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Home My Public Portal About28-2002-28 crt4m1wIrn RESOLUTION NO. 2002 - 28 A RESOLUTION REAFFIRMING RESOLUTION 2002-25 AND DECLARING AN ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION (LEAR OPERATIONS CORPORATION; d.b.a.: LEAR- GREENCASTLE) WHEREAS, the laws of the State of Indiana, specifically I.C. 6-1.1-I2.1-1, et. Seq.,provide for the creation of economic revitalization areas within the corporate limits ofthe 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, Lear Operations Corporation (d.b.a. Lear - Greencastle) has planned the economic revitalization oftheir operations by investing up to$800,000 in real property improvements and up to $1,700,000 in new manufacturing equipment to support additional operations resulting in 197 additional jobs at their facility. Lear Operations Corporation seeks a tax deduction pursuant to I.C. 6-1.1-12.1, et. seq.; and WHEREAS, a Statement ofBenefits on State Form 27167(Form SB-1), said form approved by the State Board of Tax Commissioners, has been submitted to the Common Council on May 14, 2002, prior to redevelopment or rehabilitation and installation of new manufacturing equipment on such real estate by Lear Operations Corporation and that such Statement of Benefits is attached hereto and marked "Exhibit A"; and WHEREAS, the Common Council of the City of Greencastle passed Resolution 2002-25 on May 14, 2002 and advertised a public hearing for May 29, 2002; 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 redevelopment of rehabilitation and 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 redevelopment or rehabilitation and 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; 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 29th day of May, 2002, 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 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 of the 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. Also commonly known as 500 North Fillmore Road. THEREFORE,the Common Council ofthe City of Greencastle does recommend a deduction of assessed value for a period of ten(10)years as a result of the increase in assessed value resulting from the redevelopment or rehabilitation of improvements as set forth in I.C. 6-1.1-12.1-2.5 and a deduction for a period of five 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 Common Council of the City of Greencastle does NOT recommend a deduction or tax abatement for special tooling nor does Lear Operations 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 nineteen (19) ensuing months, May 29, 2002 to December 31, 2003. PASSED AND RESOLVED by the Common Council of the City of Greencastle at a special meeting this 29th day of May, 2002. COMMON COUNCIL OF THE CITY OF GREENCASTLE, INDIANA Mark N. Hammer oe M. Leic ty Ce�Z � u1 L!/1 Thomas W. Roach Mike Rokicki r Robert Sedlack Approved and signed by me this 29th day of May, 2002 at i� p.m. o'clock. Nancy A. 'chael, Mayor ATTE Pamela S. Jones, Clerkr r asurer d4' 7� $ STATEMENT OF BENEFITS FORM - ;Y State Form 27167(R6/4-00) SB - 1 + • Form SB-1 is prescribed by the State Board ofT ax Commissioners,l 989 ""'.N e' 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 I 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 rrehabilitation, 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 ea/Estate Improvements and/o r Form 322 ERA/P 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 oft ncrease in real property assessment is received from the township assessor. Form 322 ERA/PPME and/o r 322 ERA PPR&DE mustte 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 • ri.M3cation 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 $6,886,920 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE:Pursuantt o IC 6-1.1-12.1-5.1 (d)(2)the RealE state Improvements Machinery Research and Development Equipment COST of the property is confidential. Cost Assessed Value Cost Assessed Value Cost Assessed Value Currentvalues 9,460 .759 7,965 .200 32,962.963 9 ,632 070 Plus estimated values ofp roposed project 757 ,000 1 ,676,100 Less values of any property being replaced Net estimated values upon completion of project 10 217 759 34 639 063 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) Other benefits: SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature uthorized represe tive Title Date signed(month,day,y ear) FOR USE OF THE DESIGNATING BODY /'•\ We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution, passed underl C 6-1.1-12.1-2.5, pro- vides for the following limitations as authorized under IC 6-1.1-12.1-2. months A.The designated area has been limited to a period of time not to exceed_ 19_______calendar AIM * (see below). The date this designation expires is December 31_2_ 2003 B.The type of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements; ®Yes ❑ N o 2. Installation of new manufacturing equipment; ®Yes ❑ No 3. Installation of new research and development equipment; ❑Yes IN N o _ 4. Residentially distressed areas ❑Yes CR N o C.The amount of deduction applicable for redevelopment or rehabilitation is limited to$ 800,000 cost with an assessed value of$ To_be determined. D.The amount of deduction applicable to new manufacturing equipment is limited to $ 3_r700,000 ___ cost with an assessed value of$_TS)._be_cletermi nd E.The amount of deduction applicable to new research and development equipment is limited to $ N/A cost with an assessed value of$ F. Other limitations or conditions (specify)__ N/A_ 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:(sign ure and title�Cf uthoriz m tuber) Telephone number Date signed(month,d ay,year) C1.+4 �( Nancy . Mi el, Mayor (765 ) 653-3100 May 29, 2002 _ Att ste Designated body ) e a S. Jones, 140r-Treasurer Greencastle Common Council * 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 36- ( Rlip 4/co LEAR-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