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HomeMy WebLinkAboutResolution CC-03-07-16-02 MISO Preliminary ResolutionSponsors: Councilors Carter, Finkam, Kimball and Rider RESOLUTION NO. CC -03-07-16-02 A PRELIMINARY RESOLUTION DESIGNATING AN ECONOMIC REVITALIZATION AREA FOR MIDCONTINENT INDEPENDENT SYSTEM OPERATOR, INC., AND ESTABLISHING A PUBLIC HEARING Synopsis: A preliminary resolution that designates the real estate located at 701 and 720 City Center Drive, Carmel, Indiana as economic revitalization areas and grants a partial abatement of property taxes attributable to certain eligible equipment installed on the real estate. WHEREAS, Indiana Code 6-1.1-12.1 (the "Act") allows a partial abatement of property taxes attributable to the installation of certain equipment in "economic revitalization areas"; and, WHEREAS, the Act provides that an economic revitalization area must be a geographic area which is within the corporate limits of a city and which has become undesirable for, or impossible of, normal development and occupancy because of lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard building or other factors which have impaired values or prevent a normal development of property or use of property; and, WHEREAS, the Act authorizes the Common Council of the City of Carmel, Indiana ("the Council") to designate economic revitalization areas by following a procedure involving adoption of a preliminary resolution, publication of a notice of a public hearing, conducting a public hearing and adoption of a final resolution confirming the preliminary resolution; and, WHEREAS, the Council believes that it is in the best interests of the citizens of the City of Carmel (the "City") to create an economic revitalization area designation in a manner whereby citizens of the City of Carmel will benefit from the creation of permanent jobs, expansion of the property tax base, and protection of private investment; and, WHEREAS, Midcontinent Independent System Operator, Inc., ("the Company"), has filed a Statement of Benefits, Form SB -1 with the City of Carmel; WHEREAS, the Company is requesting that the real estate located at 701 and 720 City Center Drive, Carmel, Indiana (the "Project Site") be designated as an Economic Revitalization Area for the purpose of achieving property tax savings in connection with the acquisition and installation of certain depreciable personal property ("the Project") at the Project Site; and, WHEREAS, the Project Site is shown on Exhibit A, and is presently part of Hamilton County Tax Parcels 16-09-36-00-20-001.000 and 16-09-36-00-30-001.000; and, WHEREAS, the Company anticipates installing approximately Two Million Five Hundred Thousand Dollars ($2,500,000) of new information technology equipment, (all of which is hereinafter referred to as "Eligible Personal Property"); and, WHEREAS, the Company anticipates adding approximately eighty-four (84) new employees compensated at an average annual wage of One Hundred Thousand Dollars ($100,000) per year (excluding benefits) as a result of the Project. These new jobs are in addition to the seven hundred and five (705) employees which will be retained in connection with the Project. BASED UPON THE ABOVE, IT IS THEREFORE RESOLVED, by the Common Council of the City of Carmel as follows: 1. The application for economic revitalization area designation relative to the Project was filed in proper form and the Statement of Benefits, Form SB -1, which was filed as of January 28, 2016, is hereby approved by the Council. 2. The Project Site is located in an area of the City where municipal services are provided and no additional infrastructure will be necessitated by the Project. 3. There is evidence provided which establishes that the subject real estate meets with "undesirable for normal development" criterion of Indiana Code 6-1.1-12.1-1 due to the following conditions: a. The Project Site is zoned for and is generally suitable for the proposed use of commercial office; however, given the age of the facility at the Project Site and the complexity of the technology systems being installed at the site, and security systems and structures required, investment in the Eligible Personal Property will require significant additional investment in real property improvements to accommodate the Project. b. The proposed use of the Project Site as a corporate headquarters for the Company is consistent with the site's existing development pattern and represents a superior use for the Project Site. 4. Evidence has been submitted and considered which tends to establish that the Project will further and promote municipal development objectives by expansion of the property tax base through the purchase and installation of the Eligible Personal Property. 5. The Council hereby designates the Project Site as an Economic Revitalization Area for purposes of establishing a deduction to the assessed value of Eligible Personal Property acquired and installed within the building located upon the Project Site, subject to the adoption of a confirmatory resolution by the Council. 6. The deduction provided by this Resolution shall be for the assessed value of all Eligible Personal Property installed at the Project Site on or prior to January 1, 2021, and for a period of ten (10) years from the date of the first full assessment of the Eligible Personal Property located at the Project Site. The Council hereby finds, declares and determines that deductions from the assessed value of the Eligible Personal Property approved by this Resolution shall be allowed pursuant to the following ten (10) year phase-in deduction schedule, which the Common Council hereby establishes, prescribes and adopts: YEAR OF DEDUCTION PERCENTAGE OF DEDUCTION 1St 100% 2nd 90% 3rd 80% 4th 70% 5th 60% 6th 50% 7th 40% 8th 30% 9th 20% 101 10% 11th 0% 7. In support of the deductions contained in this Resolution, the Council makes the following FINDINGS: a. The Project meets the parameters set forth in Council Resolution No. CC -02- 05-01-02. b. The estimated cost of the Eligible Personal Property investment presented by the Company is reasonable for equipment of that type. c. The estimate of the number of individuals who will be employed or whose employment will be retained by the Company can be reasonably expected to result from the installation of the Eligible Personal Property. d. The annual salaries for the individuals who will be employed or whose employment will be retained by the Company can reasonably be expected to result from the installation of the Eligible Personal Property. e. Based on the increased assessed valuation and the expansion of the employment base within the City of Carmel, the benefits to the City are sufficient to justify the granting of the deduction described in Section 6 above. 8. The terms of this Resolution are subject to the adoption of a Final Resolution confirming the terms and conditions herein after a public hearing to be held on [March 21, 2016, at 6:00 p.m.], in the Council Chamber Room located at One Civic Square, Carmel, Indiana 46032. 9. The deductions provided by this Resolution are subject to the Company's compliance with the terms of Indiana Code 6-1.1-12.1 and may only be modified or terminated by the City by following the procedures contained in Indiana Code 6-1.1-12.1-5.9. 10. A copy of this Resolution shall be filed with the Hamilton County Assessor as required by I.C. 6-1.1-12.1-2.5. �PASSED by the Common Council of the City of Carmel, Indiana this I day of , 2016, by a vote of bayes and j- nays. ON COUNCIL OF THE CITY F CA EL S evin Rider Erol Schleif Bruce Kimball AT,/I ITr f` lifistine S. Paul Clerk -Treasurer PYsnt d y me to the Mayor of the City of 2016, at� Laura Campbell A proved by me, Mayor of the City of Carm;Jes ana this 00day of k/ , 2016, at W.m.— S'3O Brainard, Mayor Prepared by: Larry Gigerich Ginovus 8888 Keystone Crossing Suite 1450 iF ;�,, • + A T tl, NoQy PRIk% rte � L� 1.`` t• " f S � 'R� p H 1s Parcel No: 16-09-36-00-30-001.000 Address: 720 City Center Dr City: Carmel Zip: 46032 _