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HomeMy WebLinkAboutCC-10-02-17-03 Flywheel Healthcare, LLC Abatement TerminationSPONSORS: Councilors Finkam and Worrell RESOLUTION CC 10-02-17-03 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, ACCEPTING THE VOLUNTARY TERMINATION OF THE PERSONAL PROPERTY TAX ABATEMENT GRANTED TO FLYWHEEL HEALTHCARE, LLC Synopsis: Per the request of Flywheel Healthcare, LLC, this Resolution terminates the personal property tax abatement granted to Flywheel Healthcare, LLC by the City in 2011. WHEREAS, Flywheel Healthcare, LLC, d/b/a Young at Heart (the "Company") operates a facility located at 101 W. 103rd Street, in Carmel, Indiana (the "Facility"); and WHEREAS, under I. C. 6-1.1-12.1-2.5 and I.C. 6-1.2-12.1-4.5, the Common Council of the City of Carmel, Indiana (the "Council") may designate an area as an Economic Revitalization Area ("ERA") and determine the duration of the tax abatement period(s) for such property; and WHEREAS, in 2011, the Company filed an Indiana Statement of Benefits Personal Property form. (the "SB -1 Form") certifying therein the number of additional employees and their average salaries (the "Commitments") that would be added at the Facility should it receive a partial personal property tax abatement and install certain logistical distribution and information technology equipment (the "Equipment") in the Facility. A partially redacted copy of the Company's SB -1 Form is attached hereto and incorporated herein by this reference as Exhibit A; and WHEREAS, in reliance on the Commitments, the Council, through its Resolutions No. CC -05- 16-11-01 and No. CC 06-06-11-01 (individually and collectively, the "2011 Resolutions"), designated the Facility as an ERA and approved a 10 -year partial personal property tax abatement (the "Tax Abatement") for the Equipment; and WHEREAS, per its letter dated July 19, 2017, which is attached hereto and incorporated herein as Exhibit B, the Company will voluntarily relinquish the remainder of its Tax Abatement beginning in calendar year 2018; and WHEREAS, as a result of the Company's request, the Tax Abatement previously authorized and provided to the Company in 2011 is hereby terminated for the remaining scheduled years beginning in 2018. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Carmel, Indiana, as follows: Section 1. The foregoing Recitals are incorporated herein by this reference. Resolution CC 10-02-17-03 Page One of Two Pages This Resolution was prepared by Jon A. Oberlander, Senior Assistant City Attorney, on 9/20/17 at 11:35 a.m. No subsequent revision to this Resolution has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. S:\Resolutions-CCC12017K:C-10-02-17-03 Flywheel Tax Abatement Termination Resolution. clean.doc SPONSORS: Councilors Finkam and Worrell Section 2. The Tax Abatement previously approved and provided to the Company pursuant to the 2011 Resolutions should be and the same is hereby TERMINATED for the remainder of the scheduled years of the Tax Abatement beginning in the calendar year 2018. Section 3. The Clerk -Treasurer is directed to mail a certified copy of this Resolution to Flywheel Healthcare, LLC, the Hamilton County Auditor, and the Hamilton County Assessor. Section 4. This Resolution shall be effective from and after its passage and approval by the Mayor. O RESOLVED by the Common Council of the City of Carmel, Indiana this Z �/day of © C a b -f V , 2017, by a vote of _ayes and _nays. COMMON COUNCIL FOR THE CLTY OF Kevin D. Rider, Vice President Laura Campbell 55A56dd­E. Carter A T Chrli'stine S. Pauley, erk-Treasurer H. Bruce Kimball JeAyell C Presented by me to the Mayor of the City of Carme , a this 3fa�d f © Cf0 i) Q✓- 2017, at 0 14_.M. Chnstine S. Pauley Jerk-Treasur Approved by me, Mayor of the City o Carmel, Indiana, this / of be /3G%Z 2017, at 8�y� /.�.M.2a • J es Brainard, Mayor A S C�nstine S. Pauley, C rk-Treasurer Resolution CC 10-02-17-03 Page Two of Two This Resolution was prepared by Jon A. Oberlander, Senior Assistant City Attorney, on 9/20/17 at 11:35 a.m. No subsequent revision to this Resolution has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. S:Utesolutions-CCC%2017%CC-10-02-17-03 Flywheel Tax Abatement Termination Resolution. clean.doc STATEMENT OF BENEFITS e PERSONAL PROPERTY qState Form 51764 (R/ 1-06) '•' Prescribed by the Department of Local Government Finance INSTRUCTIONS: FORM SB -1 ! PP PRIVACY NOTICE The cost and any specific individual's salary information is confldential; the balance of the filing is public record per IC 6-1.1-12.1-5.1 c and d). 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. The 103 -ERA must be riled 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. (IC6-1.1-12.1-5.6) 5. The schedules established under IC 6-1.1-12.1-4.5(d) and (e) apply to equipment Installed after March 1. 2001. For equipment installed prior to March 2, 2001, the schedules and statutes in effect at the time shall continue to apply. (IC 6-1.1-12.1-4.5(t) and (g)) Name of taxpayer Flywheel Healthcare, LLC, d/b/a Young at Heart Address of taxpayer (number and street, city, state, and ZIP code) 101 W. 103rd Street, Carmel, IN 46290 _ Name of contact person Telephone number Erik Young (866) 308-4990 Name of designating body Resolution number (s) COMMON COUNCIL OF THE CITY OF CARMEL CC 04-04-11-_ Location of property County DLGF taxing district number 101 W. 103rd Street, Carmel, IN 46290 Hamilton 29-017 Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or Information technology equipment. START DATE COMPLETION DATE (use additional sheets if necessary) Logistics and IT equipment to support corporate HQ and Manufacturing Equipment pharmaceutical distribution operations. R & D Equipment Logist Dist Equipment 03/01/2011 12/31/2015 IT Equipment 03/01/2011 12/31/2015 16101 1 Current number Salaries Number retained Salaries Number additlonal I Salaries 12 626,673.54 12 626,673.54 106 5,300,000.00 • • • • • • ••• • - • NOTE: Pursuant to IC 6-1.1-12.1-5.1d 2 MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT ( ) �) 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 Less values of any property being replaced Net estimated values upon completion of project • •dlogglarelid-• Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) l Other benefits: o - • I hereby certify that the representations in this statement are true. Signature of authorized represent a 7 Title Date signed (month, day, year) Li ettili tAAfJA6M Z'j 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 is B . The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; 2. Installation of new research and development equipment; 3. Installation of new logistical distribution equipment. 4. Installation of new information technology equipment; calendar years ' (see below). The date this designation expires ❑Yes ❑No ❑Yes ❑No ❑Yes RN, ❑Yes ❑N o C. The amount of deduction applicable to new manufacturing equipment is limited to $ 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 $ G. Other limitations or conditions cost with an assessed value of 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 " 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. Approvea. ( arur true o rnonzea emoer) Telephone number Date sig ed (month, day, year) 7/-Q y r � Attested by: Designated body %1 CT)mY'Y\ Cts k—j- Y --NC ' If the designating body limits the time period qurifig 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 e s designated under IC 6-1.1-12.1-4.5 t "EXHIBIT A -- -Z e-CL w ng at Heat PHARMACY July 19, 2017 City of Carmel Common Council Carmel Finance Committee City Hall One Civic Square Carmel, IN 46032 RE: Flywheel HealthCare LLC/Young at Heart Personal Property Tax Abatement Resolution CC: 06-06-11-01 Members of the Committee: Young at Heart Pharmacy greatly appreciates the support provided to our company over the past few years by the Carmel City Council. We have truly enjoyed our partnership with the City and certainly hope that this relationship continues well into the future. However, due to unforeseen circumstances in the healthcare industry, increased regulation, and advancements in the packaging of prescriptions, Young at Heart is unable to meet the job creation goals that had originally been planned when the Company entered into the property tax abatement in June, 2011. We are pleased that we were able to create a total of 51 jobs for the Carmel community. However, we are respectfully requesting the Council to consider our voluntary termination of the property tax abatement. If the Council should find this agreeable, please let us know what the next steps would be to terminate and finalize the abatement agreement and to bring this matter to a close. Thank you very much for your consideration and support. Best regards, Barry Hart Managing Partner Flywheel Healthcare, LLC CC: Leslie Wagner, Senior Principal, Ginovus Gerald Frazier, Principal, Ginovus EXHIBIT r