HomeMy WebLinkAboutCC-10-15-07-01 Maaguzi, LLC/Tax Abatement/ERA
SPONSOR: Councilor Rattermann
RESOLUTION CCoI0-15-07-01
(Formerly Resolution CC-IO-OI-07-01)
RESOLUTION OF THE COMMON CqUNCIL OF THE CITY OF
CARMEL, INDIANA FOR DESIGNATION OF THE ATTACHED PROPERTY ASAN
ECONOMIC REVITALIZATION AREA
WHEREAS, under LC. 6-1.l-12.1~2.5 the Common Council oftbe City of Carmel,
Indiana (the "Council") may designate an area as an Economic Revitalization Area ("ERA") and
determine the duration of the abatement period(s) for such property; and
WHEREAS, Maaguzi, LLC will be the lessee of the office space; and
\VHEREAS, Maaguzi,LLC, seeks the Council to authorize a personal property tax
abatement in connection with the investment and job impact ("project"); and
WHEREAS, the Council has reviewed Maaguzi, LLC Statement of Benefits (Form SB-l)
and now desires to take actions hereinafter set forth.
NOW, THEREFORE, based upon a review of the Form SB-I filed by Maaguzi, LLC, the
Council hereby makes the following findings:
FINDING I. . The site is suitable for designation as an ERA due to the following
economic conditions:
(a) Expansion will result in an addition to thc area's overall assessed value within
an accelerated time period.
(b) The project represents a superior use for. the site.
(c) The project is consistent with similar land uses on adjacent properties.
FINDING 2~ The estimate of the cost and assessed value oftbeproposed project is reasonable for
projects of a similar naturc.
FINDING 3. The estimate of the number of individuals who will. be employed can be reasonably
expected to result from the.project.
FINDING 4. The estimate of the annual salaries (i.e., average of approximately $67,313 per
annum) of those individuals who are currently employed can be reasonably
expected to result from the project.
FINDING 5. . The estimate of the cost and assessed valueofthe project is reasonable for a project
of this type.
FINDING 6. The projected creatiori of approximately 35 FTEs over the next three years can be
reasonably expected. .
SPONSOR Councilor Rattermann
FINDING 7. The estimate of the annual salaries ofapptoximately $84,745 per annum of those
individuals who will be newly employed can be reasonably expected.
FINDING 8. Other benefits can be reasonably expected to result from the project.
FINDING 9. 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
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 expansion ofMaaguzi, LLC.
BE IT FURTHER RESOLVED THAT, the number of years for which Maaguzi, LLC is
entitled to a deduction for personal property taxes shall be three (3).
BE IT FURTHER RESOLVED THAT, in the event that Maaguzi, LLC, is sold to a new
owner, the new owner 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, if the Site is located in an allocation area (as
defined in I.C. 36-7-14-39 or I.C. 36c 7- I 5.1"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 requiredunder.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.
PASSED by the Common Council of the City of Carmel, Indiana this ;~ day of
O~ .2007, by a vote of "7 ayes and 0 nays.
SPONSOR: Councilor Rattermann
THE CITY OF CARMEL
--
Diana 1. Cordray, IAMC, C]erk- reasurer
Presented by me to the Mayor of the City of Carmel, Indiana this IS+kday of
O~ 2007,at.";~ f.M.
~11
Diana 1. Cordray, IAMC, Clerk-T.
~roved by me, Mayor of the City of Carmel, Indiana, this 16+-l-..dayof
o ~ 2007, ati:~ .p .M.
t~~
Jpities Brainard, Mayor
---
A
Contact Information
Diana Bilger on behalf of Maaguzi, LLC
317-68]-7174
EXHIBIT A
Legal Description of Meridian Mark U, 11711 N. Meridian St., Carmel, Indiana
PARCEL III:
Part of the Southwest Quarter of SeCtion 35, Township 18 North Range 3 East in
Hamilton County, Indiana, being mnre particularly described as follows:
Beginning. at a point on the East line of the said Southwest Quarter Section North 00
degrees 05 minutes 40 seconds West (assumed bearing) 728.45 feet form the .
Southeast corner of the said Quarter Section; thence Nortb 00 degreeo05 minutes
40 seconds West along the said East line 538:26 feet; tbence South 89 degrees 54
minutes 20 seconds West 80.00 feet; thence North 45 degrees 05 minutes 40 seconds
West 275.07 feet; thence South 89 degrees 54 minutes 20 seconds West 47.99 feet;
thence North 45 degrees 05 minntes 40 seconds West 267.30 feet; thence Sonth 89
degrees 54 minutes 20 seconds West 75.20 feet to the East limited access rlght-of-
way Une of U.S. #31; thence South 00 degrees 04 minutes 52 seconds East along the
said East limited access right-of-way line 775.92 feet; thence North 89 degrees 54
minutes 20 seconds East 172.39 reet; thence North 44 degrees 54 minutes 20 seconds
East 145.00 feet; thence South 45 degrees 05 minutes 40 ;seconds East 287.00 feet to
a curve baving a radius of 117.00 feet, the radius point of which bears North 44
degrees 54 minutes 20 seconds East; thence Southeasterly along the said curve 61.26
feet to a point which bears South 14 degrees 54 minutes, 20 seconds West from said
radIus point; thence South 75 degrees 05 minutes 40 seconds East 58S8 feet to the
BeginnIng Point.
Together with easement rights created, and reserved in a Declaration of
Coordinated Development Covenants and Easements, executed by Meridian Mile
Associates, a limited partnership on Jannnry 14, 1984 as Instrument Nnmber 84-755
in Miscellaneous Record 177, page 187-211.
EXCEPT:
That certain real property deeded to the City of Carmel, Indiana, and more
particularly described in.that certain Limited Warranty Deed frnm OP&F
Indinnapolis, LLC to City of Cannel, Indiana, filed on November 16,2000, in the
Office of the Recorder of Hamilton County, Indiana, as Instrument Number
200000057658. . .
EXCEPT:
Tbat certain real property dedicated to the City of Carmel, Indiana, and more
partlcnlarly described.in tbat certain Grant .f.Rlgbt-of-Way from OP&F
Indianapolis, LLC to City of Carmel, Indiana, filed on November 16, .2000, in the
Office of tbe Recorder of Hamilton County, Indiana, as Instrument Number
200000057659.
STATEMENT OF BENEFITS
PERSONAL PROPERTY
State Form 51764 (R/l,-06)
Prescribed by the.Department of Local Government Finance
FORM SB-1 J PP
INSTRUcnONS:
1.
PRIVACY NOTICE
The cost and any spoclffc Individuals
salary fn(onnation Is confidential: the
balance orrha ""np/s pubflc record
per Ie 8.1.1-11.1-5,1 fe) and (d).
This statement musi be submitted to the body designating the Economic Revitalization Area prior to the pubfic hearing if fhedesignaling body requires
information from the applicant fn making its deefsion about whether to dfJSIgnate an EconomicRevitafization Area. Otherwise this statement must be submitted
to the designating body BEFORE a person installs the new manufactunng equipment and/or research and development equipment. andlor logistical distribution
equipment andlor information technology equipment for, which the person wishes 10 claim a deduction. 'Projects~ planned or committed /0 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.) mus( be obtained prior /0 installation of the new manufacturing equipment
and/or research and development equipment andlor logistical disllibution equipment andlor information technology equipment. BEFORE a deduction may
be approved .
To obtain a deduction, a person must file a certified deduction schedule wi/hthe person's personal property relum on a certjfied deduction schedule (Form
1D3-ERA) with the township assessor of the lownship where thepropertyfs situated. The 103-ERA must be filed between March 1 and May1S oflhe
assessment year in which new manufacturing equipm~nt andlor research and development equipment and/or logistical distribution equipment andlor
information technology equrpment is instaf/ed and fully functional, unless a filing extension has been obtained. A peison who obtains a filing extension must
file the form between March 1 and the extended due date of that year.
Property ownerswhoss Statement of Benefits was appro....ed after June 30.'1991,.musl submit Form CF-1/ PP annually /0 show compliance with the
Statement of Benefits. (IC &;,1.1-12.1-5.6) .
3.
4.
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 inslalledprior to March 2,
2001, the schedules and statutes in effect at the time shalf continue fa apply. (lC 6-1.1-12.14.5(1) and (g)) .
~SECTION~1 ... '!~..xfJ''yE!!lNf..oR!VIATION
Name of taxpayer
MAAGUZI, LLC
Address of taxpayer (street and number, cily, state, ZIP code)
11711 NORTH MERIDIAN STREET CARMEL. IN 46032
Name of designating bC?dy
CARMEL CITY COUNCIL
location of property
11711 NORTH MERIDIAN STREET CARMEL IN
Description of manufacturing equipment and/or research and deve.lopmenl equipment
and/or logislical distribulion equipment and/or informaliontechnology equipment
(use addiUonal sheets if necessary)
Resolution number (s)
C-10-15-07-01/CC-l~-19-0 -02
County
HAMILTON
DLFG taxing district number
ESTIMATED
Start Date Completion Date
INFORMATION TECHNOLOGY EQUIPMENT USED IN THE
PRODUCTION OF CLINICAL TRIAL SOFTWARE.
Manufacturing Equipment
R & 0 Equipment
Loglst Dist Equipment.
IT Eql!ipment .
09/01/2007
12/31/2010
Cost
Manufacturing
Equipment
sesse
Value
R & 0 Equipment
Loglst Dlsl Equipment e
IT Equipment"
NOTE: Pursuant to IC 6-1.1-12.1-5,1 (d) (2) the
COST of lhe property is confidential.
Cost
ssesse
Value
Cost
Assesse
Value
Cost
Assesse
Value
Current values
Plus esUmated values of proposed project
Less values of any property being replaced
Net esUmate values upon completion of project
294,000
111,600
294,000
117,600
,~.~.~r--=>. ~....".~.__-'" __"!~ ~~ ~,
35ECTtON 5 _ _ ~W~ST~,CQ\I!ygB~!I'A~.Q.9J!:IEJ!..!!.ll.~EFJTS".e~OI'~IIS.ED BY1LTH_EJT~~AYER~ = ..,
Estimated solid waste converted (pounds)
Other benefits:
Estlmated.hazardous waste converted (pounds)
?t~I;~.Tl9~~~ _ _ _ ~. __ TAXPAYEifCERTmtfA~ ~ ~
that the re resentations in this statement are true.
Title Dale. signed (month, day, year)
P(U!;fOC
Form SB-1fPP, page 1 . CopylightC 2{)07 OIS, Inc.
CllentILoc
-. ': !iQRlU~~(O~HE'bESiGNAirNGIBODY'
- ~ - - ..
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general slandan:ls
adopted in the resolution previously approved by this body: Said resoluLion. passed under Ie 6-1.1-12.1-2.5, provides .fo'r the following limitations as
authorized under Ie 6-1.1-12.1-2.
A. The designated area has been limited 10 a period of lime not to exceed
is
calendar years' (see below).The dale this designaUon 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
DYes
o Ves
DYes
o No
o No
o No
o No
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 $
with an assessed value of $
cost
E. The amount of deduction applicable to new logistical distribution equipment is limited 10 $
$
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 andlqr new logistical distribution equipment andlor
new information technology equipment installed and first Claimed eligible for deduction after July 1,2000 is allowed for:
01 year
o 2 years
o 3 years
o 4 years
o 5 years u
o 6 years
o 7 years
o 8 years
o 9 years
o 10years"
ForEAA's established prior to July 1, 2000 2.!:!.bl a
SOT 10 year schedule maybe deduCted.
Also we hays reviewed the inf9rmation contained in lhe statement of benefits and find lhat the estimates and expectations are reasonable and have
determined that the totality of benefits' t:IfficienH ify the deduction described above.
Telphone number
5,I-d,4ILj
Date signey (month, day, year)
/OI/S-;S7
Designated body
Co l'YI rn a'V'\
~l'\
. If the designating body limits the lima period u 'n9 which" an area Is an economic revitalization area, it does nollimit the length of time a taxpayer is
entiUed to raceiye a deducUon to a number of years designated under IC 6-1.1.12.1-4,5
Form SB-lfPP, page 2. Copyright Cl2007 DIS, Inc.
OienVLoc
08/27/2007 12:13
317~681-7030
ERNST AND YOUNG LLP
PAGE 02/02
~ir+
......
Cny OF CARMEL
.. . JAMES BRAlNARD, MAYOR
July 3, 2007
Mr. Joseph P. Huffine, CEO
MBaguzi, LLC
11711 N. Meridian St., Ste 580
Cannel, IN 46032
Dear Mr. Huffine:
The City of Cannel is pleased to learn of Maaguzi's plan to expand their local operations. It is my'
understanding that 42.new jobs will be created .in Cannel over the next. tmee years and that these
positions will carry an average'salary of more than $83,000. In support of the expanded operations,
the company also intends to make a capital investment of $300,000. It is also my understanding that
Maaguzi is seeking incentive support from Carmel and the State of Indiana. A$ a designer of software
for life science industries, Maaguzi exemplifies the type of knowledge businesses that Cannel is
seeking to retain and attract.
The City of Carmel will support Maaguzi's project and their desire to obtain. a three-year EDGE credit
from IEDC by offering three-year tax abatement. We estimate this incentive represents a value of
approximately $6, I 00 per year to Maaguzi. Should Maaguzi decide to move forward with this
expansion, this offer will require formal action and approval by the Carmel City Council.
The City of Carmel appreciates this opportunity to support Maaguzi's growth plans. I am confident
that Maaguzi will find a quality workforce and a desirable location in Cannel and Hamilton County. I
look forimd to hearing of your siting decision.
Please contact me if you or your consultant has any questions..
":" !?J)
ames Brainard
Mayor
cc: Todd Pederson, lEDC /
Diana Bilger, Ernst & Young
Jeff Burt, Hamilton County Alliance
Members oflhe Cannel City Council
ONS CIVIC SQUAllS, CARMU. IN 16032 01'1'''00 317.)71.2401, fg 317.844.349H
EMAll. Jbr~inardQ7)carmel.in~gnv