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HomeMy WebLinkAbout2014-R-8BEFORE THE COMMON COUNCIL FOR THE CITY OF JEFFERSONVILLE, INDINAA RESOLUTION NO. 2014-R- 8` RESOLUTION APPROVING STATEMENT OF BENEFIT FOR PROPOSED REAL PROPERTY AND PERSONAL PROPERTY TAX ABATEMENT WHEREAS, Brinly-Hardy Co. 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 3230 Industrial Parkway located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, Brinly-Hardy Co., 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 $1,500,000.00 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 $3,150,000.00 is reasonable for projects of the nature described in the Statement of Benefits submitted by the company. 3. That the estimate of the number of 94 individuals who will be retained can reasonably be expected to result from the proposed described redevelopment or rehabilitation. 4. That the estimate of the annual salaries of 44 of those individuals who will be added can be reasonably expected to result from the proposed described redevelopment or rehabilitation. 5. That the taxes lessened from the granting of this abatement shall be for improvements in real estate up to the value of $ 1,500,000.00. 6. That the taxes lessened from the granting of this abatement shall be for improvements in personal property up to the value of $ 3,150,000.000. 7. That all other information requested from Brinly-Hardy Co. has been submitted, and the benefits described in such information can be reasonably expected to result from the proposed described redevelopment. 8. That the totality of benefits for said redevelopment is sufficient to justify the deduction. 9. That Brinly-Hardy Co. 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 Brinly-Hardy Co., 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 .Jr' day ofm_ , 2014. VOTED AGAINST: Passed and adopted by the Common Council of the City of Jeffersonville, Clark County, Indiana on this ,5 day of , 2014. A ST: .144t icki Conlin, Clerk lnnis Julius, Co cil President Presented by me as Clerk to the Mayor of said City of Jeffersonville this day of , 2014. This Resolution approved and signed by me this 2014. Vicki Conlin, Clerk Mik: Moore, Mayor This Resolution vetoed by me this / day of , 2014. Mike Moore, Mayor ATTACHMENT TO THE STATEMENT OF BENEFITS FOR BRINLY-HARDY CO. , 2014 The council will grant a 10 -year abatement on $ 1,500,000.00 in real property and a 5 - year abatement on $ 3,150,000.00 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. BRINLY-HARDY CO. By: Printed: Title: BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION STATE OF INDIANA A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL APPLICATION FOR TAX ABATEMENT FOR BRINLY-HARDY CO. RESOLUTION NO. 2014 -R - WHEREAS, Brinly-Hardy Co. 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 Brinly-Hardy Co. Adopted at a meeting of the Jeffersonville Redevelopment Commission held thea.' day of (kit ,\ , 2014. ATTEST: Secreta 1/2961557.1 JEFFERSONVILLE REDEVELOPMENT COMMISSION /- AZ4 Presidefit' REAL PROPERTY Year 1-100% Year 2 — 95% Year 3 — 80% Year4-65% Years -50% Year 6-40% Year 7 — 30% Year 8 — 20% Year 9-10% Year 10-5% Year 11— 0% ABATEMENT SCHEDULE EXHIBIT PERSONAL PROPERTY Year 1-100% Year 2 — 80% Year3-60% Year 4 — 40% Year 5 — 20% Year 6 — 0% MEDIA CONTACTS: Anne Keller One Southern Indiana Direct: 812-945-0266 Email: annek(a, l si.org Jennifer Thompson Brinly-Hardy Company Direct: 812-218-7207 Email: jthompsonAbrinlv.com EMBARGOED UNTIL APRIL 28, 2014, 12:00 P.M. EDT iie ntear n business resources advocacy Brinly-Hardy Company Considers Expansion in Jeffersonville Pending tax incentive approval, expanded facility will further cement commitment Jeffersonville, Ind. (April 28, 2014) — One Southern Indiana (1 si) and the City of Jeffersonville announce today the plan by the Brinly-Hardy Company to expand its operations in Southern Indiana. Brinly-Hardy, founded in 1839, designs, builds and distributes a range of lawn and garden equipment. Through the coordination of 1 si, Brinly-Hardy 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. Upon the approval of tax abatement by the Jeffersonville City Council, Brinly-Hardy could potentially invest $1,500,000 to improve its existing 240,000 square -foot facility and $3,525,000 to equip that facility. Should the project move forward, the company also looks to hire up to 44 new employees by 2015, to complement its current team, accounting for an estimated $2.1 million in additional annual payroll. "We've been so happy with our site here in Southern Indiana. We purchased the land and building in 2000 with plans to expand. Now is the time for us to do that. We are thrilled our growth demands it, especially in our 175th year of business," said Jane Hardy, Brinly-Hardy CEO. "I'm always happy to learn a good local employer feels the time is right to expand and strengthen its existing commitment to Jeffersonville," said City of Jeffersonville Mayor Mike Moore. "The decision by Brinly-Hardy to hire additional employees is exciting news for our community and bodes well for the future. I wish this company and all those who work there continued success." -more- "I am so happy that Brinly-Hardy is seeking to expand its production and workforce," said Wendy Dant Chesser, lsi president and CEO. "Ensuring that existing businesses in Clark and Floyd counties thrive and grow is at the heart of our business retention and expansion efforts at 1 si. We are a better community when a company with a long and successful history here determines its future lies in additional investment and commitment to its current facility and employees." About One Southern Indiana: One Southern Indiana (lsi) was formed in July of 2006 as the Chamber of Commerce and Economic Development organization serving Clark and Floyd Counties. lsi'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 Brinly-Hardy: Founded in 1839, Brinly-Hardy designs, builds and distributes lawn and garden equipment, from lawn aerators and dethatcher tractor attachments to utility carts and garden plows. A certified women's business enterprise, the company serves residential homeowners and the light-duty commercial lawn specialists across the nation through distributors, regional chain stores and large home improvement centers.