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HomeMy WebLinkAboutCC-07-07-08-01 CITON Tax AbatementSPONSOR' COUNCILOR SNYDER. RESOLUTION CC-07-07-08-01 CONFIRMATORY' RESOLUTION'(,"RESOLUTION") OF THE COMMON COUNCIL OF THE CITY OF CARMEL•, INDIANA [+OR DESIGNATION OF THE ATTACHED PROPERTY AS AN ECONOMIC REVITALIZATION, AREA AND APPROVAL OF A TEN( 1 10) YEAR PERSONAL PROPERTY ABATE ivIENT"TOR CITON'AGENCY„INC. WHEREAS, under I .C. 6-1.1-12.4-2;5,jhe Common Council of the City of Carmel lndiana (the. "Council"), may designate an.area as an Economic Revitalization Area.("ERA',);and determin the duration, of the abatement perlod(s)?fos such property; and WHEREAS,,I.C. 6-1.1-12.1-4Sprovides,for partial abatement of'personal,propeft taus; and WHEREASy,'ah- SB- I has been filed wliiclt'.describes:tile,amouht'ofcapital investment and job impact of,CITON Agency, Inc's investment ("the project" ) •and WHEREAS, new nfotmation Technology Equipment will be installed and: CITON Agency'. Inc's; operations expanded;pro?videdthat CITON,Agency; Inc: is?able to obtain personal property tax deductions as deseribed;'and WHEREAS,.CITON Agency. htc?seeks;.the Couneil'to authorize per oiral property tax doductionsin connection willi.the project, -and WHEREAS, the Council has reviewed sUh information together with CITON Agency, Inc's Statement of Benefits (Form:'SB-1) and now desires to.take actions?hereinafferset forth NOW, THEREFORE, based on, a review of the information provided -and Form -SB-1 filed by C1TON Agency, Inc, the Council hereby makes the following+findiitgs:. FINDING 1. The'site,iss.suitable'fordesignationas.an F,RA dno4o;Wie fdllo?ving economic conditions (a), The area has become undesirable because of a'lack'of development and other factors that, have'impaired valites or prevent a normal development of'property or use of property. (6) Expansion of CITON Agency,: Inc 's, operations -at this .location will result in an addihon,tothearea's overall assessed value?withinamaccelerated time period. (c) The ptgject representssasupeiiartusefor the site. (d) The project is consistent with similar Land ases.on,adjacent properties. FINDING 1 The estimate of,the, cost and assessed value of the proposed prcjectdis: reasonable for projects of a similar naftire, FINDING 3. The estimate of approziiriately 3 "employees to be'retained through the project completion date listed in the'SB-I of December,31', 2017; at an annual ave6e-waoe of $258,000 can be reasonably expected to-result from?tho project. SPONSOR: COUNCILOR SNYDER FINDING 4. The estimate of 102 positions to be created through the project completion (late listed in the SB-1 of December 31, 2017, at an annual average wage of $60,000 can reasonably be expected to result from the project. FINDING 5. Other benefits can be reasonably expected to result from the project FINDING 6. The totality of benefits is sufficient to justify personal property tax deductions herein described. FINDING 7. The proposed investment in the Site by CITON Agency, Inc. meets the parameters set forth in Council Resolution CC-06-16-08-01. NOW, THEREFORE, BE IT RESOLVED THAT, a legal description of the site has been attached hereto as Exhibit A. BE IT FURTHER RESOLVED THAI', the Site was preliminarily declared an ERA for purposes of granting tax abatement for new information technology equipment. BE IT FURTHER RESOLVED THAT, the number of years for which CITON Agency, Inc. is entitled to a deduction for personal property taxes shall be ten (10) years. BE IT FURTHER RESOLVED THAT, the Council shall have the right to.reduce the length and/or end the personal property tax abatement granted for the Site should CITON Agency, Inc., or a subsequent owner of the property or CITON Agency, Inc: not fulfill commitments made regarding the amount of capital investment, job creation/retention and salary levels. BE IT FURTHER RESOLVED THAT, in the event that CITON Agency, Inc. 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 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, 2018; however, relative to New Information Technology Equipment installed prior to the termination of the ERA designation, this termination does not limit the period of time that CITON Agency, Inc. 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. 6-1.1-12.1-4. 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. SPONSOR: COUNCILOR;SNYDFR PASSED by the Common Coutic11 of tU City of Cdirnel, Indiana; this 7* day of 2008, bya vote of -7 ayes and d nays. ATTEST;. Diana L. Cordray; [AMC, Presented by me to the 2008 at %,301 I' .M. zo, b:S P. the City: of'Carmel, Indiana phi`s- day of u fl L ?&? ?'q Diana L. Cordray; IAMC, Clerk=Treasu r Approved by me, Mayor of the City of Car€nel, Indiana this (o:SS P.m. f?pC3 U?' l1iC r? ATTEST: Diana L. Cordray, Iii Contact Information: day of I 'l ` 2008 at i Brainard; Mayor Lisa Leventhal on behalf of CITON' gency, Inc: 317-580=2026 RESOLUTION CC-06=16-08-69. Exhibit,A_- Legal Description Real estate owned by: BRL.OF Keystone`REO LLC Abbreviated legal descripfidn: LAKFWO.OD.PROF'OFFICEPARK.A,12/31/36FRNORTIILAKE It /20/92 FR NELSON ETAL9246022 I'0/21/96 FR 13ANK.ONE,9644351 8/19/99 FR SHERIDAN REALTY 9949154 " nSTATEMENT OF BENEFITS 2 PERSONAL PROPERTY Stale Form 51754 (R 11-06) Pfescnbed by the Department of,Local Government Finance INSTRUCTIONS 11. This statement mast be submitted to the baby deslghaling'tne,Econa rnformation born fhe-opFrrcant in making its. decision about.whelher to are to the deslonatina bodv 98FORE:a oerson rnstalrs the new.maro6chmn FORM SB-1 1 PP PRIVACY.NOTICE The msi and any slreciFle individual's salary ihformallOn i5 c0.nfidenlul{ are balance of the fifint) id public record pet lC 6-1a-tzs-s.1 (c(end [d(. Area pnorto ine•public distribution !y 1. 1987, 2. Approval of the desrgnafing body (City, Goun'cil, To,, nib 8 ard,l County Caui?cil;;elc.) must be otilainedprior to inslaNaliap of the now manufacturing equipment andlor research and developmunl equipment:and/or. logislical distribution equipment'andlor information Technology equrpmentt_BEFORE a deductrort may be approved - - - ' 3. To obtain a deduction, a person must,frle a codified deduction schedulefw with the person's personat property return on.a.r eti(ied deduction schedule.(Forrn 103-ERAJ wdh'the)townshrp as3es3or of the lriwnshrtiwbere ilia properly is+situaied. The 103-ERA must be filedpeiw6rm March Land May 15 at the assessmennyear in winch'neiv m'nufacturing equipment and/or'-research-.and development equipment and/nr,logistical dmiribufion'equipmem and/or inforAtition.technology equipment.is installed 'end fuily functional, unfess a Kling extensioa has been obtained. A person vv! o,obtaros a Ming extension must File lhe,form between March 1 anQthe.extended due date of lhat.yeaC 4. Property owners whose,5talement of Benefits was approJed_511er June. 30; 1991; must submit, Form-CF 7 / lu annuahy'to show compliance with the Statement of 8enefifs. (rQ6-'1. 7-12:7=5.6) 5. The schedules estabhr hed under tC' 6-1.144 I-4;5(d) and (e), apply to equipmenCinslafled after March 1„2001 For erjhipment instarled: prior to March 2, 2001, the schedules and Sinh'des rn effect at the dine' shalltdnttn'ue to apply. (IC 6-}. ]-12:1-4.5ffJ.and (g)J SECTIOR711 6-A 6-N Nan1C of taxpayer CITON Agency, Inc-! CiTON Greup,.Inc. Address of taxpayer fnum6ecand Vreel,`Gly,'slafci and ZIP cede( 8900 Keystone Cros_sing,-Suite 530 Indianapolis,. IN 46240 Name of contact persan Telephone number Joe Clarke, CFO { (f07?,818.7603 Name of designaling, body Resolufio n'nuntbcr (s) Carme! City Council CC-06-16-08-DI Location of property. Covnry OLGF coxing disaim number' 3077.Easb 931h Street, Suite 180 Indianapolis, -.IN 46280 Hamilton 28016 Oescripticio or manufacturing equipmenPandfor researctrand development equipment ESTIMATED andlor logistical dislributionequipmeni andlorinformalivn technotogyiequipment DATE COMPLETION DATE - "" START . fuse additional Sheets. ifnecessary) IT and other equipment- a,cpecled'investment s-'$&00,500 by the erioiof?2017 Manufaclunng Equipment R.&,D. Equipment Logist Dist.EquipmeM IT Equipment' 2008 12!31/2017 Current number Salaries Number retained Salaries. Namtiei.a_ddilional Salaries= 3 $258,000 '3 19258,000 702 $60,000 MANUFACTURING R &D EQUIPMENT LOGIST DIST IT EQUIPMENT NOTE:'.Pursuani to IC 1(0)(2) the EQUIPMENTEQUIPMENT COST of the property is confidential.. COST ASSESSED" :COST ASSESsro COST 'ASSESSED 'COST ASSESSED - VALUE - VALUE - .VALUE VALUE Current values Plus estimated values of proposed project. $800,500 ?m,1so Less values of any. propady being replaced Net estimated values: upon completion o_f.projecl e • - rr• •• r e Estimated solid-waste converted (pounds) Estimated hazardous waste converted.(pounds).- Other benehls'. l horetiy'certify thal',lhe,repfe5entalions. in Ihis'statemahl are liuL Signalir dl 8utb01 zeddrepres en live' LIle Date sighed (m0nlh. dey"yCarJ GFO . 5/30/200$ • _ We have reviewed our prior actions relating to line design_alian,ofd_dhis economiarevda4xalidn.area and fmd't hat the 2pplicii meets the general standards adopted in the resolution reviousl approved dy'Ihis body.' Sai resolution, passed under IC fi 1 1-12.1 d2 5; provides.farthefoliowing limitations as' authorized under .IC, 6-1.T-12.t-2. A . The designated area`has'been limited to a period of Lime not to exceed. Calendar years; (see.trelowJ. The dale this designation' expires B.. The type of deduction that is allowed in the designaled-area, is linited?to:. 1. Installation"of new manufacturing,equipmenl; ? Ke S ? N o 2: Inslallation'of new research end`devefoprrientequipment; 0 Yes ? N o 3. Inslallalion.ofnew logistical distrihutioo equipment ? Y'ns ? wo 4. Installation of new information technology equipment ? Yes ? N o C. The-amount of deduction applicabiti new manufacturing equipment is limited to $, - cost with ah'assessed value o1 $ D. The amount at deduction applicable,io new'research and',de Jelapmerrt equip ment is hmited:'.ta cost wilh,an assessec lua, of $ E . The amount of deduction applicable to-new Iegistical: distribution equipment is limited lw$ cost with an assessed value of F. The amount of deduction applicableido new imformationtechmology:equipment is-limited tc'$ cost with an assessed value of G. Other limitalione or conditions The deduction for new manufacturing equipment andlornew research and development equipment molar newlc islicaPdistribution. equipment anchor new information tec hnology equipment installed, and ftrstelaimed eligible. for deductionon of aBer.JUly 1,2.11Q0• is allowed for.' ?1year ?T6 years "ror ERA's.established. triorwildly :1,.2000. onlya ? 2 years ?'7 years 5or 10 year. schedule may 3years ?`6 years ? 4 years ?ig years ? 5 years " E] 10 years" Also we have reviewed;Ihe information contained in the statemem of benefts and firiTt6al.theleshrnates and expectations are,reasona616 and have' determined that the tdality.of benefits issullicienttd iuslifv,Ihe:dedoctinn diascribed,albove, Approved: '(slgnrelar fitlp6'c of er rrzetl mbar) TeleplmnY nurniier - Date Si 9ned moolh. day, yeaiJ {311 )5y{-a'!r!1? 7?°7f0 Fltlpsled by: Vl/" Oe ? naletlbody //7• / ®Mrn orr l iJI?L YI_r ' If the designating body llimits the dime period during whl a narea is an.ecdndmic revitalizali dead, it does not limit the lengtli Of tune ataxpayer is entitled to receive a deduction to a:nomber of years desl a ?d under IC,6-11.9-12 14.5 CITON Group, Inc.1'CITON Agency,,lnc. Attachment to,Stalement of Benefits 6/19108 Project Description: CITON Agency,.lnc l CITON Group, Inc., (CIT.ON) isra-developer and marketer of niche insurance products and services primarily designed for the,commercial,property and casualty' sector of the industry. Through CUON's market-Fesearch,..and-feedback from key partners and-experts in the insurance industry, the company, expects,a very strong demand,for its^initial offerings- The company expeetsko:go live with, its'initialofferings during the summer, 2008. Based on the,staffing needs,that will be required Co serve this demand and support future grdwth, the company expects to create 102 new'job;positions by the,end,of All. Givenrthe markets that willlrequirerts key products and services, the company has considered competing growth opportunities, in Florida and other parts ,of"the Southeastern seaboard. Please note - CITON uses',Professionaf Staff Management (PSM), as its Professional Employer Organization (PEO). As a.resull,'the jobs,that.wilj he.created as part of this projectmay technically be'',emptoyees,under the. federal ID number of the company's PEO, PSM. Estimated project investment by year: NMI 2008 $ 33',500 2009 $ 46,000 ,2010 $ 94,000 2011 $ 67,000 2012 $ 72,000 2013 $'147,000 2014 $ 72;000 2015 $72,000 2016 $,141,000 •2019 $56,000 TOTAL 3800;590 Project Location: The location of the.proper tyfor which ERA designation is•being sought.is 3077. East 98"'Street, Suite 180 Keystone.Offiee Park indianapalis, N 46280. Real estate owned by: BREOF Keystone'REO LLC • Abbreviated legal description. LAKE WOOD PROF 'OFFILIsPARK A 1'2/31'/86'FRNORTILAKE 11120/92 FR NELSON CTAI9246022 10/21%96 FR BANK ONF'9"644351 8/19/99 r R SHERMAN REALTY 9949:154 Assessed value of real estate .$3;810,00 • Real.Estate Parcel 16=14-07-04'-D8-001.001 CITY OF GL ,- L JAMFS BRAINARD, MAYOR April 25, 2008 Mr..Steve Alonso CITObT Group, Inc.. 8900'Keystone Crossing Suite 530 Indianapolis,,IN 46240 Dear Steve: I am pleased to.leam that the City of CarmeFis,under consideration for CITON'Group, Inc.;sTuture plans. Based on ari investment of $800,000 In p'ersanal.pfopcrty'over tk e next ten years, I,support,a'tcn year tax personal ,pioperty#ax abatementwiLh.an estimated value of $25,100. Please be aware that before CITON qualifies for this support, it is,also necessary; for the company to receive the+approval;of the Carmel City Council. Thank you for your consideration of our community'in your plans. I.look=forward to working with CITON during its'deci'sion-making process: Vey truly F?j ia? ' es Brainard yor r cc: Tim Cools KSM, 800,F. 96"' Street„Suite 506, Indianapolis,,IN 46240 Carmel City-Council ' ONE CIVIC`-SQUARE, CARM@L, IN_46032; OFF[ce_377571-'2407,_rAx"317`844.3498 EMAn. JbraEnard®carmel: in.gav?