HomeMy WebLinkAbout2019-R-7 Tax Abatement BEFORE THE COMMON COUNCIL
FOR THE CITY OF JEFFERSONVILLE, INDIANA
RESOLUTION NO. 2019-R-
RESOLUTION APPROVING STATEMENT OF BENEFIT FOR
PROPOSED REAL PROPERTY & PERSONAL PROPERTY TAX ABATEMENT
WHEREAS, CE Hughes Milling, Inc. 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 of property, including the construction of new buildings and
related improvements and the purchase of new milling equipment used in the production process,
to be generally located at 3113 Holmans Lane located in the City of Jeffersonville, Clark County,
Indiana; and
WHEREAS, CE Hughes Milling, Inc. 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 and investment,
an estimate of the number of individuals who will be retained as a result of the development and
investment, an estimate of the salaries of these individuals, an estimate of the number of
individuals who will be employed as a result of the development and investment, an estimate of
the annual salaries of these individuals, and an estimate of the value of the development; and
WHEREAS, the Common Council of the City of Jeffersonville has previously
determined that the area in which the proposed development 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 for real and personal
property; and
0 6/ 9 eR .
WHEREAS,the Common Council of the City of Jeffersonville 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.
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 CE Hughes Milling, Inc., and that said company shall be
entitled to deduction for a period of TEN (10) years for improvements to real property and
a period of FIVE (5) years for improvements to 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 and Clark County Assessor's office. This Resolution shall be in full force and
effect from and after its passage and approval. Passed this I day of l�cc4 , 2019.
[signature page to follow]
e; D - e : VOTED AGAINST:
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Passed and adopted by the Common Council of the City of Jeffersonville, Clark County,
Indiana on this I day oele,J..,6- , 2019. /
Presi t, Ed Zastawny
A es : LL_____
Vicki Conlin, Clerk
as/q k �--
Presented by me as Clerk to the Mayor of said City of Jeffersonville this , day of
, 2019.
Vicki Conlin, Clerk
This Resolution approved and signed by me this day of , 19.
Mike Moore, Mayor
This Resolution vetoed by me this day of , 2019.
Mike Moore, Mayor
NOW, THEREFORE, BE IT RESOLVED,by the Common Council of the City of
Jeffersonville, Indiana, that it specifically and affirmatively finds as follows:
1. That the estimate value of the qualifying real estate improvement of$500,000 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
$2,900,000 is reasonable for projects of the nature described in the Statement of
Benefits submitted by the company.
3. That the effective "start date"of the deduction period began on May 29, 2019,
following approval from the Redevelopment Commission of the City of
Jeffersonville.
4. That the abatement schedule is justified and prescribed by the Tax Abatement Score
Sheet attached as "Exhibit A"to Ordinance No. 2015-OR-56.
5. That the estimate of the number of 26 individuals to be retained at the project site can
reasonably be expected to result from the proposed described development and
investment.
6. That the estimate of the annual salaries of the 26 individuals who will be retained at
the project site can reasonably be expected to result from the proposed described
development and investment.
7. That the estimate of the number of 4 new individuals to be employed at the project
site can reasonably be expected to result from the proposed described development
and investment.
8. That the estimate of the annual salaries of the 4 new individuals who will be
employed at the project site can reasonably be expected to result from the proposed
described redevelopment and rehabilitation.
9. That the taxes lessened from the granting of this abatement shall be for improvements
in real estate up to the value of$500,000 and improvements in personal property up
to the value of$2,900,000.
10. That all other information requested from CE Hughes Milling, Inc. has been
submitted, and the benefits described in such information can be reasonably expected
to result from the proposed described development and investment.
11. That the totality of benefits for said development and investment is sufficient to
justify the deduction.
12. That CE Hughes Milling, 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 I.C. 6-1.1-12.1-14.
ATTACHMENT TO THE STATEMENT OF BENEFITS
FOR CE HUGHES MILLING, INC.
, 2019
The Council will grant a 10-year abatement on $500,000 in real property and$2,900,000 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.
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. The Company understands 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.
CE HUGHES MILLING, INC.
By: ?CY'.5I \•—
Printed:
Caroline E. Hughes
Title:
President
CE*HUGHES
• ►• !•
• .•
May 24,2019
Mr. Rob Waiz
City of Jeffersonville
Department of Economic Development&Redevelopment
City Hall,Suite 257, 500 Quartermaster Court
Jeffersonville,IN 47130
Dear Mr. Waiz:
Thank you for your time and encouragement during recent discussions regarding CE Hughes Milling Inc.'s
proposed investment and expansion in Jeffersonville. Our business has experienced tremendous growth
since its inception in 2012,and our success over the past few years has led us to this point today.
CE Hughes Milling Inc. is prepared to firmly plant its roots in the City of Jeffersonville, purchasing the
land and building it has been renting for the past 7 years. In addition, we are looking to acquire over $3
million in new equipment, construct a new building on site to store equipment, and add new employees.
CE Hughes Milling Inc. competes in Indiana and surrounding states for milling work. Our business is
certified as a Disadvantaged Business Enterprise by the Indiana Department of Transportation and a
Woman-owned Business Enterprise by the Indiana Department of Administration. We currently have 26
high-paid/high-skilled employees,and we are in a position to add 4 more.
In support of our proposed investment and growth plans, CE Hughes Milling Inc. is seeking the City of
Jeffersonville's consideration of our request for real and personal property tax abatements. In our
submission package we have included the SB-1 RE, SB-1 PP and the abatement scoresheet as found in the
City's Ordinance 2015-OR-56.A brief summary of our project appears below:
• Retention of 26 skilled employees with annual payrolls in excess of$1.7 million
• Addition of 4 new skilled employees with hourly wages ranging from $20/hr. to as high as
$41.90/hr.
• Acquisition of current site(approximately 4 acres and 6,600 sq.ft. of building space)
• Construction of a new 5,000 sq. ft. warehouse building estimated at$500,000
• Purchase of approximately $2.9M in new milling machines and an additional $395,000 in.
specialized transport equipment
I want to thank you in advance for your consideration of our abatement request. CE Hughes Milling Inc.
appreciates the City's support and partnership in bringing this project to fruition.Please let me know if you,
the Redevelopment Commission or any City Council members have any questions related to this request.
Sincerely,
Caroline E.Hughes
President&Owner
CE Hughes Milling,Inc.
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: Caroline Hughes g I Application Date: I May 24, 2019
Company: CE Hughes Milling, Inc.
Street Address: 3113 Holmans Lane
City,State,ZIP: Jeffersonville, IN,47130
Phone: 812-725-8665
Email: 1caroline@hughesmilling.com
Company Name:
(if different from applicant): See Above
Street Address:
4 City,State,ZIP: 1111
Website:
Street Address of Project Location: 3113 Holmans Lane
City,State,ZIP: Jeffersonville, IN,47130
Project Description: ICE Hughes Milling,Inc.is a pavement milling company that has been in business
since 2012.This project ent?its_the purchase of its currently leased facility and land off Holmans Lane in
Jeffersonville,as well as a physical expansion through a_$500,000 investment in a new 5,000 sq.ft.
building,a$2.9 million investment in 4 new milling machines,the retention of 26 full-time and the
addition of 4 new highly skilled employee positions.CE Hughes Milling, Inc.works throughout Indiana and
surrounding states aiding in the repair of roadways, interstates, bridges,airports and parking lots. In 2013
the Company was certified by INDOT as a Disadvantaged Business Enterprise, and also by the IDOA as a
Woman-owned Business Enterprise.The Company has experienced substantial growth during the previous
years,and is looking to purchase property, build a building to store milling equipment,grow its
employment,and permanently establish its roots in the City of Jeffersonville.
Page 1 of 8 Effective as of 10-26-15
PROJECT COMPOSITION: (6 points possible). if more than one scenario applies, use only
the scenario with the highest point value.
POINTS
Personal Property Improvements 2
Real Property Improvements 4
Personal Property and Real Property Improvements 6
SCORE 6
ACTIVITY DETAIL: (18 points possible). If more than one scenario applies, use only the
scenario with the highest point value.
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 and
warehousing space 12
New Industrial (manufacturing),Warehousing or Logistics
Facility 14
New Corporate Regional Office or Headquarters Building 16
New Research&Development Facility 18
SCORE 14
EXISTING VACANT STRUCTURE: (15 points possible). Will this project reactivate a facility
that has been vacant for at least 12 months?
POINTS
Location will NOT reactivate a vacant facility 0
Location WILL reactivate a vacant facility 15
SCORE 0
PROJECT CAPITAL INVESTMENT: (25 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—$19,999,999 20
$20 million or more 25
SCORE 10
Page 2 of 8
Effective as of 10-26-15
JOB RETENTION: (18 points possible). How many full-time positions will be retained as a
result of this project? Use only the applicable scenario with the highest point value.
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 10
100—249 retained jobs 14
250—499 retained jobs 16
500 or more retained jobs 18
SCORE 6
NEW JOB CREATION: (18 points possible). How many net new full-time positions will be
created as a result of this project? Use only the applicable scenario with the highest
point value.
POINTS
1—9 new jobs 2
10—19 new jobs 4
20—29 new jobs 6
30-49newjobs 8
50—99 new jobs 10
100—249 new jobs 14
250—499 new jobs 16
500 or more new jobs 18
SCORE 2
AVERAGE WAGE: (18 points possible). Utilizing the average wage of all full-time
positions for this project and using the current state minimum wage as a benchmark, how
does the average wage of this project compare to the current minimum wage? Use only
the applicable scenario with the highest point value.
POINTS
Less than 3 times current minimum wage 0
3 times current minimum wage 10
3.5 times current minimum wage 12
4 times current minimum wage 14
4.5 times current minimum wage 16
5 times current minimum wage(or higher) 18
SCORE 18
Page 3 of 8 Effective as of 10-26-15
i4
EMPLOYER-SPONSORED HEALTH AND WELLNESS BENEFITS: (5 points possible). Will the
company provide employer-sponsored health and wellness benefits at this location?
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
l,.
WORKPLACE WELLNESS: (5 points possible). Will the company encourage and promote
workplace wellness through employee participation in exercise and healthy living
programs?
POINTS
Company will NOT promote workplace wellness through
employee participation in exercise and healthy living 0
programs
Company WILL promote workplace wellness through
employee participation in exercise and healthy living 5
programs
SCORE 0
EMPLOYER-SPONSORED RETIREMENT PLAN: (5 points possible). Will the company
provide an employer-sponsored retirement plan at this location?
POINTS
Company will NOT provide an employer-sponsored
retirement plan at this location 0
Company WILL provide an employer-sponsored
retirement plan at this location 5
SCORE 0
BENEFITS PACKAGE: (8 points possible). What percentage of your employees'total
compensation package are fringe benefits? Use only the applicable scenario with the
highest point value.
POINTS
0% 0
1—10% 2
11-15% 4
16-20% 6
21—30%or higher 8
SCORE 8
Page 4 of 8 Effective as of 10-26-15
DIVERSITY: (7 points possible). Will the company have a diversity and inclusion policy in
effect at this location?
POINTS
Company will NOT have a diversity and inclusion policy at 0
this location
Company WILL have a diversity and inclusion policy at this 7
location
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 0
location
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:
Milling is inherently sustainable, as our machines grind asphalt and concrete that is reused
and recycled in current and future projects. POINTS
Location will NOT implement green initiative programs 0
Location WILL utilize green initiative programs 7
SCORE 7
Page 5 of 8 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%
3 25%
30—39 1 100%
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%
6 20%
60—69 1 100%
2 100%
3 90%
4 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%
2 100%
3 90%
4 80%
5 70%
6 60%
7 50%
8 40%
9 20%
Page 7 of 8 Effective as of 10-26-15
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 Abatement Year Abatement Percentage
1—39 1 100%
40—59 1 100%
2 50%
60—79 1 100%
2 50%
3 40%
80—90 1 100%
2 50%
3 40%
4 20%
90+ 1 100%
2 50%
3 40%
4 20%
5 10%
Page 8 of 8 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: Company sponsors a variety of
non-profits(equine therapy,churches,veterans programs,Hosparus,and cancer research),school programs,
youth athletic teams,and other community events annually. POINTS
Location will NOT be supporting projects associated with
the city, schools, local non-profit organizations,senior
citizens, disadvantaged individuals or groups, day cares, 0
etc.
Location WILL be supporting projects associated with the
city, schools, local non-profit organizations,senior
citizens, disadvantaged individuals or groups,day cares, 20
etc.
SCORE 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: 1 Date: May 24, 2019
l OJwd,'J.
Print Name: Caroline Hughes
Signature of Company
Representative: Date:
(if different from applicant):
Print Name:
Page 6 of 8 Effective as of 10-26-15
Abatement Savings Estimate Exhibit
Indiana Tax Abatement Results
Clark County,Jeff City OFW
Tax Rate(18 Pay 19): 1 3.4660%1
_ -s(RE):
Improvements(RE): $500,000
Yea! Abatement Property Taxes w/ Property Taxes w/o Estimated Tax Abatement
Percentage Abatement Abatement Savings
Year_ 1C0% 'C.CC= 517,33C.00 $17,330.0C
Year 2 100% $0.0C $17,330.00 $17,330.00
Year 3 95% S866.50 $17,330.00 $16,463.50
Year 4 90% $1,733.00 S17,330.00 $15,597.00
Year 5 '_ % $3,466.00 $17,330.00 $13,864.00
Year 6 7C% $5,199.0C $17,330.00 $12,131.00
Year 7 60% $6,932.0C $17,330.00 $10,398.00
Year 8 50% $8,665.00 $17,330.00 $8,665.00
Year 9 40% S10,398.00 $17,330.00 $6,932.00
_ •-- - , =- - $17,33C. :' S3,456.00
Totals $51,123.50 $173,300,00 $122,176.50
Indiana Tax Abatement Results
Clark County,Jeff City OFW
Tax Rate(18 Pay 19): I 3.46603b1
Improvements(PP): $2,900,000
Yea, Aoatement Property Taxes w/ Property Taxes w/o Estimated Tax Abatement
Percentage Abatement Abatement Savings
Year 1 1C0°_ $C.0C 540,205.6C $40,205.6C
Year 2 5C% $28,143.92 $56,287.84 $28,143.92
Year 3 40% $25,329.53 $42,215.88 $16,886.35
Year 4 20% $25,731.58 $32,164.48 $6,432.90
Year= 10?_ $27,138.78 S30,154.20 53,0015.42
Totals $106,343.81 $201,028.00 $94,684.19
Abatement Schedule Exhibit
Real Property
Year Abatement Percentage
1 100% exempt
2 100% exempt
3 95% exempt
4 90% exempt
5 80% exempt
6 70% exempt
7 60% exempt
8 50% exempt
9 40% exempt
10 20% exempt
11 First year of full property tax payment
Personal Property
Year Abatement Percentage
1 100% exempt
2 50% exempt
3 40% exempt
4 20% exempt
5 10% exempt
6 First year of full property tax payment
% -1- 4:. STATEMENT OF BENEFITS
1 -• '_ c REAL ESTATE IMPROVEMENTS 20 20 PAY zo 21
`,4 State Form 51767(R6/10-14) FORM SB-1 1 Real Property
Tijs�. Prescribed by the Department of Local Government Finance PRIVACY NOTICE
is statement is being completed for real property that qualifies under the following Indiana Code(check one box)' Any information concerning the cost
0 9
Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) of the property and specific salaries
Residentially distressed area(IC 6-1.1-12.1-4.1) paid to individual employees by the
property owner is confidential per
INSTRUCTIONS: C 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-i/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 S8-1/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 S&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
N.1IImeoftaxpayer CE Hughes Milling, Inc.
Adpressof taxpayer(number and street,city state,and ZIP code) 3113 Holmans Lane, Jeffersonville, Indiana, 47130
Nalre of contact person Caroline Hughes Telephone number E-mail address
( 812 )725-8665 caroline@hughesmilling.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
City of Jeffersonville Common Council 2019-R-
Location of property County DLGF taxing
district number
I 010
Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year)
Following significant business growth over the previous several years,a new 5,000 sq.ft.facility will be constructed November 1,2019
t 'store existing milling equipment,as well as up to four new milling machines and specialized transport equipment,
Fisting job retention and new job creation will accompany the capital investment to remain competitive.Additionally, Estimated completion date(mourn,day,year)
CE Hu•hes intends to•urchase the land and real•ro•e it is current) leasin•at the•ro'ect site. May 1,2020
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Cu =nt number Salaries Number retained Salaries Number additional Salaries
26 $1,779,000 26 $1,779,000 4 $209,995
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values $186,500
Plus estimated values of proposed project $500,000 S500,000
Less values of any property being replaced
Net estimated values upon completion of project $500,000 $686,500
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Ffstimated solid waste converted(pounds) Estimated hazardous waste converted(pounds)
Ot' r benefits
SECTION 6 TAXPAYER CERTIFICATION
II hereby certify that the representations in this statement are true
Signature of authorized representative^ r presaL,,,,___
Date signed(month,day,year)(DJ 5-24-2019
Printed name of authorized representative Title
Caroline Hughes President/Owner
Page 1 of 2
a...- ;.,__,.. . �_ - __.. .s rL 1451XT lii-QF THE L1E,SterO ill.[ BO4,i" _ ,
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A. The designat d are has been limited to a period of time not to exceed I O calendar years*(see below). The date this designation
expires is of Oc t
B. The type of deduction that is allowed in the designated area is limited to:
1.Redevelopment or rehabilitation of real estate improvements lat Yes 0 No
2.Residentially distressed areas 0 Yes ❑No
C. The amount of the deduction applicable is limited to$ 660 On CD ,.o7
,
D. Other limitations or conditions(specify)
E. Number of years allowed: 0 Year 1 0 Year 2 ❑Year 3 0 Year 4 Year 5 (*see below)
❑Year 6 ❑Year 7 ❑Year 8 ❑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 0No
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.
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 suffic' nt to justify the deduction described above.
Approv (si re and le o�,(.rfho' d' ber of designating body) Telephone number Date signed(month,day,year)
,[�►( (pia.)a 3'5-Cy isia.? '2-1- 1 ?
Printed ame authorized member o esignating bo7 Name of designating body nf�
EdtrA4Rd Z>�s-4-4tcepA Tre-Pre D n {— .� C I C P� tejS0n0/ //e.
Attestei�'lly(signature an title of attester) y �� m Q r U r f
i t O
7J 1..,L. (�iJ, (J Printed name of `ester
i'If the designating body limits the time 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.
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
Abatement Savings Estimate Exhibit
Indiana Tax Abatement Results
Clark County,Jeff City ocw
Tax Rate(18 Pay 1n 3. 1
Improvements(RE):
improvements RE: $500,00O
Year Abatement Property Taxes'.v/ Property Taxes w/o Estimated Tax Abatement
Percentage Abatement Abatement Savings
Year 1 1C0% $0 0C 317,330.0C $17,330.00
Year 2 1C0% $0.0C $17,33C.00 $17,33C_00
Year 3 95% 3866.30 $17,33C.00 $16,463.5C
Year4 9C% $1,733.0C $17,33C.0C $15,597.00
Year 5 8C% $3,466.0C 317;330.00 $13,864.00
Year 6 7C% $5,199.0C $17,33O.00 $12,131_0O
Year 7 6C% $6,9310C $17,33O.0C $10,398..00
Year3 5C% $8.565.00 $17;330.00 $3,665.00
Year 9 4C% S1C.398.0O $17,33C.00 $6,932.00
'Fear 10 20% $13,864.00 517,33C.00 $3,466 00
Totals S51,123,50 $173,300.00 $122,176.50
Indiana Tax Abatement Results
Clark County,Jeff City 0f N
Tax Rate(18 Pay 19i: 1 3.4660%1
Improvements PP): $2,900,00O
Year Abatement Property Taxes WI Property Taxes w/o Estimated Tax Abatement
Percentage Abatement Abatement Savings
Year 1 1CO% $C.00 $40,205.5C $40,205.6C
Year 2 5C% 328,.143.92 356.287.84 $25,143.92
Year 3 4C% 525,329.33 $42,215.88 $15.886.35
Year 4 2C% 325.731.58 $32,164.4'3 $6.432.90
Year 5 _0'0°J, $27,133.73 630,154.20 63,015.42
Totals $1O6,343.81 6201,028.00 $94,684.19
Abatement Schedule Exhibit
Real Property
Year Abatement Percentage
1 100% exempt
2 100% exempt
3 95% exempt
4 90% exempt
5 80% exempt
6 70% exempt
7 60% exempt
8 50% exempt
9 40% exempt
10 20% exempt
11 First year of full property tax payment
Personal Property
Year Abatement Percentage
1 100% exempt
2 50% exempt
3 40% exempt
4 20% exempt
5 10% exempt
6 First year of full property tax payment
^� STATEMENT OF BENEFITS
ti-
PERSONAL PROPERTY
11 FORM SB-1 /PP
t .) State Form 51764(R4/11-15)
dY Prescribed by the Department of Local Government Finance PRIVACY NOTICE
e_a --
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.
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 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)
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer Name of contact person
CE Hughes Miffing, Inc. Caroline Hughes
Address of taxpayer(number and street,city state,and ZIP code) Telephone number
3113 Holmans Lane,Jeffersonville,IN,47130 ( 812 ) 725-8665
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number(a)
City of Jeffersonville Common Council 2019-R-
Location of property County DLGF taxing district number
3113 Holmans Lane,Jeffersonville Clark 010
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
Four new pavement milling machines, specifically two(2)Wirtgen W210, one Manufacturing Equipment 06/30/2019 04/30/2020
(1)Wirtgen W220, and one(1)Wirtgen W150. An additional investment will
be made in specialized transport equipment for these machines that are not R&D Equipment
eligible for abatement. Logist Dist Equipment
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries •
26 $1,779,000 26 $1,779,000 4 $209,995
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE:Pursuant to IC 6-1.1-12.1-5.1 (d)(2)the MANUFACTURING R&D EQUIPMENT LOGIST DIST IT EQUIPMENT
EQUIPMENT EQUIPMENT
COST of the property is confidential. COST ASSESSED COST ASSESSED ASSESSED
VALUE VALUE COST VALUE COST VALUE
ASSESSED
Current values 0
Plus estimated values of proposed project 2,900,000
Less values of any property being replaced _ 0
Net estimated values upon completion of project 2,900,000
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 autho i representative CRDate signed(month,day,year)
�`-�t Is.
5-24-2019
Printed name of authorized representative Title
Caroline Hughes President/Owner
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 y calendar years*(see below). The date this designation expires
is cil aR. . 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; ®Yes El No ❑ Enhanced Abatement per IC 6-1.1-12.1-18
2. Installation of new research and development equipment; ❑ Yes ErNo Check box if an enhanced abatement was
Ili-No
for one or more of these types.
I�
3. Installation of new logistical distribution equipment. ❑ Yes I�No
4 . Installation of new information technology equipment; ❑ Yes E'No
i) do
C.The amount of deduction applicable to new manufacturing equipment is limited to$ U(l )tom J 09.(9 ost with an assessed value of
$ . (One or both lines maybe filled out to establish a limit,if desired.)
D. The amount of deduction applicable to new research and development equipment is limited to$ 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$ cost with an assessed value of
$ . (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$ cost with an assessed value of
$ . (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:
CI Year 1 El Year 2 El Year 3 ❑ Year 4 Q Year 5 ❑ Enhanced Abatement per IC 6-1.1-12.1-18
Number of years approved:
❑ Year 6 El Year 7 ❑ Year 8 El Year 9 El Year 10 (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.
Ap o by:(siq' ture and ti of uthorized er of designating body) Telephone number Date signed(month,day,year)
( g)a )ags -LA-1g?
Printed name of authoriz d er of des ting ody Name of designating body !�
dici3 ii Z A(vrtc( Pres«Qe.n Cornrnon aurtc,/ Ci nvt // .
A ested by:(sig/jature and title of attestc(r) Printtsd name of at ster
Lai Loki ( 0
*If the designating body limits the time 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
Abatement Savings Estimate Exhibit
Indiana Tax Abatement Results
Clark County,Jeff City OFW
Tax Rate(18 Pay 19): 3,4660%I
Iripyavemer s(RE):
Improvements(RE): $500,000
Year Abatement Property Taxes w/ Property Taxes w/o Estimated Tax Abatement
Percentage Abatement Abatement Savings
Year 1 100% $0.00 517,330.00 $17,330.00
Year 2 100% $0.00. $17,330.00 $17,330.0C
Year 3 95% S866.50 $17,330.00 $16,463.50
Year 4 9C% .$1,733.00 $17,330.0C $15,597.00
Year 5 80% $3,466.00 S17,330.00 $13,864.00
Year6 70% $5,199.00 $17,330.00 $12,131.00
Year 7 60% $6,932.00 S17,33C.00 $10,398.00
Year 8 5C% $8,665.00 5'17,330.00 $8,665.00
Year 9 40% 310,398.00 $17;330.00 $6,932.00
Year 10 20% $13,864.00 S1',330.00 $3,466.00
Totals $51,123.50 $173,300.00 $122,176.50
Indiana Tax Abatement Results
Clark County,Jeff City OFW
Tax Rate(1S Pay 19): I 3.4660%j
Improvements(PP): $2,900,000
Year Abatement Property Taxes w/ Property Taxes w/o Estimated Tax Abatement
Percentage Abatement Abatement Savings
Year 1 1C0% $C.00 S40,205.60 $40,205.60
Year 2 50% S28,143.92 $566 287.84 $28,143.92
Year 3 4C% S25,329.53 $42,215.88 $15,886.35
Year 4 2C% $25,731.58 $32,164.48 $6,432.90
Year 5 10% $27,138.78 S30,154.20 S3,015.42
Totals $106,343.81 $201,028.00 $94,684.19
Abatement Schedule Exhibit
Real Property
Year Abatement Percentage
1 100% exempt
2 100% exempt
3 95% exempt
4 90% exempt
5 80% exempt
6 70% exempt
7 60% exempt
8 50% exempt
9 40% exempt
10 20% exempt
11 First year of full property tax payment
Personal Property
Year Abatement Percentage
1 100% exempt
2 50% exempt
3 40% exempt
4 20% exempt
5 10% exempt
6 First year of full property tax payment