Loading...
HomeMy Public PortalAbout07-2018 - PHOENIX CLOSURES TAX ABATEMENT COMMON COUNCIL CITY OF GREENCASTLE INDIANA RESOLUTION NO. 2018 - 7 A RESOLUTION AMENDING RESOLUTION 2011 -35 TO INCREASE THE MAXIMUM VALUE OF EQUIPMENT ELIGIBLE FOR TAX ABATEMENT GRANTED TO PHOENIX CLOSURES, INC. WHEREAS, Phoenix Closures, Inc. was granted tax abatement on new equipment with the passage of Resolution 2011-35 on November 15, 2011; and, WHEREAS, Phoenix Closures, Inc. made a substantial investment in new equipment at their facility located at 2000 South Jackson Street that significantly exceeded their estimated investment described in their original Statement of Benefits form; and, WHEREAS, a mezzanine was included in the overall project investment and has been determined to be person property rather than real property under the assessment rules of the State of Indiana; and, WHEREAS, said company desires to correct errors in their request for an economic revitalization area deduction, also known as personal property tax abatement/phase-in for this investment; and, WHEREAS, Phoenix Closures now comes before the Common Council to amend their Statement of Benefits to increase the investment eligible for personal property tax abatement from $18,500,000 to $26,590,130; and, WHEREAS, a revised Statement of Benefits form for personal property has been submitted to the Common Council on June 4, 2018 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 2011-13 on July 12, 2011, and Resolution 2011-35 on November 15, 2011 and advertised a public hearing for June 14, 2018 to consider this request; and, WHEREAS, on June 14, 2018 the Common Council conducted a public hearing to determine if the request for said tax deduction met the requirements of 50 IAC 10-4-1(c); and WHEREAS,on June 14,2018 the Common Council passed Resolution 2018-6 finding that said requirements of 50 IAC 10-4-1(c) had been met; and WHEREAS, the Common Council of the City of Greencastle, pursuant to the laws of the State of Indiana,does now hereby finds that Phoenix Closures' 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: (ibv 1. That the proposed investment eligible for abatement be increased from a total of $18,500,000 to a total of$26,590,130 for personal property. 2. That the other findings, recommendations, and approvals of Resolution 2011-35 are confirmed and shall remain in effect. 3. That the ten year abatement schedule included in Resolution 2011-35 shall apply to the increased manufacturing equipment investment described in this resolution. 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: 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% ic Ihor Eleventh Year and Beyond 0% These percentages reflect the abatement schedule in effect on November 15, 2011 at 1 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 14th day of June, 2018. CO '' ON COUN e - CITY 0 GREE CASTLE, DIANA I dae' Ad, 'o •n , Stacie L. _so (----' I/ ijiT. / AG/ i' . _.-, ... --d-,..iiiiti III t S ep i/ . Fields Tyler J is ." / v / 4 G 4/ 1.,-; 4,%/1.4.44-441...- d. iliN. Hammer Gary D. Lemo N a / .Vii%J 1g- Murray Approved and signed by me this 14th day of June, 2018 at p.m. o'clock. • William A. ory, M or ATTEST: L a R. Dunbar, Clerk-Treasurer .4..'';'., STATEMENT OF BENEFITS y ., '` .'� PERSONAL PROPERTY FORM SB-1 /PP 4x` State Form 51764(R4/11-15) .'`•--� Prescribed by the Department of Local Government Finance =� PRIVACY NOTICE L 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 i. 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 6-1.1-12.1-5.6) 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 schedule approved by the designating body remains in effect. (/C 6-1.1-12.1-17) SECTION 1 TAXPAYER INFORMATION Name of taxpayer Name of contact person Pheonix Closures, Inc. Stacie Gannon, Vice President-Finance Address of taxpayer(number and street.city,state.and ZIP code) Telephone number 1899 High Grove Lane Naperville, IL 60540 ( 630 ) 420-4785 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) Greencastle Common Council 2011-13&2011-35 Location of property County DLGF taxing district number cw2000 South Jackson Street Putnam 67008 Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or information technology equipment. (Use additional sheets if necessary.) START DATE COMPLETION DATE Equipment includes injection molding and packaging equipment for the Manufacturing Equipment 03/01/2012 03/01/2015 production of closures and caps. The proposed investment in manufacturing equipment includes some used equipment new to Indiana. This is a revised R&D Equipment Statement of Benefits is to correct errors under 50 IAC 10-4. Proposed Logist Dist Equipment 03/01/2012 03/01/2015 increase in investment includes a mezzanine used for equipment. IT Equipment 03/01/2012 03/01/2015 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 0 0 0 0 90 $3,900,000 SECTION 4 ESTIMATE°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 EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values Plus estimated values of proposed project 25,590,130 350,000 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) Estimated hazardous waste converted(pounds) Other benefits: Applicant invested$7,590,130 more than the$18,000,000 maximum cost allowed in the original approved SB-1. Applicant is requesting approval of an increase in the eligible amount for abatement. The error is proposed to be corrected under 50 IAC 10-4. SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signatu of authorized repr entativeLi Date si red(month,day,year) Ph to name of auth zed representative Title / Stacie Gannon Vice President- Financeil Page 1 of 2 1/4 FOR USE OF THE DESIGNATING BODY We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5, provides for the following limitations as authorized under IC 6-1.1-12.1-2. A. The designated area has been limited to a period of time not to exceed 40 months calendar years*(see below). The date this designation expires is 3/1/2015 . NOTE: This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1 . Installation of new manufacturing equipment; © Yes ❑ N o ❑ Enhanced Abatement per IC 6-1.1-12.1-18 2. Installation of new research and development equipment; ❑ Yes © No Check box if an enhanced abatement was approved for one or more of these types. 3. Installation of new logistical distribution equipment. ® Yes ❑ No 4. Installation of new information technology equipment: 0 Yes ❑ N o C.The amount of deduction applicable to new manufacturing equipment is limited to$ 25,590,130.00 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$ 0.00 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$ 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$ 500,000.00 cost with an assessed value of $ . (One or both lines maybe filled out to establish a limit,if desired.) G. Other limitations or conditions(specify)Four year abatement nn IT equipment I ngistirs equipment inrIided in the value of mamdarturing equipment 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: ElYear 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 © Year 10 (Enter one to twenty(1-20)years;may not exceed twenty(20)years.) kir 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 ❑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. Approve, ,gn.tur- _'le of autho . , _ - r of d= ignating b Telephone number Date signed(m th,day,ye ) / ( 765 ) 653-3100 4 / Me l( P j. J -me of- t ori -•memb •f d g .• Name of designating body William A. Dory, Jr., Mayor Greencastle Common Council (SB-1/PP) Attested .(signature andtit7;of attester) Printed name of attester (s��/ _ Lynda R. Dunbar, Clerk-Treasurer *If the designating body limits theimt a 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. Page 2 of 2