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HomeMy WebLinkAbout2003-R-14RESOLUTION 2003-R-/~ RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, O.B. & E. RUBBER CO. has petitioned the Common Council of the City of Jeffersonville, Indiana, for a deduction in personal property taxes to be assessed on proposed new manufacturing equipment to be used in, and in real property taxes to be assessed on proposed improvements to be made on 2997 Industrial Parkway, property located in the area commonly known as the Jeffersonville Industrial Park, in the City of Jeffersonville, Clark County, Indiana; and, WHEREAS, O.B. & E. RUBBER CO. has submitted an application which includes the Statement of Benefits on the form prescribed by the Indiana State Board of Tax Commissioners for such purpose, which application and statement include a description of the proposed redevelopment, an estimate of the number of individuals who will be employed as a result of the redevelopment, an estimate of the annual salaries of these individuals, and an estimate of the value of the redevelopment, attached hereto as "Exhibit A"; and, , WHEREAS, the Common CounCil of the City of Jeffersonville designated the area where the proposed redevelopment project is located in the City of Jeffersonville as an Economic Development Target Area pursuant to Indiana Code 6-1.1-12.1 et seq., specifically lC 6-1.1-12.1-7; and WHEREAS, the City's Department of Redevelopment has reviewed the application and Statement of Benefits submitted by the Applicant and has advised the Common Council that the application has been submitted in compliance with the approved Tax Abatement Policy of the Common Council of the City of Jeffersonville. 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 of the value of the redevelopment is reasonable for projects of the nature described in the Statementlof Benefits submitted by the Applicant. 2. That the estimate of the number of individuals who will be employed or whose employment will be retained can reasonably be expected to result from the proposed described redevelopment. 3. That the estimate of the annuaI salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment. 4. That all other information requested from the Applicant has been submitted, and the benefits described in such information can be reasonably expected to result from the proposed described redevelopment. 5. That the totality of benefits for said redevelopment is sufficient to justify the deduction. BE IT FURTHER RESOLVED, that the Common Council of the City of Jeffersonville hereby approves the application and Statement of Benefits as presented and filed by the Applicant, shall be entitled to deductions for a period of TEN (10) YEARS for improvements to real property, pursuant to provisions of I.C. 6-1.1-12.1-3(d) and I.C. 6-1 .I- 12.1-49(d)(3), with the timely filing and perfection thereof with the Clark County Auditor's office. This Ordinance shall be in full force and effect from and after its passage and approval. Passed this ATTEST: Pegg¢~ Clerk and Treasurer day of ,~ ,2~03. ' ho?.s R..G.. ,, Presented by me as Clerk and Treasurer to the Mayor of said City of Jeffersonville this % day of ~, 2003. Peggy ¢¢i18~e r Clerk and Treasurer This Ordinance app'roved and signed by~is ~ da ,2003. R. Gal r ·  STATEMENT OF BENEFITS I FORM state Form 27167 (RS / 11-95) sa - 1 Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1969 INSTRUCTIONS: 1. This statement must be submitted to the body designating the economic revitilization area pdor to the pub c hearing if the designating body requires infor- mation from the applicant in making its decision about whether to designate an Econom c Revitalization Area. Otherwise this statement must be submitted to the designating body BEFORE a person installs the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. "Projects" planned or committed to after July 1, 1987 and areas designated after July 1, 1987 require a STATEMENT OF BENEFITS. (lC 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained pdor to initiation of the redevelopment or rehabilitation, or prior to installation of the new manufacturing equipment, BEFORE a deduction may be approved. 3. To obtain a deduction, Form 322 ERA, Real Estate ImprovemeRts and / or Form 322 ERA / PP, New Machinery, must be filed with the county auditor. With respect to reel property, Form 322 ERA must be filed by the later of: (I) May 10; or (2) thirty (30) days after a notice of increase in real property assessment is received from the township assessor. Form 322 ERA / PP must be filed between March I and May 15 of the assessment year in which new manufac- turing equipment becomes assessable, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March I and June 14 of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF- I annually to show compliance with the Statement of Benefits. (lC 6-1.1-12.1-5.6) Address of taxpayer (street and number, city, state and ZiP code) Name of comact person Telephone number Resolution number Nam~.o~,jCesignating ~ody/z , Location of prope~y ' __ ~ jCoun~ , / ~distriot Description of real prope~y improvements and / or ~ew manufa~uring equip e t ~ (use a ditional sheete if n~cessary) ~ ~ ~ ~/~, Sta~Date Comptetion Bate ~-- J New Mfg Equipment ~ ~y COST of the property is confidential. ~: ~ii~i :i::li!l~ ~ :~ Assessed Value Current values , - ",~· Plus estimated values of proposed project Less values of any property being replaced Net estimated vaIues upon completion of project Estimated solid waste converted (pounds) Other benefits: I hereby certify that the representations in this statement are true. ~/~.,,=~ ,~ Date S~ned (m~nth; day, year) 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 lC 6-1.1-12.1-2.5, pro- vides for the following limitations as authorized under lC 6-1.1-t2.1-2. A. The designated area has been limited to a period of time not to exceed calendar years * (see below). The date this designation expires is B. The type of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements; ~3' Ye s []No 2. Installation of new manufacturing equipment; [~"Ye s E3No 3. Residentially distressed areas [] Yes [] No C .The amount of deduction applicable for new manufacturing equipment is limited to $ cost with an assessed value of $ D .The amount of deduction applicable to redevelopment or rehabilitation is limited to $ cost with an assessed value of $ E. Other limitations or conditions (specify~ F. The deduction for new manufacturing equipment installed and first cla~med ehg~ble for deduchon after July 1, t991 ~s allowed for: [] 5years [] 1~yearsThededucti~nperl~dwi~Ibefive(5)yearsun~essthedesignatingb~dyhasbyres~luti~nspe~ifiedtheten(t~)yearped~d. Aisc we have reviewed the infor~ati0~,contained in the St~temen~ Of benefits and find that the estimates and expectations are reason: able and have determined that the totality of ber~efitS i~ sufficient to iustify the deduction described above;" Approved! (~ignature ahd'title Of aDthorized member) Telephone number Date signed (month day,,, ( ) Attested by: Designated body * If the designating;h(~dv___. limits the time period durib~ whibh an ares is an ..... ' ' economic rewtd~zat~on srea, ~t does not hm~t the length of t~me a taxpsyer is entitled to receive a deduction to a number of yeats designated u.~der lC 6-1.1 ;12.1-4 o( 4.5 Namely: (see tables below) 1st 100% 2nd 95% 3rd 80% 4th 65% 5th 50% ,; 6th 7th 8th ; 9th 10th Ten (10) Year Percentage 100% 95% 9O% 85% 80% 7O% 55% 4o% 3O% 25% Year of !~ Three (3) Year Six (6) Year Ten (10) Year Deduction , Deduction Ded.uct qn Deduction 1st 100% 100% 100% 2nd 66% 85% 95% 3rd 33% 66% 80% 4th 50% 65% 5th , . 34% 50% 6th 17% 40% 7th 30% · 20% 8th ~ 9th 10% t 0th 5% DEPARTMENT OF REDEVELOPMENT 812 - 285 - 6~06 office 812 - 285 - 6468 fax City-County Building 501 E. Court Avenue Jeffersonville, Iudiana 47130 Thomas R. Galligan Mayor i July 15, 2003 TO: Jeffersonville City Council FROM: Gayle H. Robinson, Director of Department of Redevelopment SUBJECT: OB&E Rubber Company Request For Tax Abatement th - As stated in the July 7 Counml Meeting, Nathan Endris, of OB&E Rubber Company has requested assistance from the CitY Council in the form of tax abatements. OB&E Rubber is moving their operation to 2997 Industrial Parkway, Jeffersonville. OB&E Rubber Company distributes and services industrial rubber products. They do modification to customer specification of conveyor belts and other applications. The Company will bring ten employees to the new Jef£ersonville location with additional employees planned for the near future. The projected investment is $760,000 ($200,000 in new manufacturing equipment and $560,000.00 in real estate improvements) by 2004. The number of employees is currently 10 with a yearly payroll of $513,000.00 The assistance OB&E Rubber Company requests is in the form of a ten year tax abatement on real estate improvements and new manufacturing machinery. An equal opportunity employer.