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HomeMy WebLinkAbout2014-R-7BEFORE THE COMMON COUNCIL FOR THE CITY OF JEFFERSONVILLE, INDINAA RESOLUTION NO. 2014-R- 7 RESOLUTION APPROVING STATEMENT OF BENEFIT FOR PROPOSED REAL PROPERTY AND PERSONAL PROPERTY TAX ABATEMENT WHEREAS, Mill Steel Indiana, LLC 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 redevelopment of property, including the construction and buildings and related improvements, to be generally located at 1195/1125 Port Road located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, Mill Steel Indiana, LLC, has submitted a Statement of Benefits on the form prescribed by the Indiana State Board of Tax Commissioners for real property and personal property, which statements 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 WHEREAS, 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.; and WHEREAS, the Redevelopment Commission of the City of Jeffersonville has made a favorable recommendation for approval of the Statement of Benefits; and WHEREAS, 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 $3,600,000.00 is reasonable for projects of the nature described in the Statement of Benefits submitted by the company. 2. That the estimate value of the qualifying personal property improvement of $7,085,000.00 is reasonable for projects of the nature described in the Statement of Benefits submitted by the company. 3. That the estimate of the annual salaries of 43 of those individuals who will be added can be reasonably expected to result from the proposed described redevelopment or rehabilitation. 4. That the taxes lessened from the granting of this abatement shall be for improvements in real estate up to the value of $ 3,600,000.00. 5. That the taxes lessened from the granting of this abatement shall be for improvements in personal property up to the value of $ 7,085,000.000. 6. That all other information requested from Mill Steel Indiana, 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 Mill Steel Indiana, 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 I.C. 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 Mill Steel Indiana, LLC, and that said company shall be entitled to deduction for a period of TEN (10) years for improvements to real property and FIVE (5) years for personal property pursuant to provisions of I.C. 6-1.1-12.1-3(d), with the timely filing and perfection thereof with the Clark County Auditor's office. This Resolution shall be in full force and effect from and after its passage and approval. Passed this 6 day of %Y1 , 2014. FOR: VOTED AGAINST: Passed and adopted by the Common Council of the City of Jeffersonville, Clark County, Indiana on this 5 day of 111 , 201 Vicki Conlin, Clerk Dennis Juliu 'ouncil President e nted by me as Clerk to the Mayor of said City of Jeffersonville this day of , 2014. (DA.100 This Resolution approved and signed by me this 2014. Vicki Conlin, Clerk rn Mike oore, Mayor This Resolution vetoed by me this day of , 2014. Mike Moore, Mayor ATTACHMENT TO THE STATEMENT OF BENEFITS FOR MILL STEEL INDIANA, LLC , 2014 The council will grant a 10 -year abatement on $ 3,600,000.00 in real property and a 5 - year abatement on $ 7,085,000.00 in personal property as 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 five years of the date of the certificate of occupancy. The company understands that this 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. MILL STEEL INDIANA, LLC By: Printed: Title: BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION STATE OF INDIANA A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL APPLICATION FOR TAX ABATEMENT FOR MILL STEEL INDIANA, LLC RESOLUTION NO. 2014-R“ g WHEREAS, Mill Steel Indiana, LLC has made application for tax abatement from the City of Jeffersonville, Indiana; WHEREAS, the Common Council is the designating body for approving such applications; WHEREAS, said application requires review by the Jeffersonville Redevelopment Commission. NOW, THEREFORE, BE IT RESOLVED BY THE JEFFERSONVILLE REDEVELOPMENT COMMISSION THAT: 1. The Jeffersonville Redevelopment Commission has reviewed the attached "Statement of Benefits" for Real Property and Personal Property; and 2. The Jeffersonville Redevelopment Commission hereby recommends to the Common Council the application for tax abatement for Mill Steel Indiana, LLC Adopted at a meeting of the Jeffersonville Redevelopment Commission held the as day of R f, , 2014. JEFFERSONVILLE REDEVELOPMENT COMMISSION ATTEST: Sec 11/ 1/2961557.1 ABATEMENT SCHEDULE EXHIBIT REAL PROPERTY PERSONAL PROPERTY Year 1 — 100% Year 2 — 95% Year 3 — 80 Year4-65% Years -50% Year 6 — 40% Year? -30% Year8-20% Year 9-10% Year 10-5% Year 11— 0% Year 1 — 100% Year 2 — 80% Year3-60% Year4-40% Years -20% Year 6-0% MEDIA CONTACTS: Anne Keller One Southern Indiana Direct: 812-945-0266 Email : annek(a,1 si.org Eric Lambert Mill Steel Co. Direct: 616-977-9030 Email: eric.lambert(a�millsteel.com EMBARGOED UNTIL APRIL 28, 2014, 12:00 P.M. EDT Southern neIndiana business resources • advocacy Mill Steel Expands into Southern Indiana Port of Indiana -Jeffersonville location will serve growing market Jeffersonville, Ind. (April 28, 2014) — One Southern Indiana (1 si) and the City of Jeffersonville announce today Mill Steel Co.'s expansion of their operations into Southern Indiana. Mill Steel is a flat rolled steel service center headquartered in Grand Rapids, Mich. Through the coordination of 1 si, Mill Steel Co. officials will appear before the Jeffersonville Redevelopment Commission today at Noon in Jeffersonville City Hall, which will determine their eligibility to request local tax incentives at a City Council meeting on May 5, 2014. Mill Steel will invest $16.1 million to purchase an existing 105,000 square -foot facility in the Port of Indiana -Jeffersonville and begin an immediate expansion to add 120,000 additional square feet. This 225,000 square -foot facility will house two state-of-the-art slitting lines, in addition to a cut -to -length line, to add to the company's service capabilities. The facility will be operational beginning in June 2014, and it is projected to add an estimated 43 new full-time positions to the region. "Mill Steel and other companies gain an advantage by locating at one of Indiana's three ports," said Victor Smith, Indiana Secretary of Commerce. "The Ports of Indiana helps businesses boost their logistics skills through direct rail -to -barge capabilities, strategically located at the crossroads of America. Companies can transport goods to their clients more efficiently here, making Indiana a state that works." "We are very excited by the opportunity to locate to Jeffersonville, and feel that Indiana's central location serves as an outstanding complement to our existing steel service center processing locations of Grand Rapids, Michigan, Melvindale (Detroit), Michigan, and Birmingham, Alabama," said David Samrick, CEO of Mill Steel Co. "Indiana's right to work law, simplified regulatory environment and low tax rates also make it very attractive for the continued growth of our business. We felt it was absolutely critical to position ourselves at a location that will enable us to continue our delivery of outstanding just in time services to our growing automotive, construction, appliance and general manufacturing customer base." -more- The Indiana Economic Development Corporation is offering Mill Steel Co. up to $300,000 in conditional tax credits and up to $100,000 in training grants based on the company's job -creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. "This latest announcement is a testament to the many advantages the City of Jeffersonville, as well as the Port of Indiana -Jeffersonville, offer a company's bottom line. We are thrilled Mill Steel chose to leverage Jeffersonville's locale to serve its growing market and to establish their future in Southern Indiana," said Jeffersonville Mayor Mike Moore. Indiana's three ports are foreign trade zones, helping companies ship about 70 million tons and $1.89 billion in cargo through the state by water each year. Directly linked to the Great Lakes and the St. Lawrence Seaway through Lake Michigan and the Inland Waterway System through the Ohio River, more than half of Indiana's border is water. The Port of Indiana -Jeffersonville is the fastest growing port on the Inland Waterway System. "We are delighted Mill Steel has chosen Southern Indiana to expand their footprint," said Wendy Dant Chesser, President and CEO of 1 si. "This will enable them to continue to serve some of the world's most dynamic industries, right here in Jeffersonville, Ind." Mill Steel, which currently employs approximately 200 associates, plans to begin hiring for positions this month. Interested applicants may apply (through the company's website www.millsteel.com) About One Southern Indiana: One Southern Indiana (Isi) was formed in July of 2006 as the Chamber of Commerce and Economic Development organization serving Clark and Floyd Counties. Isi's mission is to provide the connections, resources and services that help businesses innovate and thrive in the Southern Indiana/Louisville metro area. Since its inception, the organization has evolved to include a three prong approach to serve its members and investors. Business Resources, as the chamber side of the organization, encompasses membership, signature events and programs which support and encourage business growth; Economic Development works to grow the regional economy through the attraction of new commerce and assists with retention and expansion of existing businesses; Advocacy supports businesses at the government level by engaging in initiatives to preserve, protect and promote a business friendly environment free of obstacles to growth and development of commerce. About Mill Steel Founded in 1959, Mill Steel is one of North America's premier flat -rolled steel suppliers. Serving some of the world's most demanding industries; the business has grown over the past 50 years. Mill Steel continues to grow by sticking to its founding principles: Reliability. Accountability. And doing what they say they will, and then some. We've organized our company around those values, investing in new technologies and markets along the way. For more information about Mill Steel, visit www.millsteel.com.