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Home My Public Portal About051-2015 - Tax Abatement - Georgia Pacific - Color Box - EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO. 51-2015 A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 WHEREAS, Common Council has previously designated eight economic revitalization areas within the City of Richmond; and WHEREAS, I.C. 6-1.1-12.1 requires the Common Council as the designating entity to approve all Statements of Benefits required to be filed by property owners applying for deductions in assessed valuations for the installation of new manufacturing equipment or for the redevelopment or rehabilitation of real property; and WHEREAS, An owner of real property located in an economic revitalization area is entitled to deductions from the assessed value, pursuant to Indiana law, for a period of any number of years less than or equal to ten (10) years (i.e. one to ten years); and WHEREAS, An owner of new manufacturing equipment is also entitled to deductions from the assessed value, pursuant to Indiana law, for a period of any number of years less than or equal to ten (10) years (i.e. one to ten years); and WHEREAS, In order for Common Council to approve a Statement of Benefits to allow a deduction, it must make the following findings, to -wit: 1. That the estimate of value of the redevelopment or rehabilitation, as to real property, or the estimate of cost of the new manufacturing equipment, as to personal property, is reasonable for projects of that nature or equipment of that type. 2. That the estimate of number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 3. That the estimate of annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 4. That any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 5. That the totality of the benefits is sufficient to justify the deduction being applied at the eight -five percent (85%) rate as allowed by Ordinance No. 76-2011. 6. That installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-I. NOW, THEREFORE, the Common Council of the City of Richmond, Indiana, now makes the following findings: 1. That the estimate of value of the redevelopment or rehabilitation, as to real property, or the estimate of cost of the new manufacturing equipment, as to personal property, is reasonable for projects of that nature or equipment of that type. 2. That the estimate of number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 3. That the estimate of annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 4. That any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 5. That the totality of the benefits is sufficient to justify the deduction being applied at the eighty-five percent (85%) rate as allowed by Ordinance No. 76-2011. 6. That installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-1. NOW THEREFORE, be it ordained by the Common Council of the City of Richmond, that the following property owner meets the requirements for property tax assessed valuation deductions, as follows: EUIPMENT — 10 YEARS Georgia-Pacific Corrugated LLC Jobs Retained: 350 Jobs Created: 10 Estimated New Value: $7,787,000.00 Dated: July 23, 2015 Passed and adopted this day oW-9 2015, by the Common Council of the City of Richmond, Indiana. President (Dr. Ronald Oler) ATT ST: (Karen Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, this/i/ day of 015, at 9:00 a.m. 70 (Karen Chasteen, IAMC, MMC) APPROV D by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of 2015, at 9:05 a.m. �_� �a, ayor (Sarah L. Hutton) ATTE �ear`enCh�asteen, IAMC, MMC) Georgia Pacific Corrugated LLC 623 South G Street Richmond, IN 47374 July 20, 20.15 Mr. Ron Oler Honorable Council President Common Council of the City of Richmond, Indiana 50 North 5t+ Street Richmond, IN 47374 Dear Mr. Oler. Georgia-Pacific Corrugated LLC would like to. request an alternative abatement 10 year schedule under Ordinance No. 76-201 I. We believe we qualify for a 10 year 85% alternative abatement as calculated below: Ordinance No 76-2011 Requirement # l (75%) A) Our investment $ 7,787,000 B) 10 employees will be hired C) Wages are $25/hour — well above 50% above the state minimum wage D) Major medical is provided to all full-time employees E) All equipment and new hires will be completed within three years. Requirement #2 (5%) Our investment will be $7,787,000 Requirement #3 (0%) Requirement #4 (5%) Wages are $25/hour which is more than double the state minimum wage. The above should qualify us for an 85%/year ten year abatement. Please contact us at 765-983-4246 if you have any questions. Sincerely, Shellie Madill Controller STATEMENT OF BENEFITS PERSONAL PROPERTY S State Form 51764 (R31 12-13) �. Prescribed by the Department of Local Government Finance FORM SBA / PP PRIVACY NOTICE Any lnrornwtion c meemlmg the coat of the property and specNlc sale". pant to IrtdivMwl employee by fife Property owrtalseon&dendel eriCe•t.l-ti.l-S.t. INSTRUCTIONS: 1. This statement mud be submitted to the body t naUng the Economic Revitalization Area priorf0 the public hearing d the designating body requires infannation from rite a m making its der+ about whedwto designate an Economic Revitakudion Area. Otherwise this statement must be to the desrgna BEFORE a person (nstaks the new manufactu ' 0 t antlrbr research and dev elopmeot equipment, andrbr bgistical distribu on equlpmtstt antt/or information technokzgy egalptrrerN /or - 4 person wishes to clam a deduction. 2 The statement of benefits form must be submitted to the designating body and the area designated an sconamic revffaifzadon area before the installation of quaWing abatable equipment for which the person desires to daim a deduction. 3. To obtain a deduction; a person must tie a cerlibad deduction sdWula with the persons personal properiyreturn on a certified deduction schedule (For»1103-EQ1 with the tvwnsh�p as�sessor to the township where Me properly rs Sduated r_wO t the copnty assessor if there is rro township assessor for the tolvn&W. The 1 aq twist bt Bield�between March 9 and�Aay 15 td the andlorassessm�ntt}e wr in whyMehgnew manufaekuUtg equipment afu long Onatch and g extensnon h sbebeen �ained-A perrson ms a Mid s ft the fi m belwee hl amh fund thand xtended due date of that year 4. 13mperty owners whose Statement of BenelfK, was approved, must submit Form CF-.WP annually to Show compillance with the Statement of BenefRs. (IC &1.1-12,1-a 6) 5. Fora Form SB-11PP Nat is approved aftwJune 30,2013, the decorating body Is required to a Obrt;h an abatement schedule for each deduc&0 alftwed. For a Form SB-1/PP that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains M effect (IC 6-1.1-12.1-17) • Name of taxpayer Name of contact person GEORCIA—PACIFIC CORRUGATED LLC SHELLIE MADILL Address of Umpayer (street and number, city. state. ZIP code) Telephone 623 S G STREET RICHMOND IN 47374 number (76Sj983-4246 Name of designating body Resolution COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA number (s) Location of property 1010 INDUSTRIES RD RICHMOND IN 47374 County DLFG WAYNE taxing district number 89030 andior logistical distribution equipment andor Information tedmology equipment (Use adMlona/ sheets 9 necessary) DIGITAL PRINTING PRESS AND GLUE DETECTION EQUIPMENT Start Date Comptedw Date Manufacturing Equipment 08/15/2015 04/01/2016 R & D Equipment Logist Dist Equipment • / / / / IT Equipment • / / / / SECTION ESTIMiATE OF Elj'iP' OYEES AND SALARIES AS FES�L- 01: PROPOSED PROJECT Current number Salaries Nixnber retained Salaries Number additional Salaries 350 19.368,000 350 19,368,000 10 912,000 SECTION -1 ESTiWLATED 70TAI- COST AND VALUE Or PROPOSED PROjECT NOTE: Ptasuant to IC 6-1.1-12.1.5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT L.OGIST DIST IT EQUIPMENT CAST of the property is confidential, EQUIPMENT EQUIPMENT seas SMeAssessed t:ost Value Cos! Value Cost Value Cost Value Currentvaptes 74,114,010 22,234.230 Plus estimated values of proposed project 7,7g7,600 2,336,100 !Less values of any property being replaced Net estimated- values Upon completion of project 16m3, o» 21,51e, 330 Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Cnher benefits: SECTION t TAXPAYER • I hereby certify that: the representations in this statern&Nt are true. S roof reprasa ti Daft sig (molth, day, year) PnrdW name of auftrizid reprelenktA SHELLIE MADILL Tine CONTROLLER Form Sa VPP, paged - NACTP 1585 -Software only copyrigN 6 2015 DIS, Irx:. CrienULoc 205 M RICHMOND 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 6-1.1A 2.1.2. A. The designated area has been limited to a period of time not to exceed is 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; calendar years' (see below).The date this designation expires Wroyl., ❑ No ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No C. Th mo of eduction applicableto new manufacturing equipment is limited to $ 3 l cost with an assessed value of $ rah . D. The amountof deduction applicable to new research and development equipment is limited to $ cost with an assessed value of S 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 corxfitions (specify) —yes, CyLa w i4 a e. 5t - aI�O, e Q0L, M =44"S, M. 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 instalied and first claimed eligible for deduction is allowed for. ❑ Year 1 ❑ Yearn ❑ Year 3 ❑ Year 4 ❑ Year (see below') ❑ Year 6 ❑ Year 7 ❑ Year 6 0 Year 9 Wlear 10 1. 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? V Yas ❑ No If no, the designating body is required to establish an abatement saredute before the deduction can be datemiined. -&•&Ott Also we have reviewed the information contained in the statement of benefits and find thatthe estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: (signature and We of auhorized member of designating body) Telphone number sn .___jDate (month, y, Year) 6� -% 3 % /y Printed name of a member of designating body Name of des' ng body ` cur o K� e Attested (*nature and frTle ofaftester) PrInt:edr of attesterof 10 C� If the designating body limits the Gene period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under IC 6-1.1AZ1-4.5 IC 6-1.142.1.17' 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 or this chapter an abatement schedule based on the following factors: (I)The total amount of the txgmyer's-investment in real and personal property. (2)The number of new full -lime equivalenl jobs treated. (3)The average wage of the new employees compared to the.state minimum wage. (4)The infrastnicture requirements for the tazpayees investment (b)This subsection applies to a statement of benefits approved after June 30. 2013.A designating body shag 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 Jury 1, 2013, remains' in effect until the abatement schedule expires under the terms of the resolution approving the taxpayers statement of benefits. Form SBA PP, page 2 - NACTP 1585. Software only copyright 02055 CIS, Inc. CIi—VLce 20_-aM37 RICHMOND Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person_ Georgia—Pacif is Corrugated LLC 623 S. G Street, Richmond, IN 47374 Shel ie Madill The information requested on this supplement to form SB-1 must be completed and submitted along with your SB-I in order for your tax abatement request to be considered by Richmond Common Council. Please retain your records and calculations used to arrive.at the information requested on this form. It is subject to review as a part of our monitoring process. 1 Average hourly wage for existing employees $ 20.76 2. Average hourly wage for projected new positions $ 25.00 3. Average hourly health insurance benefit $ 7.68 1. The length of the abatement you are requesting 10 year Alternative Abatement (A 1-10 year abatement may be requested for real estate improvements and manufacturing equipnmenO 2. If eurchasinui2mcn6lease attach a list that includes the followin : • brief description of each piece of equipment being purchased • the projected useful life of each piece of equipment • the state(s) in which the equipment is being brought into Indiana from if purchasing used equipment • the cost of each piece of equipment • state if the machinery is being purchased or leased • if the machinery is being leased, provide information from the lease that explains which party is responsible for paying the property taxes 3. If making real estate improvements, please provide a list that includes the following: • brief description of the real estate improvement (new construction, rehab, expansion, etc.) • size of the proposed real estate improvements • costs of the proposed real estate improvements DEFINITIONS 1. Average hourly wage for existing employees: foryour most recent pay period please provide the average base wage per hour for all current full time, non -supervisory employees. Do not include the followinggroups: A. part time wnplo ves,• B. monagement, supervisors, foremen, or any other supervisory personnel, C. oK hers, stockholders, or partners. if they amn 2% or more of the business, and their family members. 2. Average hourly wage for projected new positions: ose the same definition of employees to be included as In member one above 3. Average hourly health insurance benefit: Please provide the current company paid kealth Insurance benefits provided io hourly employees (as defined above) and family members. Please present in the form of an hourly rate computed using the annual cosy per eligible employee divided by 2080 hours. ORDINANCE Na 76-2011 A SPECIAL ORDINANCE ALLOWING AN AmRmTm ABATKmxNT ; DEDUCTION SCHEDULE FOR PROPERTY OWNERS OBTAINING DEDUMONS FROM ASSESSED VALUE OF CERTAIN PROPERTY WITHIN AN ECONOMIC REVT'I',A,LMAT[ON AREA WHEREAS, pursuant to Indiana Law, I.C. 6�-1.1-12.1 et. seq., the Common Council of ' the City of Richmond, Indiana may find that a perdctilar area within the city is an Economic Revitalization Area which provides as an economic development ire certain property tax deductions for the redevelopment or rehabilitation of real property or the installation of new manufaducing equipment; and, WFMR AS, the Compton Council has previously adopted Resolution No. 10-1984 which to sates certain areas in the city as Economic Reevitalizabou Areas and seta forth certain procedures for an owner to obtain certain deductions thet+eim; and Resolution No. 10-1984 an ERA; waft definition changes to the origimal ordinance setting Earth the time periods in which: a deduction is allowed; and establishing other procedures for obtaining deductions (see Resolutions 2-1997; 11-1989,11- 1991, 3-1996, Ordirmoes 72-1996, 90-1996, 113-1997, 19-2000, 29- 2006, 3I 2007); and WHEREAS, Indiana law has previously allowed the owner of real property and personal property located witdun an economic revitalization area to request a deduction over a one (1) to ten (I0) year period and has previously established the abatement deduction schedules for rod property deductions and personal property deductions;. and WHEREAS, Abatement deduction schedules for real property and personal property set forth and outlined by Indiana. Law and the Common Council, as the designating body; may approve the member of years any given eduction applicant may take an approved deduction; and WHFRBA:S, As set forth in the above -rid Resolutions and Ordinances, Common Council, as the dating body, has previously deterutined the applicable time period in each Special Ordinance .approving a specific Statement of Beneft and WHEREAS, Effective July 1, 2011, Indiana Code (IC) 6-1.1-12.1-1 et seq. provides a designwivg body ffexibgrW to approve an alternative abatema t deduction schedule on either real estate and/or personal property to a business that is established in, or relocating to an economic revitalization area and receives a deduction; ion; and S WHMMM, For purposes of this Ordinance, at alternative abatement deduction is defined as the deduction aamowxt established by the Common Couucal, and said deduaron amount nay be applied amorally provided that all requirements, of this Ordinance are met; and 1 WHUWAS, For purposes of this thtiinance, an alternative abatement deduction , schedule is defined as a deduction amount and time period, not to exceed ten (10) years, established by the Common Co mcii as permitted by Indiana law, and SAS, Common Ca mcd desires to establish guidelines in accordance with lndiam Code (IC) 6-1.1-12.1-17 that may permit an alternative abatement deduction schedule for businesses expanding or relocating in economic revitalint ou areas in Richmond. NOW, TEMEFORE, BE IT ORDANED by the Common Council of the City of Richmond, IndiEana, that the Alternative Abatement Deduction Schedule- Guidelines are set farth as follows: 1. Ricmond Common Council may utilize an alternative abatement deduction schedule of a 75% deduction for 10 years if all of the following requirements are met: a. $3,000,000 minirmun investment, and b. A minimum of ten (10) new full-time employees are hired and maintained, and C. Wages paid to now employees must pay 50% above the state aoninithmm wage, and d. Major medical health insurance is provided to all full-time employees, and e. All improvements and new hires mist be completed within three years ofthe date of the signed ordinance approving the Statement ofBenefits for a business, and £ Facture to meet any of the requirements outlined in a_ though e. above shall require that the alternative abatement deduction schedule revert to the standard ten (10) year abatement deduodon schedule outlined in IC 6-1.1-12.1- 4d(10) :for real, estate improvements and IC 6-1.1-12.1-4.54(10) for personal prropesty beginnigg with the number of years remaining for the abatement (for maple, if a peal property abatment is in its 6 m year, the find flour years' deductions would be 400%, 30%, 20% a and 10%, mspectively) i 2. Addition0y, if the minimum conditions outlined in #1b., #1c., and #Id. above are met, Richmond Common Council may inmuse the alternative abatement deduction desonbed above by 5% if the business invests a minimum of $5,000,000 or by ten (10%) percent if the business invests a minimum of $10,000,000,. 3. If the minimum editions outlined in *Ia., #lc., and #id. are met, the Richmond Common Ca moil may increase the alternative abatement deduction described above by 5°lo if the business adds a minimum of twenty (20) new employees or by ten (10%) pew if the business adds a minim of thirty (30) new employees 4. If the minimum conditions outlined in #la_, #1b., 91c., and #ld. above are met, the Richmond Common Council may increase the alternative abatement deduction descm'bed above by 5% if the business pays at least double the state minimum wage for now employees hired., 5. The pera wtage increases described in #2, #3, and 44 above are iudepeadent of each other. As such, a qualifying applicant could possibly achieve a one hundred (IV/*) percent deduction. 6. A business requesting an alternative abatemot tit deduction schedule shall d a letter roquesting,8n alternative abatement deduction wheduie and "prsrvid6 PASSED AM ADOPTED this 1 7thm day of January 2D12, by the Common Council of the City ofRchmond, Ittdisna. "(6�1 President Plaip Mathew Cluing Karen Chaditn, TAMC, MMC PRESET UM to the Mayor of the City of Ridmand, Indiana, ibis 18th day of January, 2012, at 9.00 am. iAMC, MtitC APPROVED by ny,- Sarah L. Mutton, Mayor of the City of Richmond, Indiana, this I ft day oflmnuy, 2012, at 9:05 am. Mayor (Sarah L. Hutton) A Chaste en, IAMC, MMC