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HomeMy WebLinkAbout1999-R-21 A RESOLUTION NO. 99-R;~_ //~ A RESOLUTION APPROVING STATEMENT OF BENEFITS FOR PURPOSES OF PROPERTY TAX ABATEMENT WHEREAS, GREAT DANE POWER EQUIPMENT, INC. 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 BRIDGEPORT BUSINESS CENTRE, located in the City of Jeffersonville, Clark County, Indiana; and WHEREAS, GREAT DANE POWER EQUIPMENT, INC. 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 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; 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 97-R-10 and Confirming Resolution 97-R-14; 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: 1. 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. 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 or rehabilitation. 3. 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 said Applicant shall be entitled to deductions for a period of ten (10) years for improvements to real property, pursuant - to the provisions of I.C. 6-1.1-12.1-3(d) and I.C. 6-1.1-12.1-4(d)(3), and five (5) years for equipment and machinery pursuant to I.C. 6-1.1-12.1-4.5, with the timely filing and perfection thereof with the Clark County Auditor's office. Passed and adopted this ~"~ dayof ~~- , 199_.~_...n ( '~qon~as R. Galligar~ ( // Presiding Officer ATTEST: cC i eRr ikCah na rddCePaesn~reer~) Presented by me as Clerk a_~nd Tre. asurer to th.~, Mayor of said City of Jeffersonville this ~--! day of~, 199c¢. Clerk and Treasurer 2 STATEMENT OF BEN~EFITS (State Form 27167 (RS / 11'-95) l1 Form SB - I is prescribed by the Sta~e ~oard of Tax Commissioners, 1989 INSTRUCTIONS: 1. This statement must be submitted to the b~ly designating the economic revitilization area prfor to the public headng if the designating body n marion from the applicant in making its decision about whether to designate an Economic Revitslizarion Area. Otherwise this statement must to the desi natin bod BEFORE a person installs the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of rea which the ggperse~ wis~hYes to claim a deduction. "Projects" planned 8r committed to after July 1, 1987 and areas designated after July 1, 1~- STATEMENTOFBENEFITS. (IC6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to iniria~on of the redevelopment or ~ or prior to installation of the new manufacturing equipment, BEFORE a deduction may bo 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, 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 properO 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 n tufing equipment becomes aaseasable, unless a filing extension has been obtained. A person who obtains a filing extension must file the t March 1 and June 14 of that year. 4. Prol~erty owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF- I annually to show compliance with t of Benefits. (lC 6-1.1-12.1-5.6) Name of taxpayer GREAT DANE POWER EQUIPMENT~ INC. Address of tazpayer (street and number, city, sta~ and ZIP code) 305 SOUTH NEW ALBANY STREET PO BOX 104 SF, LI,gPSBURG~ IN 47172 Name of contact person Telephone number BRIAN MOORE ( 812 ) 246-8770 SB-1 I wuiras infor- ~e submitted proper~y for 97 require a ~habilitarion, ~udftor. With assessment ~,w manufac- )tm bo~wean ~e Statement ~~T Re~ Estate 7/99 12/19' New M'g /79 ,.1/o Current number Salades Number retaineci Number additional 17 $ 12.67/HOUR 17 $ 12.67/HOUR 24* ~' Asses ed Value ~,[~ ~! Assessed Value ~"l~<' :~'!' ~°:"~:~~'~*~ COST of the property is confidential. ~ ~ . Cu~em vaJues -0- $ 384 ~000.00 / Plus e~imat~ vCues of pro~s~ proje~ $ 1,818,765. Of $ 300,000.00 Less vCues of any pro~ ~ing replac~ -0- -0- Net e~imated values upon ~mpledon of proje~ ~ 1,818,765.0E $ 684,000. O0 ~tim~ solid w~te ~nve~ (pound) ~herbenefits: w YE~. [ 10['~E~ EMPLOYJ~ES YEAR 2 7 NEW EMPLOYEES YEAR 3 7 NEW EMPLOYEES Estimated hazardous waste COnverted (pounds) that the representations in this statement are true. '~tle Date signed (month, day, 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 hmitations as authorized under lC 6-1.1212.1-2. :'-'-~ ' 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; [] Yes [] No 2. installation of new manufacturing equipment; F"I Yes r'3 No 3. Residentially distressed areas [] Yes [] N o 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 inst~JIed and first claimed eligible for deduction after July 1, 1991 is allowed for: [] 5 years [] 10 years The deduction per[ed will be five (5) years unless the designating body has by resolution specified the ten (10) year peded. Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have determined that the totality of benefits is sufficient to justify the deduction described above. pprov,~: (signature and title of authorized member) Telephone number Date signed (month, day, year) Attected ~ /~ "',1 * Designated body · If the designating body limit~,~he time p~i~l dudng which an area is an economic revitilizstion area, it does not limit the length of time a 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 tables below) Deduction 1 st 2nd 3rd Five (5) Year Percentage 100% 7th 95% 80% Ten (1 O) Year Percentage 100% 95% 1st 100% 100% 100% 55% 2nd 66% 85% 95% 3rd 66% 7th 80% 90% 33% 4th 65% 85% 4th 50% 65% 5th 50% 80% 5th 34% 50% 6th 70% 6th 17% 40% 3O% 8th 40% 8th 20% 9th 30% 9th 10% 10th 25% 10th 5% O0~xxx <<<<<<<<< Ill 0000000000 m oooooooooo0 O00000 O000 0000000000 0000000000~ 0000000000 0000000000 bbbbbbbbbb~ June 15,1999 Executive Director (812) 285-6406 Dear Councilperson: The enclosed statement of benefit form for Great Dane, Inc. represents the quickest economic development project in which the Department of Redevelopment has been involved in the last three years. Greg Fitzleff introduced us to this company on May 24th and the company is considering relocating in Jeffersonville if tax abatement is granted. The Company will locate in the Bridgeport Industrial Park (between the Maritime Centre and Northport) which you recently designated as a target area for economic development. Axmann recently broke ground in this park. The company is owned by a Wisconsin resident who has extraordinary success nationally as an inventor and businessman. Great Dane's products are described inan attached brochure. We have found the company to be of extremely high reputation for quality and success in their industry. The company has narrowed its choice of locations to Jeffersonville and a site in Wisconsin. I believe this company will be a great asset to Jeffersonville. Their true expectations are to employ 160 workers within three years but prefer to state the lowest number of new hires (24) on the SB1. I have also found their computation of wages to be conservative. Ten year and five year abatements are being requested for building and machinery respectively. The amount of abatement per job is $5,521 compared to $8,000 per the Council's guidelines making the amount of abatement to job ratio quite favorable. I am quite impressed with the enthusiasm, youth and ability of their management and have no doubt they haVe much to contribute to Jeffersonville's future growth and prosperity. Sincerely, hm Philil;L~V. McCauley Executive Director 501 E. Court Avenue · Jeffersonville, Indiana 47130 · Fax (812) 285-6468 Southern Indiana Chamber of Commerce "SERWNG CLARK AND FLOYD COUNTIES" 4100 Chaflestown Road NewAIban~ IN 47150-9538 Phone: ¢12) ~ ,tax: (812) 948 Jtme I0, I999 Vicki Conlin President, Common Council City of Jeffersonville 501 E. Court Avenue Jeffersonville, IN 47130 Dear Council President Conlin; The Southern Indiana Chamber of Commerce would like to support the tax abatement request of Great Dane Power Equipment, Inc. Great Dane is a rapidly growing company in our area which is considering making a significant investment in Jeffersonville. We believe this is an exciting opportunity for Jeffersonville. We would like to address several issues which may be of significance to your consideration of this request: I) 2) 3) Great Dane has completely outgown their current facility. Their lease is ending shortly and they will not be renewing it. They wish to build their own building and have land for future expansion. They cannot do either at their current location. Great Dane has expressed an interest in doing this project in either Jeffersonville or in Wisconsin. The firm's owner lives in Wisconsin, which means we could easily lose this firm. As part of the ability to buiId a new facility Great Dane will be adding a significant number of new jobs to Southern Indiana. This project will mean net newjobs to our region. The average wage for Great Dane is also higher than the Clark County average. We believe this is a good project and will add to the economic base of Jeffersonville. It also aIlows us to retain jobs and a company which may otherwise leave the State of Indiana. We hope that you will give this project your most positive consideration. Sincerely, President 45-0286 4684