HomeMy WebLinkAboutConfirming a Property Tax Exemption for Information Technology Equipment Data Realty 1440 Ignition DrAttest:
RESOLUTION
4278 -13
Passed by the Common Council of the City of South Bend, Indiana
September 9,
20
13
City Clerk
Attest, President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
. September 10; 20 13
Approved and signed by me
SIPTf/oksfA I
20 i3 .
City Clerk
RESOLUTION NO. 1J L- N3
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, MAKING A FINAL DETERMINATION AND CONFIRMING A PROPERTY
TAX EXEMPTION FOR CERTAIN ENTERPRISE INFORMATION TECHNOLOGY
EQUIPMENT PURSUANT TO INDIANA CODE 6- 1.1 -10 -44 (DATA REALTY
NORTHERN INDIANA LLC PROJECT LOCATED AT 1440 IGNITION DRIVE IN THE
SIXTH COUNCIL DISTRICT
WHEREAS. The Common Council (the "Common Council) of the City of South
Bend, Indiana (the "City "), pursuant to Resolution No. 4174 -12 adopted by the Common
Council on April 24, 2012 (the "Declaratory Resolution "), provisionally declared subject
to the completion of the proceedings set forth in Indiana Code 6- 1.1 -10 -44 (the "Act ") and
Section III of the Declaratory Resolution that (i) Data Realty Northern Indiana LLC (the
"Company ") constitutes an Eligible Business under the Act and the Declaratory Resolution; (ii)
certain personal property of the Company will constitute Qualified Property (the "Qualified
Property") under the Act and the Declaratory Resolution; and (iii) the Qualified Property will be
exempt from property taxation for an unlimited term provided that the Company continues to
qualify for the exemption hereunder and under the Act; and
WHEREAS, pursuant to the Act and Indiana Code 5 -3 -1, public notice of the
adoption and the substance of the Declaratory Resolution was provided as well as setting forth
that a public hearing would be held on August 26, 2013, to receive and hear all remonstrances
and objections from interested persons; and
WHEREAS, a copy of the Declaratory Resolution and the public notice
referenced above was filed with the office of the St. Joseph County Assessor and with each
taxing unit in the County; and
WHEREAS, on August 26, 2013 the Common Council received and heard all
remonstrances and objections to the Declaratory Resolution from interested persons and_
considered the evidence presented.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its findings in the
Declaratory Resolution determining that the Qualified Property of the Company is and'shall be
exempt from property taxation for an unlimited term provided that the Company continues to
qualify for the exemption under the Act. The Common Council hereby approves of the form of
Letter Agreement attached to the Declaratory Resolution and authorizes the Mayor and Clerk to
execute and attest, respectively, the form of Letter Agreement attached to the Declaratory
Resolution.
SECTION II. The Comoro- Council further confirms that the final determination
and property tax exemption confirmation for certain enterprise information technology
equipment is based on Data Realty's representations that:
(a) It is engaged in a business that operates one or more facilities dedicated to
computing, networking or data storage activities;
(b) It is located in a facility or data center in Indiana;
(c) It invests in the aggregate at least $10,000.000 in real and personal property
in Indiana after June 30, 2009; and
(d) The average employee wage of the entity is at least 125% of the county
average wage for each county in which the entity conducts its business
operation.
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
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AUG 16 2013
CITY CLERK, SOUTH SEND, IN
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
13 -54 A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, MAKIN A FINAL
DETERMINATION AND CONFIRMING A PROPERTY TAX
EXCEPTION OF CERTAIN ENTERPRISE INFORMATION
TECHNOLOGY EQUIPMENT PURSUANT TO INDIANA
CODE 6- 1.1 -10 -44 DATA REALTY NORTHERN INDIANA
LLC PROJECT LOCATED AT 1440 IGNITION DRIVE IN
THE SIXTH COUNCIL DISTRICT
This bill was heard by the Community Investment Committee.
Karen L. White
Chairperson, Committee of the Whole
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CITY CLERK, SWIM ORNP, IN
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
July 26, 2013 SCOTT FORD, EXECUTIVE DIRECTOR
Council Member Gavin Ferlic, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
Data Realty Northern Indiana LLC
Dear Council Member Ferlic:
PHONE: 574/235 -9371
FAX: 574/235 -9021
Data Realty Northern Indiana, LLC was approved for a personal property tax abatement with an unlimited
term through Declaratory Resolution 4174 -12 adopted by the Common Council on April 24, 2012 . The
term is unlimited so long as the Company continues to meet the requirements of the Letter Agreement and
the statute. At that time the Company agreed to provide the Common Council with an updated property
listing before receiving the Confirming Resolution.
Attached you will find the updated property listing along with a copy of the Declaratory Resolution that
was approved previously. Attached also is the Letter Agreement previously signed by Rich Carlton of
Data Realty Northern Indiana, LLC along with the proposed Confirming Resolution.
Should you or any of the other Counc'il :members have any questions concerning the report or need
additional information, please feel free'to call'me at 235 -9278.
Sincerely,
Cl�a e"4,-
Kathy Hahn
Analyst- Economic Resources
Attachments
c: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
Dave Relos
Filed In Clerk's Office
61LL 2 6 2313
PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RFSOURCES
JiTIN KAIN 1`IA MELA C.iMEYFR DONALD E. INKS
EXHIBIT A
Qualified Property Listine
Data Realty Northern Indiana (DRNI) will locate a Project that will result in a capital investment
in real and personal property of $14,200,000 at 1440 Ignition Drive South at Ignition Park.
DRNI will be purchasing Qualified Property pursuant to Indiana Code 6- 1.1 -10 -44 in an amount
expected to equal $6,000,000. That property will include generators and other equipment used to
ensure an uninterrupted power supply to both enterprise hardware and networking equipment
located in the Data Center. An outline of the equipment is included below.
Currently, the enterprise equipment is still being bid and so a more detailed list is not available at
this time. Data Realty Northern Indiana is in the process of conducting a thorough analysis of all
enterprise equipment being installed at the Data Center, including a cost segregation analysis,
and it will provide a revised schedule with line item detail to the Council once that analysis is
complete and prior to the Council's consideration of the Confirmatory Resolution giving final
approval for this exemption.
Filed i
4Ur:t
BDDBOI 65468270
Data Realty Northern Indiana
County Property Tax Exempt Equipment
As of Fehruary 28, 2013
Asset No. Asset Description Date Placed in Estimated
p Acquired Value
Service Life
1
Server Room 1 (MOD]) 48Ux48 "Cabinets (55)
11/1/2012
5.00
263,277.57
2
Comm Room ISP System/Connections
11/1/2012
5.00
176,126.18
3
NOC Monitoring Equipment
11/1/2012
5.00
33,975.62
4
Inspiron 660
11/1/2012
5.00
1,578.50
5
EMX energy monitoring system 10 monitoring points
11/1/2012
5.00
5,922.64
6
Dell EqualLogic PS6100E Storage Array
11/1/2012
5.00
95,247.29
7
Wireless project
11/1/2012
5.00
23,599.84
8
HP - Pro]iant server DL360P GEN8 E5 -2609
11/1/2012
5.00
6,323.93
9
Data CenterBMS /Controls, monitoring systems
11/1/2012
5.00
325,245.15
10
Server Room I (MOD I) Security System
11/1/2012
7.00
100,766.47
11
Cable tray
11/1/2012
5.00
35,259.67
12
Raised access flooring - Room I(MOD])
11/1/2012
5.00
212,127.62
13
VESDA/ Clean Agent/ Fire Protection System
11/1/2012
5.00
351,712.49
14
Smardt Chillers (2)
11/1/2012
5.00
648,265.70
15
Evapco Condensers (2)
11/1/2012
5.00
553,001.46
16
Liebert CRAH (8)
11/1/2012
5.00
1,553,886.52
17
Eaton Transformer (2)
11/1/2012
5.00
161,996.51
18
Caterpillar Generators (2)
11/1/2012
7.00
1,206,715.32
19
Medium Voltage Switchgear
11/1/2012
5.00
241,343.14
20
Eaton Low Voltage Switchgear (2)
11/1/2012
5.00
919,239.02
21
Eaton Transformer & Distribution Panel (4)
11/1/2012
5.00
276,120.95
22
Mitsubishi 500 KVA Uninterruptible Power Supply (2)
11/1/2012
5.00
592,512.58
23
. Automatic Transfer Switches (3)
11/1/2012
5.00
55,827.93
24
Winsted control room console - NOC (3)
11/1/2012
7.00
21,267.25
25
Tripp Lite Metered PDU
1/16/2013
5.00
937.27
26
Tripp Lite 3 Phase Monitored PDU
1/17/2013
5.00
638.79
27
Tripp Lite Metered PDU
1/22/2013
5.00
361.29
28
Tripp Lite Metered PDU
1/22/2013
5.00
491.90
29
Circuit Breaker Units
1/25/2013
5.00
14,522.68
30
Circuit Breaker Units
1/30/2013
5.00
3,049.39
31
Commissioning
1/31/2013
5.00
1,282.51
32
Windows Server and SQL Server
2/1/2013
5.00
2,085.32
33
Cords
2/12/2013
5.00
919.87
34
APC Switched Rack PDU & Tripp Lite 3 -Phase Monitored
2/26/2013
5.00
8,064.59
35
48Ux48 Rack
2/26/2013
5.00
35,345.00
36
Tripp Lite PDU & Tripp Lite Heavy -Duty Power Supply
2/28/2013
5.00
728.40
Grand Total
7,929,766.35
Fil w ed In Own- Office
UL 713
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CITY CLZFJ tai OFEND, IN
1200 CouN n' -C17Y BURD1NG
227 W.JEFI•F.RSON BOULEVARD
SOUTH BEND, INDIANA 416601-1830
PHONE' 574 /235 -9371
FAX 574/'235 -9021
CITY OF SOUTH BEND P1;TE BurDWEG, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
April 16, 2012
Derek Dieter, President
South Bend Common Council
435 County -City Building
South Bend, Indiana 46601
REMECLARATORY RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AUTHORIZING A.PROPERTY TAX EXEMPTION FOR QUALIFIED
ENTERPRISE INFORMATION TECHNOLOGY EQUIPMENT PURSUANT TO INDIANA CODE
6- 1.1 -10 -44 (DATA REALTY NORTHERN INDIANA, LLC PROJECT LOCATED AT 1440
IGNITION DRIVE SOUTH IN THE SIXTH COUNCIL DISTRICT)
Dear President Dieter:
Attached for filing please find the above- referenced Declaratory Resolution to be considered by the
Common Council at its April 23, 2012 meeting. Approval of this Resolution would be the first step in
providing property tax exemption for qualifying enterprise information technology equipment to Data
Realty Northern Indiana, LLC. Attached as an Exhibit to the Resolution is a Letter Agreement wherein
Data Realty states their project meets the requirements of State law in order to receive this exemption.
Specifically, the project investment will be about $14.2 million, exceeding the required $10.0 million. $6.0
million of the investment is expected to be in equipment qualifying for the exemption. Additionally, the
jobs to be created will have an average wage of $28.36/hour, exceeding the requirement that they be greater
than 125% of the county average. The county average is about $18.50 /hour and 125% would be
$23.13/hour. The Resolution and Letter Agreement are both in the form prescribed by Resolution 4089 -11
approved by the South Bend Common Council March 14, 2011. Don Inks will be presenting the
Resolution.
Your favorable consideration is requested. Please do not hesitate to contact me if
information.
Filed In Clerk's MCC:
Sin erely,
D nald E. nks
irector, Economic Development
CoatMl, -smy DwaoPMENT
PAMELA C. ME'fE'n
5 ?9/735.9664
Fex: 5741235 -9469
P �33
CITY CLLR K Sol.-- -
EC,ONOmic DI.vE[ oPMENT
DONALD r:. rrx:
5741235 -9371
EXHIBIT A
LETTER AGREEMENT
(see attached)
BDDBOI 6546518v3
Filed Pro
k r
r.
JUL L
CITY fit ;'. � sti`�9 11
LETTER AGREEMENT REGARDING
ENTERPRISE INFORMATION TECHNOLOGY EQUIPMENT
TAX EXEMPTION
April 16, 2012
The Common Council
City of South Bend, Indiana
227 West Jefferson Blvd. • Suite 400 S
South Bend, Indiana 46601
Dear Honorable Council Members:
Data Realty Northern Indiana, LLC (the "Company ") requests that the Common Council (the
"Common Council ") of the City of South Bend, Indiana (the "City "), take such action as is
necessary and required pursuant to Indiana Code § 6- 1.1 -10 -44 (the "Act ") in order to determine
that certain enterprise information technology equipment of the Company is exempt from
property taxation pursuant to the Act.
The Company proposes to locate a project at 1440 Ignition Drive South (the "Site ") which is
located within the boundaries of the City (the "Project ") which Project will result in a capital
investment in real and personal property at the Site of $14.2 million. $6.0 million of the personal
property improvements will be attributable to the installation at the Site of enterprise information
technology equipment which will include but be not limited to the equipment listed at Exhibit A
attached hereto and incorporated herein and also any enterprise information technology
equipment which may in the future replace the equipment listed at Exhibit A. Additionally, the
jobs created by the Project will result in an average employee wage of $28.36 per hour, which
exceeds 125% of the county average wage for St. Joseph County, Indiana.
On behalf of the Company, the undersigned hereby certifies that Company constitutes an
"Eligible Business" as such term is defined in the Act because the Company meets each of the
following requirements:
(a) The Company is engaged in a business that, upon completion of the Project, will operate
one or more facilities dedicated to computing, networking, or data storage activities;
(b) The Company is located in a facility or data center in Indiana;
(c) The Company will have invested upon completion of the Project in the aggregate at least
$10,000,000 in real and personal property which investment will have occurred after
June.30, 2009; and
(d) The average employee wage of the Company at the Site is at least 125% of the county
average wage for St. Joseph County, Indiana.
BDDB01 65468270
The undersigned, for and on behalf of the Company, further hereby certifies that the enterprise
information technology equipment listed at Exhibit A attached hereto and incorporated herein is
Qualified Property because it has been or will be purchased after June 30, 2009, and it
constitutes:
(1) Hardware supporting computing, networking, or data storage function, including servers
and routers;
(2) Networking systems having industry designation as equipment within the "enterprise" or
"data center" class of networking systems that support the computing, networking, or data
storage functions; or
(3) Generators and other equipment used to insure an uninterrupted power supply to
equipment described subparagraph (1) or (2) above.
The undersigned further certifies for and on behalf of the Company that none of the Qualified
Property constitutes computer hardware designed for single user, workstation or departmental
level use.
The Company requests that all enterprise information technology equipment which would
constitute Qualified Property as defined herein and in the Act be deemed exempt from property
taxation as provided by the Act.
The Company acknowledges and agrees that, to the extent that it no longer qualifies as an
Eligible Business as defined herein and under the Act or to the extent that the enterprise
information technology equipment for which the Company desires the tax exemption no longer
qualifies as "Qualified Property" as defined herein or in the Act, said enterprise information
technology equipment will no longer be subject to the tax exemption.
124ea IAA,?
it ompanyll)
By:
Printed Name:—/?/(
Its: �eh Zen 7
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BDDBOI 65468270
CITY ACKNOWLEDGEMENT:
The undersigned, acting for and on behalf of the City, enters into and acknowledges the terms of
the foregoing Letter Agreement: The Common Council, having adopted a declaratory resolution
(Resolution No. adopted on 20 —___), provided notice as required by the
Act, and adopted a confirming resolution (Resolution No. , adopted on
20__) determining to grant the tax exemption provided by the Act, has completed the
necessary under the Act by the City to grant a property tax exemption for the Qualified Property
of the Company for an unlimited term so long as the Company meets the requirements of this
Agreement and the Act.
20
ATTEST:
City Clerk
BDDBOI 65468270
CITY OF SOUTH BEND, INDIANA
Mayor
Filed Pr,,.
O'ff'ice
JUL MU
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