HomeMy Public PortalAbout012-2016 - Abatement - HE Woodruff Corp - EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO. 12-2016
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, research and development equipment, logistic distribution equipment,
or information technology 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 and Richmond City
Ordinance, 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, research and development
equipment, logistic distribution equipment, or information technology equipment
is also entitled to deductions from the assessed value, pursuant to Indiana law and
Richmond City Ordinance, 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,
research and development equipment, logistic distribution equipment, or
information technology 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, research and development equipment,
logistic distribution equipment, or information technology 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, research and development
equipment, logistic distribution equipment, or information technology
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,
research and development equipment, logistic distribution equipment, or
information technology equipment.
5. That the totality of the benefits is sufficient to justify the deduction.
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.
7. That a deduction schedule was passed by Common Council pursuant to
Richmond City Ordinance Number 65-2013 and that said deduction schedule
is applicable to the deductions approved along with these findings.
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,
research and development equipment, logistic distribution equipment, or
information technology 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, research and development equipment,
logistic distribution equipment, or information technology 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, research and development
equipment, logistic distribution equipment, or information technology
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,
research and development equipment, logistic distribution equipment, or
information technology equipment.
5. That the totality of the benefits is sufficient to justify the deduction.
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.
7. That a deduction schedule was passed by Common Council pursuant to
Richmond City Ordinance Number 65-2013 and that said deduction schedule
is applicable to the deductions approved along with these findings.
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:
MANUFACTURING EQUIPMENT — 10 YEARS
H.E. Woodruff Corporation
Current Jobs: 56
Jobs Retained: 56
Jobs Created: 7
Estimated New Value: $810,000.00
Dated: March 22, 2016
Passed and adopted this day of 2016, by the Common Council of the
City of Richmond, Indiana.
A
(Karen Chasteen, IAMC, MMC)
r
President
(Bruce Wissel)
1/91�7
TED to the Mayor of the City of Richmond, Indiana, this � day of
2016, at 9:00 a.m.
( aren Chasteen, IAMC, MMC)
APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this SY
day of , 2016, at 9:05 a.m.
ATTES
H.E. Woodruff Corporation
400 Industrial Parkway
Richmond, IN 47374
Richmond City Council
50 North 5th Street
Richmond, IN 47374
Dear Council Members,
We respectfully request that you consider our attached form SB-1/PP application
for personal property tax abatement.
We request that a 10 year tax abatement be considered.
Please contact Holli Farmer or Kelli Seitz at 765-973-0120 if any further
documentation is required or if you have any questions.
STATEMENT OF BENEFITS
PERSONAL PROPERTY
.� State Form 51764 (R4 1 11-15)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS:
FORM SB-1 I PP
PRIVACY NOTICE
Any information concerning the cost
of the property and specific salaries paid
to individual employees by the property
owner is confideniial per IC 6-1 1-12 1-5 1
itted to the
Economic
k hearing
1 This Information fromlnthieoadmust �pydker►�! In making ks declSi about wh whether to desige now gnatelpann Economic oRewfMe
r8 � Am. O n�Pse�s designating
me t must be ody requires
tlogistica�bution equipme�B��Moorrmaationntechhnology equipment for which the �onrow�es to �rm as �uctioequipment. end�br
2. The statement of benefits form must be submAted to the designating body and the area designated an economic revitalization area before the installation
of quaft"y abatable equipment for which the person desires to clam a deduction
3 To obtain a deduction, a person most file a certified deduction schoduk with the person's personal property return on a certified deduction schedule
(Form 103-ERA) with the township assessor of the township where the property is si itated or with the county assessor N there Is no township
assessor for the rownship The 103-ERA must be fled between January 1 and May 15 of Me assessment year in which new maniac o" equipment
and/or research and development equipment and/or logistical distribution equipment and/or krrlormation tec equipment is installed and fully
functional, unless a thing extension has been obtained. A person who obtains a filing extension most fie the form n January f and the extended
due date of that year.
4. Property owners whose Statement of Benefits was approved, must submit Form CF-I/PP annually to show compliance with the Statement of Benefits.
(IC 6-1.1.12.1.516)
5. For a Form SB-1/PP that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed.
For a Form SB-1/PP that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. (IC 6-1.1-12.1-17)
SECTION•• •
Name of taxpayer Name of contact person
WOODRUFF, H.E. CORPORATION KELLI SEITZ
Address of taxpayer (street and number, city, state, ZIP code) Telephone
number
400 INDUSTRIAL PARKWAY RICHMOND IN 47374
(765)966-7774
SECTION• • AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (a)
Common Council of the City of Richmond Indiana
10-1984; 11-1991
Location of property
County
DLFG taxing district number
400 INDUSTRIAL PARKWAY RICHMOND IN 47374 IWAYNE
89030
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or Information technology equipment
(Use additional sheets if necessary)
Start Date
Completion Date
Manufacturing Equipment 04/01/2016
03/31/2018
see attached listing
R & D Equipment
Logist Dist Equipment'
IT Equipment'
SECTIONOF • AND SALARIES AS RESULT
OF ••P• • PROJECT
Curcent number Salaries Number retained Salaries
Number additional Salaries
56 1,480,461 56
1,480,461 7 167,990
SECTION 4 ESTIMATED TOTAL COST
AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5 1 (d) (2) the MANUFACTURING
EQUIPMENT
R & D EQUIPMENT LOGIST DIST IT EQUIPMENT
EQUIPMENT
COST of the property is confidential.
CosAssesed
t
Value Cost
Value Cost
Assessed
Value
Assessed
Cost Value
Current values
Plus estimated values of proposed project
810,000
Less values of any property being replaced
Net estimated values upon completion of project
a o. o00
SECTION 5 VJASTE CONVERTED AND OTHER
BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits:
SECTION•
I hereby certify that the representations in this statement are true.
Signature authorized representativ
Date signed (month, day, year)
n nor a of((author re esentaUve
Title
((ed
�+
Sic C 1 Clilt
Form SB-1/PP, pope 1 - NACTP 1585 - Software only copyright 0 2016 DIS, Inc Client/Loc 14112 000 1
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
H.E. Woodruff Corporation
400 Industrial Parkway, Richmond, IN 47374
Attn: Holli Farmer
The information requested on this supplement to form S13-1 must be completed and submitted along with
your SB-1 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
2. Average hourly wage for projected new positions
3. Average hourly health insurance benefit
12.71
11.50
6.18
1. The length of the abatement you are requesting to year
(A 1-10 year abatement may be requested for real estate improvements and manufacturing
equipment.)
If purchasing equipment, please attach a list that includes the following:
• 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: for your most recent pay period please provide the
average base wage per hour for all current full time, non -supervisory employees. Do not include the
following groups:
A. part time employees;
B. management, supervisors, foremen, or any other supervisory personnel;
C. owners, stockholders, or partners if they own 2% or more of the business,
and their family members.
2. Average hourly wage for projected new positions: Use the same definition of employees to be
included as in number one above.
3. Average hourly health insurance benefit: Please provide the current company paid health insurance
benefits provided to hourly employees (as defined above) and family members. Please present in the
form of an hourly rate computed using the annual cost per eligible employee divided by 2080 hours.
L
DR USE OF THE DESIGNATING BOr
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed
under IC 6-1.1-12.1, provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed I
expires is calendar years` (see below). The date this designation
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate Improvements ❑ Yes ❑ No
2. Residentially distressed areas ❑ Yes ❑ No
C. The amount of the deduction applicable is limited to $
D. Other limitations or conditions (specify)
E. Number of years allowed: Cl Year 1 Year 2
❑ Year 6 � ❑Year 3 C] Year 4 ❑Year 5 (`see below)
❑ Year 7 ❑ Year 8 ❑ Year 9 Year 10
F. For a statement of benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177
C] Yes C] No
If yes, attach a copy of the abatement schedule to this form.
If no, the designating body is required to establish an abatement schedule before the deduction can be determined.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
Bete that the total' f benefits is sufficient to justify the deduction described above.
Ap r d ( ' ture and t' auth zed bar of designating body) Telephone number
Date signed (month, day, year)
P ' ed n e of authorized member IF designating body
311
Name of 'At body
23 � C....A-,Attested y signature and title of attester) d e / �✓
Printed na of attester /
E .Ll i C 7- E r�N
` If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17.
A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1, 2013, the deductions established in IC
6-1.1-12.1-4.1 remain in effect. The deduction period may not exceed five (5) years. For a Form SB-1/Real Property that is approved after June 30,
2013, the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
(10) years. (See IC 6-1.1-12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1, 2013, the abatement
schedule approved by the designating body remains In effect. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating
body Is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1-12.1-17 below.)
IC 6-1.1-12.1-17
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 of this chapter an abatement schedule based on the following factors:
(1) The total amount of the taxpayer's investment in real and personal property.
(2) The number of new full-time equivalent Jobs created.
(3) The average wage of the new employees compared to the state minimum wage.
(4) The infrastructure requirements for the taxpayer's investment.
(b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall 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 July 1, 2013, remains in effect until the abatement schedule expires under
the terms of the resolution approving the taxpayer's statement of benefits.
Page 2 of 2
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H.E. Woodruff Corporation
400 Industrial Parkway
Richmond IN 47374
Abatement request equipment listing
Description
Clam Shell Die
RDC
Flute Seal
Sleeve Machine
Cost
New Used
Useful Life
$145,000
New
14 years
$20,000
New
14 years
$120,000
New
14 years
$525,000
New
14 years
$810,000.00