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HomeMy WebLinkAbout2011-R-19 RESOLUTION NO. 2011-R- rq RESOLUTION APPROVING STATEMENT OF BENEFIT FOR PROPOSED PERSONAL PROPERTY TAX ABATEMENT WHEAREAS, Revere Plastics Systems, LLC has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in personal property taxes to be assessed on equipment proposed for use in a facility to be located at 5171 Maritime Road, in the City of Jeffersonville, Clark County, Indiana; and WHEAREAS, Revere Plastics Systems, LLC 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 redevelopment, 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, 'f HE REFORE, 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, Logistics and IT equipment of $13,350,000.00 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 178 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 $6,100,000.00 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 $13,350,000.00. 6. That all other information requested from Revere Plastics Systems, LLC 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 Revere Plastics Systems, LLC 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 Revere Plastics Systems, LLC 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 15th day of August, 2011, by the Common Council of the City of Jeffersonville, Clark County, Indiana. President, Common Council ATTEST: r 1 Peggy Wilder, Clerk - Treasurer Presented by me as Clerk- Treasurer to the Mayor of the City of Jeffersonville, Indiana, this 15th day of August, 2011 Q .e ?AtA I J) LO i u Peggy Wilder, Clerk- Treasurer This 15 day of August, 2011 Thomas 11 Galligan, M. r ex STATEMENT OF BENEFITS I FORM SB -11 PP I PERSONAL PROPERTY • Srate Form 51760 (R 11-06) 4 PRIVACY NOTICE Prescribed by the Department of Local Government Finance 771e cast and any apeafc,needvers Soy infeemolinn a c 1 ninl: lee balance te the Meg 1s WR1c mom, INSTRUCTIONS: par IC - 1.1.121 .1 (el and ON 1. This statement must be submitted to the body designating the Economic Rewiagzaflon Area prior to the public hearing if the designating body requires ado nladon from the applicant In maldng 1Ts deaden about whether to designate an Economic Renta&ationArea. Otherwise this statement must be subnuUed to Me designating body BEFOREa person instals Me new manufecfluing equipment aldlxresearch and development equipment. and/or logistical dafrib Zen equipment andtrin(ormation technology equipment forwhich the person wishes to them a deduction. 'Projects planned or committed to after July 1. 1987. end areas desgnsted after July 1, 1987, require a STATEMENT OF BENEFITS (IC 6 -1.1 -72.1) 2. Approval."( Me designating body (CO Council. Town Board, County Councl etc.) must be oblainedgbr to inslataton of the new manufadunng equipment andorr research and development equipment and/or /oglsfka(dislnbuflon equipment and/or information technokgy equipment BEFORE a deduction may be approved • 3. To obtain a deduction. a person must be a centred deduction schedule with the person's personal property return on a certified deduction schedue (Farm 103-ERA) wen the township assessor of the township wham the properly is situated. The 103 -ERA must be feed between March 1 and May 15 of the assessment year in which new manufacturing equipment end/or research and development equipment and/or logistical dismbulion equipment and/or information technology equipment is instated and fully/unctions& unless a fling extension has been obtained A person who obtain a Ming extension must Ole the farm between March 1 and the extended due dole of that year. 4. Property owners whose Statement of Benefits was approved ober Juno 30, 1991, must submit Fromm CF-1 / PP annually to show compliance with the Statement of Benefits. (1C 6.1.1- 12.1 -5.6) 5. The schedules established under IC 61.1- 12.1.4.5(d) and (Ovalle to equipment installed after March 1. 2007. For equipment installed prior to March 2. 2001. the sMedu,'es and statutes in effect at MO time 4011/470 continue to apply (IC 61.1 12. I- 4.5(1) and (g)) SECTION 1 TAXPAYER INFORMATION Name el taxpayr:t Revere Plastics Systems, LLC Address of taxpayer rntmberend tee( 64f s16E9, sad 2IPcode) 401 E. Elm Street, Clyde. OH, 43410 Name of contact person Hap cre number i Jmes R. Crews, Jr. (4197547 - 1863 SECTION; 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name ddosgnaSrg body /)./ nn lalo Readn enema) ` P4AgiSanv i l /e. (.t-Y'T� l,nu fl(ef -2011 / Lecallon Colnly DLGF mop d'eetd renear 5171 Maritime Road, Jeffersonville, IN 47130 Clark Jeff-Uitca OFW 10039 Descdption of nanu/adudng equipment and/or research and development equipment ESTIMATED and/or Ioglatcal deVCullon equipment and /or Information technology equipment. (use sdwIidna( sheets I/necessary) START DATE COMPLETION DATE Manufacturing EqulpmeM 08/31/2011 12/31/2013 Plastic injected molding presses, welding,assembling, lab, storage and related infrastructure equipment along R8 D Equipment 08/31/2011 12/31/2013 with office fumiture and IT equipment. Logisl Dist Equipment 08/31/2011 1281/2013 IT Equipment 08 /31/2011 12/31/2013 SEC 1 ION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Curtere flambe Sslar e-: Ntmtel rcl0il.e Si•rc 5 Number btcili7rwl Salaries 0 0.00 0 0.00 178 6,100,000.00 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 8-1.1- 12.1 -5.1 (d) (2) the MANUFACTURING R 8 D EQUIPMENT LOGIST DIST . (7 EQUIPMENT EQUIPMENT EQUIPMENT COST of Ue property is confidential. cosi. ASSESSED COST ASSESSED cosi ASSESSED cost ASSESSED WILLIE _- \YLLLE MnLUE %ALI,E Current values eon ace 000 oco Plus estimated values of proposed project IsI M000 1w,aro.ro 0.00 200.0:0 0) Less values of any popery being replaced oco 000 oho OM Net estimated vatiea upcn completion of project 1).1p1020.0) 10.IX0,0) Ore 20500500 SECTION 5 WASTE CONVERTED AND OTHER P, "NFFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) 0 03 Estimated hazardous waste convened (pounds) 0.00 Other tenses. In addition to the above RPS will enter into a long term lease of- 122,000 sq ft at this location. SECTION 6 TAXPAYER CERTIFICATION � � cloy certify that ale representations in this statement are lope. Slp :titre 1110 Date of aulllo r n * Da signed (monh, der yes) /-- I Corporate Secretary 08/02/2011 • FOR USE OF THE DESIGNATING BODY We have re lened our prior actions relating 10 the designation 01 IhiS 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 6-1.1- 12.1 -2.5, provides for the folaMng limitations as authorized undo IC 641. 12.1.2. [' A . The desig / g ea has been lirltiled 10 a period M time nM 10 exceed 5j Calendar years' (see below). The dale this designation expires Is Q 200/ le B . The type of deduction that Is showed in the designated area is limited to: IN Yes ❑ N 0 1. InskMlaIion of new manufacturing equipment; 2. Installation of new research and devebpmenl equipment. Oyes I. N o 3. Installation of new bgistinl distrlbut equipment YOS 0 4. Installation of new information technology equipment; Yes ❑ N o C. The amount of deduction applicable to new manufacturing equipment is limited to S I3, / . coat with an assessed value of j $ /3 . /o0,000.°0. E 0. The amount of deduction applicable to new research and development equipment le tingled 10 $ 5 D1 • e d _ cost with an assessed value of SS 6 6Q_ - 11A� E . The am 1 of deduction applicable to new logistical distribution equipment is limited to $ N (''\ cost with an assessed value of s_IN F. The amount of deduction applicable to new infatuation technology equipment is limited to S oZ00, 600. oo cost with an assessed value of $ 2-0 0, o00. or) i G. Other limitations Or Conditions (Sp00)), • H. The deduction for new manufacturing equipment ands new research and development equipment andror new logistical disaibWon equipment an&or new information tedvwlogy equipment fi'staaed and first daimed eligible for deduction on or after July 1.2000. is allowed for: ❑ 1 year ❑s years n For ERA's established pia to July 1.2000. only a 02 years 137 years 5 or 10 year schedule may be deducted. 0 Veers 0 Years ❑e years CO years j5 yews '• 0 1 years •' Also we have reviewed the Information contained in de statement of benefits and find that the estimates and expectations are unsalable and rave determined that the totality of benefits is sumcient to justify the deduction described above. proved: (synowa sod We of ele1MTB0 member) Telephone number Oe:e signed Motif day. yesd ' r sled by:( Designaled body 11 ,may y liti 1� — - -- 0 1 ' If the designating body Waits the time period during which an area Is an economic revitalization area. It does not Ilmd the length of time a taxpayer Is entitled 10 receive a deducllon to 8 number of years designated under 1C 6-1.1.12.1.4.5 Attachment A ATTACHMENT TO THE STATEMENT OF BENEFITS FOR REVERE PLASTICS SYSTEMS, LLC August 15, 2011 The council will grant 5 -year tax abatement on 513,350,000.00 in personal property as allowed by state statute. This applies to qualifying new equipment ordered 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 S13-1 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% of the tax benefit received as described in Indiana Code 6-1.1- 12.1 -14. REV `.. PLASTICS SYSTE LLC ...I4C_ James R. c, Jr. ChiefFi : l Officer, Revere nd tries Corpora' - retary, Revere PL • cs Systems, LLC