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HomeMy WebLinkAboutCC-10-07-02-03 ITT Educational Services/ Tax AbatementSponsors: Councilors Snyder and Koven RESOLUTION NO. CC-10-07-02-03 A RESOLUTION ("RESOLUTION") OF THE COMMOM COUNCIL OF THE CITY OF CARMEL, INDIANA, APPROVING A FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR ITT EDUCATIONAL SERVICES, INC. LOCATED AT 13000 NORTH MERIDIAN STREET IN THE HAMILTON CROSSING DEVELOPMENT WHEREAS, I.C. 6-1.1-12.1 authorizes partial abatement of personal property taxes attributable to 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 grant approval for personal property tax abatement for qualifying research and development/technology-oriented investments made by companies; and WHEREAS, information (as defined in I.C. 6-1.1-12.1-1 (9)) has been provided to and heretofore been filed with the Council by ITT Educational Services, Inc., a NYSE publicly traded company, and such information describes the qualifying research and development/technology-oriented investment in personal property to be installed at 13000 N. Meridian Street, Carmel, Indiana; WHEREAS, the site located at 13000 North Meridian Street ("Site") has been legally described and designated as an Economic Revitalization Area (ERA) for purposes of providing personal property tax abatement to ITT Educational Services, Inc. (as defined in I.C. 6-1.1-12.1); and WHEREAS, ITT Educational Services, Inc. will execute a lease and has an option to purchase the Site and building 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 building to be developed on the Site; and WHEREAS, the Council has reviewed such information together with ITT Educational Services Inc.'s Statement of Benefits (Form SB-1) and now desires to take actions hereinafter set forth. WItEREAS, 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. NOW, THEREFORE, based upon a review of the information provided and Statement of Benefits (Form SB-1) heretofore filed by ITT Educational Services Inc., the Council hereby makes the following findings: Sponsors: Councilors Snyder and Koven FINDING 1. FINDING 2. FINDING 3. FINDING 4. FIND1NG 5. FINDING 6. The Council has designated the Site as an ERA due to the following economic conditions: (a) The Site has been marketed by the owners thereof for five (5) years. 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 opportunities 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 will 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., 145 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 annual 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. The estimate of the cost and assessed value of the new research and development/technology-oriented equipment is reasonable for equipment of that type. Sponsors: Councilors Snyder and Koven FINDING 7. FINDiNG 8. FINDING 9. FINDING 10. FINDING 11. FINDiNG 12. 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 5 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. ITT Educational Services, Inc. has a long history of being an active corporate citizen involved in and committed to the communities where they have facilities. ITT Educational Services, Inc. new corporate headquarters facility in Carmel is consistent with the goals and vision established by the city of Carmel and Hamilton County Alliance for the Meridian Street corridor. 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 legal description of the previously declared ERA designation has been attached hereto as Exhibit A. BE IT FURTHER RESOLVED THAT, the Site was previously declared as an ERA for a period often (10) years from the effective date of the previously approved 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, if the Site is located in an allocation area (as defined in I.C. 36-7-14-39 or I.C. 36-7-15.1-26), an application for the property tax deductions approved herein shall also be subject to the approval of the commission that designated the allocation area as required under I.C. 6-1.1-12.1-2(1). 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. 5-3-1 and that such notice shall be in the form attached hereto and incorporated herein as Exhibit B. Sponsors: Councilors Snyder and Koven PASSED by the Common Council of the City of Carmel, Indiana this 7th day of October 2002, by a vote of {~ ayes and O nays. dF/4f__~ I2OMMON~COIJ~ICIL OF THE CITY OF CARMEL ~re~ing Officer / ~, ~ Wayne W~lson, P~esi~tent Pro Tempore ~~~-'---'~ , Robea'CB'h~eall ~ ~ .,~d-E.~C~t e~- '~uc~8~yder A~/~ST: D~ana L Cordray, Clerk-Tr~urer  rescnted by me to the _Mayor of the City of Carmel, Indiana, the . ~ day of ~' ,2002, at ,~/~.m. f-~' A ,~ lerk-Treas~?~_..~ Diana L. Cordray, Clerk- Approved by me, the May~9~ of .t,.he City of Carmel, Indiana this ,,~'~ day of (~crO ~Z.~,'~ ,2002 at ~g,t ~.m. J~s~ ' s~d, (a~yor ATTF~': - ~__] Diana L. Cordray, Clerk-TreasF Prepared by: Larry Gigerich, Managing Director GINOVUS 8900 Keystone Crossing, Suite 1150 Indianapolis, Indiana 46240 317/819-0890 (telephone) 317/819-0888 (facsimile) Larrv(&iGinovus.com (e-mail) Sponsors: Councilors Snyder and Koven EXHIBIT A PAGE 1 OF 2 A LAND BOUNDARY DESCRIPTION OF ITT EDUCATIONAL SERVICES, INC. AT I~AMILTON CROSSING~ HAMILTON COUNTY~ INDIANA OCTOBER 7, 2002 A part o£ the Southwest Quarter of Section 26, Township 18 North, P~ange 3 East, Hamilton County, Indiana, described as follows: Commencing at the northwest comer o£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 o£Meridian Corners 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 continuing along said right-of-way line Easterly, and Southeasterly 160.70 feet along an arc to the 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 o£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 Southeriy 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 the eastern right-of- Sponsors: Councilors Snyder and Koven EXHIBIT A PAGE 2 OF 2 way line of Hamilton Crossing Boulevard; thence along the eastern and northeastern right-of- 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 beatings 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. Sponsors: Councilors Snyder and Koven EXHIBIT B PAGE 1 OF 1 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 the 7th of October 2002 adopt a Resolution approving a five-year personal property tax abatement for ITT Educational Services, Inc. for its investment in research and development/technology-oriented equipment in its new corporate headquarters to be located at 13000 North Meridian Street. 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 ofinfomaation by ITT Educational Services, Inc. and the previous approval of the designation of property located at 13000 North Meridian Street as an Economic Revitalization Area for the purpose of securing an abatement of property taxes pursuant to Indiana Code Section 6-1.1-12.1-3 and Indiana Code Section 6-1.1-12.1-4.5 relative to the installation of research and development/technology-oriented personal property. Such Resolution previously approving such property as an economic revitalization area and such Ordinance approving a five-year personal property tax abatement for ITT Educational Services, Inc. were provided by the Common Council of the City of Carmel, Indiana on the 7 o October 2002. Furthermore, the Resolution states that on the 7th of October 2002 at 7 p.m. in the Council Chamber Room located at One Civic Square, Carmel, Indiana 46032, the Common Council met to hear remonstrances and objections from persons interested in these proceedings and make a determination about approving a five-year personal property tax abatement for ITT Educational Services, Inc. for its investment in research and development/technology-oriented equipment. A description of information related to ITT Educational Services, Inc.'s project 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.