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HomeMy Public PortalAboutResolution 04-2014-4RESOLUTION NO. 2014 - 4 A RESOLUTION AMENDING RESOLUTION 2012 -27 TO INCREASE THE MAXIMUM VALUE OF EQUIPMENT ELIGIBLE FOR TAX ABATEMENT GRANTED TO ASCENA RETAIL GROUP, INC. WHEREAS, Ascena Retail Group, Inc. was granted tax abatement on new equipment with the passage of Resolution 2012 -27 on September 11, 2012; and, WHEREAS, Ascena Retail Group has finalized the name of its corporate entity doing business in Greencastle as GC Fulfillment, LLC; and, WHEREAS, Ascena Retail Group has determined that additional equipment will be required to complete the transition to an e- commerce fulfillment center; and, WHEREAS, Ascena Retail Group now comes before the Common Council to amend their Statement of Benefits to increase the investment eligible for personal property tax abatement from $34,000,000 to $62,000,000; and, WHEREAS, a revised Statement of Benefits form for personal property has been submitted to the Common Council on March 21, 2014 and that such Statement of Benefits form is attached hereto and marked "Exhibit A "; and , WHEREAS, the Common Council of the City of Greencastle passed Resolution 2012 -4 on March 13, 2012, and Resolution 2012 -27 on September 11, 2012 and advertised a public hearing for April 8, 2014 to consider this request; and, WHEREAS, the Common Council of the City of Greencastle, pursuant to the laws of the State of Indiana, does now hereby find that Ascena Retail Group's request to amend their Statement of Benefits to be reasonable. THEREFORE, the Common Council of the City of Greencastle recommends and approves the request for the following: 1. That the proposed investment eligible for abatement be increased from $34,000,000 to $50,000,000 for logistics and distribution equipment and an additional $12,000,000 for IT equipment for a total of $62,000,000. 2. That the investment will be made in the name of GC Fulfillment, LLC, a related corporate entity of Ascena Retail Group, Inc. 3. That the other findings, recommendations, and approvals of Resolution 2012 -27 are confinued and shall remain in effect. 4. As a result of changes in I.0 6 -1.1 -12.1 since 2012, the Common Council restates that the percentage to be used in calculating the deduction shall be as follows: ATTEST: First Year of Deduction 100% Second Year of Deduction 90% Third Year of Deduction 80% Fourth Year of Deduction 70% Fifth Year of Deduction 60% Sixth Year of Deduction 50% Seventh Year of Deduction 40% Eighth Year of Deduction 30% Ninth Year of Deduction 20% Tenth Year of Deduction 10% Eleventh Year and Beyond 0% These percentages reflect the abatement schedule in effect on September 11, 2012 at the time of the approval of the original abatement request. PASSED AND RESOLVED by the Common Council of the City of Greencastle at a regular meeting this 8 day of April, 2014. COMMON COUNCIL OF THE CITY OF GREENCAS E, INDIANA o l�Jin 7 0/5i . Bingham Adam C en �� &2 Mark N. Hammer Phyll Ross Ro icki . 1 c2C J �m i�h Approved and signed by me this 8th day of April, 2014 al .SSp.m. o'clock. n R. Dunbar, Clerk- Treasurer Susan V. Murray, Mayor INSTRUCTIONS: STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R2 / 12 -11) Prescribed by the Department of Local Govemment Finance 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. Protects" planned or committed to after July 1, 1987, and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (iC 6 -1.1 -12.1) 2. Approval of the designating body (City Council, Town Boom; County Council, etc.) must be obtained prior to installation of the new manufacturing equipment and /or research and development equipment and/or logistical distribution equipment and/or information technology equipment, BEFORE a deduction may be approved 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 (Farm 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 March 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 March 1 and the extended due date of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF -1 / PP annually to show compliance with the Statement of Benefits. (IC 6-1.1- 12.1 -5.6) 5. The schedules established under IC 6 -1.1- 12.1- 4.5(d) and (e) apply to equipment installed after March 1, 2001, unless an alternative deduction schedule is adopted by the designating body (lC 6 -1.1- 12.1 -17). AXPAYER'INFORMATiON Name of taxpayer Ascena Retail Group, Inc. & GC Fulfillment, LLC Address of taxpayer (number end street, city, state, end ZIP code) 30 Dunnigan Drive, Suffern, NY 10901 Name of contact person Monica Kilgren, AVP- Tax SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED,PROJECT'. . Name of designating body Greencastle Common Council Location of property 1901 State Road 240 East Putnam Description of manufacturing equipment and /or research and development equipment and /or logistical distribution equipment and/or information technology equipment. (use additional sheets if necessary) New state -of -the -art distribution equipment and IT for the proposed new ecommerce distribution operation in Greencastle, iN. SECTION 3 ESTIMATE OF EMPLOYEES AND ALARIES ASR SULT OF PROPOSED PRO Salaries 5,297,074.00 Number retained 181 Salaries 5,297,074.00 Number additional 242 Salaries 8,114,163.00 CTI 7 _ D TOTAL COST AND VALUE OF PROPOSED PROJECT Current number 181 NOTE: Pursuant to IC 6 -1.1- 12.1 -5.1 (d) (2) the COST of the property Is confidential. Current values Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of project Estimated solid waste converted (pounds) Other benefits: Signature of authorized repr entative V\ AOAA (,o.- -- 1 MANUFACTURING EQUIPMENT COST ASSESSED VALUE COST Page 1 of 2 'Coun Manufacturing Equipment I R & 0 Equipment Logist Dlst Equipment 01/01/2013 IT Equipment R & D EQUIPMENT ASSESSED VALUE AS AMENDED LOGIST DIST EQUIPMENT COST ASSESSED VALUE OT ER BENEFITS PRO iSED Estimated hazardous waste converted (pounds) I hereby certify that the representations in this statement are true. TiUe AVP -Tax Telephone number (614) 775 -3280 FORM SB -1 I PP 1 PRIVACY NOTICE The cost and any specific individual s salary information is confidential; the balance of the filing is public record per IC 6-1.1- 12.1 -5.1 (c) and (d). Resolution number (s) 20124 DLGF taxing district number 67008 ESTIMATED START DATE COMPLETION DATE Date signed (month, day year) 03/21/2014 12/31/2015 IT EQUIPMENT ASSESSED VALUE TAX PAYER CERTIFICATION - *s a .5I We have reviewed our prior actions relating to the designation of this economic revitalization area and find adopted in the resolution previously approved by this body Said resolution, passed under IC 6 -1 1 -12. authorized under IC 6 -1 1- 12.1 -2. A The designated area has been limited to a period of time not to exceed 35 months calendar years * is March 1, 2017 B The type of deduction that is allowed in the designated area is limited to: 1 Installation of new manufacturing equipment; ❑Yes No 2 Installation of new research and development equipment; ❑ Yes N o 3 Installation of new logistical distribution equipment. 0 Yes ❑ No 4 Installation of new information technology equipment; 0 Yes ❑ No C The amount of deduction applicable to new manufacturing equipment is limited to $ D The amount of deduction applicable to new research and development equipment is limited to $ 0 00 E The amount of deduction applicable to new logistical distribution equipment is limited to $ 55 000 000 00 F The amount of deduction applicable to new information technology equipment is limited to $ 13,200,000 00 cost with an assessed value of G. Other limitations or conditions (specify) Not Applicable 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 ❑ Year 1 ❑ Year 6 ❑ Year 2 ❑ Year 7 FOR USER R iRIEADESIGNAT I.Pj,BODY ❑ Year 3 ❑ Year 8 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. ❑ Year 4 ❑ Year 9 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? 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. Approved by' (signature a title of autrire d ber of designating body) Printed name of authorized member of designating body Susan V Murray, Mayor Attested y (signature title . - ester) Page 2 of 2 1 F1 ❑ Year 5 (see below *) Year 10 Telephone number ( 765 ) 653 -3100 Name of designating body Greencastle Common Council Printed name of attester Lynda R. Dunbar that the applicant meets the general standards 1 -2.5, provides for the following limitations as (see below) The date this designation expires 0 00 cost with an assessed value of cost with an assessed value of cost with an assessed value of F1 Date signed (month, day, year) 04/08/2014 Yes 0 N * 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.