§ 153.17 REVIEW OF ECONOMIC REVITALIZATION AREA ELIGIBILITY BY COUNCIL.

   (A)   After review of the information provided in the application, the Common Council may find that the real estate under consideration meets the definition and standards of an economic revitalization area as defined in IC 6-1.1-12.1-1(1) as amended. In such case the Common Council shall pass a resolution declaring the area an economic revitalization area. The declaring resolution must:

      (1)   Contain a description of the affected area.

      (2)   Note whether the application is for real property improvements and/or personal property improvements.

      (3)   Be filed with the Allen County assessor.

      (4)   Include a determination of the period of deduction allowed per IC 6-1.1-12.1-3(d).

   (B)   After approval of a declaratory resolution, the Common Council shall publish notice in accordance with IC 5-3-1, as amended. The notice must state that a description of the affected area is available and can be inspected in the county assessor's office. The notice must also name a date when the Common Council will hold a public hearing for the purpose of receiving and hearing any and all remonstrances and objections from interested persons. In addition, the Common Council shall file this information, and a notice containing a Statement of Benefits Form with the officers of each affected taxing unit with authority to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5, at least ten days prior to the date of the public hearing.

   (C)   In reviewing the evidence, the Common Council shall also review the Statement of Benefits Form. The Common Council shall determine whether the area should be designated an economic revitalization area and/or whether a deduction should be allowed for the project, based on (and after it has made) the following findings:

      (1)   Whether the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of that nature and whether the estimate of the cost of the new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment (if applicable) is reasonable for equipment of that type.

      (2)   Whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described project, or

      (3)   If the designation is for new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, whether the estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products can be reasonably expected to result from the installation of the new manufacturing equipment.

      (4)   Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected from the proposed described project.

      (5)   Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described project.

      (6)   Whether, in the case of an economic revitalization area designation for an eligible vacant building as defined under IC 6-1.1-12.1(17):

         (a)   The estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed occupation of the eligible vacant building.

         (b)   The estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed occupation of the eligible vacant building.

         (c)   Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed occupation of the eligible vacant building.

         (d)   The occupation of the eligible vacant building will increase the tax base and assist in the rehabilitation of the economic revitalization area.

      (7)   Whether the totality of benefits is sufficient to justify the deduction.

   (D)   After considering all evidence presented, the Common Council shall take final action to determine whether the qualifications for an economic revitalization area have been met and to confirm, modify and confirm, or rescind the declaratory resolution. Such action may include:

      (1)   Adoption by confirmation of the declaratory resolution. The confirming resolution shall include the reasons upon which the determination is made.

      (2)   A finding that there is insufficient information and a deferral of action on the matter. The applicant shall be provided written notice of the reasons for deferral within ten days of that action.

      (3)   A determination that the real estate should not be designated as an economic revitalization area. The applicant shall be provided with written notice thereof.

   (E)   Upon confirming, or modifying and confirming a declaratory resolution by the procedures set forth herein, both the Allen County Auditor and the Common Council shall keep a permanent record of the designation of the subject economic revitalization area. Common Council shall also provide the Allen County Auditor with a final designation packet to be utilized in the review of applications for deduction pursuant to IC 6-1.1-12.1-5.

(Ord. G-05-97, passed 4-8-97; Am. Ord. G-23-00, passed 9-12-00; Am. Ord. G-19-04, passed 9-14-04; Am. Ord. G-16-08, passed 12-9-08; Am. Ord. G-8-18, passed 4-24-18)

§ 153.18 DESIGNATION PERIODS.

   Designation periods for newly designated economic revitalization areas shall expire on December 31, 2016, unless otherwise automatically extended in five-year increments per IC 6-1.1-12.1-9 or specified by the Common Council in its confirming resolution.

(Ord. G-05-97, passed 4-8-97; Am. Ord. G-14- 05, passed 7-26-05; Am. Ord. G-16-08, passed 12-9-08; Am. Ord. G-3-13, passed 2-26-13; Am. Ord. G-8-18, passed 4-24-18)

§ 153.19 DEDUCTION PERIODS AND ABATEMENT SCHEDULES FOR REAL PROPERTY.

   In determining whether an applicant is entitled to a deduction for real property improvement projects, the Fort Wayne Common Council shall qualify a designation by:

   (A)   Limiting the number of years of deduction (abatement) for improvements to real property in areas not designated as an economic development target area to three, five, seven, or ten years, based on the following Review System and corresponding abatement schedules:

TAX ABATEMENT REVIEW SYSTEM—REAL PROPERTY

	Points Possible	Points Awarded
INVESTMENT (30 points possible)
Total New Investment in Real Property (New Structure and/or Rehabilitation)
Over $1,000,000	10
$500,000 to $999,999	8
$100,000 to $499,999	6
Under $100,000	4
Investment per employee (both jobs created and retained)
$35,000 or more	10
$18,500 to $34,999	8
$6,250 to $18,499	6
$1,250 to $6,249	4
Less than $1,249	2
Estimated local income taxes generated from jobs retained
$80,000 or more	5
$30,000 to $79,999	4
$10,000 to $29,999	3
$5,000 to $9,999	2
Less than $5,000	1
Estimated local income taxes generated from jobs created (double points for start-up)
$30,000 or more	5
$10,000 to $29,999	4
$5,000 to $9,999	3
$3,000 to $4,999	2
Less than $3,000	1
ECONOMIC BASE (20 points possible)
Location quotient in designated occupation code (use majority occupation code of all created and retained jobs)
Greater than 1.0	5
Estimated percent of business done outside Allen County
Greater than 75%	15
50% to 74%	10
25% to 49%	5
JOBS (20 points possible)
Total number of permanent jobs retained
Over 250	10
100 to 249	8
50 to 99	6
25 to 49	4
10 to 24	2
1 to 9	1
Total number of permanent jobs created
Over 100	10
50 to 99	8
25 to 49	6
10 to 24	4
1 to 9	2
WAGES (20 points possible)
Median salary of the jobs created and/or retained
Over $47,999	20
$43,000 to $47,999	16
$38,000 to $42,999	12
$33,000 to $37,999	8
$28,000 to $32,999	4
Under $28,000	0
BENEFITS (10 points possible)
Major medical plan offered	7
Pension, tuition reimbursement, life insurance, dental insurance and/or disability insurance offered	3
SUSTAINABILITY
Construction uses green building techniques (i.e. LEED certification)	5
Construction uses techniques to minimize impact on combined sewer overflows	5
TOTALS
LENGTH OF ABATEMENT
20 to 39 points - 3 year abatement
40 to 59 points - 5 year abatement
60 to 69 points - 7 year abatement
70 to 100 points - 10 year abatement
* If average annual salary of the full-time jobs created by listed occupation is 10% or greater than the average salary for Allen County using current occupational employment statistics, and is eligible for a 10 or 7 year abatement, then the applicant is eligible for an alternate deduction schedule
10 Year
Year 1		100%
Year 2		100%
Year 3		100%
Year 4		100%
Year 5		100%
Year 6		90%
Year 7		80%
Year 8		65%
Year 9		50%
Year 10		40%
7 Year
Year 1		100%
Year 2		100%
Year 3		100%
Year 4		100%
Year 5		100%
Year 6		71%
Year 7		43%

 

   Notwithstanding the foregoing, when a project is located within a designated economic development target area and not defined as ineligible under § 153.15, then such project may receive a ten year deduction (abatement), without adhering to the Review System.

TAX ABATEMENT SCHEDULES—REAL PROPERTY

Year	Percentage
(1)   Three Year Abatement Schedule
1	100%
2	66%
3	33%
(2)   Five Year Abatement Schedule
1	100%
2	80%
3	60%
4	40%
5	20%
(3)   Seven Year Abatement Schedule
1	100%
2	85%
3	71%
4	57%
5	43%
6	29%
7	14%
(4)   Ten Year Abatement Schedule
1	100%
2	95%
3	80%
4	65%
5	50%
6	40%
7	30%
8	20%
9	10%
10	5%

 

   (B)   (1)   Allowing the owner of an eligible vacant building, a deduction from the assessed value of the building in accordance with the following terms and conditions:

         (a)   If the vacant building is 50 years or older, the owner of the building shall be entitled to a deduction as long as the building has been vacant for at least one year.

         (b)   If the vacant building is less than 50 years old, the owner of the building shall be entitled to a deduction as long as the building has been vacant for at least two years.

         (c)   If the vacant building is located in an Economic Development Target Area, the owner shall be entitled to a deduction as long as the building has been vacant for at least one year and the property is zoned for commercial or industrial use.

      (2)   The maximum period of a deduction awarded under this section is two years. For deductions approved for one year, the amount of the deduction shall be 100% of the assessed value of the building or part of the building that is occupied by the property owner or tenant of the property owner. For deductions approved for two years, the amount of the deduction shall be 100% of the assessed value of the building or part of the building that is occupied by the property owner or tenant of the property owner in the first year, and 50% of the assessed value of the building or part of the building that is occupied by the property owner or tenant of the property owner in the second year.

   (C)   Projects involving the redevelopment or rehabilitation of a speculative building may receive a ten-year phased deduction (abatement) without adhering to the city's review system. For purposes of this division, a SPECULATIVE BUILDING is any building development, construction, or rehabilitation of at least 50,000 square feet that is reasonably likely to create new jobs when the developer has no formal commitment from a buyer or tenant to purchase or lease the end product, whether the end product is a fully completed, move-in ready building or a partially completed shell suitable for build-out improvements by the future owner or tenant. Additional incentives for the final build out and personal property (equipment) may be considered upon the identification of the end user. Any additional incentives will adhere to the city's review system for real and personal property abatement at the time of submittal.

   (D)   Affordable housing projects applying to and meeting the criteria for the Indiana Housing Finance Authority for Low Income Housing Tax Credits are eligible for ten-year phased deduction (abatement) without adhering to the city’s review system. That ten-year phased deduction (abatement) will be as follows:

Year of Deduction	Percentage
1	100%
2	100%
3	100%
4	100%
5	100%
6	50%
7	40%
8	30%
9	20%
10	10%
11	0%

 

(Ord. G-05-97, passed 4-8-97; Am. Ord. G-23-00, passed 9-12-00; Am. Ord. G-16-08, passed 12-9-08; Am. Ord. G-1-12, passed 12-20- 11; Am. Ord. G-3-13, passed 2-26-13; Am. Ord. G-22-13, passed 10-8-13; Am. Ord. G-2-16, passed 2-9-16; Am. Ord. G-18-17, passed 7-25-17; Am. Ord. G-8-18, passed 4-24-18; Am. Ord. G-29-22, passed 12-13-22)

§ 153.20 DEDUCTION PERIODS AND ABATEMENT SCHEDULES FOR PERSONAL PROPERTY.

   In determining whether an applicant is entitled to a deduction for new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment as defined in IC 6-1.1-12.1-1(3), 6-1.1-12.1-1(12), 6-1.1-12.1-1(13) or 6-1.1-12.1-1(14), the Common Council shall qualify a designation by limiting the number of years of deduction for eligible personal property to three, five, seven or ten years based on the following Review System and corresponding abatement schedules:

	Points Possible	Points Awarded
INVESTMENT (30 points possible)
Total new investment in equipment
Over $5,000,000	10
$1,000,000 to $4,999,999	8
$500,000 to $999,999	6
$0 to $499,999	4
Investment per employee (both jobs created and retained)
$35,000 or more	10
$18,500 to $34,999	8
$6,250 to $18,499	6
$1,250 to $6,249	4
Less than $1,249	2
Estimated local income taxes generated from jobs retained
$80,000 or more	5
$30,000 to $79,999	4
$10,000 to $29,999	3
$5,000 to $9,999	2
Less than $5,000	1
Estimated local income taxes generated from jobs created (double points for start-up)
$30,000 or more	5
$10,000 to $29,999	4
$5,000 to $9,999	3
$3,000 to $4,999	2
Less than $3,000	1
ECONOMIC BASE (20 points possible)
Location quotient in designated occupation code (use majority occupation code of all created and retained jobs)
Greater than 1.0	5
Estimated percent of business done outside Allen County
Greater than 75%	15
50% to 74%	10
25% to 49%	5
JOBS (20 points possible)
Total number of permanent jobs retained
Over 250	10
100 to 249	8
50 to 99	6
25 to 49	4
10 to 24	2
1 to 9	1
Total number of permanent jobs created
Over 100	10
50 to 99	8
25 to 49	6
10 to 24	4
1 to 9	2
WAGES (20 points possible)
Median salary of the jobs created and/or retained
Over $47,999	20
$43,000 to $47,999	16
$38,000 to $42,999	12
$33,000 to $37,999	8
$28,000 to $32,999	4
Under $28,000	0
BENEFITS (10 points possible)
Major medical plan offered	7
Pension, tuition reimbursement, life insurance, dental insurance and/or disability insurance offered	1
SUSTAINABILITY
Construction uses green building techniques (i.e. LEED certification)	5
Construction uses techniques to minimize impact on combined sewer overflows	5
TOTALS
LENGTH OF ABATEMENT
20 to 39 points - 3 year abatement
40 to 59 points - 5 year abatement
60 to 69 points - 7 year abatement
70 to 100 points - 10 year abatement
* If average annual salary of the full-time jobs created by listed occupation is 10% or greater than the average salary for Allen County using current occupational employment statistics, and is eligible for a 10 or 7 year abatement, then the applicant is eligible for an alternate deduction schedule
10 Year
Year 1		100%
Year 2		100%
Year 3		100%
Year 4		100%
Year 5		100%
Year 6		90%
Year 7		80%
Year 8		65%
Year 9		50%
Year 10		40%
7 Year
Year 1		100%
Year 2		100%
Year 3		100%
Year 4		100%
Year 5		100%
Year 6		71%
Year 7		43%

 

TAX ABATEMENT SCHEDULES—PERSONAL PROPERTY

Year	Percentage
(1)   Three Year Abatement Schedule
1	100%
2	66%
3	33%
(2)   Five Year Abatement Schedule
1	100%
2	80%
3	60%
4	40%
5	20%
(3)   Seven Year Abatement Schedule
1	100%
2	85%
3	71%
4	57%
5	43%
6	29%
7	14%
(4)   Ten Year Abatement Schedule
1	100%
2	95%
3	80%
4	65%
5	50%
6	40%
7	30%
8	20%
9	10%
10	5%

 

(Ord. G-05-97, passed 4-8-97; Am. Ord. G-23-00, passed 9-12-00; Am. Ord. G-19-04, passed 9-14- 04; Am. Ord. G-16-08, passed 12-9-08; Am. Ord. G-1-12, passed 12-20-11; Am. Ord. G-3-13, passed 2-26-13; Am. Ord. G-22-13, passed 10-8-13; Am. Ord. G-18-17, passed 7-25-17; Am. Ord. G-8-18, passed 4-24-18)

§ 153.21 COMPLIANCE WITH STATEMENT OF BENEFITS AND COMPLIANCE WITH LAW AND OTHER REGULATIONS.

   (A)   All deduction applications filed with the Allen County Auditor for projects designated by the Common Council as economic revitalization areas must include a correct and complete Compliance with Statement of Benefits Form (CF-1) as prescribed by the Indiana Department of Local Government Finance. For designations approved after January 1, 2012, deduction applications must also include a Public Benefit Annual Update form provided by the city to the applicant and affirmed to its accuracy by the applicant that provides additional employment information by occupation classification for Allen County under current occupational employment statistics. The Compliance with Statement of Benefits Form must be filed with both the Allen County Auditor and the city Community Development Division according to the filing schedule listed in IC 6-1.1-12.1-5 and IC 6-1.1-12.1-5.5, as applicable.

   (B)   Compliance with Statement of Benefit Forms filed by an applicant must show the extent to which there has been compliance with the Statement of Benefits Form (SB-1) approved by the Common Council in designating the area an economic revitalization area. The Compliance with Statement of Benefits Form must be updated per IC 6-1.1-12.1-1 et seq. The Common Council shall monitor for substantial compliance those projects it designates as economic revitalization areas.

   (C)   Substantial compliance has been defined by the Common Council as:

      (1)   Meeting 75% or more of the numbers of full-time and/or part-time jobs stated to be created or retained as delineated in the original Statement of Benefits Form (SB-1) approved by the Common Council; and

      (2)   Meeting 75% or more of the total payroll stated to be created or retained as delineated in the original Statement of Benefits Form (SB-1) approved by the Common Council, within the time frame projected in the applicant's original approved Statement of Benefits Form.

   (D)   Within 45 days after receipt of a properly filed Compliance with Statement of Benefits Form, the Common Council will determine whether the applicant has substantially complied with the Statement of Benefits Form and, if not, whether the failure to substantially comply was caused by factors beyond the control of the applicant.

   (E)   Property owners, applicants, and tax abatement recipients that have not substantially complied with the terms of their original Statement of Benefits Form may have the remainder of their tax abatement rescinded by the Common Council.

   (F)   Property owners, applicants, and tax abatement recipients with projects involving improvements, including those to real property, that do not adhere to all applicable federal, state, and municipal statutes, regulations, ordinances and codes. including but not limited to all Indiana and Allen County Building Codes and the Allen County Zoning Ordinance, may have the remainder of their tax abatement rescinded by the Common Council. Adherence to all applicable federal, state, and municipal statutes, regulations, ordinances and codes must be maintained throughout all design, permitting, contractor licensure, and construction phases of the property project. The adherence shall he attested to on the initial tax abatement application and each annual Compliance with Statement of Benefits Form.

   (G)   An applicant that has received a deduction for real and/or personal property and:

      (1)   Ceases operations at the facility for which the deduction was granted; and

      (2)   Is found to have intentionally provided false information concerning plans to continue operations at the facility, may be determined by Common Council to be subject to repayment to the Allen County Treasurer of those property taxes that were deducted per the formula given in IC 6-1.1-12.1-12(e).

(Ord. G-05-97, passed 4-8-97; Am. Ord. G-14- 05, passed 7-26-05; Am. Ord. G-16-08, passed 12-9-08; Am. Ord. G-3-13, passed 2-26-13; Am. Ord. G-8-18, passed 4-24-18; Am. Res. R-83-19, passed 12-17-19)