HomeMy WebLinkAbout2011-R-11 RESOLUTION NO. 2011 -R- 11
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR PROPOSED
PERSONAL PROPERTY TAX ABATEMENT
WHEAREAS, Key Electronics, Inc., has petitioned the Common Council of the
City of Jeffersonville, Indiana, for a deduction in personal property taxes to be assessed
on a proposed expansion to be located at 2533 Centennial Boulevard, located in the City
of Jeffersonville, Clark County, Indiana; and
WHEAREAS, Key Electronics, Inc., 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 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 of the value of qualifying manufacturing equipment of
$1,885,000.00 is reasonable for projects of the nature described in the Statement
of Benefits submitted by the company.
2. That the estimate of the number of 150 individuals who will be employed can
reasonably be expected to result from the proposed described redevelopment of
rehabilitation.
3. That the estimate of the annual salaries of S686,000.00 of those individuals who
will be added can be reasonably expected to result from the proposed described
redevelopment or rehabilitation.
4. That the purchase and installation of the qualifying manufacturing equipment
must be completed within three years.
5. That the taxes lessened from the granting of this abatement shall be used for
manufacturing equipment up the purchase price of $2,135,000.00.
6. That all other information requested from Key Electronics, Inc., has been
submitted, and the benefits described in such information can be reasonably
expected to result from the proposed described redevelopment.
7. That the totality of benefits for said redevelopment is sufficient to justify the
deduction.
8. That Key Electronics, Inc.. 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 Key Electronics, Inc., and that said
company shall be entitled to deduction for a period of 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 _ day of , 2011, by the Common Council of
the City of Jeffersonville, 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 _ day of . 2011
Peggy Wilder, Clerk-Treasurer
This ij day of/ 011
Afit
Thomas R. Galligan, . yor
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR KEY ELECTRONICS, INC.
March 9, 2011
The council will grant a 5 year abatement on $1,885,000.00 in personal property 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.
KEY ELECTRONICS, INC.
A. omas Hardy
'President & CEO
Vani L. Burns, Controller
Property Tax Estimate for Key Electronics
Clark County, JEFF CITY -UTICA TWP -OFW, Tax District No: 10039
Tax Rate (2010): $2.5554
PERSONAL PROPERTY
Cost of Personal Property: $2,135,000.00
With Abatement 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 $0 50 30 $21,823 30 $21,823 $21,823
Year 2 ' 56,110 30 36,110 530,552 $0 330,552 $24,442
Year 3 59,166 50 39,166 $22,914 $0 $22,914 313,749
Year4 $10,475 $0 510,475 517,458 $0 517,458 56,983
Year 5 513,094 50 $13,094 516,367 50 $16,367 33,273
Totals $38,845 $0 $38,845 $109,114 $0 $109,116 $70,270
STATEMENT OF BENEFITS I FORM SB•4 /PP
g. ,g,ik7 PERSONAL PROPERTY
SsabFerm5178c (R 1158) PRIVACY NOTICE
Prescdbed by the Deparonent M Local Gouremment Finance
The cosi and and week inaMduafs
salaryi :melon is carcNenML ma
Wain utheMoo b w ' r
• - IC 61..1 - 12.15 c .1 c and d .
INSTRUCTIONS:
1. This statement must be submitted to tho body designating the Economic Revitalization Area pier to the public hearing R the designating booy requires
infonrefkn from tteapp canon making its decision about whether to designate an Economic RenTah7ah'bnNea. Omenvne thisafafament must be submetcd
to the designating body BEFORE a person.insfaMM the newmonufecWbg equipment end/orresearch andr:eveicpmenf rqupmeM, ender loglsebaf dombiAi m
equipment ender f ifornmtton rechno logy equipment for which the person wishes to cfeim a deduction. 'Projects' planned or Cemented to aRer Jul 1, 1987.
and areas designated attar July 1, 1987, require a STATEMENT OF BENEFITS. (IC -1.7 -12.1)
2. Approval of the designating body (City Council, Town Board, Counfy Caenct etc.) must be obtained gdor le DetallaLon of the neivmenufacardng equipment
and/or research anddevebpment equpment and/or iogislicer disfnbulion cquj,manl ondbr information Icchnogsgy equipment, BEFORE a ded ucdcn may
be approved
3. To obtain a dodueifon, a person must tie a codified deduthdn schedule with the person's persocalpropeayreturn on 0 certified deduction schedule (Form
103.ERA) with the township assessor of the township where the property is sauafed. The 103 -ERA must be fled beMMen March 1 and May 75 of rho
assessment year in which now manufacturing equipment and/or research and development equipment and/or bglsgcat dtsfdbufon equipment and/or
information technology oqulp'rwnt is installed and fee/ functional, emless a BEng ev(enson has been obtained Apemen who obtains a MMtn° extension nwat
file the tam between March 1 and the extended due date of that year. •
4. Property owners whose ailment of Benefits was approved after June 30, 1991, must rubrnR Form CF-1 / P1' annually to shag compliance with the
Sotcmcnf of Bcnofts. (7C 6.7.1.121.5.6)
5. The schedules essbashed under IC 8-1.1- 12.1- 4.5(d) and (e) appfyto equipment installed after March 7, 2001. For equipment installcdpr(or to March 2,
2001, the sdadules and s(efules M effect al the time shall Continue to apply. (IC 64.1 - 12.1-4.5(0 end (g)) ......
SECTION 1 TAXPAYER INFORMATION
Name °teepehv(
Key Electronics, Inc. . •
Address of taapayar Chanter wad scrag ooe xfsls, end Ze'coee)
2533 Centennial Boulevard, Je ktrsonville, Indiana 47130 -8535
l eave N 0)0 WWI :N.`.'then n, - --
A. Thomas Hardy, President 8 CEO and Vani L. Bums, Controller 1812) 206-2508
Haw of dm/gnadrg boy Rrsdulan number (al . '
City of Jelrersonville 11•R- , •
1ocalloncfpmy County OI.GA wmdngdwllG runn»s' --
pg
2533 Centennial Blvd, North Port Business Centre, Jeffersonville ors 10039 ... , ..
Description of manuladuing cqupnrnt and/or research and development equipment ESTIMATED''
and/or logistical distrbu5on oqupencne and/or information lochnobgy equipmcn' START I COMPLbTQV G.ST
(use addginnaf sheets %necessary]
SMT manufacturing machinery and related equipment hlanufaau gEqupmeM 0310112011 12)3112014
and IT systems to support manufacturing. R SO Equipment
Loglst Dist Equipment
IT Equipment 03/01@011 i':b2f,3112Q` %t1'l
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROTECT
Cvrmi nerbcr Saknex !.Numberrcbirad Salad, Nutber eicitenal Usk:::
150 5,138,000.00 i 150 5,136,000.00 30 686,000.00 , •
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
I MANUFACTURING LOGIST DIST
NOTE: Pursuant to IC 6. 1.1.12.1.5.1 (d) (2J IhC R & D EQUIPMENT IT EQUIPMENT' -
EQUIPMENT EQUIPMENT
I COST of the property is oorifidentiaL COST ta•ESSED COST S . scar AA$$SS��SSEE''
WIDE WLUE COST ASSES W1AE ' 1NLUE'., a o`
Current values '
Plus estimated vahms of propoxod project 1Aaspaa.0 femur zIa000.0d .
Loss values of any property being replaced sop ow em 0.00
Net estimated values epm completdn of prefect -
SECTION 5 'HASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimates solid waste converted (pobrro's) Esihnated hazardous waste converted (pounds) ..
Omer benegg:
Tho company Is experiencing a strong rebound a business afar a 20anonm slump due to the swore economic recession. In 2008 we closed our manuNceeng plant
in Owingedlle, Kaneda; and contoldated the wok /rpm that pent into pit Jefersomite pant. •
SECTION G TAXPAYER CERTIFICATION
8tgia _
I�r�y/ r�8p I hereby Wliry that tho representations in this statement are true.
/'1. I It I IC7/ , wrvwawn...ean
' \ura.wn,...twme,racr...,.. Tub Om¢spned (month day *ad.. lei a°cea .p: CEO 1 0222/
•
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FOR USE OF THE DESIGNATING BODY
'No have reviewed car arc( action resting to the designation of this economic revitalization area and find that the applicant meets the general standards •
adopted in the resolution previously approved by this body. Said resolution, passed under IC 61.1- 12.1 -2.5, provides for the following Unitatlons as
authorized under IC 61.1. 12.1 -2.
A . The designated area has been tinted to a period of time not to exceed .. calendar year • (see below). The date this designator tepees '
is 1).3 -.l.p h`l
B • The Iyps or deduction that is aIovled in the designated area Is Imlled to:
1. Instatadcn of new manufacturing equipment; M s ❑I$o
2. Instalation of new research and development equipment; Dyes o
3. Installation of nom/logistical distribution equipment. r QYaa ❑No
4. Instaliatan of new information technology equipment; IJ r e s ❑ N o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ AR S el 0 7 cost with an assessed value of
$ \•r, nib :) .
0. The amount of deduction applicable to new research and development equipment is limited to $ cost
with an assessed value of $
E. The amount of deduction applicable to now logistical distribution equipment 5 limited to $ 3S• a s n cost with an assessed value of.
$ 3S
F. The amount of deduction applicable to new information technology equipment is limited to $ a 1 es Or, cost with an assessed value of
G Other limitations or oondltlon% (;unary)
II. The deduction for new manufacturing ogiipma4 anrycrnew research and development equlxnent m new tentage-9i distribution epdp andion
new Information technology equpment Instated and first claimed Mg tie for deductm on or after July 1, 2000- is allowed far.
❑ 1 year ❑ 8 years " For E RA's estabtshed prior to July 1, 2000, only a
02yoars 07 years 5 c 10 year schedule maybe deducted.
03 years 08 years
, years ❑ 9 years •
Ds years" ❑10years'
Also we have reviewed the Information contained in the statement of benefits and find that the estimates and expectations se reasonable text have
determined That the totality of benefits is sufficient to 'lusty the deduction described above.
Appt,td (signature and leb arau'h ij . Telephone cumber Dab steed (month, dos ).a,) ..
17 .hrTl7 ' / /4.44, � emu .sit) Ass-- 6 400 7'I- //
Attested by l>asuirobd body
• If the designating bodyfmlb the time period dying which an area Is an economic revitafizaticn area, it doea not limit the length of time a taxpayer is
entitled to receive a deduction to a number of yeas designated under IC 61.1 - 12.1 -4.5
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