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HomeMy WebLinkAboutCC-03-21-11-02 Meridian Medical Partners Two, LLC 10 Year RE Tax AbatementSponsors: Councilors Carter, Rider, Sharp and Snyder RESOLUTION CC- 03- 21 -11 -02 A CONFIMATORY RESOLUTION "RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, APPROVING A TEN -YEAR (10) REAL PROPERTY TAX ABATEMENT FOR MERIDIAN MEDICAL PARTNERS TWO, LLC AND FRANCISCAN ALLIANCE, INC., F /KIA/ SISTERS OF ST. FRANCIS HEALTH SERVICES, INC. LOCATED AT 12188B NORTH MERIDIAN STREET, CARMEL, IN 46032 WHEREAS, I.C. 6 -1.1- 12.1 -4 authorizes partial abatement of real property taxes attributable to improvements made to real estate; and WHEREAS, I.C. 6- 1.1- 12.1 -4 empowers the Common Council of the City of Carmel, Indiana (the "Council to grant approval for real property tax abatement for the qualifying investments made in connection with real estate improvements; and WHEREAS, information contained in the designation application (as defined in. I.C. 6- 1.1- 12.1 -1) has hereto been filed with the Council by Meridian Medical Partners Two, LLC and Franciscan Alliance, Inc., F /K/A/ Sisters of St. Francis Health Services, Inc (collectively, the "Company and such information describes the investment in qualifying real estate improvements at the Company's short -stay medical center to be located at 12188B North Meridian Street, Carmel, Indiana (the "Site and WHEREAS, on March 7, 2011 the Council did approve declaratory Resolution CC -03- 07-11-03 designating the site as an Economic Revitalization Area "ERA for purposes of providing real property tax abatement to the Company; and WHEREAS, the Company will make real property improvements in support of its short stay medical center, provided that the Company is able to obtain real property tax deductions as authorized by I.C. 6- 1.1- 12.1 -4; and WHEREAS, the Company seeks to have the Council authorize real property tax deductions in connection with the qualifying investment in real estate improvements; and WHEREAS, the Council has reviewed such information together with the Company's Statement of Benefits (Form SB -1) and now desires to take actions hereinafter set forth. NOW, THEREFORE, based upon a review of the information provided together with the Statement of Benefits (Form SB -1) heretofore filed by the Company, the Council hereby makes the following findings: FINDING 1. The Site has been undesirable for normal development due to the following economic conditions: (a) The Site and building are zoned for and generally suitable for use as a medical office development; however, there is a low demand for Sponsors: Councilors Carter, Rider, Sharp and Snyder medical office space in the geographic area where the Site (the "Corridor") is located due to the economic conditions currently present. (b) Vacancy rates for medical office space in the area and an abundance of sublease opportunities evidence an oversupply of medical office space in the Corridor. FINDING 2. The Company's proposed use of the Site as a medical office space is consistent with the Site's existing zoning and represents an enhanced use for the Site. FINDING 3. The Company plans to make real estate improvements that will result in an addition to the Corridor's overall assessed value within an accelerated time period. FINDING 4. The proposed improvement at 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 of a similar nature. FINDING 6. The estimate of the number of individuals who will be employed (i.e., approximately 76 new FTEs) can be reasonably expected to result from the Company's proposed improvement of the Site. FINDING 7. The estimate of the annual salaries (i.e., average of approximately $75,000 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 real estate improvements is reasonable for a project of this type. FINDING 9. The Company will be an active corporate citizen involved in and committed to the City of Carmel. FINDING 10. The Company's short-stay medical center 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 investment in real estate improvements at the Site. FINDING 12. The totality of benefits is sufficient to justify real property tax deductions herein described. Sponsors: Councilors Carter, Rider, Sharp and Snyder NOW, THEREFORE, BE IT RESOLVED THAT, a legal description of the 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 real property tax abatement in support of real estate improvements. BE IT FURTHER RESOLVED THAT, on March 21, 2011, the Council did hold a public hearing to receive all remonstrances and objections from interested persons, and took final action confirming Resolution CC- 03- 07 -11 -03 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 real estate improvements 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 ERA and subsequent real property tax abatement granted for the Site should the Company and /or a subsequent owner of the Company not fulfill commitments made to the City of Carmel regarding the amount of capital investment, job creation /retention and average annual salary levels. BE IT FURTHER RESOLVED THAT, in the event the Company acquires the Site during the term of the tax abatement and as a result the Site thereafter becomes exempt from real property taxation, then the Council shall have the right to require the Company to repay the full amount of real property tax savings realized by the Company from the tax abatement approved hereunder from the date approved by the Council through the date the Site becomes exempt from real property taxation. 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 real property tax abatement prior to the commencement of construction of the real estate improvements. 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. Adopted by the Common Council of the City of Carmel, Indiana this a S day of vvyt), 2011, by a vote of (4, ayes and 0 nays. V. Accetturo Pre ing Officer W. Eric Sei nald E. Carter ATTEST: Diana L. Cordray, Clerk Treasur Presented by me to the Mayor of the City of Carmel, Indiana this 0( 1 day of ahc■L 2011, at 7: P.m. Diana L. Cordray, Clerk Treasu r S Approved by me, Mayor of the City of Carmel, Indiana this 42/ day of rY) col c..L- 2011,at1: (4Sg.m. ATTEST: Diana L. Cordray, Clerk Treasurer Prepared by: Chad J. Sweeney Ginovus 8888 Keystone Crossing Suite 1450 Indianapolis, Indiana 46240 317/819 -4415 (telephone) Chad(Ginovus.com (e -mail) Sponsors: Councilors Carter, Rider, Sharp and Snyder COMMON COUNCIL OF THE CITY OF CARME evin Rider Nov P2ES C Richard L. Sharp uc' yder J es Brainard, Mayor EXHIBIT A A LAND BOUNDARY DESCRIPTION OF THE BUILDING LOCATED AT 12188B NORTH MERIDIAN STREET, CARMEL, INDIANA HAMILTON COUNTY, INDIANA PAGE 1 OF 1 Sponsors: Councilors Carter, Rider, Sharp and Snyder Lot Numbered One (1) in Meridian Medical Plaza, an addition to the City of Carmel, Hamilton County, Indiana as per plat thereof, recorded March 17, 2006 in Plat Cabinet 4, Slide 41, as Instrument Number 200600014515, in the Office of the Recorder of Hamilton County, Indiana. Sponsors: Councilors Carter, Rider, Sharp and Snyder EXHIBIT B NOTICE OF ADOPTION REGARDING THE APPROVAL OF A TEN -YEAR REAL PROPERTY TAX ABATEMENT FOR MERIDIAN MEDICAL PARTNERS TWO, LLC AND FRANCISCAN ALLIANCE, INC., F /K/A/ SISTERS OF ST. FRANCIS HEALTH SERVICES, INC. LOCATED AT 12188B NORTH MERIDIAN STREET, CARMEL, INDIANA Notice is hereby given that the Common Council of the City of Carmel, Indiana did on the 7th day of March, 2011 adopt Resolution CC- 03- 07 -11 -03 designating an Economic Revitalization Area "ERA for Meridian Medical Partners Two, LLC and Franciscan Alliance, Inc., F /K/A/ Sisters of St. Francis Health Services, Inc for its investment in its short -stay medical center located at 12188B North Meridian Street. This Resolution, which affects the following described property located in the City of Carmel, Indiana: 12188B North Meridian Street, Clay Township, Hamilton County, as described in Exhibit A of Resolution CC- 03- 07 -11 -03 (the "Property was adopted following the filing of information by Meridian Medical Partners Two, LLC and Franciscan Alliance, Inc., F /K/A/ Sisters of St. Francis Health Services, Inc. designating the property as an ERA for the purpose of securing a (10) ten year real property tax abatement pursuant to Indiana Code Section 6- 1.1- 12.1 -4 relative to the completion of real estate improvements. On the 21st of March, 2011 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 -03- 21 -11 -02 and approving a (10) ten -year personal property tax abatement. A description of the property and a copy of Resolutions CC- 03- 07 -11- 03 and CC- 03- 21 -11 -02 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. STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS State Form 51767 (R2 1 -07) Prescribed by the Department of Local Government Finance This statement is being completed for real property that qualifies under the following Indiana Code (check one box): Redevelopment or rehabilitation of real estate improvements (IC 6- 1.1- 12.1 -4) Eligible vacant building (IC 6- 1.1- 12.1 -4.8) 20 PAY 20 FORM SE-1 Real Property INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. "Projects" planned or committed to after July 1, 1987, and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (IC 6 -1.1 -12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment or rehabilitation, BEFORE a deduction may be approved. 3. To obtain a deduction, application Form 322 ERA/RE or Form 322 ERAJVBD, Whichever is applicable, must be filed with the County Auditor by the later of. (1) May 10; or (2) thirty (30) days alter the notice of addition to assessed valuation or new assessment is mailed to the property owner at the address shown on the records of the township assessor. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF -1 /Real Property annually to the application to show compliance with the Statement of Benefits. [IC 6- 1.1- 12.1- 5.1(b) and IC 6- 1.1- 12.1- 5.3(/)j 5. The schedules established under iC 6- 1.1- 12.1 -4(d) for rehabilitated property and under IC 6 -1.1- 12.1- 4.8(1) for vacant buildings apply to any statement of benefits approved on or after July 1, 2000. The schedules effective prior to July 1, 2000, shall continue to apply to a statement of benefits filed before July 1, 2000. Name of designating body Common Council of the City of Carmel Location of property 12188 B North Meridian Street, Carmel, IN 46032 County Hamilton Description of real property improvements. redevelopment. or rehabilitation (use additional sheets i f necessary) Sisters of St. Francis Health Services, Inc. is occupying space in the North Meridian Medical Pavilion B to operate a short-stay medical center. The company is anticipating $9. 500. 000 .in;reaLoronertv.investments_ Cur�erirnumber 0 ECTION 4 ti �2 Salaries r ±`TAXPAYER INFbRMATION OGATIONAND; DESCRIPTION OF PROPOSED :ESTIMATE,OF EMPLOYEES AND SALRARIES AS RESULT OF PROPOSED PRO:/EC,. Nurriber retained 0.00 NOTE: Pursuant to IC 6 -1.1- 12.1 -5.1 (d) (2) the COST of the property is confidential. Current values Plus estimated values of proposed project Less values of any property being replaced Net,estimated,values,upon, completion of project TIMi4TEDhTOTAL COST- AIVD "UE:OFIPROPOSED ^,PROJE SECTION :5 a e WASTE CONVERTED AND OT,HER BENEFITS BYTHE TAXPAYER Salaries r r AXPAYER CERTIFICATION Resolution number Estimated stall date (month, clay, year 03/01/2011 Estimated completion date (month, day year 12/31,I2015� Number additional 76 salaries ,_$S,7OO,aoo_oo. REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE 9,500,000.00 Estimated solid waste converted (pounds) 0.00 Other benefits s in this statement are true. Estimated hazardous waste converted (pounds) 0.00 DLGF taxing district number 29 -003 Date sir ed mt day, year I e X- Name of taxpayer Meridian Medical Partners Two, LLC 1 Franciscan Alliance, Inc., F /K/A Sisters of St. Francis Health Services, Inc. Address of taxpayer (number and street, city, state, and ZIP code) 11595 N. Meridian Street, Suite 250, Carmel, IN 46032 Name of contact person Brian Fritts Page 1 of 2 Telephone number (317) 663 -6334 E mail address BFrittsIauth.net R,USErOFTHE DESIGMATING ©Y We have reviewed our prior actions relating to the designation of this Economic Revitalization Area and adopted in the resolution previously approved by this body. Said resolution, passed under IC 6- 1.1 -12 A. The designated area has been limited to a period of time not to exceed expires is B. The type of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements Yes 2. Residentially distressed areas Yes 3. Occupancy of a vacant building Yes Approved (si re itle of au zed mem r of des, Attested .,.nature and t No No No calenda Telephone number 5 71 -a iiS find that the applicant meets the general standards .1, provides for the following limitations: r year (see below). The date this designation C. The amount of the deduction applicable is limited to D. Other limitations or conditions (specify) E. The deduction is allowed for years* (see below). We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Date signed (moth, day, year) 3 /'�f 1 Designated body C ommtr1 COLAnc% If the designating body limit -LI me period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is entitled to receive a deduction a number of years designated under IC 6-1.12-12.1-4. A. For residentially distressed areas, the deduction period may not exceed five (5) years. B. For redevelopment and rehabilitation or real estate improvements: 1. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3). six (6), or ten (10) years. 2. If the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years. C. For vacant buildings, the deduction period may not exceed two (2) years. Page 2 of 2