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HomeMy WebLinkAbout2016-R-8 POSCOBEFORE THE COMMON COUNCIL FOR THE CITY OF JEFFERSONVILLE, INDIANA RESOLUTION NO. 2016-R- g RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PROPOSED REAL PROPERTY AND PERSONAL PROPERTY TAX ABATEMENT WHEREAS, POSCO-AAPC, LLC petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in real property and personal property taxes to be assessed on a proposed development or redevelopment of property, including the construction and buildings and related improvements, to be generally located at 5146 Loop Road located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, POSCO-AAPC, 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 statement includes a description of the proposed development or redevelopment, an estimate of the number of individuals who will be employed as a result of the development or redevelopment, an estimate of the annual salaries of these individuals, and an estimate of the value of the development or redevelopment; and WHEREAS, the Common Council of the City of Jeffersonville has previously determined that the area in which the proposed development or 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 1 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 $7,600,000.00 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 $11,000,000.00 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 60 individuals who will be hired can reasonably be expected to result from the proposed described development or rehabilitation. 4. That the taxes lessened from the granting of this real property abatement shall be for improvements in real estate up to the value of $7,600,000.00. 5. That the taxes lessened from the granting of this personal property abatement shall be for improvements in personal property up to the value of $11,000,000.00. 6. That all other information requested from POSCO-AAPC, LLC has been submitted, and the benefits described in such information can be reasonably expected to result from the proposed described development or redevelopment. 7. That the totality of benefits for said development or redevelopment is sufficient to justify the deduction. 2 8. That POSCO-AAPC, 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 POSCO-AAPC, 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 of ect from and after its passage and approval. Passed this / $ day of , 2016. VKTE�FO VOTED AGAINST: VK IL Passed and adopted by the Common Council of the City of Jeffersonville, Clark County, Indiana on this / 8 day ofQ. o� i.Q , 2016. 41:4,,TF T: Vicki Conlin, Clerk 3 �' ' resident Presented by me as Clerk to the Mayor of said City of Jeffersonville this f day of CfcrIAS , 2016. This Resolution approved and signed by me this 2016. Vic i lin, Clerk Mike oore, Mayor This Resolution vetoed by me this day of , 2016. Mike Moore, Mayor 4 ATTACHMENT TO THE STATEMENT OF BENEFITS FOR POSCO-AAPC, LLC , 2016 The council will grant a 10 -year abatement on $7,600,000.00 in real property and a 5 - year abatement on $11,000,000.00 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. POSCO-AAPC, LLC By: Printed: Title: 5 STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R4 / 11-15) Prescribed by the Department of Local Government Finance INSTRUCTIONS i. 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 and/or research and development equipment, and/or logistical distribution equipment and/or information technology equipment for which the person wishes to claim a deduction. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation of qualifying abatable equipment for which the person desires to claim a deduction. 3. 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 January 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 January 1 and the extended due date of that year. 4. Property owners whose Statement of Benefits was approved, must submit Form CF-1/PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 5. For a Form SB-1/PP that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/PP that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. (IC 6-1.1-12.1-17) FORM SB -1 / PP PRIVACY NOTICE Any information concerning the cost of the property and specific salaries paid to individual employees by the property owner is confidential per IC 6-1,1-12.1-5.1. SECTION 1 TAXPAYER INFORMATION Name of taxpayer POSCO AAPC, LLC. Name of contact person Jini Oh Address of taxpayer (number and street, city, state, and ZIP code) 6500 Jefferson Metro Pkwy., McCaIIa, AL 35111 Telephone number ( 205 ) 277-2151 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (s) Location of property 5146 Loop Rd., Jeffersonville, IN 47130 County Clark DLGF taxing district number 10039 Description of manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment. (Use additional sheets if necessary.) 1 Pickling & Coating, 2 Heat Furnaces, 4 Drawing Machines, 8 Cranes and Hooks, 2 Forklifts, other Machines & Equipments ESTIMATED START DATE COMPLETION DATE Manufacturing Equipment 11/01/2016 04/26/2017 R & D Equipment Logist Dist Equipment IT Equipment 11/01/2016 04/26/2017 SECTION 3 Current number 0 SECTION 4 ESTIMATE OF Salaries 0 ESTIMATED EMPLOYEES AND SALARIES Number retained 0 TOTAL COST AND AS RESULT OF PROPOSED PROJECT Salaries Number additional 0 VALUE OF PROPOSED PROJECT 60 Salaries 3,756,480.00 NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING EQUIPMENT R & D EQUIPMENT LOGIST EQUIPMENT DIST IT EQUIPMENT COST of the property is confidential. COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED VALUE Current values 0 0 Plus estimated values of proposed project 10,500,000 500,000 Less values of any property being replaced 0 0 Net estimated values upon completion of project 10,500,000 500,000 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE Estimated solid waste converted (pounds) Estimated hazardous waste TAXPAYER converted (pounds) Other benefits: SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorize. _.....„:,'7,_e e Date signe (month, day, year) 1".:2 a%i Printed name of - hori.j 'representative Kyu Tae Kim Title Finance Director 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 6 calendar years * (see below). The date this designation expires is . NOTE: This question addresses whether the resolution contains an expiration date for the designated area. B The type of deduction that is allowed in the designated area is limited to: 1 . Installation of new manufacturing equipment; 2 . Installation of new research and development equipment; 3 . Installation of new logistical distribution equipment. 4 . Installation of new information technology equipment; LIYes 0 N i=1 Yes No ❑ Yes 12'No Yes ❑ No ❑ Enhanced Abatement per IC 6-1.1-12.1-18 Check box if an enhanced abatement was approved for one or more of these types. C. The amount of deduction applicable to new manufacturing equipment is limited to $ 10,50C)) OCO .00cost with an assessed value of $ 600iboo . QO . (One or both lines may be filled out to establish a limit, if desired.) D . The amount of deduction applicable to new research and development equipment is limited to $ A)) A cost with an assessed value of $ . (One or both lines may be filled out to establish a limit, if desired.) E . The amount of deduction applicable to new logistical distribution equipment is limited to $ rip r4 cost with an assessed value of $ /V\ 1 (4 . (One or both lines may be filled out to establish a limit, if desired.) F. The amount of deduction applicable to new information technology equipment is limited to $ 3�dD0.cost with an assessed value of $OEO OOO.O . (One or both lines may be filled out to establish a limit, if desired.) 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 is allowed for: ❑ Year 1 ❑ Year 6 ❑ Year 2 ❑ Year 7 ❑ Year 3 ❑ Year 8 ❑ Year4 XYear 5 El Year 9 ❑ Year 10 ❑ Enhanced Abatement per IC 6-1.1-12.1-18 Number of years approved: (Enter one to twenty (1-20) years; may not exceed twenty (20) years.) I. For a Statement of Benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ❑ Yes ❑ No If yes, attach a copy of the abatement schedule to this form. If no, the designating body is required to establish an abatement schedule before the deduction can be determined. 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. Approved by: ('.nature and titl:. authorized member of designating body) , �" �i�� rl►I!I Prin ed n: .or'.. -dr Telephone number Date signed (month, day, year) (8 i )5./J9 44•2r— 2O/, ber of designating body Att Lrnatur and titl of attester ee n Name of designating body S8PCSAnV►1 Cory+Mot\ Ciswdret` P�ri� ed name of attest Vitali ;only r If the designating body limits the tim period during which an area is an economic revitalization area, that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. IC 6-1.1-12.1-17 Abatement schedules Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten (10) years. (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS State Form 51767 (R6 / 10-14) 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): is Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4) ❑ Residentially distressed area (IC 6-1.1-12.1-4.1) INSTRUCTIONS: 20 PAY 20_ Name of taxpayer POSCO AAPC, LLC. FORM SB -1 / Real Property PRIVACY NOTICE Any information concerning the cost of the property and specific salaries paid to individual employees by the property owner is confidential per IC 6-1.1-12.1-5.1. 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. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction, a Form 322/RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is made or not later than thirty (30) days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year. 4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction is applicable. IC 6-1.1-12.1-5.1(b) 5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. IC 6-1.1-12.1-17 SECTION 1 TAXPAYER INFORMATION Name of taxpayer POSCO AAPC, LLC. Address of taxpayer (number and street, city, state, and ZIP code) 6500 Jefferson Metro Pkwy., McCalla, AL 35111 Name of contact person Telephone number Jini Oh ( 205 ) 277-2151 E-mail address joh@poscoaapc.com Resolution number SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Location of property 5146 Loop Rd. Jeffersonville, IN 47130 County Clark DLGF taxing district number 10039 Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) New Wire Rod Processing Center Estimated start date (month, 04/27/2016 day, year) Estimated completion date 01/31/2017 (month, day, year) SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED Salaries $0.00 VALUE OF PROPOSED PROJECT REAL PROJECT Number additional 60.00 ESTATE IMPROVEMENTS Salaries $3,756,480.00 Current number 0.00 SECTION 4 Salaries $0.00 ESTIMATED Number retained 0.00 TOTAL COST AND COST ASSESSED VALUE Current values o.00 Plus estimated values of proposed project 7,600,000.00 Less values of any property being replaced o.00 Net estimated values upon completion of project 7,600,000.00 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representa %--,. 4' Date signeds(month, day, year) 1 1r 'rCyr+( Printed name of authorized repres vative Kyu Tae Kim Title Finance Director Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted 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 expires is . or to be adopted by this body. Said / t' calendar years* (see resolution, passed or to be passed below). The date this designation to: Yes ❑ No B. The type of deduction that is allowed in the designated area is limited 1. Redevelopment or rehabilitation of real estate improvements 2. Residentially distressed areas C. The amount of the deduction applicable is limited to $ 7 400 0O0.G1P • Yes g No D. Other limitations or conditions (specify) E. Number of years allowed: ❑ Year 1 ❑ Year 2 ❑ Year 3 0 Year 4 Year 5 (* see below) ❑ Year 6 ❑ Year 7 ❑ Year 8 0 Year 9 .. Year 10 F. For a statement of benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? Yes 0N I yes, attach a copy of the abatement schedule to this form. If no, the designating body is required to establish an abatement schedule before the deduction can be determined. 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 ign. ure and title of authorized member of designating body) iL=iiia I'd =; Telephone number .5-6 4 or) Date signed (month, day, year) Printed n. e . •J,it.;. ember of designating body m r• �encE Name of designating body n - .3-6-117.-Sonu%Ile Common �-OU/7Ci'`L Atte ed y ignature a title of 4J_ Prin d name of attester/ 1G ( "Onii. * If the designating body limits the time pe d during which an area is an economic revitalization area, that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1, 2013, the deductions established in IC 6-1.1-12.1-4.1 remain in effect. The deduction period may not exceed five (5) years. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten (10) years. (See IC 6-1.1-12.1-17 below.) B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1-12.1-17 below.) IC 6-1.1-12.1-17 Abatement schedules Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten (10) years. (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 BEFORE THE JEFFERSONVILLE REDEVELOPMENT COMMISSION STATE OF INDIANA A RESOLUTION RECOMMENDING TO THE COMMON COUNCIL APPLICATION FOR REAL PROPERTY AND PERSONAL PROPERTY TAX ABATEMENT FOR POSCO-AAPC, LLC RESOLUTION NO. 2016-R- q WHEREAS, POSCO-AAPC, LLC has made application for real property and personal property tax abatement from the City of Jeffersonville, Indiana; WHEREAS, the Common Council is the designating body for approving such applications; WHEREAS, said applications require 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 applications for tax abatement for POSCO-AAPC, LLC Adopted at a meeting of the Jeffersonville Redevelopment Commission held the �� day of ►.1ar� , 2016. JEFFERSONVILLE REDEVELOPMENT COMMISSION 1/2961557.1 GUIDELINES AND PRINCIPLES FOR CONSIDERATION OF PROPERTY TAX PHASE-IN (TAX ABATEMENT) IN JEFFERSONVILLE, INDIANA The City of Jeffersonville, within Clark County, Indiana, welcomes and encourages business growth and economic development. City officials strive to work in a collaborative manner with representatives and agencies of the State of Indiana, members of the business and civic community, and other partners to attract new companies and retain existing ones. The City of Jeffersonville values providing an environment in which businesses and residents may thrive and prosper. Property tax abatement is authorized under Indiana Code 6-1.1 1-12.1 et seq in the form of deductions from assessed valuation. Any company or project requesting tax abatement(s) from the City of Jeffersonville must meet all criteria under the law. The City of Jeffersonville is guided by 10 principle beliefs, or factors, concerning economic development and business growth, and they are provided below for review by prospective tax abatement applicants. These principles are among the considerations the city council bears in mind as it evaluates requests for tax abatement; the responses companies provide to the city regarding these factors assist the city council in determining the length and scale of any abatement it may grant: 1. Firms receiving tax abatement are expected to give local construction firms and local suppliers of goods and services opportunities to do business whenever possible. 2. Firms that create a technology-based product or service or use advanced technology in manufacturing will be given a higher priority. 3. The number of jobs retained and/or created per dollar of investment will be an important consideration. 4. The level of wages and benefits will be a highly important consideration for all applications. 5. Projects that will require variances, special exceptions and/or exemptions will require additional review. 6. Adverse environmental impacts will negatively affect the consideration of abatement. 7. Any need for additional public infrastructure or other additional public support for the project will be considered in determining the length and scale of the abatement. Support of additional infrastructure will be considered as a local incentive to the applicant. 8. The time period of depreciation of equipment will be considered in the length of and scale of any abatement for personal property (equipment, machinery). 9. In the event the Economic Revitalization Area (ERA) is terminated because the property is removed from the city, the city council may require the company to repay the city all or a portion of the personal property tax savings the company realized as a result of the ERA designation. 10. A limited tax abatement may be considered in a Tax Increment Finance (TIF) District. In addition, the city council may deviate from these 10 principles and grant more or less tax abatement for longer or shorter periods of time (but not to exceed 10 years) on a case-by-case basis, as long as all requirements of Indiana law are met. The city council may, in its sole discretion, determine that certain projects should not receive any tax abatement, no matter the outcome using the schedules outlined in this document. Page 1 of 9 Effective as of 10-26-15 "EXHIBIT A" GUIDELINES FOR CONSIDERATION OF PROPERTY TAX ABATEMENT JEFFERSONVILLE, INDIANA Projects will be considered for abatement only if: 1. The company/project meets all of the criteria set forth under I.C. 6-1.1 1-12.1 et seq in the form of deductions from assessed valuation. 2. The proposed new investment includes at least $1 million of real property and/or personal property that qualifies for tax abatement. 3. Construction has not begun and/or equipment has not been ordered or the equipment will be new to the State of Indiana. 4. In addition, if the applicant is not the company, authorization of the application must be obtained from the company. TAX ABATEMENT APPLICATION SCORE SHEET Applicant Name: Jini Oh(Jang) City, State, ZIP: Application Date: 1 03/18/2016 Company: POSCO-AAPC, LLC Street Address: 6500 Jefferson Metro Parkway City, State, ZIP: McCalla, AL 35111 Phone: 205-277-2151 � ioh@poscoaapc.com Company Name: (if different from applicant): Street Address: City, State, ZIP: Website: Street Address of Project Location: 5146 Loop Rd City, State, ZIP: Jeffersonville, IN 47130 Project Description: Wire Rod Processing Center. This Project will be a joint Venture with POSCO America and JP Steel. Page 2of9 Effective as of 10-26-15 PROJECT COMPOSITION: (6 points possible). If more the scenario with the highest point value. than one scenario applies, use only POINTS POINTS Personal Property Improvements Existing Facility — expanding or upgrading existing product line 2 Real Property Improvements 10 4 Personal Property and Real Property Improvements New Research & Development Facility 6 New Corporate Regional Office or Headquarters Building SCORE New Industrial (manufacturing), Warehousing or Logistics Facility 6 ACTIVITY DETAIL: (18 points possible). If more than one scenario scenario with the highest point value. applies, use only the POINTS Existing Facility — new office addition 6 Existing Facility — expanding or upgrading existing product line 8 Existing Facility — adding new product line 10 Existing Facility—addition of manufacturing/warehousing space 12 New Research & Development Facility 14 New Corporate Regional Office or Headquarters Building 16 New Industrial (manufacturing), Warehousing or Logistics Facility 18 SCORE 18 EXISTING VACANT STRUCTURE: (15 points possible). Will this project reactivate a facility that has been vacant for at least 12 months? Location will NOT reactivate a vacant facility Location WILL reactivate a vacant facility SCORE POINTS 0 15 0 PROJECT CAPITAL INVESTMENT: (20 points possible). What is the total capital investment for this project? Use only the applicable scenario with the highest point value. POINTS $1 million — $4,999,999 10 $5 million — $9,999,999 15 $10 million or more 20 SCORE 20 Page 3 of 9 Effective as of 10-26-15 JOB RETENTION: (14 points possible), How many full-time result of this project? Use only the applicable scenario with positions will be retained cis a the highest point value. scenario with the highest POINTS 1— 9 retained jobs 2 10 —19 retained jobs 4 20 — 29 retained jobs 6 30 — 49 retained jobs 8 50 — 99 retained jobs 20 — 29 new jobs 10 100 — 499 retained jobs 12 500 or more retained jobs 14 50-99 new jobs SCORE 0 NEW JOB CREATION: (14 points possible). created as a result of this project? Use point value. How many net new full-time positions will be only the applicable scenario with the highest POINTS 2 times current minimum wage POINTS 1-9 new jobs 2 10 —19 new jobs 4 20 — 29 new jobs 6 30 — 49 new jobs 8 50-99 new jobs 10 100 — 499 new jobs 12 500 or more retained jobs SCORE 14 SCORE 10 AVERAGE WAGE: (14 points possible). Utilizing the average positions for this project and using the current state minimum does the average wage of this project compare to the current the applicable scenario with the highest point value. wage of all full-time wage as a benchmark, how minimum wage? Use only POINTS 2 times current minimum wage 2 2.5 times current minimum wage 4 3 times current minimum wage 6 3.5 times current minimum wage 8 4 times current minimum wage 10 4.5 times current minimum wage 12 5 times current minimum wage (or higher) 14 SCORE 4 Page 4 of 9 Effective as of 10-26-15 EMPLOYER-SPONSORED HEALTH AND WELLNESS BENEFITS: (5 points possible). Will the company provide employer-sponsored health and wellness benefits at this location? of your employees' total scenario with the POINTS Location will NOT provide employer-sponsored health and wellness benefits at this location 0 Location WILL provide employer-sponsored health and wellness benefits at this location 5 SCORE 5 5 WORKPLACE WELLNESS: (5 points possible). Will the company encourage and promote workplace wellness through employee participation in exercise and healthy living programs? of your employees' total scenario with the POINTS POINTS Company will NOT promote workplace wellness through employee participation in exercise and healthy living programs 0 0 Company WILL promote workplace wellness through employee participation in exercise and healthy living programs 5 5 SCORE 5 0 EMPLOYER-SPONSORED RETIREMENT PLAN: (5 points possible). Will the company provide an employer-sponsored retirement plan at this location? of your employees' total scenario with the POINTS Company will NOT provide an employer-sponsored retirement plan at this location POINTS 0 Company WILL provide an employer-sponsored retirement plan at this location 0 5 SCORE 2 5 BENEFI KAGE: (8 points possible). What percentage compensation package are fringe benefits? Use only the applicable of your employees' total scenario with the highest point value. POINTS 0% 0 1-10% 2 11-15% 4 16-20% 6 21— 30% or higher 8 (Health 70%; 401K match 3%) SCORE 8 Page 5 of 9 Effective as of 10-26-15 DIVERSITY: (7 points possible). Will the company have a diversity and inclusion policy in effect at this location? Please provide a description of all green technologies to be utilized at this location here: POINTS Company will NOT have a diversity and inclusion policy at this location 0 Company WILL have a diversity and inclusion policy at this location 7 SCORE 7 GREEN TECHNOLOGY: (7 points possible). Will the company utilize green technology at this location? Please provide a description of all green technologies to be utilized at this location here: POINTS Company will NOT utilize green technology at this location 0 Company WILL utilize green technology at this location 7 SCORE 0 GREEN INITIATIVES AND SUSTAINABILITY ACTIVITIES: (7 points possible). Will the company implement programs designed to support sustainability through employee ride sharing, public transportation use, on -campus dining options or other initiatives? Please provide a description of all green initiative programs to be utilized at this location here: POINTS Location will NOT implement green initiative programs 0 Location WILL utilize green initiative programs 7 SCORE 0 Page 6 of 9 Effective as of 10-26-15 COMMUNITY INVOLVEMENT: (20 points possible). The City of Jeffersonville will look favorably on companies that are involved in the community. The city will consider past and/or current community involvement of an existing company or proposed community involvement of a new company. Community involvement may include projects associated with the city, schools, local non-profit organizations, senior citizens, disadvantaged individuals or groups, day cares, etc. Community involvement must be documented and applicable documents attached to this Score Sheet. Please provide a narrative of community involvement here: Location will NOT be supporting projects associated with the city, schools, local non-profit organizations, senior citizens, disadvantaged individuals or groups, day cares, etc. Location WILL be supporting projects associated with the city, schools, local non-profit organizations, senior citizens, disadvantaged individuals or groups, day cares, etc. SCORE POINTS 0 20 20 TOTAL PROJECT SCORE: Please add all above scores together and provide the total below TOTAL OF ALL ABOVE SCORES 103 SIGNATURES Signature of Applicant: ",N --ji,ibio 17,"i / i Date: 03/18/2016 i`% %e ‘liii Print Name: } C., T.ar - Signature of Company Representative: (if different from applicant): --ji,ibio 17,"i / i d 0 6I2 --W Print Name: i`% %e ‘liii Page 7 of 9 Effective as of 10-26-15 GUIDELINE FOR REAL PROPERTY TAX ABATEMENT TOTAL SCORE Abatement Year Abatement Percentage 1— 9 1 100% 10 — 19 1 100% 2 75% 20 — 29 1 100% 2 75% 30 — 39 3 1 25% 100% 2 75% 3 50% 4 25% 40 — 49 1 100% 2 100% 3 75% 4 50% 5 25% 50-59 1 100% 2 100% 3 80% 4 60% 5 40% 20% p6 60-69 y, a ... _.. 1 100% 2 100% 3 90% a 80% 5 60% 6 40% 7 20% 70 — 79 1 100% 2 100% 3 90% 4 80% 5 70% 6 60% 7 40% 8 20% 80 — 89 1 100% il 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% $ 40% Page 8 of 9 Effective as of 10-26-15 9 20% 90-99 1 100% 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% 8 40% 9 30% 10 20% 100+ 1 100% 2 100% 3 95% 4 90% 5 80% 6 70% 7 60% 8 50% 9 40% 10 20% GUIDELINE FOR PERSONAL PROPERTY TAX ABATEMENT TOTAL SCORE 1-39 Abatement Year Abatement Percentage 1 100% 40 — 59 100% 50% 60 — 79 2 3 100% 50% 40% 80 — 90 1 100% 2 50% 3 40% 20% 90+ 100% 2 50% 3 40% 4 20% 10% Page 9 of 9 Effective as of 10-26-15 HOOSIERENERGY EcDEmmic Indiana Tax Abatement Results • Clark County, Jeff City -Utica Twp-Ofw • Tax Rate (2015): 3.1848 • Project Name: Project Bolts Real Property: $7,600,000.00 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 With Abatement Without Abatement Abatement Circuit Percentage Property Breaker Taxes Tax Credit Net Property Taxes Property Taxes Circuit Breaker Tax Credit Estimated Tax Net Property Abatement Taxes Savings 100% $ 0.00 $0.00 $0.00 $242.045.00 ($14,045.00) $228,000.00 $228.000.00 100% $ 0.00 $0.00 $0.00 $242,045.00 ($14,045.00) $228,000.00 $228.000.00 90% $ 24.204.00 50.00 $24.204.00 $242.045.00 ($14,045.00) $228.000.00 $203.796.00 80% $ 48,409.00 $0.00 $48.409.00 $242,045.00 414,045.00) 5228.000.00 $179,591.00 70% $ 72.613.00 $0.00 $72,613.00 $242,045.00 414.045.00) 5228,000.00 $155,387.00 60% $96,818.00 $0.00 596,818.00 $242,045.00 414.045.00) $228,000.00 $131,182.00 Year? 50% 121,022.$ 00 $0.00 $121,022.00 $242.045.00 ($14,045.00) 5228,000.00 5106.978.00 $ Year 8 40% 145,227.00 50.00 $145,227.00 $242,045,00 ($14,045.00) 5228,000.00 $82,773.00 Year 9 30% $ $0.00 $169,431.00 $242.045.00 414,045.00) $228,000.00 $58,569.00 169.431.00 Year 10 20% $ $0.00 $193,636.00 $242,045.00 414.045.00) 5228.000.00 $34,364.00 193,636.00 Totals $871,360.00 $0.00 $871,360.00 $2,420,450.00 4140.450.00) $2,280,000.00 $1,408,640.00 Personal Property: $11,000,000.00 Year 1 Year 2 Year 3 Year 4 Year 5 Totals Disclosures With Abatement Abatement Circuit Percentage Property Breaker Taxes Tax Credit Net Property Taxes Property Taxes Without Abatement Circuit Net Breaker Property Tax Credit Taxes Estimated Tax Abatement Savings 100% $0.00 $0.00 $0.00 $140,131.00 ($8,131,00) $132,000.00 $132.000.00 50% $98,092.00 $0.00 $98,092.00 $196,184.00 ($11,384.00) $184,800.00 $86,708.00 40% $88,283.00 $0.00 $88,283.00 $147.138.00 ($8.538.00) $138,600.00 $50,317.00 20% $89.684.00 $0.00 $89.684.00 $112.105.00 ($6,505.00) $105,600.00 $15,916.00 10% $94,589.00 $0.00 $94.589.00 $105.098.00 ($6,098.00) $99,000.00 $4,411.00 $370.648.00 $0.00 $370,648.00 $700,656.00 ($40.656.00) $660,000.00 $289.352.00 • The abatement calculations were prepared by Umbaugh, a financial consulting firm, in conjunction with Hoosier Energy, based on current Stale statute. This calculation is intended to provide an ILLUSTRATIVE and PRELIMINARY indication of the level of property taxes and potential tax savings for a proposed investment based on certain assumptions. Please read the Disclosures carefully. • Companies rnust consult their own tax advisors to determine their actual tax liability and to prepare their annual Indiana tax filings. • To be eligible to receive property tax abatements in Indiana, a Company rnust follow a specific application process. Please contact your Hoosier Energy representative for further guidance. • Assumes pay 2014 property tax rates, as provided by the Department of Local Government Finance. • Actual assessed value of a structure will be determined by the local Assessor. This value may be materially different from value provided for this estimate. • Real property in Indiana is subject to annual adjustments of assessed value to the market value of the structure based on annual sales data ("Trending"). • All personal property (equipment) is assumed to be new. and is assumed to be depreciated in Pool #2 (5-8 year depreciable life). A mixture of new and existing equipment (as well as a mixture of depreciation pools) will produce different tax savings results. • Assumes a one-time investment in real and personal property. Staggering the investments may have a material effect on the actual value of tax abatements. • Includes the calculation of Minimum Value Ratio (MVR) for tax abatement of personal property which effectively increases the assessed value used in the abatement calculation when the taxpayer is subject to the 30% floor. The MVR equals the adjusted assessed value at the 30% floor divided by the depreciated assessed value of the equipment. • Includes the application of the Circuit Breaker Tax Credit. which limits the total property tax liability of a taxpayer to 3.00% of the gross assessed value of commercial industrial real and depreciable personal property. • The tax abatement savings value is an ESTIMATE based on preliminary information entered into this calculator. Actual abatement savings niay differ materially from the results of this calculator, based on the timing of the investment. actual assessment of structures, differences in the depreciation pools for personal property. annual changes in tax rates. adoption of a local option income tax for property tax relief purposes. changes to Indiana property tax law or regulations, or changes in assessment methodology. • • The results of this calculator should be treated as an ESTIMATE available for illustrative purposes only, and should be treated as an estimate when discussing, negotiating and offering incentives; and should be noted as such in memoranda and legal docurnents related thereto. Hoosier Energy's Tax Abatement Estimator was developed with the assistance of Umbaugh. Hoosier Energy Economic Development (A division of «r, 9 2501 South Cooperative Way PO Box 908 Bloomington. Inciana 47402-0908 t. 812.876-0294 9 812-876-5030 p harold@hoosiersites.com © 2014 Hoosier Energy Rural Electric Cooperative. lr . This institution is an eco opportunity provider and employer.