GREENWOOD COMMON COUNCIL ORDINANCE NO
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1 GREENWOOD COMMON COUNCL ORDNANCE NO AN ORDNANCE PROHBTNG TAX-EXEMPT USES OF REAL ESTATE WTHN TF DSTRCTS N THE CTY OF GREENWOOD UNLESS AGREEMENTS FOR PAYMENTS N LEU OF TAXES (PLOT) ARE N PLACE WHEREAS, since 2001, the City of Greenwood ( City ) has actively promoted, financed, and constructed numerous public works projects ( Projects ) to stimulate, attract, and encourage commercial development within certain Economic Development Areas within the City and to increase the assessed value of taxable and personal property within the City; WHEREAS, the Projects included the design and construction of road improvements, sanitary sewers, drainage improvements, and public safety to property within, and contiguous to, the City; WHEREAS, the Projects have resulted in numerous properties within the City being more adequately served by public infrastructure, which the City believes will enhance the City s tax base and expedite potential development within the City; WHEREAS, the City, acting through the City of Greenwood Redevelopment Commission and Board of Public Works and Safety, has financed Projects by issuing various types of notes and bonds, including revenue bonds, tax back bonds, and tax increment financing bonds to finance the Projects and has obligated the City and its taxpayers to pay principal and interest on the Bonds; WHEREAS, the cost of the Redevelopment Commission Projects to this date, including design, land acquisition, professional fees, construction costs, construction inspection costs, and capitalized interest are Fifty Three Million Nine Hundred Twenty Six Thousand Three Hundred Seventy-Six Dollars ($53,926,376) as shown on Exhibit A; WHEREAS, the annual debt payments for the Redevelopment Commission Projects are in excess of Four Million Fifty Seven Thousand One Hundred Twenty-Six Dollars and Nine Cents ($4,057,126.09) as shown on Exhibit A; WHEREAS, all of the Debt Payments shown on Exhibit A were/are to be paid from tax increment TF ) collected from real property taxes generated within the City s TF Districts; WHEREAS, substantially all of the real estate in the TF Districts would not be suitable for development if the City had waited for private development to pay the costs of extending roads, sanitary sewers, and drainage improvements to serve and benefit the real estate in the TF Districts; WHEREAS, the real property taxes generated within the TF Districts are necessary to pay the Debt Payments on the Bonds and to continue economic development projects within the City; WHEREAS, the funding of Projects to increase commercial assessed value within the City, and the generation of tax revenue within the TF Districts to pay for the Projects and the Debt Payments on the Projects has been, and will continue to be, a compelling governmental interest of the City; WHEREAS, the compelling interest of accelerating the creation of the City s tax base will continue to be to the benefit of all of the citizens of the City long after all the Debt Payments from the Projects have been paid; WHEREAS, the use of real estate in TF Districts by property owners who are exempt from paying real property taxes is inconsistent with the governmental interest in establishing TF Districts ( Tax Exempt Users fails to satisfy the primary purposes of the City in establishing the TF Districts because the exempt users are benefitting from the City s investment in the Projects without contribution to the Debt Payments or enhancing the tax base of the City; Page 1 of 2
2 WHEREAS, the use of real estate within a TF District by a Tax Exempt User prohibits the use of the real estate by a taxpayer; WHEREAS, there are presently numerous restrictions upon the use of land within the TF Districts, including overlay zoning; WHEREAS, there is a substantial amount of real estate within the City located outside the TF Districts that is available to Tax Exempt Users; WHEREAS, the City has previously required payments in lieu of taxes for a proposed tax exempt project within the Eastside TF (the Goodwill distribution center on Emerson Avenue); WHEREAS, the City is desirous of implementing a fair and uniform procedure for Tax Exempt Users to be located within the TF Districts by requiring the Tax Exempt Users to make payments in lieu of taxes (PLOT) that will contribute to the Debt Payments, allow the completion of more Projects, and enhance the tax base within the TF Districts; WHEREAS, the collection of PLOT from Tax Exempt Users furthers the City s compelling governmental interest that justified the creation of the TF Districts; WHEREAS, the establishment of a procedure which requires Tax Exempt Users to contribute to the costs of the Projects that benefit the real estate of a Tax Exempt User in the furtherance of the City s compelling governmental interest; and WHEREAS, the payments of PLOTS as set out in this Ordinance permits Tax Exempt Users to be located within the City s TF Districts and, therefore, is the least restrictive means of furthering the City s compelling governmental interests described in this Ordinance. NOW, THEREFORE, BE T ORDANED BY THE COMMON COUNCL OF THE CTY OF GREENWOOD, NDANA, THAT: Section 1: The following definitions are applicable to this Ordinance: a. Airport Allocation Area means the Airport Allocation Area as established by the Redevelopment Commission pursuant to Resolution No , located within the Eastside Economic Development Area. b. Allocation Area means a geographic area designated by the Commission and the City for the collection of Tax ncrement from real property taxes pursuant to nd. Code c. Bonds means any bond, note, or obligation issued by the City or the Commission to finance the Projects described in this Ordinance and in Exhibit A. d. Cabelas TF District means the Cabelas Allocation Area as established by the Redevelopment Commission pursuant to Resolution No , located within the Eastside Economic Development Area. e. City means the City of Greenwood, a municipal corporation located in Johnson County, ndiana. f. Commission means the City of Greenwood Redevelopment Commission established pursuant to nd. Code g. Debt Payments means the principal and interest payments on the Bonds made by the City or the Commission which are payable from TF or any other revenue controlled by the City. h. Downtown TF District means the Downtown Allocation Area as established by the Redevelopment Commission pursuant to Resolution No , located within the Eastside Economic Development Area. i. Eastside Economic Development Area means the EDA established on the eastside of Greenwood pursuant to Commission Resolution No and amended by Resolution Nos , , , , , , , , , , , , , , , , , j. Eastside TF District means the Eastside Allocation Area as established by the Redevelopment Commission pursuant to Resolution No , located within the Eastside Economic Development Area. Ord Page 2 of 5
3 k. EDA means the economic development area defined in the economic development plan for each TF District defined in this Ordinance as shown on attached Exhibit B. l. Fry Road Economic Development Area means the EDA established near the Greenwood Park Mall pursuant to Commission Resolution No and amended by Resolution Nos , , , and m. Fry Road TF District means the Fry Road Allocation Area as established by the Redevelopment Commission pursuant to Resolution No , located within the Fry Road Development Area. n. PLOT means payments in lieu of taxes made by an owner of real property, which is exempt from real property taxes under ndiana law and located within a TF District as described in this Ordinance. o. PLOT Agreement means a written agreement entered into between the City and the owner, or the proposed owner, of a parcel of real property within the TF Districts listed in Section of this Ordinance. p. Projects means roads, sanitary sewers, curbs, sidewalks, multi-use paths, storm sewers, drainage, and detention facilities financed by Bonds which Projects serve and benefit the TF Districts. q. Tax Exempt User means any owner, lease, or occupant of real property in a TF District described in this Ordinance who is exempt from the payment of real property taxes pursuant to nd. Code et. seq. or any other provision of ndiana law. The term shall not include real estate owned, operated, and used by federal, state, unit of local government, a local public school, or agency department, corporation, or entity created by the above described governmental entities to carry out the governmental purposes of the governmental entity. r. TF and Tax ncrement means the incremental increase in real property taxes collected in each TF District, after the base year established by the Commission in the Declaratory Resolution establishing the TF District. s. TF District means the geographic boundaries for each allocation area as shown on the attached Exhibit B. Section 2. The terms of this Ordinance shall apply to all real property located within the following TF Districts: a. Airport TF District; b. Cabelas TF District; c. Downtown TF District; d. Eastside TF District; e. Fry Road TF District; f. Any subsequently created TF District within the City. Section 3. Because of the City s stated and documented compelling governmental interest in collecting real property taxes from real property within its TF Districts, all users of real property which will result in the real estate being exempt from payment of all or part of the real property taxes, are prohibited in the TF Districts listed in Section above, unless the owner, or proposed owner, of the real estate has entered into a PLOT Agreement as described in the Ordinance. Section 4. A PLOT Agreement under this Ordinance shall: a. Be in writing and recordable form, cross referenced to the Owner s last deed of record; b. Be binding on the landowner and all successors in title; c. Contain a provision that PLOT will not apply, or will be reduced, by amount of real property taxes subsequently paid by the owner, as a result of all or part of the real property becoming taxable. d. Contain a covenant limiting the Tax Exempt User s right to appeal the assessed value of the real estate based on a valuation by comparable sales, capitalization of earnings, or any other valuation method other than replacement costs, less physical depreciation. This covenant shall remain for a period of ten (10) years after the initial assessment. This covenant shall not prohibit the landowner from appealing on the basis of construction costs, replacement costs, or other based theories of valuation. e. Contain an agreement that the landowner and its successors in title will make semiannual PLOT payments to the Commission, on behalf of the City. f. State that the Agreement to pay PLOT is superior to all liens against the real estate in the same manner as real property taxes pursuant to nd. Code Ord Page 3 of 5
4 g. Require any Mortgage or lien holder of record to execute a Subordination Agreement, subordinating the City s lien for the PLOT payments to the mortgage or lien, prior to the City s approval of the Project. Section 5. The payment of PLOT shall be subject to the following conditions: a. PLOT imposed under this Ordinance shall be made in semi-annual payments on or before May 10 and November 10 of each year. The PLOT shall begin in May one year following the first day of March when improvements resulting in the assessment are complete. b. f the owner of real estate acquires an improved site which was previously taxable, the PLOT payments will begin on the next May 10 after the taxable owner is no longer liable for real property taxes. c. The annual amount of the PLOT payments shall equal the assessed value of the Real Estate, as determined by the Johnson County Assessor, subject, however, to the covenant limiting appeal rights described in Section V(d) above; times the total tax rate which is used to determine the tax increment eligible to be collected by the City in the TF District. The tax rate will exclude rates, such as referendum rates, which would not be collected as TF by the City or Commission, if the real estate was taxable. d. The semi-annual bills for PLOT payments shall be billed by the City at least thirty (30) days prior to the due date and payable to: City of Greenwood Redevelopment Commission c/o City of Greenwood Controller 300 S. Madison Avenue Greenwood, ndiana Section 6. The provisions of this Ordinance shall not be construed to impose PLOT payments upon the owner or user of personal property which may be tax exempt under ndiana law. Section 7. This Ordinance shall not be construed to modify the power of the Greenwood Common Council to approve property tax abatement pursuant to ndiana law and to apply the provisions of nd. Code to PLOT payments, subject to the procedures, standards, and discretionary powers contained in the above statute. Section 8. A PLOT Agreement and any Subordination Agreement required by Section V(g) must be filed with the City and approved by the Board of Public Works and Safety prior to final approval of any use, or construction of the real estate by the Tax Exempt User, its agent, designee, or contractor. No PLOT payments will be imposed and a PLOT Agreement will not be required for the remodel or repair of any structure which has an approved tax exemption as of the date of this Ordinance. However, a PLOT Agreement will be required if: a. A new structure or expansion of an exempt structure is to be constructed by the Tax Exempt User. b. An existing, taxable building, structure, or other improvements are acquired by the Tax Exempt User; c. f the Tax Exempt User is expanding a previously exempt building, structure, or improvement, the PLOT payments shall only apply to the value of the expanded improvements. Section 9. The provisions of the Ordinance shall not be construed to pre-empt any term of the City s (nsert title of planning and zoning ordinance), other than provisions in that Ordinance allowing tax exempt users upon land within a TF District. Section 10. Should any portion of this Ordinance be deemed invalid or unenforceable for any reason, all remaining terms of this Ordinance shall remain in full force and effect. Section 11. This Ordinance shall be in full force and effect from and after its passage, approval and publication according to law. Remainder of this Page ntentionally Left Blank Ord Page 4 of 5
5 PASSED AND ADOPTED by the Common Council of the City of Greenwood, ndiana, this day of, J. David Hopper, President Greenwood Common Council FOR: AGANST: Linda S. Gibson Ezra J. Hill Bruce Armstrong Ronald Bates J. David Hopper Thom Hord Michael Campbell Brent Corey Tim McLaughlin ATTEST: Jeannine Myers, Clerk The foregoing within and attached Ordinance passed by the Common Council of the City of Greenwood, ndiana, on the day of, 2015, is presented by me this day of, 2015, at O Clock.M., to the Mayor of the City of Greenwood, ndiana. Jeannine Myers, Clerk The foregoing within and attached Ordinance passed by the Common Council of the City of Greenwood, ndiana, on the day of, 2015, is signed and approved by me this day of, 2015, at O Clock.M. MARK W. MYERS, Mayor of the City of Greenwood, ndiana Ord Page 5 of 5
6 CTY OF GREENWOOD Summary of Major Tax ncrement Finance Projects to Date As of 7/15/2015 Eastside TF Year Estimated Cost ncurred to Date Total Emerson Avenue Reconstruction 2003 $1,350,000 Fire Station Land Purchase 2003 $125,000 Main St./Graham Rd. reconstruction 2004 $1,230,000 Graham Road Expansion 2006 $1,900,000 Construction of Fire Station $2,275,000 Poly-Tainer ncentive 2007 $20,000 Public Safety Equipment (Fire Truck & Police Cars) 2012 $683,000 Avram Worldwide ncentive 2012 $45,000 One Click Ventures ncentives 2012 $589,706 Elona Biotechnologies 2013 $7,000,000 Greenwood Airport Capital - Hangar Acquisition & Remodel Phase $503,342 Worthsville Road Expansion 2013 $11,500,000 Worthsville Road 65 nterchange 2013 $11,000,000 Fiber Optic nfrastructure 2014 $50,000 City Center Remodel 2014 $4,513,488 Predevelopment Phase of Polk Bldg $53,734 Neovia Logistics ncentive 2015 $78,097 Freedom Park Aquatic Center 2015 $4,000,000 GPLC Project 2015 $122,892 $47,039,259 Fry Road TF New Fry Road Mall Entrance 2001 $600,000 Reconstruction of Fry Road from Madison to S.R $1,400,000 Police Cars 2012 $150,000 Sanitary Sewer Lift Station 2013 $440,000 Freedom Park Aquatic Center 2015 $4,000,000 Fry Road mprovement Project - Phase $250,000 Fry Road mprovement Project - Design Hybrid Ditch & Trail 2015 $47,117 $6,887,117 TOTAL AMOUNT OF MAJOR TF PROJECTS TO DATE $53,926,376
7 Exhibit B - Ord
8
9 Exhibit A-1
10 Points of nterest, North GOYll Elementary School 2 Northwest Annex Park 3 Northwest Park 4 Traits Pan 5 WeSlSi:le Par\; 6 Pool Park 7 Old City Park 8 Greenwood Middle School 9 Craig Pari: 10 Greenwood Community Center 11 Surina Square Park 12 Chiklr9n'sGartlenPark 13 lsom Elementary School 14 Northeast P<n 15 Northeast Elementary School 16 University Park 17 Clark P1easantlnlermediale 18 Si.mrrerfDl ""'" Plk 19 Woodmen Park 20 GreeflOOd High School 21 Freedom Pafc 22 Westwood Elementary School 23 Pleasant Crossing Elementary ~TracYTraii ""'" Corridor ~_... MAP LEGEND ::s (f s Wdo) -~-, (6' 9'WdtJ E>ilting WKwT" 110'.12'1'Me) -Em!inoPallr;Tlais 18' lzwdoj =-~ ~~\'d Sdewab (6 9'Wdtj --"""'" CilyPW.""'" j... -~-,~. ~.._.~_ /i 1!..,o._H Y f -- ' Fry Road Trail ~~,Area 'i' : :. ~ ibit i RD~ Re r115i91r-r\~.j. t ~hjs-l., t ~ , ~ ~ 1- r...7k ~...../1'-- f ~ '*-~, i "! r ~..., i \! " r ----l tr r-t... ' r
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