HomeMy WebLinkAboutCC-06-05-17-01 Preliminary Resolution for Schlage Lock CompanySponsors: Councilors Carter, Finkam, Green, Kimball,
Rider, and Worrell
RESOLUTION NO. CC -06-05-17-01
A PRELIMINARY RESOLUTION DESIGNATING AN ECONOMIC
REVITALIZATION AREA FOR SCHLAGE LOCK COMPANY, LLC,
AND ESTABLISHING A PUBLIC HEARING
Synopsis: A preliminary resolution that designates the real estate located at 11805 and 11819
North Pennsylvania Street, Carmel, Indiana as an economic development revitalization area 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 will benefit from the creation of permanent jobs, expansion of the property tax
base, and protection of private investment; and,
WHEREAS, Schlage Lock Company, LLC ("the Company"), has filed a Statement of
Benefits, Form SB -1 with the City;
WHEREAS, the Company is requesting that the real estate located at 11805 and 11819
North Pennsylvania Street, Carmel, Indiana (collectively, 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 16-09-35-00-01-006.001 and 16-90-00-00-27-000.000; and,
WHEREAS, the Company anticipates installing approximately Two Million Dollars
($2,000,000) of new computer hardware, telecommunications equipment, information
technology equipment, and equipment used for research and development or engineering
purposes (all of which is hereinafter referred to as "Eligible Personal Property"); and,
WHEREAS, the Company anticipates adding approximately one hundred twenty-five
(125) new employees compensated at an average annual wage of approximately Eighty Three
Thousand Dollars ($83,000) per year (excluding benefits) as a result of the Project. These new
jobs are in addition to the two hundred eighty-five (285) existing employees which will be
retained in connection with the Project; and,
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 May 1,
2017, 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. Proposed improvements to the Project Site are necessary for the Company
to install and operate the Eligible Personal Property. The current condition
of the building is sub -standard due to its age, configuration, and
advancements in technology, and would materially affect the company's
ability to operate the Eligible Personal Property at the Project Site.
b. The installation of Eligible Personal Property and the operation of the site
as an expanded headquarters is consistent with the site's existing zoning
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 December 31, 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
1 St
100%
2nd
90%
3rd
80%
4th
70%
5th
60%
6th
50%
7th
40%
8th
30%
9th
20%
IOth
10%
7. In support of the deductions contained in this Resolution, the Council finds as,
follows:
a. The estimated cost of the Eligible Personal Property investment presented by
the Company is reasonable for equipment of that type.
b., 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.
c. 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.
d. 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. In partial consideration of the deductions granted to the Company by the City, the
pa-5me(
Company has agreed that during the time periods for which KProperty tax deductions are
authorized under this Resolution (the "Tax Phase -In Period") the Company will not file any real
property tax assessment appeal, review, or challenge ("Appeal") of the real property assessments
made at the Project Site unless such annual assessed value of the Project Site increases by more
than 3% above the 2016 Pay 2017 assessed value. In the event the Company does file such an
Appeal, the City shall have the right to terminate any remaining property tax deductions
authorized under this Resolution. In the event the Company ceases operations in the City during
the Tax Phase -In Period, the Company shall be required to pay back any tax phase-in savings
received to date from deductions authorized by this Resolution.
9. 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 June 19, 2017, at
6:00 p.m., in the Council Chamber Room located at One Civic Square, Carmel, Indiana 46032.
10. 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.
11. 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.
Adopted by e Common Cuncil of the City of Carmel, Indiana this 5�day of
2017, by a vote of ayes and nays.
COMMON COUNCIL OF THE CITY,0F qARMEL
Sue in m, Pres# nt Kevin Rider, Vice President
Bruce Kimball o ell
Laura Campbell Anthony Green
ATT
hristine S. Paule , Clerk -Treasurer ff
Presented by me to the Mayor of the Cit}
2017, at 10 130 A .m.
Approved by me, Mayor of the City of Carmel, Indiana this 6_7 day of
2017, at m. ,J
f
roes Brainard, Mayor
n n �
istine S. Paulev/Clerk-Treasurer
Prepared by: Larry Gigerich
Ginovus
9 Municipal Drive
Suite 1
Fishers, Indiana 46038
317-819-0890
LaLry@ginovus.com
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EXHIBIT B
NOTICE OF ADOPTION REGARDING THE APPROVAL OF A
TEN-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
SCHLAGE LOCK COMPANY, LLC
LOCATED AT 11805 AND 11819 NORTH PENNSYLVANIA STREET
Notice is hereby given that the Common Council of the City of Carmel, Indiana did on the 5th of
June, 2017 adopt a Resolution approving a ten-year personal property tax abatement for Schlage
Lock Company, LLC, for its investment in new equipment relative to the expansion of its
corporate headquarters campus located at 11805 and 11819 North Pennsylvania Street. This
Resolution, which affects the following described property located in the City of Carmel,
Indiana: 11805 and 11819 North Pennsylvania Street, Clay Township, was adopted following the
filing of information by Schlage Lock Company, LLC and the previous approval of the
designation of property located at 11805 and 11819 North Pennsylvania Street, as an Economic
Revitalization Area for the purpose of securing abatement of property taxes pursuant to Indiana
Code Section 6-1.1-12.1-4 relative to the installation of new qualifying information technology,
computer hardware, telecommunications, research & development and/or engineering
equipment.
Such Resolution previously approving such property as an Economic Revitalization Area and
such Resolution approving a ten-year personal property tax abatement for Schlage Lock
Company, LLC were provided by the Common Council of the City of Carmel, Indiana on the 5th
of June, 2017. Furthermore, the Resolution states that on the 19th of June, 2017, at 6 p.m. in the
Council Chamber Room located at One Civic Square, Carmel, Indiana 46032, the Common
Council met to hear public comment from persons interested in these proceedings and make a
determination about approving a ten-year personal property tax abatement for Schlage Lock
Company, LLC for its investment in new qualifying information technology, computer hardware,
telecommunications, research & development and/or engineering equipment. A description of
information related to the Schlage Lock Company, LLC project and a copy of such Resolutions
are available for inspection in the Hamilton County Assessor's Office, Suite 214, 33 North 9th
Street, Noblesville, Indiana 46060.