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HomeMy WebLinkAboutCC-05-03-10-01 GEMMS, Inc. 10 Year PP Tax AbatementWHEREAS, 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, research and development equipment and computer software; and Sponsors: Councilors Carter, Rider, Sharp and Snyder RESOLUTION CC- 05- 03 -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 GEMMS, Inc., 201 WEST 103 STREET, SUITE 140, INDIANAPOLIS, INDIANA 46290 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 personal property tax abatement for new qualifying information technology /telecommunications equipment, computer hardware, research and development equipment and computer software; and WHEREAS, information (as defined in T.C. 6 -1.1- 12.1 -1) has been provided to and heretofore been filed with the Council by GEMMS, Inc. "the Company and such information describes the investment in new qualifying information technology/ telecommunications equipment, computer hardware, research and development equipment and computer software at 201 West 103 Street, Suite 140, Indianapolis, Indiana; and WHEREAS, the site located at 201 West 103 Street, Suite 140 "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 expanded corporate headquarters and research and development 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, research and development 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 (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. FINDING 3. 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 Company's proposed redevelopment of a portion of the site as a corporate headquarters and research development 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 redevelopment 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 re- 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 FTE's) can be reasonably expected to result from the Company's proposed expansion of the Site. The estimate of the annual salaries (i.e., average of approximately $72,000 per annum) for those individuals who will be employed by the Company can be reasonably expected to result from the Company's proposed expansion of the Site. The estimate of the cost and assessed value of the new information technology /telecommunications equipment, computer hardware, research and development equipment and computer software is reasonable for investment 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 research and development 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 re- development of the Site and installation of personal property. The totality of benefits is sufficient to justify personal 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 personal property tax abatement in support of the new qualifying information technology /telecommunications equipment, computer hardware, research and development 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, research and development 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 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, research and development 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 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. r PASSED by the Common Council of the City of Carmel, Indiana this 3 day of Richard'L. Sharp, Pre deyPro Tempore n V John'V. Accetturo Ronald E. Carter ATTES Diana L. Cordray, Clerk -Tr e Mayor of the City of Carmel, Indiana, the 5 day of Y' ,.2010, at./3:59 .m. Approved by me, the Mayor of the City of Carmel, Indiana this V day of 2010, at O .m. ATTEST: Diana L. Cordray, Clerk -Tre 2010, by a vote of '"7 and nays. COMMON COUNCIL OF THE CITY OF CARMEL W. Eric der es 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 -4780 (facsimile) Leslie(a),ginovus.com (e -mail) Sponsors: Councilors Carter, Rider, Sharp and Snyder q rll 'F� s AMA/ IIIN Josep C evin Rider e Lam% v ticl eid nsticke_. Diana .Cordray, le Treasurer Parcel A Part of the Southwest Quarter of Section 11, Township 17 North, Range 3 East in Hamilton County, Indiana, being more particularly described as follows: Commencing at a stone marking the Northwest comer of said Quarter Section; thence South 00 degrees 03 minutes 10 seconds West (Assumed Bearing) along the West line of said Quarter Section a distance of 752.12 feet to a P.K nail; thence South 89 degrees 56 minutes 50 seconds East a distance of 35.00 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp." and the East right of way line for Spring Mill Road per plans for I.S.H.C. Project No. 1- 465- 4 -(94) -130 dated 1965, Sheet No. 42 (the next two (2) described courses being along the said East right of way line); thence South 02 degrees 30 minutes 12 seconds East a distance of 112.11 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp."; thence South 02 degrees 48 minutes 30 seconds East a distance fo 136.34 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp. thence North 89 degrees 06 minutes 10 seconds East, parallel with the North line of the said Quarter Section, a distance of 200.01 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp." and the Beginning Point; thence North 00 degrees 03 minutes 10 seconds East parallel with the said West line, a distance of 257.32 feet to a curve having a radius of 230.00 feet, the radius point of which bears North 04 degrees 51 minutes 55 seconds West; thence Northeasterly along the arc of said curve a distance of 283.53 feet to the point of reverse curvature of a curve having a radius of 1185.00 feet, the radius point of which bears South 75 degrees 29 minutes 42 seconds East; thence Northerly along the arc of said curve a distance of 170.27 feet to a point which bears North 67 degrees 15 minutes 45 seconds West from said radius point; thence North 22 degrees 44 minutes 15 seconds East a distance of 72.34 feet to a curve having a radius of 40.00 feet, the radius point of which bears South 67 degrees 15 minutes 45 seconds East; thence Easterly along the arc of said curve a distance of 62.83 feet to a point which bears North 22 degrees 44 minutes 15 seconds East from said radius point; thence South 67 degrees 15 minutes 45 seconds East a distance of 23.80 feet to a curve having a radius of 330.00 feet, the radius point of which bears North 22 degrees 44 minutes 15 seconds East; thence Easterly along the arc of said curve a distance of 130.96 feet to a point which bears South 00 degrees 00 minutes 00 seconds East from said radius point; thence North 90 degrees 00 minutes 00 seconds East a distance of 153.48 feet to a P.K Nail; thence South 10 degrees 00 minutes 00 seconds West a distance of 301.69 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp"; thence North 89 degrees 06 minutes 10 seconds East, parallel with the said North line, a distance of 148.04 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp.' thence South 00 degrees 03 minutes 10 seconds West, parallel with the said West line, a distance of 337.08 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp thence South 89 degrees 06 minutes 10 seconds West, parallel with the said North line, a distance of 736.38 feet to the Beginning Point. Parcel B Sponsors: Councilors Carter, Rider, Sharp and Snyder EXHIBIT A A LAND BOUNDARY DESCRIPTION OF THE BUILDING AT 201 WEST 103 STREET, SUITE 140, INDIANAPOLIS, INDIANA 46290 PAGE 1 OF 1 LAND DESCRIPTION Part of the Southwest Quarter of Section 11, Township 17 North, Range 3 East in Hamilton County, Indiana, being more particularly described as follows: Commencing at a stone marking the Northwest Comer of said Quarter Section; thence South 00 degrees 03 minutes 10 seconds West (assumed bearing) along the West line of said Quarter Section a distance of 732.50 feet to a P.K. Nail and the Beginning Point; thence continue South 00 degrees 03 minutes 10 seconds West along the said West line a distance of 19.62 feet to a P.K. Nail; thence South 89 degrees 56 minutes 50 seconds East a distance of 35.00 feet to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp" and the East right of way line for Spring Mill Road per plans for I.S.H.C. Project No. 1- 465- 4 -(94) -130 dated 1965, Sheet No. 42 (the Sponsors: Councilors Carter, Rider, Sharp and Snyder EXHIBIT A A Land Boundary Description Of The Building At 201 West 103 Street, Suite 140, Indianapolis, Indiana 46290 Hamilton County, Indiana PAGE 2 OF 2 next two (2) described courses being along the said East right of way line); thence South 02 degrees 30 minutes 12 seconds East a distance of 112.11 feet to a 5/8 inch saber with yellow cap marked "Schneider Engr. Corp"; thence South 02 degrees 48 minutes 30 seconds East a distance of 136.34 feet to a 5/8 inch rebar with yellow cap marked 'Schneider Engr. Corp thence North 89 decrees 06 minutes 10 seconds East, parallel with the North line of the said Quarter Section, a distance of 200.01 feat to a 5/8 inch rebar with yellow cap marked "Schneider Engr. Corp thence North 00 degrees 03 minutes 10 seconds East, parallel with the said West line, a distance of 257.32 feet to a curve having a radius of 230.00 feet the radius point of which bears North 04 degrees 51 minutes 55 seconds West, thence Northeasterly along the arc of said curve a distance of 283.53 feet to the point of reverse curvature of a curve having a radius of 1185.00 feet, the radius point of which bears South 75 degrees 29 minutes 42 seconds East; thence Northerly along the arc of said curve a distance of 170.27 feet to a point which bears North 67 degrees 15 minutes 45 seconds West from said radius point thence North 22 degrees 44 minutes 15 seconds East a distance'of 72.34 feet to a curve having a radius of 40.00 feet, the radius point of which bears South 67 degrees 15 minutes 45 seconds East; thence Easterly along the arc of said curve a distance of 62.83 feet to a point which bears North 22 degrees 44 minutes 15 seconds East from said radius point thence South 67 degrees 15 minutes 45 seconds East a distance of 23.80 feet to a curve having a radius of 330.00 feet, the radius point of which bears North 22 degrees 44 minutes 15 seconds East thence Easterly along the arc of said curve a distance of 130.96 feet to a point which beam South 00 degrees 00 minutes 00 seconds East from said radius point; thence North 90 degrees 00 minutes 00 seconds East a distance of 153.48 feet to a P.K. Nail; thence North 00 degrees 00 minutes 00 seconds East a distance of 15.00 feet to a P.K. Nail; thence South 90 degrees 00 minutes 00 seconds West a distance of. 153.48 feet to a P.K. Nail and a curve having a radius of 315.00 feet, the radius point of which bears North 00 degrees 00 mimeos 00 seconds East; thence Westerly along the arc of said curve a distance of 125.01 feet to a P.K. Nail which bears South 22 degrees 44 minutes 15 seconds West from said radius point; thence North 67 degrees 15 minutes 45 seconds West a distance of 78.80 feet to a P.K. Nail; thence South 22 degrees 44 minutes 15 seconds West a distance of 127.34 feet to a P.K Nail and a curve having a radius of 1200.00 feet, the radius point of which bears South 67 degrees 15 minutes 45 seconds East; thence Southerly along the arc of said curve a distance of 171.98 feet to P.K. Nail and the point of reverse curvature of a curve having a radius of 225.00 feet, the radius point of which bears North 75 degrees 28 minutes 27 seconds West; thence Southwesterly along the arc of said curve a distance of 296.59 feet to a P.K. Nail; which bears South 00 degrees 03 minutes 10 seconds West from said radius point; thence North 89 degrees 56 minutes 50 seconds West a distance of 217.52 feet to the Beginning Point. EXCEPTING THEREFROM: That real estate conveyed by H.R.B. Associates, LP., to The Board of Commissioners of Hamilton County, Indiana by Warranty Deed dated December 27, 1994 and recorded October 12, 1995 as Instrument No. 95 -55912 on the Office of the Recorder of Hamilton County, Indiana. ALSO EXCEPTING: That real assets conveyed by H.R.B. Associates, LP. to Meridian 465 Associates, LP. by Warranty Deed dated December 27, 1994, and recorded October 12, 1995, as Instrument No. 05- 55913, in the Office of the Recorder of Hamilton Carey, Indiana. Sponsors: Councilors Carter, Rider, Sharp and Snyder EXHIBIT B NOTICE OF ADOPTION REGARDING THE APPROVAL OF A TEN -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR GEMMS, Ins.'s CORPORATE HEADQUARTERS AND RESEARCH AND DEVELOPMENT FACILITY LOCATED AT 201 W. 103' STREET, SUITE 140, INDIANAPOLIS, INDIANA 46290 PAGE 1 OF I PUBLIC NOTICE OF ADOPTION OF RESOLUTION CC- 05- 03 -10 -01 Notice is hereby given that the Common Council of the City of Cali rel, Indiana did on the 19th of April, 2010 adopt Resolution CC-04-19-10-01 to designate an Economic Revitalization Area "ERA for GEMMS, Inc. for its investment in expanding its corporate headquarters and research.and.development facility located at 201 W. 103 Street, Suite 140. This Resolution, which affects the following described property located in the City of Carmel, Indiana: 201 W. 103 Street, Suite 140, Clay Township, as described in Exhibit A of Resolution CC- 04- 19 -10 -01 (the Property was adopted following the filing of information by GEMMS, 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 installation of new qualifying information technology /computer hardware, software oriented equipment and research and development equipment. On the 3rd of May, 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- 04- 19 -10 -01 are available for inspection in the Hamilton County Assessor's Office, North 9` Street, Suite 214, Noblesville, Indiana 46060. For additional information on the project, contact Larry Gigerich, Managing Director, Ginovus, 317 -819 -0890. INSTRUCTIONS: 1. STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R 1 06) Prescribed by the Department of Local Government Finance 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). 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. 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. (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(f) and (g)) ECTION:1, Name of contact person Rodger Pinto SECTION 2 Name of designating body Carmel City Council Location of property 201 West 103rd Street, Suite 140, Indianapolis, Indiana 46290 Description of manufacturing equipment and /or research and development equipment and /or logistical distribution equipment and /or information technology equipment. (use additional sheets if necessary) GEMMS plans capital investment of $279,500 in new IT/ technology and computer equipment that meets the needs of their innovative cardiology specialty company. SECTION 3 Current number 40 SECTION ac pr ,SECTION 5 SECTION: ESTIMATE OF E i4iPLOYEES;ANo sigj iiiE AS RESULT'OF PRO■OSED`P,ROJECT Salaries 2,882,880.00 NOTE: Pursuant to IC 6 -1.1- 12.1 -5.1 (d) (2) the COST of the property is confidential. Current values Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of project Estimated solid waste converted (pounds) TAXPAYER INFORMATION: CATION AND DESCRIP OF P.FIOP PROJECT Number retained 40 STIMATED TOTAL AN,D;VALUE OF PROPOSED PROJECT MANUFACTURING EQUIPMENT COST ASSESSED VALUE R D EQUIPMENT COST WASTE CONVERTED AND P pTH E R BENEFITS,PROMISD BYTHE,TAXPAYER" TAXPAYER CERTIFICATION'` Name of taxpayer GEMMS, Inc. Address of taxpayer (number and street, city, state, and ZIP code) 201 West 103rd Street, Suite 140, Indianapolis, Indiana 46290 County Hamilton Manufacturing Equipment R D Equipment Logist Dist Equipment IT Equipment Salaries 2,882,880.00 ASSESSED VALUE Telephone number (317) 819 Resolution number (s) DLGF taxing district number 29 -003 ESTIMATED START DATE 03/01/2010 Number additional 69 LOGIST DIST EQUIPMENT COST ASSESSED VALUE COST 279,500.00 COMPLETION DATE 12/31/2014 Salaries 4,968,000.00 IT EQUIPMENT ASSESSED VALUE Estimated hazardous waste converted (pounds) Other benefits: I hereby certify that the representations in this statement are true. Signature of authorized r prese ntativ FOR'USE OF THE`DESIGNATING 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 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; Eves ❑No Yes ON o EYes ❑N o ❑Yes ❑N o C. The amount of deduction applicable to new manufacturing equipment is limited to D. The amount of deduction applicable to new research and development equipment is limited to with an assessed value of calendar years* (see below). The date this designation expires G. Other limitations or conditions (specify) 1 year ❑6 years For ERA's established prior to July 1, 2000, only a 2 years El years 5 or 10 year schedule may be deducted. 3 years 8 years El years 9 years 5 years 10 years** Approved: (signature title of au t rized tuber) Attested by: Telephone number 7/- 24'/ 3 cost with an assessed value of cost 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 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 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. Date sign (month, day, year) 573/ 6 Designated body /Y1 /Y1 If the designating body limits the time period Fg 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 .rs designated under IC 6 -1.1- 12.1 -4.5