HomeMy Public PortalAbout03-2016 - ECONOMIC REVITALIZATON AREA AND HEARTLAND TAX DEDUCTION RESOLUTION NO. 2016 - 3
A RESOLUTION REAFFIRMING RESOLUTION 2016 - 1 AND DECLARING AN
ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION
(HEARTLAND AUTOMOTIVE LLC - NEW EQUIPMENT)
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 tax
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 Greencastle Common
Council 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, Heartland Automotive LLC proposes redevelopment and rehabilitation of the
existing Heartland facility by investing up to $8.3 million in new manufacturing equipment at their
facility. Heartland Automotive LLC seeks a tax deduction pursuant to I.C. 6 -1.1 -12.1, et. seq.; and
WHEREAS, a Statement of Benefits on State Form 51764 (Form SB -1/PP) said form
approved by the State Board of Tax Commissioners, has been submitted to the Common Council
on March 28, 2016, prior to the installation of new manufacturing equipment on such real estate by
Heartland Automotive LLC and that such Statement of Benefits is attached hereto and marked
"Exhibit A"; and
WHEREAS, the Greencastle Common Council passed Resolution 2016 -1 on March 8,
2016 and advertised a public hearing for April 12, 2016; and
WHEREAS the Greencastle Common Council, pursuant to the laws of the State of
Indiana, does now hereby find that:
1. The estimate of the value of the new manufacturing equipment 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
installation of new manufacturing equipment;
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 installation of new manufacturing equipment;
4. That any other benefits about which information was requested are benefits that
can be reasonably expected to result from the installation of new manufacturing
equipment.
5. The totality of the benefits is sufficient to justify a deduction.
THEREFORE, based upon these findings BE IT RESOLVED THAT THE CITY OF
GREENCASTLE on this 12th day of April 2016 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:
Situate in the State of Indiana County of Putnam and being a part of the Southeast
quarter of the Northeast quarter and a part of the Northeast quarter of the Southeast
quarter all in Section 22, Township 14 North Range 4 West of the Second Principal
Meridian, more particularly described to -wit:
Commencing at the Southeast corner of the Southeast quarter of the Northeast quarter of Section
22 Township 14 North Range 4 West; thence North 00 degrees 04 minutes West 598.02 feet with
the East line of said Southeast quarter quarter to a railroad spike and the true point of beginning of
the real estate herein described; thence South 89 degrees 56 minutes West 300.00 feet to a 5/8 inch
rebar; thence South 00 degrees 04 minutes East 180.00 feet to a 5/8 inch rebar; thence South 89
degrees 56 minutes West 300.00 feet to a 5/8 inch rebar; thence South 00 degrees 04 minutes East
820 feet to a 5/8 inch rebar; thence Northwesterly 167.06 feet on a nontangent curve to the right
having a radius of 375.00 feet and subtended by a long chord bearing North 86 degrees 19 minutes
West a distance of 165.68 feet to a.5/8 inch rebar; thence North 60 degrees 00 minutes West
470.00 feet to a 5/8 inch rebar; thence South 30 degrees 00 minutes West 60.00 feet to a 5/8 inch
rebar; thence North 70 degrees 00 minutes West 130.00 feet to the West line of the Northeast
quarter of the Southeast quarter; thence North 00 degrees 08 minutes West 946.13 feet with the
West line of said Northeast quarter of the Southeast quarter and the West line of the Southeast
quarter of the Northeast quarter to the South right -of -way of Veterans Memorial Highway; thence
with said South right -of -way line North 62 degrees 53 minutes 07 seconds East 735.43 feet to a 5/8
inch rebar; thence North 65 degrees 44 minutes 52 seconds East 100.12 feet to a 5/8 inch rebar;
thence North 61 degrees 55 minutes 50 seconds East 300.04 feet to a 5/8 inch rebar; thence North
62 degrees 53 minutes 07 seconds East 290.00 feet to a 5/8 inch rebar; thence South 52 degrees 31
minutes 51 seconds East 36.51 feet to a 5/8 inch rebar; thence South 00 degrees 06 minutes 48
seconds West 105.00 feet to a 5/8 inch rebar; thence South 05 degrees 35 minutes 50 seconds East
100.50 feet to a 5/8 inch rebar; thence leaving the South right -of -way line of Veterans Memorial
Highway North 89 degrees 56 minutes 00 seconds East 17.57 feet to a PK nail on the East line of
the Southeast quarter of the Northeast quarter; thence South 00 degrees 04 minutes East 606.03
feet with said East line to the point of beginning, containing 31.67 acres, more or less.
Also commonly known as 300 South Warren Drive.
THEREFORE. the Greencastle Common Council does recommend a deduction of assessed value for a
period of ten (10) years as a result of the installation of new manufacturing equipment as set forth in I.C.
6-1.1-12.1-4.5. The following abatement schedule applies to the eligible personal property that are a part of the
expansion project outlined in this resolution:
YEAR ONE 100%
YEAR TWO 90%
YEAR THREE 80%
YEAR FOUR 70%
YEAR FIVE 60%
YEAR SIX 50%
YEAR SEVEN 40%
YEAR EIGHT 30%
YEAR NINE 20%
YEAR TEN 10%
YEAR ELEVEN AND BEYOND 0%
The City of Greencastle does not recommend tax abatement for special tooling nor does Heartland
Automotive. LLC request such abatement.
The Greencastle Common Council further recommends and approves the application of the deductions
herein for improvements and equipment installed pursuant to the Statement of Benefits from the approval of this
resolution and during the twenty -one (21) ensuing months, April 12, 2016 to January 1, 2018.
PASSED AND RESOLVED by the Common Council of the City of Greencastle at its regular meeting this
12th day of April, 2016.
COMMON COUNCIL OF THE CIT OF GREENCASTLE. INDIANA
(At ' l/ . t. !
Adam Cohen Step j M. Fields
Mark N. Hammer
/ St cie Lan
I�
/C
ar _
y 1. Lemo Dave Murray
C; /*L
Tyler J. ade
Approved and signed by me this 12th day of April, 2016 at 7! !07/ p.m. o'clock.
iSS-
William A. Dory, Jr., Mayor
ATTEST:
_O
Ly ;a R. Dunbar, Clerk=Treesurer
•°•n ` STATEMENT OF BENEFITS FORM SB - / PP
: }__ PERSONAL PROPERTY
State Form 51764 (R4 / 11 -15)
• Prescribed by the Department of Local Government Finance PRIVACY NOTICE
Any information concerning the cost
of the property and specific salaries paid
to individual employees by the property
owner is confidential per IC 6-1.1- 12.1 -5.1.
INSTRUCTIONS
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.
2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation
of qualifying abatable equipment for which the person desires to claim a deduction.
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
(Form 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 January 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 January 1 and the extended
due date of that year.
4. Property owners whose Statement of Benefits was approved, must submit Form CF -1/PP annually to show compliance with the Statement of Benefits.
(IC 6- 1.142.1 -5.6)
5. For a Form 58 -1/PP 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 -1/PP that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. (IC 6-1.1- 12.1 -17)
SECTION 1 - TAXPAYER INFORMATION
Name of taxpayer Name of contact person
Heartland Automotive, LLC Ritsuko Murakami Abrams - Business Project Manager
Address of taxpayer (number and street, city, state, and ZIP code) Telephone number
300 South Warren Drive, Greencastle, IN 46135 ( 765 ) 848 -1833
SECTION 2 • - LOCATION AND. DESCRIPTION OF PROPOSED PROJECT - •
Name of designating body Resolution number (s)
Greencastle City Council 2016 - & 2016 -
Location of property County DLGF taxing district number
300 South Warren Drive, Greencastle Putnam 67008
Description of manufacturing equipment and/or research and development equipment ESTIMATED
and /or logistical distribution equipment and /or information technology equipment. START DATE COMPLETION DATE
(Use additional sheets if necessary.)
Manufacturing Equipment 06 /01/2016 12/01/2016
Headliner Stamping, Headliner Assembly, Tier Cut, Powder Slush, Apron
Press, Weather Strip Rivet, Door Upper Trim R & D Equipment
Logist Dist Equipment
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEESAND SALARIES AS RESULT OF PROPOSED PROJECT'
Current number Salaries Number retained Salaries Number additional Salaries
369 +20 part-time $15,760,060 405 (369 +36 vacant) S15,760,060 43 $1,148,160
SECTION 4 • .. - • ESTIMATED TOTAL COST AND VALUE. OF PROPOSED PROJECT. •
NOTE: Pursuant to IC 6-1.1- 12.1 -5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT
EQUIPMENT I EQUIPMENT
COST of the property is confidential. COST COST COST COST I ASSESSED ASSESSED I ASSESSED ASSESSED
VALUE VALUE VALUE VALUE
Current values
Plus estimated values of proposed project' 8,285,727
Less values of any property being replaced
Net estimated values upon completion of project
SECTION 5 - WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) I Estimated hazardous waste converted (pounds)
Other benefits:
•
SECTION 6 - • ' ' ' TAXPAYER CERTIFICATION •
I hereby certify that the representations in this statement are true.
Signature of authorized representative / - Date signed (month, day, year)
Printed name of authorized representative !! �- Title
Kenshi Hirai President
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FOR USE OF THE DESIGNATING BODY
We have reviewed ow prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards
adopted in the resolution previousty 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 21 months calendar years ' (see below). The date this designation expires
is January 1, 2018 . NOTE: This question addresses whether the resolution contains an expiration date for the designated area.
B. The type of deduction that is allowed in the designated area is limited to:
1 . Installation of new manufacturing equipment; 2 Yes ❑ No ❑ Enhanced Abatement per IC 6-1.1- 12.1 -18
2 . Installation of new research and development equipment; ❑ Yes No Check box if an enhanced abatement was
approved for one or more of these types.
3 . Installation of new logistical distribution equipment. ❑ Yes 2 No
4 . Installation of new information technology equipment; ❑ Yes g N.
C. The amount of deduction applicable to new manufacturing equipment is limited to $ 9.000.000.00 cost with an assessed value of
$ . (One or both lines may be filled out to establish a limit, if desired.)
D. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of
$ . (One or both lines may be filled out to establish a limit, if desired.)
E. The amount of deduction applicable to new logistical distribution equipment is limited to 6 cost with an assessed value of
$ . (One or both Tines may be filled out to establish a limit, if desired.)
F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of
$ . (One or both lines may be filled out to establish a limit, if desired.)
G. Other limitations or conditions (specify)
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 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 ❑Enhanced Abatement per IC 6-1.1- 12.1 -18
Number of years approved:
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 2 Year 10 (Enter one to twenty (1 -20) years; may not
exceed twenty (20) years.)
I. 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? IM Yes ❑ No
If yes, attach a copy of the abatement schedule to this farm.
If no, the designating body is required to establish an abatement schedule before the deduction can be determined.
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.
Approv€ iy sig and title a Telephone number Date signed (month, day, year)
4-- ed ember of ignatin i body) ( 765 ) 653 -3100 April 12, 2016
Printed name of authoriz wit; ignating Name of designating body
William A, Dory, Jr., Mayor Greencastle Common Council
Attested by (s" ature and title of att e Printed name of attester
- Lynda Dunbar, Greencastle Clerk- Treasurer
• If th designating body limits t he time pelf rd- 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 temps of the
resolution approving the taxpayer's statement of benefits.
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