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HomeMy WebLinkAbout2013-R-10 RESOLUTION NO. 2013-R- 1!) RESOLUTION APPROVING STATEMENT OF BENEFIT FOR PROPOSED PERSONAL PROPERTY TAX ABATEMENT WHEAREAS, Accentf(x), LLC 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 4600 New Middle Road, Suite 2, located in the City of Jeffersonville, Clark County, Indiana; and WHEAREAS, Accentf(x), 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 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 manufacturing equipment improvement of $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 35 individuals who will be employed can reasonably be expected to result from the proposed described redevelopment or rehabilitation. 3. That the estimate of the annual salaries of $1,121,120.00 of those individuals who will be added can be reasonably expected to result p esult from the ro osed described p p 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 $200,000.00. 6. That all other information requested from Accentf(x), 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. 9. That Accentf(x), 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 Accentf(x), 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 . day of Pdat , 2013, by the Common Council of the City of Jeffersonville, Clark l unty, Indiana. .4 4. L_ L_ 4� L A .. President, Common Council AT . 1ST: ,S 1 / / / Vicki Conlin, Clerk -T- vL Presented by me as Clerk- Treasurer to the Mayor of the City of Jeffersonville, Indiana, this 9 day of jr , 2013 y� I Vicki Conlin, Clerk4 ' asutret This ? dal o 01 I i Mike Moore, Mayor k ,a,l;'- STATEMENT OF BENEFITS • � \ PERSONAL PROPERTY FORM sB -1 ! PP tt State Form 51764 (R2 /12-11) % 4 f ' Prescribed by the Department of Local Government Finance PRIVACY NOTICE i s The cost and any specific individual's salary information is confidential; the balance of the filing is public record per IC 6- 1.1- 12.1 -5.1 (c) and (d). INSTRUCT IONS: 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 a person installs the new manufacturing equipment end /or research and development equipment, and /or logistical distribution equipment and /or information technology equipment 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 installation of the new manufacturing equipment and /or research and development equipment and /or logistical distribution equipment and /or infornration technology equipment, BEFORE a deduction may be approved a To obtain a deduction, a person must file a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 103 -ERA) with the township assessor of the township where the property is situated or with the county assessor if there is no township assessor for the township. The 103 -ERA must be filed between March 1 and May 15 of the assessment year in which new manufacturing equipment and /or research and development equipment and /or logistical distribution equipment and /or information technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 and the extended due date of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF -1 / PP annually to show compliance with the Statement of Benefits. (IC 6 -1.1- 12.1 -5.6) 5. The schedules established under IC 6 -1.1- 12.1- 4.5(d) and (e) apply to equipment installed after March 1, 2001, unless an alternative deduction schedule is adapted by the designating body (1C 6 -1.1- 12.1 -17). SECT! ON 1 ' : TAXPAYER INFORMATION . ,. Name of taxpayer Accentf(x) LLC Address of taxpayer (number and street, city, state, and ZIP code) 4600 New Middle Road, Jeffersonville, IN 47130 Name of contact person Telephone number Steven Kilcran (812) 206-6200 SECT1ON 2 , ; LOCATION AND DESCRIPTION OF PROPOSED PROJECT. Name of designating body Resolution number (s) Clark County JEFF CiTY -UTICA TWP -OFW Location of property County DLGF taxing district number 4600 New Middle Road, Suite 2, Jeffersonville, IN 47130 CLARK 10039 Description of manufacturing equipment and /or research and development equipment ESTIMATED and/or logistical distribution equipment and /or information technology equipment. (use additional sheets if necessary) START DATE COMPLETION DATE Manufacturing Equipment 01/01/2013 12/31/2017 Mail equipment including printers, inserters and folders; R & 0 Equipment MI= Logist Dist Equipment .111111111 IT Equipment IIIIIIIIIIIIIIIIIII S ECTION .3 ESTIMATE OF EMPLOYEES OYIGES ANTS; SAL:ARiESAS RESULT OF PROPOSED PROJECT,. , . Current number Salaries Number retained Salaries Number additional Salaries 0 0.00 0 0.00 35 1,121,120.00 SECTION 4 ESTIM TOTAL COST AND V OF PROPOSED PROJECT NOTE: Pursuant to IC 6 -1.1- 12.1 -5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT t QGiST DfST IT EQUIPMENT ( ) () EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Plus estimated values of proposed project 200,000.00 200,000,00 0.00 0.00 0.00 0.00 0.00 0.00 Less values of any property being replaced 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net estimated values upon completion of project 200,000.00 200,000.00 0.00 0 0.00 0.00 0.00 0.00 SECTION 5 .: . WASTE` CONVERTED ' AND OTHER `DENEFITS PROMISED BY THE TAXPAYER ` Estimated solid waste converted (pounds) 0.00 Estimated hazardous waste converted (pounds) 0.00 Other benefits: SECTION 6 TA CERTIFICATION ;, hereby certify that the representations in this statement are true. Signature of .Mtrized re Title Date signed (month, day, year) • ' . " II&' CFO 04/17/2013 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 -2.5, provides for the following limitations as authorized under IC 6- 1.1- 12.1 -2. 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 . B . The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; ❑ Ye s ❑ N o 2. Installation of new research and development equipment; ❑ Ye s ❑ N o 3. installation of new logistical distribution equipment. ❑ Ye s ❑ N o 4. Installation of new information technology equipment; ❑ Ye s ❑ N o C. The amount of deduction applicable to new manufacturing equipment is limited to $ 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 $ • E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of $ . F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of G. Other limitations or conditions (specify) H. The deduction for new manufacturing equipment and /or new research and development equipment and /or new logistical distribution equipment and/or new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for: ❑ 1 year ❑ 6 years " For ERA's established prior to July 1, 2000, only a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 8 years ❑ 4 years ❑ 9 years ❑ 5 years " ❑ 10 years *` I. 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 alternative deduction schedule to this form. Also we have 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. Appr d: (signature and title of authorized me Telephone number Date signed (month, day, year) / J4LuA- C , �� - ( .1: ' > `% 30 - S 3 l C'/ c Attested by: 1 ` / 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- 1.1- 12.1 -4.5 Page 2 of 2 Multi- Variant Color Image Printer $ 85,000 Friction Free Folder $ 25,000 Friction Free Folder $ 25,000 Multiplex Inserter $ 25,000 Multiplex Inserter $ 25,000 Stage Packager $ 15,000 ATTACHMENT TO THE STATEMENT OF BENEFITS FOR Accentf(x), LLC May , 2013 The council will grant a 10 -year abatement on $200,000 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. Accentf(x), LLC Steven Kilcran Chief Financial Officer