HomeMy WebLinkAboutCC-02-15-10-05 Young at Heart ERA Tax AbatementSponsors: Councilors Carter, Rider, Sharp, and Snyder
RESOLUTION NO. CC- 02- 15 -10 -05
RESOLUTION "RESOLUTION OF THE COMMON COUNCIL OF
THE CITY OF CARMEL, INDIANA DESIGNATING
12800 NORTH MERIDIAN STREET, SUITE 175
AS AN ECONOMIC REVITALIZATION AREA
WHEREAS, I.C. 6- 1.1- 12.1 -4 authorizes partial abatement of personal property taxes
attributable to the installation of new qualifying information technology /telecommunications
equipment, computer hardware, logistics /distribution equipment and computer software; 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 Young at Heart, LLC "the Company and such Designation
Application requests that the real estate located at 12800 North Meridian Street, Suite 175,
Carmel, Indiana and legally described therein (the "Site be designated as an ERA; and
WHEREAS, the Company will lease space for its new corporate headquarters and
distribution facility, provided that the Company is able to obtain 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, computer hardware,
logistics /distribution equipment and computer software in the Company's new corporate
headquarters and distribution facility at 12800 North Meridian Street, Suite 175; 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 is or has become undesirable for normal development due to the
following economic conditions
(a) The Site and building are zoned for and generally suitable for use
as an office development; however, there is lack of demand for
office space in the geographic area where the Site is located due to
the economic conditions currently present (the "Corridor
Page 1 of 6
FINDING 2.
FINDING 3.
FINDING 4.
FINDING 5.
FINDING 6.
FINDING 7.
FINDING 8.
FINDING 9.
FINDING 10.
Sponsors: Councilors Carter, Rider, Sharp, and Snyder
(b) Vacancy rates for office space in the Corridor and an abundance of
sublease opportunities evidence an oversupply of office space in
the Corridor.
The Company's proposed development of a portion of the site as a
corporate headquarters and distribution facility for the Company is
consistent with the site's existing zoning and represents a superior use for
a portion of the building.
The Company's plans to install new personal property will result in an
addition to the Corridor's overall assessed value within an accelerated
time period.
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 116 FTEs) can be reasonably expected to result from the
Company's proposed development of the Site.
The estimate of the annual salaries (i.e., average of approximately $50,000
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 new information
technology /telecommunications equipment, computer hardware,
logistics /distribution equipment and computer software is reasonable for
equipment of that type.
The Company will be an active corporate citizen involved and committed
to the City of Carmel.
The Company's corporate headquarters and distribution facility in Carmel
is consistent with the goals and visions established by the City of Carmel
and the Hamilton County Alliance.
FINDING 11. Other benefits can be reasonably expected to result from the Company's
proposed development of the site and installation of the new personal
property.
FINDING 12. The totality of benefits is sufficient to justify personal property tax
deductions herein described.
Page 2 of 6
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 personal property tax abatement in support of the new corporate
headquarters and distribution facility and the installation of new information
technology /telecommunications equipment, computer hardware, logistics /distribution equipment
and computer software.
BE IT FURTHER RESOLVED THAT, the number of years for which the Company is
entitled to a deduction for investments made in the new information technology/
telecommunications equipment, computer hardware, logistics /distribution equipment and
computer software pursuant to LC. 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 economic revitalization area 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 installation of new information
technology /telecommunications equipment, computer hardware, logistics /distribution equipment
and computer software.
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 1.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.
Page 3 of 6
Sponsors: Councilors Carter, Rider, Sharp, and Snyder
Adopted by the Common Council of the City of Carmel, Indiana this day ofj 0 4
2010, by a vote of 7 ayes and a nays. �U
siding Of
Richard L. Sharp, Pr ide. o
lam
AIM
s
V. Accetturo
Ronald E. Carter
ATTEST:
r I
Diana L. Cordray, Clerk -Trea rerr
Presented by me t• e Mayor of the City of Carmel, Indiana this is day of :-0.-CTu c
2010, at 7:W
Diana L. Cordray, Clerk -Trea er
Approved by me, Mayor of the City of Carmel, Indiana this day of
2010, at .m.
1:05
ATTEST:
Diana L. Cordray, Clerk Treader
Prepared by: Leslie Wagner
Ginovus
8888 Keystone Crossing
Suite 1450
Indianapolis, Indiana 46240
317/819 -4412 (telephone)
317/844 -0888 (facsimile)
Leslie @ginovus.com (e -mail)
COMMON COUNCIL OF THE CITY OF CA
Tempore
evin Rider
W. Eric eid- stick
nyder
ames Brainard, Mayor
Page4of6
Sponsors: Councilors Carter, Rider, Sharp, and Snyder
EXHIBIT A
A LAND BOUNDARY DESCRIPTION OF BUILDING 3
HAMILTON CROSSING WEST, HAMILTON COUNTY, INDIANA
NOVENIBER 14, 1997 AMENDED AUGUST 20, 1998
PAGE 1 OF 1
A part of the Southwest Quarter of Section 26, Township 18 North, Range 3 East,
Hamilton County, Indiana, described as follows: Commencing at the northwest corner of said
quarter section; thence North 88 degrees 42 minutes 47 seconds East 710.01 feet along the north
line of said quarter section; thence South 00 degrees 25 minutes 34 seconds East 1,166.50 feet;
thence Southerly 116.10 feet along an arc to the left and having a radius of 600.00 feet and
subtended by a long chord having a bearing of South 05 degrees 58 minutes 12 seconds East and
a length of 115.92 feet to the northeastern corner of the dedication of public right -of -way for
126 Street, Instrument number 8826758, as shown the Land Title Survey prepared by Paul I.
Cripe, Inc. for Duke Associates, dated December 17, 1986 and last revised. November 8, 1989;
thence along the eastern right -of -way line of said 126 Street the following two (2) courses (1)
Southerly, and Southeasterly 299.23 feet along an arc to the left and having a radius of 600.00
feet and subtended by a long chord having a bearing of South 25 degrees 47 minutes 59 seconds
East and a length of 296.14 feet; (2) South 40 degrees 05 minutes 13 seconds East 453.12 feet
along said right of-way line to the southwestern corner of a proposed. Ingress Egress Easement
shown on the I.L.T.A. Survey prepared by Paul 1. Cripe, Inc., for Duke Associates, dated August
31, 1989 and last revised November 13, 1989 and the POINT OF BEGINNING of this
description: thence along the southeastern and eastern lines of said proposed Ingress- Egress
Easement the following three (3) courses (1) North 49 degrees 54 minutes 47 seconds East 74.95
feet; (2) Northeasterly and Northerly 298.72 feet along an arc to the left and having a radius of
340.00 feet and subtended by a long chord having a bearing of North 24 degrees 44 minutes 36
seconds East and a length of 289.20 feet; (3) North 00 degrees 25 minutes 34 seconds West
199.70 feet to the south line of the proposed Building 4 parcel; thence South 90 degrees 00
minutes 00 seconds East 470.72 feet along said line south line to the western right -of -way line of
U.S. Highway 31; thence South 00 degrees 03 minutes 57 seconds East 912.72 feet along said
western right-of-way line to the northern right -of -way line of said 126` Street; thence along the
northern and northeastern right-of-way line of said 126 Street the following three (3) courses
(1) South 89 degrees 54 minutes 47 seconds West 30.04 feet; (2) Westerly, and Northwesterly
523.60 feet along an arc to the right and having a radius of 600.00 feet and subtended by a long
chord having a bearing of North 65 degrees 05 minutes 14 seconds West and a length of 507.15
feet; (3) North 40 degrees 05 minutes 13 seconds West 246.42 feet to the point of beginning and
containing 10.071 acres, more or less. The bearings in this description are based upon the north
line of the southwest Quarter of Section 26 having a bearing of North 88 degrees 42 minutes 47
seconds East. Subject to all easements, restrictions and rights-of-way of legal record.
Page 5 of 6
Sponsors: Councilors Carter, Rider, Sharp, and Snyder
EXHIBIT B
NOTICE OF ADOPTION REGARDING THE APPROVAL OF A
TEN -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
YOUNG AT HEART'S DISTRIBUTION FACILITY LOCATED AT
12800 NORTH MERIDIAN STREET, SUITE 175, CARMEL, INDIANA
DATE
PAGE 1 OF 1
PUBLIC NOTICE OF ADOPTION OF RESOLUTION CC- 03- 01 -10 -01
Notice is hereby given that the Common Council of the City of Carmel, Indiana did on
2010 adopt Resolution CC- 02- 15 -10 -05 to designate an Economic Revitalization Area "ERA
for Young at Heart for its investment in its new corporate headquarters and distribution facility.
This Resolution, which affects the following described property located in the City of Carmel,
Indiana: 12800 North Meridian Street, Suite 175, Hamilton County as described in Exhibit A of
Resolution CC- 02- 15 -10 -05 "the Property was adopted following the filing of information by
Young at Heart 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 of 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- 15 -10 -05 are available for inspection in the Hamilton County Assessor's Office,
Suite 214, 33 North 9 Street, Noblesville, Indiana 46060.
For additional information on the project, contact Larry Gigerich, Managing Director, Ginovus
317 -819 -0890.
Page 6 of 6
SECTION I. TAXPAYER
Name of taxpayer
Flywheel Healthcare, LLC, d /b /a•Young at Heart
INFORMATFQN k
Address of taxpayer (number and street, city state. and ZIP code)
12800 North Meridian Street, Suite 175, Carmel, Indiana 46032
Name of contact person
Erik Young
Telephone, number
(8666} 308 -4990
SECTION 2, i :LOCATION, AND OESCRIPTiON OF PROPOSED PROJECT
Name of designating body
City of Carmel
Resolution number (s)
CC 02- 15 -10 -05
Location of property
12800 North Meridian Street, Suite 175, Carmel, Indiana 46032
County
Hamilton
OLGF taxing district number
18
Description of manufacturing equipment and/or research
and/or logistical distribution equipment and/or information
(use additional sheets if necessary)
Young at Heart.plans capital investment
manufacturing and iT equipment to
headquarters and pharmaceutical distribution
SECTION 3, ESTIi O EMPLOYEES
Current number Salaries
2 138,236.80
and development equipmell
technology equipment.
of $890,000
support its new
facility.
AND SAL'ARIES;AS
Number retained
2
in
RESULT'
Salaries
138,236,80.
OF'PROPOSED
R D EQUIPMENT
ESTIMATED
START DA
COMPLETION DATE
Manufacturing Equipment
03/02/2010
12/31 /2015
R D Equipment
Logist Dist Equipment
03/02/2010
12/31/2015
IT Equipment
PROJECT
Number additional
116
03 /02/2010
Sala
5,800,000.00
12/31/2015
ies
OF PROPOSED
,,,,.n PROJECT
SECTION 4 ESTIMATED
NOTE: Pursuant to IC 6 -1.�- 12,1 -5.1 (i7) (2) the
COST of the property is confidential.
TOTAL COSTAND.VALUE
r
MANUFACTURING
EQUIPMENT
LOGIST DIST. IT EQUIPMENT
EQUIPMENT
i COST I ASSESSED COST ASSESSED COST
I VALUE VALUE
ASSESSED
VALUE
COST
ASSESSED
VALUE
Current values
i
Plus estimated values of proposed project
j
1 546,635.00
555.255.00
Less values of any prdpertybeing replaced
Net estimated. values upon completion of project 1
SECTION 5 WASTE,CONVERTErD AND OTHER BENEFITS.PROMISED`BY
Estimated solid waste converted (pounds} 000
THE
Estimated hazardous waste
TAXPAYER
converted (pounds) 0.00
Other benefits:
6-
TAXPRYER:CERTIFICA
hereby certify that the representations in this statement are true.
Signatu a otauth tied representative, Title
I CEO
Date Signed' day year)
SM 15 i 2.010
iNS TRUCTIONS:
1.
STATEMENT OF BENEFITS
PERSONAL PROPERTY
State Form 51764 (R`i 1.06)
Prescribed by the Department of Local Government Finance
FORM SB -1 1 PP
PRIVACY NOTICE
The cost and any seecific individuars I
salary iiifomiation is confidential; the
balance of the fling is public record
per IC 5-1.1-12:1-5 (c) and (d).
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 theapplicant7n making its decision about whether to designate an "Economic Revitalization Area. Otherwise this Statement musl be submitted
to' the designating body BEFORE a person installs the new manufacturing equipment and /or rosearchi'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 Beard, County Council: etc.) must be obtained prior to installation of the new manufacturing equipment
and /or research and development equipment and/or logistical distribution equipment and` or information 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 -ERA must be Lie filed 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 beer. obtained. A person who obtains a filing extension must
The 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 compliance with the
Statement of Benefits: (1C.6- 1.1- 12.1 -5.6)
5. The schedulesestoblished under IC 6- 1.1- 12.1-4.5(d) and (e) apply, to equipment installed after March 1, 2001. For equipment installed prior to March 2,
2001, the schedules and' statutes in effect`ai.the time shall continue to apply. (IC 6- 1.1- 12.145(0 and (g))
F OR:USE =OF THE DESIGNATING BODY
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 resolutiompreviously approved by this body. Said resolution, passed under IC 6- 1.1- 12.1 -2.5. provides for the following limitations as
authorized under IC 6-1.1- 12.1 -2.
A designated arca has been limited to a period of time not to exceed calendar years (see be /ow). The date this designation expires
is
B The type of deduction that is afowed, in the designated area is limited to:
1. Installation of new manufacturing equipment;
2. Installation of new research and development equipment;
3. Installation of new logistical distributionequipritent.
4. Installation of new information technology equipment:
C. The amount of deduction applicable to new manufacturing equipment is limited to cost with an assessed value of
D. The amount of deduction applicable to new research and development equipment is limited to 6 cost
with an assessed. value of
E The amount of deduction applicable to new logistical distribution equipment is limited to cost with an assessed value of
F. The amount of deduction applicable to new information technology equipment is limited to cost with an assessed value of
G Other limitations or conditions (specify)
H. The deduction for new manufacturing equipment and /or new research and development equipment and /or nein logistical distribution equipment and/or
new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for
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 justify the deduction described above.
Approved: (signature and title of authorized member)
Attested by:
t year
02 years
3 years
04 years
5 years
I=16 years
07 years
8 years
9 years
10 years
Oyes ON
['Yes ❑No
❑Yes ❑No
['Yes ON e
For ERA's established prior to Juty 1. 2000, only a
5 or 10 year schedule may be deducted.
Telephone number Date signed (month. day. Year)
Designated body
If the designating body limits the time period.durtng 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 -1.1- 12.1 -4.5
J 8 9
f 0
Ci rr OF CA .EL
November 5, 2009 JAMES BRAI1ARD, MAYOR
Mr. Bany Hart
Co- Founder
Young at Heart
3705 Power -Drive
Carmel, Indiana 46033
Dear Mr. Hart:
V ry truly yours,
Jim. Brainard
Mayor
cc: Members of the Carurel City Council
Diana Cordray, Clerk Treasurer
Larry Gigerich, Managing Director, Ginovus
The City of Carmel is most pleased to have the opportunity to work with Young at Heart, LLC, regarding the
proposed location of its new life sciences corporate headquarters facility in Carmel, Indiana. We have enjoyed
working with your consultant, Ginovus, to identify the most meaningfitl ways we can assist with your proposed
project.
It is our understanding that Young at Heart, LLC is contemplating a capital investment of approximately $1 Million
and the creation of approximately 116 new jobs (average annual salary level of approximately $50,000, plus benefits
at total employment) in the city of Carmel by December 31, 2015, In support of the proposed location of your new
life sciences corporate headquarters facility, the City of Carmel makes the following commitments in support of the
project:
The City of Carmel will provide a ten -year personal property tax abatement in support of the
company's capital investment eligible for the tax abatement program made by Young at Heart in
support of the proposed new corporate headquarters facility, and;
2. The City of Carmel will provide support for and participate in a public announcement. of Young at
Heart's proposed new corporate headquarters facility, should Carmel be selected for the .project.
Please note that final approval is required from the Carmel City Council for property tax abatement, The City of
Cannel will provide you and Ginovus with all necessary technical assistance throughout the approval process.
The City of Carmel greatly appreciates the opportunity to work with Young at Heart, LLC. We are very pleased that
your company is considering the location of its new life sciences 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.
ONE CIVIC: SQUARE, CARmEt., I\ 4603 2 OFFIcF 317.571.2401 FAX 317.844.3498
EMAIL jbrainard@earmel.in.gov