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Home My WebLink AboutCC-09-16-02-01 ITT Educational Services/Tax Abatement/ERASponsor: Councilors Snyder and Koven RESOLUTION NO. CC-09-16-02-01 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, DESIGNATING 13000 NORTH MERIDIAN STREET AS AN ECONOMIC REVITALIZATION AREA WHEREAS, I.C. 6-1.1-12.1 authorizes partial abatement of personal property taxes attributable to redevelopment of real property and the installation of new research and development/technology oriented equipment; and WHEREAS, I.C. 6-1.1-12.1 empowers the Common Council of the City of Carmel, Indiana (the "Council") to designate an area as an Economic Revitalization Area ("ERA"), determine the duration of the abatement period(s) for such property and impose other reasonable conditions; and WHEREAS, a Designation Application (as defined in I.C. 6-1.1-12.1-1 (9)) has heretofore been filed with the Council by ITT Educational Services Inc., a NYSE publicly traded company, and such Designation Application requests that the real estate located at 13000 North Meridian Street, Carmel, Indiana and legally described therein (the "Site") be designated as an ERA; and WHEREAS, ITT Educational Services Inc. will execute a lease and has an option to purchase the Site from Duke Realty Investments Inc. ("Owner"), if ITT Educational Services Inc. is able to obtain personal property tax deductions as authorized by I.C. 6-1.1-12.1; and WHEREAS, ITT Educational Services Inc. seeks to have the Council authorize personal property tax deductions in connection with qualifying new research and development/technology oriented equipment to be installed in their buildings to be developed on the Site; and WHEREAS, the Council has reviewed such Designation Application together with ITT Educational Services Inc.'s Statement of Benefits (Form SB-1) and now desires to take actions hereinafter set forth. WHEREAS, the Indy Partnership (on behalf of Mayor Bart Peterson and the City of Indianapolis) has granted approval for the City of Carmel and State of Indiana to provide economic development incentives in support of ITT Educational Services' corporate headquarters relocation project from the City of Indianapolis to the City of Carmel. Sponsor: Councilors Snyder and Koven NOW, THEREFORE, based upon a review of the Designation Application and Statement of Benefits (Form SB-1) heretofore filed by ITT Educational Services Inc., the Council hereby makes the following findings: FINDiNG 1. FINDiNG 2. FINDiNG 3. FINDiNG 4. FiNDING 5. The Site is or has become undesirable for normal development due to the following economic conditions: (a) The Site has been marketed by the owners thereof for five (5) years. (b) The Site is zoned for and generally suitable for use as an office development; however, there is lack of demand for office building developments in the geographic area where the Site is located due to the economic conditions currently present (the "Corridor"). (c) Vacancy rates for office space in the Corridor and an abundance of sublease opporttmities evidence an oversupply of office space in the Corridor. (d) ITT Educational Services Inc.'s proposed development of the site as a 43,000 square foot corporate headquarters office building is consistent with the site's existing zoning and represents a use that is presently more timely than a multi-tenant office use. (e) ITT Educational Services Inc.'s plans to begin construction in the fall of 2002 and complete construction in the summer of 2003 ~vill result in an addition to the Corridor's overall assessed value within an accelerated time period inasmuch as there are no other feasible uses (presently) of the Site. The proposed development of the site by ITT Educational Services Inc. meets the parameters set forth in Council Resolution No. CC-02-05-01-02. The estimate of the cost and assessed value of ITT Educational Service's proposed re-development of the Site is reasonable for projects of a similar nature. The estimate of the number of individuals who will be employed (i.e., 140 FTEs over the initial five (5) year period) can be reasonably expected to result from ITT Educational Services Inc.'s proposed re-development of the Site. The estimate of the amnual salaries (i.e., average of $60,000 per annum) of those individuals who will be employed can be reasonably expected to result from ITT Educational Services Inc.'s proposed re-development of the Site. Sponsor: Councilors Snyder and Koven FiNDiNG 6. F1NDING 7. FINDING 8. FINDING 9. F1NDING 10. The estimate of the cost and assessed value of the new research and development/technology oriented equipment is reasonable for equipment of that type. With respect to the new research and development/technology oriented equipment, the estimate of the number of individuals who will be employed (i.e., 145 FTEs over the initial five-year period) can be reasonably expected to result from the construction of the new corporate headquarters and installation of the new personal property. The estimate of the annual salaries (i.e., average of $60,000 per annum) of those individuals who will be employed can be reasonably expected to result from the construction of the new corporate headquarters and installation of the new technology oriented personal property. Other benefits that can be reasonably expected to result from ITT Educational Services Inc.'s proposed re-development of the site and installation of the technology oriented personal property. The totality of benefits is sufficient to justify personal property tax deductions herein described. NOW, THEREFORE, BE IT RESOLVED THAT, a description of the ERA and has attached a copy of such description hereto as Exhibit A. BE IT FURTHER RESOLVED THAT, the Site is hereby declared an ERA for a period often (10) years from the effective date of this Resolution. BE IT FURTHER RESOLVED THAT, The number of years for which ITT Educational Services Inc. is entitled to a deduction for new research and development equipment pursuant to I.C. 6-1.1-12.1-4.5 shall be five (5) and the annual dollar amount of the deduction for research and development equipment shall be limited to $1,000,000. BE IT FURTHER RESOLVED THAT, the deductions authorized herein are contingent upon the designation of the ERA prior to the commencement of installation of technology oriented personal property. BE IT FURTHER RESOLVED THAT, if the Site is located in an allocation area (as defined in I.C. 36-7-14-39 or LC. 36-7-15.1-26), an application for the personal property tax deductions approved herein shall also be subject to thc approval of thc commission that designated the allocation area as required under I.e. 6-1.1-12.1-2(1)). Sponsor: Councilors Snyder and Koven BE IT FURTHER RESOLVED THAT, this Resolution shall be filed with the Hamilton County Assessor as required by I.C. 6-1.1-12.1-2.5(b). BE IT FINALLY RESOLVED THAT notice of the adoption of and the substance of this Resolution shall be published in accordance with I.C. 5-3-i. Adopted by the Common Council of the City of Carmel, Indiana this 16th day of September 2002, by a vote of ~9 ayes and t9 nays. COMMON COUNCIL OF THE CITY OF CARMELj 2-'R'~ i. sgt~gil ~,~ _-.---y ~ ~L.~undl'~' m - "e ~ ' ~ ~ ~ld E. C~er Luci Snyder ATTEST: Diana L. Cordr~gA~lQ~Cl~k-Tre~surer' Presented by me to the Mayor of the City of Carmel, Indiana, this 1 ~th day of September, 2002) &~ O:IDJ&.M. (~ ~/~{~-~ ~.*w ~txJ~.s.e.~ ,~-.~q,,.~_ '..~x Diana L. Cord~'a~ca~AMC ~ Approved by me, Mayor of the City of Carmel, Indiana this 16th day of September, 2002. ~me~nard,~Mayo~r~ ATTEST: Diana L. Cordr~y, ~b~vlC, Clel~k-Treasurer ' Prepared By: Office of the Mayor City of Carmel Sponsor: Councilors Snyder and Koven EXHIBIT A (PAGE 1 OF 2) A LAND BOUNDARY DESCRIPTION OF ITT AT HAMILTON CROSSING HAMILTON COUNTY, INDIANA SEPTEMBER 16, 2002 A part of the Southwest Quarter of Section 26, Township 18 North, Range 3 East, Hamilton County, Indiana, described as follows: Commencing at the northwest corner of said quarter section; thence North 88 degrees 42 minutes 47 seconds East 710.01 feet along the north line of said quarter section to the northerly extension of the eastern right-of-way line of Meridian Comers Boulevard; thence South 00 degrees 25 minutes 34 seconds East 486.53 feet along said northerly extension and along said eastern right-of-way line to the northern right-of-way line of a 60 foot wide private road known as Hamilton Crossing Boulevard; thence North 89 degrees 34 minutes 26 seconds East 401.00 feet along said northern right-of-way line; thence cominuing along said right-of-way line Easterly, and Southeasterly 160.70 feet along an arc to thc right and having a radius of 207.00 feet and subtended by a long chord having a bearing of South 68 degrees 11 minutes 13 seconds East and a length of 156.69 feet to the POINT OF BEGINNING of this description: thence North 43 degrees 27 minutes 50 seconds East 351.72 feet; thence South 46 degrees 46 minutes 38 seconds East 133.85 feet; thence Southeasterly, and Southerly 473.80 feet along an arc to the right and having a radius of 564.44 feet and subtended by a long chord having a bearing of South 22 degrees 43 minutes 46 seconds East and a length of 460.02 feet to the northern boundary line of the Hamilton Crossing Building 4 site; thence North 90 degrees 00 minutes 00 seconds West 453.32 feet along said northern line to thc eastern right-of- way line of Hamilton Crossing Boulevard; thence along the eastern and northeastern right-of- Sponsor: Councilors Snyder and Koven EXHIBIT A (PAGE 2 OF 2) way lines of said Hamilton Crossing Boulevard the following two (2) courses: 1) North 00 degrees 25 minutes 34 seconds West 113.45 feet; 2) Northerly, and Northwesterly 164.46 feet along an arc to the left and having a radius of 207.00 feet and subtended by a long chord having a beating of North 23 degrees 11 minutes 12 seconds West and a length of 160.17 feet to the POiNT OF BEGINNING and containing 4.111 acres, more or less. The bearings in this description are based upon the north line of the Southwest Quarter of Section 26, Township 18 North, Range 3 East having a bearing of North 88 degrees 42 minutes 47 seconds East. Subject to all easements, restriction, and rights-of-way of record. Sponsor: Councilors Snyder and Koven EXHIBIT B NOTICE OF ADOPTION REGARDING 13000 NORTH MERIDIAN STREET AS AN ECONOMIC REVITALIZATION AREA Notice is hereby given that the Common Council of the City of Carmel, Indiana, did on September 16, 2002 adopt Resolution No. CC-09-16-02-01 Designating 13000 North Meridian Street as an Economic Revitalization Area. This Resolution, which affects the following described property located in the City of Carmel, Indiana: 13000 North Meridian Street, Clay Township, Parcel No. 1609600016.001, was adopted following the filing of an application by the owner and proposed purchaser of the property to have such property designated as an Economic Revitalization Area for the purpose of securing an abatement of personal property taxes pursuant to Indiana C ode Section 6-1.1 - 12.1-3 and Indiana C ode Section 6-1.1 - 12.1-4.5 relative to the installation of technology oriented personal property. Such Resolution preliminarily designated such property as an economic revitalization area subject to the adoption of a confirming Resolution by the Common Council of the City of Carmel, Indiana. The Resolution states that on September 16, 2002 at 7:00 p.m. in the Council Chambers located at One Civic Square, Carmel, Indiana 46032, the Common Council will meet to hear remonstrance and objections from persons interested in these proceedings and make a determination about designating such property as an Economic Revitalization Area. A description of such property and a copy of such Resolution are available for inspection in the Hamilton County Assessor's Office, Suite 214, 33 North 9th Street, Noblesville, Indiana 46060. September 18, 2002 Ms. Debbie Folkerts HAMILTON COUNTY ASSESSOR 33 North 9th Street Noblesville, 1N 46060 RE: Carmel City Resolution No. CC-09-16-02-01 Designating 13000 North Meridian Street as an Economic Revitalization Area Dear Debbie: Please find enclosed a copy of the above-referenced Resolution to be maintained on file at your office as resolved by language of such Resolution and required according to I.C. 6-1.1-12.1-2.5(b). If you have any questions and/or concerns, do not hesitate to contact me. Thank you. Sincerely, Carrie A. Gallagher Deputy Clerk-Treasurer Enclosure CC~ File Larry E. Gigerich GINOVUS 8900 Keystone Crossing Suite 1150 Indianapolis, 1N 46240 D:\Files\Letters~2002~Assessor.918.doc