HomeMy Public PortalAbout029-2006 - Tax Abatement Guidelines for IndustAMENDED ORDINANCE NO. 29-2006
AN ORDINANCE CREATING TAX ABATEMENTS FOR
VACANT INDUSTRIAL FACILITIES
WHEREAS, The Common Council of the City of Richmond, Indiana has previously established
an Economic Development Plan for the City in Resolution 1-1984 which deemed it
necessary and beneficial to stimulate private investment and to provide for the
creation and/or retention of job opportunities; and
WHEREAS, Pursuant to Indiana law, I.C. 6-1.1-12.1 et. seq., the Common Council for the City
of Richmond has designated areas within the City as Economic Revitalization
Areas, which provide as an economic development incentive certain property tax
deductions for the redevelopment or rehabilitation of real property; and
WHEREAS, For purposes of this Ordinance, a "vacant industrial facility" is defined as a tract
of land on which there is located a plant that has at least Twenty Thousand
(20,000) square feet of floor space; was placed in service at least twenty (20)
years ago and has been vacant for two (2) or more years unless the tract and the
plant are owned by the City of Richmond, in which case the two (2) year
requirement does not apply.
WHEREAS, A number of vacant industrial facilities exist in Richmond whose recovery would
be economically beneficial to the City of Richmond; and
WHEREAS, It is desirable to assist in any way reasonably possible with the economic
development of vacant industrial facilities in Richmond; and
WHEREAS, Pursuant to Indiana law, I.C. 6-3.1-11 et seq., the Industrial Recovery Tax Credit
statute, certain vacant industrial facilities are eligible for an industrial recovery tax
credit by the state of Indiana; and
WHEREAS, It has become extremely difficult for normal development or rehabilitation of
vacant industrial facilities due to cessation of growth, deterioration of
improvements, and/or the character of occupancy and/or age of the buildings; and
WHEREAS, The Department of Metropolitan Development of the City of Richmond has
recommended that the City of Richmond create tax abatements for vacant
industrial facilities as defined above and in the findings below; and
WHEREAS, Common Council desires to now create tax abatements for vacant industrial
facilities under criteria set forth in this Ordinance for vacant industrial facilities
that are otherwise not eligible for tax abatement or tax credit under the state's
Industrial Recovery Tax Credit statute.
NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond,
Indiana, as follows:
1. Definitions as used in this Ordinance:
a. "Floor space" means the usable interior floor space of a building.
b. "Industrial recovery site" means an industrial recovery site designated under
this Ordinance.
c. "Placed in service" means that property is placed in a condition or state of
readiness and availability for a specifically assigned function. In the case of a plant comprised of a
complex of buildings, the entire plant shall be considered to have been placed in service as of the
date that a building was placed in service if the building has floor space that, when aggregated with
the floor space of all buildings in the complex placed in service on earlier dates, exceeds fifty
percent (50%) of the total floor space of all building in a complex.
d. "Plant" means a building or complex of buildings used, or designed and
constructed for use, in production, manufacturing, fabrication, assembly, processing, refining or
finishing.
e. "Qualified investment" means the amount of the taxpayer's expenditures for
rehabilitation of property located within an industrial recovery site under a plan contained in an
application approved by Common Council. An expenditure for purposes or by persons not covered
by such a plan may not be a qualified investment.
f "Rehabilitation" means the remodeling, repair, or betterment of real property
in any manner or any enlargement or extension of real property
g. "Taxpayer" means any person, corporation, limited liability company,
partnership, or other entity that has any tax liability and that is the owner or developer of an
industrial recovery site.
h. "Vacant" means with respect to a plant that at least seventy-five percent
(75%) of the plant placed in service is not used to carry on production, manufacturing, assembly,
processing, refining or finishing.
i. "Vacant industrial facility" means a tract of land on which there is located a
plant that:
(1) Has at least Twenty Thousand (20,000) square feet of floor space;
(2) Was placed in service at least twenty (20) years ago; and
(3) Has been vacant for two (2) or more consecutive years immediately prior to the
application for abatement unless the tract and the plant are owned by the City of Richmond or
Wayne County, in which case the two (2) year requirement does not apply.
2. Tax abatements granted by the City of Richmond for personal property abatement and
real property abatement for qualifying companies or businesses are hereby extended to a
"taxpayers" of "vacant industrial facility".
3. For a taxpayer of a vacant industrial facility to receive a tax abatement in the City of
Richmond, the taxpayer must file a Statement of Benefits (SB-1) form and SB-IA, City of
Richmond supplemental form, before new equipment is installed or improvements are made to real
property.
4. So long as the industrial recovery site is located in one of the City of Richmond's
designated Economic Revitalization areas, a taxpayer of a vacant industrial facility may request a
tax abatement from one (1) year up to ten (10) years.
5. Common Council has the sole discretion as to determining the number of years in which
to grant a tax abatement to a taxpayer of a vacant industrial facility. The determination of the
Common Council is based on the estimated value of the vacant industrial facility project, the
number of jobs created or retained, the employees' annual salaries or wages and other benefits.
6. Once a taxpayer of a vacant industrial facility has been approved by Common Council
for a tax abatement, the taxpayer of a vacant industrial facility must meet the following
requirements in order to receive or continue to receive the tax abatement granted to the taxpayer:
a. File an annual compliance with statement of benefits (CF-1) form with the City of
Richmond's Department of Metropolitan Development and the Wayne County Auditor's Office to
show the extent of compliance with the Statement of Benefits.
b. Taxpayers of a vacant industrial facility receiving real estate and improvements
deductions must file form CF-I with the initial deduction application and then annually by May 15,
or by the due date for the real property owner's personal property return that is filed in the
township.
C. Taxpayers of a vacant industrial facility receiving deductions on new
manufacturing equipment must file form CF-I with form 322 ERA/PP between March 1 and May
15 of each year.
7. Failure of a taxpayer of a vacant industrial facility to meet the requirements set forth in
paragraph 6 above may result in their tax abatements being withdrawn by Common Council. The
determination of Common Council to withdraw or keep tax abatements for a taxpayer of a vacant
industrial facility who fails to comply with the requirements of paragraph 6 is by a majority vote of
the members of Common Council.
8. This Ordinance shall take effect upon passage.
Passed and adopted this _20th_ day of _March 2006, by the Common Council of the City
of Richmond, Indiana.
S/S Karl Sharp President
(Karl Sharp)
ATTEST: _S/S Karen Chasteen City Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _21 st_ day of _March
2006, at 9:00 a.m.
_S/S Karen Chasteen City Clerk
(Karen Chasteen)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _21 st day of
March , 2006, at 9:05 a.m.
S/S Sarah L. Hutton Mayor
(Sarah L. Hutton)
ATTEST: _S/S Karen Chasteen City Clerk
(Karen Chasteen)