted Lcoueds) Other benefits: Estimated hazardous waste COnvened (pound) I hereby certify that the representations in this statement are true. "~fle I Date signed (,a~,,, day, year) O.D. · 'ons relatin to the designation of this economic . Weh~erew.ew.~o.urp~or,ac~.: ,....g . . Saidresoution, passed under lC 6 1 1:~,2.1-2.5, pro- ~ a~o in the..==~,lution p.re~o, as!y.. _ap.pm. ved by this body generm . . . . . . . vides for the tot[owing.l~m'~i'~ons as m.,thor~.e~ unaer I~ ~-~ .~ 12.1 2. , 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 impmvemants; I"1 Yes [] No 2. Installation of new rnanofasturing equipment;, r"l Yes [] No 3. Residentially distressed areas [] Yes I-I No · - · cost with an assessed .The amount of deduction applicable for new manufacturing equipment Is hmited to $ value of $ .The amount of deduction applicable to redevelopment or rehabilitation is limited to $ cost with an assessed value of $ - · E o Other limitations or conditions (specify) F. The deduction for new manufacturing equipment inst=~lled and first claimed eligible for deduction after July 1, 1991 is allowed for:. ~ 5 years [] 10 years The deduction period will be five (5) yearn unless ~e designa~ng body has by resolution specil~d the ten (10) year pe~iocL Att~ed ~ " I ('-7 \ / / ~,,,,,~,~ toe/ [ · · nomic revitltiza~on ama, i~doas not llmit the length of time · If the designating body limits the fi .roe.period during w~, i _ch_ .a~_ .?_e_a~s__~.~_~e~.n~ ,,.~. I~- 6-1 1-12.1-4 or 4 5 Namely: (see tables below) a t=.~_~_ 7er is e~i~__~ to receive a ~__m~_.~tinn to a numoar o~ yem~ u~.,~, ~-,~- -- · · Year of Five (5) Year Ten (10) Year _l~lm~flf~n Pementage Percefltage 1st 100% 100% 2nd 95% 95% 3~d -, 80% 90% 4th 65% 85% 5th 50% 80% 6th 70% 7th 55% 8th 4O% 9th 30% 10th 25% 10th ~J~iuotion 100% 95% 80% 95% 50% 40o/0 30% 200/o 10% 5% LEGAL NOTICE Notice is hereby g~ven that on the 6th day of May, 1996, the Co~u~on Council of the City of Jeff~rsonville, adopted Resolution NO. 96-R-24 declaring a certain area of the City of Jeffersonville as an Economic Revitalization Area. said area is locate~ on ~ighway 62 and has a street address of 1820 E. 10th Street, Jefferson¥ille, Indiana. A site survey of the affected area is available and can be inspected during normal business hours at the county assessor's office. Notice is hereby given that on the 3rd day of June, 1996, at ?:30 p.m., in the Multi-Purpose Hearing Room on the Third FloOr of the City-Council Building, Room 308, at 501 East. Court Avenue, Jeffersonville, Indiana; the Common Council of th~ City of JefferBonuille, Indiana, intend t~ conduct a public hearing on request p~ese~ed by Dr~ Steph~n M~ller for the purl~ose of creating a~ economic revitaliza~o~ area and granting property tax abatement for said a~ea described above. At that time th~ Co~ncil will be available to receive and hear all remonstrances and Objections f~om interested persons. This jeffersonville Common Council meeting may be continued from time to time am found necessary. The Jeffersonvllle common Council shall take final action at the conclusion of thig meeting to determine whether the qualifications for an 'evitalizatio~ area have been met and conflrmi~g, modi~yiBg an~ ~o~firmlng or re~oindlng the resolution. 'Such notice given and posted this 23rd day of May, 1996. : C. ~iChard Spence~,~2 Jeffersonville Clerk-Treasurer ASSIST~CE .A r;DI TI ONAL I3N~.'ORMA TI ON DR _ STEPHK'-N MILL ~--~ . 0_ D _ 1820 E . 10TH S TR RET JEFFR;q~SONVILLE . Ii~3_~IA_NA 47130 · _;ONE 3. 1996 INTRODUCTION The Indiana Legislature, in an attempt to assist municipalities in the continued growth of their communities, granted such communities the discretionary ability to confer tax abatements upon certain parcels of property. These abatements are intended to be utilized in areas that have traditionally lagged in their economic development as a means of incentive for private investors to develop such areas that may pose an increased financial risk. Indiana lawmakers have coined the phrase "Economic Revitalization Area" to refer to these tracts of property. Statutory law, pursuant to IC 6-1.1-12.1-1, defines Economic Revitalization Area as an area "which is within the corporate limits of a city, town, or county which has become undesirable for, or impossible of, normal development and occupancy because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age obsolescence, substandard building, or other factors which have impaired values or prevent a normal development of property or use of property." The following analysis delineates sound reasoning to support a finding that the property owned by Dr. Stephen Miller, commonly referred to as 1820 East 10th Street, Jeffersonville, should be designated by this Council as an Economic Revitalization Area, such that tax abatement can be achieved to promote vibrant business growth in an area that has historically been economically stagnant. ISSUE: Does the Land in Question Meet the Requisite Criteria of an Economic Revitalization Area as set forth by Indiana Statute? The determination of whether this particular tract of land is "undesirable for development" as the statute requires, on its face may seem highly subjective in nature. As such, it may be easy to dismiss the thought of granting such status based on what may seem compelling factors. Factors such as: (1) Frontage access to a major thoroughfare in Highway 62; and (2) Geographical proximity to populated neighborhoods, i.e. Northaven, Gardenside Terrace, and Rolling Fields. However, it is these exact same factors, when viewed from a larger more objective perspectivel which urge this Council to move forward and assist in the development of business growth. Although several new businesses have recently opened along Highway 62 between Springdale Drive and Allison Lane, giving the impression that business growth is in an abundance, it is important to note all the property that lies along Hwy. 62 which has remained undeveloped and on the market for years. In a recent survey of that particular stretch of Hwy. 62, performed during the week of May 20 - 24, 1996, a total of Ten (10) frontage lots were found to be listed for sale or lease. Subjectively, perhaps not too staggering of a figure. However, a deeper investigation into these tracts revealed that a substantial portion of these lots had been on the market between 10 and 18 years without any success of development. The following display will provide the Council with information and a photographic view of the vacant lots. As will be noted, these lots are similarly situated to the lot of Dr. Miller in regards to their location and ease of accessibility. Physical Description Approximate Size : Initial Sale Price : Initial Lease Price : Zoning Designation : Time on Market : Lot with Office and Warehouse Facilities Between Avondale Ct. & Rhonda Dr. South Side Hwy. 62. 1.08 Acres $235,000.00 12% of Base Purchase Price Annually B-3 18 Years. 3 Physical Description Approximate Size Initial Sale Price Initial Lease Price Zoning Designation Time on Market Frontage Lot Opposite Slone Pontiac South Side Hwy. 62. 8 Acres $100,000.00 Per Acre 12% of Base Purchase Price Annually B-2 18 Years. Physical Description Approximate Size Initial Sale Price Initial Lease Price Zoning Designation Time on Market Frontage Lot Adjacent to Vacant Gator's Re s t aurant North Side Hwy. 62. 2 Acres $25O,000.00 N/A B-3 15 Years. Physical Description Approximate Size Initial Sale Price Initial Lease Price ZoninH DesiHnation Time on Market FrontaHe Lot Adjacent to Arby' s Restaurant North Side Hwy. 62. 3.2 Acres $300,000.00 To be Negotiated. B-3 10 15 Years. Physical Description Approximate Size Initial Sale Price Initial Lease Price Zoning Designation Time on Market Vacant Sizzler Building, South Side Hwy. 62. 1.03 Acres $550,000.00 $5,000.00 / Month Base B-3 Less than 1 Year. Jeff Plaza Physical Description Approximate Size Initial Sale Price Initial Lease Price ZoninH DesiHnation Time on Market FrontaHe Lot Opposite Northside Church of Christ North Side Hwy. 62. 0.992 Acres $150,000.00 To be NeHotiated B-3 Unknown Physical Description Approximate Size Initial Sale Price Initial Lease Price Zoning Designation Time on Market Frontage Lot with Vacant Car Wash East of Greater Clark Admin. Bldg. South Side Hwy. 62. 1 Acre N/A $3250.00 / Mo. Unknown Less than 4 Years. Physical Description Approximate Size Initial Sale Price Initial Lease Price ZoninH DesiHnation Time on Market FrontaHe Lot with Express Lane Restaurant South Side Hwy. 62. 0.5 Acre N/A $4,000.00 Includes BuildinH Unknown 2 Years. Physical Description Approximate Size Initial Sale Price Initial Lease Price Zoning Designation Time on Market Frontage Lot Opposite Greater Clark Admin. Bldg. North Side of Hwy. 62. 2.4 Acres To be Negotiated. Potential for Negotiation. B-3 Unknown. Physical Description Approximate Size Initial Sale Price Initial Lease Price · Zoning Designation Time on Market Frontage Lot Opposite Thornton's Gas Corner of Allison Lane & Hwy. 62. North Side Hwy. 62. 1 Acre Frontage; Total of 33 Acres $500,000.00+ Range (Frontage Only) To be Negotiated B-2 10 Years. 1_22 Referring back to the two previous factors, frontage access to Hwy. 62 and geographical proximity to populated areas, it would seem logical that all of the above lots would be in cormuercial demand. However, as noted by several of the lots being listed for more than a decade it remains unknown why the market itself has not driven these plots of land into the hands of private investors and developers. That unknown factor, which has prevented more growth in this prime area, ~s the exact type of factor that the Indiana Legislature addressed in giving municipalities more leverage in the development stage. Because of the unique shape and limited frontage access of Dr. Miller's property it is especially critical that this leverage be exercised in the development of this particular piece of land. The property proposed to be developed by Dr. Miller, although it possesses frontage access~ to Hwy. 62, does not have the appeal that other similar lots maya.have. One of the central characteristics that make vacant lots alon9 Hwy. 62 attractive to commercial developers is the high visibility it provides businesses to potential customers and clients. Frontage visibility that serves as an advertising feature to those commuters who travel both East and West along Hwy. 62. The particular spot owned by Dr. Miller is not as attractive for development purposes as other lots that provide frontage. The lot at 1820 E. 10th Street.only bears minimal frontage visibility in the amount of Seventy- One Feet (71'), and area in the amount of 0.493 Acre, thus allowing only very limited use of the property. (See Attached Land Survey). It is because of the two previously mentioned factors, frontage access and geographical proximity, that it is so important for the Council to grant Economic Revitalization Area status to property such as Dr. Miller's. It is the small business, like that of Dr. Miller's, which provides customer satisfaction, quality service and a reliable product to its patrons. Things which in a community such as Jeffersonville the citizens grow to appreciate and rely'upon. It is well known by this Council that running a small business is no easy task and often the odds against success are highly stacked. However, if given the financial assistance, which this Council has the power to do, a small business can not only succeed but also thrive off of its local patron loyalty. The Jeffersonville constituents in that particular area of Hwy. 62 deserve the opportunity to have small commercial establishments at their doorstep which provide essential functions. A prideful community such as Jeffersonville should hot have to drive across the river or fight through excessive mall?,traffic to retrieve the services they require. They should at least be permitted the opportunity to patronize locally based commercial entities. However, for many citizens of this ~ity that opportunity does not exist. Assisting in the development of businesses such as Dr. Miller's will not only provide the Council's constituents with more convenient access to those types of businesses but will also provide other benefits. In specific regard to Dr. Miller's Optometry Office the following benefits will be conferred upon our community: Immediate Job Opportunities - Dr. Miller's Office will employ up to three positions. Additional Job Opportunities - Dr. Miller's proposed building will have additional lease space available for other small businesses. Potential tenants for this available space have represented that they anticipate to locate and provide between five to ten additional jobs. Capital Improvements upon Land - Built will be a 4,800 sq. ft. medical office complex, 2.600 sq. ft. to be occupied by owner and 2,200 sq. ft. to be leased. Location The new site will be positioned next to the Visiting Nurses Association and Physicians Primary Care Services which will set a medical/healthcare precedent in this area of the city. Carryover Effect on Other Businesses 63% of Dr. Miller's practice resides outside of Jeffersonville in communities such as Charlestown, Henryville and Sellersburg and often patronize other local businesses before or after appointments thus stimulating other commercial businesses. Residual Effect - Other local businesses will be utilized by Dr. Miller's Office for their services, i.e. Hiring of local contractors for construction, landscaping services, cleaning services, etc. The creation of jobs and bringing more revenue into the community are not matters that any governmental entity takes for granted. This Council is no different. The office of Dr. Miller as just noted will serve to provide both of these needs. The quality of being a professional medical office owned and operated by an established doctor in his field will also lend longevity in the providing of jobs and revenue. Unlike many restaurants in this area that have opened and closed their doors within a few short years, Dr. Miller's practice in this location has the potential to provide security for its employees for numerous years to come. It is in the best interest of the City of Jeffersonville to provide its constituents with the very finest of services. To accomplish this however the city must rely heavily on the presence of small business tO provide those services. In doing so it is necessary to lure those businesses to Jeffersonville and to see that they have the greatest opportunity for growth and success. Now is such an example where the Council is being called upon to assist in the revitalizatiOn of one of Jeffersonville's most promising future commercial land - that stretch of frontage that lies along Hwy. 62. Although prime real estate, it goes without saying that the presence of so many undeveloped pieces of property along that area indicates that an incentive is needed for revitalization. It is not that the property is "impossible of development" as the statute points out, but rather there seems to be an unknown quality which renders this land often times "undesirable for development." Perhaps it is the excessive rates that have been driven up for the cost of frontage property. Because of suc~'a steep financial hardship to purchase such property it is,inheren~.that some financial assistance will be direly needed to begin revitalization of this area. That assistance is at the discretion of this Council today. By granting such status now the council is paving the way for this project to be up and running within a very short time. With the assistance of tax abatement Dr. Miller could be in full operation within the near future. However, if this council is to deny such status and a tax abatement cannot be attained it may be many years before such a project could be economically feasible. Through those years the property wili'sit vacant while the City of Jeffersonville loses out on potential job,s that could have been created and potential revenue that neve~ ~aterialized. 16 By agreeing to declare Dr. Miller's property an "Economic Revitalization Area" this Council is taking a positive step in the direction of rebuilding Jeffersonville. Granted it is only a small step in the grand scheme of things, but nevertheless it is a positive step and a forward step. Therefore, it is humbly requested of this Council that a vote in favor of granting such status be conferred upon Dr. Miller's property, thus paving the way for another successful small business to take root in its new home - The City of Jeffersonville. Respectfully Submitted, Dr. Stephen Miller, O.D. ~L~GENO~ ~ OENO~ITE$ IRON PIPE FOUND. ORIGIN UNKNOH~ -~ ~NO~S ~/8'x~30" S~L PIN AND CAP set 0 STATE HIGHWAY (~) ,~ille exominoUon may reveo~ other easements and/or I~i9~t~ '6r'~o~ nor shown BL~N~'ENBEI(ER ~ ~.4T~.. 23 MAY tg95 PAGE ! OF £ JOB No. 1 ~.5