Loading...
HomeMy WebLinkAboutCC-08-18-08-02 Pharmakon Compounding Pharmacy/ERASponsors: Councilor Snyder RESOLUTION CC- 08-18-08-02 A RESOLUTION OF THE COMMOM COUNCIL OF THE CITY OF CARMEL, INDIANA, APPROVING A TEN-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR PHARMAKON LONG TERM CARE PHARMACY, INC AND PHARMAKON COINIPOUNDING PHARMACY LOCATED AT 801 CONGRESSIONAL BLVD WHEREAS, I.C. 6-1.1-12.1 authorizes partial abatement of personal property taxes attributable to the installation of new qualifying information technology equipment, telecommunications equipment, laboratory equipment, research & development equipment, computer hardware and certain forms of embedded computer software; and WHEREAS, I.C. 6-1.1-12.1 empowers the Common Council of the City of Carmel, Indiana (the "Council") to grant approval for personal property tax abatement for qualifying investments in information technology equipment, telecommunications equipment, laboratory equipment, research & development equipment, computer hardware.and certain forms of embedded computer software made bycompanies; and WHEREAS, information (as defined in I.C. 6-1.1-12.1-1) has been provided to and heretofore been filed with the Council by Pharmakon Compounding Pharmacy and Pharmakon Long Term Care Pharmacy, lnc ("the Company"), and such information describes the qualifying investment in information technology, telecommunications, and research & development equipment in personal property to be.installed at 801 Congressional Boulevard, Carmel, Indiana; WHEREAS, the site located at 801 Congressional Boulevard (the "Site") has been legally described and designated as an Economic Revitalization Area (ERA) for purposes of providing personal property tax abatement to the Company (as defined in I.C. 6-1.1-12.1); and WHEREAS, the Company will execute a long-term lease with REi Investments ("Owner"), if the Company is able to obtain personal property tax deductions as authorized by I.C. 6-1.1-12.1: and WHEREAS, the Company seeks to have the Council authorize personal property tax deductions in connection with qualifying information technology, telecommunications, and research & development equipment to be installed in the leased building on the Site; and WHEREAS, the Council has reviewed such information together with the Company's Statement of Benefits (Form SB-1) and now desires to take actions hereinafter set forth. NOW, THEREFORE, based upon a review of the information provided' and Statement of Benefits (Form SB-1) heretofore filed by the Company, the Council hereby makes the following findings: FINDING 1. The Site is or has become undesirable for normal development due to the following economic conditions: (a) The Site has experienced a lack of development and growth over recent years; (b) Vacancy rates for office space in the area and an abundance of sublease opportunities evidence an oversupply of office space in the in the geographic area.where the Site is located (the "Corridor"). (c) The Company's proposed development of the site as an expansion of its corporate headquarters is consistent with the site's existing zoning and represents a superior use for the site. (d) The Site is zoned for and generally suitable for use as an office. development; however, there is a lack of demand for office building space in the Corridor due to the economic conditions currently present. (e) The Company's plans to install new personal property and building owner's plan to make real estate improvements, will result in an addition to the Corridor's overall assessed value within an accelerated time period. FINDING 2. The proposed development 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 redevelopment of the Site is reasonable for projects of a similar nature. FINDING 4. The estimate of the number of individuals who will be employed (i.e., approximately 90 FTEs over the initial ten-year period) canoe reasonably expected to result from the Company's proposed development of the Site. FINDING 5. The estimate of the annual salaries (i.e., average of greater than $50,000 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, and research & development equipment, is reasonable for a project of this type. FINDING 7. With respect to the new information technology, telecommunications and research & development equipment, the estimate of the number of individuals who will be employed (i.e., approximately 90 FTEs over the initia6ten-year period) can be reasonably expected to result from the development of the Site and installation of the new personal property. FINDING 8. The estimate.ofithe annual' salaries (i.e., average of grdater than $50,000 per annum)of those.mdividuals who will be employed can-be reasonably expected to.result,from the development ofthe Site,,;the installation of the new personal property. FINDING 9. The Company will be active corporate citizens involved:in-arid committed to`the city of Cannel. FINDING -10. 'The Company's.expanded corporate headquaiters_in=CarmelI is consistent with the 'ggals and vision established by the city of Carmel and Hamilton County Alliance. FINDING 'I L Other: benefits that can brireasonably' expected to result from the Company''-,s proposed redevelopment of the ;sitemnd installation,of the new personal property: FINDING 12. 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 previeusly:declared ERA designation has been attached hereto as Exhibit A. BE IT FURTHER RESOLVED THAT;ahe Site was previously deelared as an ERA.for a period of ten ('l0) years from`ncc?effactive?date,o_f the previously, approved Resolution. BE IT FURTHER RESOLVED THA'I', the'number of yearsfor which ihe,Company is entitled to a deduction;;for qualifying.information technology,,teleconinrunications;,and.research & developmett equipment, pursuant,to I;C. 6-L.1-12.1-4 5 shall be ten (10). BE IT FURTHERRESOLVED THAT, if.the Site'i's located'in an allocation area (as. defined in I.C..3Cr7-14=39 or I.C. '36-7-1.5.1 26), an application for-the'property tax deductions approved herein sliall also.be'subject?to the;approval of the=commission that desigiiated the allocation area as--required;under'I:C 6-1.1-12'1 -T BE 11 FURTHER RESOLVED,THAT; this Resolution. shall lie,fil"ed with the Mamiltoii County Assessor-as required by 1.6% 6-1:1-12.1-2.5(b). BE IT FINALLY RESOLVED THAT notice oftheradoption 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. P ASSED by the Common Council of the ;City of Carmel, Indiana this f $ day of OL)IL 2008, by a vote of ayes and fa nays. O ATTEST: Diana L. Cordray, TAMC, Clerk- r asurer n Presented by me to the Mayor ofthe city of Carme3; Indiana'this day of 2008; at-(`Q) V .m. Dianal. Coi•dray, TAMC Approved'by me, Mayor of the City of Carrnel,,Indiana 'this 01111-day of 2008, at W p.m. ames. Brainard', Mayor Prepared by: Katie Culp,::Senior Vice President's Location Advisory & Incentives Practice Colliers Turley Martin.;Tucker. One American Square; Suite d1300 Indianapolis;.hidiana 46282 3.17763,9=0485 phone kculp a ctmt;coin email EXHIBIT A A.LAND'BOUNDARY DESCRiPTI01V'OF THE BUIGDING.AND LAND LOCATED AT 86f CONGRESSIONAL BLVD, HAMILTON COU?4'V, INDIANA AUGUST 18, 2008 PAC, E, 1,OiF I 801 Cong"ressional`Bqulevard Carmel, IN 46032 Parcel No: 16-09-35-00-02-005:000 Lot PT1, Block P11, Carmel Science & Technology, containing 1:43 acres, Leal Description. Part of Block I i in tfieConditional Secondary Plat of,Cannel Science and Technology Park„a subdivision: in Hamilton County, Indiana; [he plat of which is recorded in PIat-Book 13, pages„ 65-71, amended by Certificate of Correction recorded as Instrument No! 8701.640 in the Office of the Recorder'6fliamilton County; Indiana: Except the following; Beginning at the'S6uthwest corner of the Northwest Quarter of Section 36, Township 18 North, Range 3 East in Hamilton Comity„ Indiana (518" rebar with _cap marked ?'SchrieiderEngr, Corp.''); thence North 88,degrees 59 mmutes'30 seconds East (assunfed hearing) along the South line ofsaid Northwest:Quarter Seclion.andsalong;theSouth line ofsaid 'Block i l a distance of 401.50 feetsto a'578"7ebar with cap marked."5ciiiieider,Engr. Corp.'; thecice North 01 degrees 00 minutes`30 seconds,Wesf a distance of 265.00 feet to a5/8" rebar with cap,marked "Schneider En-r; Corp." ;,,th en ceNorth 88; degrees 59 minutcs`30 seconds.East, parallel with the said South line, a'distance of 20.00 feetto =a 5/8" rebar with cap,inarked ` Schneider Engr. Corp."; thence North 01 degrees 00minutes 30 seconds West a distance of'l'90,00 feet to a'5/8" rebar with cap marked "Schneider Eiigr. Corp.';'tlience'North 30 degrees 46 minutes 06 seconds West a distance of 118:64 feet to a 518"rebar with.cap marked "Schneider Engr. Corp." on'the Northerly dine of said Block.l l which said pointlies,on a' curve having a radius of 7 f0'.00 feet; the radius point of which bears North 34 degrees 31'. minutes 39 seconds West (tlie;next,fve courses are along,the Northerly, Westerly and Southerly lines ofsaid-Block 1'1); (1) thence Westerly along Hie arc of said?curve a distance of 413.25 feet to a 5/8" rebar:with cap marked Schneider:l:ngr. Coe p:`' gre utes,44,'seconds;East from said which bears South 01 dees 10 " min " radius?poiht;,(2) thence South-88 degrees,49 minutes 16 seconds West a distance of 162.99 feet to a-518" rebar with cap.inarked"Schneider Engr, Corp." and a curve,having.a radius of 20.00 feel, the radius point of which bears South 01 degrees 10 minutes 44 seconds East; (3) thence Westerly and'_S6utherly=along the are of said curve.a distance of 31.42 feet to.a'S/8" rebarwith cap marked "Schneider Engr Corp," which bears South 88 degrees 49 minutes 16 seconds West from said radius point; (4) thence South 01 degrees 10 minutes 44, seconds East a distance of 420.00 feet to a 578"`rebar with cap marked "`Schneider Engr. Corp." on the•,South line of,the Northeast Quarter of Section 35, Township 18 North; Range3 East; (5) thence North 88 degrees 49 ininutesA6 seconds E1st,along the Smith Ime,thereof; and the South line of said Block 11 a. distance 4 148.13. feet twthe Point of Beginning, containing 6:07 acres; more or lass. EXHIBIT B NOTICE OF kDOPTION'REGARDING.THE APPROVAL OF A. TEN-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR PH:ARMAKON'LONG TERM CARE. PIIARMACY,'INC;AND PIT RMAKON COMPOUNDING .PHARMACY CORPORATE HEADQUARTERS EXPANSION' PROJECT LOCATED AT 801 CONGRESSIONAL BLVD, CARMEL, INDIANA August.18, 2008 PAGE 1 OF I Notice is hereby.,given that the Common Council of the City of Cannel, Indiana did on the 4th of Aligns, 2008 adopt a.Resoldtion approving a ten-year;personal property, tax abatement for_ Pharmakon Compounding Pharmacy°and Pharmakon Long Term Care°Pharmacy,, Inc for its investrnernf,in.its,corporateheadquarters, expansion project to be-located 801 Congressional Blvd, Carmel; Indiana. This Resolution, which affects the'following described property locatted in the City of Cannel, Indiana: 80.1 Congressional Blvd; Clay Township, Hamilton County, was adopted following the,6ling of information by'Pharmakon CompoundingPharmacy-and Pharmakon Long Term Care Pharmacy, Inc, and the previous approval of the designation of property locatedAt 80.1 Congressional,Blvd as an Economic. Revitalization. Area+£or the purpose of securina,an abatement of property taxespurstuant to Indiana Code Section 6-1.1-12.1 relative to the installatiou:of new information'technology, telecommunications, and research & development equipment. Such Resolution previously approving such property as an Economic Revitalization Area and such"Resolution approving, a ten-year per so6gPpropertytax abatement for'Pharmakon Compounding. Pharmacy and,Phannakon Long Term Care. Pharmacy, Incwere provided by the Common Council ofthe City of Carmel,' Indiana on the _ day of August; 2008. Furthermore, the Resolution states that on the day of Au usf; 2008 at6 p.m_ in the Council'Chamber Room located at One.Civic Square, Carmel, Indiana 46032, the Common Council' met to hear public comment froni,persogs interested in thesepiroceedings:and make:a determination about approving a ten-year personal property tax abatement for Pharmakon Compounding-Pharmacy and Pharmakan Long Term Care.Phamtacy, Inc for;its investment in ,new information, technology; telecommunications:and reseaich &:development eguipmetit. A.description of nformatiomrelated to Pharmakon Compounding Pharmacy's and'.Pharmakon Long Term Care Pharmacy, Inc's project:arid a copy of such Resolrition are available for inspeetionin-the; Hamilton County-Assessor'sOfpice,.Suite-214, 33 Nohh.9`" Street,' Noblesville, Indiana 46060: STATEMENT OF BENEFITS PERSONAL PROPERTY .`. State Form 51764 (R t 1-06) Prescribed by die Department of Local Government Finance INSTRUCTIONS: FORM SB-1 / PP PRIVACY NOTICE The cost and any specific Ind ldual's salary Information is coniklenllal; the balance of the filing is public record per IC 6-1.1-12.1-5.1 c and (d . 1. This statement must be submitted 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. Otherwise this statemem must be submitted to the designating body BEFORE a person installs the new manufacturing equipment and/or research and development equipment, and/or logistical distribution equipment and/or 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 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 installation of the new manufacturing equipment and/or research aril development equipment and/or logistical distribution equipment and/orinformation 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-CRA must be riled. 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, unless 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 rompiance with the Statement of Benefits. (1061..1-12.1-5:6) 5. The schedules established under IC 6-1.1-12.1-4.5(d) and (e) apply to equipmentinstelled 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(I) and (g)) • ,XP,AYgR,INFORMATIONi Name of taxpayer Pharmakon Compounding Pharmacy Address of taxpayer (number and street, city; state, and ZIP code) 9465 Delegates Row, Indianapolis, 46240 Name of contact person Telephone number Paul Elmer, RPh (317)410.3178 Name of designating body Resolution number (s) Carmel City Council B-Oy-OS-OL 08- 18-OQ"O' Location of property County DLGF taxied district number 801 Congressional Boulevard Hamilton 29-018 Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or to istical distribution equipment and/or information technology equipment START DATE COMPLETION DATE (use additional sheets if necessary) Manufacturing Equipment 09/01/2008 09/01/2009 Servitor Modular Cleanroom R & D Equipment Logist Dist Equipment IT Equipment Guam number Salaries Number retained Salaries Number additional Salaries 0 10.00 0 0.00 90 4,500,000.00 01 • ••. NOTE: Pursuant to IC 6-1.1-12-1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT COST ASSESSED COST ASSESSED COST ASSESSED COST of the property is confidential. COST VALUE VALUE VALUE VALUE VALUE Current values Plus estimated values of proposed project 76,500.00 Less values of any property being replaced Net estimated values upon completion of project Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: I hereby certify that the representations in this statement are true. Signature of ive Title Date signed (moth. day year) 1 P -409 11. We have reviewed our. prior actions relating to fhe.deslgnation of this economic revitalibibn area and find that the applicant meets the general'standwds adopted m the resolution previokrsly approved 6y this body -Said, resolution,. passed under IC 6-1 .1-12:1.2.5 provides Tor the: following I!mitatonsas authorized under IC6-111=12:1-2. A .The designated area has been limited.to a period..of time not to exceed. calendaryears' (see ba7ow). The date this designation expires B , The type of deduction that is allowed in the designated area is limited to: 1. Installatlonof new manufacturing 'equipment;- ?Yes ?No 2. lKstellation of.4w research and development equipment; ?Yes ?No 3, Installationofnew logistical distribution equipment: ?Yes ?N.o 4_lnstalletlon of how informAon technology equipment; ? Ve s ?N o C. The amount of deduction!applica hie to new manufacturing equipment; is limited`to.$' cost with an assessed value`of Q. The arrounbof deduction applicable to new research and development-equipmentisdimlted to-$ __----------- _ cast witK an assessed value'. of'$ E . The amount of deduction applicable to,new iogisucal dlstr+pution equipmentis limited to $, cost'with an assessed,value: of F. The amountot:deductidn applicable to new informailon technology equipment, is limited to $, cost with an.assessed value. of $ a Other limitations or oonditians (spec fy) H. The deduction for new manufacturing equipment and/or newreaearch and, development equipmenrand!or,naw logistical distribution equipment and/or new information technology equiprien! Installed and first claimed ellglbte;for. deduction on or after July 1, 2000,, islallpwed for. ?1 year ?6B years " For ERAS established prior to July 1, 2000; only a' ?2years ?7 years 5.or 10;year schedule may tie deducted.. ?3,yeam ?8.years ?4yeam ?9 years ? 5 years.. ? 10 years" Also we have reviewed the inionnalion contained in the statement o[ benefiits and find that the esumate_s'Find expectations are reas_onahle and, have determined that the totality l o?enefm is sufficient to LjustMthe ded5choNdesMbad above.,' " - - Y381 designating hody'limits .the time. nenoC;dynng Whim an anea,is an ecoromic revitalization area, it does not limit the length-of time.a taxpayer is to receive a deduction to a number of years des! nated:under IC 6-i-:1-12.174 STATEMENT OF BENEFITS i` PERSON41L PROPERTY State Form 51764(R 11-06) Prescribed by the Department of Local Govemment Finance INSTRUCTIONS. 1. This statement must be and areas designated atfer JUly4; 1987, requtrea'STA7BMrt 2. Approval ofthe designating body (City Council, Town Board aniWormsearch'and deyelopmerefequipment. and/or logistical be approved 3.. To obtain a deductlon, a peison musCfrle a cerdHed deduclior 103-ERA)'with-t6e township sssessor oC the [dwnsdip:wherr FORM 58-1 ! PP PRIVACY NOTICE The costaM any sped4c Individual's salary Information is confidential; the balance of the. filingg is puhlic record , IC 6-1 T-12.1 5 .1 c end (d). 1,, 1987, ctfoh schedule (Fond t and. Met, 15 of the assossmenf year in which:.new manufacturing,equipment.and/oc research and development egwpment:and/ordogistical dtstnbution equipment anavor intonnation technology gquipm'eri0s installetl and fully hriretlonat, unless a, Ming. eirtunsrorf has Been obtsiner/. Aperson who obtains a'fitidg extension must rile tire foim between March, 9 antlthe extended dua7datWol that yeas A. Property owhers•wliose Statement dt8enefrts was approygd a. er June 30, 1991;. must submH Form,CF-1„% PP annuaily to.show.complianpe with-the' SYatementc(Benefits: (!C?(r-7, 1-12.7-5.5J - - - ? - 5. The schedules. established under 2001, the schedules and statutes For equipmert instafled;prior to March o -IT YX •• Name of laxpayar Pharmakon.Long Term Care-Pharmacy, Inc. Address of taxpayer /ember end sue if, city) Sla[e,. and z"' coda) 9465 Delegates Row, Iniiiana olts,46240 Nama`of fnnfad person Telephone aumbar Paul Elmer, RPh' (31g) 4 03378 flame of desgriaflag' body. ' Resolution number. (s) 161 - Carmel. City Counaj &Q-0 09-1144rb 9-02 -18 Looatonof penperty County pLGF lazing dlstrid number 801 Con ressional Boulevard :'Har iRon 29-0181 Description of manufacturing equipment andlor research and development equipment " ' ESTIM ATED andlol to istidal distribution equipment and/orinformatidn'technology equipment +? START DATE COMPLETION DATE (aye additional sheets if nECESSary) - Manufactunng,Equipmen[ 09101/2008 0910112009 Automated EXP aGka in r Cflirfe p jy g g n2 ' MedSelect dispensing system ga DEquipment Logist Dist' Equipment, IT Equipment, 09]0112008 0910112009 Current rxlmder Salaries Numberretalned sale as, Numberaddltlonal Salar ies 0 10.00 0 0.00 90 4`,5 00,000.00 • IIIIIIIIIIIIAM • • o r • •o•• a • •• NOTE: Pursuant to IG6-T:1-12:1-5:1 (d) (2) the MANUFACTURING EQUIPMENT R &,D EQUIPMENT LOGIST. DIST IT EQUIPMENT EQUIPMENT COST of thepraperty is donfidentiaL COST` ASSESSED COST, ASSESSED; COST ASSESSED COST' -ASSESSED - VALUE VALUE -'- - VALUE VALUE Current vafue5 Plus estimated values of proposed project 455,500.00 58,000.00 Loss values of. anyproperty.being replaced Net estimated values. uponcompletion of project Estimated solid waste convened,(pounds) Estimated hazardous waste converted (voundi Ollier.benefits: Y_ I herebycarlify thatthe'.representations. in thisstatement 'are -true . Sigrid uth - ad .entafivf.' Tule dale slgnetl.(mdhth, dayyearj President - boa 8 We have reviewed our prior actions. relating to the'designation of thiseconomic revftalization,area-and End that the applicant meetsthe"general standards adopted in the resoluiion-previously approved by this body.=Said. resolution; passed under IC 6 1.1 12:1-2:5,:provides:for the f_ollowing . limitations as authorized under.IC 6-1.1-12.1-2. A . The designated area has been limied.to a perlod,oftrme not to exceed' _ calendar years ' (see, below), The,oate3his designation expires B . The type of deduction that is allowed in the designated'are"a is limited to 1. Installation of now manufacturing equipment; ?Yes ?Na 2. installation of. now mseamnandd.deveiopmentequipment:: ?,yes. ?No 3. Installation of new ioglsticat distribution equipment:. Oyes ?Na 4,. Installation of newinforrnationtechri gy equipment '?Yes ?No C.. The amount of deduction.. applicable to, new manufacturing, equ'mrnem+is l r ited,tq S - cast with an'. assessed value.of 'D: The amouri deductiari-.applicable to new research and developmeint,equipment`is limited to cost with an assessed value 'of.$ E . The'amount.of deduction applicable to new logistical distributienequipment is limhed:to$ cost with an assessed value of E The amount of deduction -applicable to new information technology equipment is limited to S. cosh with amassessed value of $ G. Other limitations or. conditions ,(specilyI H. The deduction fairnew manufacturing equipment and/orti research: and development equipment andlcr new logistical distribution equipment andlor new infomnationtechnology equipment' installed. and Wst'claimed'eligible.for deduction poor utter July 1; 2000, Is allowed forr, ? l year ?6:years ^ For ERA's established"prior to. )aly %200Q: only a ?2 years ?7 years '5 or 10year,schadule may he deducted. ?3 years ?8,years ?4years ?9 years ?5years " ?10years" Also we have reviewed the information contained in,the-.statement of benefits and rind thnt the estimates and!expectations am reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above.. ' Approved(shytiihire X=1 Telepllone.?umber, Dace sl ned{month, daY, Year) 7r-ai4i-3 ?3 ?IQi Attested by: D.? gneted body If the designating body limits the time perl during whi Agents l an,economrc revitalization :area; it does not limit the length of tini taxpayer is en0tledio receive a deduction to a numeer of years oe na under IC 6-1.1-12.1-0,5 Tr,?Crty OF CARMCL JAhICS BRAliYARD,• MAYOR' July 17, 2008 Mr. Paul F_lfiier' President Magnolia Healthcare 9465 Delegates Row Indianapolis, Indiana 462=40 Dear Paul: The City of Carmel appreciates the opportunity to discuss. Nlagnoha Healthcare''s and Pllarmako6's.lleadquarters pro_jectand_participatc•in the company's potential relocation to Carmel. We are excited: to hear that Magnolia Healthcare and Phamiakon' will initially employ approximately 36 pcople-with a.payroll of $2,468,000 peryear (without,bene#its) or an average salary of $64,947. It is-also ?iy understanding,thaf thexonipany plans-to grow by 52 positions over the next:-fivc,,ycars with.an average salary of $60,000. We-,are also pleased to learn that the Company is°proiecOng to invest $930,000 in real and personal property. We understand that yourrcompanies,are currently looking for space to lease in Carmel. We also understand thai'the company is ev4luating siting optionsain other states Besides Indiana. In.supportof•the•companies' growth plans, the -City of Carmel proposes a;tell (10) year personal property•tax `abatement with.a'total value of $`163693. This proposal requires formal review and approval of the Carmel City Council. tam, confidetntthat.the City of Carmel is'an'excell'ent community for life s6ence companies likeMapnolia Healthcare and `Pharmakon. Carmel will also. assist thecompany through its local planning and permittinL process. Ong ('tsic.SQUANP:, C;AVnM I, fn 46032 L)rrici. 317.571 2,101, rns 3i7.844.3498 I MALI. jLn.1 I IlA I CICCi:c,ar jicl-. in: 'n5 If you haw:, my Carmel related questions, do not!liesita[e to contact me, Very truly yours, /J?i,Brainard Mayor CC: Jeff Burt, Ilamilion County Alliance Katie Culp, CTMT