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Home My Public Portal About33-2005-33 4. rt G I t. RESOLUTION NO. 2005-33 A RESOLUTION REAFFIRMING RESOLUTION 2005-31 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.6-1.1-12.1-1,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, Lear Operations Corporation (d.b.a. Lear - Greencastle) has planned the economic revitalization of their operations by investing up to $23,900,000 in new and used manufacturing equipment to support additional operations resulting in the retention of 130 jobs and the creation of 162 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,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 October 11, 2005, prior to the installation of new manufacturing equipment on such real estate by Lear Operations 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 2005-31 on October 11, 2005 and advertised a public hearing for November 8, 2005; 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 and used 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 and used 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 8th day of November, 2005, 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 of the City of Greencastle does recommend a deduction of assessed value for a period of ten years as a result of the installation of new and used 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 twenty-eight(28)ensuing months,November 1, 2005 to February 28, 2008. PASSED AND RESOLVED by the Common Council of the City of Greencastle at a special meeting this 8th day of November, 2005. COMMON COUNCIL OF THE CITY OF GREENCASTLE, INDIANA Ya/({Russ Evans MHammer gdST /A) John A. Lanie Robert . Sedlack Thomas W. Roach Approved and signed by me this 8th day of November, 2005 at p.m. o'clock. 2(t,_k riej Nancy A.Miciael, Mayor ATTEST: /12( „- Teresa P. Glenn, Clerk-Treasurer STATEMENT OF BENEFITS EMIBIT A FORM '.,;. 1, PERSONAL PROPERTY SB - 1 / PP / State Form 51764(5-04) Prescribed by the Department of Local Government Finance INSTRUCTIONS: 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. "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 installation of the new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment,BEFORE a deduction may be approved 3. To obtain a deduction,Form 322 ERA/PPME and/or Form 322 ERA/PP Other,must be filed with the county auditor. Form 322 ERA/PPME and/or Form 322 ERA/PP Other must be filed between March 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 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 Lear Operations Corporation Address of taxpayer(street and number,city,state and ZIP code) 21557 Telegraph Road, Southfield, MI 48034 Name of contact person Telephone number Kirk L. Fisher, Tax Manager (248)447-5540 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number City of Greencastle Location of property County Taxing district 500 N. Fillmore Road, Greencastle, IN 46135 Putman 67008 Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or information technology equipment Start Date Completion Date Manufacturing Equipment 11/1/2005 12/31/2006 Lear-Greencastle's proposed project will entail the purchase and installation of new machinery equipment estimated at$21.4 million R&D Equipment and used equipment estimated at$2.5 million to produce interior Logist Dist Equipment automotive products for Daimler-Chrysler and Ford Motor Co(a detail list of equipment is not available at this time.) IT Equipment• SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 673 20,608,000.00 130 4,144,000.00 162 4,988,000.00 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&D Equipment Logist Dist Equipment• IT Equipment O Equipment COST of the property is confidential. Assessed Assessed Assessed Assessed Cost Value Cost Value Cost Value Cost Value Current values y174`49%t il,O17V/O Plus estimated values of proposed project '.a cj,pDsDO /70;000 Less values of any property being replaced 0 0 Net estimated values upon completion of project (41;6Yleefi4.57 qv 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: SECTION 6 TAXPAYER CERTIFICATION I ereby certify that the representations in this statement are true. e o uthorized repr Title Date signed(month,day,year) Tax Manager 10/ 2005 See IC 6-1.1 2.1-2. . 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,pro- vides for the following limitations as authorized under IC 6-1.1-12.1-2. e01 A.The designated area has been limited to a period of time not to exceed 28 Months calendar years* (see below). The date this designation expires is February 28, 2008 B.The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; 21 Yes ❑ N o 2. Installation of new research and development equipment; ❑ Yes EX N o 3. Installation of new logistical distribution equipment. ❑ Yes ER N o 4. Installation of new information technology equipment; ❑ Yes 4 No C.The amours of deduction applicable to new manufacturing equipment is limited to$ 24,000,000 cost with an assessed value of$ Lo be determined D.The amount of deduction applicable to new research and development equipment is limited to$ N/A cost with an assessed value of$ E.The amount of deduction applicable to new logistical distribution equipment is limited to $ N/A cost with an assessed value of$ F. The amount of deduction applicable to new information technology equipment is limited to $ N/A cost with an assessed value of$ G. Other limitations or conditions(specify) 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 after July 1,2000 is allowed for: O 1 year ❑ 6 years **For ERA's established prior to July 1,2000 only a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 8 years ❑4 years ❑ 9 years i"'—`• ❑ 5 years** Xl 10 years** 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. Appro ed:(signatule and title of au orized member) Telephone number Date signed(month,day,year) Nan A. Michael, yor 765-653-3100 November 8, 2005 Attey Designated body sa . Glenn, Clerk-Treasurer Greencastle City Council * If the designating body limits the time period during which an area is an economic revitalization 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 6-1.1-12.1-4.5