HomeMy WebLinkAboutCC-02-01-10-01 MISO ERA Tax AbatementRESOLUTION CC- 02- 01 -10 -01
Sponsors: Councilors Carter, Rider, Sharp and Snyder
RESOLUTION ("RESOLUTION") OF THE COMMON COUNCIL OF
THE CITY OF CARMEL, INDIANA DESIGNATNG
701 CITY CENTER DRIVE, CARMEL, INDIANA
AS AN ECONOMIC REVITALIZATION AREA
WHEREAS, I.C. 6 -1.1- 12.1 -4 authorizes partial abatement of real property taxes attributable to
improvements made to real estate; and
WHEREAS, I.C. 6 -1.1- 12.1 -2.5 empowers the Common Council of the City of Carmel, Indiana
(the "Council to designate an area as an Economic Revitalization Area "ERA determine the
duration of the abatement period(s) for such property and impose other reasonable conditions; and
WHEREAS, a Designation Application (as defined in I.C. 6- 1.1- 12.1 -1) has heretofore been
filed with the Council by Midwest Independent Transmission System Operator, Inc. "the Company
and such Designation Application requests that the real estate located at 701 City Center Drive, Carmel,
Indiana and legally described therein (the "Site be designated as an ERA; and
WHEREAS, the Company will make real property improvements in support of its corporate
headquarters and Information Technology (IT) operations facility, provided that the Company is able to
obtain real property tax deductions as authorized by I.C. 6- 1.1- 12.1 -4; and
WHEREAS, the Company seeks to have the Council authorize real property tax deductions in
connection with real estate improvements at the Company's corporate headquarters and IT operations
center at 701 City Center Drive, Carmel, Indiana; and
WHEREAS, the Council has reviewed such Designation Application 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 Designation Application and Statement of
Benefits (Form SB -1) heretofore filed by the Company, the Council hereby makes the following
findings:
FINDING 1. The Site has been undesirable for normal development due to the following
economic conditions:
(a) The Site is zoned for and is generally suitable for use as an office
development; however, there is a low demand for office space in the
geographic area where the Site is located due to the economic conditions
present in the area (the "Corridor
(b) 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 expansion of its corporate headquarters and IT operations facility
at the Site is consistent with the Site's existing zoning and represents an enhanced
use for the Site.
FINDING 3. The Company plans to make real estate improvements that will result in an
addition to the Corridor's overall assessed value within an accelerated time
period.
FINDING 5.
FINDING 6.
FINDING 7.
FINDING 8.
FINDING 9.
FINDING 11.
FINDING 12.
Sponsors: Councilors Carter, Rider, Sharp and Snyder
FINDING 4. The proposed development of the Site by the Company meets the parameters set
forth in Council Resolution No. CC- 02- 05- 01 -02.
The estimate of the cost and assessed value of the Company's proposed
development of the Site is reasonable for projects of a similar nature.
The estimate of the number of individuals who will be employed (i.e.,
approximately 69 new FTEs) can be reasonably expected to result from the
Company's proposed improvement of the Site.
The estimate of the annual salaries (i.e., average of approximately 583,000 per
annum) of those individuals who will be employed can be reasonably expected to
result from the Company's proposed project at the Site.
The estimate of the cost and assessed value of the real estate improvements is
reasonable for a project of this type.
The Company will remain an active corporate citizen involved in and committed
to the City of Carmel.
FINDING 10. The Company's corporate headquarters and IT operations facility in Carmel is
consistent with the goals and vision established by the City of Carmel and the
Hamilton County Alliance.
Other benefits can be reasonably expected to result from the Company's proposed
investment in real estate improvements at the Site.
The totality of benefits is sufficient to justify real property tax deductions herein
described.
Sponsors: Councilors Carter, Rider, Sharp and Snyder
NOW, THEREFORE, BE IT RESOLVED THAT, a legal description of the previously
declared ERA has been attached hereto as Exhibit A.
BE IT FURTHER RESOLVED THAT, the Site is hereby declared an ERA for purposes of
granting real property tax abatement in support of the corporate headquarters and IT operations facility
project and real estate improvements.
BE IT FURTHER RESOLVED THAT, the number of years for which the Company is entitled
to a deduction for real estate improvements, pursuant to I.C. 6- 1.1- 12.1 -4, shall be ten (10).
BE IT FURTHER RESOLVED THAT, the Council shall have the right to reduce the length of
and/or end the ERA designation period granted for the Site should the Company and /or a subsequent
owner of the Company not fulfill commitments made to the City of Carmel regarding the amount of
capital investment, job creation/retention 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 Company shall appear before the 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 the commencement of construction of the real estate improvements.
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.
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 and that such notice shall be in the form
attached hereto and incorporated herein as Exhibit B.
A Adopted by the Common Council of the City of Carmel, Indiana this S day of
2010, by a vote of ayes and 0 nays.
Presiding Of er
L. S arp, esident Pro Tempore
onald E. Carter
ATTEST:
Diana L. Cordray, Clerk Treasur
ATTEST:
V
Presented by me to the Mayor of the City of Carmel, Indiana this 0- day of
2010, at la. ao �.m.
Diana L. Cordray, Clerk -Treas
Approved by me, Mayor of the City of Carmel, Indiana this day of
,It,QYLIA- 2010, at /c9 3$ $.m.
Diana L. Cordray, Jerk -Tre
Prepared by: Larry Gigerich, Ma agi- g Director
Ginovus
8888 Keystone Crossing
Suite 1450
Indianapolis, Indiana 46240
317/819 -0890 (telephone)
317/819 -0888 (facsimile)
Larry @Ginovus.com (e -mail)
COMMON COUNCIL OF THE CITY OF CARM
Sponsors: Councilors Carter, Rider, Sharp and Snyder
-C--�
es Brainard, Mayor
A LAND BOUNDARY DESCRIPTION OF THE BUILDINGS AND LAND LOCATED AT
701 CITY CENTER DRIVE, CARMEL, INDIANA
HAMILTON COUNTY, INDIANA
DATE
PAGE 1 OF 1
Legal Description 701 City Center Drive
EXHIBIT A
Sponsors: Councilors Carter, Rider, Sharp and Snyder
Part of Block 11 in the Conditional Secondary Plat Carmel Science and Technology Park, a subdivision in
Hamilton County, Indiana, the plat of which is recorded in Plat Book 13, pages 65 thru 71 and amended by
Certificate of Correction recorded as Instrument Number 87 -01640 in the Office of the Recorder of Hamilton
County, Indiana, described as follows:
Commencing at the Southwest corner of the Northwest Quarter of Section 36, Township
18 North, Range 3 East in Hamilton County, Indiana (5/8 inch rebar with cap marked
"Schneider Engr. Corp. herein after referred to as "rebar thence North 88 degrees 59 minutes 30 seconds
East (plat bearing) along the South line of said Northwest Quarter
Section and along the South line of said Block 11 a distance of 401.50 feet to the Point of Beginning at the
southeast corner of Lot 1 of said Block 11 per plat thereof recorded as Instrument Number 9109164, marked
by a "rebar the following four courses are along the east lines of said Lot 1; (1) thence North 01 degrees 00
minutes 30 seconds West a distance of 265.00 feet to a "rebar'; (2) thence North 88 degrees 59 minutes 30
seconds East a distance of 20.00 feet to a "rebar (3) thence North 01 degrees 00 minutes 30 seconds West a
distance of 190.00 feet to a "rebar (4) thence North 30 degrees 46 minutes 06 seconds West a distance of
102.20 feet to the southwest comer of a 0.025 acre tract of land described in a deed to the City of Carmel
recorded as Instrument Number 200300018026, said point being on a non tangent curve to the Left having a
radius of 652.00 feet, the radius point of which bears North 33 degrees 23 minutes 58 seconds West; thence
northeasterly along the southerly line of said tract and along said curve an arc distance of 93.63 feet to the
northerly line of said Block 11, being on a non tangent curve to the right having a radius of 375.00 feet, the
radius point of which bears of South 20 degrees 16 minutes 42 seconds East; thence northeasterly along said
northerly line and along said curve an arc distance of 188.15 feet to the northwest corner of a 0.056 acre tract
of land described in a deed to the City of Carmel recorded as Instrument. Number 200300018026, said point
being on a non tangent curve to the left having a radius of 750.00 feet, the radius point of which bears North
27 degrees 57 minutes 50 seconds East (the following two courses are along the southerly lines of said tract);
(1) thence southeasterly along said curve an arc distance of 147.06 feet to a point which bears South 16
degrees 43 minutes 46 seconds West from said radius point; (2) thence South 84 degrees 51 minutes 37
seconds East a distance of 107.03 feet to the aforesaid north line of Block 11, being on a non tangent curve
to the left having a radius of 735.00 feet, the radius point of which bears North 08 degrees 40 minutes 48
seconds East; thence easterly along said north line and along said curve an arc distance of 46.87 feet to a
point which bears South 05 degrees 01 minutes 35 seconds West from said radius point; thence South 00
degrees 01 minutes 37 seconds East a distance of 149.95 feet; thence South 28 degrees 22 minutes 49
seconds East a distance of 246.50 feet; thence South 33 degrees 08 minutes 58 seconds East a distance of
109.03 feet; thence North 88 degrees 59 minutes 30 seconds East parallel with the south line of said Block 11
a distance of 139.43 feet to the east line of said Block 11; thence South 00 degrees 18 minutes 08 seconds
East along said east line a distance of 78.01 feet to a "rebar" at the southeast corner of said Block 11; thence
South 88 degrees 59 minutes 30 seconds West along the south line of said Block 11 a distance of 824.80 feet
to the Point of Beginning, containing 8.00 acres, more or less.
EXHIBIT B
Sponsors: Councilors Carter, Rider, Sharp and Snyder
NOTICE OF ADOPTION REGARDING THE APPROVAL OF A
TEN -YEAR REAL PROPERTY TAX ABATEMENT FOR
THE MIDWEST INDEPENDENT TRANSMISSION SYSTEM OPERATOR, INC.
LOCATED AT 701 CITY CENTER DRIVE, CARMEL, INDIANA, 46032
DATE
PAGE 1 OF 1
Notice is hereby given that the Common Council of the City of Carmel, Indiana did on the
day of 2010 adopt a Resolution approving a ten -year real property tax abatement for Midwest
Independent Transmission System Operator, Inc. for its investment in its corporate headquarters and IT
operations facility located at 701 City Center Drive. This Resolution, which affects the following
described property located in the City of Carmel, Indiana: 701 City Center Drive, Clay Township,
Hamilton County, was adopted following the filing of information by Midwest Independent
Transmission System Operator, Inc. and the previous approval of the designation of property located at
701 City Center Drive as an Economic Revitalization Area for the purpose of securing an abatement of
property taxes pursuant to Indiana Code Section 6- 1.1- 12.1 -4 relative to the completion of real estate
improvements.
Such Resolution previously approving such property as an Economic Revitalization Area and
such Resolution approving a ten -year real property tax abatement for Midwest Independent
Transmission System Operator, Inc. were provided by the Common Council of the City of Carmel,
Indiana on the of 2010. Furthermore, the Resolution states that on the of
2010 at 6 p.m. in the Council Chamber Room located at One Civic Square, Carmel, Indiana 46032, the
Common Council met to hear public comment from persons interested in these proceedings and make a
determination about approving a ten -year real property tax abatement for Midwest Independent
Transmission System Operator, Inc. for its investment in real estate improvements. A description of
information related to Midwest Independent Transmission System Operator, 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` Street, Noblesville, Indiana 46060.
February 2; 2009
Mr. Mike Holstein
Vice President and CFO
Midwest ISO
701 City Center Drive
Carmel, Indiana 46032
Dear Mr. Holstein:
E ul _:D
im Brainard
Mayor
Cc: Members of the Cannel City Council
Lary Gigerich, Managing Director, Ginovus
e 7 D f3
C'n ARMEL
JAMES 13RATNARD, MAYOR
The City of Carmel is most pleased to have the opportunity to work with Ginovus in 'support of Midwest ISO`s
proposed expansion project in our commtun y. We have enjoyed working with your company and Gmovus again to identify
the most meaningful ways we can assist with your proposed project.
It is our understanding that Midwest ISO is contemplating a capital investment of approximately $110 million, the
retention of. 650 existing. positions, and the creation of :approximately 69 new jobs (average. annual salary level of
approximately $83,000.00) in the City of Carmel by December 31 ,2014.
I further understand that of the $110 Million capital investment, approximately $107.9 Million is in personal property and
approximately $2.1 Million is in real property improvements.
In support of the proposed expansion of your company's facilities in our community, the City of Carmel makes the
following commitments in support of project:
1. The City of Carmel will provide a ten -year real property abatement in support of the capital investment
made by Midwest ISO for improvements to the company's existing leased building;
2. The City of Carmel will provide assistance. to Midwest ISO during the permitting process for the
improvements to the company's existing leased building, and;
3. The City of Carmel will provide support for and participate in the development of a press release regarding
Midwest ISO's proposed expansion project, if a decision is made to locate the new jobs in our community.
Please note that final approval for property tax abatement is required from the Cannel City Council for, the proposed
expansion project. The City of Carmel will provide you and Ginovus with all necessary technical assistance throughout the
property tax abatement approval process.
The City of Carmel _greatly appreciates the opportunity to work. with Midwest ISO and Ginovus: We are very
pleased that your company is considering another project in the City of Carmel. Thank you for your consideration.
ONE C SQUARE, C.Aafi:E., IN 46032 OFFEcE? 317.571.2401, FAx 3!7..41.3498
EMAI I. Ibrainard@car3iX'.1.111.gov
STATEMENT OF BENEFITS
REAL ESTATE IMPROVEMENTS
State Form 51767 (R2 1 -07)
Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
Redevelopment or rehabilitation of real estate improvements (IC 6- 1.1- 12.1 -4)
El Eligible vacant building (IC 6 -1.1- 12.1 -4.8)
20 PAY 20
FORM SB -1 Real Property
INSTRUCTIONS:
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 statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation of real property 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 initiation of the redevelopment or rehabilitation,
BEFORE a deduction may be approved.
3. To obtain a deduction, application Form 322 ERA/RE or Form 322 ERANBD, Whichever is applicable, must be filed with the County Auditor by the later
of (1) May 10; or (2) thirty (30) days after the notice of addition to assessed valuation or new assessment is mailed to the property owner at the address
shown on the records of the township assessor.
4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF -1 /Real Property annually to the application to
show compliance with the Statement of Benefits. (IC 6- 1.1- 12.1- 5.1(b) and IC 6- 1.1- 12.1 5.30)]
5. The schedules established under iC 6- 1.1- 12.1 -4(d) for rehabilitated property and under IC 6 -1.1- 12.1 4.8(1) for vacant buildings apply to any statement
of benefits approved on or after July 1, 2000. The schedules effective prior to July 1, 2000, shall continue to apply to a statement of benefits filed before
July 1, 2000.
ECTION1
Name of taxpayer
Midwest Inde.endent Transmission System Operator, Inc. (Midwest ISO)
Address of taxpayer (number and street, city, state, and DP code)
720 Cit Center Drive, Carmel, Indiana 46032
Name of contact person
Michael P. Holstein
1'SECTION 2
Name of designating body
City of Carmel
Location of property
701 City Center Drive, Carmel, Indiana 46032
Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary)
Midwest ISO plans a capital investment of $11 million to expand it's corporate headquarters
and IT operations center in Carmel, Indiana.
S
Current number
650.00
CTION
ECTIO
ECTIO
6
NOTE: Pursuant to IC 6- 1.1- 12.1 -5.1 (d) (2) the COST of the property
is confidential.
Plus estimated values of proposed project
Less values of any property being replaced
Net estimated values upon completion of project
5
Salaries
$59,000,000.00
gkif TAXPAYER INFORMATION'
TIMATE OF.;EMPLOYEES AND,SALARIES AS:RESULT OF PROPOSEDPROJECT
Number retained
650.00
STE,CONVERTED ANI4THER BENEFITS'PROMISED sy. T T.,TAXPAYERl
Estimated solid waste converted (pounds)
1'
TAXRAYER CERTIFICATION
Signature of authorized representati
Telephone number
(317) 249 -5525
"LOCATIONAND;.DESCRIPTION OF PROPOSED.PROJECT t
County
Hamilton
Salari
$59,000,000.00
TIMATEDlTQTAL;COSTANU VALUEpik PROPOSED'
COST
11.000.000.00
11.000.000.00
Title
Vice President CFO
E -mail address
mholstein(a�midwestiso.orp
Resolution number
CC 02- 15 -10 -01
DLGF taxing district number
016
Estimated start date (month, day, year)
04/01/2010
Estimated completion date (month, day, year)
12/31/2014
Number additional
69.00
fat
REAL ESTATE IMPROVEMENTS
ASSESSED VALUE
AfA
Salaries
$5,727,000.00
Estimated hazardous waste converted (pounds)
Other benefits
55
I hereby certify that the representations in this statement are true.
Date signed (month, day, year)
01/12/2010
Page 1 of 2
2;oesiptiA Om*
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 IC 6- 1.1.12.1, provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed
expires is
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements Yes
2. Residentially distressed areas Yes
3. Occupancy of a vacant building Yes
C. The amount of the deduction applicable is limited to
D. Other limitations or conditions (specify)
E. The deduction is allowed for
Approved (signature and title of authorized member of designating body)
Attested by (signature and title of attester)
Nd
No
No
years' (see below).
calendar years (see below). The date this designation
We have also 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 justify the deduction described above.
Telephone number
Date signed (month. day, year)
Designated body
If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is
entitled to receive a deduction to.a number of years designated under IC 6- 1.12 12.1 -4.
A. For residentially distressed areas, the deduction period may not exceed five (5) years.
S.. For redevelopment and rehabilitation or real estate improvements:
1. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years.
2. If the Economic Revitalization Area was designated after June,20, 2000, the deduction period: tray not exceed ten (10) years.
C. For vacant buildings, the deduction period may not exceed two (2) years.
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