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HomeMy Public PortalAboutResolution 11-2013-11 RESOLUTION NO. 2013—11 COMMON COUNCIL CITY OF GREENCASTLE,INDIANA A RESOLUTION REAFFIRMING RESOLUTION 2013 - 10 AND DECLARING AN ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION (CHIYODA USA CORPORATION) 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, Chiyoda USA Corporation has planned the economic revitalization of their operations by investing up to $7,700,000 in new manufacturing equipment to support additional operations resulting in the retention of 97 jobs at their facility. Chiyoda USA 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 May 14, 2013 and June 6, 2013, prior to the installation of new manufacturing equipment on such ,'"N real estate by Chiyoda USA 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 2013 - 10 on May 14, 2013 and advertised a public hearing for June 11, 2013; 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 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 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 11th day of June, 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: Part of the Northwest Quarter of Section 24, Township 14 North Range 4 West of the Second Principal Meridian, Putnam County, Indiana, described as follows: Commencing a the Northwest corner of Section 24, Township 14 North Range 4 West; thence South 00 degrees 52 minutes West 90.11 feet with the West line of said Section 24 to the South right-of-way line of Indiana State Road #240; thence with said South right-of-way line Southeasterly 329.70 feet on a curve to the right having a radius of 28,532.90 feet and subtended by a long chord bearing South 88 degrees 16 minutes 36 second East a distance of 329.70 feet to an iron pin and the TRUE POINT OF BEGINNING of the real estate herein described; thence continuing with said South right-of-way Southeasterly 279.11 feet on a curve to the right having a radius of 28,532.90 feet and subtended by a long chord bearing South 87 degrees 39 minutes 49 seconds East a distance of 279.11 feet to an iron pin; thence South 87 degrees 23 minutes 00 second East 799.76 feet to a concrete right-of-way monument; thence South 81 degrees 40 minutes 22 seconds East 50.25 feet to an iron pin; thence South 87 degrees 23 minutes 00 seconds East 100.00 feet to an iron pin; thence North 86 degrees 53 minutes 53 seconds East 28.21 feet to an iron pin;thence leaving the South right-of-way line of the aforesaid Indiana State Road 240, South 00 degrees 18 minutes 00 seconds West 618.97 feet to an iron pin;thence North 89 degrees 42 minutes 00 seconds West 1267.27 feet to an iron pin;thence North 01 degree 16 minutes 25 seconds East 670.70 feet with an established property fence line to the Point of Beginning. AND ALSO: Part of the Northwest Quarter of Section 24, Township 14 North Range 4 West of the Second Principal Meridian, Putnam County, Indiana, described as follows: Commencing a the Northwest corner of Section 24, Township 14 North Range 4 West; thence South 00 degrees 52 minutes West 90.11 feet with the West line of said Section 24 to the South right-of-way line of Indiana State Road #240; thence with said South right-of-way line Southeasterly 329.70 feet on a curve to the right having a radius of 28,532.90 feet and subtended by a long chord bearing South 88 degrees 16 minutes 36 second East a distance of 329.70 feet; thence leaving said South right-of-way line South 01 degrees 16 minutes 25 seconds West 670.70 feet with an established property line fence to an iron pin marking the Southwest corner of an 18.71 acre tract and the TRUE POINT OF BEGINNING of the real estate herein described; thence South 89 degrees 42 minutes 00 seconds East 1,267.27 feet to an iron pin marking the Southeast corner of said 18.71 acre tract; thence South 00 degrees 18 minutes 00 seconds West 616.17 feet to an iron pin; thence North 89 degrees 42 minutes 00 seconds West1,277.74 feet to an iron pin; thence North 01 degrees 16 minutes 25 seconds East 616.26 feet with an established property line fence to the Point of Beginning. EXCEPT: Part of the Northwest Quarter of Section 24, Township 14 North Range 4 West of the Second Principal Meridian, Putnam County, Indiana, described as follows: Commencing a the Northwest corner of Section 24, Township 14 North Range 4 West; thence South 00 degrees 52 minutes West 90.11 feet with the West line of said Section 24 to the South right-of-way line of Indiana State Road #240; thence with said South right-of-way line Southeasterly 329.70 feet on a curve to the right having a radius of 28,532.90 feet and subtended by a long chord bearing South 88 degrees 16 minutes 36 second East a distance of 329.70 feet; thence leaving said South right-of-way line South 01 degrees 16 minutes 25 seconds West 985.73 feet to the POINT OF BEGINNING of the real estate herein described;thence South 89 degrees 42 minutes 00 seconds East 1,272.62 feet; thence South 00 degrees 18 minutes 00 seconds West 301.18 feet; thence North 89 degrees 42 minutes 00 seconds West 1,277.74 feet; thence North 01 degree 16 minutes 25 seconds East 301.23 feet to the point of beginning,containing 8.82 acres of land more or less and subject to any easements, rights-of-way, and restrictions of record. Commonly known as 2200 East State Road 240 THEREFORE, the Common Council of the City of Greencastle does recommend a deduction of assessed value for a period of ten (10) 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 Chiyoda USA 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-one (21) ensuing months, June 11, 2013 to March 1, 2015. PASSED AND RESOLVED by the Common Council of the City of Greencastle at its regular meeting this 11th day of June, 2013. COMMON COUNCIL OF THE CITY OF GREE ASTLE, INDIANA insie S. ingham Adam Cohen 4141$42/-/- fili elazi Mark . Hammer Phyll' Ross ?ex,odX71)(edee.6-, i Terry J. th Approved and signed by me this l lth day of June, 2013 at`1',`-\up.m. o'clock. '\ Susan V. Murray, Mayor ATTES : Ly a R. Dunbar, Clerk-Treasurer EXHIBIT Al -7� , STATEMENT OF BENEFITS FORM SB-1 /PP ( ' -:' t PERSONAL PROPERTY x ' :A State Form 51764(R2/12-11) `. _:=1' Prescribed by the Department of Local Government Finance PRIVACY NOTICE �, 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 Chiyoda USA Corporation . Address of taxpayer(number and street,city,state,and ZIP code) 2200 State Road 240 East,Greencastle, IN 46135 1 Name of contact person Telephone number Tammy Newgent (765)653-9098 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) ,-.( Greencastle Common Council _ocation of property County DLGF taxing district number 2200 State Road 240 East Putnam 67008 Description of manufacturing equipment and/or research and development equipment ESTIMATED land/or logistical distribution equipment and/or information technology equipment. START DATE COMPLETION DATE (use additional sheets if necessary) Paint Department upgrades that will allow additional Manufacturing Equipment 02/01/2013 08/15/2013 shifts for increased production. R&D Equipment Logist Dist Equipment 1 IT Equipment SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 97 3,942,193.00 97 3,942,193.00 97 3,942,193.00 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT ! MANUFACTURING R&D EQUIPMENT LOGIST DIST IT EQUIPMENT NOTE:Pursuant to IC 6-1.1-12.1-5.1 d ( )(2)the EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values Plus estimated values of proposed project 3,000,000.00 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 guthorized representative Title Date signed(month,day,year) I iirA9- (i7ialli<4 - A. 7 12. Page 1 of 2 I 1 I • 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, 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 21 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; © Yes ❑ N o 2. Installation of new research and development equipment; ❑ Yes [ON o 3. Installation of new logistical distribution equipment. ❑ Yes 12INo 4. Installation of new information technology equipment; ❑ Yes 2 N o C. The amount of deduction applicable to new manufacturing equipment is limited to$ 3,300,000.00 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 0 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. Approved:(signature and title of authorized member) Telephone number Date signed(month,day,year) Susan V. Murray, Mayor ( 765 ) 653-3100 06/11/2013 Attested by: Designated body Lynda R. Dunbar, Clerk-Treasurer Greencastle 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 EXHIBIT A2 -*-I ;4, STATEMENT OF BENEFITS FORM SB-1 /PP :4 \ \ PERSONAL PROPERTY I a' State Form 51764(R2/12-11) " mil' Prescribed by the Department of Local Government Finance PRIVACY NOTICE ,�`\ 'i°'i-" The cost and any specific individuals 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 Chiyoda USA Corporation Address of taxpayer(number and street,city,state,and ZIP code) j 2200 State Road 240 East,Greencastle, IN 46135 i Name of contact person Telephone number j Tammy Newgent (765)653-9098 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) Greencastle Common Council -ocation of property County DLGF taxing district number I 2200 State Road 240 East 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 07/22/2013 05/31/2014 Addition of nine (9) new Injection Mold Machines R&D Equipment Logist Dist Equipment { IT Equipment SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries j Number additional Salaries 97 3,942,193.00 97 3,942,193.00 97 3,942,193.00 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 EQUIPMENT IT EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values Plus estimated values of proposed project 4,700,000.00 Less values of any property being replaced I 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 a orized representative Title P Date signed(month.day,year) I •( %covet, . E TT /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 �„� 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 21 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; © Yes El No 2. Installation of new research and development equipment; El Yes O N o 3. Installation of new logistical distribution equipment. El Yes O N o 4. Installation of new information technology equipment; El Yes 7 N o C. The amount of deduction applicable to new manufacturing equipment is limited to$ 5,200,000.00 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. El 3 years ❑ 8 years r1 El 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 IZ 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. Approved:(signature and title of authorized member) Telephone number Date signed(month,day,year) Susan V. Murray, Mayor ( 765 ) 653-3100 06/11/2013 Attested by: Designated body Lynda R. Dunbar, Clerk-Treasurer Greencastle 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