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BEFORE THE COMMON COUNCIL
FOR THE OF JEFFERSONVILLE, INDIANA
RESOLUTION NO. 2013-R- A
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR PROPOSED
REAL PROPERTY TAX ABATEMENT
WHEAREAS, Leo Properties, Inc. has petitioned the Common Council of the City of
Jeffersonville, Indiana, for a deduction in real property taxes to be assessed on a proposed
expansion to be located at 2123 Veterans Parkway, located in the City of Jeffersonville, Clark
County, Indiana; and
WHEAREAS, Leo Properties, 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 the
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 completed proposed project of $1,200,000.00 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 27 additional individuals who will be employed can
reasonably be expected to result from the proposed described redevelopment of
rehabilitation.
3. That the estimate of the additional annual salaries of $1,500,000.00 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 Leo Properties, Inc. 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 Leo Properties, 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 Leo Properties, Inc., and that said company shall be entitled to deduction for
a period of TEN (10) years on qualifying real property pursuant to the provisions of Indiana
Code for real 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 c day of la, , 2013, by the Common Council of the City of
Jeffersonville, Clark County, Indiana.
This Resolution shall be in full force and effect after its passage by the Common Council
and approval by the Mayor.
PASSED AND ADOPTED by the Common Council of the City of Jeffersonville, Clark
Count, Indiana upon this , c day of Seam. u.o , 2013.
A elat,d.
Connie Sellers, President
Jeffersonville Common Council
ATTEST:
(20,,Joc'
Vicki Conlin, Clerk
City of Jeffersonville
PRESENTED by me to the Mayor of the City of Jeffersonville Clark County, Indiana
upon this day of 1c 1 , 2013.
Vicki Conlin, Clerk
City of Jeffersonville
SIGNED and APPROVED by me upon this 0 2 1 / d - of
, 2013.
Mike Moore, ayor
City of Jeffersonville
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR LEO PROPERTIES, INC.
January 17, 2013
The council will grant a 10 year abatement on $1,200,000.00 in real property allowed by state
statute.
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.
LEO PROPERTIES, INC.
William L. Burns, Jr.
President & CEO
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" "; STATEMENT OF BENEFITS
c2 20 PAY 20
A t( %I = REAL ESTATE IMPROVEMENTS -
State Form i 51767 (R3 / 12 -11) FORM SB - /Real Property
\ '. „ ` f Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
U Redevelopment or rehabilitation of real estate improvements (IC 6 -1.1- 12.1 -4)
❑ Eligible vacant building (IC 6- 1.1- 12.1 -4,8)
INSTRUCTIONS:
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction.
"Projects" planned or committed to after July 1, 1987, and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (iC 6 -1.1 -12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment or rehabilitation,
BEFORE a deduction may be approved.
3. To obtain a deduction, application Form 322 ERA/RE or Form 322 ERA//BD, Whichever is applicable, must be filed with the County Auditor by the later
of: (1) May 10; or (2) thirty (30) days after the notice of addition to assessed valuation or new assessment is mailed to the property owner at the address
shown on the records of the township assessor, if any, or the county assessor.
4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF -1 /Real Property annually to the application to
show compliance with the Statement of Benefits. [IC 6 -1.1- 12.1- 5.1(b) and IC 6 -1.1- 12.1 - 5.3(1))
5. The .schedules established under IC 6 -1.1- 12.1 -4(d) for rehabilitated property and under IC 6 -1.1- 12.1- 4.8(1) for vacant buildings apply to any statement
of benefits approved on or after July 1, 2000, unless an altemative deduction schedule is adopted by the designating body (iC 6 -1.1- 12.1 -17). The
schedules effective prior to July 1, 2000, shall continue to apply to a statement of benefits filed before July 1, 2000.
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer
Leo Properties, Inc.
Address of taxpayer (number and street, city, state, and ZIP code)
1712 Williamsburg Drvie
Name of contact person i Telephone number _ 1 E -mail address
William L. Burns, Jr. 1 (812) 283 -4778 BBurns(28FIRST.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
Location of property County DLGF taxing district number
2123 Veterans Parkway Clark
Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) Estimated start date (month, day, year)
New construction of aprox. 9100 square foot office building. 01/01/2013
Estimated completion date (month, day, year)
07/01/2013
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
39.00 $2,200,000.00 39.00 $2,200,000.00 27.00 $1,500,000.00 f
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6- 1.1- 12.1 -5.1 (d) (2) the COST of the property REAL ESTATE IMPROVEMENTS
is confidential. COST ASSESSED VALUE
Current values 600,000.00
Plus estimated values of proposed project 1.200.000.00
Less values of any property being replaced 0,00
Net estimated values upon completion of project 1.800.000.00
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) 0.00 E stimated hazardous waste converted
(p ) (pounds) 0.00
Other benefits
Economic growth creating jobs.
'SECTION 6 TAXPAYER CERTIFICATION
hereb ify th- the representations in this statement are true.
S i. at e . ✓ . .razed re. sentative Ti
f l � � Title Date signed (month, day, year)
iik
i 1 , � _ President 1 211 0/ 2 0 1 2
Page 1 of 2 _ _ _
FOR USE OF THE DESIGNATING BODY
We have reviewed our prior actions relating 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 6 -1.1 -12.1, provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed calendar years ' (see below). The date this designation
expires is
8. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements ❑ Yes 0 No
2. Residentially distressed areas [] Yes ❑ No
3. Occupancy of a vacant building ❑ Yes ❑ No
C. The amount of the deduction applicable is limited to $ (�
D. Other limitations or conditions (specify)
eci
t' P fY)
E. The deduction is allowed for years' (see below).
F. Did the designating body adopt an alternative deduction schedule per IC 6- 1.1- 12.1 -17? ❑ Yes ❑ No
If yes, attach a copy of the altemative deduction schedule to this form.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved (signature and title of authorized member of designating body) Telephone number I Date signed (month, day, year)
I
Attested by (signature and title of attester) Designated body
If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is
entitled to receive a deduction to a number of years designated under IC 6- 1.12 - 12.1 -4.
A. For residentially distressed areas, the deduction period may not exceed five (5) years.
B. For redevelopment and rehabilitation or real estate improvements:
1. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years.
2. If the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years.
C. For vacant buildings, the deduction period may not exceed two (2) years.
Page 2of2
Earnings Projects for new persons working at the building planned for 2123 Veteran's Parkway,
Jeffersonville, IN 47130 on behalf of Leo Properties, Inc.
At RE/MAX FIRST:
The average earning of professional real estate agents currently affiliated with RE/MAX FIRST,
is approximately $60,000 /year.
It is anticipated by RE/MAX FIRST that after over the next two years, with the completion of the
new building, 20 new agents will be working out of the new building. The RE/MAX system,
predominately attracts agents the commit their full time effort to the real estate sales business.
Therefore, it is anticipated that all of the new agents will be professional full time real estate
agents with earnings that are equal to that of the current professional real estate agents affiliated
with RE /MAX FIRST.
Additionally, with the addition of the 20 new professional real estate agents, RE/MAX FIRST
anticipates hiring two additional full time staff person in this office. RE/MAX FIRST would pay
and provide benefits to each of these new employee of approximately $30,000 /year.
At Bryan Jackson's State Farm Insurance Office:
The anticipated relocation of Bryan Jackson's State Farm Insurance Office to this new, and for
Mr. Jackson, expanded office would allow for the hiring of additional, staff or agents. Mr.
Jackson anticipates the hiring over the next two - five years of three new full time persons. It is
anticipated that these full time employees will earn approximately $30,000 /year. Additionally,
Mr. Jackson anticipates the hiring of additional part time people when at the new office. It is
estimated that two additional part time people would be hired and that each would work
approximately 20 hours per week and earn $10.00/hour.
At the real estate title and closing company office;
It is anticipated that at the real estate title and closing company which will, over the next two
years, hire two full time employees to work at that office and that each full time employee would
earn approximately $25,000 /year.