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HomeMy WebLinkAboutCC-03-18-13-01 Baldwin & Lyons RE 10 Year Tax AbatementSponsors: Councilors Carter, Finkam, Rider, Schleif, Seidensticker, Sharp and Snyder RESOLUTION CC 03- 18 -13 -01 DECLARATORY RESOLUTION ( "RESOLUTION ") OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA DESIGNATING 111 CONGRESSIONAL BOULEVARD, CARMEL, INDIANA AS AN ECONOMIC REVITALIZATION AREA 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 -2.5 empowers the Common Council of the City of Carmel, Indiana (the "Council ") to designate an area as an Economic Revitalization Area ( "ERA "), to determine the duration of the abatement period(s) for such property and impose other reasonable conditions; and WHEREAS, Protective Insurance Company and Baldwin & Lyons, Inc. (collectively, "the Company ") have requested the Council to designate the real estate located at 111 Congressional Boulevard, Carmel, Indiana and legally described in Exhibit A (the "Site "), as an ERA; and WHEREAS, the Company will make real property improvements at the Site in support of its operations, 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 real estate improvements at the Site; and WHEREAS, the Council has reviewed 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 Form SB -1 heretofore filed by the Company, the Council hereby makes the following findings: FINDING 1. The Site is located in the City of Carmel and has been undesirable for normal development due to the following economic conditions: FINDING 2. FINDING 3. (a) The Site is zoned for and is generally suitable for use as an office development; however, there is a low demand for office space in the geographic area where the Site is located due to the economic conditions present in the area (the "Corridor "). (b) Vacancy rates for office space in the area and an abundance of sublease opportunities evidence an oversupply of office space in the Corridor. The Company's operations at the Site are consistent with the Site's existing zoning and represents an enhanced use for the Site. The Company plans to make real estate improvements that will result in an addition to the Site's overall assessed value within an accelerated time period. FINDING 4. FINDING 5. FINDING 6. FINDING 7. FINDING 8. FINDING 9. FINDING 10. Sponsors: Councilors Carter, Finkam, Rider, Schleif, Seidensticker, Sharp and Snyder The estimate of the number of individuals who will be employed (i.e., approximately 500 new and retained FTEs) can be reasonably expected to result from the Company's proposed improvement of the Site. The estimate of the annual salaries (i.e., average of approximately $90,000 per annum) of those individuals who will be employed can be reasonably expected to result from the Company's proposed project at the Site. The estimate of the cost and assessed value of the real estate improvements is reasonable for a project of this type. The Company will be an active corporate citizen involved in and committed to the City of Carmel. The Company's 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 investment in real estate improvements at the Site. The totality of benefits is sufficient to justify real property tax deductions herein described. NOW, THEREFORE, BE IT RESOLVED THAT, the Site is hereby declared an ERA for purposes of granting real property tax abatement in support of the corporate headquarters operations and real estate improvements as described in the Form SB -1 provided by the Company. BE IT FURTHER RESOLVED THAT, the number of years for which the Company is entitled to a deduction for real estate improvements, pursuant to I.C. 6- 1.1- 12.1 -4, shall be ten (10). BE IT FURTHER RESOLVED THAT, the designation of the ERA and the granting of the tax abatement contemplated herein is conditioned upon the Company's agreement to not appeal the assessed value of the real estate in a manner which would result in the reduction of the property taxes owed below the dollar amount to be paid in 2013. BE IT FURTHER RESOLVED THAT, the Council shall have the right to reduce the length of and /or end the ERA designation period granted for the Site should the Company and /or a subsequent owner of the Company not fulfill commitments made to the City of Carmel herein, including the amount of capital investment, job creation/retention and average annual salary levels. BE IT FURTHER RESOLVED THAT, the deductions authorized herein are contingent upon the designation of the ERA prior to the commencement of construction of the real estate improvements. Sponsors: Councilors Carter, Finkam, Rider, Schleif, Seidensticker, Sharp and Snyder 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), the Statement of Benefits is hereby approved by the Council as required by I.C. 6- 1.1- 12.1 -2(1). BE IT FURTHER RESOLVED THAT, that under I.C. 6 -1.1- 12.1 -2.5 there shall be published a notice (the "Notice ") of the adoption and substance of this Resolution in accordance with I.C. 5 -3 -1, which Notice shall name a date for the public hearing on this matter (the "Public Hearing ") and that at the conclusion of the Public Hearing, the Council may take final action on the proposed designation, and further that a copy of this Resolution shall be filed with the office of the Hamilton County Assessor and the Hamilton County Auditor, where it shall be available for public inspection. The Notice shall be substantially in the form set forth as Exhibit B attached hereto. BE IT FINALLY RESOLVED THAT that under I.C. 6- 1.1- 12.1 -2.5, the Clerk- Treasurer shall file a copy of the Notice and the Statement of Benefits with each taxing unit that has authority to levy property taxes in the geographic area where the Site is located; such information shall be filed with officers of the taxing unit who are authorized to fix budgets, tax rates, and tax levies under I.C. 6- 1.1 -17- 5 at least ten days prior to the date of the Public Hearing. Sponsors: Councilors Carter, Finkam, Rider, Schleif, Seidensticker, Sharp and Snyder Adopted by the Common Council of the City of Carmel, Indiana this 18 day of OJAC ■ , 2013, by a vote of 1 ayes and a nays. COMM COUNCIL OF THE CITY OF CARMEL T -- Richard L. Sharp, President Pro Tempore nald E. Carter ATTEST: -fso Diana L. Cordray, Clerk- Treasurer Carol Schleif Presented by me to the Mayor of the City of Carmel, Indiana this j &day of 2013, at fa :.O 0. Atn.L11,1_,Litm Dia a L. Cordray, Clerk- Treasurer Approved by me, Mayor of the City of Carmel, Indiana this t c) day of 2013, at ( :50 4) .m. ATTEST: Diana L. Cordray, Clerk-Treasurer Prepared by: Larry Gigerich, Managing Director Ginovus 8888 Keystone Crossing Suite 1450 Indianapolis, Indiana 46240 317/819 -0890 (telephone) 317/819 -0888 (facsimile) es Brainard, Mayor Sponsors: Councilors Carter, Finkam, Rider, Schleif, Seidensticker, Sharp and Snyder Larry@Ginovus.com Ginovus.com (e -mail) EXHIBIT A A LAND BOUNDARY DESCRIPTION OF THE BUILDINGS AND LAND LOCATED AT 111 CONGRESSIONAL BOULEVARD, CARMEL, INDIANA HAMILTON COUNTY, INDIANA DATE PAGE 1 OF 1 Legal Description —111 Congressional Boulevard, Carmel, IN 46032 PART OF THE SOUTHEAST QUARTER OF SECTION 35, TOWNSHIP 18 NORTH, RANGE 3 EAST OF THE SECOND PRINCIPAL MERIDIAN IN HAMILTON COUNTY, INDIANA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF THE SAID SOUTHEAST QUARTER SECTION; THENCE NORTH 00 DEGREES 05 MINUTES 40 SECONDS WEST (ASSUMED BEARING) ALONG THE WEST LINE OF SAID SOUTHEAST QUARTER SECTION A DISTANCE OF 56.09 FEET; THENCE NORTH 89 DEGREES 54 MINUTES 20 SECONDS EAST A DISTANCE OF 55.00 FEET TO THE INTERSECTION OF THE EAST RIGHT OF WAY LINE OF PENNSYLVANIA STREET AND NORTH RIGHT OF WAY LINE OF EAST 116TH STREET AND THE BEGINNING POINT; THENCE NORTH 00 DEGREES 05 MINUTES 40 SECONDS WEST ALONG SAID EAST RIGHT OF WAY LINE A DISTANCE OF 673.44 FEET; THENCE NORTH 88 DEGREES 46 MINUTES 54 SECONDS EAST A DISTANCE OF 332.75 FEET TO A CURVE HAVING A RADIUS OF 750.00 FEET, THE RADIUS POINT OF WHICH BEARS NORTH 01 DEGREES 13 MINUTES 06 SECONDS WEST; THENCE EASTERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF 229.07 FEET (CHORD BEARING NORTH 80 DEGREES 18 MINUTES 07 SECONDS EAST, LENGTH, 228.19 FEET) TO A POINT WHICH BEARS SOUTH 18 DEGREES 43 MINUTES 06 SECONDS EAST FROM SAID RADIUS POINT; THENCE NORTH 71 DEGREES 16 MINUTES 54 SECONDS EAST A DISTANCE OF 226.51 FEET; THENCE SOUTH 18 DEGREES 43 MINUTES 06 SECONDS EAST A DISTANCE OF 78.76 FEET TO A CURVE HAVING A RADIUS OF 150.00 FEET, THE RADIUS POINT OF WHICH BEARS SOUTH 71 DEGREES 16 MINUTES 54 SECONDS WEST; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF 45.82 FEET (CHORD BEARING SOUTH 09 DEGREES 58 MINUTES 06 SECONDS EAST, LENGTH 45.64 FEET) TO A POINT WHICH BEARS NORTH 88 DEGREES 46 MINUTES 54 SECONDS EAST FROM SAID RADIUS POINT; THENCE SOUTH 01 DEGREES 13 MINUTES 06 SECONDS EAST A DISTANCE OF 655.91 FEET TO THE SAID NORTH RIGHT OF WAY LINE OF EAST 116TH STREET; THENCE SOUTH 88 DEGREES 46 MINUTES 54 SECONDS WEST ALONG THE SAID NORTH RIGHT OF WAY LINE A DISTANCE OF 818.14 FEET TO THE BEGINNING POINT, CONTAINING 12.982 ACRES, MORE OR LESS. Sponsors: Councilors Carter, Finkam, Rider, Schleif, Seidensticker, Sharp and Snyder ALTA / ACSM LAND TITLE SURVEY 111 CONGRESSIONAL BLVD 12.14 ACRES, t (NET) i T — — .— Canpraeeavr Rlw F h _ _ _. Cpgrsubnel Bhv .1 .11. I11rill1l lr�,'Il 6� Ir 17 i1 II ICY• I R�L Lr3.le01i 11 �;E � - , Ent 11611 Street L _ SYMBOL LEGEND ®1{ID6i Graup IMEISSYYSSI revYwvver PROJECT LOCATES IN nLiuvSM LAND MSS SURVEY MEWED GDR Reference* Rlo,ou Nemeer. C11-6475 Sheet Nw,ov: 1 d 1 Sponsors: Councilors Carter, Finkam, Rider, Schleif, Seidensticker, Sharp and Snyder EXHIBIT B NOTICE OF PUBLIC HEARING CONCERNING ESTABLISHING AN ECONOMIC REVITALIZATION AREA FOR PROPERTY TAX ABATEMENT FOR PROTECTIVE INSURANCE COMPANY AND BALDWIN & LYONS, INC. BY THE COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA Notice is hereby given that the Common Council for the City of Carmel, Indiana (the "Council ") will hold a public hearing at p.m. on , 2013 in the Council Chamber Room located at One Civic Square, Carmel, IN 46032, on the matter of declaring an economic revitalization area ( "ERA ") in accordance with and pursuant to Indiana Code 6 -1.1 -12.1 for the taxpayers identified as Protective Insurance Company and Baldwin & Lyons, Inc. for real estate and improvements with a common address of 111 Congressional Boulevard, Carmel, Indiana. The Statement of Benefits (SB -1) submitted by Protective Insurance Company and Baldwin & Lyons, Inc. and supporting documents describing the project, have been prepared and can be inspected at the office of the Hamilton County Assessor, Suite 214, 33 North 9th Street, Noblesville, Indiana 46060. Additional information on the project may be obtained by contacting Larry Gigerich, Managing Director, Ginovus at (317) 819 -0890. Notice is further given that the Council on , 2013, at the hour of p.m., local time, in the Council Chamber Room at One Civic Square, Carmel, Indiana, will receive and hear remonstrances from persons interested in or affected by the proceedings pertaining to the declaration of an ERA and a Declaratory and Confirmatory Resolution related thereto. At the time fixed for hearing or at any time prior thereto any person interested in the proceedings may file a written remonstrance with the Council. At such hearing, which may be adjourned from time to time, the Council will hear all persons interested in the proceedings and all remonstrances that have been filed. After considering this evidence, the Council will take final action by confirming, modifying and confirming, or rescinding the Declaratory Resolution. Dated this day of , 2013. COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS State Form 51767 (R3 / 12 -11) 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) 1g 20 PAY 20 FORM SB -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 ERANBD, Whichever is applicable, must be filed with the County Auditor by the later of: (1) May 10; or (2) thirty (30) days after 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, if any, or the county 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 lC 6- 1.1- 12.1- 5.3(1)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, unless an alternative deduction schedule is adopted by the designating body (IC 6 -1.1- 12.1 -17). The schedules effective prior to July 1, 2000, shall continue to apply to a statement of benefits filed before July 1, 2000. ` SECTION°.1,4r -TAXPAYERINFORMATION=" Name of taxpayer Protective Insurance Company / Baldwin & Lyons, Inc. Address of taxpayer (number and street, city, state, and ZIP code) 1099 North Meridian Street, Suite 700, Indianapolis, IN 46204 Name of contact person James D. Isham Name of designating body City of Carmel Common Council Telephone number (317) 636 -9800 yOCATIO i.:013+DSCRIPTION OF,i,PROPOSED'PROJECtrtAkik E -mail address jisham @ baldwinandlyons.c Resolution number Location of property 111 Congressional Boulevard, Carmel, IN 46032 County Hamilton DLGF taxing district number 29 -18 Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) The company will purchase and make improvements to an existing building that will house its executive, administrative and technical personnel. Estimated start date (month, day, year) 04/01/2013 Estimated completion date (month, day, year) 12/31/2018 . 9-SECTION-3- Current number 0.00 SECTION; STIMATE 05;EMPLQYEES ANDSALARIES °AS RESULT'', PROPOSED PROJECT S`` ,: ' bf Salaries $0.00 Number retained 0.00 Salaries $0.00 Y•6- Number additional 500.00 STIMATED tTOTAL:COST ANDaVA -UE-OF PROPOSED PROJECT: Salaries $45,000,000.00 4w.� NOTE: Pursuant to IC 6 -1.1- 12.1 -5.1 (d) (2) the COST of the property is confidential. REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values Plus estimated values of proposed project 9,450,000.00 Less values of any property being replaced Net estimated values upon completion of project ECTION5 STECONVERTED +AND OTHER BENEFITS 'PROMISEDxBY,THE,:TAXPAYER. Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits ECTION;6 t? XPAY,ERCERTIFtCATION uq.' hereby certify that the representations in this statement are true. Signature of authorized representative -a / Title Senior VP, Administration Page 1 of 2 Date signed Imonth, ay, year) ox./ 13 F'OR ISEOF4THE DESIGNATIING BODY, We have reviewed our prior actions relating to the designation of this Economic adopted in the resolution previously approved by this body. Said resolution, A. The designated area has been limited to a period of time not to exceed expires is . Revitalization Area and find that the applicant passed under IC 6 -1.1 -12.1, provides for calendar years * (see meets the general standards the following limitations: below). The date this designation to: ❑ Yes • No • Yes ❑ No ❑ Yes • No . B. The type of deduction that is allowed in the designated area is limited 1. Redevelopment or rehabilitation of real estate improvements 2. Residentially distressed areas 3. Occupancy of a vacant building 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). IC 6 -1.1- 12.1 -17? • Yes • No and find that the estimates and, expectations are reasonable and have above. F. Did the designating body adopt an altemative deduction schedule per If yes, attach a copy of the alternative deduction schedule to this form. We have also reviewed the information contained in the statement of benefits determined that the totality of benefits is sufficient to justify the deduction described Approved (signature and title of authorized member of designating body) Telephone number . ( ) Date signed (month, day, year) Attested by (signature and title of attester) 'Designated body . * If the designating body limits the time 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 to 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 •a;FOR USE`OF,THE DESIGNATING BODY _ °'. �. We have reviewed our prior actions relating to the designation of this Economic adopted in the resolution previously approved by this body. Said resolution, A. The designated area has been limited to a period of time not to exceed expires is Revitalization Area and find that the applicant passed under IC 6 -1.1 -12.1, provides for calendar years * (see meets the general standards the following limitations: below). The date this designation to: ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No B. The type of deduction that is allowed in the designated area is limited 1. Redevelopment or rehabilitation of real estate improvements 2. Residentially distressed areas 3. Occupancy of a vacant building 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). IC 6 -1.1- 12.1 -17? ❑ Yes ❑ No and find that the estimates and expectations are reasonable and have above. F. Did the designating body adopt an alternative deduction schedule per If yes, attach a copy of the alternative deduction schedule to this form. We have also reviewed the information contained in the statement of benefits determined that the totality of benefits is sufficient to justify the deduction described Approved (signature and title of authorized member of designating body) Telephone number ( ) Date signed (month, day, year) Attested by (signature and title of attester) Designated body * If the designating body limits the time 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 to 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 Q r U 0e3o of n CITY OF CARMEL JAMES BRAINARD, MAYOR January 25, 2013 Mr. Larry Gigerich, Managing Director Ginovus 8888 Keystone Crossing, Suite 1450 Indianapolis, Indiana 46240 Dear Larry: The City of Carmel is pleased to have the opportunity to work with you and your client, Baldwin & Lyons, Inc. ( "B & L "), regarding the company's proposed corporate headquarters project in our community. It is our understanding that B & L is currently considering the potential relocation of its corporate headquarters to Carmel. We have enjoyed working with you on this important project to identify the most meaningful ways the City of Carmel can assist B & L with the proposed project. It is our understanding that B & L is considering an investment in excess of $25 Million to purchase, renovate and equip an existing building in Carmel for purposes of relocating its corporate headquarters. The project would result in the relocation of approximately 360 existing employees and the creation of approximately 140 new jobs in Carmel, by December 31, 2018. The new and existing jobs have an average annual salary level of approximately $90,000. In support of the proposed project, the City of Carmel makes the following commitments: 1. The City of Carmel will provide a ten -year real property tax abatement of the amount above the current assessed value in support of B & L's proposed project. As a condition to approval of the tax abatement, the company will agree to not appeal the assessed value of the real estate in a manner which would result in the reduction of the property taxes owed below the dollar amount to be paid in 2013; 2. The City of Carmel will work with B & L and its contractors to facilitate the zoning and planning review process in support of the company's proposed project timeline in a manner which is consistent with all legal requirements; and, 3. The City of Carmel will provide support for and participate in a public announcement of B & L's proposed project, should the community be selected for the proposed project. Please note that the real property tax abatement must be approved by the Cannel City Council. Permitting, signage, parking and other site improvement related activities must be approved by other City of Carmel administrative and legislative entities; however, we stand ready to help make those required processes work smoothly. ONE Civic SQUARI., CARMEL, IN 46032 OFFICE 317.5712401, FAX 317.844.3498 EMAIL ;hrainard@carmui.in.gov Mr. Larry Gigerich, Managing Director January 25, 2013 Page Two The City of Carmel greatly appreciates the opportunity to work with Ginovus in support of B & L's proposed corporate headquarters project. We are pleased that your client is considering the relocation of its corporate headquarters to our community. If you have any questions and/or comments, please do not hesitate to give me a call. Thank you for your consideration. Ve truly yours, 4,.,_,,O ames Brainard Mayor Copy: Members of the Carmel City Council Diana Cordray, Clerk - Treasurer