HomeMy WebLinkAboutCC-02-15-10-01 MISO 10 Year Tax Abatement (Real Property)RESOLUTION CC- 02- 15 -10 -01
Sponsors: Councilors Carter, Rider, Sharp and Snyder
A RESOLUTION "RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL,
INDIANA, APPROVING A TEN -YEAR (10) REAL PROPERTY TAX ABATEMENT FOR
MIDWEST INDEPENDENT TRANSMISSION SYSTEM OPERATOR, INC.
LOCATED AT
701 CITY CENTER DRIVE, CARMEL INDIANA
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. 6-1.1-12.1-4 empowers the Common Council of the City of Carmel, Indiana (the
"Council to grant approval for real property tax abatement for the qualifying investments made by the
Midwest Independent Transmission. System Operator, Inc. "the Company in connection with real estate
improvements at the Company's headquarters and Information Technology (IT) operations at 701 City
Center Drive, Carmel, Indiana; 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 the Company and such information describes the investment in qualifying real
estate improvements in Carmel, Indiana; and
WHEREAS, the site located at 701 City Center Drive "Site has been legally described and
designated as an Economic Revitalization Area (ERA) for purposes of providing real property tax abatement
to the Company (as defined in I.C. 6- 1.1- 12.1 -4); and
WHEREAS, the Company will make real property improvements in support of its corporate
headquarters and IT operations facility, provided that the Company is able to obtain real property tax
deductions as authorized by 1.C. 6-1.1-12.1-4; and
WHEREAS, the Company seeks to have the Council authorize real property tax deductions in
connection with the qualifying investment in real estate improvements; 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 together with the 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 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 4.
FINDING 5.
FINDING 6.
FINDING 7.
FINDING 8.
FINDING 9.
FINDING 10.
FINDING 11.
FINDING 12.
Sponsors: Councilors Carter, Rider, Sharp and Snyder
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 $83,000 per annum)
ofthose 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.
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 designation has been attached hereto as Exhibit A.
BE IT FURTHER RESOLVED THAT, the Site was previously declared as an ERA for purposes
of granting real property tax abatement in support of real estate improvements.
BE IT FURTHER RESOLVED THAT, the number of years for which the Company is entitled to a
deduction for investments made in the real estate improvements pursuant to I.C. 6 -1.1- 12.1 -4 shall be ten
(1
0).
BE IT FURTHER RESOLVED THAT, the Council shall have the right to reduce the length of
and/or end the real property tax abatement 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 based upon the
approval of ten -year real property tax abatement 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 fled with the Hamilton County
Assessor as required by T.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.
PASSED by the Common Council of the City of Carmel, Indiana this day of
JA YUL.tct..4.4_.8
Richard L. Sharp,
Ronald E. Carter
ATTEST:
ATTEST:
2010, by a vote of 7 and
COMMO OUNCIL OF THE CITY OF CA
Diana L. Cordray, Clerk -Treas r
Prepared by: Larry Gigerich, Managing Director
Ginovus
8888 Keystone Crossing
Suite 1450
Indianapolis, Indiana 46240
317/819 -0890 (telephone)
317/819 -0888 (facsimile)
Larry(Ginovius.com (e -mail)
Sponsors: Councilors Carter, Rider, Sharp and Snyder
Diana L. Cordray, Clerk -Tre.: rer
Presented by me to e Mayor of the City of Carmel, Indiana, the /-5 day of
2010, at 7: os P .m.
Diana L. Cordray, Clerk Treasurer
per..
Approved by me, the Mayor of the City of Carmel, Indiana
2010, at 7: a.S .m.
afrtes Brainard, Mayor
nays.
RS -14- day of
Sponsors: Councilors Carter, Rider, Sharp and Snyder
EXHIBIT A
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
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 comer 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
February 15, 2010
PUBLIC NOTICE OF ADOPTION OF RESOLUTION CC- 02- 15 -10 -01
Notice is hereby given that the Common Council of the City of Carmel, Indiana did on February 1, 2010 adopt
Resolution CC- 02- 01 -10 -01 to designate an Economic Revitalization Area "ERA for Midwest Independent
Transmission System Operator, Inc. for its investment in its corporate headquarters and IT operations facility.
This Resolution, which affects the following described property located in the City of Carmel, Indiana: 701
City Center Drive, Hamilton County as described in Exhibit A of Resolution CC- 02- 01 -10 -01 "the Property
was adopted following the filing of information by Midwest Independent Transmission System Operator, Inc.
as an Economic Revitalization Area for the purpose of securing a ten -year personal property tax abatement
pursuant to Indiana Code Section 6 -1.1- 12.1 -4 relative to the completion of real estate improvements.
On the 15th of February 2010 at 6 p.m. in the Council Chamber Room, located at One Civic Square, Carmel,
Indiana, 46032, the Common Council will receive all remonstrances and objections from interested persons
regarding these proceedings. A description of the property and a copy of Resolution CC- 02- 01 -10 -01 are
available for inspection in the Hamilton County Assessor's Office, Suite 214, 33 North 9th Street, Noblesville,
Indiana 46060.
For additional information on the project, contact Larry Gigerich, Managing Director, Ginovus 317 -819 -0890.
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)
Eligible vacant building (1C 6- 1.1- 12.1 -4.8)
20 PAY 20
FORM SB -1 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 ERA/VBD, 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 /Rea! 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- 5.3(j)]
5. The schedules established under IC 6 -1.1- 12.1 -4(d) for rehabilitated property and under 1C 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.
ECTION
Name of contact person
Michael P. Holstein
Name of designating body
City of Carmel
ECTION 2
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 its corporate headquarters
and IT operations center in Carmel, Indiana.
ECTIONi3
Current number
650.00
CTION 4
iECTIOI
,SEC s6 i
Salaries
$59,000,000.00
Number retained
650.00
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
T CONVERTED,'AND`OTHER BENEFITS PROMIS BY 11.g.AAXPAYE
Estimated solid waste converted (pounds)
XPAYER;CE RTIFICATlb Wti
Signature of authorized representati
Ek1 i
AXPAYER`INFORMATION,
'OCATION AND OF'PROPOSED.PROJECT 1-
STIIYtATEQrTOTAL,COST OF PROPOSED'ROJEC7
Name of taxpayer
Midwest Independent Transmission System Operator, Inc. (Midwest ISO)
Address of taxpayer {number and street, city, state, and ZIP code)
720 Cit Center Drive, Carmel, Indiana 46032
Telephone number
(317) 249 -5525
County
Hamilton
STIMATE OF; ",EMPLOYEES, AND, SALARIES AS; RESULTr¢OF PROPOSED;PROJECI
Salaries
$59,000,000.00
COST
11.000,000.00
11 000,000.00
r
Title
Vice President CFO
E -mail address
mholstein(a�midwestiso.orq
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
55
tt
Salaries
$5,727,000.00
5
to
REAL ESTATE IMPROVEMENTS
ASSESSED VALUE
Estimated hazardous waste converted (pounds)
Other benefits
ht
I hereby certify that the representations in this statement are true.
Date signed (month, day, year)
01/12/2010
Page 1 of 2
We have reviewed our prior actions relating to the designation of this Economic Revitalization Area and find that the applicant rneets the general standards
adopted in the resolution previously approved by this body. Said resolution, passed under IC 6 -1.1. 1.2.1, 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 S
D. Other limitations or conditions (specify)
E. The deduction is allowed for
No
No
0 N
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.
Approved (signatu
of J >f ho
Attes(gd �fy (s ignatrire y... itt of ster)
memoir of designating pod
eli1 rte.
&A-ra6eu,klieL414,
Telephone number
3/7 5 W-04/-
Designated body /y
C rn Dr LA I 1
Date signed (month/day. year)
a
If the designating body limits tr 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 /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.
6... For redevelopment and rehabilitation or real estate irnprovements:
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 EconomicRevitatization Area was designated after June,20, 2000, the deduction period may not exceed ten (10) years.
C. For vacant buildings, the deduction period may not exceed two (2) years.
Page 2 of 2
February 2, 2009
Mr. Mike Holstein
Vice President and CFO
Midwest ISO
701 City Center Drive
Carmel, Indiana 46032
Dear Mr. Holstein:
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 community. We have enjoyed working with your company and Ginovus 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 ofthe project:
urs trul
im Brainard
Mayor
1. The City of Carmel will provide a ten -year real property tax 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 Carmel 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.
Cc: Members of the Carmel City Council
Larry Gigerioh, Managing Director, Ginovus
1i 0
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CITY =off ARMEL
J_livMES BRAINARD, WI.AYOR
ONE CIVIC SQUARE, CARMEL, IN 46032 OI :I:v:E: 31.7.571.2 301. FAX 3! .8
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