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Resolutions_2000-1( �a' RESOLUTIO\ NO. 2000-1 GIBSO\ COliNTT, INDIANA REDEVELOP�IE\T COA111ISSION RESOLUTION ,�PPROVI\'G APPL[CATION FOR REAL A\'D PERSO\AL PROPERTY TAa DEDUCTIONS I\ AN ECON0�IIC REVITALIZATION AREA �1'HEREAS, on July 16, 1996, the County Council of the Gibson County, Indiana (the "Council") adopted Resolution No. 1996-3 (the "Resolution") designating the area described in Exhibit A as an economic re��italization area pursuant to LC. 6-1.1-12.1 (the "Economic Revitalization Area") and granting real and personal property tax abatement in the Economic Revitalization Area for a period of ten (]0) years; �'1'HEREAS, Toyota b4otor Manufacturing, Indiana, Inc. and/or an affiliate thereof andlor another entity (collecti��ely, the "Applicant") plan to construct, as described in an Application and a related Statement of Benefits submitted by the Applicant to the Council, attached hereto as Exhibit B (collecti��ely, the "Application"), an expansion of its automotive manufacturing facility that is located in the Economic Revitalization Area (the espansion is herein referred to as the "Project"); �'�'HEREAS, the Project will consist of: (i) the conswction on unimproved real estate, of new structures and other related real estate improvements in the Economic Revitalization Area (the "RedevelopmenP') and (ii) the installation in the Economic Revitalization Area of tangible personal property to be acquired by the Applicant, as its o�ti�ner, for use in the direct production, manufacture, fabrication, assembly; processing, refining or finishing of other tangible personal property, which tangible personal propert�� has ne��er before used by its owner for any purpose in Indiana (the "EquipmenP'); \VHEREAS, on February I�, 2000, the Council adop[ed Resolution No. 2000-4, approving and allo���ing the Applicant pursuant to I.C. 6- l.1-12.1 real and personal property tax deductions for ten (]0) years for the Rede��elopment and the Equipment located in the Economic Revitalization Area as part of the Project; as described in the Application; �1'HEREAS, [he Gibson County, Indiana Redevelopment Commission (the "Commission") established an area in Gibson County, Indiana as an allocation area for purposes of I.C. 36-7-14-39 (the "Allocation Area"), and the Economic Re��italization Area is located within the boundaries of the Allocation Area: WHEREAS, I.C. 6-1.1-12.1-2(1) provides that ifproperty located in an economic revitalization area is also located in an allocation area (as defined in I.C. 36-7-14-39 or I.C. 36-7-15.1-26), an application for the property tax deduction pro��ided by I.C. 6-1.1-12.1-1 et se . may not be approved unless the commission that designated the allocation area adopts a resolution approving the application; �VHEREAS, I.C. 6-1.1-12.1-� provides that a property owner must file certified deduction applications to obtain property tax deductions with respect to rehabilitation or redevelopment in an economic revitalization area; and I.C. 6-1.1-12.1-�.� provides that a person must file certified deduction applications to obtain property tas deductions for new manufacturing equipment installed in an economic revitalization area (such certified applications being referred to hereinafrer as "Deduction Applications"); :s - Vl'HEREAS, the Redevelopment and the Equipment comprising the Project will be located in both the Economic Revitalization Area and the Allocation Area, and therefore property tax deductions with respect to [he Redevelopment and the Equipment may not be approved unless the Commission adopts a resolution appro��ing the Deduction Applications; VVHEREAS, the Commission has been requested by the Applicant to approve, pursuant to I.C. 6-1.1-12.1-2(I), its applications for property tax deductions for the Redevelopment and the Equipment located in the Allocation Area; and �VHEREAS, the Commission has reviewed the Application and desires to take action to approve, pursuant to I.C. 6-1.1-12.1-2.5(1), property [ax deductions with respect [o the Redevelopment and the Equipment to be located in the Allocation Area; NOW THEREFORE, BE IT RESOLVED THAT based on the information in the Application describing the proposed Project and the Commission's consideration ofo[her evidence, the Commission hereby finds that the allo�vance of property tax deductions for the Redevelopmen[ and the Equipment to be located in both the Economic Revitalization Area and the Allocation Area is of public utility and benefit and is consistent �vith the findings made and actions taken in the Resolution. BE IT FURTHER RESOLVED, that, pursuant to LC. 6-1.1-12.1-2.5(I), the Commission hereby approves the Application and approves the Deduction Applications to be filed by the Applicant to daim property tax deductions with respect to Rede��elopmen[ and Equipment located in bo[h the Economic Re��italization Area and the Allocation Area. ADOPTED and APPROVED at a meetinc of the Gibson County, Indiana Redevelopment Commission held on the 19'" dav of June. 2000. fSDS01 R\H 3553s6r1 GIBSON COUI�'TY, II�'DIANA REDEVELOPMENT COMMISSION �, � / � �' • i // � �i l� i • _%' 3�� Fx'ib:t A i aVr. nce �ipr,rry ^,��oo,:,� i a;7= ��.e 5cu�easc Ccar,�r ar,c a;ar, cr re ^tc�eas Cuar.er cf Se�C� Jl. 3�iC t7:E �VCrtI'tve� dttC Scua'wes: Ccar.ers cr Se:'cn �. ccc: Ir T�wr.sr.ic 2 Scu�r., �ar.g2 '0 `n.'e�, irt ?;::x� -.Nrsaic, G�tscn C::c:.i, 'r.ciar.a, s•«eil u a�e .�cr.�eas: Cuar,er ;; c a par. �' �e Sc��.eas: Gu:car ot Sac�cn c, arC �e Ncr�w962 Cuar2r ar.0 a car, �t the SccC^.ves: Cuar,sr cf Se�c- °, ectri in 7cwnahi� 3 �c_�_^„ :iar.se SO We2 �r L'nicrt Tcwcsr�ip, Glcacn Caunry, Ind�ara, mca �ata:larty- ee�c: ec as �ilcws Camrencr.g at a?. 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' .. f � „ � , �ny�:,, J��I �� !. � . ,`, I, �....,y_ �� �l�f���l-�f'�1�i:!.'r....� �.�.i i. �..,:.._ _ ,. . _ . - - - - - ' ' - " - "�s'---- 'i9�_J__�il�.� W � � � � r-1 J ri �( � N �' � �'g l 1 � �t � 8�8� � H O rl � ro � �� .� �� , � � , o •, u g I� 7 � P� �� ' � �� � �A ;u� � �� N � 10 �y����� �y�41 '� F.� 0 N � ,U� . Exhibit B . - 5�i a. APPLICATION FOR APPROVAL OF RE..�L AND PERSOtiAL PROPER7'Y TAX DEDUCTIONS " SUBIIITTED B1' T01'OTA �tOTOR �SA�UFACTURING, INDI�IA, INC. This .Application for Approval of Real and Personal Property Tax Deductions is submitted to the Gibson County Counci] (the "Council") by Toyota Motor Manufachuing, Indiana, Inc•, ("T'vlivtI") and/or an affiliate thereof and/or another entiry that will construct an expansion to an existine mo[or ��ehide manufacturine facility (7'M�4I, such affiliates and other entities collectively, thz "Applicant'�). pursuant to the oro�•isions of 17��. CODE § 6-1.]-12.1-] et se ., as amended. Pursuant to Resolutions \o. 1996-2 and 1996-3 (the "Resolutions"), the Council designated an azea identified in the Resolutions and described herein as the Property to be an "economic revitalization area" pursuant to I.C. 6-1.1-12.1, eranted real and personal propem� tar abatement in such azea for ten (] 0) years, and approved the Applicant's real and personal property deductions for ten (10) yeazs for the Facilit�� (as hereinafrer defined). The follow�ing information is provided in support of this Application: 1. Address of the Applicant. Tovota Motor Alanufacruring, Indiana, Inc. 4000 Tulip Tree Dri�•e P.O. Box 4000 Princeton, Indiana 47670-4000 2. Backeround of T?�S�4I. T�4'�4I is an Indiana corporation ultimately wholly-owned by Toyota ;�4otor Corporation, a leading Japanese motor vehicle manufacturer. e 3. The Proiect. The .4pplicant will expand its existing vehicle assembly facility in Gibson County (the "Facility") to increase the Faci lit�-'s capaciry for producing motor vehicles under the nameplates ofTo�•ota Motor Corporation by approximately 150,000 units annually. The project will consist of the construction of plant buildings and related real estate improvemenu and the installation of new manufacruring equipment in the buildings (the "ProjecP'). The Project will double the Facilin�'s production capacity to approximately 300,000 units per yeaz. Certain affiliates ofTMi�fl ma�� im�est in and/or o�m a portion ofthe real estate improvements and new manufacturing equipment as part of the Project. 4. The Economic Re��italization Area and Location of the Proiect. The property on wfiich the Project «ili be constructed (the "Propem�') is approximatelq 1200 Acres ofland bounded on the w�est b�� liS 41, bounded on the north by County Road 350 South, bounded on the east by Count}• Road 100 East as if extended to County Road 350 South, and bounded on the south by an 81 acre tract of properzy knoun u Schumeier Farms and a 10.1 acre tract of property owned by the To��n of Fon Branch. and ��as declared ar. "economic re�•italization area" pursuant to the Resolutions. 5. Description of the Proiect. The Applicant will expand the Facility to produce approximatel�• an additional I 50,000 units of motor ��ehicles under the nameplates of Toyota Motor Corporation. 'I�he Project wil] include the acquisition and installation.of additional operating equipment and special tooling for stampine, welding, painting, assembly and plastic molding functions necessary to expand the capacirv of the Facility to meet the projected increase in production volume. -2- ier � ��ia The Applicant expects that construction of the Project will commence in late 2000 and will be completed b}• approximateh� eazly 2003. Initial ��ehide production associated with the Project is expected to commence in eazly 2003. 6. Benefits of the Proiect. The benefits of the Project aze described below and further set forth on the Statement of Benefits attached hereto as Attachment I. The Statement of Benefits attached hereto as Attachment I is based on the best information available at the time of this filing. A. Increased Emolo��rnent. The Applicant anticipates ihat it will employ appro�imateh� 2,000 additional persons at the Project w�ith averaee compensation of522.50 per hour. The a� era�e compensation initially �� ill be lower than such amount, but w�ill graduall}• increase to 52250 per hour by late 2005. The Project will increue total emplo}�nent at the Faciliry to approximately 4,300. B. lncreased Propem� Tax Base. In completing the Project, the Applicant will invest at the Princeton site approximately $90,000,000 to 5170,000,000 in real estate improvements and approximately 5435,000,000 to $540,000,000 in new manufacturing equipment. As the requested property tax abatement is phased out according to the schedule pro��ided by starute, the assessment associated with this investrnent will be added to the local propem� tax base. -3- • , . �i The figures and dates above aze all estimates based on the best information available at this time and couid vary based on variations in pricing conditions, engineering considerations, and foreien currency exchanee fluctuations. 7. Qualification as an Economic Re��italization Area. The Property was declazed an "economic revitalization azea" pursuant to the Resolurions. m�soi awi �ssao%.i TOYOT.4 MOTOR MANUFACTURR�iG, I\�DIA.\A, Ii�'C. , s�(�� � Seizo Okamoto, President C! � ' '�'°_� STATEMENT OF BENEFITS ���?�� Siale Porm 27167 (R5/ N-95) �. , Form SB - 1 is proscnEed Cy �ne Slale Boatd al Tu Commiuioners, 1989 ��'� A[cach�ent I qJ,�� � FORM v�/ 56 -1 INSTRUC ilOf15: 7. This s�atemem rust De suDmi�red ro the aody Cesignatir,g Ne economrc revitilization area pnor ro Ne public hearing i/ Ne designabng Dody requires infc ma[icn ;rem me appficar; ;n rakins i�s Cr_isicr aoour wr,emer to cesisnate an Ec000mic Revi�aGzation A�ea. Otnervnse Nis s+atement m�sf De SuDmiue to tne Ceslgnatlng ooCy BEfORE a person installs [ne new manu/auu�mg equipment. or BEFORE [ne redevelopment or rena�rlicadon of real propertyl, wnicn tne person wisnes ro daim a Oeduaiort 'Projec�s' planned or commnted m alrer July 7. 7987 and areas Oesignared alter Juty 1. 7987 reqmre 57ATc'McNTOFBcNEF1T5. (IC6�7.7�12.7) 1. ApO�oval ol Ne desisnating DoCy IC+fy Council. Town Boe�d. COUney Council. etc.) must be oDtained pdor ro inivation W tne redevelapment orrehabilitauor. - or pncr m insa�la[ion of ine new manulacturrng eGuipment BFFORE a deCuttion may �e apptoved. 3. 70 oocain a cedur,ion, Fwm 322 E�. Real Esaee Improvemen[s and / or Form 322 ERA/ PP. New MacNnety, must De fletl wi�h [he covnry audieoc V.4: respecr ro real prope�ry. Form 312 ERA must ee �fed Dy Ne late` o% (t) May 70: er (2) ttirty (?OJ tlays aher a nouce of increase in �eal properry assessme� is rxeive0 lrom �ne �ownsnip assessor. Form 321 ERA / PP mu5f De filed OeRVeen MarC11 7 an0 May 75 Of NB a55e55mEnI yea/ in wN[h new manulat twing eyvipmen� Decomes assessa0le. unless a fiGng ex�ension nas Deen oDtained. A person who oD�ains a(li� eatensipn must �Jp Ne larm Detwee MaI[n 7 an0 June 70 of Nat yeaf. � �. a. Prc�erty owners wnose S[a�emen� ol Bene�[s was approved aher June 30. 1991 must suDmic Form CF - 7 ann m show compNAdc�N the Stateme: alBeraa:s. (fC6�7.1-i7.7S.E) �� .�'� oftaspayer ic}�oca )!etor >'armEac:uzing, Ind!ana, Inc. ss ot :axpa� ^: Is;ree' ane r.::r,.�er. city. s;are zr,c Z�? cxa/ �000 Zu!ip Iree Drive, P.O. Box 4000 7r:ncecon, Indiar.a �76i0-4000 F E'- Name ct rr.;ac; pe:son Richa:d J.�Hall, 9a�nes 6 itiorn0uzg, li S. Heridian St., Ind!anapolis, IV 4620» Name of cevgna�rg 7ccy G_CSC:; Ccur,:�' Cocnci: Wcanrn c1 pcper.� Se� fahi�'.: A actac'�eG �es4i^,ticn of n�l :ropery impmvem� (use adciuo.�/ sreets ilne=essaryl e See Ex`.iS1c A a:ca::�eC /ornew GiDsan � i �. !� u. `�:r'. ;ncne numter 31i � 231-i�16 �iuvan numttr �9 a�ss�� Lnicn =ovr,ship �ka SovnsEip ESTIMATED Star. �ate I CamcleGon Date Real Es'ate ha;e 2000 New Mtg Equipment ea-1� 2003 SaWnes_ 5.2.50 pez hocr NOTE: ?ursuar.:;o IC E-1.1-72.1-5.1 (e) (2) Ne COST cf:ne :rccer,y is rr.�oenual. Curtent •+afr. s Fics esi�a�ec :alues:f creccxa :rcie� Less vaNes of any ora0erty oeing recuutl Net esvnateC values u0o� �mD�eticn of projeei Assessed Value Esvm,ateo sclid waste amer,ee (;.our,CS) Estlma:ea nazarecus waste convertee (pounCS) **?Te abeve cosc es�imaces anC assessed value escinaces are approximacions Other�enefies: Dased on [�e Des[ inEomacion curzencly availabie :or ihe real esta[e ireroveaer.:s ar.d r�ac�_�ery covered. � Y a.:r•= �ea rec�esec;a[r. s�emaru St?zo Okaaoco, Pres:den: Assessed Value �mo-;n. cay. yeaq e \ � �r We have revieweC our prior actions relaGng ro the designation ot this economic revitalization area and find that the appiicanc mee[s me general stardzrds adopted in the resolution previously approved by this 6ody. Said resolution, passed under IC 6-7J•12.1•2S, pro- vides (or the lollowing limitatlons as authorizeC uneer IC 6-1 J-t2. �-2. A. The desigrated area has been Iimi;ed to a period of Ume nct to exceed N'� calendar years '(see below). The date this desigration expires is '�— � . B. The type of deduction that is allowed in the designated area is Iimited to: 7. Redevelopment or rehabilitation of real estate improvemen;s; � Yes ❑ N o 2. Installation of new manulacturing equipment; �7 Yes ❑ N o 3. Fesidentially distressed areas ❑ Yes I�No C.The amount ot deducuon applicable fcr new manufacturing equipment is limited to 5 � cost wiN an assessed value oi S N A D.The amount ol deduaion applicabie :o redevelepmen[ or rehabili;ation is limited to S N� value of S n'��' E. Other limitaeicns or condi;iens (speci�y) NO cost with an assessed F. The Ce?uc:icr, ter new rnanvtac:uring ecuipmert ins:alled ane tirst claimed eligible for deduction after July 1, 1997 is ailowed for. ❑ 5 yezr5 � 10 years Tne cecuaion pericc will be five (5) yea:s uNess Ne cesiGnatinS body has by resolulion specAied the ten (70) year perioc. Alsc we have revieweC the information contained in the statement of benefits and find that the estimates and expeccations are reason- ahle anC have determinee that �e rotaliry ol benefits is suKcient ;o justlty the deducfion described above. lgna�-re anc uue c/ aumcrizea memce:) cC t.� ,�. �`�-c-�-c��v .y: numCe; Y�/z.E�J �,CI c;�ia) � Y�r' G Y o 7 '4 � � �Designatec Cocy . I o. b� � � ��.... �: c2 //S/00 �ay, y�a�� ' If the desicratir5 tody limis the Une perioC during which an area is an economic reviCl'¢ation area, it does not 6mR the length af time a taupayer is ernUed ro receive a deduc:icr, ;o a numeer of years designated under IC 6•1.1 •12.1-4 or 4.5 Namety: (see tables below) Year M Deduction 15t 2nc scr e,r, iw Throe (3) Vaar peductlon 100% EE°6 Six (B) Year Detluetlon 66°6 50°6 Ten (10) Yaer Deduc[lon 80°/ 30°�0 20°0 �L�1� Exhibit A Location of Prooen.� The propem� on which the Project will be constructed is approximately 1200 acres of land bounded on the west by US 41, bounded on the north by County Road 350 South, bounded on the east by County Road 100 East as if excended to Counry Road 350 South, and bounded on the south by an 81 acre tract of property knowr as Schumeier Fazms and a 10.1 acre tract of property owned by the Towm of Fort Branch. \ame of Taxpayer and Description of Real Propenv Imnro��ements and �ew Manufacturine Equioment Toyota Motor Manufacruring, lndiana, Inc. (the "Applicant") will expand its existing vehicle assembh� facilitv in Gibson County (the "Facilin ") to increase the Faciliry's capacity for producing motor vehicles under the nameplates of Toyota Motor Corporation by approximately 15Q000 units annually. The project will consist of the construction of plant buildings and related rea] estate impro��ements and the installation ofnew manufacruring equipment in the buildings (the "Project"). The Project �t ill double the Facility's production capacity to approximately 300,000 units per year. Certain affiliates ofthe Applicant may invest in andior own a portion ofthe real estate improvements and new� manufacrurine equipment as p'art of the Project. � �. gbl a- Exhibit B ESTI�IATE OF E�IPL01'EES A:\� SALARIES AS RESLZT OF PROPOSED PROJECT Applicanc's pre�•iousl�•-announced ini tial expansion of the Faci lirv (Phase 2-announced Spring 1995) to increase producci� e capacin� to 1�Q000 units is currently under�•a�• wi[h a planned start-up set for Fall 2000. The current number of employees and related salary information rcported in Section 3 of Attachmrnt I represent the expected employment and salary information upon completion of Phase 2. The Project described in this application (Phase �) w�ill add an additional 2000 employees with esrimated avcrage compensation of 522.�0 per hour. A��erage compensation inirially will be lower than such amo�t, but w�ll gradually increase to 522.50 per hour by late 2005. ESTI�fATED TOTAL COST .4.\"D VALL� OF PROPOSED PROJECT Section 4 Real Estate Improvements Machinen� Assessed Assessed Cost Value" Cost Value•'• Cu*rent S1»,000,000- S>1,666,16i- 5750,000,000- 5100,OOQ000- values` 5245,000,000 Sfi1,666.666 $928,OOQ000 5123,733,333 Plus estimated 5 90,000,000 - 530,000.000 - 543�,000,000 - S�S,000000 - ��alues of 5170.000.000 5�6,666.66i 5540,000,000 572,000,000 proposed project � Lcss values of any propem bcing replaced -0- -0- -0- -0- Net esrimated 5245,000,000 - S 81,666,667 - 51,185,000,000 - 5158,000,000 - �aluesupon 5�15,000.000 513&.333,333 51,468,000,000 5195,733,333 completion oi project' As indicatcd above, the Phase 2 expansion is not yet compkted. I'he above amounu reported as "Curren[ Values" represent escima�es of the cosc and usessed value of the Faciliry upon complecion of Phase 2, as originally projected in [he Form SB-1's for Phase I and Phase II. � •• The assessed value of the real propem� improvemenss depmds on the assessment rntcred by the township. The abo��e estimate is stated as 1/3 of estimated construction costs. The actual assessed value is expected [o vary from this amoun[. •" The assessed � alue of machinery w�ill �'an� from this projected figure based on the specific dollar value associated with special tooling included within the machinery total. The above cost estimates and assessed value estimates for this Project (Phase 3) are approximatations based in the best information currenth� a� ailable for the real estate improvemrnts and machinery covered. Final figures may differ from the above. f�D5111 RXH 355BIA1