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Home My WebLink About2007-R-24 RESOLUTION NO. 2007-R- P.. '-/ RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF REAL PROPERTY TAX ABATEMENT WHEREAS, Becker Acroma, has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in real property taxes to be assessed on a proposed new facility to be located in the Bridgeport Business Center located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, Becker Acroma, 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 aresult 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 6-1.1-12.1-5, et seq., and Resolution 97-R-I0, and confirming Resolution 97-R-14; WHEREAS, the Common Council has reviewed the Statement of Benefits and its attachment "A" submitted herein, and attaches and incorporates the Statement of Benefits submitted herein, and attaches and incorporates the attachment "A" to this Resolution. 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 redevelopment, $2,625,000 in real improvements, is reasonable for projects ofthe nature described in the Statement of Benefits submitted by the company. 2. That the estimate of the number of 38 individuals who will be additionally employed can reasonably be expected to result from the proposed described redevelopment or rehabilitation. 3. That the estimate of the annual s,alaries of$I,387,000 of those individuals who will be added can be reasonably expected to result from the proposed described redevelopment or rehabilitation. 4. That all other information requested from Becker Acroma, 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. 6. That Becker Acroma has agreed to the payment of a 10% fee to the Jeffersonville City Council annually as described in IC 6-1.1-12.1-14. BE IT FURTHER RESOLVED, that the Common Council of the City of Jeffersonville, Indiana, hereby approves the application for deduction presented by the Statement of Benefits filed by Becker Acroma, and that said company shall be entitled to deductions for,a period often (10) years on real property pursuant to the provisions ofIC 6-1.1-12.4 for real property, with the timely filing and perfection thereof with the Clark County Auditor's office fVv Passed and adopted thisJv day of t'U.u::r' 2007, by the Common Council of ~ the City of Jeffersonville, Clark Con~na. /(~ President, Common Co I ATTEST: '~1~ Peggy Wilder, Clerk-Treasurer Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville, ') u1.J.-- (] L Indiana, this~!t.... day of jl~..t:C ,2007 QirJ ~ Peggy Wilder, Clerk-Treasurer This ,2007 Tax Abate.ment Advisory Review Department of Redevelopment Firm: Date: Becker Acroma Corporation August 6,2007 1. All information as required in 37.01(B)(1)-(12) has not been submitted. (5) Requires the amount of real and personal property taxes paid during previous three years. This is a new construction, and no taxes have been paid on this property. (9) Requires certification no building permit has been issued. No statement has been provided. Through conversations with John Walling, the Project Manager from Koetter Construction/Real Estate, he assures me Becker Acroma is weU:aware the abatement must precede any construction and/or installation. 2. The information in the petition indicates all requirements have been met with the two above exceptions. I would not consider them to be material. 3. The project area is in a TIF. 4. The project area is in an Economic Revitalization Area. 5. The project is not in an Economic Development Target Area. 6. The Department of Redevelopment supports the approval of Becker Acroma's petition based on tfre following criteria: 6(b)-(c). The number of jobs and the annual salaries can be reasonably expected to result. The amount of abatement per job would be $6,864.04 or an average of $686.80 per job per year. , .~. The total amount abated on Real Estate over ten years would be $203,784.04. The total amount abated on Personal Property over five years would be $57,201.61. The average hourly rate (per worker) would be $17.80 or $36,500 annum. The $1,387,000 payroll would produce $138,700 in CAGIT, and $34,675.00 in EDIT. The Real Estate taxes paid over ten years would be $207,900.89, and Personal Property taxes paid would be $35,399.36. The Council's established guidelines indicate the maximum total abatement for $30,000 per year jobs is $10,000 per job. This abatement proposal is for $6,868.04 per job, and meets the Council's criteria. The fee paid to the Jeffersonville City Council will be 10% of the total taxes abated, and will amount to approximately $2,609.86 per year. This fee is based on a fee schedule tied to total investment, and approved by the City Council Abatement Committee in 2006. The Department of Redevelopment recommends a ten year abatement on rea I estate. Incentive to Business Per 38 jobs 10 year Real is $203,784.04 $160,557.12 $5,362.74 $4,225.19 5 year Real is The Department of Redevelopment recommends a five year abatement on personal property. I ncentive to Business Per 38 jobs 5 year PP is $57,201.61 $47,277.29 $1,505.31 $1,244.14 3 year PP is City of Jeffersonville Tax Abatement WorksheE~t Firm: Becker Acroma TEN YEAR REAL PROPERTY Cost A V @ 80% Gross Rate PTRC Net Rate 0.019604044 Year's Tax $ 41,168.49 FIVE YEAR PERSONAL PROPERTY Pool Life Cost PP PTRC NET RATE Wages Per Job WIO OT Average Hourly Rate $36,500.00 $17.80 Current Y r TTV % from Form Assessed Value Taxes Paid Taxes Abated 103 Schedule A or TTV Year 1 $ $ 41,168.49 40 $636,898.00 Year 2 $ 2,058.42 $ 39,110.07 60 $955,347.00 Year 3 $ 8,233.70 $ 32,934.79 55 $875,734.75 Year 4 $ 14,408.97 $ 26,759.52 45 $716,510.25 Year 5 $ 20,584.25 $ 20,584.25 37 $589,130.65 Year 6 $ 24,701.10 $ 16,467.40 Year 7 $ 28,817.94 $ 12,350.55 Year 8 $ 32,934.79 $ 8,233.70 Year 9 $ 37,051.64 $ 4,116.85 Year 10 $ 39,110.07 $ 2,058.42 $ 207,900.89 $ 203,784.04 Fee Table % Paid to Total Investment Base City Council $ 15% $ 500,001.00 12% $ 1,000,001.00 10% $ 10,000,001.00 7.5% $ 50,000,001.00 5% Total Taxes Abated Abatement Per Job Total Investment, $ 260,985.65 $ 6,868.04 $ 4,217,245.00 Fee % 10% Total Fee Paid to Council Taxes Paid $0.00 $4,688.66 $8,595.87 $10,549.48 $11,565.35 $35,399.36 Fee per year $ 2,609.86 Real Property Personal Property CAGIT $ 207,900.89 $ 94,007.57 $ EDIT Ten Years Yearly Thereafter 138,700.00 $ 34,675.00 $ 475,283.46 $ 70,227.63 Taxes Abated $15,628.86 $18,754.63 $12,893.81 $7,032.99 $2,891.34 $57,201.61 ATTACHMENT "A" ATTACHMENT TO THE STATEMENT OF BENEFITS FOR Becker Acroma August 6, 2007 The council will grant 10-year abatement on an amount not to exceed $2,625,000 in real property as allowed by state statute. This applies to qualifying new construction after the abatement is granted and is, subject to the dollar limit above. This abatement will only apply to real property constructed in the first 36 months following the granting of abatement. The company will provide at least 38 jobs with at least $1,387,000 in salaries as specified in the Statement of Benefits and any attachment thereto. The "salaries" on the SB-l is agreed to mean base hourly wages, without overtime or benefits, times 2050 hours per year for the number .of employees as indicated in Section 3 of the SB-. 1. It is the expectation of the Counqil that the company will reach the number of employees and average wages specified within three years of the date of the granting of the abatement. The company, Becker Acroma, understands that this abatement is being offered based upon those jobs and wages promised by the company. Ifthe company fails to reach those numbers or fails to maintain those numbers over the life of the abatements, the company agrees and understands that the Council will, unless prohibited by Indiana law, rescind these abatements and require the company to pay back, at a pro-rata rate the real and personal property taxes that have been abated. The company agrees to make available any and all information the council deems necessary to verify compliance. The company agrees to pay an annual fee of 10% ofthe amount of real property taxes abated during each year of the abatement as described in Indiana Code 6-1.1-12.1-14. Becker Acroma