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HomeMy Public PortalAbout03-2018 - CHIYODA TAX DEDUCTION COMMON COUNCIL CITY OF GREENCASTLE, INDIANA RESOLUTION NO. 2018—3 A RESOLUTION REAFFIRMING RESOLUTION 2018 - 2 AND DECLARING AN ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION (CHIYODA USA CORPORATION) 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 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 $10,500,000 in new manufacturing equipment to support additional operations resulting in the retention of 346 jobs and the creation of 60 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/PP 51764), said form approved by the Department of Local Government Finance, has been submitted to the Common Council on L February 08,2018 and April 12,2018,prior to the installation of new manufacturing equipment on such real estate 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 2018 - 2 on February 08, 2018 and advertised a public hearing for April 12, 2018; 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 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 described 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 described redevelopment or rehabilitation and installation of new manufacturing equipment; L 4. That any other benefits about which information was requested are benefits that can be reasonably expected to result from the described redevelopment or rehabilitation and 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 COMMON COUNCIL OF THE CITY OF GREENCASTLE on this 12th day of April, 2018, 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: 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 #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 L L 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 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. AND, 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 #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; 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 corner of an 18.71 acre tract and the POINT OF BEGINNING 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 corner of said 18.71 acre tract; thence South 00 degrees 18 minutes 00 seconds West 314.99 feet; thence North 89 degrees 42 minutes 00 seconds West 1,272.62 feet; thence North 01 degrees 16 minutes 25 seconds East 315.03 feet with an established property line fence to the Point of Beginning. (Summarized from DR: 2005006785) AND, Situate in the State of Indiana, County of Putnam and being a part of the Northwest quarter of Section 24, Township 14 North, Range 4 West of the Second Principal Meridian, more particularly described to-wit: Commencing at an iron pin marking 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 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 seconds East, a distance of 329.70 feet; thence leaving said South right-of-way line South 01 degree 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 55 minutes 01 seconds West 1,279.11 feet; thence North 01 degree 16 minutes 25 seconds East 381.15 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. (DR: 2015003477) Approximately 38.98 acres. Subject to all rights-of-way and pertinent easements of record. L Lor Commonly known as 2200 East State Road 240 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 installation of new manufacturing equipment, all 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 100% YEAR THREE 100% 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 Common Council of the City of Greencastle does NOT recommend a deduction orn or(Iti abatement for special tooling nor does Chiyoda USA Corporation request such abatement. The Common Council of the City of Greencastle 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 thirty-three (33) ensuing months, April 12, 2018 to December 31, 2020. PASSED AND RESOLVED by the Common Council of the City of Greencastle at its regular meeting this 12th day of April, 2018. /t MMON COUNCIL CITY OF GRE NCAS LE, INDIANA Ad. � '1 Stacie L. I t t• r tephl . Fields Tyler Jo .de P / Mark N. Hammer Gary D. Lemo L Dave Murray Approved and signed by me this 12th day of April, 2018 a p.m. o'clock. . William A1Dory, - a or ATTEST: Y nd 1-. Dunbar, Clerk-Treasurer I firI I I I I C ,410'144., STATEMENT OF BENEFITS FORM SB-1 1 PP (All PERSONAL PROPERTY S� ,/ Stats Form 51764 1R4 111-151 `'< / Prescnbed by the Department of Local Government Finance PRIVACY NOTICE _Any information concerning the cost of the property end specific salaries paid to individual employees by the property owner is confidential per IC 6.1.1-12.1-5.1. NS!RUC TIONS 1 rhos 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 clam 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 deouctton 3 To obtain a deduction, a person must fife 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 ming extension must hie 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/FP annually to show compliance with the Statement of Benefits (IC 6-1 1-12.1-5.6) 5 For a Form SB-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 SECTION 1 schedule approved by the designating body remains in effect. (1C 6-1.1-12.1-17) TAXPAYER INFORMATION Name of taxpayer i Name of contact person Chiyoda USA Corporation 1 Tammy Newgent ! Address of laspeyer(number and street city state and ZIP cede) Telephone number 2200 State Road 240 East,Greencastle, IN 46135 ( 765 1 653-9098 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) I Greencastle Common Council { Location of property County DLGE taxing district number 2200 State Road 240 East 4 _ Putnam 67008 Description of manufacturing equipment and/or research and development equipment i ESTIMATED irand/or logistical distribution equipment and/or information technology equipment. i START DATE COMPLETION DATE! (Else additional sheets d necessary) I See attached. Manufacturing Equipment 03/08/2018 06/01/2020 ! R 8 0 Equipment I Logist Dist Equipment 03/08/2018 06/01/2020 IT Equipment 03/08/2018 06/01/2020 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT 'Current number Salaries Number retained Salanes !Number additional ;Salaries 346 15,371,174 346 { 15,371,174 60 1,435,200 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 It 0 EQUIPMENT LOGiIST DiST IT EQUIPMENT EQUIPMENT } EQUiPMENT COST of the property is confidential. COST AS 0 I COST ASSELStSEO COST 0 COST Current values Plus estimated values of proposed project 10,000,000 400,000 100,000 �— ' VALUE Less values of any property being replaced VALUE Net estimated values u•• corn•Ietion of project :i ASUSSED LCTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) _ Other benefits. — i SECTION 6 TAXPAYER CERTIFICATION j I hereby certify that the representations in this statement are true. __ Signature of authorized representative Date signed tmonth day,year) _ /- 'i - /,,- Printed name of authorized representative The c /-(a i c/ ,A—.., President --____-- Page 1 of 2 FOR USE OF THE DESIGNATING BODY 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 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 33 Months calendar years*(see below). The date this designation expires is 12/31/2020 . 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; 7 Yes ❑ N o ❑ 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 ❑ N o 4. Installation of new information technology equipment; © Yes ❑ N o C. The amount of deduction applicable to new manufacturing equipment is limited to$ 11,000,000.00 cost with an assessed value of $ . (One or both lines maybe filled out to establish a limit,if desired.) D. The amount of deduction applicable to new research and development equipment is limited to$ 0.00 cost with an assessed value of $ . (One or both lines maybe filled out to establish a limit,if desired.) E. The amount of deduction applicable to new logistical distribution equipment is limited to$ 440,000.00 cost with an assessed value of $ . (One or both lines may be filled out to establish a limit,if desired.) F. The amount of deduction applicable to new information technology equipment is limited to$ 110,000.00 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)(Training Schedule) 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 CI Year 1 CI Year 2 ❑ Year 3 ❑ Year 4 C] Year 5 Enhanced Abatement per IC 6 1.1-12.1-18 Number of years approved: ❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑/ 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? ©Yes E 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. 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. Approved by:(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year) ( 765 ) 653-3100 04 12 2018 Printed name of authorized member of designating body Name of designating body William A. Dory, Jr., Mayor Greencastle Common Council Attested b • signature and title of attester) Printed name of attester Lynda R. Dunbar, Clerk-Treasurer 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 4 solution approving the taxpayer's statement of benefits. Page 2 of 2 fibr, Attachment to Form SB-1/PP Chiyoda USA Corporation Chiyoda USA Corporation(Chiyoda) will be investing in a number of new items of equipment in the next two years with the overall goal of boosting production capabilities. The investment is described below in three buckets: 1. Manufacturing Equipment: Chiyoda will invest approximately$10,000,000 in new manufacturing equipment, including blow mold machines, paint line upgrades, a chiller system, an 1M605 machine,and other production equipment. 2. Logistics Distribution Equipment: Chiyoda is looking at an updated racking system that would cost approximately $400,000. 3. IT Equipment: Chiyoda plans on investing in some technology upgrades(computers, servers,etc.) that would cost approximately$100,000. S