HomeMy WebLinkAbout1999-R-18RESOLUTION NO. 99-R-/~
A RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTY TAX ABATEMENT
WHEREAS, USF HOLLAND has petitioned the Common Council of the City
of Jeffersonville, Indiana, for a deduction in real property and personal property taxes
to be assessed on proposed improvements to be made and equipment in the
KEYSTONE BUSINESS CENTRE, located in the City of Jeffersonville, Clark County,
Indiana; and
WHEREAS, USF HOLLAND has submitted a Statement of Benefits on the
form prescribed by the Indiana State Board of Tax Commissioners for such purpose,
which statement includes a description of the proposed redevelopment, an estimate
of the number of individuals who ~ill be employed as a result of the redevelopment,
an estimate of the annual salades~of these individuals, and an estimate of the value
of the redevelopment; and
WHEREAS, the Common Council of the City of Jeffersonville has previously
determined that the area in which the proposed redevelopment project is located in
the City of Jeffersonville qualifies as an economic revitalization area pursuant to
Indiana Code 6-1.1-12.1 et seq., and Resolution 99-R-09 and Confirming Resolution
99-R-13; and
WHEREAS, the Common Council has reviewed the Statement of Benefits
submitted herein, and attaches and incorporates that Statement to this Resolution;
NOW THEREFORE, BE IT HEREBY RESOLVED by the Common Council of
the City of Jeffersonville, Indiana, that it specifically and affirmatively finds as follows:
That the estimate of the value of the redevelopment or rehabilitation is
reasonable for projects of the nature described in the Statement of Benefits
submitted by the developer.
2. . ~at the estimate of the number of individuals who will be employed or whose
~'!~mployment will be retained can reasonably be expected to result from the
proposed described redevelopment or rehabilitation.
That the estimate of the annual 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 or rehabilitation.
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.
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, Indiana, hereby approves the application and Statement of Benefits as
presented and filed by the Applicant, and that s.~ai~ Applicant shall be entitled to
deductions for a p~e~~.~(L5) ~e~lr~"~~_~ ~pmperty, pursuant
to the provisions~'d~.~ 6-1 A-12.1-3(d),with the timely filing ~nd-~)erfection thereof
with the Clark County Auditor's office.
~',~_day of .h~,~y ,199~.
Passed and adOpted this
~'~TTfiomas R. G~lli~n/~
Presiding Officer
ATTEST:
C. Ri~;'hard Spencer,/~r. ~// ~'
Clerk and Treasure~/
Presented by me as Clerk and Treasurer to the Mayor of said City of
Jeffersonville this ~ day of /~.~J~ ,199_~_.
C. ,iR(chard Spencer, Jr/
Clel~k and Treasurer
Approved and signed by me this __~ay of )/~ ,199~.
2
STATEMENT OF BENEFITS
StYe Form 27167 (R3/11-91 )
FORM
SB-1
INSTRUCTIONS:
1. This statement must be submitted to the body designating the economic revitalizaa%~n~?~a prior to the ~ubli~ h~aring if the
designating body required ~nfor~t~en from the applicant m making its demslon ab~e~ter to deskqnate an
Economic
Revltahzati~n Area. Othe~se this statement must be submitted to ~he designating ff~dy BEFORE a person ~nstalls the new
manufacturing equipment, or BEFORE the redevelopment or rehabilitation of ~e'aleproperty for which ~he peFson wishes to claim a
deduction. A statement of benefits is not required if the area was designated an ERA prior to July 1, i987 and the "project" was
planned and committed to by the applicant, and approved by ~he designating body, prior to ~hat d~ite. "Projects" planned or
committed to after July 1, 1987 and areas designated after Ju~y 1, 1987 require a STA'rEMENT OF BENEFITS. (IC 6-1.1
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior 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 Improvements and/or Form 322 ERA/PP, New Machinery, must be filed
with the county auditor. W~ respect to real property, Form 322 ERA must be filed by the later of (1) 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 flied
between March 1 and May 15 of the assessment year in which new manufacturing equipment is installed, unless a filing extension
has been obtained. A person who obtains a filing extension must file the form between Ma~ch I and June 14 of that year.
4. Property owners whose Statement of Benef'Rs was approved after July 1, 1991 must submit Form CF-1 annually to show
compliance with the Statement of Benefits.
Name USF Holland
Address of taxpayer (street and number, city and ZIP code)
Name of contact person
Name of designating body City of Icffcrsonvillc City Council
Location ot property Jeffersonville, IN County Clark
Description of real property improvements and/or new manufacturing equipment to be acquired (use add/tional
Resolution number ~/~
Taxinfi district je ffersonvill¢
See attached description of building and equipment list, 1999
Estimated starting date June 1999
Estimated completion date December
Current values
Plus estimated values of proposed project
Less values of any property being replaced
1pon completion of project
$0
Real Estate lit ~rovements Machinery
Cost
$ 4,147,000
Assessed Value
$0
$ 280,000
$ 4,147,000 $ 280,000
Cost Assessed \
Attractive landscaping to support a nice presentation to the street.
Title -V.P. Finance day; year)
We have reviewed our prior actions relating to the designation of this economic revitalization area and fred the
application 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
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;
2. Installation of new manufacturing equipment;
3. Residentially distressed areas
C. The amount
deduction after July i, 1987, is limited to $
calendar' years~ (see
o Yes o No
o Yes o No
o Yes o No
cost with an assessed value of $
D. The amount of deduction applicable to redevelopment or rehabilitation in an area designated alter
i, 1988 is limited to $ costs with an assessed value ors
E. Other limitations or conditions (specify)
F. The deduction for new manufacturing equipment installed and first claimed eligible for deduction after
July 1, 1991 is allowed for: o 5 years o 10 years
Also we have reviewed the information contained in the statement of benefits and fred that the estimates and
expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction
described above.
nature and ti Date signed (month tear)
Attested
* If the designating body :luring which an area , it does not
taxpayer is entitled to receive a deduction to a number of years designated under lC 6-1.1-12.1-4 or 4.5 Namely: (see table below)
Year of
Deduction
1 st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
Five (5) Year
Percentage
10O%
95%
8O%
65%
50%
Ten (10) Year
Percentage
I OO%
95%
90%
85%
80%
70%
55%
40%
3O%
Year of
Deduction
1st
3rd
4th
6th
7th
8th
9th
1 F)th
Three O) Six (6)
Year Year
Deduction Deduction
100%
Section II continued
USF Holland - Jeffersonville Project
Description of real property improvements and/or new manufacturin§ equipment to be acquired
Building description:
A 29,340 square foot dock and 7,685 square foot building housing office, dock and interim warehou:
operations. The facility will be located on $21.48 acres.
Equipment list:
Item Cost ($)
Forklifts 280,000
TOTAL 280,000
FN1 - 170 Jobs will be relocating to Indiana from Kentucky. An additional 50 lobs are expected to
created within the first three years of operation of the facility.
lng
THE
May 18, 1999
Executive Director
(812) 285-6406
Veronica Conlin
Andrew Williams III
John Perkins
Ron Ellis
Donna M. Frantz
Peggy Wilder
Barbara Wilson
Dear Councilperson:
The City of Jeffersonville and Koetter Construction (the developer of
Keystone Industrial Park) have put enormous effort and time into this project for
over one year. USF Holland is a substantial company that pays high wages ($18.58
per hour) and will bring 220 jobs to Jeffersonville. Fifty of these jobs are new and
170 are existing jobs in Louisville that will be transferred to Jeffersonville.
The cost of abatement per job is among the lowest of those ever presented to
the Council. This is primarily because their equipment does not qualify for
abatement and because of the large number of jobs proposed to be brought to
Jeffersonville.
While tracking business is not on the list of industries we have attempted to
attract to Jeffersonville, the high wages and number of jobs enticed us to work with
USF Holland when they expressed interest in locating in Jeffersonville. The location
at Keystone will give their operation immediate access to the Interstate and,
therefore, not cause an undue burden on the City's streets and roads.
We ask that the Council consider granting a five year or 10 year abatement on
the real estate to entice USF Holland to locate their 220 jobs in Jeffersonville. A
representative of USF Holland will be available at the Council meeting to answer
any questions.
Thank you very much for your consideration.
Sincerely,
hm
Philip W. McCauley
Deputy Mayor
501 E. Court Avenue · Jeffersonville, Indiana 47130 · Fax (812) 285-6468
11:5t TELAMON + 812 285 6468
STATEMENT OF BENEFITS
NO.
I, This staternenf mu$~ be $ubmit~ed t~ the b~d~ de~igna~ing the ec~n~m/c r~w~ti~izaE~n areapri~r t~ the pub~ic ~e~dng if the des/§nating
marion from the applicant in making its decision about ~/hether to designate an Economic Revita/ization Area. Orherwiee this Stalemen
to the desigllatlng body BEFORE a person installs the new manutacfudng equ/pnlent, or BEFORE the redevelopment or rehabilitation
whlci~ the parse/~ wishes to claim a deduction. 'Projecls' plat~nsd or commi#ed lo afler July 1, 19E? and areas designated after Jut
STATEMENT OF BENEFIT$. (IC6-1.1-12,1)
2. App/r;val of [he designating body (City Council, Town Board, County Counoil, etc.) must be obtained prior to initiation of the redevelopm~
or pdor fo i~lstaflation of the new ¢lar~ufacturthg equipment, BEFORE a deduction may be approved.
3. To obtain a deduction, Form 322 ERA, Real Estate Improvements end/or Form .322 ERA / PP, New MachineO/, must bo filed with the c~
respect to rea~ prope~ty, Form 322 ERA must be filed by the taler of: (I) May 10; Or (2) thirty (30) days after a notice of increase in real pt
is received from the townahip asee$$o~ Form 322 ERA / PP must b@ filed between March I end May 15 of the esaasament year in w~
turing e~uipment becomes aases$.~bta, unless a filing extension has been obtained. A person who oPtains a fil~ng extension must file
March I and June 14 of that year.
4. Property o~me~ whose Statement of EJeneflte was approved alter June 30, 199 t rnusl submit Form CF- t annually to ahow compliance
of Benefits. (tC6-f.f.12. f-5,6)
USF Holland
Address of taxpayer ($~reet a¢d number, city, ~ta~ and ZIP code}
750 East 40th Street Holland, Michigan 49423
Name of contac1 parson Telephone number
D~ Prime, ConEroller C 616 ) 395-5(00
~02
JFORM
SB - 1
,dy requires inlOr-
~USt be aubrnilfed
~f real property for
t, 1987 require
,t or rehabilitation.
unly auditor, With
vith Ihe Statamenl
Name Ct designating body Resolution number I
City of Jeffersonville City Council 9~-R-/~ ' J
Loch§on bi p~pe~ County Tax;ne d;stdct ~ J
Jef ferso~..], le ~ IN Clark Jef ferson~l~e
]e~rlptlon of real prope~ improvements and / or new manufa~urlng equipment '" ESTIMAT~o '
~Se a~ilional ~heets if neces~) Sta~ Date. C~mp~e~;~n Data
See Attac~ent A Realestate April, 199~ ~to~r, ~p~
New M~g Equ;pment . ~ i ~
N/A N/A 174
NOTE: Pursuant to lC 6-1.1-12,1-$,1 (d} (2) the
CO:ST °f th' property is co~lidenflaL ~! ~,.~ i~ Assessed Value ~,~ ~ ~ ~ ~.,' '~i! As~ss~ Value
Cuffenf values N/A
Plus estimated values o~ p~sed proje~ 4,147,200
Less values of any pmpe~ being replaced ~/A
Net estimated values upon ~mple~on of projecl ~ ~ [~7 ~ 200
Estimated solid w~sle C~nverled (pounds) Estimaled hazardous waste convected (pounds)
Other banal;ts:
hereby certify that the representations in this statemen[ are true.
Dale signed {monlh, da year)
USF Holland Inc
Jeffersonville Project Profile Worksheet
Project: Construction of an 80 door 37,000 square foot facility on approximately 21
acres of land. The new facility will employ an e,,dsting 170 employees, which are being
relocated to Indiana from Kentucky and the addition orS0 new jobs.
Type of business: Freight and truc-king terminal
SIC code: 4200
Current number o f employees (company wide): 7,880(12/31/98)
Projected building
investment
Projected
machinery/equipment
Projected land investment
TOTALS
/999/2000
Purchase/Lease
$4,137,000 Purchase
$200,000 Purchase
$750,000 Purchase
$5,162,000
Employee Wa~_~ro f'ile
Category
Number of Existingand New Wage rate Benefit rate
................................................................................................... .~.CO.R!.~.~! .......................................................... I!~LH..L/. ..........................................
Office Staff 29 18.13 15
Dock 128 18.56 15
Workers/Local
Dryers
Line Haul Drivers 51 18.40 15
Account F-xecutlves 12 25.00 20
Totfls 220
Averags $18.58
W~Fifty (50) nexv employees will be distributed between office staff(-ll) and dock
workers/local drivers (~39).
~'NZWages will increase at negotiated intert, als
May 19, 1999
TAX ABATEMENT REVIEW
USF ItOLLAND
Keystone Business Centre
1. All information (petition, SB-1, filing fee, independent auditors report) has been submitted by
the Petitioner.
2. Conditions of policy are met, as Petitioner plans to build a new facility.
3. Project is located in an allocation area.
4. Project is located in an already established Economic Revitalization Area
5. Project is located in an Economic Development Target Area
Abatement Estimate:
Real Property ~4,147,2001 over ten - year period:
(Over ten-year period)
Value of Abatement Per Job Created:
$ 486,166
$ 2,794
Tax Received After Abatement:
$ 495,987
A 10-year deduction for real property improvements SHOULD be allowed based
following:
on the
Petitioner plans to bring 220 jobs to je~~:F~,.~¢.,new and 170 are existing jobs
that will transfer to Jefferso...n,..~ ~i~'~}~~i~,..8~ ($18.58 per hour). .
lam to make ~: ~i~i~'~ r~ ~;¢~'~ improvements..
Pet~tloner p ...... ~
This company will serve the entke US.
Petitioner has purchase Agreement with Keystone Business Centre which has been
approved for execution.
Petitioner will encourage additi¢~.o..wth for the Keystone Business Centre.
A royal of tax abatement is a ~! incentive for this company choosing to locate in
pp
Keystone Business Centre.
Company has a good history of minority hiring practices.
0 o
STATEMENT OF BENEFITS
state Form 27167 (R3/11-91 )
Fonm SB-I is mescribed by the State Board of Tax Commissioners, 1989
The records in this sedes are CONFIDENTIAL according to lC 64.1 -35-9
FORN
SB-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 required informali,~n 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, or BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a
deduction. A statement of benefits is not required if the area was designated an ERA pdor to July 1, 1987 and the "project" was
planned and comm~ed to by the applica~, and approved by the designating body, prior to that date. "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 pdor to installation of the new manufacturing equipment, BEFORE a deduction may be approved.
3. To obtain a deduction, Form 322 ERA, Real Estate Improvements and/or Form 322 ERNPP, New Machinery, must be tiled
with the county auditor. With respect to real properly, Form 322 ERA must be filed by the later of (1) May 10; or (2) th[dy (30) days
after a notice of increase in mai propedy assessment is received from the township assessor. Form 322 ERNPP must be tiled
between March 1 and May 15 of the assessment year in which new manufasturing equipment is installed, unless a tiling extension
has been obtained. A pemon who obtains a filing extension must file the form between March 1 and June 14 of that year.
4. Property owners whose Statement of Benefrts was approved after July 1, 1991 must submit Form CF-I annually to show
(lC 6-1,1-12.1-5.6)
Name USF Holland
Name of contac[ person
Name of designating body City of [cffersonville City Council
Locatlono~propert,/ Jeffersonville, IN Count,/ Clark
Description of real property improvements and/or new manufadudng equipment to be acquired (useadd&bna/
See attached description of building and equipment list.
Current number Salades
NA NA
Number retained Salades $
NA NA
Real Estate improvements
Resolution number ~ ~ r~ t/~
T~n9 distriCtjeffersonville
Estimated startin§ date June 1999
Estimated completion date December
Number additional Salaries $ (wi1
170 (+50)FN! $8,700,000
Machinery
Cost Assessed Value Cost Assessed \ alue
Current values $0 $0
Plus estimated values of proposed project $ 4,147,000 $ 280,000
Less vatses of any property being replaced ............
Net estimate values upon completion of project $ 4,147,000 $ 280,000
Attractive landscaping to support a nice presentation to the street.
1999
lout fringe)
Title -V.P. Finance ~, day, year)
We have reviewed our prior actions relating to the designation of this economic revitalization area and find the
application meets the general standards adopted in the resolution previously approved by this body. Said
resolution, passed under IC 6-1. I-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 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; o Yes o No
2. Installation of new manufacturing equipment; o Yes o No
3. Residentially distressed areas o Yes o No
C. The amount of deduction applicable for new manufacturing equipment installed
deduction after July 1, 1987, is limited to $ cost with an assessed value ors
D. The amount of deduction applicable to redevelopment or rehabilitation in an area designated after
1, 1988 is limited to $ costs with an assessed value ors
E. Other limitations or conditions (spec~j?)
· F. The deduction for new manufacturing equipment installed and first claimed eligible for deduction after
July 1, 1991 is allowed for: o 5 years o I0 years
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.
*lf the designatin; b;dy limits the ~e per~u;g which an area is an economic revital;z{tion area, it do~ no( limit the length 0f tim~a
taxpayer is entitled to receive a dedu~ion to a number 0f years designat~ under IC~67 .l-I 2.1-4 or 4.5 ~Namely: (see table below)
Year of ~ Five (5) Year Ten (10) Year [Ye~ of Three (3) Six (6) Ten (1
Deduction Percentage Percentage ]Deduction Year Year Year
Deduction Deduction Deduction
2nd 95% 95%
3rd 80% 90% ] 3rd 33% 66%
4th 65~ 85%
5th 50% 80%
6th 70% / 6th 17%
7th 55%
Section II continued
USF Holland- Jeffersonville Project
Description of real property improvements and/or new manufacturin§ equipment to be acquired
Building descr/ption:
A 29,340 square foot dock and 7,685 square foot building housing office, dock and interim warehous
operations. The facility will be located on $21.48 acres.
Equipment list:
Item Cost ($)
Forklifts 280,000
TOTAL 280,000
FN1 - 170 Jobs will be relocating to Indiana from Kentucky. An additional 50 jobs are expected to ~c
created within the first three years of operation of the facility.
ag