HomeMy WebLinkAboutCC-10-20-08-01 Software Engr Professionals/Tax AbatementSponsors: Councilors Carter; Sharp; Snyder and Rider
RESOLUTION CC-10-20-08-01
A RESOLUTION ("RESOLUTION") OF THE COMMON COUNCIL
OF THE CITY.OF CARMEL, INDIANA, APPROVING.A TEN-YEAR (10)
PERSONAL PROPERTY TAX ABATEMENT FOR SOFFWARE`ENGINEERING
PROFESSIONALS; INC., LOCATED AT 11611 NORTH MERIDIAN STREET,
WHEREAS, I.C. 6-1.1-12.1::-4 authorizes partial.abatement , of personal property taxes attributable to
the installation ofnew.qualifyi tgg information techtology/teleconitnunications equipment; and computer
hardware- ahd
WHEREAS, I.C. 6-1.1-12.1-4 empowers the•Cornmon Council of the City of Carmel, Indiana (the
"Council") to grant approval for personal property' tax,abatement for qualifying investments in,riew
qualifying information.fechnology / telecorrimuriications equipment, and computer hardware; and
WHEREAS, a.information_(as defined in LC..6-1 1-12,1-1) has been'provided to and heretofore been
filed with'the.Council by Software;Engineering,Professionals; Inc. ("the Company" ), and such information
describes the qualifying, investment in technology,:telecommunications and'reseaich and development
equipment personal property to be iinstalled:at'- 11611 N. Meridian. Street, Carmel, Indiana (the."Site");'and
WHEREAS; the Site has been legally described',and designated as?an Economic Development
Revitaiization Area ("ERA") for purposes of providing personal property tax abatement to tbe.Company (as.
defined in T.C. 6-1.1-12.1); and
WHEREAS, the Company will purchase equipment-and computer' hardware provided that the'
Company is able to obtaih,personal"property tax deductions as,authorized by I,C: 6-1.1-12.1-4; and
WHEREAS, the Company seeks to have the Council authorize personal property tax deductions in
connection with the `qualifying investment related-to the installation of new, information technology /
telecommunications equipment;;andcomputer hardware. at the Company's expanded' headquarters; operations
at the Site; and
WHEREAS, the.Council'hasreviewed_such information'togethei with tlie,Company's Statement of
Benefits (Form SB-l) and now desires4o take actions hereinafter set>forth.
NOW, THEREFORE, based.upon a -review of the information provided and the Statement of
Benefits (Form SB-1) heretofore filed by tlieCompany, the Council hereby makes the, following f ridings:
FINDING-1.. The Site has been undesirable 'for- normal development;,due to the following economic
conditions:
(a) The Sitelras,experienced,_a lack of development and growthover recent'years.
(b) The Site is:zoned-for and:is generally-suitable for use as an office
development; however,"there is a?lack ofdemaud for office space-in the
geographic area 'where'the Site is located due to the economic conditions
preseni,in the area (the "Corridor".).
(c) Vacancy rates for office space in;the area and an,abundance,of sublease
opportunities evidence an;oversupply of office space,in the Corridor:
FINDING 2. The Company's development of the Site for its expanded;headquarter operations
facility forahe Conipany is consistent with the Site's,existing zoning and represents a
superior use-for the Site.
FINDING 3. The Company's plans-to install'new:personal property will result in an. addition to the
Corridor's overall. assessed value witliiman accelerated time period.-
FINDINGA The proposed expansion of the Site-bythe Company meetsthe parameters set,forth in
Council Resolution',No. CC-02-93-9102,.
FINDING-5. The estimate of the cost and assessed value,of the'Cornpany's proposed' expansion of
the Site is reasonable for projects of a,similar nature..
FINDING 6. The estimate'of the•nuinber of individuals who will be;entployed (i.e,,,approximawly
89 FTEs) can be reasonably expected to result from the Company's proposed
expansion of the Site.
FINDING 7. The estimate of the annual'salaries(i:e., average of approximately $60,000 per annum)
of those individuals who will be employed can bereasonahly'expected.to:result from
the Company's proposed expansion ofthe,Site.
FINDING 8. The estimates of the cost<anfl assessed value:ofthe,new:information 'technology!
telecommunications equipment; and computer hardware,.is reasonable fora project of
this type
FINDING 9. With respect to the,iiew information,toclinology/telecommunicationS equipment, and
computer hardware,the estimate`of ihe,number of individuals who will be employed
(i.e., approximately_89 FThs),can,be reasonably expected''to result froin'the expansion
of tlie',Site°and installation of the new personal' property:
FINDING 10. The estimate of the, annual; salaries (i.e,, average of approximately:S60,o00'per,annum)
ofthose individuals- who. will be employed can be reasonably expected to result -from
thc,expansion of the Site and the installation of the new personal property,
FINDING. U . The Company will,be'active corporate citizens' involved in.and committed to the city,
oof Carmel.
FINDING 12. The Company's headquarter operations' facility in Carrriel inconsistent With the goals
and vision established by the city of Carmel and Hamilton County-Allian=
FINDING 13. Other henefits that can be reasonably expected to result from the Company's'proposed
expansion ofthe Site and'installation -of the new personal property.
FINDING 14. The totality oftenefits'is sufficient'to justifyreal, and, personal, property- tax- dedgctions
herein described.
NOW, THEREFORE, BE IT RESOLVED THAT,.a legai.description of the.previously declared
ERA designation has-been attached hereto as Exhibit, A.
BE ITFURTHER RESOLVED THAT, the Site was previously declared asan ERA for purposes
of granting,personal property tax abatement in support "of the new qualifying information technology /
telecommunications equipment, and computer hardware.
BE IT FURTHER-RESOLVED'THAT, the'numbd of years for.which the Company is entitled to a
deduction for investments :made;in.the new qualifying information technology./ telecommunications
equipment, and computer hardware, pursuant to 1,C, 6-1.1-12.1-4,,shall,be ten (10).
BE IT FU RTHER'RESOLVED'THAT, the Carmel' City Council shall have the-right to reduce the
length of and/or end the personal property tax abatement granted for the Site,should the Company and/or a
subsequent owner of the Company not fulfill commitments•ma&to the city of Carmel regarding.the amount
of capital investment, job creatiohlretention and average:annual'salary levels.
BE IT FURTHER RESOLVED THAT, in.the event the Company is sold to 'a new owner, the new
owner of the companysha?ll appear -before the Carmel.City Council within 90 days of closing on the purchase
of the Company to present.,information'regar"ding the plans foi'the company's operations in the city of
Carmel.
BE IT FURTHER RESOLVED THAT, the deductions authorized heiein.are based I4pon the
approval of a•ten-year real.and personal property taxabatement,prior to the installation ofnew•qualifying
information technology / telecommunications equipment, and computer.hardware.
BE IT FURTHER RESOLVED THAT, ifthe,Site is located'in an allocation area (as defined in
LC. 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 Resolutionshall be fled with-the.Hamilton.County
Assessor as required by LC. 6-I.1-12. t-4.
BE IT FINALLY-RESOLVED THAT notice of the adoption of and the'substance. of this
Resolution shall "be publishedin accordance with I.C. 5-3=1 and: that such -notice 'shall be in the form attached
hereto and incorporated herein as Exhibit B.
PASSED by the Common Council of the Cityof Carmel, Indiana -thi's QO4%ay of
O C--kek AA ,2008, by a vote of t and. 0 nays.
UNCIL `OF'THE
Rider
Ehc Seidensticker
uci': der
ATTEST:
L.
r? Presented by me to
Mayor of the City` of Carrtiel,, .Indiana,. the a f5+-,day of
at 10:V-1 . A m.
Diana L.,Cordfay, Clerk-
- l,ApVro_v,ed by me, the Mayor of the Cil
CJI?V 2008 at 10 ?-2 in
c1QLr1d. day of
ATTEST:
.Tarn` .Brainard;'Mayor
Diana L. Cordra- Clerk -Trews
Prepaied by: Carry Gigerieh, Managing Director
Ginovas
8888 Keystone;Crossing
Suite-1450
Indianapolis, Indiana 46240
3171819-0890 (telephone)
317/819-0888 (facsimile)
larry(eWinovus.com (e-mail)
EX141BIT A
A LAND BOUNDARY DESCRIPTION OF THE BUILDING, AND LAND LOCATED -AT
11611 N. MERIDIAN,STREET
HAMILTON, COUNTY,;INDIANA
OCTOBER 6,: 2008
PAGE I OF 1
Record Description -
Legal Description of Meridian Mark 1, 11611 N: Meridian Si., Carmel, Indiana
PARCEL IT
Part of the Southwest Quarter of Section 35; Township, 18 North, Range-3 East in Hamilton County, Indiana,
being more particularly described as-follows:
Beginning at.the•Southeast corrid-f of the said S'outhwesl'Quarter Section; thence.North 00 degrees,05
minutes 40 seconds West (assumedbe'aring) along the Eastline of the said Quartcr Section 728.45 feet;
thence North 75 degrees 0$ minutes 40 seconds West 58.58. feet ro a eurv'e,having a radius of I t 7.00 feet, the
radius point of which bears North-L4 degrees 54 minutes 20 seconds East,' 1tence•Northwesterly along the
said curve 61,26,feet to a point which bears<South 44 degrees 54 minutes,20 seconds West from said radius
point; thence North 45 degrees 05 minutes 40 seconds West 287.00 feet; thence South 44 degrees 54 minutes
20 seconds West 145:00'feet;;thence'South 89 degrees 54 minutes 20, secondIs? West 172,39_feet to the East.
right-of-way line of US. Highway #3'1 (the next two (2) described.courses'bemg`along the said East right-of
-way line); thence South 00 degrees 04'minutes•51seconds East 819.16 feet,; thence Soutlr58,degrees 40
minutes 40 seconds East 4451:feet; ihence South OO.degrees,04 minutes 52 seconds East 45.01 feet to tae
South line;of the said Quarter Section; thence North 88 degrees'32:minutes 30 seconds East along the said
South line 549.26 feeTto the Beginning Point.
Together with easements rights created and-reserved in a Declaration of Coordinated Development
Covenants and Easements, executed by Meridian Mile Associates, a limited.partnership on January 14, 1984
as Instrument number 84-755 in Miscellaneous Record 177,;page 187-211.
EXCEPT:
That certain real property deededito the Cityof Carmel, Indiana, and more particularly described in that
certain Limited WarrantyDeed`from OP&F Indianapolis, LLC to City of Carmel, Indiana, filed on
November 16, 2000, to the'Office of the Recorder of Hamilton County, Indiana, as Instrument Number
200000057658.
EXCEPT:
That certain real property dedicated to the City.of Carmel;,Indiana and more particularly described in that
certain Grant of Right-of-Way from •OP&F'Indianapolis; LLC to City of Carmel, Indiana, filed on.November
16, 2000,'in the Office of the Recorder of Hamilton County, Indiana, as Instrument Number 200000057659.
EXAIBIT'B
NOTICE OF ADOPTION REGARDING THE APPROVAL, OF A TEN-YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR SOFTWARE'ENGINEERING:PROFESSIONALS, INC.'S
HEADQUARTER.. OPERATIONS FACILITY"LOCATED AT 11611 NORTH MERIDIAN STREET
October 20, 2008
PAGE' 1 OF 1
Notice is hereby given that=the Common Council of the City of Carmel, Indiana did on the 20th day of
October , 2008-adop: a Resolution,approving a ten-year personal property tax abatement for Software
Engineering Professionals, Inc. for its investment in its global headquarters operations facility at 11611
North 1vleridian.St. This Resolution, which affeemthe following described property located,in the City of
Carmel, Indiana: 11611 North Meridian Street; ClayTownship,1 ainilton,County, was,adopted following the
filing ofinformationhy Software Engineering Professionals, Inc. and the previous approval of the
designation of property located at 11611 North Meridian Street as. an Economic Revitalization Area for the
purpose of securing an abatement ofproperty'taxes pursuant,to Indiana'Cdde Section 6-1.1-12.1-4 relative to
the installation of new qualifying information technology / telecommunications equipmentand computer
hardware.
Such Resolution previously approving such property as an Economic.Revitalization Area.and such
Resolution approving a ten-year.pers6nal property'tax abatement f6r.Software,Eng ncering Professionals,
Inc, were provided by the Common Council of the City of.Carmel, Indiana.on-the 6th day-of October, 2008.
Furthermore, the Resolution.states that on the' 20th day of.October; 2008 at 6 p.m,jn the, Council'Chamber
Room located at One Civic-Square, Carmel, Indiana 46032the Common Council.metto hear public
comment from persons interested in these proceedings and male.a determination about approving a ten-year
personal property tax abatement for'Sottware Engineering Professionals; Inc for its investment. in new
qualifying information technology/ telecommunications:equipment,and•computer;hardware. A;description
of information related to Software Engineering; Professionals; Inc.'s project-and,a copy;of such-Resolution
are available for-inspection.in the?Hamilton County Assessor's Office, Suite 214, 33 North 9°i Street,
Noblesville, Indiana 46060.
STATEMENT OF BENEFITS
?,. PERSONAL PROPERTY
rp - Slata Form 51166 (R 11-061
Prescribed by.the Department of Loral Goverment Finance.
FORM SS-1 ! PP
PRIVACY NOTICE
The cost and any spadac WiVicuars
salary information is confidential: the
. balance of the filing is public record'.
r IC e-1.1-12.1-5.1 C and (m.
INSTRUCTIONS:
1, This statement must be submitted to the. body, designating the Economic Revitalization Area prior.lo the publicihsanng if, the designating body requires
mfomretiuntrum the dPpllcant in making its decision about whether to designate an Economic Revitalization Area. Clherwise lhts afaterrrenfmu5t Ue 5ubmtded
to the designating body BEFORE a'parson instatis the now manufadunng equipment anti/or research and developmant equipment, 8ndior lOgisffcal distribution
equipment and/or information technology equipm®nNdr which the person wishes to-claim a dadu011on. 'proiacW planned or committed to after July 1, 1987,
and areas designated after July 1...1967,require aSWEMENTOFBENEFITS. fiC6=1.1-12.1)
2. Approbal of the designating body.( City Council, Town, Board County Council. 06,1 61si be obtained prldr to lostdllatlon of the now manufacturing, aquipment
and/or resoamh and development equipment and/or logistical distribution eouipmenl,endlor intormatlOn technologyequlpment_ BEFORE a deduction may
be approved
3. To obtain a deduction,; a. person must hie a carfihed deduc0on, schedule with. the persons personal property, return on a certified deduction schedule (Farm
103-ERA) with the township assessor of the township where the property is situated. The 103 FRA' mast be filed between'Merch 1 and-May' 15 of the
assessmenfyear in which new manufacturing equipment end/or research and development equiltnlant andler logistical dlsliitsuflon,-eQulpment.end/or
information technology equipment is,instalfed and fully functional, unless a filing axlansion he$ boon obtained: A. parson who obtains a. thing extension must
file the term between March 1 antlthe extended due dete of that year - -
4, Property owners whose Sratamerifof Benefits was approved after June: 30, 1991, must submit Form, CF-1 / PP annually to,shcw: compliance with the
Statemonfof Benefits. (I36'1.1-12:1-5.6)
5. -The schedules astablisbed under 1C 6-1;11-12,11-4,5(d) and (e) apply to.epuipmartt instaflod. after March 1; 2001. For equipment: installed prior to March 2,
2001, the schedules and statutes in offect.at the time shah continue to apply. (IC.B 1. T 12.1.4.5fo and (g))
IESF• o• e
Name of taxpayer
Software Engineering Professionals, Inc.
Addreis of taxpayer (number.and susot. city staib, and ZlPcoda)
Name of contact person Telephone number
Traci Dossett (317) 843-1640
s • o a r • a ^s•• r ••s
Nance of designating body Resolution number (a)
Common Council of the City of Carmel CC-10-o6-08-01
Location of property County DLGF taxing district number
11611 Meridian Street, Suite 800, Indianapolis. IN 46032 Hamilton 29-003
Description of manufacturing equipment and/or research and development equipment ESTIMATED
and/or logistical distribution equipment and/or information technology equipment. START DATE COMPLETION DATE
'
(use additional shesfs
i( necessary)
Information Technology equipment needed to serve Manufacturing Equipment
existing client base and provide.solid growthloundation RI&'D Equipment
for anticipated new customer. development. Logjst Dist Equipment
IT Equipment .1012712008 12/311201_.3
• s s a e •e°• x •••
Current number salaries Numuecretain_ed, Salaries Numberaddithnal satenes
71 013,966.00 71 4,713;966.00 89 5,340,000.00
• r • e s a •s•o o_••r
NOTE: Pursuant to lC 6-.4.1-12:1-5i1 (d) (2) the MANUFACTURING R_8 0 EQUIPMENT LOGISTDIST' IT EQUIPMENT
EQUIPMENT EQUIPMENT
COST of the property is confidential. COST ASSESSED COST ASSESSED COST' ASSESSED COST' ASSESSED
'
VALUE - VALUE
'VALUE 'VALUE
Current values i
Plus estimated values of pioposed project aos,rao.oo
Less values of any property tieing -replaced
Net estimated values upon'co_ m_pletion of project
s a s-_me.
e
Estimated solid waste converted (pounds) -.0.00 Estimated hazardous waste converted (pounds)'. 0.00
Omer benefits:
e
'I hereby certify that, the. rapresentallons.in this staterrent'sre ime.
Signature at aulnor drat Tde Date signed (.month, day,, year)
Controller 09/0912008
U
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 bythis body:: Sold resolutftn,. passed under ICV'1.1-1ZJ1 i5r Pirwides for the following hinitatlone as
authorized under IC 6-1.1-12.1-2.
A . The designated area has been limited ,to.a period of. time not to exceed calendar years `(see beii The date this designation expires
8 . The type of deduction that lea?awed.in the designated area is limlled.lo:
1. Installation of new maroactudng equipment; ? Yes ? N,o
2. Installation of new research and development equipment: ? Ye s n N d
3. Installation of new logistical distribution equipment. ? Yes ? N o
4. Installation of new.information technology equipment ?Yes ?No
C. The amount of deduction-applicable to new manufactuifng equipment is limited to S
cost with an assessed value of
D. The amount.of'deduction applioeble to new researchtand..development equipment Is limited to $ cost
with an assessed value of$
E . The amount of deduction applicable to new logistical distribution equipment isllmited to $ cast. with an assessed value of
F. The amount of deduction applicable to-new information technology equipment' is aimited to $ cost with an assessed value of
G. Other limitations or conditions
M- The deduction for. now manufacturing,equfpmant andlor-new research and development equipment andlor new logistical distribution equipment andior
new information technology equipment Installed and first claimed eligible for deduction on or after Juiy 1; 2000, ,IS allowed for:
?1year oeyeara Far ERA'sestablisnedprior to July1,2000,g8(ya
?2years ?7years 5or 10year schedulemaytiededucted.
?3'years ?aYears-
?4years ?9 years
? 5 years" ? 10 years
`•
Also we have reviewed the information contained. in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits Is sufficient to juetify [he deduction -described above., _
mlmr-• Date signed(-fh,'.day, year)
i- y? y ?e z -o k
body.
' if the designating body; limits the time period durin hich an area is'an economic revitalizatlon'area, it does not limit the length of time a taxpayer is
entitled to receive a deduction to a number of years signaled under IC 6-1:1-12.14,5
n
CITY OF ICARMEL
JANtE5 BRAINAVD. i%4,%Y:()R.
August 4, 2008
Mr.1efl'Gi lbert
President.& CEO
Software Engineering Professionals
c/o Ginovus
8888 Keystone Crossing
Suite 1450
Indianapolis, Indiana 4,6240
Dear Mr. Gilbert,
The City of Carmel is pleased to have the opportunity to work with Software Engineering
Professionals (SEP) regarding the proposed location of its new corporate headquarters facility in Carmel,
Indiana. We have enjoyed working with your site selection consultant Ginovus to identify the most
meaningful ways we can assist with your proposed project.
It is our understanding that SEP is contemplating a capital investniehit of approximately $6 million
(including lease payments made to Duke Realty Corporation) and the creation of approximately 89 new
jobs (average annual salary level of approximately $60,000 plus benefits) in "the city of Carmel by
December 31, 2013:. In support of the, proposed'locaijon of your proposed new corporate headquarters
project, the City of Carmel makes thefollowing commitments in support of the project:
1. The City of Carmel will provide a ten-year personal property tax abatement in support of
the capital investment eligible for tax abatement made by SEP in support of the proposed
new corporate headquarters project, and;
2. The City of Carmel will provide:support for and participate in a public announcement of
SEP's proposed 'new corporate headquarters project, should Carmel. Indiana be selected
for the project.
Please note that in addition to the personal property tax abatement being provided to SEP in
support of the proposed new corporate headquarters project, the City of Carmel is in the process of
completing in excess of $5 ;million of public improvements, to Improve traffic, flow and community
amenities in the area near and adjacent to the company's preferred site. Also, please. note that final
approval of the personal property tax abatement for the project must be granted by the Carmel City
Council. The City of Carmel will provide your company and Ginovus with all necessary technical
assistance throughout the approval, process.
C1,utt C:IPR' SQItARF, Cnxn+rt.. tN -16113?2 C)rmt_c 317-. )71_2 401.. fox 317:844.3498
li.l?,v[. jhrurt:ud4llcarmc+l.in.guv
The City of Carmel greatly appreciates the opporttiirdty to work with SEP. We. are very pleased
that your company is considering the location of its new corporate headquarters facility in our community.
If you have any questions. and/or comments, please do not hesitate to give'me a call Thank you for your
consideration.
yours,
Ve trulyrc?
r?-
imBrainard
Mayor
Cc: Members of the Carmel'._City Council
Larry Gigerich, Managing Director. Ginovus