HomeMy WebLinkAboutResolution CC-11-18-19-04 Preliminary Resolution for Zotec Sponsors: Carter,Finkam,Kimball,Rider and Worrell
RESOLUTION NO. CC-11-18-19-04
A PRELIMINARY RESOLUTION DESIGNATING AN ECONOMIC
REVITALIZATION AREA FOR ZP INVESTMENTS, LLC AND ZOTEC PARTNERS, LLC,
AND ESTABLISHING A PUBLIC HEARING
WHEREAS, Indiana Code 6-1.1-12.1 (the "Act") allows a partial abatement of property
taxes attributable to the improvement of real property and 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 Cannel, 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 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, ZP Investments, LLC and Zotec Partners, LLC (collectively, "the
Company"), have filed a Statement of Benefits - Real Estate Improvements and a Statement of
Benefits - Personal Property(each a"Form SB-1") with the City of Cannel;
WHEREAS, the Company is requesting that the real estate located at Illinois Street and
Fidelity Way (the "Project Site") be designated as an Economic Revitalization Area for the
purpose of achieving real and personal property tax savings in connection with the construction
of a new office building, a structured parking facility and 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 Parcel 17-13-02-00-00-001.102; and,
WHEREAS, the Company anticipates investing approximately Forty Seven Million
Seven Hundred Thousand Dollars ($47,700,000) to construct a new office building and
structured parking facility (the"Real Property Improvements") and installing approximately One
Million Dollars ($1,000,000) of new information technology equipment (the "Eligible Personal
Property"); and,
WHEREAS, the Company anticipates retaining 250 employment positions compensated
at an average annual wage of Ninety One Thousand Five Hundred and Twenty Dollars ($91,520)
per year and adding approximately three hundred (300) new employees compensated at an
average annual wage of Seventy Five Thousand Dollars ($75,000) per year (excluding benefits)
as a result of 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 — Real Estate Improvements and
Statement of Benefits — Personal Property, which were filed as of May 31, 2019, are 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. a lack of development, cessation of growth, or other factors that have
impaired values or prevented normal development of the Project Site; and
b. the proposed use of the Project Site as a corporate headquarters for the
Company 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 construction of the Real Property Improvements and 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 the Real Property
Improvements and the Eligible Personal Property acquired and installed within the Real Property
Improvements, in each case located upon the Project Site, subject to the adoption of a
confirmatory resolution by the Council.
6. Based on the information in the Statement of Benefits - Real Estate
Improvements, other information available to the Council, the foregoing findings and the factors
listed in I.C. 6-1.1-12.1-17, the Council hereby approves and allows the Company real property
tax abatement deductions pursuant to I.C. 6-1.1-12.1-4 for a period of ten(10) years. Pursuant to
I.C. 6-1.1-12.1-17, the Council hereby approves and establishes that the percentage deduction for
each year of the ten(10) year period shall be eighty percent(80%).
7. Based on the information in the Statement of Benefits - Personal Property, other
information available to the Council, the foregoing findings and the factors listed in I.C. 6-1.1-
12.1-17, the Council hereby approves and allows the Company personal property tax abatement
deductions pursuant to I.C. 6-1.1-12.1-4.5 for a period of ten(10) years for the assessed value of
all Eligible Personal Property installed at the Project Site on or prior to January 1, 2025.
Pursuant to I.C. 6-1.1-12.1-17, the Council hereby approves and establishes that the percentage
deduction for each year of the ten(10) year period shall be eighty percent(80%).
8. In support of the deductions contained in this Resolution, the Council fmds as
follows:
a. The estimated costs of the Real Property Improvements and the Eligible
Personal Property investment presented by the Company are reasonable for
projects of this nature.
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 proposed Project.
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 proposed Project.
d. Based on the increased assessed valuation and the expansion of the
employment base within the City of Cannel, the benefits to the City are
sufficient to justify the granting of the deduction described in Sections 6 and 7
above.
9. The terms of this Resolution are subject to the adoption of a Confirmatory
Resolution confirming the terms and conditions herein after a public hearing to be held on
[December 2, 2019, 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.
SO RESOLVED, by the n Council of e City of Cannel. Indiana, this / x day
of �dtM /2019 by a vote of Comm(p ayes and V nays.
COMMON COUNCIL FOR THE CITY OF CARMEL
(Aira_el
Jeff resident Anthony G e
Laura D. Campbell, Vice Presid nt H. Bruce Kimball
ass# y&c4 Pirt —e0_ /
nald E. Carter Kevin D. Rider
inkam
ATTEST:
LiJacder--
Christin S. Pauley, Cle -Treasurer
d•E-
PresLer}t by me to the Mayor of the City of C e Indiana this�7 day of
�1 �� , 2019, at /
02,0 LicV-?-de-0
C ' tine S. Pauley, Clerk-Treasurer
Approved by me, Mayor of the City of Carmel, Indiana thisdo day of
, 2019, at o4 -P.M.
James Brainard, Mayor
ATTE : r
Christine S. Paul , Clerk-Treasurer
Prepared by: Larry Gigerich
Ginovus
9 Municipal Drive,Suite 1
Fishers,Indiana 46038
317-819-0890
Larry@Ginovus.com mailto:Chad@ginovus.com
Exhibit A
Parcel No: 17-13-02-00-00-001.102
Location: Illinois Street and Fidelity Way
City: Carmel
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