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HomeMy Public PortalAboutResolution 03-2013-3 • „� RESOLUTION NO. 2013 - 3 A RESOLUTION REAFFIRMING RESOLUTION 2013 - 1 AND DECLARING AN ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION (HEARTLAND AUTOMOTIVE LLC - NEW EQUIPMENT) 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 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 up to $5 million in new manufacturing equipment 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 of Benefits on State Form 51764 (Form SB-1/PP) said form approved by the State Board of Tax Commissioners, has been submitted to the Common Council on March 1, 2013,prior to the 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 2013-1 on January 8,2013 and advertised a public hearing for March 12, 2013; 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 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 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 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 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 March, 2013, 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 ten (10) 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 resolution and during the twenty-four(24)ensuing months,March 12,2013 to March 1, 2015. PASSED AND RESOLVED by the Common Council of the City of Greencastle at its regular meeting this 12th day of March, 2013. COMMON COUNCIL OF THE CITY OF GREENCAST , INDIANA Ji sie S. Bingham Adam/Cohen MarkKi . mmer Phy Ross Ro icki Terry J nith �-► Approved and signed by me this 12th day of March, 2013 at \‘`` p.m. o'clock. /D s sJ Susan V. Murray, Mayor ATTEST: L da R. Dunbar, Clerk-Treasurer • i STATEMENT OF BENEFITSFORM SB-1 /PPto ;_ PERSONAL PROPERTY al State Form 51764(R2/12-11) °���•i Prescribed by the Department of Local Government Finance PRIVACY NOTICE /bs The cost and any specific individual's salary information is confidential;the balance of the filing is public record per IC 6-1.1-12.1-5.1(c)and(d). INSTRUCTIONS: 1. 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,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 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 is installed and fully functional, 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/PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 5. The schedules established under IC 6-1.1-12.1-4.5(d)and(e)apply to equipment installed after March 1, 2001,unless an alternative deduction schedule is adopted by the designating body(IC 6-1.1-12.1-17). SECTION 1 TAXPAYER INFORMATION Name of taxpayer Heartland Automotive, LLC Address of taxpayer(number and street,city,state,and ZIP code) 300 South Warren Drive Greencastle, IN 46135 Name of contact person Telephone number Ritsuko Murakami Abrams-Business Project Manager (765)848-1833 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) ,,owlets Greencastle City Council 2013-1 and 2013-3 Location of property County DLGF taxing district number 300 South Warren Drive 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 Manufacturing Equipment 04/01/2013 06/30/2014 2 injection molding machines; 1 slush molding machine; 2 interior paint boots; 1 headliner stamping machine; and R&D Equipment ancillary equipment Logist Dist Equipment IT Equipment SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 405 14,313,725.00 405 14,313,725.00 0 0.00 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 E PMENT R&D EQUIPMENT LOGIST DIST IT EQUIPMENT COST of the property is confidential. EQUIPMENT COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values Plus estimated values of proposed project 4,000,000.00 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: SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representativ Title Date signed(month,day,year) President 03/01/2013 Page 1 of 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 0"1 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 24 months calendar years*(see below). The date this designation expires is March 1,2015 B.The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; 0 Yes ❑ N o 2. Installation of new research and development equipment; ❑ Yes © No 3. Installation of new logistical distribution equipment. ❑ Yes © N o 4. Installation of new information technology equipment; ❑ Yes © N o C. The amount of deduction applicable to new manufacturing equipment is limited to$ 5,500,000.00 cost with an assessed value of D. The amount of deduction applicable to new research and development equipment is limited to$ cost with an assessed value of E.The amount of deduction applicable to new logistical distribution equipment is limited to$ cost with an assessed value of F. The amount of deduction applicable to new information technology equipment is limited to$ 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 on or after July 1,2000,is allowed for: ❑ 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 ❑ 5 years** 10 years** I. Did the designating body adopt an alternative deduction schedule per IC 6-1.1-12.1-17? ❑Yes ❑No If yes,attach a copy of the alternative deduction schedule to this form. 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. Approv natureNd title of a rized member) Telephone number Date signed(month,day,year) J ( 765 ) 653-3100 03/12/2013 Attested by: Designated body Lynda Dunbar, Clerk-Treasurer eencastle Common 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 Page 2 of 2