HomeMy WebLinkAbout1998-R-21RESOLUTION NO. 98-R- ,2. /
A RESOLUTION APPROVING STATEMENT OF BENEFITS FOR
PURPOSES OF PROPERTYTAXABATEMENT
WHEREAS, Midwest Lumber and Dimension Co. 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 North Port Business Park, located in the City of Jeffersonville, Clark
County, Indiana; and
WHEREAS, Midwest Lumber and Dimension Co. 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:
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.
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.
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.
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.
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 five (5) 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 three (3)
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 ~_~ day of /:::~,~_ ,199__~.
Thomas R. (~alli'g~n (")
Presiding Officer ~
ATTEST:
Presented byme as Clerk and~'reasurer to th_e Mayor of said City of
Jeffersonville this,~' day of ..~-/'/_../.,? ,199~.
C. Richard Spence~Jr. ~"
Clerk and Treasurer
Approved and signed by me this ~ day of .,~ , ,199.4~_.
R. Ga
2
'i~ State Form 27167 'RS / 11-95} Sg ' 1
~'~' Form SB - 1 is prescribed by the State Board of Tax Commissioners 1989
iNSTRUCTIONS:
?. This statement must be submitted to the body designating ~he economic revitilizafion ar~a ~)ri~r t~ th~ public he,,ar, ing i~ the, c~esi~qafing .body r.e~q_ujreu~minifttoer~
mat/on from the applicant in making its decision about whether to designate an Economic Revttal/zabon ,~rea. (Jtnerwlse [nts staremen~ mus[ ue ~uom u~u
to the designating body BEFORE a person installs the new manufactur ng equipment or BEF~ORE the redevelopment or rehabilitation of real property for
which the person wishes to c/aim a deduction. "Projects" Planned or committed to after July'l, 1987 and areas designated after July 1. 1987 reouire a
STATEMENT OF BENEFITS. tiC 6-1. I-12. I)
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 odor 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 wtth the county auditor. With
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 propedy assessment
is received from the township assessor. Form 322 ERA / PP must be filed between March 1 and May 15 of the assessment year in which new manufac-
turing equipment becomes assessable, un/ess a firing extension has been obtained. A perso~ who obtains a filing extension must file the form between
March t and June Iz~ of that yeah
a Propertyowners whoseStatementofBenefitswasapprovedafterJune30. 1991mustsubmitFormCF- lannuallyrosnowcompliancewiththeStatement
of Benefits. qC 6-1.1-12.1-5.6l
Name of taxoayer
Midwest Lumber and Dimension Co.
Addressoftaxpayer~tre~andnumbenc~ s~andZlPc~e)
2000 Grant Line Rd., New Albany, IN 47150
Name of contact 3erson ~lephone number
David Davis 812 948-9900
Name of designating'l~ody, · ~ Resolution number
City of "3'effers~nville City Council' ? ' , ,.~ ..... q~ ~'"Z,I
Location o1 property County Taxing district
Cente~l Blvd. ~ Jeffersonville Clark Jeffer~onville
)escription of real property improvements and / or new manufacturing equipment ESTIMATED
'use additional sheets if necessary)
Start Date Completion Date
New office and warehouse building (23,500 sq. ft.) RealEstate
,b~lv 'qg Jan 'q9
Planer New Mfg Equipment Jan ' 99 Jan ' 99
No in Jet fersonville.
NOTE: Pursuant to lC 6-1.1-12.1-5.1 (d) (2) the ~ ~
COST of the property is confidential, ~i~i::i:!~i; ;~t ,~;~ ::::;~!i:: ?~ i Assessed Value ::!~!:~i:i~ii:::':.C~i~!i!:?i'~i?~i? Assessed Value
Plus estimated values of proposed project $ 640,000 $ 200 ~ 000
Net estimated values upon completion of project $ 640,000 $ 200,000
Estimated sohd waste converted ipounes~
Other benefits:
Estimated nazaroou5 waste converted aoundsl
~,W,,e, have reviewed our prior actions relating to the designation of this economic revitalizatio.,n area and find that the applicant meets the
o'.,~ersi standards adopted in the resolution previously approved by this body. Said resolution, passed under lC 6-1.1-12.1-2.5, pro-
~ides for the following limitations as authorized under lC 6-1.1-12.1-2.
A. The designated area has been limited to a period of time not to exceed
designation expires is
B The type of deduction that is allowed in the designated area is limited to:
I. Redevelopment or rehabilitation of real estate improvements;
2. installation of new manufacturing equipment;
3. Residentially distressed areas
~alendar years * (see below).. The date this
[] Yes [] N~o
[]Yes []No
[] yes [] No
C. The amount of deduction applicable for new manufacturing equipment is limited to $ cost with an assessed
va~ue 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"i~talled and first claimed eligible foe deduction after July 1, 1991 is allowed for:
[] 5 years [] 10 years The deduction period will be five {5) years unless the designating body has by resolution sPecified the ten (10) year pedod.
Aisc 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 ustify the deduction d~scribed above.
Approved; (signature and title of authorized member) Telephone number Date signed (month, day, year)
I Att~s ed by ~ ~ Designated body "
If the designating body limitslfhe time perlo~during which an area is an economic revitiliz~tion 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-'I .1-12.1-4 or 4.5 Namely: (see tables below)
Year of
Deduction
! st
2nd
3rd
Five (5) Year
Percentage
100%
9th
95%
80%
65%
Ten (10) Year
Percentage
100%
95%
9O%
85%
Year of Three (3) Year Six (6) Year Ten (10) Year
Deduction Deduction Deduction Deduction
1st 100% 100% 100%
2nd 66% 85% 95%
3rd 33%
4th
4th
5th 50% 80% i 5th
¢~th 70% 6th
7th 55% 7th
8th 40% 8th
30% 9th
10th
25%
66% 80%
50% 65%
34% 50%
17% 4O%
3O%
2O%
10%
10th 5%
· July 29, 1998
'TAX ABATEMENT REVIEW
2000 Grant Line Rd
New Albany IN 47150
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 ($640 T) over TEN- year period:
Equipment ($200 T) over FIVE - year period:
$ 75,026
$ 10,799
(Over ten-year period)
Value of Abatement Per Job Created:
(Based on 12 New Jobs Created)
$ 7,152
Additional Unabated Tax Received From Inventory:
(Over ten-year period)
$ 32,980
Tax Received After Abatement:
(Over ten-year period)
Real Property
Machinery
Inventory
$ 76,541
7,606
32,980
Tax Abatement Review
(continued)
A 1 O-year deduction for real property improvements and a 5-year deduction for new equipment
SHOULD be allowed based on the following:
Petitioner plans to create ~ upon opening lumber sales and manufacturing
facility with average salary of $42,083.
Petitioner plans to make in real property improvements, and plans to
purchase in new manufacturing equipment.
Petitioner plans to build inventory up to within five years (which will increase
tax collected from inventory).
Company is financially stable, and has a long-standing history in the Southern Indiana
along with international distribution, and has shown commitment to community.
Petitioner has Purchase Agreement with North Port Development Corporation, which has
been approved for execution. (Petitioner will not execute contract until Council rules on
abatement).
Petitioner will encourage additional growth for the North Port Business Park.
Approval of tax abatement is a ~ incentive for this company choosing to locate in
North Port.
Company has a good history of minority hiring practices.
In cooperation with the City and North Port, the Petitioner has received new founded
marketing efforts. North Port is currently using Mr. Steve Gault for the promotion of
North Port Property.
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Midwest Lumber and Dimension Co.
Petition for Tax Abatement
1) Current Real Property Owner - North Port Development Corporation
1900 Liberty Drive
Bloomington, 1N 47403
Purchaser - Midwest Lumber and Dimension Co.
2000 Grant Line Road
New Albany, IN 47150
Description of Business - Lumber Sales and Manufacturing
2) The legal description of property located on Centennial Boulevard in Jeffersonville can be
found in Exhibit A.
3) See Exhibit B for map of property.
4) The current assessed value of parcel number 42-3-0211 is $26,960. This parcel consists of
138.78 acres, of which Midwest Lumber is negotiating to purchase 3.408 acres of this parcel.
5) Real Estate Taxes Paid for previous three years on the total parcel of land which Midwest
Lumber is negotiating to purchase 3.408 acres:
Year Parcel Number Assessment Gross Yearly Taxes
1995 11-00010-0020 $ 22,100 $1,840.14
1996 11-00010-0020 $ 28,660 $ 2,351.39
1997 42-3-0211 $ 26,960 $ 3,262.79
(Information provided by North Port Development Corporation)
6) Midwest Lumber and Dimension currently has 9 employees in Floyd County that will be
relocating to this property. There are 6 male employees and 3 female employees.
7) Cost of new improvements:
Building $640,000
Equipment $200,000
8) New jobs created in Jeffersonville at this location:
Current jobs at this location 0 $ 0
New jobs 12 $ 505,000
Midwest Lumber and Dimension Co.
Petition for Tax Abatement
9) I, David Davis, President of Midwest Lumber and Dimension, hereby certify that I or no one
on behalf of Midwest Lumber and Dimension has requested a building permit for the above
named real estate improvements and that no n,ew manufacturing equipment has been
installed at this location. A certification from Jeffersonville Planning Commission has been
requested and will be forwarded upon receipt.
10) Contact Person:
David Davis, President
Midwest Lumber and Dimension Co.
2000 Grant Line Road
New Albany, IN 47150
(812) 948-9900
11) A completed Statement of Benefits (Form SB-1) is attached to this petition.
I hereby certify that the representations in this petition are true.
Da:cid D&vis,'Pr~sident
Midwest Lumber and Dimension Co.
2000 Grant Line Road
New Albany, IN 47150
EXHIBIT "A"
3.408 ACRE TRACT OF NORT}IPORT
FOR MIDWEST L~ER
A part of Survey 14 of the Illinois Grant in Clark County, Indiana. being a part of the tract conveyed
to North Port Development Corporation at Deed Drawer 27, Instrument No. 8795 and bounded as
follows:
Commencing at an iron pin in the dividing line of Survey 24 which marks the north corner of said
Survey 14. thence the following courses:
South 35 deg. 23 min. 01 sec. East, 264.00 feet along the dividing line of Surveys 14 and 15 to a
railroad spike, the True Place of Beginning;
Thence the following courses of the boundary:
South 35 deg. 23 min. Ol sec. East, 50 feet along said dividing line to a railroad spike;
South 54 deg. 33 min. 40 sec, West, 709.95 feet leaving said dividing line to the northeastern right-of-
way line of Centennial Boulevard recorded at Deed Drawer 27. Instrumem No. 17088 (60'
wide) marked by an iron pin;
Thence 334~20 feet along said right-of-way on a curve to the left having a radius of 730.00 feet whose
chord bears North 54 deg. 27 min. 13 sec. West, 331.29 feet to a point on the dividing line of Surveys
14 and 23 marked by an iron pin;
North 54 deg. 28 min. 07 sec. East, 488.19 feet with said dividing line and leaving said right-of-way
(passing an iron pin at 476.43 feet) to a north corner of said North Port tract marked by an iron
pin;
South 35 deg. 23 min. 01 sec. East, 264.00 feet leaving said dividing line and along said north line of
North Port to an iron pin;
North 54 deg. 33 min. 40 sec. East, 330.00 feet along a northwest line of North Port to the True Place
of Beginning and containing 3.408 acres of land.
SUBIECT to a 15 foot wide Utility Easement all along and adjacent lO the northeastern right--of-way
of Centennial Boulevard.
ALSO, a 15 foot wide Drainage and Utility Easement all along and adjacent to the northwest line and
the southeLst line of the subject tract,
AND ALSO, a 12 foot wide Utility Easement and a 40 foot wide General Utility Easement recorded
at Deed Drawer 27, Instrument 170911
AND ALSO, subject to the Declarations of Standards, Covenants and Restrictions (Miscellaneous Deed
29, Instrument 9423) for the North Port Business Centre.
AND ALSO. subject to the right-of-way of Utica-Sellersburg Road·