HomeMy WebLinkAbout1996-OR-84ORDINANCE NO. 96-OR- 2¢
AN ORDINANCE ADOPTING A TAX ABATEMENT POLICY
Whereas, the Common Council of the City of Jeffersonville, Indiana ("the
Council") receives frequent requests for tax abatement as allowed under the provisions
of Indiana Code 6-1.1-12.1 et seq.; and
Whereas, the Council wishes to encourage economic development and the
creation of living-wage jobs for all citizens in the City of Jeffersonville; and
Whereas, the legislature has given the Council the tools to evaluate the
performance of entities to which tax abatement has been granted, and the power to
revoke tax abatement under certain circumstances; and
Whereas, the Council needs help in compiling the information necessary to
properly carry out its function with reference to the ongoing evaluation of entities
granted tax abatement; and
Whereas, the Council believes that the Department of Redevelopment is the
proper agency to administer the City's tax abatements;
Now therefore, be it hereby ordained that the Tax Abatement Policy of the
Common Council of the City of Jeffersonville, attached hereto as Exhibit A and
incorporated herein by reference, is adopted, effective immediately.
This Ordinance shall be in full force and effect from and after its passage and
approval.
Passed this / ~ day of //~ J/', ,199_~.
R. GalliCan
Presiding Officer
ATTEST:
Clerk and Treasurer
Presented by ,me as Clerk a?~Treasurer to th~; Mayor of said City of
Jeffersonvillethis /~' dayof ,,~/~J/. ,199_~_.
C. Richard Spencer,/¢~. ~ /
Clerk and Treasurer
199~.This Ordinance approved and signed by me this / ~ day of ~¢/
2
"EXHIBIT A"
TAX ABATEMENT POLICY
OF THE COMMON COUNCIL
OF THE CITY OF JEFFERSONVILLE
Information Required of Applicants Seeking Tax Abatement.
Prior to: 1) Beginning construction of a new facility; 2) Beginning construction of
an expansion of an existing facility; or 3) Purchasing and installing new manufacturing
equipment, businesses located within the City may petition the Common Council on
forms provided by the Department of Redevelopment for real or personal property tax
abatement consideration. All information and attachments required by the application
must be completed and filed with the Department of Redevelopment together with a
filing fee of Two Hundred Fifty Dollars ($250.00) to cover processing and administrative
costs.
Businesses petitioning for tax abatement shall provide the following information
on the petition to enable the Council to consider their request:
(1) The name(s) and address(es) of the real property owner(s) and personal
property owner(s), and any other person(s) leasing, intending to lease, or having an
option to purchase such property, and a brief description of the business.
(2) The legal description and address of the real or personal property for which
property tax abatement is being petitioned.
(3) A map and/or plat depicting the area where tax abatement is being requested.
(4) The current assessed valuation of the real property improvement before
rehabilitation, redevelopment, economic revitalization, or improvement; or the current
assessed valuation of the tangible personal property to be replaced by new
manufacturing equipment.
(5) The real and personal property taxes paid at the location during the previous
three (3) years, whether paid by the current owner or a previous owner.
(6) The current number of total employees designating full and part-time and the
current number of female and minority employees (full and part-time).
(7) An estimate of the cost of the real property improvements and/or new
manufacturing equipment for which abatement is being requested.
(8) An estimate of the number of new permanent jobs to be created by the
project within one (I) year of completion, a statement of the current number of
permanent and part-time jobs at the location and the impact on those current jobs
anticipated to result from the project, and the projected annual salary for each new
permanent position to be created.
(9) Certification that no building permit has been issued for construction on the
property for the improvement proposed and certification that the new manufacturing
equipment has not been installed.
(10) The name, address and telephone number of the person to contact
regarding notice of Council meetings and public hearings concerning the petition.
(11) A completed Statement of Benefits form (Form SB-1).
(12) Any additional information requested by the Department of Redevelopment.
Advisory Review by the Department of Redevelopment
After the filing of a completed tax abatement petition, including all attachments,
filing fee and Statement of Benefits Form, the Department of Redevelopment shall
perform a review. Said review shall be for informational and advisory purposes only,
and its findings shall not be binding on the Common Council.
The report shall address but not be limited to addressing the following:
(1) Whether all required information has been submitted by the petitioner.
(2) Whether the information contained in the Petition and Statement of Benefits
indicates that the requirements of this policy are met by the project as described in the
petition.
(3) Whether the project is located in a tax allocation area (ie, TIF District), as
defined in I.C. 36-7-14-39.
(4) Whether the area where the project is to be located has been designated an
Economic Revitalization Area as defined in I.C. 6-1.1-12.1.
(5) Whether the area where the project is to be located has been designated an
Economic Development Target Area as defined in I.C. 6-1.1-12.1-7.
(6) Whether in the Department of Redevelopment's opinion, a deduction should
be allowed based on the following:
(a) Whether the estimate of the number of individuals who will be
employed or whose employment shall be retained can be reasonably expected to result
from the proposed described redevelopment or rehabilitation.
(b) Whether 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 or rehabilitation.
(c) Other pertinent information including amount of abatement per job,
location (e.g. an area targeted for development), and general community welfare and
benefit.
(7) The Department's report shall also attach to it a copy of the Petition and
Statement of Benefits form and all attachments thereto.
Approval of the petition by the Council is subject to petitioner paying a fee of 2%
up to a maximum of $20,000 of the abatement granted as calculated by the Department
of Redevelopment. Such fee shall be due and payable to the Department of
Redevelopment annually during the term of the abatement for its costs incurred in
monitoring the petitioners' performance under this agreement pursuant to I.C. 6-1.1-
12.1-5.1, 5.6 and 5.9.
Annual Review of Petitions by the Council.
In addition to the filing requirements set forth in I.C. 6-1.1-12.1 on Forms 322
ERA/PP and 322 ERA and Form CF-1 (all as prescribed by the State Board of Tax
Commissioners) and filed with the Clark County Auditor, the petitioner shall file with the
Department of Redevelopment its Annual Report on forms previously sent to it by the
Department of Redevelopment. Such mailing by the Department shall be done annually
to each such petitioner on or before February 1st, by certified mail, and shall provide
notice that if the petitioner fails to comply, it may be subject to loss of the tax
abatement. Petitioners must return their completed Annual Report by April 1st.
Extensions for filing the Annual Report may be granted for reasonable cause.
The Annual Report shall include but not be limited to the following information:
(1) The name and address of the person(s) filing the report.
(2) The amount of real and/or personal property taxes paid for the property
during the year before the tax abatement was granted and during the most recent tax
year.
(3) The current number of part-time and full-time jobs, specifying whether
permanent or temporary, and the number of such jobs as of the end of the year
immediately prior to receiving tax abatement.
Failure to achieve estimates may result in loss of abatement.
The granting of a request for real and/or personal property tax abatement under
the terms and conditions set forth herein results in a contractual arrangement between
the City of Jeffersonville and the petitioner granted the tax abatement.
Petitioners who fail to provide evidence that they have achieved the estimates
set forth in their abatement application may be subject to termination of all or part of
their tax abatement pursuant to I.C. 6-1.1-12.1-5.9.
Annual Summary to be prepared by the Department of Redevelopment.
On or before June 30 of each year, the Department of Redevelopment shall file
an annual report with the Common Council summarizing all tax abatement activity for
the past calendar year. Said report shall include but not be limited to the following
information: The number of tax abatement petitions filed, number and type of
abatements granted, names and addresses of all petitioners who failed to comply with
their petitions and other relevant information.
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