HomeMy WebLinkAbout2011-R-06 RESOLUTION NO. 2011-R-I
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR
PROPOSED OF REAL AND PERSONAI. PROPERTY TAX ABATEMENT
WHEAREAS, Idemitsu Lubricants America Corporation., has petitioned the
Common Council of the City of Jeffersonville, Indiana, for a deduction in real and
personal property taxes to be assessed on a proposed expansion to be located at 5140
Maritime Road located in the City of Jeffersonville, Clark County, Indiana; and
WHEAREAS, Idemitsu Lubricants America Corportion, has submitted a
Statement of Benefits on the form prescribed by the Indiana State Board of Tax
Commissioncrs for such purpose, which statement includes a description of the proposed
redevelopment, an estimate of the number of individuals who will be employed as a
result of the redeveloped, an estimate of the annual salaries of these individuals, and an
estimate of the value of the redevelopment; and
WHEAREAS, 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.
WHEAREAS, 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 find as follows:
1. That the estimate value of the qualifying real estate improvement of
$7,063,500.00 is reasonable for projects of the nature described in the Statement
of Benefits submitted by the company.
2. That the estimate of the value of qualifying manufacturing equipment of
$12,820,250.00 is reasonable for projects of the nature described in the Statement
of Benefits submitted by the company.
3. That the estimate of the number of 28 individuals who will be employed can
reasonably he expected to result from the proposed described redevelopment of
rehabilitation.
4. That the estimate of the annual salaries of 1,094,912.00 of those individuals who
will be added can be reasonably expected to result from the proposed described
redevelopment or rehabilitation.
5. That the purchase and installation of the qualifying manufacturing equipment
must be completed within three years.
6. That the taxes lessened from the granting of this abatement shall be used for
manufacturing equipment up the purchase price of 512,820,250.00, and for
improvements in real estate up to the value of $7,063,500.00
7. That all other information requested from Idemitsu Lubricants America Corp., has
been submitted, and the benefits described in such information can be reasonably
expected to result from the proposed described redevelopment.
8. That the totality of benefits for said redevelopment is sufficient to justify the
deduction.
9. That Idemitsu Lubricants America Corp. has agreed to the payment of a fee of 10%
of the annual benefit of the abatement of 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 ldemitsu Lubricants America Corp., and
that said company shall be entitled to deduction for a period of TEN (10) years
for improvements to real property, pursuant to provisions of LC. 6-1.1- 12.1 -3(d)
and FIVE (5) years on qualifying personal property pursuant to the provisions
of IC 6-1.1 -12.4 for personal property, with the timely filing and perfection
thereof with the Clark County. Auditor's office.
This Ordinance shall be in full force and effect from and after its passage and
approval.
Passed and adopted this l day of, 2011, by the Common Council of
the City of .l effersonville, Clark County, Indiana.
President, Common Council
ATTEST:
Peggy Wilder, Clerk- Treasurer
Presented by me as Clerk - Treasurer to the Mayor of the City of Jeffersonville,
Indiana, this 1 day of 2011
Peggy Wilder, Clerk - Treasurer
This 9) day of 2011
t
Thomas R. Galligan, ayor
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR IDEM TSU LUBRICANTS AMERICA CORP.
February 28, 2011
The council will grant a I0-ycar abatement on $7,063,500.00 in real property and 5 -year
abatement on $12,820,250.00 in personal property as allowed by state statute. This
applies to qualifying new equipment order after the abatement is granted and is subject to
the dollar limit specified on the SB -1. This abatement will only apply to equipment
purchased and installed within 3 years from date of passage.
The company will provide jobs and salaries as specified in the SB -1 and any attachment
thereto. The "salaries" on the SB -1 is agreed to mean base hourly wages, without
overtime or benefits, times 2080 hours per year for the number of employees as indicated
in Section 3 of the SB -1. It is the expectation of the council that the company will reach
the number of employees and average wages specified on the SB -1 within three years of
the date of the granting of the abatement. The company understands that his abatement is
being offered based upon those jobs and wages. If the company fails to substantially
reach those numbers or fails to maintain those numbers over the life of the abatement, the
council may as provided by law rescind this abatement. 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% as described in Indiana Code 6 -1.1-
12.1-14.
IDEMITSU LUBRICANTS AMERICA CORP.
Heather Carver
Chief Financial Officer
a.Al STATEMENT OF BENEFITS FORM 58 -1 / PP
PERSONAL PROPERTY
ti Sato Form 51164 (P 11 -05) PRIVACY 140110E
Proscribed by Ho Oeporlmall of Local Government Finance Imam BM any sTapacbdbtah
sentry lrkm,Ylon Is coofld W:Sfo
balance or the E6n9 bpare scud
•a 106-1.1.12.151 c) end -.
INSTRUCTIONS
1. This a(nfc,nont must be tunnelled to the bcdy designating the Ecenomlc RMMrsllzafion Ama prior to the puede hearing if the designating body requires
bdamalon from the appeoanfp mML gWe decision about whether l0 designate an Economic RoWatxdionAna. Otherwise this statement mustbe submitted
to the designating body BEFORE a person InelaVS the new nwnl'adudng equipment anc$br research and domispenenf cq'J.pmoot aedlbr logistical diedb dbn
equpmprtandro(Wormer%on technology equipment for ether the person wishes to Obis a deduction. - ProJecls'plarnedcrcommitted to alter July 1. 1987,
and wens designated alter July 1. 1967, require a STATEMENT OF BENEFITS (IC 6-1.1.121) '
2. Approval oIthe designating body (C• COMM, Town DOOM; County Count", etc.) me be obtained odor to inslaVaion of rho now msnaleceeng equipment
adkrresearch and deveiopmaat equipment aNWrloglstbel thsblbo ion equipment arts Wormobbn lodmolbgy equipment BEFOREa deduction may
be approved
3. To oble&l a deduction, a person must Re a certified dodudon schedule with the person's persorW property return an a certified deduction WhOOVo (Fonn
103 -ERA) with the township assessor of the township where the property is siarated. The 103-ERA must be Bled between March 1 end May 16 of the
assessment year In which new manufacturing equipment en&cr research and devebpmenf equipment end/or logistical ds(rlbudon equipment andor
Intpmafpl technology equipment lsHSeledand fulyfuxdona, unless a Ming extension tins been oWtafied. Aperson who obtains e Ming o4(enabn must
Me the form between March 1 and the extended due date or that year.
4. Property owners whose Statement of Benefits was approved ofer June 30, 1991, must sutural Form CF-1 / PP annually 10 show campfarce Oh the
Statement of Benefits. (IC 84.142.1-55)
S The schcddes established under lC 8 -1.i- 12.1- R6(d' and (e)applyfo equipment installed alter March 1, 2001. For equipment installed Mot to March Z
2001, the schedules end statutes in effect of the time shag continuo to apply. (IC 61.1- 121 -4.6(0 end (g))
SECTION 1 TAXPAYER INFORMATION
Namedtalpayer
Idemitsu Lubricants America Cap.
Merin of tn%yp frwnba endavcm& an afa and ZlP cede)
701 Port Rd. Jeffersonville, Indiana 47130
Mere d mdod person I Talephwp ranter
Heather Caner (812)2853214
Nana wank/meng bony Rewbllat ranker {a)
City of JefferectivUe
Lomdun dpronerty -.. .._ leant/ CtOF Menu dINdet number
701 Port Rd., Jeffersonville, IN 47130 Garr 10039
Oesaiptlen of rrmnufnchAng equlpnenl ande r reesmrdl and development equipment ESTIMATED
and/or logistical dleUPoU6on equipment reviler Inform /dun technology equipment.
(use eddhbnel sheets It necessary) sURT DATE COMPLETION DATE
Warehouse and office expansion project - see attached. Main a u Eqw °mans o2aayzat 1 12131f201a
R & D Eplpment
Loofa Did Equipment
R Equipment 0210912011 12/31/2014
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Oman rumber Salaries Minis :ahead Satala Mannar nd1ItaaI Sabre
59 3,185,489.00 59 3,185,489.00 28 1,0K912.00 1
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pwsuanl 1010 61.1. 12.1.8.1 {d) (2) the MANUFACTURING R & 0 EQUIPMENT LOGIST UIST I IT EQUIPMENT
EQUIPMENT EQUIPMENT
COST of the properly is opddenlieL COST AESEESED COST I ASSESSED mist I ASSESSED czeT ASSESSED
MIME vATLE I I I I LPLUE %AWE
Current values
Plus estimated values of proposed pro)x fa•
1 maloom 192.030.00
Less values of any property being replaced I
Net estimated vWWes Imam comMsfon of moJect I `
SECTION 5 WASTE CONVERTED AND OTHER 13 :REFITS PROMISED BY IHE TAXPAYER
Estimated mild wade converted (powder) Esrmaind heznrdoos waste corr'cncd (pounds)
Odor Smelt
1 hereby easy Ihet ion representation N We statement are bun.
Spsaued Wee Tip natedg.ed Owe). deX leer) .
O - Finance & Plannhg Manager 02/03/2011
OR USE OF THE DESIGNATING BODY
We have re'+awed our prior tidbits relatlg to the deslguaXn dtNa economic reveatrs0on area and fled Owl the rpplicaM meets the general s:a
adopted In the resolution previously approved by this body. Said resolution. passed under 10 e- l.1.12.1-2.S provides For the following limitations ss
authorized under IC 6-1.1- 12.1.2.
A . The designated area has been limned to s period of one no to exceed calendar years ' (seeb&o.J. The date the dealpna&Cn errs
Is /.2 -19
13. Tho type of dSUWOn that tangoed In the designated area la limited to:
1. Installation of new r nnufaadwinp equipment E4Yee ON o
2. Installation of new research and development equipment ❑Yoe N o
3. instofafon of new logistical distrbution equprnm VW: ❑Yee No
4. Installation of new Information technology equpment: Yes ON o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ Pt rlsd cost with an assessed value of
$
D. The amount of deduction applicable to new research and development equipment Is limited to $ cost
with an assessed value Of $ .
F.. The amount of deduction applicable to new logistical deflation equipment Is Wed to S cost with an messed value of
$
F. The amount of deduction applicable to new bformalion technology equipment Is limited to $ / 12, de.>c) cost nsithh an assessed value of
$ 1 .
G Can emiatlons or Goodly ,s (gpeeaJ,)
H. The deduction for new mantdachei g equlprnerc arxiror new research and development equgment ardor rew logistical (Steelman nsrtpmant andkr
new infa,natlm technology equipment Irwraled and first debited cEgible for deduction on Cr after July 1. 2C00, is allavcd for
01 yea ❑e years " For ERA's rstahlcud odor to July 1.2000, gdya
02 yeas 07 years 5 or 10 year schedule may be deducted.
03 yeas 08 yeas
❑ ypaa 09 years
LW5 yeas" ❑10 yeas"
Also wo have reviewed the information contained In the statement of benefits and find Met de estimates and expectations aro roasoneble and have
determined that the totality ofbenefits la to Justly the deduce n desaibod above.
n7, 'Az
/owed: fatnalara taxi We of rWhrrffedmomSmOaT
aM Telephone number Delia signed (month, des peel
' Aeeeneted pp �i a
� 21.2.011) (r� cfff�(. b yypi r,"1 vv 114)00,71.40•71.• f .bit
• N the dmgneurg body limits the one peeled during %Mich an area is an economl revitallaaa l ion area, h does rot knit the length domes taxpayer is
entitled to recaNe a deduction to a number of years designated under IC 6-1.1- 121-4.5
J II
f `ra^" ?c, STATEMENT OF BENEFITS 70 PAY 7e
t; s ' ) REAL ESTATE IMPROVEMENTS
a Mete Foam 61t67 (R2t 1-0t) FORM 5B -1) Real Property
Preaenbed by V,e Department al Local Gavwmmant Finance
TILLS Statement Is beig completed Tor real proporty that qualifies under t a following butane Code (check one box):
❑ Redevelopment ar rehabilitation of real estate improvements (Ic 8
O Efgiyo vacant building (IC 6-1.1- 12.1 -4.8)
INSTRUCTIONS:
t This statement must bo subrnatedt o the boar designating the Econnns , RavtearnffonAreepdorto the public begone athe desVjneengbooy requires
Trion !.term from the appeaad M making As dwelt:i, about Itlalher to designate en Erenon* Revitalization Area. Othem se Mit statement must be
suubmetedto the designab'ng body BEFORE the redevelpment or/MabelSion dreal popery tor each the parson Metres to data a deduction.
'Prolate planned oroomrmlfcd to otorJUy 1, 1997, and aroas dosymled aterluy 1, 1987, require a STATEMENT OF 8ENEFITS. (IC 6-1.1 -12.1)
2. Approval of the descooingbody (CRY Coronet, Town Scant, CountyCowucb, ate) meat be obrainedAdel to brhktten d Meredevetyn»nf orlahab,5tadm,
BEFOREa deduction may be approved.
3. To oat* a deduee'on, application Fore 322 ERA/RE or Proem 322 ERANBD, NMicheverla applicable, must be I W with the Care yAuditor by the leer
of (1)1,6w 10; or (2) S ' (30) days atterMa note of eddIhn to assessed valuedon or now assessment Is melted to the pppertyowneret to addross
shown on the records of the township assessor.
a. Property owners whose Statement of Benefits was approved after June 30, 1991, most attach a Fain CF- 1/Real Property annually to the application to
show compfbnos wire the Statement ofB9neelt dC 6.1.1- 72.1.5.1(b) end IC 6.1.7. 721.6.3(0)
S The schedules established under lC8- 1.1.12 for rehabilitated property and undo IC 6.1.1.12.148(1)lcr vacant Wading: apply to any statement
of benefits. approve don or after July 1,2000. 7hessbpdabs olfoc5'ro prior 10 July 1, 2000, shalcordhw to apply to a statement of betnetka Ned helots
Judy 1, 2000.
SECTION 1 TAXPAYER INFORMATION
Name or Papaw
Idemitsu Lubricants Atomics Corp.
Address et Dapa)tr (number enaaseet, As ante, and ze ode)
701 Port Rd., Jefferonsvlfo, IN 47130
Neme of contact permed brophone numbs EAaII a6.1raS.
Heather Cervor (812)285.8214 hcarverrrilacorp.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Kama or daYOicg body Peeolution number
City of Jeffersonville
Lopatin of prtpedy County Intro ts astral number
701 Port Rd., Jefferonsville, IN 47130 I Clark 10039
PentIplqn nl reel property Improvements. redevelopment er eel abbla6m, (use a*Nmnal theta Inecessae) 66nraled dad data (¢anal day, yew)
Warehouse and office expansion project- see attached. 02/09/2011
FYlntred mrplmm date (mane- day Man)
12/31/2014
SECTION 3 ESTIMATE OF Ero PLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
alert nutrbv Searles Minter rammed SSP=. Number endeared Malodor
59.00 $3 185,489.00 59.00 $3,185,489.00 28.00 $1,094
SECTION 4 ESTI MATE D TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Ptnuonl• to IC 6.1.1. 12.15.1 (d) (2) the COST of the property REAL ESTATE IMPROVEMENTS
15 confidential. COST ASSESSED VALUE
Current values
Plus estimated values of proposed project 71/63.500.00
Less values of any properly being replaced
Net estimated values upon completion 01 Weida
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated sold waste converted (pounds) Estimated hazardous waste converted (pounds)
Other Watts
SECTION 6 TAXPAYER CERTIFICATION
!hereby certify et therepresen r "ens inthls statement aro two.
Sle:ature Msumo • . rot . , Tllh Ode Aped !node Trey War)
Flnance)Ptanninn Manager 02/03/2011
Pagel of
FOR USE OF THE DESIGNATING BODY
We have reviewed our prior aclons Melba to the dea31aG of: s Economic Rr+Naraotcn Area and find that the applicant meets the general standeds
adopted In the resoktian previously approved by this body. Send resokxbn, passed under IC 6-1.1 -12.1. provides for the (Clawing imitations:
A. Ttt designated area has been limbed to a period of fine not to exceed )) calendar years • (see babty). The date this des'gnatkn
eubes is (3 31 -0'7�
B. Tho type of deduction yet is alls•Ved In the designated area Is binged to: :/
1. Redevelopment or ruhubilgullon of real estate improvenens (J Yea 0 NO
2. Residentially dIKressed areas ❑ Yes ❑ No
3. Occupancy of a vacant budding • ❑Yes 0No
C. The aouni calm deduWOn applicable is limited to 7,0 6 < Ca O.
D. Other linitaticns or ceen:Wiens (specie
E. The deduction Is allowed for 1 1) yeart (see below).
We have also reviewed the Informedat contained In the statement of benefits and find that the estimates and expectations are roascnoble and have
determined
that the tataTy of benefits Is w0ictent to justly the deduction desalbed above.
Aipoeed Amerce
Sao eamm�a. ordes69reda 6odyj Telephone mincer Dote signed °nom. dm it q
by(40noture d !es) AA r: WOW � •
` . .
• If fine dcs'r body Emits the time period during which an area Is an economic revtaliraten arse. t does not lint the length of time a taxpayer c
entitled to receive a deduction to a number of years designated trader IC 6-1.12- 12.1-4.
A. For raa'dentaly distressed areas. the doisctbn period may not exceed five (5) years.
B. FCC redevekprnent and renab®tation or real estate Impvvemetxs:
1. If the Fsmernle Revitalzation Area was desgnated pdoeto July 1. 2000, 0 ededuction period Is limited to three (3), sa (61 or ten (10) years.
2. If the Economic Rentafvngon Area was designated after June 20, 2030, the deductbi period may not exceed ten (10) years.
C. Fortscard baldings. the deduction period may not exceed two (2) years.
Page 2012
ldemitsu Lubricants America Corp.
02/03/2011
SB -1 /Real Property - Section 2
Warehouse and office expansion project- we are looking at possibly expanding our warehouse in
southern Indiana by 100,000 to 150,000 sq. ft. Our production volume has expanded to the point that
we no longer have adequate space to house the necessary inventory volume to maintain stable supply
for our customers. We currently have Inventory In CA, MO, PA, and AL These are all viable options for
housing additional inventory; as well as, warehousing Inventory In 01-1 near our largest customers. This
project continues to be competitive for determining best possible location.
Current and new salary amounts do not Indude a fringe benefit factor of 24% for insurance and 401k
matching. In addition, the new hire salaries total does not reflect a bonus program available twice per
year based on Individual and company goals.
Property Tax Estimate for Idemitsu Lubricants America Corporation
Clark County, JEFF CITY - UTICA TWP -OFW, Tax District No: 10039
Tax Rate (2010): $2.5554
REAL PROPERTY
Cost of Real Property: $7,063,500.00
With Abatement Without Abatement
Circuit Net Circuit Estimated Tax
Property Breaker Tax Property Property Breaker Tax Net Property Abatement
Taxes Credit Taxes Taxes Credit Taxes Savings
Year 1 50 $0 $0 5180,501 $0 5180,501 5180,501
Year 2 $9,025 $0 59,025 5180,501 $0 5180,501 5171,476
Year 3 '536,100 50 $36,100 5180,501 $0 5180,501 $144,401
Year 4 563,175 $0 563,175 5180,501 $0 5180,501 5117,326
Year 5 590,250 50 590,250 5180,501 50 5180,501 $90,251
Year 6 5108,300 $0 5108,300 5180,501 $0 5180,501 $72,201
Year 7 $126,350 50 5126,350 5180,501 $0 5180,501 $54,151
Year 8 5144,401 50 5144,401 5180,501 $0 5180,501 536,100
Year 9 5162,451 50 5162,451 5180,501 $0 5180,501 518,050
Year 10 5171,476 $0 $171,476 5180,501 $0 5180,501 $9,025
Totals 5911,528 50 5911,528 51,805,007 50 51,805,010 $893,482
PERSONAL PROPERTY
Cost of Personal Property: 513,012,250.00
W ithAbatement Without Abatement
Circuit Net Circuit Estimated Tax
Property Breaker Property Property Breaker Net Property Abatement
Taxes Tax Credit Taxes Taxes Tax Credit Taxes Savings
Year 1 50 50 50 5133,006 50 5133,006 $133,006
Year 2 $37,242 $0 $37,242 5186,208 50 5186,208 5148,967
Year 3 555,863 50 555,863 $139,656 $0 5139,656 $83,794
Year 4 $63,843 50 $63,843 $106,405 $0 5106,405 $42,562
Years $79,804 $0.$79,804 $99,755 $0 $99,755 $19,951
Totals $236,751 50: 5236,751 5665,030 $0 5665,030 5428,279