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Home My WebLink AboutCC-10-07-24-04 Tax Abatement ACESSponsors: Joshi and Worrell This Resolution was prepared by Sergey Grechukhin, Carmel Transactions Chief, on September 26, 2024. No subsequent revision to this Resolution has been reviewed by Mr. Grechukhin for legal sufficiency or otherwise. RESOLUTION NO. CC 10-07-24-04 A PRELIMINARY RESOLUTION DESIGNATING AN ECONOMIC REVITALIZATION AREA AND QUALIFYING CERTAIN PERSONAL PROPERTY FOR TAX ABATEMENT - THE ALLIANCE FOR COOPERATIVE ENERGY SERVICES POWER MARKETING, LLC Synopsis: A preliminary resolution that designates the real property located at 4140 W 99th Street, Carmel, Indiana as an economic revitalization area and grants a partial abatement of property taxes attributable to certain eligible equipment installed therein WHEREAS, Ind. Code § 6-1.1-12.1 (the “Act”) allows a partial abatement of property taxes attributable to the installation of certain equipment in “economic revitalization areas”; and, WHEREAS, the Act provides that an economic revitalization area must be a geographic area which is within the corporate limits of a city and which has become undesirable for, or impossible of, normal development and occupancy because of lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard building or other factors which have impaired values or prevent a normal development of property or use of property; and, WHEREAS, the Act authorizes the Common Council of the City of Carmel, Indiana (the “Council”) to designate economic revitalization areas by following a procedure involving adoption of a preliminary resolution, publication of a notice of a public hearing, conducting a public hearing and adoption of a final resolution confirming the preliminary resolution and the tax abatement; and, WHEREAS, the Council believes that it is in the best interest of the citizens of the City of Carmel (the “City”) to create an economic revitalization area designation in a manner whereby citizens of the City will benefit from the creation of permanent jobs, expansion of the property tax base, and protection of private investment; and, Resolution CC 10-07-24-04 Page One of Seven Pages Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Sponsors: Joshi and Worrell This Resolution was prepared by Sergey Grechukhin, Carmel Transactions Chief, on September 26, 2024. No subsequent revision to this Resolution has been reviewed by Mr. Grechukhin for legal sufficiency or otherwise. WHEREAS, the Alliance for Cooperative Energy Services Power Marketing LLC d/b/a ACES Power, (the “Company”), has requested the personal property abatement as described herein and filed a Statement of Benefits Form (SB-1) with the City of Carmel which is attached hereto and fully incorporated herein; WHEREAS, the Company is requesting that the real estate located at 4140 W 99th Street, Carmel, Indiana (the “Project Site”) be designated as an Economic Revitalization Area for the purpose of achieving property tax savings in connection with the acquisition and installation of certain depreciable personal property (the “Project”) at the Project Site; and, WHEREAS, the Project Site is shown and described on Exhibit A, which is attached hereto and incorporated herein by this reference, and is presently part of Hamilton County Tax Parcel 17-13-07-00-10-005.000 and State Parcel Number 29-13-07-010-005.000-018; and, WHEREAS, the Company has operations in Arizonia, Minneapolis and North Carolina and all were considered for this expansion project, with Carmel being the preferred location pending finalization of project incentives; and, WHEREAS, the Company committed to invest Six Million Five Hundred Thousand Dollars ($6,500,000) in tangible personal property at the Project Site, of which Four Million Dollars ($4,000,000) will qualify for personal property tax abatement as new IT equipment (new IT equipment is hereinafter referred to as “Eligible Personal Property”); and, WHEREAS, the Company anticipates retention of two hundred fourteen (214) existing full-time employees compensated at an average annual wage of One Hundred Thirty Thousand ($130,000) per year (excluding overtime and benefits) at the Project Site as a result of the Project. The Company also anticipates adding approximately forty-five (45) new full-time employees compensated at an average annual wage of One Hundred Eighteen Thousand Dollars ($118,000) Resolution CC 10-07-24-04 Page Two of Seven Pages Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Sponsors: Joshi and Worrell This Resolution was prepared by Sergey Grechukhin, Carmel Transactions Chief, on September 26, 2024. No subsequent revision to this Resolution has been reviewed by Mr. Grechukhin for legal sufficiency or otherwise. per year (excluding overtime and benefits) as a result of the Project. All investments will be complete and new full-time employees hired before December 31, 2028. BASED UPON THE ABOVE, IT IS THEREFORE RESOLVED, by the Common Council of the City of Carmel as follows: 1. The request for an economic revitalization area designation relative to the Project was properly made by the Company, and the Statement of Benefits Form (SB-1) is hereby approved by the Council. 2. The Project Site is located in an area of the City where municipal services are provided and no additional infrastructure will be necessitated by the Project. 3. Project Site is zoned for and is generally suitable for the proposed expanded use of commercial office and is consistent with the site’s existing development pattern; however, given the age of the facility at the Project Site and the complexity of the technology systems being installed at the site, and security systems and structures required, investment in the Eligible Personal Property will require significant additional investment in real property improvements to accommodate the Project making it undesirable for normal development 4. Evidence has been submitted and considered which indicates that the Project will further and promote municipal development objectives by expansion of the property tax base through the purchase and installation of the Eligible Personal Property including, but not limited to, servers and related hardware, computer storage hardware, laptops, computer network switches and other network equipment, date center equipment (batteries and cooling units), large format monitors and phone system hardware. Resolution CC 10-07-24-04 Page Three of Seven Pages Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Sponsors: Joshi and Worrell This Resolution was prepared by Sergey Grechukhin, Carmel Transactions Chief, on September 26, 2024. No subsequent revision to this Resolution has been reviewed by Mr. Grechukhin for legal sufficiency or otherwise. 5. The Council hereby designates the Project Site as an Economic Revitalization Area for purposes of establishing a deduction to the assessed value of Eligible Personal Property acquired and installed within the building located upon the Project Site, subject to the adoption of a confirmatory resolution by the Council. 6. The Council further designates that the economic revitalization area designation declared by this Resolution shall expire on December 31, 2028. 7. The deduction provided by this Resolution shall be for the assessed value of all Eligible Personal Property installed at the Project Site on or after November 1, 2024, and for a period of five (5) years from the date of the first full assessment of the Eligible Personal Property located at the Project Site. The Company agrees to not file any appeal of annual tax assessments over the course of the five (5) year period. The Council hereby finds, declares and determines that deductions from the assessed value of the Eligible Personal Property approved by this Resolution shall be allowed pursuant to the following five (5) year deduction schedule, which the Common Council hereby establishes, prescribes and adopts: YEAR OF DEDUCTION PERCENTAGE OF DEDUCTION 1st 75% 2nd 75% 3rd 75% 4th 75% 5th 75% 6th 0% 8. In support of the deductions contained in this Resolution, the Council makes the following FINDINGS: a. The estimated cost of the Eligible Personal Property investment presented by the Company is reasonable for equipment of that type. Resolution CC 10-07-24-04 Page Four of Seven Pages Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Sponsors: Joshi and Worrell This Resolution was prepared by Sergey Grechukhin, Carmel Transactions Chief, on September 26, 2024. No subsequent revision to this Resolution has been reviewed by Mr. Grechukhin for legal sufficiency or otherwise. b. The estimate of the number of individuals who will be employed or whose employment will be retained by the Company can be reasonably expected to result from the installation of the Eligible Personal Property. c. The annual salaries for the individuals who will be employed or whose employment will be retained by the Company can reasonably be expected to result from the installation of the Eligible Personal Property. d. Based on the total projected investment by the Company, increased assessed valuation, and the expansion of the employment base within the City of Carmel, the benefits to the City are sufficient to justify the granting of the deduction described in Section 7 above. 9. The terms of this Resolution are subject to the adoption of a Final Resolution confirming the terms and conditions herein after a public hearing to be held on November 18, 2024, at 6:00 p.m., in the Council Chamber Room located at One Civic Square, Carmel, Indiana 46032. 10. The deductions provided by this Resolution are subject to the Company’s compliance with the terms of the Agreement entered into between the City and the Company, and the requirements contained in Ind. Code § 6-1.1-12.1, and may only be modified or terminated according to the procedures contained in Ind. Code § 6-1.1-12.1-5.9. 11. A copy of this Resolution shall be filed with the Hamilton County Assessor as required by Ind. Code § 6-1.1-12.1-2.5. Further, a copy of this Resolution and the Statement of Benefits Form shall be filed with the officers of each taxing unit that has authority to levy property taxes in the geographic area which is hereby allowed deductions at least ten (10) days prior to the public hearing on this Resolution. Resolution CC 10-07-24-04 Page Five of Seven Pages Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Sponsors: Joshi and Worrell This Resolution was prepared by Sergey Grechukhin, Carmel Transactions Chief, on September 26, 2024. No subsequent revision to this Resolution has been reviewed by Mr. Grechukhin for legal sufficiency or otherwise. 12. Further, the Company shall cause a notice to be published in the paper of record in accordance with Ind. Code § 5-3-1, which shall advise that at the Carmel City Council's meeting on November 18 at 6:00 p.m., the Council will receive and hear all remonstrance and objections from interested persons, and, having heard and considered same, will act to rescind, modify and confirm, or confirm this Resolution. The notice must be published no later than ten (10) days before the aforementioned Council meeting and shall state that a description of the affected area is available and can be inspected in the Hamilton County Assessor's Office. Signature page to follow Resolution CC 10-07-24-04 Page Six of Seven Pages Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Sponsors: Joshi and Worrell This Resolution was prepared by Sergey Grechukhin, Carmel Transactions Chief, on September 26, 2024. No subsequent revision to this Resolution has been reviewed by Mr. Grechukhin for legal sufficiency or otherwise. SO RESOLVED, by the Common Council of the City of Carmel, Indiana, this ____ day of ________, 2024, by a vote of _____ ayes and _____ nays. COMMON COUNCIL FOR THE CITY OF CARMEL ___________________________________ Anthony Green, President Adam Aasen, Vice-President ___________________________________ ____________________________________ Jeff Worrell Teresa Ayers ___________________________________ ____________________________________ Shannon Minnaar Anita Joshi ___________________________________ ____________________________________ Ryan Locke Matt Snyder ___________________________________ Rich Taylor ATTEST: _________________________________ Jacob Quinn, Clerk Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of _________________________ 2024, at _______ __.M. ____________________________________ Jacob Quinn, Clerk Approved by me, Mayor of the City of Carmel, Indiana, this _____ day of ________________________ 2024, at _______ __.M. ____________________________________ Sue Finkam, Mayor ATTEST: ___________________________________ Jacob Quinn, Clerk Resolution CC 10-07-24-04 Page Seven of Seven Pages Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E October Opposed 11:30 A 11:15 21st October 22nd 2 A October Opposed 22nd 7 Exhibit A Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E