HomeMy WebLinkAboutCC-12-02-02-01 Allete Automotive/Tax AbatementSponsor(s): Councilors Snyder and Koven
RESOLUTION NO. CC-12-02-02-01
A RESOLUTION ("RESOLUTION") OF THE COMMOM COUNCIL OF THE
CITY OF CARMEL, INDIANA, APPROVING A TEN-YEAR (10) REAL
PROPERTY TAX ABATEMENT FOR DUKE REALTY LIMITED PARTNERSHIP
AND ALLETE AUTOMOTIVE SERVICES LOCATED AT 13085 HAMILTON
CROSSING BOULEVARD (HAMILTON CROSSING SIX) IN
THE HAMILTON CROSSING DEVELOPMENT
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. 6-1.1-12.1-4 empowers the Common Council of the City of Carmel,
Indiana (the "Council") to grant approval for real property tax abatement to companies making
investments in renovated and/or new facilities; and
WHEREAS, information (as defined in I.C. 6-1.1-12.1-1) has been provided to and
heretofore been filed with the Council by Duke Realty Limited Partnership and ALLETE
Automotive Services, and such information describes the investment in a new corporate
headquarters facility for ALLETE Automotive Services to be built at 13085 Hamilton Crossing
Boulevard, Carmel, Indiana;
WHEREAS, the site located at 13085 Hamilton Crossing Boulevard ("Site") has been
legally described and designated as an Economic Revitalization Area (ERA) for purposes of
providing real property tax abatement to Duke Realty Limited Partnership & ALLETE
Automotive Services (as defined in I.C. 6-1.1-12.1-4); and
WHEREAS, ALLETE Automotive Services will execute a fifteen-year lease with Duke
Realty Limited Parmership ("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 information 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 information provided and Statement
of Benefits (Form SB-1) heretofore filed by Duke Realty Limited Partnership and ALLETE
Automotive Services, the Council hereby makes the following findings:
Sponsor(s): Councilors Snyder and Koven
FINDING 1.
conditions:
The Council has designated the Site as an ERA due to the following economic
(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 opportunities evidence an oversupply of office space in
the Corridor.
(d)
Duke Realty Limited Partnership's and ALLETE Automotive
Services' proposed development of the site as a 180,000 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)
Duke Realty Limited Partnership's and ALLETE Automotive
Services' plan to begin construction of the new corporate
headquarters building during 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.
FINDING 2.
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.
FINDING 3.
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.
FINDING 4.
The estimate of the number of individuals who will be employed (i.e., 800
FTEs over the next ten (10) year period) can be reasonably expected to
result from Duke Realty Limited Partnership's and ALLETE Automotive
Services' proposed re-development of the Site.
FINDING 5.
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's proposed re-development of the Site.
FIND1NG 6. The estimate of the cost and assessed value of the new corporate
headquarters facility is reasonable for a facility of that type.
Sponsor(s): Councilors Snyder and Koven
FINDING 7.
FINDING 8.
FINDING 9.
FINDING 10.
FINDING 11.
FINDING 12.
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.
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.
Duke Realty Limited Parmership and ALLETE Automotive Services have
a long history of being active corporate citizens involved in and
committed to the communities where they have facilities.
ALLETE Automotive Services' 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 Duke Realty
Limited Parmership's and ALLETE Automotive Services' proposed re-
development of the site as a new corporate headquarters facility.
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 designation has been attached hereto as Exhibit A.
BE IT FURTHER RESOLVED THAT, the Site was previously declared as an ERA for
purposes of granting real property tax abatement in support of the new corporate headquarters
facility.
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 approval of a ten-year real property tax abatement 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 the property tax deductions
approved herein shall also be subject to the approval of the commission that designated the
allocation area as required trader 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.
Sponsor(s): Councilors Snyder and Koven
PASSED by the Common Council of the City of Carmel, Indiana this 2nd day of
December, 2002, by a vote of (~ and (~ nays.
COMMON C~OUNCIL OF THE CITY OF CARMEL _ J
~.si0ing Officer ~ __~ I --, ~ ', Kev/in Kirb, b,~ '; ' ,.'
~a~ ~e Wils%id!n~~''~
~~/R°be~a)reall -'~ ~J' -N'L' Rundle ~
/l~nald E. Ca~er
ATT~ ~
Diana L. Cor~ay, Clerk-Tre~ef
PresUme to the Mayor of the City of C~el, Indi~a, ~e 2~a day of December,
Di~a L. Cor~ay, C
Approved by me, ~e Mayor of the City of C~el, Indi~a this 2~ da~December,
2002, at ~ p.m.
J~es Brined, Mayor
ATTEST:
Diana L. Cordray, Clerk-Tr~/~r
Prepared by:
Larry Gigerich, Managing Director
G1NOVUS
8900 Keystone Crossing, Suite 1150
Indianapolis, Indiana 46240
317/819-0890 (telephone)
Sponsor(s): Councilors Snyder and Koven
EXHIBIT A
PAGE 1 OF 1
A LAND BOUNDARY DESCRIPTION OF DUKE REALTY LIMITED PARTNERSHIP-ALLETE
AUTOMOTIVE SERVICES BUILDING AT 13085 HAMILTON CROSSING BOULEVARD
(HAMILTON CROSSING SIX), HAMILTON COUNTY~ INDIANA
DECEMBER 2, 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 comer 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 40.00 feet along said
northerly extension to the southern right-of-way line of East 131st and the 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 westem 145-foot half right-of-way line of U.S. 31;
thence along said western right-of-way line Southerly 243.08 feet along an arc to the left 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 PO1NT OF
BEGINNING and containing 10.002 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(s): Councilors Snyder and Koven
EXHIBIT B
PAGE 1 OF 1
NOTICE OF ADOPTION REGARDING THE APPROVAL OF A TEN-YEAR REAL
PROPERTY TAX ABATEMENT FOR DUKE REALTY LIMITED PARTNERSHIP
AND ALLETE AUTOMOTIVE SERVICES FOR ALLETE AUTOMOTIVE
SERVICES' NEW CORPORATE HEADQUARTERS LOCATED AT 13085
HAMILTON CROSSING BOULEVARD (HAMILTON CROSSING SIX)
DECEMBER 2, 2002
Notice is hereby given that the Common Council of the City of Carmel, Indiana did on
the 2nd of December 2002 adopt a Resolution approving a ten-year real property tax abatement
for Duke Realty Limited Partnership and ALLETE Automotive Services for its investment in a
new corporate headquarters facility for ALLETE Automotive Services to be located at 13085
Hamilton Crossing Boulevard. 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
and the previous approval of the designation of property located at 13085 Hamilton Crossing
Boulevard as an Economic Revitalization Area for the purpose of securing an abatement of
property taxes pursuant to Indiana Code Section 6-1.1-12.1-4 relative to the construction of a
new corporate headquarters facility for ALLETE Automotive Services.
Such Resolution previously approving such property as an Economic Revitalization Area
and such Resolution approving a ten-year real property tax abatement for Duke Realty Limited
Partnership and ALLETE Automotive Services were provided by the Common Council of the
City of Carmel, Indiana on the 2nd of December 2002. Furthermore, the Resolution states that on
the 2nd of December 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 approving a ten-year real
property tax abatement for Duke Realty Limited Partnership and ALLETE Automotive Services
for their investment in a new corporate headquarters for ALLETE Automotive Services. 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.
State Fo~m 2716;~ (R6 /4-00} SE~ - 1
Fof'm SB - 1 is proscribed by the State Board of Tax Commissioners, 1989
INSTRUCTIONS:
1. Thisstatemen~mustbesubm~ttedtotheb~dydesignatingtheecon~micreviti~izati~namapd~rtothepubfichearingifthedesign~tingb~dyrequiresinf~r-
mafion 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 manutactudng equipment and I or research.and development equipment, or BEFORE the
redeveiopment or rehabilitation of real property for which the person wishes to claim e deduction. "Projects planned or commiJted to after July 1, 1987 and
areas designaled afior July 1, 1987 require a STATEMENT OF BENEFITS. (lC 6-1.1-12.1)
2. Approval of the designating body (City Council, Town Board, County Counc#, otc.) must be obtathed pdor to initiation of the redevelopment or rehabilitation,
or pdor to installation of the new manufacturing equipment and I or research and development equipment, BEFORE a deduction may be approved.
3. To obtain a deduction, Form 322 ERA, Real Estate Improvements and I or Form 322 ERA I PPME and I or 322 ERA I PPR & DE. must be filed with the county
auditor. With respect to real properly, Form 322 ERA must be filed by the later of: (1) May l O; or (2) thi~ly (30) days after a noitce of increase in real preperty
assessment is received fr~m the township assesso~ Form 322 ERA I PPME and / or 322 ERA PPR & DE must be filed between March t and May 15 of the
assessment year in which new manufacturing equipment and / or research and development equipment becomes assessable, unless a itfing extension has
been obtained. A person who obtains a filing extension must file the form between March I and June 14 of that year.
4. Properly owners whose Statement of Beneitts was approved after June 30, 1991 must submit Form CF - I annually to show compliance with the Statement
of Benefits. (lC 6-1.1.12.1-5.6)
5. The schedules established under lC 6-1.1-12. f-4(d) end lC 6-1. t-t2.1-4.5 (e) effective July 1, 2000 apply lo any statement of benefits filed on or after
July 1, 2000.
The schedules effective prior lo July 1, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000.
Name of taxpayer
Duke Realty Limited Partnership (Hamilton Crossing Six Building- ALLETE Automotive Services Corporate Headquarters Project)
~,ddress of taxpayer (street and number, city, sta~e and ZiP code)
600 East 96th Street. Suite 100, Indianapolis. Indiana 46240
Name of contact person Telephone number
Jen~terB~rk~Ser~rV~cePmsidef1t~ndiana~iceGr~up~DukeRea~tyc~r~n(gener~p~u~Rea~L~Pa~) ( 317 ) 808-6000
Name of designating body Resolution number
Carmel City Council 11-18-02-61
Location of property County Taxing dist~ct
13085 Hamilton Crossing Boulevard Ham ton 18
Description of real property improvements and I or new manufacturing equipment and / or ESTIMATED
research and development equipment (use additional sheets/f necessary) Start Date Completion Date
Auto~notlve Services' wo~ld headquarters and house the company's key administrative staff. The New Mfg Equipment N/A N/A
constrdct~o~ of a structured parking facility with capacity for approximately 350 vehicles. R & DE N/A N/A
Current number Salades Number retained Salaries Number additional Salaries
400 $60,000 per year 400 $60,000 per year 4oo .., 2so r~ ~ (,~ ~ ~.,,)~,~ $60,000 per year
,..,,,,,,:,,..''
NOTE: Pursuant to lC 6-1.1-12.1-5.1 (d) (2) the Real Estate Improvements Machinery Research and Development
Equipment
COST of the property is confidential. Cost Assessed Value Cost ~eseed Value Cost ~sssesed Value
Current values N/A N/A N/^ N/A
Plus estimated values of proposed project $22 million $20.9 million N/A N/A N/A N/A
Less values of any property being replaced N/A N/A N/A N/^
Net estimated values upon completion of project $22 million $20.9 million N/A N/A N/A N/A
Estimatedsotidwastaconvertad(pounds) NIA Esfimatodhazardouswasteconverted(pounds) N/A
Other beneffis: N/^
I hereby certif7 that the representations in this statement are true.
Signa~t~r~e of authorized repre, sentative,~- ~tie Date signed (month, day, year)
o~ P~.r~ ~-:~ P,~,~) October 31, 2002
We have reviewed our prior actions relating to the designation of this economic revital~ation area and find that the applicant meets the
general standards adopted in the resolution previously approved by this body. Said resolution, passed under lC 6-1.1-12.1-2.5, pro-
vides for the following limitations as authorized under lC 6-1.1-12.1-2.
A. The designated ama has been limited to a period of time not to exceed .... calendar years * (see below). The date this
designation expires is ......
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate imprevements; l-lYes [-INo
2. Installation of new manufacturing equipment; r'lYes r-]No
3. Installation of new research and development equipment; r-lYes r"lNo
4. Residentially distressed areas I-I Yes I--I N o
C.The amount of deduction applicable for redevelopment or rehabilitation is limited to value of $ .....
D .The amount of deduction applicable to new manufacturing equipment is limited to $ value of $
E. The amount of deduction applicable to new research and development equipment is limited to $
an assessed value of $ .........
F. Other limitations or conditions (specify)
Also we have reviewed the information contained in the statement of benef'~s and find that the estimates and expectations are reason-
able and have determined that the totality of benefits is sufficient to justif~ the deduction described above.
cost with an assessed
cost with an assessed
cost with
Approved: (signature and title of authorized member) Telephone number Date signed (month, day, year)
Attested by: D(esignat~d body
* If the designating body limits the time period during which an area is an economic revitilizafion area, it does not limit the length of time
a taxpayer is entitled to receive a deduction to a number of years designated under lC 6-1.1-12.1-4 or 4.5