HomeMy WebLinkAboutCC-09-15-03-01 Zotec/ ERASponsors: Councilors Snyder and Kirby
RESOLUTION NO. CC-09-15-03-01
RESOLUTION ("RESOLUTION") OF THE COMMOM COUNCIL OF
THE CITY OF CARMEL, INDIANA DESIGNATING 11460
NORTH MERIDIAN STREET AS AN ECONOMIC REVITALIZATION AREA
WHEREAS, I.C. 6-1.1 - 12.1 ~4 authorizes partial ab atement of personal property taxes
attributable to the installation of new research and development/information
technology/computer hardware and soRware-oriented equipment; 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 SMS Development LLC and Zotec Solutions Inc., and such
Designation Application requests that the real estate located at 11460 North Meridian Street,
Carmel, Indiana and legally described therein (the "Site") be designated as an ERA; and
WHEREAS, Zotec Solutions Inc. will execute a long-term lease with SMS Development
LLC ("Owner') for their new corporate headquarters and technology development facility,
provided that SMS Development LLC and Zotec Solutions Inc. are able to obtain personal
property tax deductions as authorized by I.C. 6-1.1-12.1-4; and
WHEREAS, SMS Development LLC and Zotec Solutions Inc. seek to have the Council
authorize personal property tax deductions in connection with the qualifying investment related
to the installation of new research and development/information technology/computer hardware
and software-oriented equipment in Zotec Solutions Inc.'s new corporate headquarters and
technology development facility at 11460 North Meridian Street; and
WHEREAS, the Council has reviewed such Designation Application together with SMS
Development LLC's and Zotec Solutions Inc.'s 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 SMS Development LLC and Zotec
Solutions Inc., 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 possesses a second generation office building which is
more than ten (10) years old.
Co)
The Site and hniiding are zoned for and generally suitable for use
as an office development; however, there is lack of demand for
office space in the geographic area where the Site is located due to
the economic conditions currently present (the "Corridor").
FINDING 2.
FINDING 3.
FINDING 4.
FINDING 5.
FINDING 6.
FINDING 7.
FINDING 8.
(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)
SMS Development LLC's and Zotec Solutions Inc.'s proposed
redevelopment of the site as a corporate headquarters and
technology development facility for Zotec Solutions Inc. is
consistent with the site's existing zoning and represents a superior
use for the building.
(e)
SMS Development LLC's and Zotec Solutions Inc.'s plans to
acquire and redevelop the building and install new personal
property will result in an addition to the Corridor's overall assessed
value within an accelerated time period inasmuch as there are no
other superior uses (presently) of the Site at this time.
The proposed redevelopment of the Site by SMS Development LLC and
Zotec Solutions Inc. meets the parameters set forth in Council Resolution
No. CC-02-05-01-02.
The estimate of the cost and assessed value of SMS Development LLC's
and Zotec Solutions Inc.'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., 200
FTEs over the initial five-year period) can be reasonably expected to result
from SMS Development LLC's and Zotec Solutions Inc.'s proposed re-
development of the Site.
The estimate of the annual salaries (i.e., average of $55,000 per annum) of
those individuals who will be employed can be reasonably expected to
result from SMS Development LLC's and Zotec Solutions Inc.'s proposed
re-development of the Site.
The estimate of the cost and assessed value of the new research and
development/information technology/computer hardware and sofavare-
oriented equipment is reasonable for equipment of that type.
With respect to the new research and development/information
technology/computer hardware and software-oriented equipment, the
estimate of the number of individuals who will be employed (i.e., 200
FTEs over the initial five-year period) can be reasonably expected to result
from the redevelopment of the Site and installation of the new personal
property.
The estimate of the annual salaries (i.e., average of $55,000 per annum) of
those individuals who will be employed can be reasonably expected to
result from the redevelopment of the Site and installation of the new
personal property.
FINDING 9.
Other benefits that can be reasonably expected to result from SMS
Development LLC's and Zotec Solutions Inc.'s proposed re-development
of the site and installation of the new personal property.
FINDING 10. The totality of benefits is sufficient to justify personal property tax
deductions herein described.
NOW, THEREFORE, BE IT RESOLVED TItAT, 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 gffanting personal property tax abatement in support of the corporate headquarters
and technology development facility project and the installation of new research and
development/information technology/computer hardware and software-oriented equipment.
BE IT FURTHER RESOLVED THAT, the number of years for which SMS
Development LLC and Zotec Solutions Inc. are entitled to a deduction for investments made in
the new research and development/information technology/computer hardware and software-
oriented equipment pursuant to I.C. 6-1.1-12.1-4 shall be seven (7).
BE IT FURTHER RESOLVED THAT, the Carmel City Council shall have the fight to
reduce the length of and/or end the economic revitalization area designation period granted for
the site should Zotec Solutions Inc. and/or a subsequent owner of the company not fulfill
commitments made to the city of Carmel regarding the amount of capital investment, job
creation/retention and average annual salary levels.
BE IT FURTHER RESOLVED THAT, in the event Zotec Solutions Inc. is sold to a
new owner, the new owner of the company shall appear before the Carmel City Council within
90 days of closing on the purchase of the company to present information regarding the plans for
the company's operations in the city of Carmel.
BE IT FURTHER RESOLVED THAT, the deductions authorized herein are
contingent upon the designation of the ERA prior to the installation of new research and
development/information technology/computer hardware and software-oriented equipment.
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. 6-1.1-12.1-4.
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.
Adopted by the Common Council of the C~ity of Carmel, Indiana this 15th day of
September, 2003, by a vote offS___ ayes and L~ nays.
COMMON, COUNCIL OF THE CITY OF CARMEL
Diana L. Cordray, IAMC, Clerk~j~surer
Pres~t~e~ by me to the Mayor of the city of Carmel,.Lndiana this 15th day of September
2003, at _~.m. '~' -'~ ~' '-~' -~-'~
Dian~ L' C°rdray'.~IAMC
.,. 2~.proved by me, Mayor of the City of Carmel, Indi~th day of Se~,a~er 2003,
at ///~
ATTEST:
Diana L. Cor~ra~y//~, ~C~, Cler ~Treasurer
Prepared by: Larry Gigerich, Managing Director
GINOVUS
8900 Keystone Crossing, Suite 1150
Indianapolis, Indiana 46240
317/819-0890 (telephone)
317/819-0888 (facsimile)
Larr¥¢b~Ginovus.com (e-mail)
EXHIBIT A
A LAND BOUNDARY DESCRIPTION OF SMS DEVELOPMENT LLC -
ZOTEC SOLUTIONS INC. BUILDING AT 11460 NORTH MERIDIAN STREE%
HAMILTON COUNTY~ INDIANA
SEPTEMBER 15, 2003
PAGE 1 OF 3
PARCEL1
A part of the Northwest Quarter of Section 2, Township 17 North, Range 3 East in
Hamilton County, Indiana, being more particularly described as follows:
Commencing at the Northwest comer of said Quarter Section; thence North 89 degrees
11 minutes 58 seconds East along the North line of said Quarter Section 117.53 feet to the
Southeast comer of the Southeast Quarter of Section 34, Township 18 North, Range 3 East;
thence North 88 degrees 30 minutes 17 seconds East along said North line 684.011 feet; thence
South 00 degrees 13 minutes 58 seconds East 660.160 feet; thence North 88 degrees 30 minutes
17 seconds East, parallel with the said North line, 440.107 feet; thence South 00 degrees 13
minutes 58 seconds East 163.846 feet to the Point of Beginning of this description; thence South
00 degrees 13 minutes 58 seconds East 525.720 feet; thence North 88 degrees 30 minutes 17
seconds East, parallel with the said North line 296.136 feet; thence North 02 degrees 15 minutes
20 seconds East 171.019 feet to the Point of Curvature of a 150.77837 degree curve to the left,
the radius point of said curve being North 87 degrees 44 minutes 40 seconds West 38.00 feet
from said point; thence Northerly along the said curve 32.867 feet to the point of reverse
curvature ora 92.41255 degree curve to the right, the radius point of said curve being North 42
degrees 42 minutes 02 seconds East 62.00 feet from said point; thence Northerly along said
curve 34.821 feet to the Point of Tangency thereof, the radius point of said curve being North 74
degrees 52 minutes 53 seconds East 62.00 feet from said point; thence North 15 degrees 07
minutes 07 seconds West 100.175 feet; thence North 09 degrees 10 minutes 12 seconds West
194.957 feet; thence South 89 degrees 46 minutes 02 seconds West 217.697 feet to the Point of
Beginning.
PARCEL II
Together with the Easement rights to a Grant of Perpetual Non-Exclusive Easements
dated June 25, 1980 and recorded June 25, 1980 in Book 321, Page 4 as Instrument Number
10809 and amended by Affidavit of Amendment to Grant of Perpetual Non-Exclusive Easements
dated August 14, 1981 and recorded August 17, 1981 in Book 327, Page 530 as Instrument
Number 26229 in the Office of the Recorder or Hamilton County, Indiana, over the following
described real estate:
Part of the East Half of the Northwest Quarter of Section 2, Township 17 North, Range 3
East in Hamilton County, Indiana, being more particularly described as follows:
Beginning at a point on the North line of the East Half of the said Northwest Quarter
Section North 88 degrees 30 minutes 17 seconds East 256.12 feet from the Northwest comer of
the East Half of the said Northwest Quarter Section; thence North 88 degrees 30 minutes 17
seconds East along the said North line 60.02 feet; thence South 00 degrees 13 minutes 58
seconds East 133.34 feet to the Point of Curvature of a 23.33840 degree curve to the right, the
EXHIBIT A
PAGE 2 OF 3
radius point of said curve being South 89 degrees 46 minutes 02 seconds West 245.50 feet from
said point; thence Southerly along the said curve 144.53 feet to the Point of Tangency thereof;
the radius point of said curve being North 56 degrees 30 minutes 00 seconds West 245.50 feet
from said point; thence South 33 degrees 30 minutes 00 seconds West 13.80 feet to the Point of
Curvature of a 8.74745 degrees curve to the left, the radius point of said curve being South 56
degrees 30 minutes 00 seconds East 655.00 feet from said point; thence Southerly along the said
curve 487.80 feet to the Point of Tangency thereof; the radius point of said curve being North 80
degrees 49 minutes 48 seconds East 655.00 feet from said point; thence South 09 degrees 10
minutes 12 seconds East 270.01 feet; thence South 15 degrees 07 minutes 07 seconds East 97.64
feet to a non-tangent 58.46508 degree curve to the right, the radius point of said curve being
South 42 degrees 21 minutes 51 seconds West 98.00 feet from said point; thence Southerly along
the said curve 85.34 feet to the Point of Tangency thereof; the radius point of said curve being
North 87 degrees 44 minutes 40 seconds West 98.00 feet from said point; thence South 02
degrees 15 minutes 20 seconds West 167.08 feet to the North line of the Real Estate described in
Exhibit "A" in Grant of Perpetual Non-Exclusive Easements recorded in Book 321, Pages 4 to
16, as amended by an amendment thereto recorded in Book 327, Pages 330 to 345, as Tract B;
thence South 88 degrees 30 minutes 17 seconds West on and along said North line of the Real
Estate described in said Exhibit A as Tract B 60.13 feet; thence North 02 degrees 15 minutes 20
seconds East 171.019 feet to the Point of Curvature of 150.77837 degree curve to the left; the
radius point of said curve being North 87 degrees 44 minutes 40 seconds West 38.00 feet from
said point; thence Northerly along the said curve 32.867 feet to the Point of Reverse Curvature of
a 92.41255 degree curve to the right, the radius point of said curve being North 42 degrees 42
minutes 02 seconds East 62.00 feet from said point; thence Northerly along said curve 34.821
feet to the Point of Tangency thereof, the radius point of said curve being North 74 degrees 52
minutes 53 seconds East 62.00 feet from said point; thence North 15 degrees 07 minutes 07
seconds West 100.175 feet; thence North 09 degrees 10 minutes 12 seconds West 273.12 feet to
the Point of Curvature of a 8.01340 degree curve to the right, the radius point of said curve being
North 80 degrees 49 minutes 48 seconds East 715.00 feet from said point; thence Northerly
along the said curve 532.48 feet to the Point of Tangency thereof, the radius point of said curve
being South 56 degrees 30 minutes 00 seconds East 715.00 feet from said point; thence North 33
degrees 30 minutes 00 seconds East 13.80 feet to the Point of Curvature of a 30.88721 degree
curve to the left, the radius point of said curve being North 56 degrees 30 minutes 00 seconds
West 185.50 feet from said point; thence Northerly along the said curve 109.21 feet to the Point
of Tangency thereof, the radius point of said curve being South 89 degrees 46 minutes 02
seconds West 185.50 feet fi.om said point; thence North 00 degrees 13 minutes 58 seconds West
132.02 feet to the Point of Beginning.
PARCEL III
A Sanitary Sewer Easement over the following described Real Estate:
A part of the Northwest Quarter of Section 2, Township 17 North, Range 3 East in
Hamilton County, Indiana, being mom particularly described as follows:
EXHIBIT A
PAGE 3 OF 3
Commencing at the Northwest comer of said Quarter Section; thence North 89 degrees 11
minutes 58 seconds East along the North line of said Quarter Section 117.53 feet to the Southeast
comer of the Southeast Quarter of Section 34, Township 18 North, Range 3 East; thence North
88 degrees 30 minutes 17 seconds East along said North line 684.011 feet; thence South 00
degrees 13 minutes 58 seconds East 660.160 feet; thence North 88 degrees 30 minutes 17
seconds East, parallel with the said North line, 440.107 feet; thence South 00 degrees 13 minutes
58 seconds East 163.846 feet; thence North 89 degrees 46 minutes 02 seconds East 143.99 feet to
the Point of Beginning of a strip of land ten (10) feet in width, five (5) feet on each side of the
following described centerline; thence North 00 degrees 59 minutes 35 seconds West 161.66 feet
to point "A" hereinafter referred to; thence North 00 degrees 54 minutes 55 seconds East 194.67
feet; thence North 00 degrees 30 minutes 22 seconds West 220.09 feet; thence North 01 degrees
04 minutes 09 seconds West 198.36 feet; thence North 89 degrees 47 minutes 36 seconds East
401.91 feet; thence South 47 degrees 30 minutes 27 seconds East 19.83 feet to an existing
sanitary lif~ station (the next described course being the centerline of a twenty foot strip of land,
ten feet on each side of said centerline); thence North 89 degrees 46 minutes 02 seconds East
101.72 feet to the West limited access right of way line for U.S. #31, as now located and
established per Indiana State Highway plans project STF 222(9) Dated 1968, pages 12 and 13
and the end point of the centerline of said twenty foot strip of land.
Also a strip of land ten (10) feet in width, five (5) feet on each side of the following
described centerline:
Beginning at said Point "A"; thence North 88 degrees 24 minutes 52 seconds East 55.81
feet to the end point of the centerline of said ten foot strip of land.
EXHIBIT B
NOTICE OF ADOPTION REGARDING THE APPROVAL OF A
SEVEN-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
SMS DEVELOPMENT LLC'S-ZOTEC SOLUTIONS INC.'s NEW CORPORATE
HEADQUARTERS LOCATED AT 11460 NORTH MERIDIAN STREET
SEPTEMBER 15, 2003
PAGE 1 OF 1
Notice is hereby given that the Conmaon Council of the City of Carmel, Indiana did on the 15th
of September 2003 adopt a Resolution approving a seven-year personal property tax abatement
for SMS Development LLC and Zotec Solutions Inc. for its investment in a new corporate
headquarters facility for Zotec Solutions Inc. to be located at 11460 North Meridian Street. This
Resolution, which affects the following described property located in the City of Carmel,
Indiana: 11460 North Meridian Street, Clay Township, Parcel Number 16-13-02-00-00-003.005
was adopted following the filing of information by SMS Development LLC and Zotec Solutions
Inc. and the previous approval of the designation of property located at 11460 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 ~ 12.1-4 relative to the installation of new qualifying
research and development/information technology/computer hardware and software-oriented
equipment.
Such Resolution previously approving such property as an Economic Revitalization Area
and such Resolution approving a seven-year personal property tax abatement for SMS
Development LLC and Zotec Solutions Inc. were provided by the Common Council of the City
of Carmel, Indiana on the 15th of September 2003. Furthermore, the Resolution states that on the
15th of September 2003 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 seven-year personal
property tax abatement for SMS Development LLC and Zotec Solutions Inc. for their investment
in new qualifying research and development/information technology/computer hardware and
software-oriented equipment. A description of information related to SMS Development LLC's
and Zotec Solutions Inc.' 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.
STATEMENT OF BENEFITS
State Form 27167 (Re / 4~30)
Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989
FORM
SB- '1
Name of taxpayer
SMC Development LLC-Zotec Solutions Inc. (11460 North Meridian Street Building- Zotec Solutions Inc. Corporate Headquarters Project)
Address of taxpayer (street and number, city, state and ZiP code)
SMC Development LLC-Zotec Solutions Inc. (Partnership Address)
11460 North Meridian Street, Carmel, Indiana 46038
Name of contact person Telephone number
Scott Law, Principal, SMC Development LLC and CEO, Zotec Solutions Inc. ( 317 ) 705-5050
Name of designating body Resolution number
Carmel CRy Council 09-15-03-1~ I
Location of property County :Taxing district
11460 North Meridian Street Ham ton 17-Clay Township
Description of real property improvements and / or new manufacturing equipment and / or ESTIMATED
research and development equipment (use additional sheets if necessary) Start Date Completion Date
SMC Development LLC-Zotec Solutions Inc. will be installing new qualifying research and
development/information technology/computer hardware and software-oriented equipment in Real Estate N/A N/A
their new corporate headquarters and technology development center at 11460 North Meridian
Street. The company will utilize the new new qualifying research and development/information New Mfg Equipment N/A N/A
technotogyteomputer hardware and software-oriented equipment to develop computer
software and information technology products for its clients. R & DE December 2003 December 2008
Current number Salaries Number retained Salaries Number additional Salaries
40 $55,000 per year 40 $55,000 per year 160 (within five years) $55,000 per year
Research and Development
NOTE: Pursuant to lC 6-1.1-12.1-5.1 (d) (2) the Real Estate Improvements Machinery Equipment
COST of the property is confidential. Cost Assessed Value Cost ~ssessed Valu( Cost Assessed Value
Current values N/A N/A N/A N/A
Plus estimated values of proposed project N/A N/A N/A N/A $2 million $2 million
Less vatues of any properly being replaced N/A N/A N/A N/A
Net estimated values upon completion of project N/A N/A N/A N/A $2 million $2 million
Estimated solid waste converted (pounds) __N_/_A ........... Estimated hazardous waste conveded (pounds) ~N/~A_ ............
Other benefits: N/A
,,~reb¥ certif'/that the representations in this statement are tree.
Signature~se~ ~tle Date signed (month, day, year)
Principal, SMC Development
~'~~/ ~_~' LLC&CEOZotecSolutionslnc. August15,2003
We have reviewed our prior actions relating to the designation of this economic revitalization 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-
rides for the following limitations as aathodzed under lC 6-1.1-12.1-2.
A. The designated area 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:
I. Redevelopment or rehabilitation of real estate improvements; [] Yes [] N o
2. Installation of new manufacturing equipment; []Yes []No
3. Installation of new research and development equipment; [] Yes [] No
4. Residentially distressed areas []Yes []No
C .The amount of deduction applicable for redevelopment or rehabilitation is limited to $ ................ cost with an assessed
value of $ .................
D .The amount of deduction applicable to new manufacturing equipment is limited to $ ................ cost with an assessed
value of $ .................... .
E. The amount of deduction applicable to new research and development equipment is limited to $ ................. cost with
an assessed value of $ .................... .
F. Other limitations or conditions (specify) ................................................................
Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason-
able and have determined that the totality of benefits is sufficient to justify the deduction described above.
Approved: (signature and title of authorized member)
Telephone number
D(esignat~d body
Date signed(month, da~ yeaO
Attested by:
* If the designating body limits the time period during which an area is an economic revitilization area, it does not limit the length of time
a taxpayer is entitled to receive a dedu~ion to a number of yearn designated under lC 6-1.1-12,1-4 or 4.5