HomeMy Public PortalAbout25-2002-25 RESOLUTION NO. 2002 - 25 SOAED
A RESOLUTION DECLARING AN ECONOMIC REVITALIZATION AREA
(LEAR OPERATIONS CORPORATION; d.b.a.: LEAR- GREENCASTLE)
WHEREAS, the Common Council of the City of Greencastle, Indiana, has determined that
it would be in the best interest of the citizens of Greencastle, Indiana, if such Common Council
defined and declared a certain area within such City as an economic revitalization area; and
WHEREAS, I.C. 6-1.1-12.1-1 to I.C. 6-1.1-12.1-2.5 defines the procedure for establishing
such an economic revitalization area; and
WHEREAS, the Common Council desires to make available to persons owning property in
such economic revitalization area the right to a deduction from the assessed value of property as
defined in I.C. 6-1.1-12.1-3 and a deduction for manufacturing equipment as defined in I.C. 6-1-1-
12.1-4.5.
NOW THEREFORE BE IT RESOLVED by the Common Council of the City of Greencastle,
Indiana, as follows:
1. That this Common Council hereby declares by description the boundaries of the area to
be declared herein to be an economic revitalization area as follows:
Situate in the State of Indiana, County of Putnam and being a part of the South half
of Section 13, Township 14 North, Range 4 West of the Second Principal Meridian,
more particularly described to-wit:
Beginning at a railroad spike in the centerline of a county road which is 464.71 feet
North and 3338.63 feet East of the Southwest corner of Section 13, Township 14
North, Range 4 West; the said railroad spike is further described as being North 00
degrees 27 minutes 02 seconds West 724.71 feet from the intersection ofthe centerline
of said county road and the North right-of-way line of Indiana State Road No. 240;
thence West 1361.01 feet to a concrete monument; thence North 1400.00 feet to a
concrete monument; thence East 1350.00 feet to a railroad spike in the centerline of
the aforesaid county road which is South 00 degrees 27 minutes 02 seconds East
1400.04 feet with the centerline of said county road to the point of beginning,
containing 43.57 acres, more or less.
EXCEPT THEREFROM the following described real estate: Beginning at a point
1864.71 feet North and 1977.62 feet East of the Southwest corner of Section 13,
Township 14 North, Range 4 West; thence East 250.0 feet; thence South 200.0 feet;
thence West 250.0 feet; thence North 200.0 feet to the point of beginning, containing
1.148 acres.
2. That the above described real estate is deemed by the Common Council of the City of
Greencastle to be an economic revitalization area within the corporate limits of the City of
Greencastle, Putnam County, Indiana, which has become obsolete and not lending itself to normal
development because of the availability of other development ground within the City which is
qualified for tax abatement and because of a cessation or lack of growth in the general area which is
anticipated to lead to the deterioration of the area and continued stagnation of employment within
the City of Greencastle if said area is not utilized as an area to promote industrial expansion for the
City of Greencastle.
3. That in order to be competitive in attracting new industrial prospects to the City of
Greencastle, Indiana, and new investment by existing industry, it is imperative that such City offer
to prospective new industries locating in and existing industries investing in the above-described area
up to the maximum tax abatement as allowed by law.
4. That the Common Council now RESOLVES that the above-designated area shall be
declared an economic revitalization area under the terms and provisions of I.C. 6-1.1-12.1-2.5.
5. That this Resolution shall be published pursuant to the provisions of I.C. 5-3-1 and a copy
of this Resolution shall be provided to the Putnam County Assessor's Office for inspection therein.
6. That after due publication, a public hearing shall be held at the time set forth in the public
n notice notifying of the passage of this Resolution at which time, this Common Council shall received
and hear all remonstrances and objections; determine whether or not the qualifications for an
economic revitalization area have been met; and take final action upon this Resolution.
PASSED AND RESOLVED by the Common Council of the City of Greencastle at its regular
meeting this 14th day of May, 2002.
COMMON COUNCIL OF THE CITY OF GREENCASTLE, INDIANA
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Mark N. Hammer eic ty
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Thomas W. Roach Mi e Rokicki
Rob' Sedlack
Approved and signed by me this 14th day of May, 2002 at S p.m. o'clock.
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Nancy A. Mi ael, Mayor
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Pamela S. Jones, Clerk- ea rer
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DEVELOPMENT CENTER.INC.I L
AM C0 1.
Serving the Greater Putnam County Area
May 8, 2002
MEMORANDUM
TO: Greencastle Common Council
FROM: Bill Dory
RE: Resolution 2002-25 - Lear Corporation
Lear- Greencastle is working on a project to expand their operations with the installation
of some new equipment and modifications to their plant. The attached resolution makes
their plant site eligible for abatement. We are putting together the usual briefing package
on the project that will be available for the executive session on Tuesday.
Thank you for your interest and consideration of this request.
40
2 South Jackson Street . P.O. Box 572 . Greencastle, IN 46135-0572
765.653.2474 / Fax 765.653.6385
www.greencastle.com/gcdc • E-Mail gdc@tds.ner
wWWwYA
e i 9!, STATEMENT OF BENEFITS FORM
. . ; State Form 27167(R6/4-00) SB - 1
��= !•I' Form SB-1 is prescribed by the State Board ofTax Commissioners,1 989
INSTRUCTIONS:
1. This statement must be submitted to the body designating the economic revitilization area priort o the public hearing if the designating body requires infor-
mation 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, or BEFORE the
redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. "Projects"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 Board, County Council,e tc.)must be obtained prior to initiation of the redevelopmento r rehabilitation,
or prior to installation of the new manufacturing equipment and/or research and development equipment, BEFORE a deduction may be approved.
3. To obtain a deduction,F orm 322 ERA,R eal Estate Improvements and/o r Form 322 ERA 1P PME and/or 322 ERA/P PR&DE,m ustb e filed with the county
auditor. With respect to real property,F orm 322 ERA mustb e filed by the later of (1)May 10;or(2)thirty(30)days after a notice ofi ncrease in real property
assessment is received from the township assessor. Form 322 ERA/PPME and Jo r 322 ERA PPR&DE must be filed between March 1 and May 15 of the
assessment year in which new manufacturing equipment and/or research and development equipment becomes assessable,unless a filing extension has
been obtained. A person who obtains a filing extension must file the form between March 1 and June 14 of thaty ear.
4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF- 1 annually to show compliance with the Statement
ofB enefits. (IC 6-1.1-12.1-5.6)
5. The schedules established under iC 6-1.1-12.1-4(d) and IC 6-1.1-12.1-4.5(e)effective July 1, 2000 apply to any statement of benefits filed on or after
July 1, 2000.
The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000.
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer
LEAR OPERATIONS CORPORATION DBA LEAR GREENCASTLE
Address of taxpayer(street and number,c ity,state and ZIP code)
PO BOX 491 500 N. FILLMORE ROAD GREENCASTLE, IN. 46135
Name of contactp erson Telephone number
JOHN LANIE COST MANAGER (765 )653-2511 (211)
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
,...,GREENCASTLE COMMON COUNCIL
))cation of property County Taxing district
500 N. FILLMORE ROAD GREENCASTLE, IN PUTNAM GREENCASTLE
Description of real property improvements and/o r new manufacturing equipmenta nd/or ESTIMATED
research and development equipment(use additional sheets if necessary)
Start Date Completion Date
REAL PROPERTY: ENCLOSE PAD OUTSIDE EXISTING Real Estate 5-20-02 12-31-02
BUILDING, BUILD STORAGE BUILDING; ADD 3
DOCK DOORS, AND OTHER FACILITY UPGRADES New Mfg Equipment 5-20-02 3-31-03
MACHINERY: NEW PROGRAM EQUIPMENT AND UPGRADES R&DE
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT -
Current number Salaries Number retained Salaries Number additional Salaries
881 $22,969,422 197 $6,886,920
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE:Pursuantt o IC 6-1.1-12.1-5.1 (d)(2)the RealE state Improvements Machinery Research and Development
Equipment
COST of the property is confidential. Cost Assessed Value Cost Assessed Value Cost Assessed Value
Currentvalues 9,460,759 7,965,200 32,962,9.3 9,632,070
Plus estimated values ofp roposed project 757,000 1 ,676,110
Less values of any property being replaced
Net estimated values upon completion of project 10 217 759 34 639 0.3
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds)
Other benefits:
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature uthorized represe tive Title Date signed(month, day,y ear)
FOR USE OF THE DESIGNATING BODY
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the
general standards adopted in the resolution previously approved by this body: Said resolution, passed under) C 6-1.1-12.1-2.5, pro-
vides for the following limitations as authorized under IC 6-1.1-12.1-2.
A.The designated area has been limited to a period of time not to exceed_ ___calendar years* (see below). The date this
designation expires is
B.The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements; ❑Yes ❑N o
2. Installation of new manufacturing equipment; ❑Yes ❑ N o
3. Installation of new research and development equipment; ❑ Yes ❑ N o
4. Residentially distressed areas ❑Yes ❑ N o
C.The amount of deduction applicable for redevelopment or rehabilitation is limited to$ cost with an assessed
value of$_____________
D.The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed
value of$
E.The amount of deduction applicable to new research and development equipment is limited to $_ _ _ __cost with
an assessed value of$
F. Other limitations or conditions (specify)_ ---
Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason-
able and have determined that the totality of benefits is sufficient to justify the deduction described above.
Approved:(signature and title of authorized member) Telephone number Date signed(month,d ay,year)
( )
oNtested by: Designated body
If the designating body limits the time period during which an area is an economic revitilization area, it does not limit the length of time
a taxpayer is entitled to receive a deduction to a number of years designated under IC 6-1.1-12.1-4 or 4.5
�>�- r R6, 41co
LEAR-GREENCASTLE
F_ .POSE OF REQUEST FOR ABATEMENT
Greencastle Lear is asking for tax abatement, related to accepting existing business from a plant
consolidation and new business awarded from Chrysler. Greencastle is receiving the existing MMMA ST24
and ST41 hardtrim programs, and the Toyota 700N and 800T hardtrim programs, from another Lear facility.
Greencastle has also been awarded the "NEW" Chrysler CS door trim program. The capital
expenditure is required to add the necessary building improvements, equipments needs, and utility
improvements necessary to manufacture the parts for these programs.
Projected sales increase to the Greencastle facility, based on the awarded and assumed programs
will amount to $37,000,000, by year 2. Of the increased sales, $33,000,000 represents new business
for the Chrysler CS program.
Projected headcount additions required to support the listed programs, are as follows:
Hourly: 176
Salaried: 21
Projected Headcount increase 197
Greencastle Lear is asking for 10 year abatement on the building upgrades, and 5 year abatement
on machinery.
O
LEA.R-GREENCASTLE
PROPOSED PROJECT TIMETABLE
BUILDING EXPANSION: (BEGINNING 5-20-02)
AMOUNT FORECASTED
PRESS PADS (CEMENT PADS) FLOOR REINFORCING $ 30,000
ELECTRICAL SWITCH GEAR/UPGRADES $ 75,000
PRESS CONNECTIONS $ 165,000
PLUMBING, AIR LINES, RESIN DELIVERY SYSTEMS $ 167,000
THREE NEW DOCK DOORS $ 145,000
SILO PADS $ 10,000
COVER BACK PAD $ 100,000
BUILD OUTSIDE STORAGE BUILDING $ 35,000
ADDITIONAL LIGHTING (NEW AREAS) $ 15,000
MOVE 6 TON CRANE $ 15,000
TOTAL PROJECTED FACILITIES UPGRADES $ 757,000
MACHINERY AND EQUIPMENT: (BEGINNING 5-20-02)
WATER CHILLER TOWER $ 35,000
AIR COMPRESSOR $ 75,000
INTERNAL PRESS MOVES-RIGGING AND PLACEMENT $ 120,000
(7) PRESSES
PRESS REFURBISHMENTS $ 75,000
MOLD CHANGE RACKS $ 100,000
HYDRAULIC GATE SYSTEM $ 45,000
CAVITY PRESSURE CONTROL $ 200,000
CHRYSLER CS (FRONT DOOR) END OF ARM TOOLING $ 92,000
GAS ASSIST EQUIPMENT $ 108,200
CHRYSLER CS (FRONT DOOR) SECONDARY EQUIPMENT $ 598,700
CHRYSLER CS (REAR DOOR) SECONDARY EQUIPMENT $ 227,200
$ 1,676,100
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