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HomeMy WebLinkAboutCC-12-06-10-01 KAR Auction Services, LLC 10 Year Tax Abatement (Personal Property)Sponsors? Councilors.Carter, Rider, Sharp, and Snyder RESOLUTION CC- 12- 06 -10 -01 A CONFIRMATORY RESOLUTION "RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, APPROVING A TEN -YEAR (10) PERSONAL PROPERTY TAX ABATEMENT FOR KAR AUCTION SERVICES, INC., AND SUBSIDIARIES, 13085 HAMILTON CROSSING BOULEVARD, CARMEL, INDIANA 46032 WHEREAS, I.C. 6- 1.1- 12.1 -4.5 authorizes partial abatement of personal property taxes attributable to the installation of qualifying new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment; and WHEREAS, LC. 6- 1.1- 12.1 -4.5 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 contained in the Designation Application (as defined in I.C. 6- 1.1- 12.1 -1) has heretofore been filed with the Council by KAR Auction Services, Inc. and subsidiaries "the Company and such information describes the investment in new qualifying information technology/ telecommunications equipment, computer hardware and software at 13085 Hamilton Crossing Boulevard, Carmel, Indiana (the "Site and WHEREAS, on November 15, 2010, the Council did approve declaratory Resolution CC- 11- 15 -10 -01 designating the Site as an Economic Revitalization. Area (ERA) for purposes of providing personal property tax abatement to the Company; and WHEREAS, the Company will continue to occupy this location for its corporate headquarters operations, provided that the Company is able to obtain personal property tax deductions as authorized by I.C. 6 -1.1- 12.1 -4.5; 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, and computer software at the Site; 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 FINDING 2. The Company's proposed use of the site as a corporate headquarters is consistent with the site's existing zoning and represents a superior use for a portion of the building. FINDING 3. The Company's installation of new personal property will result in an addition to the Corridor's overall assessed value. FINDING 4. FINDING 5. FINDING 6. FINDING 7. 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 proposed improvements at the Site by the Company meet 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 249 new FTE's) can be reasonably expected to result from the Company's proposed expansion at the Site. The estimate of the annual salaries (i.e., average of approximately $70,000 per annum) for those individuals who will be employed by the Company can be reasonably expected to result from the Company's proposed expansion at the Site. FINDING 8. The estimate of the cost and assessed value of the new information technology /telecommunications equipment, computer hardware and computer software is reasonable for investment of that type. The Company will continue to be an active corporate citizen. The Company's corporate headquarters in Carmel is consistent with the goals and vision 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 expansion at 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. Sponsors: Councilors Carter, Rider, Sharp, and Snyder NOW, THEREFORE, BE IT RESOLVED THAT, a legal description of the Site has been attached hereto as Exhibit A. BE IT FURTHER RESOLVED THAT, the Site was previously designated as an ERA for purposes of granting personal property tax abatement in support of the new qualifying information technology /telecommunications equipment, computer hardware and computer software. BE IT FURTHER RESOLVED THAT, on December 6` 2010, the Council did hold a public hearing to receive all remonstrances and objections from interested persons, and took final action confirming Resolution. CC- 11- 15 -10 -01 along with the findings and declarations contained therein. 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 and computer software pursuant to I.C. 6- 1.1- 12.1 -4.5 shall be ten (10). BE IT FURTHER RESOLVED THAT, the Council shall have the right to reduce the length of and /or end the ERA and subsequent 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 final approval of the (10) ten -year personal property tax abatement prior to the installation of new qualifying information technology /telecommunications equipment, computer hardware and computer software. 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 -2.5. 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. Sponsors: Councilors Carter, Rider, Sharp, and Snyder PASSED by the Common Council of the City of Carmel, Indiana this Co day of 2010, by a vote of and 0 nays. esiding Officer Jf V. Accetturo ATTEST: Diana L. Cordray, Clerk Treasur Presented by me to caek ATTEST: iana L. Cordray, Clerk -Tre Prepared by: Chad Sweeney, Dire Ginovus 8888 Keystone Crossing Suite 1450 Indianapolis, Indiana 46240 317/8194415 (telephone) 317/844 -4780 (facsimile) Chad r+ ginovus.com (e -mail) COMMON COUNCIL OF THE CITY OF CARMEL g m,„„,-tee Nor' T Richard L. Sharp, President inpore er of Corporate Development surer or of the City of rmel, Indiana, the at I1`.4 1 4 .m. 1 Diana L. Cordray, Clerk -Tr:: Approved by me, the Mayor of the City of Cannel, Indiana th 2010, at r: -P .m. day of day of es Brainard, Mayor Sponsors: Councilors Carter, Rider, Sharp, and Snyder EXHIBIT A A LAND BOUNDARY DESCRIPTION OF THE BUILDING AT 13085 HAMILTON CROSSING BOULEVARD, CARMEL, INDIANA 46032 HAMILTON COUNTY, INDIANA PAGE 1 OF 1 LAND DESCRIPTION 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 to the northerly extension of the eastern right -of -way line of Meridian Corners Boulevard; thence South 00 degrees 25 minutes 34 seconds East 40.00 feet along said northerly extension to the southern right -of -way line of East 131st and the POINT OF BEGINNING of this description: thence North 88 42 minutes 47 seconds East 895.02 feet along said southern right of-way line; thence North 84 degrees 01 minute 56 seconds East 284.81 feet along said southern right -of -way line to the western 145 -foot half right -of -way line of U.S. 31; thence along said western right -of -way line Southerly 243.08 feet along an arc to the left and having a radius of 2,436.83 feet and subtended by a long chord having a bearing of South 12 degrees 46 minutes 17 seconds West and a length of 242.98; thence North 90 degrees 00 minutes 00 seconds West 332.62 feet; thence South 43 degrees 27 minutes 50 seconds West 351.72 feet; thence Northwesterly, and Westerly 160.70 feet along an arc to the left and having a radius of 207.00 feet and subtended by a long chord having a bearing of North 68 degrees 11 minutes 13 seconds West and a length of 156.69 feet; thence North 89 degrees 34 minutes 26 seconds West 401.00 feet; thence North 00 degrees 25 minutes 34 seconds West 446.53 feet to the POINT OF BEGINNING and containing 10.002 acres, more or less. The bearings in this description are based upon the north line of the Southwest Quarter of Section 26, Township 18 North, Range 3 East having a bearing of North 88 degrees 42 minutes 47 seconds East. Subject to all easements, restriction, and rights -of -way of record. Sponsors: Councilors Carter, Rider, Sharp, and Snyder EXHIBIT B NOTICE OF ADOPTION REGARDING THE APPROVAL OF A TEN -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR KAR AUCTION SERVICES, INC., AND SUBSIDIARIES, 13085 HAMILTON CROSSING BOULEVARD, CARMEL, INDIANA 46032 PAGE 1 OF 1 PUBLIC NOTICE OF ADOPTION OF RESOLUTION CC- 12- 06 -10 -01 Notice is hereby given that the Common Council of the City of Carmel, Indiana did on the 15th of November 2010, adopt Resolution CC- 11- 15- 1.0 -01, designating an. Economic Revitalization Area "ERA for KAR Auction Services, Inc. and subsidiaries for its investment at its corporate headquarters facility located at 13085 Hamilton Crossing Boulevard. This Resolution, which affects the following described property located in the City of Carmel, Indiana: 13085 Hamilton Crossing Boulevard, Clay Township, Parcel No. 16 -09- 26- 00- 00- 017.000,as described in Exhibit A of Resolution CC- 11- 15- 1.0 -01 (the Property was adopted following the filing of information by KAR Auction Services, Inc., designating the Property as an ERA for the purpose of securing a (10) ten -year personal property tax abatement pursuant to Indiana Code Section 6- 1.1- 12.1 -4.5 relative to the installation of new qualifying information technology /computer hardware and software- oriented equipment. On the 6th of December, 2010 at 6 p.m. in the Council Chamber Room, located at One Civic Square, Carmel, Indiana, 46032, the Common Council held a public hearing and did receive all remonstrances and objections from interested persons regarding these proceedings and took final action adopting confirmatory Resolution CC- 12- 06 -10 -01 and approving a (10) ten -year personal property tax abatement. A description of the property and a copy of Resolutions CC- 11- 15 -10- 01 and CC- 12- 06 -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. STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R t 1 -06) Prescribed by the Department of Local Government Finance FORM SB -1 I 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). 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. 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(0 and (g)) SECTION 1 Name of taxpayer KAR Auction Services, Inc. and subsidiaries Address of taxpayer (number and street, city state, and ZIP code) 13085 Hamilton Crossing Blvd, Suite 500 Name of contact person Craig Morris, Vice President Tax SECTION 2 Name of designating body COMMON COUNCIL OF THE CITY OF CARMEL Location of property 13085 Hamilton Crossin. Blvd 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) Computer hardware /software and telecommunications equipment SECTION 3 Current number 579 SECTION 4 SECTION 5 :.:SECTION G. Salaries 45,000,000.00 NOTE: Pursuant to IC 6- 1.1- 12.1 -5.1 (d) (2) the COST of the property is confidential. Current values Pius estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of project OCATION'ANDfDESCRIPTION or PROPOSED PROJECT,: Number retained 579 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT MANUFACTURING EQUIPMENT COST MINN Estimated solid waste converted (pounds) ;TAXPAYER INFORMATIO ASSESSED VALUE R 8 D EQUIPMENT COST TAXPAYER CERTIFICATION County Hamilton Manufacturing Equipment R D Equipment Logist Dist Equipment IT Equipment Salaries 45,000,000.00 ASSESSED VALUE COST Telephone number (317) 450 Resolution number (s) DLGF taxing district number ESTIMATED START DATE MIN 12/01/2010 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Number additional 249 LOGIST DIST EQUIPMENT ASSESSED VALUE COST 648,000.00 WASTE CONVERTEDAND OTHER BENEFITS. PROMISED BY THE TAXPAYER COMPLETION DATE 03/01/2015 Salaries 17,430,000.00 IT EQUIPMENT ASSESSED VALUE Estimated hazardous waste converted (pounds) Other benefits: 1 hereby certify that the representations in this statement are true. Date signed (month, day, year) 26/ e) R USE OF BOD We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adojt 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; 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 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 installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for: 1=11 year ❑2 years 3 years 4 years 5 years ❑6 years 7 years 8 years El years ❑10 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. Approved: (signature and pf a Attested by: l ye men n ❑Yes ❑N o ❑Yes D o Yes ❑N o Yes ❑N o For ERA's established prior to July 1, 2000, only a 5 or 10 year schedule may be deducted. Telephone number S 7 -07 4 /L3 Date signed (month. day, year) /c2 pgsignated body C 640 mo n C u n c, I If the designating body limits the time pert ing which an area is an economic revitalization area, it does not limit the length of time a taxpayer is entitled to receive a deducti on to a number ar s designated under IC 6- 1.1- 12.1 -4.5 October 29, 2010 Mr. Craig Morris, Vice President Tax KAR Auction Services, Inc. 13085 Hamilton Crossing Boulevard, Suite 500 Carmel, Indiana 46032 Dear Mr. Morris, V ry truly yours, James Brainard Mayor Cc: Members of the Carmel City Council Larry Gigerich, Managing Director, Ginovus 1 CITY OF CARMEL JAMES BRAINARD, MAYOR The City of Carmel is most pleased to have the opportunity to work with KAR Auction Services, Inc. regarding the proposed location of its AutoVIN subsidiary's new corporate headquarters and expansion of its existing business units in Carmel, 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 KAR Auction Services, Inc. is contemplating a capital investment of approximately $2A5 Million (including lease payments) and the creation of approximately 249 new jobs (average annual salary level of approximately $70,000, plus benefits at total employment) in the city of Carmel by December 31, 2015. In support of the proposed location of the corporate headquarters facility, the City of Carmel makes the following commitments in support of the project: 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 KAR Auction Services, Inc. in support of the proposed project, and; 2. The City of Carmel will provide support for and participate in a public announcement of KAR Auction Services, Inc., 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 Carmel 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 KAR Auction Services, Inc. on this exciting project. We are very pleased that your company is considering the location of its subsidiary's new corporate headquarters facility and expansion of its existing business units 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 (,ivic SQi AIW., CAR,w EL, IN -46O32 OrFIci: 317.57).2401. 1'Ax 117.84- i.3't98