HomeMy Public PortalAboutResolution 08-2015-8GREENCASTLE COMMON COUNCIL
MAY 12, 2015
RESOLUTION NO. 2015 — 8
A RESOLUTION REAFFIRrMING RESOLUTION 2015 - 7 AND DECLARING AN
ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION
FOR CHIYODA USA CORPORATION AND THE
GREENCASTLE/PUTNAM COUNTY DEVELOPMENT CENTER, INC.
WHEREAS, the laws of the State of Indiana, specifically I.C. 6- 1.1- 12.1 -1, et. seq.,
provide for the creation of economic revitalization areas within the corporate limits of the City of
Greencastle, Putnam County, Indiana, for the general purpose of providing property tar
deductions to encourage private redevelopment of areas which have become undesirable for, or
impossible of, normal development and occupancy because of a lack of development, cessation of
growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard
buildings or other factors which have impaired values or prevent normal development of property
or use of property; and,
WHEREAS, the term "economic revitalization area" also includes any area where a
facility or group of facilities that are technologically, economically or energy obsolete are located
and where the obsolescence may lead to the decline in employment and tax revenue; and,
WHEREAS, "redevelopment" means the construction of new structures in economic
revitalization areas either on unimproved real estate or on real estate upon which a prior existing
structure is demolished to allow for new construction; and.
WHEREAS, "rehabilitation" means remodeling, repair or betterment of property in any
manner or any enlargement or extension of property; and,
WHEREAS, pursuant to applicable laws of the State of Indiana, the Common Council of
the City of Greencastle may create said economic revitalization area through the adoption of a
resolution; and.
WHEREAS, the need exists to establish an economic revitalization area in order to
encourage private redevelopment in the City of Greencastle, Putnam County, Indiana; and,
WHEREAS, Chiyoda USA Corporation has planned the economic revitalization of their
operations by investing up to S15 million in a new manufacturing facility to support additional
operations resulting in the creation of 200 additional jobs at their facility. Chiyoda USA
Corporation seeks a tax deduction pursuant to I.C. 6 -1.1 -12.1, et. seq.; and,
WHEREAS. Statement of Benefits Form (Form SB- 1/RE), said form approved by the
Department of Local Government Finance, has been submitted to the Common Council on April
21, 2015, prior to the start of construction by Chiyoda USA Corporation and that such Statement of
Benefits are attached hereto and marked "Exhibit A ": and.
WHEREAS, the Common Council of the City of Greencastle passed Resolution 2015 - 7
on April 14, 2015 and advertised a public hearing for May 12, 2015; and,
WHEREAS, the Common Council of the City of Greencastle, pursuant to the laws of the
State of Indiana does now hereby find that:
1. The estimate of the value of the proposed new manufacturing facility is reasonable
for projects of that nature;
2. The estimate of the number of individuals who will be employed or whose
employment will be retained can be reasonably expected to result from the proposed
new facilitv:
3. The estimate of the annual salaries of those individuals who will be employed or
whose employment will be retained can reasonably be expected to result from the
proposed new facility:
4. That any other benefits, about which information was requested are benefits that
can be reasonably expected to result from the proposed new facility.
5. The totality of the benefits is sufficient to justify a deduction.
THEREFORE, based upon these findings, BE IT RESOLVED THAT THE COMMON
COUNCIL OF THE CITY OF GREENCASTLE on this 12th day of May, 2015, pursuant to I.C.
6- 1.1- 12.1 -1, et. seq., deems there to be a need to establish an economic revitalization area and that
said economic revitalization area shall be defined as follows:
CHIYODA USA COPRORATION PROPERTY
Part of the Northwest Quarter of Section 24, Township 14 North Range 4 West of
the Second Principal Meridian, Putnam County, Indiana, described as follows:
Commencing a the Northwest comer of Section 24, Township 14 North Range 4
West: thence South 00 degrees 52 minutes West 90.11 feet with the West line of
said Section 24 to the South right -of -way line of Indiana State Road #240; thence
with said South right -of -way line Southeasterly 329.70 feet on a curve to the right
having a radius of 28,532.90 feet and subtended by a long chord bearing South 88
degrees 16 minutes 36 second East a distance of 329.70 feet to an iron pin and the
TRUE POINT OF BEGINNING of the real estate herein described; thence
continuing with said South right -of -way Southeasterly 279.11 feet on a curve to the
right having a radius of 28,532.90 feet and subtended by a long chord bearing South
87 degrees 39 minutes 49 seconds East a distance of 279.11 feet to an iron pin;
thence South 87 degrees 23 minutes 00 second East 799.76 feet to a concrete
right -of -way monument; thence South 81 degrees 40 minutes 22 seconds East
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50.25 feet to an iron pin; thence South 87 degrees 23 minutes 00 seconds East
100.00 feet to an iron pin; thence North 86 degrees 53 minutes 53 seconds East
28.21 feet to an iron pin; thence leaving the South right -of -way line of the aforesaid
Indiana State Road 240, South 00 degrees 18 minutes 00 seconds West 618.97 feet
to an iron pin; thence North 89 degrees 42 minutes 00 seconds West 1267.27 feet to
an iron pin; thence North 01 degree 16 minutes 25 seconds East 670.70 feet with an
established property fence line to the Point of Beginning.
IEWHE VIG
Part of the Northwest Quarter of Section 24, Township 14 North Range 4 West of
the Second Principal Meridian, Putnam County Indiana, described as follows:
Commencing a the Northwest corner of Section 24, Township 14 North Range 4
West; thence South 00 degrees 52 minutes West 90.11 feet with the West line of
said Section 24 to the South right -of -way line of Indiana State Road 9240; thence
with said South right -of -way line Southeasterly 329.70 feet on a curve to the right
having a radius of 28,32.90 feet and subtended by a long chord bearing South 88
degrees 16 minutes 36 second East a distance of 329.70 feet: thence leaving said
South right -of -way line South 01 degrees 16 minutes 25 seconds West 670.70 feet
with an established property line fence to an iron pin marking the Southwest comer
of an 18.71 acre tract and the TRUE PONT OF BEGNNNG of the real estate
herein described: thence South 89 degrees 42 minutes 00 seconds East 1.267.27
feet to an iron pin marking the Southeast comer of said 18.71 acre tract; thence
South 00 degrees 18 minutes 00 seconds West 616.17 feet to an iron pin; thence
North 89 degrees 42 minutes 00 seconds West 1,277.74 feet to an iron pin; thence
North 01 degrees 16 minutes 25 seconds East 616.26 feet with an established
property line fence to the Point of Beginning.
EXCEPT:
Part of the Northwest Quarter of Section 24, Township 14 North Range 4 West of
the Second Principal Meridian, Putnam County, Indiana, described as follows:
Commencing a the Northwest corner of Section 24, Township 14 North Range 4
West; thence South 00 degrees 52 minutes West 90.11 feet with the West line of
said Section 24 to the South right -of -way line of Indiana State Road 9240; thence
with said South right -of -way line Southeasterly 329.70 feet on a curve to the right
having a radius of 28,532.90 feet and subtended by a long chord bearing South 88
degrees 16 minutes 36 second East a distance of 329.70 feet; thence leaving said
South right -of -way line South 01 degrees 16 minutes 25 seconds West 985.73 feet
to the PONT OF BEGNNNG of the real estate herein described; thence South 89
degrees 42 minutes 00 seconds East 1,272.62 feet; thence South 00 degrees 18
minutes 00 seconds West 301.18 feet: thence North 89 degrees 42 minutes 00
seconds West 1.277.74 feet: thence North 01 degree 16 minutes 25 seconds East
3 01.23 feet to the point of beginning, containing 8.82 acres of land more or less and
subject to any easements, rights -of -way, and restrictions of record.
(DR: 2005006785)
Commonly known as 2200 East State Road 240
GREENCASTLE/PUTNAM COUNTY DEVELOPMENT CENTER PROPERTY
(In the process of being purchased by Chiyoda USA Corporation)
Part of the Northwest Quarter of Section 24, Township 14 North Range 4 West of
the Second Principal Meridian, Putnam County, Indiana, described as follows:
Commencing a the Northwest comer of Section 24, Township 14 North Range 4
West: thence South 00 degrees 52 minutes West 90.11 feet with the West line of
said Section 24 to the South right -of -way line of Indiana State Road #240; thence
with said South right -of -way line Southeasterly 329.70 feet on a curve to the right
having a radius of 28,32.90 feet and subtended by a long chord bearing South 88
degrees 16 minutes 36 second East a distance of 329.70 feet; thence leaving said
South right -of -way line South 01 degrees 16 minutes 25 seconds West 985.73 feet
to the POINT OF BEGINNING of the real estate herein described; thence South 89
degrees 42 minutes 00 seconds East 1,272.62 feet; thence South 00 degrees 18
minutes 00 seconds West 376.24 feet; thence North 89 degrees » minutes 01
seconds West 1,279.11 feet: thence North 01 degree 16 minutes 25 seconds East
3 feet to the point of beginning, containing 11.09 acres of land more or less
and subject to any easements, rights -of -way, and restrictions of record.
Subject to all rights -of -way and pertinent easements of record.
THEREFORE, the Common Council of the City of Greencastle does recommend a
deduction of assessed value for a period of ten (10) years as a result of the construction of a new
manufacturing facility, all as set forth in I.C. 6- 1.1- 12.1 -3. The following abatement schedule
applies to the eligible real property improvements that are a part of the expansion project
outlined in this resolution:
YEAR ONE
100%
YEAR TWO
95%
YEAR THREE
80%
YEAR FOUR
65%
YEAR FIVE
50%
YEAR SIX
40%
YEAR SEVEN
30%
YEAR EIGHT
20%
YEAR NINE
10%
YEAR TEN
5%
YEAR ELEVEN AND BEYOND
0%
The Common Council of the City of Greencastle further recommends and approves the
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application of the deductions herein for real estate improvements pursuant to the Statement of
Benefits from the approval of this resolution and during the thirty -three (33) ensuing months. May
12, 2015 to January 1. 2018.
PASSED AND RESOLVED by the Common Council of the City of Greencastle at its
regular meeting this 12'' day of May, 2015.
COMMON COUNCIL OF THE CITY OF G TLE, INDIAi T
Jins' S. Bingham Adam C�o h en
C
Marl N. Hammer
- fU '4 :��
Tyler ad
Approved and signed by me this 12th day of May, 2015 at T! p.m. o'clock.
Susan V. Murray, Mayor
ATTEST:
Lynei . unbaz, Clerk - Treasurer
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STATEMENT OF BENEFITS
q Exhibit A
-_.- REAL ESTATE IMPROVEMENTS
State Form 51767 (R6 / 10 -14)
Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
M Redevelopment or rehabilitation of real estate improvements (IC 61.1 - 12.1 -4)
❑ Residentially distressed area (IC 61.1- 12.1 -4.1)
20 16 PAY 2017
FORM SB -1 I Real Property
PRIVACY NOTICE
Any information concerning the cost
of the property and specific salaries
paid to indinlual employees by the
property owner is confidential per
IC &1.1- 12.1.5.1.
INSTRUCTIONS:
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body 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 the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction.
2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of
the redevelopment or rehabilitation for which the person desires to claim a deduction.
3. To obtain a deduction, a Form 3221RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty (30) days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who
failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year
4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF- 11Rea1 Property. The Form CF- IlReal
Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
IC 6-1.1- 12.1- 5.1(b)
5. For a Form SB- 17Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each
deduction allowed. For a Form SB- IlReal Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body
remains in effect. IC 5- 1.1- 12.1 -17
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SECTI
••
Name of taxpayer
Chiyoda USA Corporation
Address of taxpayer (number and street city stare, and ZIP code)
2200 State Road 240 East, Greencastle, IN 46135
Name of contact person
Telephone number
— Email address
Tammy Newgent
(765 ) 653 -9098
tnewgent @chiyoda - usa.com
SECTION 2 LOCATION AND DESCRIPTION
OF PROPOSED PROJECT
Name of designa5ng body
Resolution number
Greencastle Common Council
Location of property
County
DLGF taxing district number
2200 State Road 240 East
Putnam
67008
Description of real property improvements. redevelopment or rehabilitation (use additional
sheers if necessary)
Estimated start date (month, day, year)
Construction of an approximately 90- 100.000 square foot manufacturing building and related site improvements.
May 15, 2015
Estimated completion date (month, day, year)
May 31, 2016
.SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESULT OF PROPOSED PROJECT
Cument number Salaries Number retained
Salaries Number additional Salaries
172.00 I $5,534,792.00 172.00
$5,534,792.00 200.00
$4,400,000.00
SECTION 4 ESTIMATED TOTAL COST AND
VALUE OF PROPOSED PROJECT,
REAL ESTATE IMPROVEMENTS
COST
ASSESSED VALUE
Current values
Plus estimated values of proposed project
15.000.000.00
Less values of any property being replaced
Net estimated values upon completion of project
SECTION S.. - , I , WASTE CONVERTED AND OTHER
BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits
SECTION 6 TAXPAYER CERTIFICATION
4;
I hereby certify that the representations in this statement are true.
Signature of authorized representative
/
Date signed (month, day, year)
1112-1 h
Pnnted name of authorized representative
Title
Haruo Yamazaki
President and COO
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We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed
under IC 6 -1.1 -12.1, provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed 33 months calendar years' (see below). The date this designation
expires is January 1, 2018
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements Q Yes ❑ No
2. Residentially distressed areas ❑ Yes ® No
C. The amount of the deduction applicable is limited to 5 16,500,000.00
D. Other limitations or conditions (specify) None
E. Number of years allowed: ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 (*see below)
❑ Year 6 ❑ Year ? ❑ Year 8 ❑ Year 9 (0 Year 10
F. 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?
(0 Yes ❑ No
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.
We have also 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.
Approved v net d6tle of auNO m er of designating body)
Telephone number
Date signed (month, day, year)
( 765 ) 653 -3100
05/12/2015
Pnn name of authorized member of designating body
Name of designating body
Susan V. Murray, Mayor
Greencastle Common Council
b 'gnature and life of attes
led name of attester
pAte;sted
nda R. Dunbar, Clerk- Treasurer
' I he 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.
A. For residentially distressed areas where the Forth SB- 1 /Real Property was approved prior to July 1, 2013, the deductions established in IC
6- 1.1- 12.1 -4.1 remain in effect. The deduction period may not exceed five (5) years. For a Form SB -1 /Real Property that is approved after June 30,
2013, the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
(10) years. (See IC 6-1.1- 12.1 -17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SB -1 /Real Property was approved prior to July 1, 2013, the abatement
schedule approved by the designating body remains in effect. For a Forth S&1 /Real Property that is approved after June 30, 2013, the designating
body is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1- 12.1 -17 below.)
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.
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