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HomeMy WebLinkAboutCC-03-19-07-01 Oxford BioSignals/Tax Abatement/ERA Sponsors: Councilors Carter and Sharp RESOLUTION CC-03-19-07-01 RESOLUTION ("RESOLUTION") OF THE COM MOM COUNCIL OF THE CITY OF CARMEL, INDIANA DESIGNATING 12900 NORTH MERIDIAN STREET AS AN ECONOMIC REVIT ALIZA TION AREA WHEREAS, I.C. 6-1.1-12.1-4 authorizes partial abatement of personal property taxes attributable to the installation of new qualifying information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software; and WHEREAS, r.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 Oxford Biosignals ("the Company"), and such Designation Application requests that the real estate located at 12900 North Meridian Street, Carmel, Indiana and legally described therein (the "Site") be designated as an ERA; and WHEREAS, the Company will lease space for their new corporate headquarters and research & development laboratories facility, provided that the Company is able to obtain personal property tax deductions as authorized by I.C. 6-1.1-12.1-4; and WHEREAS, the Company seeks to have the Council authorize personal property tax deductions in connection with the qualifying investment related to the installation of new information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software in the Company's new corporate headquarters facility at 12900 North Meridian Street; and WHEREAS, the Council has reviewed such Designation Application together with the Company's Statement of Benefits (Form SB-I) 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-I) heretofore filed by the Company, the Council hereby makes the following findings: FINDING I. 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. (b) The Site and building are zoned for and generally suitable for us!: 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"). (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) The Company's proposed redevelopment ofa portion of the site as a corporate headquarters for the Company is consistent with the site's existing zoning and represents a superior use for a portion of the building. (e) The Company's plans to install new personal property will result in an addition to the Corridor's overall assessed value within an accelerated time period. FINDING 2. The proposed redevelopment of the Site by the Company 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 the Company's proposed re- development of the Site is reasonable for projects ofa similar nature. FINDING 4. The estimate of the number of individuals who will be employed (i.e., approximately 120 FTEs over the initial five-year period) can be reasonably expected to result from the Company's proposed re- development of the Site. FINDING 5. The estimate of the annual salaries (i.e., average of greater than $60,000 per annum) of those individuals who will be employed can be reasonably expected to result from the Company's proposed re-development of the Site. FINDING 6. The estimate of the cost and assessed value of the new information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software is reasonable for equipment of that type. FINDING 7. With respect to the new information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software, the estimate of the number of individuals who will be employed (i.e., approximately 120 FTEs over the initial five-year period) can be reasonably expected to result from the redevelopment ofthe Site and installation of the new personal property. FINDING 8. The estimate of the annual salaries (i.e., average of greater than $60,000 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 the Company'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 THAT, a legal description of the previously declared ERA has been attached hereto as Exhibit A. BE IT FURTHER RESOL VED THAT, the Site is hereby declared an ERA for purposes of.granting personal property tax abatement in support of the corporate headquarters and research & development facility project, and the installation of new information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software. BE IT FURTHER RESOLVED THAT, the number of years for which the Company is entitled to a deduction for investments made in the new information techno10gy/ telecommunications equipment, laboratory equipment, research & development equipment, computer hardware; and computer software pursuant to I.c. 6-1.1-12.1-4.shall be ten (10). BE IT FURTHER RESOLVED THAT, the Carmel City Council shall.have the right to reduce the length of and/or end the economic revitalization area designation period granted for the site should the Company and/or a subsequent owner of the Company not fu1fiil commitments madeto 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 the Company is sold to a new owner, the new owner ofthe 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 Cannel. BE IT FURTHER RESOLVED THAT, the deductions authorized herein are contingent upon the designation of the ERA prior to the installation of new information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software. BE IT FURTHER ~SOLVED THAT, if the Site is located in an allocation area (as defined in 1.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 l.C. 6-1.1-12.1-4. BE IT FURTHER RESOLVED Ti-IAT, this Resolution shall be filed with the Hamilton County Assessor as required by 1.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. I.. Adopted by the Common Council of the City of Carmel, lndianatllis lq+ day of \"'C\~ ,2007, by a vote of ~ayes and ~ nays. \ FINDING 10. 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 has been attached hereto as Exhibit A. BE IT FURTHER RESOLVED THAT, the Site is hereby declared an ERA for purposes of granting personal property tax abatement in support of the corporate headquarters and research & development facility project, and the installation of new information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software. BE IT FURTHER RESOLVED THAT, the number of years for which the Company is entitled to a deduction for investments made in the new information technology/ telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software pursuant to I.C. 6-1.l-12.1-4 shall be ten (10). BE IT FURTHER RESOLVED THAT, the Carmel City Council shall have the right to reduce the length of and/or end the economic revitalization area designation period granted for the site should the Company 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 the Company is sold to a new owner, the new owner ofthe 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 information technology/telecommunications equipment, laboratory equipment, research & development equipment, computer hardware, and computer software. 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 ofthe 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 LC. 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 LC. 5-3-1 and that such notice shall be in the form attached hereto and incorporated herein as Exhibit B. l Adopted by the Common Council of the City of Carmel, Indiana this \'1.+ day of '<"f'\~ , 2007, by a vote of _ ayes and _ nays. \ Presented by me to the Mayor of the city of Carmel, Indiana this J q ~ay of 'Y"'\~c.k 2007,atLD:'f~.f.m. _ Approved by me, Mayor of the City of Carmel, Indiana this \ q+J.day of ~ ~ ~ 2007, at "",'0.. P.m. , -- ~~ ATTEST: Diana 1. Cordray, IAMC, Cle - reasurer Prepared by: Larry Gigerich, Managing Director Ginovus 8888 Keystooe Crossing Suite 1450 Indianapolis, Indiana 46240 317/8 I 9-0890 (telephone) 317/819-0888 (facsimile) Larrv(cI)Ginovus,com (e-mail) EXHIBIT A A LAND BOUNDARY DESCRIPTION OF TilE BUILDING AT 12900 NORTIl MERIDIAN STREET, HAMILTON COUNTY, INDIANA MARCil 19, 2007 PAGEIOFl 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; thence South 00 degrees 25 minutes 34 seconds East 1,166.50 feet; thence Southerly 86.80 feet along an arc to the left and having a radius of 600.00 feet and subtended by a long chord having a bearing of South 04 degrees 34 minutes 14 seconds East and a length of 86.73 feet to the intersection with the southern line of the land noted as Hamilton Crossing Building One, Phase One in the L1.T.A. survey by Paul I. Cripe, Inc. dated July 30,1993; thence North 89 degrees 34 minutes 26 seconds East 601.73 feet along said southern line and along the easterly extension of said southern line to the POINT OF BEGINNING of this description; thence North 00 degrees 25 minutes 34 seconds West 446.02 feet; thence South 90 degrees 00 minutes 00 seconds East 474.38 feet to the western right-of-way line of U.S. Highway 31; thence South 00 degrees 03 minutes 57 seconds East 582.00 feet along said western right-of-way line; thence North 90 degrees 00 minutes 00 seconds West 470.72 feet; thence North 00 degrees 25 minutes 34 seconds West 136.00 feet to the point of beginning and containing 6.314 acres, more or less. The bearings in this description are based upon the north line of the Southwest Quarter of Section 26 having a bearing of North 88 degrees 42 minutes 47 seconds East. Subject to all easements, restrictions and rights-of-way of legal record. EXIDBIT B NOTICE OF ADOPTION REGARDING THE APPROVAL OF A TEN-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR OXFORD BIOSIGNALS' NEW CORPORATE HEADQUARTERS AND RESEARCH & DEVELOPMENT FACILITY LOCATED AT 12900 NORTH MERIDIAN STREET March 19, 2007 PAGE 1 OF 1 Notice is hereby given that the Common Council of the City of Carmel, Indiana did on the 19th of March 2007 adopt a Resolution approvIng a ten-year personal property tax abatement for Oxford Biosignals for its investment in a new corporate headquarters and research & development facility to be located at 12900 North Meridian Street. This Resolution, which affects the following described property located in the City of Carmel, Indiana: 12900 North Meridian Street, Clay Township, Hamilton County, Hamilton Crossing West was adopted following the filing of information by Oxford Biosignals and the previous approval ofthe designation of property located at 12900 North Meridian Street as an Economic Revitalization Area for the purpose of securing an abatement of property taxes pursuant to Indiana Code Section6-1.1-l2.l-4 relative to the installation of new qualifying research and development equipment, laboratory equipment, information technology/computer hardware and software- oriented equipment. Such Resolution previously approving such property as an Economic Revitalization Area and such Resolution approving a ten-year personal property tax abatement for Oxford Biosignals were provided by the Common Council of the City of Carmel, Indiana on the 16th of April 2007. Furthermore, the Resolution states that on the 16th of April 2007 at 6 p.m. in the Council Chamber Room located at One Civic Square, Carn1el, 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 personal property tax abatement for Oxford Biosignals for its investment in new qualifying research and development equipment, laboratory equipment, information technology/computer hardware and software-oriented equipment. A description of information related to Oxford Biosignals' 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. _L ;' ~ W STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R /1-06) Prescribed by the Department of Local Govemment Finance FORM 5B-1/ PP PRIVACY NOTICE The cost and any specific Individual's salary information Is confidential; the balance of the filing is pUblic record rtCS-1.1-12.1-5.1 c and d. INSTRUCTIONS: ,. This statement must be submiHed to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the appliesn! in making its decision about whether to designate an Economic Revffafization Area. Otherwise this statement must be submitted to the designating body BEFORE a person installs the new manufacturing equipment and/Of research and development equipment, and/or logistical distribution equipment and/or information technology equipment for which the person wishes to Glaim a deduction. "Projects" planned or committed to after July 1. 1987. and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (IC 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to instalfaUon of the new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment, BEFORE a deduction may be approved 3. To obtain a deduction. a person must file a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 103-ERA) with the township assessor of the township where the property is situated. The 103-ERA must be filed between March 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional, unfess a filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 and the extended due date of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF-1/ PP annually to show compliance with the Statement of Be,nems. (IC.6-:.1.1~12.1~5.6)_ 5. The schedules established under IC 6-1. 1-12. 1-4.5(d) and (e) apply to equipment installed after March 1, 2001. For equipment installed prior to March 2, 2001, the schedules and statutes in effect at the time shall continue to apply. (IC 6-1.1-12.1-4.5(f) and (g)) SECTION 1 TAXPAYER INFORMATION Name of taxpayer Oxford Biosi nals Address of taxpayer (number and street. city, state, and ZIP code) 12900 North Meridian Street Name of contact person Frank Chen ,President and CEO Name of designating body Ci of Carmel Common Council Location of property County 12900 North Meridian Street Hamilton Description of manufacturing equipment andlor research and development equipment andlor logistical distrjbution equipment and/or information technology equipment. (use additional sheets if necessary) 03-19-07-01, DLGF taxing district "number 29-023 Hamilton ESTIMATED START DATE COMPLETION DATE Oxford Biosignals will invest in excess of $2.4 million in information technology and R & 0 equipment to support corporate headquarters and R & 0 operations. Manufacturing Equipment R & D Equipment 04/01/2007 12/31/2011 Logist Dist Equipment IT Equipment 04/01/2007 12/31/2011 COST ASSESSED VALUE LOGIST DIST EQUIPMENr COST ASSESSED VALUE IT EQUIPMENr NOTE: Pursuantto Ie 6-1.1-12.1-5.1 (d) (2) the COST of the property is confidential. MANUFACTURING EQUIPMENT COST ASSESSeD VAlUE R & 0 EQUIPMENT COST ASSESSED V1\LUE Current values Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of project 325,000.00 2,010.000.00 325,000.00 2,010,000.00 Estimated solid waste converted (pounds) Other benefits: Estimated hazardous waste converted (pounds) SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. esen~tiv~ J ______ litle ~/<.-~ President and CEO Date signed (month, day, yea" 02/27/2007 FOR USE OF THE DESIGNATING BODY 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 Ie 6-1.1-12.1-2.5. provides for the following limitations as authorized underlC 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: OYes DNo 1. Installation of new manufacturing equipment; 2. Installation of new research and development equipment; OYes DNo 3. Installation of new logistical distribution equipment. OYes DNo 4. Installation of new information technology equipment: OYes DNO C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of $ D. The amount of deduction applicable to new research and development equipment is limited to $ ----------------- cost with an assessed value of $ -------------------- E. T~e amount of deduction, applicable to.new,logistical distribution.equipment is limited to $ cost with an assessed value of $ F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of $ G. Other limitations or conditions (specify) H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment and/or new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for: 01 year 06 years ** For ERA's established prior to July 1, 2000, .QDbt. a 02 years 07 years 5 or 10 year schedule may be deducted. 03 years 06 years 04 years o 9 years D5years ** 010 years ** Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable 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 \ Date signed (month. day, year) Attested by: Designated body * If the designating body limits the time period during which an 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 IC 6-1.1-12.1-4.5 -.- - - - - . "