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HomeMy WebLinkAboutCC-02-21-05-01 Special Risk International/Tax Abatement/ERA Sponsor: Councilor Sharp RESOLUTION NO. CC-02-21-05-01 RESOLUTION ("RESOLUTION") OF THE COMMON COUNCIL OF THE CITY OF · CARMEL, INDIANA FOR DESIGNATION OF THE ATTACHED PROPERTY AS AN ECONOMIC REVITALIZATION AREA WHEREAS, under I.C. 6~ 1.1-12.1 °2.5 the Common Council of the City of Carmel, Indiana (the "Counail") may designate an area as an Economic Revitalization Area ("ERA") and determine the duration of the abatement period(s) for such property; and WHEREAS, 3~33 Group LLC will be the owner of the new corporate headquarters for Specialty Risk International, Inc.; and WHEREAS, 303 Group LLC and Specialty Risk Internationall Inc., seek the Council to authorize real property tax abatement in cmmection with the investment and j ob impact .("project"); and WHEREAS, the Council has reviewed 303 Group LLC's Statement of Benefits (Form SB- 1 )and now desires to take actions hereinafter set forth. NOW, THEREFORE, based upon a review of the Form SB-1 filed by 303 Group LLC, the Council hereby makes the following findings: ~ FINDiNG 1. ~The site is suitable for designation as an ERA due to the following economic conditions: FiNDiNG 2. (a) The area has become undesirable because ora lack of development and other factors which have impaired values or prevent a normal development of property Or use of property. (b) Construction and relocation of Specialty Risk International's international headquarters at this location will result in an addition to the area's overall assessed value within an accelerated time period inasmuch as there is no development on this site at'the present time. (c) The project represents a superior use for the site. ' (d) The project is consistent.with similar Iand uses on adjacent properties. The estimate of the cost and assessed value ofihe proposed project is reasonable for projects 6fa similar nature. FiND~G3. The estimate of the number of individuals who will initially be emlSloyed (i.e., 65 at the'time of the development is completed) cali be reasonably expected to result from the prisject. FiNDING 4. The estimate of the annual salaries (i.e., average of approximately $40,000 per annum) of those individuals who will initially be employed can be reasonably · expected to result from the project. FINDING 5. Sponsor: Councilor Sharp The estimate of the cost and assessed value of[he project is reasonable for a project of this type. FINDING 6. The projected creation of approximately 100 FTEs over the next six years can be reasonably expected. FINDING 7. FINDING 8. FINDING 9. The estimate of the annual salaries of approximately $40,000 per annum of those individuals who will be employed can be reasonably expected. Other benefits can be ~-easonably expected to result from the project. 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 site has been attached hereto as Exhibit A. B'E IT FURTHER RESOLVED THAT, the Site is hereby declared an ERA for purposes of granting real property taxabatement in support of the corporate headquarters.. BE IT FURTHER RESOLVED THAT, the number of years for which 303 Group LLC is entitled to a deduction for real property taxes shall be six (6). BE IT FURTHER RESOLVED THAT, in the event 303 Group LLC or Specialty Risk Intel:national 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 designatiofl of the ERA prior to breaking of ground at the site. BE IT FURTHER RESOLVED THAT, if the Site is located in an allocation area (as defined in I.C. 36-7-14-39 or 1.C. 36-7-15.1-26), an application for the property tax deductions approved heroin 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. Sponsor: Councilor Sharp PASSED by the Common Council of the City of carmel, Indiana this ¢Q I $'4~ay of .~.j~x~ C~ 2005, by a vote of "7 ayes and O. nays. P~si~din~g~ ' COMMON COUNCIL FOR THE CITY OF CARMEL ffic "~onald E. Carter /~'Oriffiths // ~ Richard L'. Sha~.z ATTEST' Diana L. Cordray, IAMC, ~b~ffasurer Presented by m~ to the Mayor of the City of Carmel, Indiana this~ I day o 2005; at ~:q0 ~.M. ' Dipna L. Cordray, IAMC, Cle~rTredsurer Approved by~e, Mayor of the City of Carmel, Indiana, this ~ day o at~q0 ~.M. ' . J rd, M AITEST: Diana L. Cordray, IAMC, ~lerk-Trea~[er Contact lnfo~ation Tim Cook on behalf of 303 Group I~C and Specialty Risk International 317-580-2038 Le~a[ ][]v'~cri~tion of R~:~I Parcel ~ (las~m~n~ Number 930203~) F~ of tho So~thea~[ Queer of Section 35, Towu~bip I ~ No~, R~nge 3 Ea~ of t~ s~cond P~n~ipal Meridian in ~aJlton County, Indiana, being mo~ p~culnrly descried as follow~: Commencing al ~e So~w~t Oomcr of ~e said Somh~gx Quarter S~etion; lhen~ Noah 00 Southc~t Quoter S~edon a d~ae of 728,~5 foci; th~ Noah 88 d~re~ 46 m~utes s~con~s E~, p~ailel w~h ~ Soa~ Line of~ said 8amheast Q~r Secdo~ a di~anv~ of 38~.75 fe~ to a crime having a radi~ of 750.00 feel ~ radius ~int Ofwh~h b~ No~h ~ BEG~G PO~T; th~e~ South 18 deg~ 43 min~es 06 s~onds ~st a d~t~ of md/us point ofwhleh ~s Soa~ 71 de~s ] 6 minings 54 Wasg fienco Southerly along said deg~od 39 mlnutas 05 ~econds ~ a dis~ce of 33.00 fcct to a 518" ~bar with ~p: P~cel 4 (Ins~mem Num~ 932236~) Pan ~t the Southeast Quarter Of ~tioa 35, Township i g No~th, R~ge 3 E~t of the seconds Principal Meridian in Hamilton County, Indiana, being more particularly described as, follows: Commencing of the Southwrst Comer of the said $o,'~h east Quarter scation; thence Noah 88 do~s 4fi minut~ 54 seconds East (Assum~ Beadn~ along ~e South Linc of the said So~e~i Queer Section a di~c~ of 874.21 fee~ thcnc~ No~h 01 de~e~ 13 mJnatc~ ~conds Wc~t a distance of 55.00 feet [o ~ ~isfi~g ~/8 ifich ~bar wldt ~p ~d the BEG~G PO~T (aaid polar be ing on ~e no~ rl~t.of, way line of E~ 11 ~' Street); · ~n~ eanrinue No~ 01 de~e~ 13 minutes 06 seconds We~ a di~ane~ of 281.76 f~t exiaing 5/8 inch r~har with ~p; thence Noah ? 1 de~e~ 15 ~nu~ 26 seaonds E~ a distancc of 324A 6 feet to ~ ~i~ing 5/8 [nab ~bar with ~p; thence Noah 69 d~s 39 m[nut~ ~econds ~t a dis~ of 3 $.00 feet m ~ existing 5/8 inch ~ wi~ cap; ~cnco $ou~ 0 de~ees 13 m~ 05 ~oads E~t a di~ of 390.84 feet to an exi~dng 5/8 inch m~r w~ ~p and ~e said noah ~ght-er-~y l~e of~ 116'~ scent: t~enca South 88 de'es 46 mlnmes $4 ~=onds W~t ~ong said no~ rlght-of-~y line and parail~l wi~ the Sou~ Line of the ~u~e~t Queer SecIian a dlst~ce of 342.18 f~t to ~c Beginning Point. Exe. eption frorfi Se above pastels that real e~mte dedicated as Congre~51ona[ Boulevard by Dedication of SWeet IUght.of-Way recorded September 9, 1987, as Instrument Humber 8% 42050, and ar, ccpt~d by the City of Cannal by Acknowledgement of Dedication and A~eeptance recorded September 9. 1957. as Ins-crament 87-42051. L ITY tARMEL JAMES BIOXlNARD~ MAYOR December 15, 2004 Mr. Tim Cook Director, State and Local Tax Services Katz, Sapper & Miller 800 E. 96m Street, Suite 500 Indianapolis, 1N 46240 RE: SRI Project Dear Tim, Thank yon for bringing your client's project to my attention. SRI occupies an interesting niche in the insurance marketplace. I hope it continues to be a profitable one. It is my understanding that SRI proposes to construct a new 40,000 square foot headquarters facility in the Carmel Technology Center that will initially house 63 employees and provide space to grow the mnploy~nent by more than 160 positions over the next 10 years. The associated capital investment is $8.5 million (real and personal property). In support of this project, the City of Carmel proposes the following: · The City of Carmel will provide a six-year real property phase-in to support tile new headquarters facility; The City of Carmel will assist SRI and its chosen contractor through the zoning, planning and permitting process by expediting the approval process for all p.ermits associated with the project; · The City of Carmel will provide support for and participate in a press conference and groundbreaking ceremony on behalf of the SRI project. Please note that final approval is required from tile Carmel City Council and the Carmel Planning & Zoning Commission. The City of Carmel will provide you with all necessary technical assistance th,'oughont the approval process. 1 would further note that tile ability of Carrnel to proceed with this offer is predicated on SRI receiving written waiver of a Memorandum of Understanding between Indianapolis and Carmel limiting economic incentives fi'om all signatories to move across intra-regional boundaries. ONE (:IVIC SQIJ?,l{li, CARM[iI., IN 'i6032 Ovl:lCti 317.571.2q01, F^× 317.844.3~i98 Iisi^il. jl~ra in;~ roi@ct.ca rmcl.in.us The City of Carmel appreciates the opportnnity to xvork with SRI and hopes that the project can be.brought to a positive conclusion in 2005. If you have any questions and/or comments, please do not hesitate to give me a call. cc: Members of the Carmel City Council Jeff Burt, President, Hamilton County Alliance Mike Hollibaugh STATEMENT OF BENEFITS REAL ESTATE IMPROVEMEN'Fs State Form 51767 (5-D4) Prescribed by the Department of Local Government Finance FORM SB - 1 / RE INSTRUCTIONS. 1, Tlus slatement must be submitted to the body designating the economic revitah'zahon area pn'or lo the public hearing if the designating body requires infor- mahon from the applicant in making its decision about whether to designate an Eco~omic Revitalization Area~ Otherwise th~s statement must be submitted to the designabng body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. "Projects" planned or commirted to after July 1, 1987 and areas designated after 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 Council, etc.) must be obtained prior to mgiation of the redevelopment or rehabilitation, BEFORE a deduction may be approved. 3. To ob a n a deduc on, Form 322 ERA Application for Deduction from Assessed Value ion of Struc ures in Economic Revitafizefion Areas must be filed with the county auditor by the later of: (1) May 10; or (2) thirty (30) days after the notice of add/ben to assessed valuation or new assessment is mailed to the property owner at the address shown on tfie records of the township assesso~ 4 Property owners whose Statement of Benefits was approved after June 30, 1997 must submd Feint CF - 1 annually to show compliance with the Statement of Benefds. (lC 6-1,1-12.1-5.6) 5 The schedules established under lC 6-1.1-12,1-4(d) and lC 6-I. 1-12. I-4,5(e) effective July 1, 2000 apply to any statement of benefils Ned on or after July I, 2000. The $chedoles effecfive prior to July I, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000, _ 303 .Gr_o~p_ LL6 AdSress of taxpayer (street and number, cit~ state and ZIP code) 8888 Keystone Crossing Boulevard, #800, Indianapolis, IN 46240 Name of contact person Bill Tysdal Telephone number (317) 575-2652 Name of designating body Carmel City Council -ocation of property See attached, Exhibit A Description of real property improvement~ (use additional sheets if necessazy) County Hamilton Specialty Risk International's ne~ headquarters will be a 42,000 square foot, all brick, two story structure. Real Estate CC-02-21 -05-0 Taxing district ESTIMATED Start Date Completion Date May, 2005 Dec., 2005 Current number Salaries Number retained 63 19.16 63 Salaries Number additional Salaries NOTE: Pursuant to lC 6-1.1-12.1-5.1 (d) (2) the COST of the properly is confidential. Real Estate Improvements Cost Assessed Value Plus estimated values of proposed project Less values of any properly being replaced Net estimated values upon completion of project Estimated solid waste converted (pounds) N lA Other benefits: N/A 000 000 Estimated hazardous waste converted (pounds) N lA that the representations in this statement are true. We have reviewed our prio¢ 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* vides for the following limitations as authorized under lC 6-'~.1-12.1-2, A. The designated area has been limited to a period bf time not to exceed calendar years * (see befow). 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 improvements; [] Yes [] N o 2. 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. 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. AttestedAppr°ved:by:(Si~Tnature azld title of authon'zed member) TelephoneDesignatednUmberbody Date signed (month, day, year) * If the designating body limits the time period during which aa area is an economic revitalization 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.