The URL can be used to link to this page

Home My Public Portal About40-2003-40 SCANNED RESOLUTION NO. 2003 - 40 A RESOLUTION REAFFIRMING RESOLUTION 2003-16 AND DECLARING AN ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION (HEARTLAND AUTOMOTIVE LLC-NEW EQUIPMENT) WHEREAS,the laws of the State of Indiana, specificallyl.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$11,000,000 in new manufacturing equipment and$20 million in new tooling 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 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 July 31, 2003, prior to the redevelopment or rehabilitation and 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 2003-16 on May 13,2003 and advertised a public hearing for August 12, 2003; 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 redevelopment or rehabilitation, expansion 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 CITY OF GREENCASTLE on this 12th day of August, 2003, 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 J D 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 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 ordinance and during the eighteen(18) ensuing months, August 12, 2003 to March 1, 2005. PASSED AND RESOLVED by the Common Council of the City of Greencastle at its special meeting this 12th day of August, 2003. COMMON COUNCIL OF THE CITY OF GREENCASTLE, INDIANA /dr:///61/a441-1-ak.._ Mark 1 . Hammer Joe M. Leichty ,20-4 Thomas W. Roach Mi e Rokicki Rolert Sedlack Approved and signed by me this 12th day of August, 2003 at Sig, p.m. o'clock. ,),,C) Nancy A. Mi hael,Mayor AT LM--/iLter Pamela S. Jones, Clerk r asurer STATEMENT OF BENEFITS FORM tr .s; rqt State Form 27167(R7/12-01) S B• 1 Prescribed by the Department of Local Government Finance INSTRUCTIONS: 1. This statement must be submitted to the body designating the economic revitilization area prior to 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,etc.)must be obtained prior to initiation of the redevelopment or 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,Form 322 ERA,Real Estate improvements and I or Form 322 ERA/PPME and/or 322 ERA l PPR&DE,must be filed with the county auditor. With respect to real property,Form 322 ERA must be filed by the later of: (1)May 10;or(2)thirty(30)days after a notice of increase in real property assessment Is received from the township assessor. Form 322 ERA/PPME and I or 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 the extended due date of that year. 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 of Benefits. (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 Heartland Automotive, LLC Address of taxpayer(street and number,city,state and ZIP code) 300 South Warren Drive Greencastle, IN 46135 Name of contact person Telephone number Kazushi Obara - VP/Treasurer (765 )653-4263 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Greencastle Common Council Location of property County Taxing district 300 South Warren Drive Putnam City of tlreennastle Description of real property improvements and/or new manufacturing equipment and/or ESTIMATED research and development equipment(use additional sheets if necessary) Start Date Completion Date Real Estate See attached list for equipment New Mfg Equipment 9/03 9/04 R&DE SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 444 12 233 000 444 12 233 000 40 832 III SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE:Pursuant to IC 6-1.1-12.1-5.1 (d)(2)the Real Estate Improvements Machinery Research and Development COST of the property is confidential. Equiement p p Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values 42,522,000 Plus estimated values of proposed project 11,000,000 Less values of any property being replaced Net estimated values.upon complé$oñ of project 53 522 000 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) n a Estimated hazardous waste converted(pounds) n/a Other benefits: Additional investment of $20 million in new molds and tooling. Note : Costs of machinery are as of June 30, 2003 . Payroll information is as of June 30, 2003 . Costr'does not includes molds & toolin: . SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of auth ri ed representative Title Date signed(month,day,year) VP/Treasurer July 31 , 2003 Heartland Automotive, LLC. Investment for Full Model Change Attachment to Statement of Benefits July 31, 2003 To meet the full model change of the current car for our main customer, SIA, in the next year 2004, we will have the following estimated capital investment expenditures. 1)Molds $20,000,000 2)Machinery/Equipment $11,000,000 a)Injection molding machines (2) $3,000,000 b)Upgrade of injection molding machines $1,000,000 c)Paint facility $1,000,000 d)Rack $1,000,000 e) Other machinery/equipment $5,000,000 Notes: Machinery and equipment are considered Pool 3 with an asset life of 9 to 12 years. The upgrade of injection molding machines will extend the life of this asset. • ;-::;;,;:,,..:;::.::::.::..:.:.:. ..::..:; • E DESIGNATING BODY We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5, pro- vides for the following limitations as authorized under IC 6-1.1-12.1-2. EIGHTEEN .MO.NTHS „ A.The designated area has been limited to a period of time not to exceed ca en ar years (see below). The date this designation expires is March 1 , 2005 B.The type of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements; ❑ Yes Er.I N o 2. Installation of new manufacturing equipment; CR Yes ❑ No 3. Installation of new research and development equipment; 0 Yes 0 N o 4. Residentially distressed areas 0 Yes El N o C.The amount of deduction applicable for redevelopment or rehabilitation is limited to$ N/A cost with an assessed value of$ D.The amount of deduction applicable to new manufacturing equipment is limited to$ 11 ,000 ,000 _cost with an assessed value of$ TBD 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) Manufacturing equipment only; tooling not included . 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 pf authonz em r) Telephone number Date signed(month,day,year) Nancy A. Michael, Mayor (765 )653-3100 August 12 , 2003 Attested by: Designated body Pamela S . Jones , Clerk-Treasurer Greencastle Common Council Oak *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