greenwood common council resolution no. 19-20 a resolution … · by resolution no. 2018-04 adopted...

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GREENWOOD COMMON COUNCIL

RESOLUTION NO. 19-20

A RESOLUTION DECLARING CERTAIN PERSONAL PROPERTY FOR TAX

ABATEMENT (Quality Custom Distribution Services, Inc.)

WHEREAS, the City of Greenwood, Indiana, recognizes the need to stimulate growth and

maintain a sound economy within its corporate limits;

WHEREAS, the Greenwood Common Council further recognizes that it is in the best

interest of the City of Greenwood to provide incentives to stimulate investment within the

community;

WHEREAS, Ind. Code § 6-1.1-12.1 et. seq. provides for a program of real and personal

property tax abatement within “economic revitalization areas” (“ERAs”) and provides for the

adoption of such a program;

WHEREAS, the Greenwood Common Council established on December 4, 2017 by

Resolution No. 17-34, an ERA within the City of Greenwood;

WHEREAS, the City of Greenwood Redevelopment Commission (“Commission”), on

March 8, 2016, by Resolution No. 2016-04, designated an area within the City’s corporate

boundaries as an Economic Development Area (“EDA”) as defined in Ind. Code § 36-7-14, and

designated the entire EDA as an allocation area as defined in Ind. Code § 36-7-14-39 as amended

by Resolution No. 2018-04 adopted February 15, 2018;

WHEREAS, Greenwood Common Council tax abatement approval procedure provides

that when property is located in an ERA and is also located in an allocation area, an application

for property tax deduction as provided by Ind. Code § 6-1.1-12.1 may not be approved unless the

Redevelopment Commission, who designated the allocation area, favorably recommends the

application for property tax deduction;

WHEREAS, Quality Custom Distribution Services, Inc. (“Quality Custom Distribution")

is leasing certain real estate from GLA Properties LLC (“GLA”), a complete legal description of

which is included in Composite Exhibit A, attached hereto and incorporated herein (“Real Estate”),

which is located within the ERA designated in Council Resolution No. 17-34, and is also located

in the allocation area designated in Commission Resolution No. 2016-04, as amended;

WHEREAS, the said GLA site is properly zoned I-1 Industrial Light use according to the

Official Zoning Map of the City of Greenwood;

WHEREAS, Quality Custom Distribution intends to invest approximately invest in

personal property improvements, approximately $10,530,275 in manufacturing equipment;

$600,000 in logistic distribution equipment; and $550,000 within the EDA in IT equipment to

store and distribute foods, which investment will create additional employment positions and

additional payroll in the City;

WHEREAS, Quality Custom Distribution filed its Statement of Benefits Personal Property

(SB-1 / PP) with the City of Greenwood and submitted its Application, copies of which are

attached hereto as part of composite Exhibit A, on August 29, 2019;

WHEREAS, the Commission reviewed and approved the Application for Property Tax

Abatement (the "Application") at a public meeting on September 10, 2019 by adoption of

Resolution 2019-14, a copy of which is attached hereto as Exhibit B (without exhibit, as the

Resolution exhibit is identical to Composite Exhibit A attached hereto) and incorporated herein;

WHEREAS, the Greenwood Common Council has reviewed Quality Custom

Distribution's Statement of Benefits Personal Property Improvements (SB-1 / PP) form and has

been otherwise duly advised in the premise and has determined that it is in the best interests of the

City to allow the deductions as described in Composite Exhibit A;

Resln. No. 19-20

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NOW, THEREFORE, BE IT RESOLVED BY THE GREENWOOD COMMON

COUNCIL THAT:

Section 1. The Real Estate in which the personal property will be installed is found to

be within the ERA established by Common Council Resolution No. 17-34, and is within

Greenwood Common Council’s jurisdiction.

Section 2. The Greenwood Common Council hereby determines that it is in the best

interest of the City to allow the deduction under Ind. Code §6-1.1-12.1-4.5 within the said ERA

based upon the following findings:

(1) The estimate of the cost of the new machinery and equipment is reasonable

for equipment of that type.

(2) The estimate of the number of individuals who will be employed can be

reasonably expected to result from the proposed described distribution machinery

and equipment installation.

(3) The estimate of the annual salaries of the individuals who will be employed

can be reasonably expected to result from the proposed described distribution

machinery and equipment installation.

(4) The number of individual opportunities for employment, both temporary

and permanent, and the compensation to be paid to employees, along with the value

of the improvements, create benefits of the type and quality anticipated by the

Greenwood Common Council within the ERA and can reasonably be expected to

result from the proposed described distribution machinery and equipment

installation.

(5) The totality of benefits is sufficient to justify the deductions.

Section 3. Quality Custom Distribution shall be entitled to the deductions provided by

Ind. Code § 6-1.1-12.1-4.5 for a period of five (5) years with respect to the Machinery and

Equipment as contemplated by and reflected in Composite Exhibit A according to the following

schedule:

Year 1: 100%

Year 2: 80%

Year 3: 60%

Year 4: 40%

Year 5: 20%

Section 4. In partial consideration of the value of the property tax deductions granted

to Quality Custom Distribution by the City, Quality Custom Distribution hereby agrees and

commits to not file any personal property tax assessment appeal, review, or other challenge

(“Appeal”) of the personal property tax assessments made for the Personal Property during the

time periods for which personal property tax deductions are authorized under this Resolution,

unless the Personal Property return is modified by the Assessor or Auditor from the original filing.

In the event Quality Custom Distribution desires to file such an Appeal, Quality Custom

Distribution shall provide the City with a copy of the Appeal no later than the date it files the

Appeal. Violation of the restrictions on and conditions applicable to an Appeal shall permit the

City to terminate the property tax deductions authorized under this Resolution.

Section 5. The Statements of Benefits Personal Property (SB -1 /PP) submitted by

Quality Custom Distribution is hereby approved.

Section 6. In the event that the ERA designation should terminate, this termination

does not limit the period of time the applicant or successor owner is entitled to receive a partial

abatement of property taxes relative to equipment installation activities completed before the date

the ERA designation is terminated.

Resln. No. 19-20

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Adopted by the Common Council of Greenwood, Indiana, this day of

_______________, 2019.

Michael Campbell, President

Greenwood Common Council

FOR: AGAINST:

Linda S. Gibson

Ezra J. Hill

Bruce Armstrong

Ronald Bates

J. David Hopper

David Lekse

Michael Campbell

Robert Dine

Andrew K. Foster

ATTEST:

Jeannine Myers, Clerk

The foregoing Resolution passed by the Common Council of the City of Greenwood,

Indiana, on the day of , 2019, is presented by me this day of ,

2019, at o’clock .m. to the Mayor of the City of Greenwood.

____________________________________

Jeannine Myers, Clerk

The foregoing Resolution passed by the Common Council of the City of Greenwood,

Indiana, on the day of , 2019, is signed and approved by me this

day of , 2019, at o’clock .m. to the Mayor of the City of

Greenwood.

____________________________________

MARK W. MYERS, Mayor of the

City of Greenwood, Indiana

CITY OF GREENWOOD

PERSONAL TAX ABATEMENT

APPLICATION

EXHIBIT A - GCC RES. 19-20

APPLICATION FOR PERSONAL PROPERTY TAX ABATEMENT CITY OF GREENWOOD

Organization/Entity Requesting Abatement

Name: Quality Custom Distribution Services, Inc. Address: 18301 Von Karman Ave, #1100 City: _Irvine State: __ CA_ Zip: _92612 ____ _

Primary Contact: Ryan Hammer Title: President Phone: 949-247-8000 Email: [email protected]

Property Owner (if different)

Name: Scannell Properties, LLC Address: 8801 River Crossing Blvd, Suite 300

City: Indianapolis State: IN Zip:46240

Primary Contact: Courtney Lehman Title: Managing Director Phone: 317-843-5972 Email: [email protected]

Description of Project

Project Location/Address: off Collins Rd on the SE corner of its intersection w/ Stacie's Way

Parcel Number: Scannell to provide

Brief Description of Project: 105,000SF BTS cold storage warehouse and distribution facility.

Current Zoning of Property: I-1 Industrial_

CmTent Assessed Value of Property:

Building: $0


Inventory: $0 Equipment: $11,680,275

Brief Company History: Established in 2006 as a division of Golden State Foods, Quality Custom Distribution (QCD) provides custom distribution services customers throughout the United States. The company is headquaitered in Irvine, California and provides over 17,000 deliveries a week from 19 distribution centers located throughout the country.

Project Details

Requested Abatement: 1) Real Property I Personal Property 3) Both

4) Vacant Building

Length of Abatement Requested: 5Jears Abatement Schedule Requested: • Standard 2) Custom (please attach)

Type of Facility: _cold storage warehouse and distribution Facility Size (Sq. Ft.) 105,000 Site Size (acres): 9+/-

Will Real Estate be Leased or Purchased: Leased

Anticipated Closing Date: 9/30/2019

Projected Construction Start Date: 1114/2019 (Scannell to confirm)

Projected Operations Start Date:6/30/2020

Project will be: II (b)

new company new expansion

relocation in Indiana relocation from out of state

Will project be developed in stages: (a yes II no If yes, explain: The Company will occupy 105,000SF.

What are the projected investments and jobs goals? 99 new jobs & $4,700,000 in capital investment and $11,680,275 in M&E.

Real Estate: Improvements: Machinery/Equipment:_"'"'$1"-"1~6~8~0~27~5 _______________ _ Jobs Retained: o

-----------------------~

Jobs Created: 99

If applicant is a corporation:


What is the State of incorporation: DE In what states is the corporation licensed to do business: CA, TX, NY, IL,

Which approvals or permits will this project require?

(a) (b) .)

Zoning change Annexation Plat approval Development plan

(e) .) (h)

Variance Special exception Building pe1mit Other --------

Will additional public facilities/infrastructure be required? 1) YES I) NO If yes, please describe and state who is installing: ________ _

Provide names of any parent, subsidiary, and/or affiliated entities: Golden State Foods

Do you have legal counsel: IYES 2)NO If yes:

Firm: ___ O_,,__u_a_li_ty~C_u_s_to_m_D_is_tr_i_bu_t_i_on_S_e_r_v_ic_e_s~,I_n_c_. _______ ~ Contact: Alex Luu ---------------------------Address: 18301 Von Karman Avenue, Suite 1100, Irvine, Ca 92612-1009 Phone: 949-2477-8036

------"---'----'-'-~-'-'-'--------------------~

Email: [email protected] Explain why abatement is necessary for this project: The property tax abatement would help reduce the cost ofreal estate and is a material factor in the company's decision to locate the new facility in Indiana.

Summary of Tax and Abatement Projections for Abatement

Duration of Abatement: 5 Years

I. Cunent Conditions: $0

A. B. C. D.

CmTent Annual Real Estate Taxes: Cunent Annual Personal Property Taxes: Combined Total: Projected Combined Total:

0


II. Projected Conditions Without Abatement:

A. Projected Annual Real Estate Taxes: $0 B. Projected Annual Personal Property Taxes: $651,348 c. Combined Total: (from above) l.Q D. Projected Combined Total: $651,348

III. Projected Conditions With Abatement:

A. Projected Real Estate Taxes: $0 B. Projected Abatement: $0 c. Projected Personal Property Taxes: $223,485 D. Projected Abatement $427,862

Projected Total

E. Total Amount Abated: $427,862 F. Total Taxes to be Paid: $223,485

Note: Attached Worksheets


LAND DESCRIPTION 9 Acre Tract 8/12/19 A part of Block A in Worthsville Commerce Center, per plat thereof, recorded as Instrument Number 2018-025077 in the Johnson County Recorder’s Office, the land being more particularly described as follows: Beginning at the northwest corner of said Block A; thence along the northern and eastern boundaries of said Block A the following two (2) courses: 1) North 89 degrees 14 minutes 48 seconds East (basis of bearing = Grid North - Indiana State Plane Coordinate System - East Zone) 862.19 feet; 2) South 00 degrees 18 minutes 23 seconds East 453.72; thence South 89 degrees 14 minutes 48 seconds West 865.84 feet to western boundary of said Block A, said western boundary also being the eastern boundary of Collins Road; thence North 00 degrees 08 minutes 34 seconds East 453.76 feet along said eastern boundary of Collins Road to the POINT OF BEGINNING. Containing 9.00 acres, more or less.


QUALITY CUSTOM DISTRIBUTION | CUSHMAN & WAKEFIELD

QUALITY CUSTOM DISTRIBUTION – GREENWOOD, IN

Satellite Imagery: Site


WORKSHEET NO. 1 (Note: If the requested abatement is for other than the standard 10 year schedule, this Worksheet should be modified accordingly.)

CURRENT R.E. Tax Rate $_~2=·..o.18=8"-'4'-----

Land: Acres : $ Assessed Value : $ Assessed Taxes Paid

Bldg(s): Square Feet : $0 Assessed Value : $0 Assessed Tax:es Paid

Year 1

BUILDINGS

Abatement Rate: 100%

Amount Abated: $0

Manufacturing Eguil)ment

Abatement Rate: 100%

Amount Abated: $133,725

Taxes Dues: $0

Taxes w/o Abatement Five Year Total: $651 348

Other Taxes Increased Taxes on Land After Development: Taxes on New Non Manufacturing Equipment: Taxes on Inventory:

Year2

80%

80%

$150,147

$37,537

ESTIMATED TAX ABATEMENT IMPACT-5 Years Project Name :Project Pelican Location: City of Greenwood Current Date: 8/28/19

Year3 Year4 Year 5 Year6 Year7

60% 40% 20% 0% 0%

60% 40% 20% 0% 0%

$84,669 $43,114 $16,208 $0 $0

$56,446 $64,671 $64,832 $

Ten Year Total Other Taxes: $ Q

PROPOSED R.E. Tax Rate $ (Sarne as current)

Land: Acres : $ Est. Assessed Value : $ Est. Annual Taxes

Bldg(s): $ Projected Investment : $ Est. Assessed Value : $ Est. Annual Taxes

Mfg. Equipt. Investment: $_~11=68=0=.2~7~5~-----

Non Mfg. Equipt. Investment: $ _____ _

Year 8

0%

0%

$0

$

Year9

$0

$

0%

0%

Taxes w/ Abatement Five Year Total Paid: Five Year Total Abatement:

Year 10

%

0%

$0

$

$223,485 $427.862

TOTALS

$427,862

$223,485


WORKSHEET NO. 2 (Note: If the requested abatement is for other than the standard 10 year schedule, this Worksheet should be modified accordingly.)

CURRENT R.E. Tax Rate

Land: Acres : $ Assessed Value : $ Assessed Taxes Paid

Bldg(s): Square Feet : $0 Assessed Value : $0 Assessed Taxes Paid

Year I

(A) Current Land Taxes Paid $

(B) Current Building Taxes Paid $0

Assessed Value Proposed buildings $ (C) Est. Taxes on Proposed Buildings $0

Abatement Percentage by Year 100% (D) Taxes Abated $

Assessed Value Proposed buildings $ (C) Est. Taxes on Mfg. Equipt. $

Abatement Percentage by Year 100% (D) Taxes Abated (E) Est. Property Taxes on Developed Land $

(E) Est. Taxes on New Non Mfg. Equipt. $

(E) Est. Taxes on Inventory $

(F) Taxes on Existing Personal Property $

(X) CURRENT TAXES (A+B+F) $

(Y) EST. TAXES WITHOUT ABATEMENT

(Z) EST.TAXES WITH ABATEMENT (Y-D's) $0

ESTIMATED TAX ABATEMENT IMPACT-5 Years Project Name: Project Pelican Location: City of Greenwood

Current Date:

PROPOSED R.E. Tax Rate $(Sarne as current)

Land: Acres Est. Assessed Value

:$_ Est. Annual Taxes

Bldg(s): $ Projected Investment :$ Est. Assessed Value :$ Est. Annual Taxes

Mfg. Equipt. Investment: $

Non Mfg. Equipt. Investment: $550,000

Year2 Year3 Year4 Year 5 Year6 Year? Year8 Year9 Year IO

$ $ $ $ $ $ $ $ $

$0 $0 $0 $0 $0 $0 $0 $0 $0

$ $ $ $ $ $ $ $ $ $ $

95% 80% 65% 50% 40% 30% 20% 10% 5% $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $

80% 60% 40% 20% 0% 0% 0% 0% 0%

$ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $

TOTALS

$

$0

$

$

$

$

$

$

$


I hereby ce1tify, under penalties of perjury, that the info1mation and representations made in this application and the attached supporting documents are true and accurate statements.

Sig£ A#£-an_t __ ______

SS:

County of Residence:

Notary Public's Name (typed or printed)

My Commission Expires:


CALIFORNIA JURAT GOVERNMENT CODE§ 8202

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California

County of -~O"--'--r-'-A"'-'o'-'i8"1-'-t ______ _

. ·: ·

Place Notary Seal and/or Stamp Above

Subscribed and sworn to (or affirmed) before me on

this 21 ~ day of ~A~"¥\!----Ai"""'=~-.ic-~--· 20~, by Date Month Year

Name(,6) of Signer(Bt

proved to me on the basis of satisfactory evidence to be the person(81'who appeared before me.

Signature Signature of Notary Public

Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Document

Title or Type of Document: -----------------------------

DocumentDate: ___________________ Numberof Pages: _______ _

Signer(s) Other Than Named Above:-------------------------

©2018 National Notary Association


STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R4 / 11-15)

Prescribed by the Department of Local Government Finance

INSTRUCTIONS

FORM SB-1 I PP

PRIVACY NOTICE

Any information concerning the cost of the property and specific salaries paid to individual employees by the property owner is confidential per IC 6-1 .1-12.1-5.1.

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.

2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation of qualifying abatab/e equipment for which the person desires to claim a deduction.

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 or with the county assessor if there is no township assessor for the township . The 103-ERA must be filed between January 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 January 1 and the extended due date of that year.

4. Property owners whose Statement of Benefits was approved, must submit Form CF-1/PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6)

5. For a Form SB-1/PP that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/PP thatis approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. (IC 6-1.1-12.1-17)

Name of designating body

City of Greenwood Location of property

Off Collins Road on the SE corner of it intersection w/Stacie's Way

County

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.)

105,000SF BTS cold storage warehouse and distribution facility

Johnson

Manufacturing Equipment

R & D Equipment

Logist Dist Equipment

IT Equipment

Resolution number (s)

DLGF taxing district number

ESTIMATED

START DATE COMPLETION DATE

06/20/2020 09/01/2020

06/20/2020 09/01/2020

NOTE: Pursuant to IC 6-1.1-12.1 -5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT

COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE

Current values 0 0 0

Plus estimated values of proposed project 10,530,275 0 600,000 550,000

Less values of any property being replaced 0 0 0

Net estimated values upon completion of project 10,530,275 0 600,000 550,000

Other benefits:

I hereby certify that the representations in this statement are true. ized representative Date signed (month, day, year)

Page 1 of 2


FOR USE OF THE DESIGNATING BODY

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 _____ calendar years* (see below). The date this designation expires

is-------------- . NOTE: This question addresses whether the resolution contains an expiration date for the designated area.

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;

D Yes

D Yes

D Yes

D Yes

D No

D No

D No

D No

D Enhanced Abatement per IC 6-1.1-12.1-18 Check box if an enhanced abatement was approved for one or more of these types.

C. The amount of deduction applicable to new manufacturing equipment is limited to $ ________ cost with an assessed value of

$ . (One or both lines may be filled out to establish a limit, if desired.)

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 is allowed for:

D Year 1

D Year6

D Year2

D Year?

D Year3 D Year4

D Year8 D Year9

D Years

D Year 10

D Enhanced Abatement per IC 6-1.1-12.1-18 Number of years approved: ____ _ (Enter one to twenty (1-20) years; may not exceed twenty (20) years.)

I. For a Statement of Benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? D Yes D No If yes, attach a copy of the abatement schedule to this form. If no, the designating body is required to establish an abatement schedule before the deduction can be determined.

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 by: (signature and title of authorized member of designating body) Telephone number

( )

I Date signed (month, day, year)

Printed name of authorized member of designating body Name of designating body

Attested by: (signature and title of attester) Printed name of attester

* If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17.

IC 6-1.1-12.1-17 Abatement schedules Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten (10) years. (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits.

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EXHIBIT B - GCC RES. 19-20

greenwood common council resolution no. 19-20 a resolution … · by resolution no. 2018-04 adopted...

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