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HomeMy WebLinkAboutCC-11-18-02-02 Allete Automotive/Tax Abatement/ERASponsor(s): Councilor Snyder and Koven RESOLUTION NO. CC-11-18-02-02 A RESOLUTION ("RESOLUTION") OF THE COMMOM COUNCIL OF THE CITY OF CARMEL, INDIANA DESIGNATING 13085 HAMILTON CROSSING BOULEVARD (HAMILTON CROSSING SIX) AS AN ECONOMIC REVITALIZATION AREA WHEREAS, I.C. 6-1.1-12.1-4 authorizes partial abatement of real property taxes attributable to the construction and/or renovation of new and/or existing facilities; and WHEREAS, I.C. 6-1.1-12.1-2.5 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) has heretofore been filed with the Council by Duke Realty Limited Partnership and ALLETE Automotive Services, and such Designation Application requests that the real estate located at 13085 Hamilton Crossing Boulevard, Carmel, Indiana and legally described therein (the "Site") be designated as an ERA; and WHEREAS, ALLETE Automotive Services will execute a fifteen-year lease with Duke Realty Limited Partnership ("Owner') for their new corporate headquarters facility, provided that Duke Realty Limited Partnership and ALLETE Automotive Services are able to obtain real property tax deductions as authorized by I.C. 6-1.1-12.1-4; and WHEREAS, Duke Realty Limited Partnership and ALLETE Automotive Services seek to have the Council authorize real property tax deductions in connection with the qualifying investment made in the construction of ALLETE Automotive Services' new corporate headquarters facility to be developed on the Site; and WHEREAS, the Council has reviewed such Designation Application together with Duke Realty Limited Partnership's and ALLETE Automotive Services' Statement of Benefits (Form SB-1) and now desires to take actions hereinafter set forth. NOW, THEREFORE, based upon a review of the Designation Application and Statement of Benefits (Form SB-1) heretofore filed by Duke Realty Limited Parmership and ALLETE Automotive Services, the Council hereby makes the following findings: FINDING 1. 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. Co) 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"). Sponsor(s): Councilor Snyder and Koven FINDING 2. F1NDING 3. FINDING 4. FINDING 5. FINDING 6. FINDING 7. (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) Duke Realty Limited Parmership's and ALLETE Automotive Services' proposed development of the site as a 180,000 square foot corporate headquarters office building for ALLETE Automotive Services is consistent with the site's existing zoning and represents a use that is presently more timely than a multi- tenant office use. (e) Duke Realty Limited Partnership's and ALLETE Automotive Services' plans to begin construction in the spring of 2003 and complete construction during the winter 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 Duke Realty Limited Partnership and ALLETE Automotive Services meets the parameters set forth in Council Resolution No. CC-02-05-01-02. The estimate of the cost and assessed value of Duke Realty Limited Partnership's and ALLETE Automotive Services' 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., 800 FTEs over the initial ten (10) year period) can be reasonably expected to result from Duke Realty Limited Partnership's and ALLETE Automotive Services' proposedre-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 Duke Realty Limited Partnership's and ALLETE Automotive Services' proposed re-development of the Site. The estimate of the cost and assessed value of the new corporate headquarters facility is reasonable for a building of that type. With respect to the new corporate headquarters facility, the estimate of the number of individuals who will be employed (i.e., 800 FTEs over the initial ten-year period) can be reasonably expected to result from the construction of the new corporate headquarters. Sponsor(s): Councilor Snyder and Koven FINDING 8. 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. F1ND1NG 9. Other benefits that can be reasonably expected to result from Duke Realty Limited Partnership's and ALLETE Automotive Services' proposed re- development of the site. FINDING 10. The totality of benefits is sufficient to justify real property tax deductions herein described. NOW, THEREFORE, BE IT RESOLVED THAT, a legal description of the previously declared ERA has been attached hereto as Exhibit A. BE IT FURTHER RESOLVED THAT, the Site is hereby declared an ERA for purposes of granting real property tax abatement in support of the new corporate headquarters project. BE IT FURTHER RESOLVED THAT, the number of years for which Duke Realty Limited Partnership and ALLETE Automotive Services are entitled to a deduction for investments made in the new corporate headquarters facility pursuant to I.C. 6-1.1-12.1-4 shall be ten (10). BE IT FURTHER RESOLVED THAT, the deductions authorized herein are contingent upon the designation of the ERA prior to the commencement of construction of the new corporate headquarters facility. 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 thc 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. 6-1.1-12.1-4. BE IT FURTHER RESOLVED THAT, this Resolution shall be filed with the Hamilton County Assessor as required by I.C. 6-1.1-12.1-4. 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. PASSED by the Common Council of the City of Carmel, Indiana this 18th day of November, 2002, by a vote of [3 ayes and C) nays. Sponsor(s): Councilor Snyder and Koven COMMON COUNCIL OF THE CITY OF CARMEL ~a~e W[ilson, tttresi~ent o e p ATTEST: Diana L. Cordra6J, L~lcr~-Treasul~r~ N.L. R dl, e '~ Came A. C~l~g~er, ~ $~- 2002, at / I" 0.~rn. Diana L. CorL~~r~' ' ~proved by me, Mayor of the City of Carmel, Indiana this i,~ day of November 2002, at / / ~.m. ~(mes Brainard, Mayor ATTEST: Diana L. Cordray, (~lcM~l'[easure(/' Deputy Clerk fbr Prepared by: Larry Gigerich, Managing Director GINOVUS 8900 Keystone Crossing, Suite 1150 Indianapolis, Indiana 46240 317/819-0890 (telephone) Sponsor(s): Councilor Snyder and Koven EXHIBIT A PAGE 1 OF 2 A LAND BOUNDARY DESCRIPTION OF DUKE REALTY L1MITED PARTNERSHIP- ALLETE AUTOMOTIVE SERVICES BUILDING AT 13085 HAMILTON CROSSING BOULEVARD (HAMILTON CROSSING SIX), HAMILTON COUNTY, INDIANA NOVEMBER 18, 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 Corners Boulevard; thence South 00 degrees 25 minutes 34 seconds East 40.00 feet along said northerly extension to the southern right-of-way line of East 131 st and thc POINT OF BEGINNING of this description: thence North 88 42 minutes 47 seconds East 895.02 feet along said southern right-of-way line; thence North 84 degrees 01 minute 56 seconds East 284.81 feet along said southern right-of-way line to the western 145-foot half right-of-way line of U.S. 31; thence along said westem right-of-way line Southerly 243.08 feet along an arc to the let~ and having a radius of 2,436.83 feet and subtended by a long chord having a beating of South 12 degrees 46 minutes 17 seconds West and a length of 242.98; thence North 90 degrees 00 minutes 00 seconds West 332.62 feet; thence South 43 degrees 27 minutes 50 seconds West 351.72 feet; thence Northwesterly, and Westerly 160.70 feet along an arc to the left and having a radius of 207.00 feet and subtended by a long chord having a bearing of North 68 degrees 11 minutes 13 seconds West and a length of 156.69 feet; thence North 89 degrees 34 minutes 26 seconds West 401.00 feet; thence North 00 degrees 25 minutes 34 seconds West 446.53 feet to the POINT OF BEGINNING and containing 10.002 acres, more or less. The beatings in this description are Sponsor(s): Councilor Snyder and Koven EXHIBIT A PAGE 2 OF 2 based upon the north line of the Southwest Quarter of Section 26, Township 18 North, Range 3 East having a beating of North 88 degrees 42 minutes 47 seconds East. Subject to all easements, restriction, and rights-of-way of record. Sponsor(s): Councilor Snyder and Koven EXHIBIT B PAGE 1 OF 1 NOTICE OF ADOPTION REGARDING THE APPROVAL OF 13085 HAMILTON CROSSING BOULEVARD (HAMILTON CROSSING SIX) AS AN ECONOMIC REVITALIZATION AREA FOR ALLETE AUTOMOTIVE SERVICES' NEW CORPORATE HEADQUARTERS Notice is hereby given that the Common Council of the City of Carmel, Indiana did on November 18, 2002 adopt a Resolution No. CC-12-02-02-02 designating 13085 Hamilton Crossing Boulevard as an Economic Revitalization Area. This Resolution, which affects the following described property located in the City of Carmel, Indiana: 13085 Hamilton Crossing Boulevard, Clay Township, Parcel Nos. 16-09-26-00-00-017.000 and 16-09-26-00-00-016.000, was adopted following the filing of information by Duke Realty Limited Partnership and ALLETE Automotive Services to have such property located at 13085 Hamilton Crossing Boulevard designated as an Economic Revitalization Area for the purpose of securing an abatement of real 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 construction ora new corporate headquarters facility for ALLETE Automotive Services. Such Resolution designating such property as an Economic Revitalization Area was provided by the Common Council of the City of Carmel, Indiana on November 18, 2002. Furthermore, the Resolution states that on the November 18, 2002 at 7 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 designating such property located at 13085 Hamilton Crossing Boulevard as an Economic Revitalization Area. A description of information related to Duke Realty Limited Partnership's and ALLETE Automotive Services' 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.