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HomeMy WebLinkAboutCC-03-01-10-01 Young at Heart 10 Year Tax Abatement (Personal Property)Sponsors: Councilors Carter, Rider, Sharp and Snyder RESOLUTION CC- 03- O1 -10 -01 A RESOLUTION "RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, APPROVING A TEN -YEAR (10) PERSONAL PROPERTY TAX ABATEMENT FOR YOUNG AT HEART LOCATED AT 12800 NORTH MERIDIAN STREET, SUITE 175, CARMEL, INDIANA 46032 WHEREAS, L.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, LC. 6- 1.1- 12.1 -4 empowers the Common Council of the City of Carmel, Indiana (the "Council to grant approval for personal property tax abatement for new qualifying information technology /telecommunications equipment, computer hardware, logistics /distribution equipment and computer software; 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 Young at Heart, LLC "the Company and such information describes the investment in new qualifying information technology/ telecommunications equipment, computer hardware, logistics /distribution equipment and computer software at 12800 North Meridian Street, Suite 175, Carmel, Indiana; and WHEREAS, the site located at 12800 North Meridian Street, Suite 175 "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 -4); 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 made in new qualifying information technology /telecommunications equipment, computer hardware, logistics /distribution equipment and computer software; 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 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 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. FINDING 2. 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. FINDING 3. 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. 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. FINDING 5. The estimate of the cost and assessed value of the Company's proposed development of the Site is reasonable for projects ofa similar nature. FINDING 6. 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. FINDING 7. 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. FINDING 8. 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. FINDING 9. The Company will be an active corporate citizen involved and committed to the City of Carmel. FINDING 10. 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. NOW, THEREFORE, BE IT RESOLVED THAT, a legal description of the previously declared ERA designation has been attached hereto as Exhibit A. Page 2 of 6 Sponsors: Councilors Carter, Rider, Sharp and Snyder BE IT FURTHER RESOLVED THAT, the Site was previously declared as an ERA for purposes of granting personal property tax abatement in support of the new qualifying 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 qualifying information technology /telecommunications equipment, computer hardware, logistics /distribution equipment and computer software 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 personal 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 contingent upon the approval of ten -year personal property tax abatement prior to the installation of new qualifying 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 LC. 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. Page 3of6 Sponsors: Councilors Carter, Rider, Sharp and Snyder PASSED by the Common Council of the City of Carmel, Indiana this day of fl o. C 2010, by a vote of r--. and C7 nays. onald E. Carter AT ST: ATTEST: COMMON COUNCIL OF THE CITY OF C RM La ;r r a, oramiA' AIM f, C. riffiths sident Pro Tempore Diana L. Cordray, Clerk Treasu Lucy nyder Presented by me to the Mayor of the City of Carmel, Indiana, the 1 S+ day of n oon. 2010, at 8 3 0 P .m. Lh• J 4 Approved by me, the Mayor of the City of Carmel, Indiana this ��I�Cff 200/, at Wit- Diana L. Cordray, Clerk- Treasurer ames Brainard, Mayor Prepared by: Leslie Wagner, Director of Project Management and Development Ginovus 8888 Keystone Crossing Suite 1450 Indianapolis, Indiana 46240 317/819 -4412 (telephone) 317/844 -0888 (facsimile) Leslie @ginovus.com (e -mail) Kevin Rider W. Eri Seide sticke Diana L. Cordray, Clerk Treasurer day of Page 4 of 6 Sponsors: Councilors Carter, Rider, Sharp and Snyder EXHIBIT A A LAND BOUNDARY DESCRIPTION OF BUILDING 3 HAMILTON CROSSING WEST, HAMILTON COUNTY, INDIANA NOVEMBER 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 I. 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 6 317 -819 -0890. 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 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 February 15, 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 1st of March, 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 9th Street, Noblesville, Indiana 46060. For additional information on the project, contact Larry Gigerich, Managing Director, Ginovus Page 6 of 6 STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R 1 1 -06) Prescribed by the Department of Local Government Finance 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 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 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 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 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, Properly 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. (iC 6 -1.1- 12.1 -5.6) 5. The schedules established 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 at the time shall continue to apply (IC 6- 1.1- 12.1- 4.5(0 and (g)) I EGTION TAXPAYER ,I NFORMATION Name of taxpayer Flywheel Healthcare, LLC, d /b /a Young at Heart SECTION 4 ESTIMATE OF EMPLOYEES` AND `SALARIES AS RESULT' OF PROPOSED PROJECF LOCATION AND DESCRIPTION OFPROPOSED.PROJEGTf County Hamilton STI MATED TOTAL, AND 3VALUE OF PROPOSEDPROJ EC R D EQUIPMENT ASSESSED VALUE Manufacturing Equipment R D Equiprnen( Logist Dist Equipment IT Equipment 546,635 WASTE; CONVERTED; AND OTHER"BENEFITS;PRoMISEDiBY Tf E TAXPAYER START DATE 03/02/2010 03/02/2010 03/02/2010 LOGIST DIST EQUIPMENT ASSESSED VALUE 555,255.00 Current values Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of projec �SCTION Salaries Number retained 138,236.80 2 MANUFACTURING EQUIPMENT ASSESSED VALUE Telephone number (866) 308 -4990 Resolution number (s) CC 02- 15 -10 -05 DLGF taxing district number 18 Estimated hazardous waste converted (pounds) 0.00 ESTIMATED COMPLETION DATE 12/31/2015 12/31/2015 12/31/2015 Salaries 5,800,000.00 IT EQUIPMENT 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 SECTt ©N 2� t Name of designating body City of Carmel Location of property 12800 North Meridian Street, Suite 175, Carmel, Indiana 46032 Description of manufacturing equipment and/or research and development equipme 1t and /or logistical distribution equipment and /or information technology equipment. (use additional sheets if necessary) Young at Heart plans capital investment of $890,000 in manufacturing and IT equipment to support its new headquarters and pharmaceutical distribution facility. Current number 2 NOTE: Pursuant to IC 6- 1.1- 12.1 -5.1 (d) (2) the COST of the property is confidential. Estimated solid waste converted (pounds) 0.00 Other benefits: Signatu a of, Guth ized representative i hereby certify that the representations in this statement are true. Title CEO FORM SB -1 1 PP PRIVACY NOTICE The cost and any specific individual's salary information is confidential; the balance of the filing is public record per IC 6 -1.1- 12.1 -5.1 (c) and (d). SECTION 6 t TAXPAYER CERTWICATIONM Date signed (month. day year) 5 At0 t 1 2-010 ASSESSED VALUE R.USE 0E7HEZDESIG;NA4TINGrBODY 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 -2.5, provides for the following limitations 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 below). The date this designation expires is B The type of deduction that is allowed 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 distribution equipment. 4. Installation of new information technology equipment; Yes ON o Yes ON o E Yes ON o Yes ON o 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 S 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 new logistical distribution equipment and/or new information technology equipment instated and first claimed eligible for deduction on or after July 1, 2000, is allowed for: 1 year 2 years 3 years D years 5 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 justify the deduction described above. 6 years O years ❑S years 9 years 0 1 years" For ERA's established prior to July 1, 2000, only a 5 or 10 year schedule may be deducted. Telephone number 3/7-57/-0V/ 3 Approved: (sig Attested b orized member) Designated body rn m o n Date sign pd (moryh. day. year) nc t�� *If the designating body limits the time period during hich 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 ye s esignated under IC 6 -1.1- 12.1 -4.5 November 5, 2009 Mr. Barry Hart Co-Founder Young at Heart 3705 Power Drive Carmel, Indiana 46033 Dear Mr. Hart: 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 Cannel, Indiana. We have enjoyed working with your consultant, Ginovus, to identify the most meaningful 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 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: 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. c c: Members of the Carmel City Couneii Diana Cordray, Clerk: Treasurer Larry Gigerich, Managing Director, Ginovus r` lij J 8 8. 9 CITY F= 1 JAMES BRAINARD, MAYOR 1. 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; ONE CIVIC SQUAiII, CARREL, IN 46032 OFFICE 317.571.2401. FAX 317 844.3498 EMAIL. jbrainardticeirmel.in. ov