HomeMy WebLinkAboutCC-08-06-07-01 Baker Hill Corp./Tax Abatement/ERA
SPONSOR: COUNCILOR CARTER
RESOLUTION CC-08-06-07-01
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 Camlel,
Indiana (the "Council"), may designate an area as an Economic Revitalization Area ("ERA") and
detemline the duration of the abatement period(s) for such property; and
WHEREAS, Baker Hill Corporation seeks the Council to authorize personal property tax
abatement in connection with the investment and job impact ("project"); and
WHEREAS, the Council has reviewed Baker Hill Corporation's Statement of Benefits
(Foml SB-l) and now desires to take actions hereinafter set forth.
NOW, THEREFORE, based ,on a review of the Form SB-l filed by Baker Hill
Corporation, the Council hereby makes the following findings:
FINDING 1. The site is suitable for designation as an ERA due to the following economic
conditions:
(a) The area has become undesirable because of a lack of development and other
factors that have impaired values or prevent a normal development of property
or use of property.
(b) Expansion of Baker Hill Corporation's operations at this location will result in
an addition to the area's overall assessed value within an accelerated time
period.
(c) The project represents a superior use for the site.
(d) The project is consistent with similar land uses on adjacent properties.
FINDING 2. The estimate of the cost and assessed value of the proposed project is reasonable
for projects of a similar nature.
FINDING 3. The estimate of approximately 175 employees to be retained through the project
completion date listed in the SB-l at an annual average wage of $67,000 can be
reasonably expected to result from the project.
FINDING 4. The estimate of 80-1 00 positions to be created through the project completion date
listed in the SB-1 at an annual average wage of $70,000 can reasonably be
expected to result from the project. It is anticipated that the company will have a
minimum number of employees in Carmel at calendar year end as follows: 207
employees by 2010; 239 employees by 2014; 255 positions by 2016.
FINDING 5. Other benefits can be reasonably expected to result from the project.
SPONSOR: COUNCILOR CARTER
FINDING 6. 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 site has
bcen attached hereto as Exhibit A.
BE IT FURTHER RESOL VED THAT, the Site is hereby declared an ERA for purposes
of granting tax abatement for new infonnation technology equipment.
B~: IT FURTHER RESOLVED THAT, the number of years for which Baker Hill
Corporation is entitled to a deduction for personal property taxes shall be ten (10) years.
BE IT FURTHER RESOL VED THAT, in the event that Baker Hill Corporation 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 infomlation regarding the plans for
the company's operations in the City of Carmel.
BE IT FURTHER RESOLVED THAT, the deductions authorized herein arc contingent
upon the designation of the ERA prior to placing any of the New Information Technology
Equipment in service.
BE IT FURTHER RESOLVED THAT, the ERA designation terminates March 1,2017;
however, relative to New Infomlation Technology Equipment installed prior to the termination of
the ERA designation, this temlination does not limit the period of time that Baker Hill Corporation
or a successor owner is entitled to receive a partial abatement of property taxes.
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.] -4.
BE IT FURTHER RESOLVED THAT, this Resolution shall be filed with the Hamilton
County Assessor as required by I.c. 6-].] -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 CARTER
-t,t.
PASSED by the Common Council of the City of Cannel, Indiana, this L day of
2007, by a vote of ., ayes and (') nays.
Ciu~
COMMON COUNCIL FOR THE CITY OF CARMEL
ATI~~
Diana L. Cordray, IAMC, Clerk-Treasl
Presented by me to the Mayor of the City of Cannel, Indiana this '1 +l.-. day of .0 ur
2007 at 9: I/O A....M.
~~
Diana L. Cordray, IAMC, Clerk~1l-easurer
.Approved bX me, Mayor of the City of Cannel, Indiana this <2+l day of au ~ ,2007 at
/0;02 H.M.
#~ /~ P
~amard Mayor r
A TIEST:
~
Contact Information:
Tim Cook on behalf of Baker Hill Corporation
317-580-2038
Diana L. Cordray, IAMC, Clerk-Treas r r
EXHIBIT A
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 corner 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 116.10 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 05 degrees 58 minutes 12 seconds East
and a length of 115.92 feet to the northeastern corner of the dedication of public right-of-way for
126th Street, Instrument number 8826758, as shown the Land Title Survey prepared by Paull.
Cripe, Inc., for Duke Associates, dated December 17, 1986 and last revised November 8, 1989;
thence along the eastern right-of-way line of said 126th Street the following two (2) courses (1)
Southerly, and Southeasterly 299.23 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 25 degrees 47 minutes 59 seconds
East and a length of 296.14 feet (2) South 40 degrees 05 minutes 13 seconds East 453.12 feet
along said right-of-way line to the southwestern corner of a proposed I ngress-Egress Easement
shown on the I.L.T.A. Survey prepared by Paull. Cripe, Inc., for Duke Associates, dated August
31,1989 and last revised November 13,1989 and the POINT OF BEGINNING of this description:
thence along the southeastern and eastern lines of said proposed Ingress-Egress Easement the
following three (3) courses (1) North 49 degrees 54 minutes 47 seconds East 74.95 feet; (2)
Northeasterly and Northerly 298.72 feet along an arc to the left and having a radius of 340.00 feet
and subtended by a long chord having a bearing of North 24 degrees 44 minutes 36 seconds
East and a length of 289.20 feet; (3) North 00 degrees 25 minutes 34 seconds West 199.70 feet
to the south line of the proposed Building 4 parcel; thence South 90 degrees 00 minutes 00
seconds East 470.72 feet along said south line to the western right-of-way line of U.S. Highway
31; thence South 00 degrees 03 minutes 57 seconds East 912.72 feet along said western right-
of-way line to the northern right-of-way line of said 126th Street; thence along the northern and
northeastern right-of-way line of said 126th Street the following three (3) courses (1) South 89
degrees 54 minutes 47 seconds West 30.04 feet: (2) Westerly, and Northwesterly 523.60 feet
along an arc to the right and having a radius of 600.00 feet and subtended by a long chord having
a bearing of North 65 degrees 05 minutes 14 seconds West and a length 01507.15 feet; (3) North
40 degrees 05 minutes 13 seconds West 246.42 feet to the point of beginning and containing
10.071 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.
STATEMENT OF BENEFITS
PERSONAL PROPERTY
Slate Form 51764 (R /1-06)
Prescribed by the Department of Local Government Finance
FORM 58-1/ PP
PRIVACY NOTICE
The cost and any specific individual's
salary information is confidemial; the
balance 01 the filing is public ret:otd
I per Ie 6-1.1-12.1-5.1(~1 and "id).
INSTRUCTIONS:
1. This sfatement must be submiUed to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. OthelWise this statement must be submitted
to the designating body BEFORE a person installs the new manufacturing equipment and/or research and development equipment. and/or logistical d;sln'bution
equipment andlor information technology equipment' for which the person wishes to claim a deduction. "Projects" planned or committed to after July 1, 1987,
and areas designated after July " 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 obfained prior to installation of rhe 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 fife a certified deduction ~chedufe with the'persan's personal properly retum 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 arid May 15 of the
assessment year in which new manufacturing equipment andlor research and development equipment and/or logisticat distribution equipment and/or
information technology equipment is installed and fully functional, unless a filing eKtension 'has been obtained. A person who obtains _a filing extension must
file the fonn between March 1 and the extended due date afthat year: .
4. Property owners whose Statement of Benefits was approved afier June 30, 1991. must submit Form CF~1 / PP annually to show compliance with the
Sl;;!tementofBenefits. (Ie 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 Marcil " 2001. For equipment installed prior to March 2,
. 2001,.tho schedules and statutes in effect at the t~me shall continue to apply. (lC 6-1. 1.12. 1-4.5(f) and (g))
0" 0
~ame of .Iaxp~yer
Baker Hill CorPoration
. Address of taxpayer (number end slreel, city. state, and ZIP code)
1'2900 N. Meridian Street, Suitf3 200, Carmel, IN 46032
Name of contact p,~ 4.
. ~an MOdiano,GFO ,....
Name of designating body
Carmel City Council
Location of property
12900 N. Meridian Street. Suite 200, Carmel, IN 46032
Oescriptlon of manufacturing equipment andlor research and development equipment
~ndlor-Iogistical distribution equipment andlor information technology equipment.
(use- udditional sheets, if necessary)
County
Hamilton
OLGF ~lI:in9dl~tFict-n~
2901B
ESTIMATEO
START DATE COMPLETION DATE
ManufacturinQ Equipment
IT and other equip~ent. expected investment = $1 million per year for 10 years
R & 0 Equipment
logist Dist Equipment
COST
ASSESSED
VALUE
COST
LOGIST DIST
EQUIPMENT
A$iiessllo
.\A\I;uS
COST'
ASSESSED
VAlUE
NOTE: Pursuant to Ie 6--1.1-12.1-5.1 (d) (2) the
COST of the property is confid.ential.
MANUFACTURING
EQUIPMENT.
COST ASSESSED
VALUE
R & D EQUIPMENT
Current ....alues
Plus estimated values of proposed project
Less values of any property being replaced
Net estimated values upon completion of proiect
10,000,000
3,000,000
.. ..
Estimated solid waste converted (pounds)
Other benefrts:
~ LA::-)
J'~, "J.l:. rl";,",,'l~':,'.";tl,\t",".,:,,, : ,'~J'FORUSEO'FTHEDE'SIG'NA'T ' B' ".~, <,- j" '1l, ,," ,,:."
, I(.l~', ,~.l...(':j.'~):\I",,~,~~~'t.::':' I, ,'.;.~"",. I t"\ING OOY ",.,' :' 1,1".., 1'" J'~.'l
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 under Ie 6.1.1-12.1-2.
A . The designated area has been limited to a period of lime not to exceed
is
calendar years. (see below). The date this designation expires
B . The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment;
2. Installation of new research and development equipment;
3. Installation of new logistical distribution equipment.
4. Installation of new information technology equipment;
DYes 0 No
DYes 0 No
DYes DNo
DYes 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 S
with an assessed value of $
cost
E . The 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:
o 1 year 0 6 years U For ERA's established prior,to July 1, 2000..Q!Jjy a
o 2 years 0 7 years .5 or 10 year schedule may be deducted,
o 3 years 0 8 years .
o 4 years o 9 years
05years" 0 10 years H
Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable arid have
determined that the totality of be 'ent to justify the deduction described above.
Telephone number Date signed (month, day. year)
(3/1) '571-.::J'-/1 'il~6-6~
Cov-.. "'<'C ~
o 'gnated body
<() '<'<' ~ 0If'.
~ If the designating body limits the time period du n which an area is an economic revitalization area, it does not limit the len.gth of time a taxpayer is
entitled to receive a deduction to a number ofye r designated under IC 6-1.1-12.1-4.5
Baker Hill Corporation
Attachment to Statement of Benefits
Estimated project investment by year:
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
TOTAL
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$10,000,000
$300,000
$300,000
$300,000
$300,000
$300,000
$300,000
$300,000
$300,000
$300,000
$300,000
$3,000,000
Baker Hill expects to create 80-100 new positions through the project completion
date with the newly created jobs having average annual wages of approximately
$70,000, It is anticipated that the company will have a minimum number of
employees in Carmel at calendar year end as follows: 207 employees by 201 0;
239 employees by 2014; 255 positions by 2016.
.........
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CITY OFt'CARMEL
JAMtS BRMNARD, MAYOR
September 5. 2006
Mr. Brian Modiano
Chief Financial Ofticer
Baker Hill Corporation
12900 North Meridian, #200
Carmel, TN 46032
Dear Bri an:
We are pleased to learn that the City of Carmel is under consideration for Baker Hill's future
expansion plans. Based on an invesunent of $1 0.000,000 in personal property over the next ten
years, Carmel is prepared to support ten year personal property tax abatement. Depending On
how quickly the equipment is replaced, the abatement has a minimum estimated value of
$216,711.
Also, l understand that Baker Hill is focused'on sites along US-31. As you know, the city of
Carmel has committed, and will continue to commit, significant local support to fund public
infrastructure to this area. The city has made this investment for many reasons, including the
retention and attraction of future business expansion from proven, high-wage, high-tech
companies like Baker Hill. Through the next five years, the city anticipates that a minimum of
$2,000.000 in local funds will be devoted to this area. Although the impact of this as it affects
Baker Hill is speculative given that a variety of sites along this corridor remain possibilities, we
will take into account improvements needed to make this area better suited to Baker Hill's needs.
Whether those needs include ingress and egress or other requirements, we will work closely with
the appropriate governing bodies to b.;ve those eoncems every consideration.
Please be aware that before Baker Hill qualifies for any of these prOb'f1lmS, it will be necessary for
the company to receive the approval of the C.armel City Couneil and/other local authorities.
Thank you for your consideration of our community in your plans. We look forward to working
with Baker Hill and eontinuing our support of it. growth.
!~UIYR;J
(jt.mes C. Brainard
Mayor
cc: Tim Cook, KSM Economic Development Advisors, LLC, 800 E. 96ili Street, Suite 500.
Indianapolis, IN 46240
ON> C'V'C SQliA'<>, CAll"""" IN 160.~2 OPFrce 317.571.2401, FAX 3J7.1144.J49H
EMAIl jbrain~ rd<t'ocj.rmel.in.gov