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HomeMy WebLinkAboutCC-09-04-12-01 Disallowing DORMIR Tax AbatementSPONSOR: Councilor Snyder RESOLUTION CC- 09- 04 -12 -01 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, FINDING MD SLEEP LLC D /B /A DORMIR, INC. IS IN SUBSTANTIAL NON - COMPLIANCE WITH ITS FORM SB -1 COMMITMENTS AND DISALLOWING ITS PERSONAL PROPERTY TAX ABATEMENT WHEREAS, MD Sleep LLC, d/b /a Dormir, Inc. operates a facility located at 615 West Carmel Drive, Suite 100, in Carmel, Indiana (the "Facility "); and WHEREAS, under I. C. 6- 1.1- 12.1 -2.5 and I.C. 6 -1.2- 12.1 -4.5, the Common Council of the City of Carmel, Indiana (the "Council ") may designate an area as an Economic Revitalization Area ( "ERA ") and determine the duration of the tax abatement period(s) for such property; and WHEREAS, in 2008, Dormir, Inc. filed an Indiana Statement of Benefits Personal Property form (the "SB -1 Form ") certifying therein the number of additional employees and their average salaries (the "Commitments ") that would be added at the Facility should it receive a partial personal property tax abatement and install certain information technology equipment (the "IT Equipment ") in the Facility; and WHEREAS, in reliance on the Commitments, the Council, through its Resolutions CC- 03 -17 -08 -012 and CC- 04- 21 -08 -02 (individually and collectively, the "2008 Resolutions "), designated the Facility as an ERA and approved a 10 -year partial personal property tax abatement (the "Tax Abatement ") for the IT Equipment; and WHEREAS, in granting Doiiuir, Inc. the Tax Abatement, the Council retained the right to reduce the length of and/or end the Tax Abatement should Dormir, Inc. not fulfill its Commitments; and WHEREAS, I.C. 6 -1.1- 12.1- 5.6(b) requires Dormir, Inc. to provide the Hamilton County Auditor (the "Auditor ") and the Council with information showing the extent to which it has complied with its SB -1 Form Commitments, by annually filing a Compliance with Statement of Benefits Personal Property form ( "CF -1 Form "); and WHEREAS, by the deadline date of May 15, 2012, Dormir, Inc. failed to submit to the Council a CF -1 Form and Dormir, Inc. submitted a letter dated August 8, 2012 with an explanation (see EXHIBIT A); and WHEREAS, as a result of this non - compliance, the Tax Abatement previously authorized and provided to Dormir, Inc. should be disallowed immediately upon passage and approval by the Mayor. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Carmel, Indiana, as follows: Section 1. The foregoing Recitals are incorporated herein by this reference. Section 2. The Tax Abatement previously approved and provided to Dormir, Inc. pursuant to the 2008 Resolutions is hereby DISALLOWED effective immediately after passage and approval by the Mayor.. Section 3. The Clerk-Treasurer is directed to mail a certified copy of this Resolution to Dormir, Inc. the County Auditor, and the Indiana Department of Local Government Finance. Section 4. This Resolution shall be effective from and after its passage and approval by the Mayor. PASSED by the Common Council of the City of Cannel, Indiana, this 'Y day of 6.43'runk&A, , 2012,by a vote of 7 ayes and Co nays. COMMON COUNCIL FOR THE CIT OF CA ■ 7i.idmg 17 er Kevin D. Rider Richari L. Shy s, Pre ident Pro Tempore aro chleif / N o 1" Present -{o v S 19 n a-iu re, Ronald E. Carter W. Erik -idenstick/ A_ AZ 1 7411 ivam uci • der AT`r ST;_ / Diana L. Cordray, IAMC, C1; -Treasurer Presented by me to the Mayor of the City of Cannel, Indiana this '7 day of 2012, at /0:a3 A.M. Diana L. Cordray, IAMC, Cler l Treasurer Approved by me, Mayor of the City of Carmel, Indiana, this 1 day of ATTEST: 2012, at 4.' /S 2.M. Diana L. Cordray, IAMC, Cl ° - Treasurer Prepared by: Diana L. Cordray Clerk - Treasurer City of Carmel l'/(_ mes Brainard, Mayor 1 COMPLIANCE WITH STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51765 (5 -04) Prescribed by the Department of Local Government Finance FORM CF -1 / PP/ INSTRUCTIONS: 1. Property owners whose Statement of Benefits was approved after June 30, 1991 must file this form with the County Aut/r'l'or and the local Designating Body to show the extent to which there has been compliance with the Statement of Benefits. (IC 64.1- 12.1 -5.6) 2. This form must be filed with Form 322 ERA/PPME or Form 322 ERA/PP Other between March 1 and May 15 of eac year, unless a filing extension under IC 6- 1.1 -3.7 has been granted. A person who obtains a filing extension must file betwee March 1 and the extended due date of each year. 3. With the approval of the designating body, compliance information for multiple projects may be consolidated o one (1) compliance (CF -1). Name of taxpayer tAZ. Sleep L-Lc_ d.l6la boarn12,zn►C. Address of taxpayer (street and number, city, state and ZIP code) PAYERINFORMATION •: Name of contact person elephone number 7' a SECTION z; ,ri_ q u LOCATIQN AND DESCRIPTIONGOF PR0Ali,Y 4 t¢�Y r COST +AND,r�VALUES'" & dion SSB B 1 • ,.. ' rt .. r� . Name of designating body / / Resolution number Location of property Count / Taxing district Description of new manufacturing equipment, or new research and development equip e t, or n information technology equipment, or new logistical distribution equipment to be acquired. Estimated starting date Estimated completion date SECTION 3 "sfEstmated on Current number of employees Salaries Number of employees retained Salaries Number of additional employees Salaries *. SECTION + k " A s Estlmd 4 t¢�Y r COST +AND,r�VALUES'" & dion SSB B 1 • ,.. ' rt .. r� . '.. Illanuvactunng ::°. ment Assessed Value +� �'��+•0 aR &,D)Equlpment o s" . : i ' r ' Assessed Value 3 Log st Dist � Equipment Assessed Value ��- IT Equipment . E ul st .._xa ;t4 s 4s r .' ost r o _ zk .... Assessed Value Values before project Plus: Values of proposed projec Less: Values of any property being re ce Net values upon completion of project AS.114 y , F � * , . .Y. Cost.;,s„ Assessed Value fy`.f,•° \;�., fCost :r..�,...c Assessed Value x`f #;_ Cost;.,.s t :s ?? °.�. Assessed Value ay' z' > ",' Gost- •.;�.. s..r, `:: Assessed Value Values before project Plus: Values of proposed project / Less: Values of any property beiip replaced Net values upon completion of roject NOTE: The COST of the pro erty is confidential pursuant to IC 6 -1.1- 12.1 -5.6 (d). '3 . i `' R ..1„�. ""- fit- , � �^^ � SECTIONt5'A4TE 4AVERTED ANDfOTHERfBEN_ EFITS PROMISED BY ffrrAXPAYER� , ��..� -�rr.� ,, �, Asr timatedionjSB 1 ' �- .� -� �na ° 1Actuaii Amount of solid r .ste converted Amount of ha rdous waste converted Other bene s: JCPAYER CERTIF,ICATION,� I hereby certify that the representations in this statement are true. Si.. ature of authorized representative Title Date signed (mo., day, yr.) FORAISE -40FATHE DESIGNATING 33 WA- INSTRUCTIONS: (IC 6- 1.1- 12.1 -5.9) 1. Within forty -five (45) days after receipt of this form, the designating body may determine whether or not the property owner has substantially complied with the Statement of Benefits. 2. If the property owner is found NOT to be in substantial compliance, the designating body shall send the property owner written notice. The notice must include the reasons for the determination and the date, time and place of a hearing to be conducted by the designating body. If a notice is mailed to a property owner for new manufacturing equipment and / or research and development equipment and /or logistical distribution equipment and /or information technology equipment, a copy of the written notice shall be sent to the Department of Local Government Finance. 3. Based on the information presented at the hearing, the designating body shall determine whether or not the property owner has made reasonable effort to substantially comply with the Statement of Benefits. 4. If the designating body determines that the property owner has NOT made reasonable effort to comply, then the designating body shall adopt a resolution terminating the deduction. The designating body shall immediately mail a certified copy of the resolution to: (1) the property owner; (2) the County Auditor; and (3) the Department of Local Government Finance. We have reviewed the CF -1 and find that: compliance compliance III the property owner IS in substantial the property owner IS NOT in substantial II other (specify) Reasons for the determination (attach additional sheets if necessary) see a-A— acteA. 1e_+ -4-ef (send- CERTIFIED ,2•EThQN) 2eC,e t.9J / Signature of authoriz e b / o Date signed (month, day, year) Attested / De nating body om rnor Chu Inc ; If the property owner is found not to be i •_ ubstantial compliance, the property owner shall receive the opportunity for a hearing. The following date and time has been set aside for the purpose of considering compliance. Time of hearing j: 3D ❑ AM -PM Date of hearing a 11 (.0 ( 12 Location of hearing .11 ((�� ,ar` I Carmel C;-hi 'At1, Qo 1CUS 2.19erm 1 Fio3r „- Ifialk -plo ESULTSl( i3it o pieted after,the'➢A rinai ❑ Approved enied (see instruction 4 above) Reasons for the determination (attach additional sheets if necessary) e Car r m rr, o •rTh 'L err- -- -ee m:'r\ (6) 5e e 0.+4 -aw 4 4 r -c.Y crn‘ `1 O( m , 2..o t -Z +!_ h- A) CQ-c,..YIC► Signature of authorized member Attested by: Date signed (month, day, year) Designating body rn Co' C ouIAC V APPEAL RIGHTS [IC 6 -1.1- 12.1- 5.9(e}J A property owner whose deduction is denied by the designating body may appeal the designating body's decision by filing a complaint in the office of the Circuit or Superior Court together with a bond conditioned to pay the costs of the appeal if the appeal is determined against the property owner. August 1, 2012 Carmel Common Council MD Sleep LLC d/b /a Dormir, LLC ATTN: Jeffrey Moon Vice - President and Chief Accounting Officer 615 West Carmel Drive, Suite 130 Cannel, IN 46032 RE: City of Carmel Tax Abatement Mr. Moon, The City of Carmel offered a tax abatement for Dormir. A requirement of continuing abatement of taxes was the annual filing of a CF -1 report as to compliance. This report was due May 15, 2012. As it is now the end of July and that report has not yet been received nor has any attempt been made to contact the City of Carmel about this issue. Therefore, according to law, a hearing will be held at the Carmel City Council Finance, Administration and Rules Committee meeting on Thursday, August 16, 2012 at 5:30 p.m. in the Caucus Room, second floor, Carmel City Hall. The purpose of this hearing will be for Dormir to offer an explanation for the non - compliance and for a determination to be made whether or not the abatement will be suspended or rescinded. If you have any questions, please do not hesitate to contact me at lsnyder@carmel.in.gov Sincerely, L`Uci Snyder- - City Council — Southeast District Finance Chair cc: Larry Gigerich, GINOVUS James Brainard, Mayor of Carmel Richard L. Sharp, President, Carmel City Council Robin Echart, Hamilton County Assessor Pattie Clifford, Clay Township Assessors Office One Civic Square Carmel, IN 46032 317 -571 -2400 1 r 4 :: WSENDER COMPLETE THIStECTION -r O Complete items 1;.2), and, 3. Also complete item 4 if 'Restricted Delivery is desired. m Print your name and address on the reverse so that we can return the card to you. ® Attach this card to .the beck of the mailpiece, or on the front if space permits. COMPLETE THIS SECTIOMON DELIVERY? A. Signature 1. Article Addressed;to :+ d %b /c 1)Gf mir L.L. C. f i�nf: ..f ?{4rc.y i`-'tac) Lai 5 L.' C.11Y1.2�( 30 errme°li. . :ti 'y.L;r33 Z i B. Receiv d by,(Printed N me) LYAgent ❑ Addressee C. Da of Delivery I I D. Is delivery address different from item 1? ❑ Yes I If YES, enter delivery address below: ❑ No 3. 'Servi Type Ud'Certified Mail 0. Registered ❑. Insured Mail ❑ EExx ress Mail Ld'Return Receipt for Merchandise ❑ C.O.D. 4. Restricted Delivery?. (Extra Fee) 0 Yes 2. Article Number (Transfer ,from service; label) 7002 0510 0004 24.48 1477 PS Form 3811, August 2001 Domestic' Return Receipt J S .octal Servjce uEP Ttfl ED Domest,c MaII nl Postage, Certified Fee- $ �5 Postmark 102595 -01 -M -0381 CARMEL COMMON COUNCI.L FINANCE COMMITTEE August 16, 2012 — 5:30 pm — Second Floor Caucus Luci Snyder -Chair Eric Seidensticker Carol Schleif Sue Finkam Ron Carter Kevin Rider Rick Sharp Loren Matthes Caroline Anker Bruce Donaldson Bill Hammer Jeff Worrell Jim Higgins 1. Tax Abatement Hearing for: Dormir Pharmakon Neither of these companies filed their CF -1, due May 15th. City Council revoked their tax abatements June 4, 2012 We notified them via Certified Letter- signature required of a hearing to plead their case. Neither Dormir nor Pharmakon appeared for the hearing and the committee upheld the Council action of 6/4/12 2. D- 2095 -12 Deferred Compensation Committee awaits the final RFP from American Pension Advisors 3. D- 2098 -12 Support for the Arts a. Awaiting a contract between the PAC and the CRC for the James Building b. Discussion with the Mayor about defunding the surplus in the various departments to cover these grants. 4. CC- 07- 16 -12 -02 Resolution to authorized access to LOC for two sets of stairs in City Center As the Committee indicated that it would not approve funds to be used from the LOC to build the stairs, and Mr. Higgins stated that they could build one set from cash on hand, Mr. Carter indicated that he would withdraw this Resolution at Council. August 8, 2012 Luci Snyder Carmel City Council — Southeast District Finance Chair One Civic Square Carmel, IN 46032 RE: City of Carmel Tax Abatement Dear Ms. Snyder, Please accept this letter as Dormir's explanation for not filing and annual CF -1 report as required for our tax abatement. The following statement is from our Attorney Jeremy E. Hill: "Dormir is in the process of final liquidation under the guidance of its secured creditors, the proceeds of which will likely leave the secured creditors underpaid by millions of dollars. Dormir's secured creditors, including Square 1 Bank, are owed in excess of $5 million in the aggregate. The final liquidation and termination of its remaining employees is likely within the next few weeks ". If you need additional information, you may contact our Attorney, Jeremy E. Hill of Bingham Greenebaum Doll LLP, 2700 Market Tower, 10 West Market Street, Indianapolis, IN 46204; phone number 317 - 968 -5384. Sincerely, Marianne Howard Accounting Manager CC: Jeremy E. Hill, Attorney at Law x t A- A- 615 West Carmel Drive, Suite 100. Carmel, IN 46032. 317 -706 -1080. 317- 706 -1022 Fax.