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HomeMy Public PortalAboutResolution 20-2013-20 RESOLUTION NO. 2013 —20 —74/ COMMON COUNCIL CITY OF GREENCASTLE A RESOLUTION REAFFIRMING RESOLUTION 2013-19 AND DECLARING AN ECONOMIC REVITALIZATION AREA AND RECOMMENDED TAX DEDUCTION FOR IAC GREENCASTLE, LLC WHEREAS, the laws of the State of Indiana, specifically I.C. 6-1.1-12.1, 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 investment in the City of Greencastle; and, WHEREAS, IAC Greencastle has planned the economic revitalization of their operations by investing over $5,000,000 in new manufacturing equipment to support additional operations resulting in the retention of 837 jobs and the addition of 53 jobs at their facility. IAC Greencastle seeks a tax deduction pursuant to I.C. 6-1.1-12.1, et. seq.; and, WHEREAS, a Statement of Benefits Form (Form SB-1/PP), has been submitted to the Common Council on June 25, 2013, prior to the installation of new manufacturing equipment by IAC Greencastle 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 2013-19 on June 11, 2013 and advertised for a public hearing on July 9, 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 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 COMMON COUNCIL OF THE CITY OF GREENCASTLE on this 9th day of July, 2013, pursuant to I.C. 6-1.1-12.1, 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 750 South Fillmore Road. 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 e' manufacturing equipment, all as set forth in I.C. 6-1.1-12.1-4.5. The percentage to be used in calculating the deduction shall be as follows: First Year of Deduction 100% Second Year of Deduction 90% Third Year of Deduction 80% Fourth Year of Deduction 70% Fifth Year of Deduction 60% Sixth Year of Deduction 50% Seventh Year of Deduction 40% Eighth Year of Deduction 30% Ninth Year of Deduction 20% Tenth Year of Deduction 10% Eleventh Year and Beyond 0% The Common Council of the City of Greencastle does NOT recommend a deduction or tax abatement for special tooling nor does IAC Greencastle 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 ensuing twenty (20) months, July 9, 2013 to March 1, 2015. n PASSED AND RESOLVED by the Common Council of the City of Greencastle at its regular meeting this 9th day of July, 2013. COMMON COUNCIL OF THE CITY OF GREE CASTLE, INDIANA S/F� s �, " Jin e S Bingham Adam Cohen cki iC;56614; M “ji, , yV-ee..A.,--,,,--a—i k N. Hammer Phy s Ross Ro i Q ' Terry . Sr iith Approved and signed by me this 9th day of July, 2013 aP'.�5 p.m. o'clock. Susan V. Murray, Mayor ATTEST: I Ly a R. Dunbar, Clerk-Treasurer STATEMENT OF BENEFITS FORM SB-1 /PP _ 1, PERSONAL PROPERTY State Form 51764(R2/12-11) a Prescribed by the Department of Local Government Finance PRIVACY NOTICE /810 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). STRUCTIONS: 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 IAC Greencastle, LLC Address of taxpayer(number and street,city,state,and ZIP code) 28333 Telegraph Road, Southfield, MI 48034 Name of contact person Telephone number Ms. Claudia Obermueller (248)455-7000 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) �.. Putnam County Common Council .ation of property County DLGF taxing district number 750 South Fillmore Road, Greencastle, IN 46135-7322 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 See Attached Manufacturing Equipment 07/01/2013 12/31/2013 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 Number additional Salaries 13So,,rijo 837 27,176,235.00 837 27,176,235.00 53 tli!Mtae:fle- 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 IT EQUIPMENT EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values 23,779,176.00 2,125,542.00 Plus estimated values of proposed project 5,276,288.00 1,952,685.00 Less values of any property being replaced Net estimated values upon completion of project 29,055,464.00 4,078,227.00 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 11 I hereby certitfy that the representations in this statement are true. Si natu of authorized re,presentativ- C � - Title Date sign d(month,day,year) 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 t'1 authorized under IC 6-1.1-12.1-2. A.The designated area has been limited to a period of time not to exceed 20 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 N o 3. Installation of new logistical distribution equipment. ❑ Yes l N o 4. Installation of new information technology equipment; ❑ Yes 7 N o C. The amount of deduction applicable to new manufacturing equipment is limited to$ 5,800,000.00 cost with an assessed value of $ rat) . D. The amount of deduction applicable to new research and development equipment is limited to$ 0.00 cost with an assessed value of $ . E.The amount of deduction applicable to new logistical distribution equipment is limited to$0.00 cost with an assessed value of $ . F. The amount of deduction applicable to new information technology equipment is limited to$0.00 cost with an assessed value of $ . G. Other limitations or conditions(specify) Any tooling included in total cost is not eligible for abatement. 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 en's ❑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? 2 Yes ❑No If yes,attach a copy of the alternative deduction schedule to this form. :e-e 7-70t J Za!p^ Z 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 V.(signature and till • r 1\ ) Telephone number Date signed(month,day,year) lit —t � ( 765 ) 653-3100 07/09/2013 tte d by: Desig d body Lynda R. Dunbar, Clerk-Treasur /71 Greenca Common Council *If the designating body limits the time period during which an area is an economic revitalization rea,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- . -4.5 Page 2 of 2 ATTACHMENT#1 • IAC GREENCASTLE, LLC STATEMENT ATTACHED TO AND MADE PART OF FORM SB-1 /PP STATE OF BENEFITS PERSONAL PROPERTY DESCRIPTION OF THE PROJECT FOR WHICH THE EXEMPTION IS SOUGHT I International Automotive Components Group North America, Inc. ("IAC") is a leading global supplier of automotive components and systems, including door and trim systems, instrument panels, consoles and cockpits, flooring and acoustics systems and headliner and overhead systems, as well as complementary exterior components. Our products are designed to improve comfort& convenience, utility and safety in vehicle interiors. We provide customers with unparalleled manufacturing reach and ability. Our approach is solution-based, innovative and built on stringent best practices and commitment to the success of our customers in the global marketplace. IAC Greencastle, LLC is a subsidiary of IAC. This investment is being made by IAC Greencastle to keep up with the latest technology advancements as well as to meet A►, customer demands, thus allowing IAC to remain competitive in the marketplace. IAC's competitive position and the security of its employees depend on continuous growth and improvement. /"' 4, , c ATTACHMENT#2 IAC GREENCASTLE LLC STATEMENT ATTACHED TO AND MADE PART OF III FORM SB-1/PP STATEMENT OF BENEFITS PERSONAL PROPERTY EQUIPMENT LISTING ESTIMATED DATE OF ESTIMATED CATEGORY DESCRIPTION INSTALLATION COST Pool 2 GC-screw and barrel upgrade for 1500T 7/1/2013 $ 50,000 GC-screw and barrel upgrade for 300T 7/1/2013 $ 25,000 RH Extension Pond install Clips-Machine 29 7/1/2013 S 17,750 LH Extension Panel Install Clips-Machine 30 7/1/2013 $ 17,750 Armrest,base hinge,cover-Torque Station-Machine 10 7/1/2013 $ 49,500 End Cap Bin Door-Machine 14 7/1/2013 S 38,216 End Cap Heat stake-Machine II 7/1/2013 $ 75,000 1 End Cap Trim,Clips-Machine 20 7/1/2013 $ 31,975 Main Console Pre-build-Machine 1 7/1/2013 S 12,350 IR Weld the Main consle w/Duct-Machine 2 7/120I S E 107,550 Install Push rum to Main console structure-Machine 3 7/1/2013 S 48,300 TFP Storage Bin Assembly Station-Machine 26 7/1/2013S 44,880 TFP Torque Station-Machine 24 7/1/2013 $ 33,750 Station A-Machine 18 7/1/2013 S 12,687 Station C-Machine 17 7/1/2013 $ 10,880 Station E-Machine 12 7/1/2013 S 12,928 Station G-Machine 2.5 7/1/2013 $ 15,000 Station I-Machine 28 7/1/2013 $ 12,950 Station M-Machine 27 7/1/2013 S 11,584 Station N-Machine 19 7/1/2013 $ 10,725 Station 0-Machine 7?? 7/1/2013 $ 10,000 Fin Frt-"snow plow"clips-New Add 7/1/2013 S 42,931 TFP Bin Door Heat Stake-Machine 55 New Add 7/1/2013 E 47,950 TFP Final Heatstake-Machine 54 New Add 7/1/2013 I 69,300 RR DR Effort/Speed Test 7/1/2013 $ 35,000 FR DR Effort test 7/1/2013 S 35,000 Weld Integrity LID 7/1/2013 $ 5,000 Weld integrity Duct 7/1/2013 $ 5,000 Arm rest Foam softness 7/1/2013 $ 44,653 Arm Rest open/close effort 7/1/2013 E 35,000 Cupholder effort test 7/1/2013 $ 35,000 Stake Depth Measurement 7/1/2013 $ 42,000 GC-Refurnish 1500T 7/1/2013 S 415,000 Sonic Weld Reinf to Top Roll FR-LH&RH#6 10/1/2013 S 77,000 Sonic Weld Reinf to Top Roll RR-Lh&RH#6 10/1/2013 E 77,000 4-up Punch/pierce FR.LH&RH,RR-LH&RH#7 10/1/2013 $ 320,000 FR-LH&RH Edgexrap(Vinyl and Leather)#8 10/1/2013S 140,000 RR-LH&RH Edgewrap(Vinyl and Leather)#8 10/1/2013 $ 140,000 FR-LH&RH Touch up table#9 10/1/2013 E 4,500 RR-LH&RH Touch up table#9 10/1/2013 $ 4,500 FR Switch Bezel Clip Machine LH 10/1/2013 $ 13,621 FR Switch Bezel Clip Machine RH 10/1/2013 $ 13,621 RR Switch Bezel Clip Machine LH 10/1/2013 S 21,875 RR Switch Bezel Clip Machine RH 10/1/2013 $ 21,875 FR Switch Bezel Torque station LH 10/1/2013 $ 13,700 RR Switch Bezel Torque station LH 10/1/2013 $ 13,700 FR,Pm-kit nest LH 10/1/2013 I 2,500 FR-Pre-kit nest RH 10/1/2013 $ 2,500 RR-Pre-kit nest LH 10/1/2013 E 2,500 RR-Pre-kit nest RH 10/1/2013 S 2,500 FR DR LH Heatstake I 10/1/2013 S 69,051 FR DR RH Heatstake 1 10/1/2013 $ 69,051 FR DR LH Heatstake 2 10/1/2013 I 63,675 FR DR RH Heatstake 2 10/1/2013 $ 63,675 RR DR LH Heatstake 1 10/1/2013 $ 65,334 RR DR RH Healstake I 10/1/2013 E 65,334 RR DR LH Heatstake 2 10/1/2013 $ 76,875 RR DR RH Heatstake 2 10/1/2013 $ 76,875 FR DR Electrical Test LH#25 10/1/2013 S 22,490 FR DR Electrical Test RH#25 10/1/2013 $ 22,490 RR DR Electrical Test LH#25 10/1/2013 $ 22,490 RR DR Electrical Test RH#25 10/1/2013 $ 22,490 FR DR Torque Station LH Applique&Armrest 10/1/2013 $ 17,225 FR DR Torque Station RH Applique&Armrest 10/1/2013 E 17,225 FR Final Assembly Inspection/bag loader LH 10/1/2013 $ 3,250 FR Final Assembly Inspection/bag loader RH 10/1/2013 S 3,250 RR Final Assembly.Inspection/bag loader LH 10/1/2013 $ 3,250 RR Final Assembly Inspection'bag loader RH 10/1/2013 S 3,250 FR Arm Rest Heat stake to/1/2013 $ 70,000 • RR Arm Rest Heat stake 10/1/2013 $ 70,000 FRNVH Welder(LH&RH) 10/1/2013 $ 214,000 RR NVH Welder(LH&RH) 10/1/2013 S 214,000 allek GC-Wip 10/1/2013 $ 67,000 GC-Packaging 10/1/2013 S 1,283,820 Trunnion line pick lights 10/1/2013 S 52,700 ILVS Software 10/1/2013 $ 58,000 GC-Internal WIP 10/1/2013 $ 80,000 GC-Assembly Wip 10/1/2013 $ 40,000 GC-Component Pacakging(Incoming) 10/12013 $ 107.487 f\ Total Pool 2: S 3,587,281 \ Total Tooling: $ 1,689,007 Total All Personal Property: S 5,276,288