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HomeMy Public PortalAbout013-2016 - Abatement - West End - IT EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO. 13-2016 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-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, 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: IT EQUIPMENT — 5 YEARS West End Bank, S.B. Current Jobs: 74 Jobs Retained: 74 Jobs Created: 10 Estimated New Value: $433,990.00 Dated: March 28, 2016 Passed and adopted thi� of the City of Richmond, Indiana. day of 2016, by the Common Council 3� -."z -'Z' 1-1 President (Bruce Wissel) ATTEST: (Karen Chasteen, IAMC, MMC) 4PRESENTED to the Mayor of the City of Richmond, Indiana, thia— day of , 2016, at 9:00 a.m. (Karen Chasteen, IAMC, MMC) APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this day of , 2016, at 9:05 a.m. ayor 7i�cmytofw) ATTES (Karen Chasteen, IAMC, MMC) /'�- x,/(a STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R4 / 11.15) Prescribed by the Department of Local Government Finance INSTRUCTIONS FORM SB-1 / PP PRIVACY NOTICE Any information concerning the cost of the property and specific salaries paid to individual employees by the property owner is confidential per IC 6-1.1-12.1-5.1. 7. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted to the designating body BEFORE a person installs the new manufacturing equipment and/or research and development equipment, and/or logistical distribution equipment and/or information technology equipment for which the person wishes to claim a deduction. 2 The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation of qualifying abatable equipment for which the person desires to claim a deduction. 3. To obtain a deduction, a person must file a certified deduction schedule 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 situated or with the county assessor if there is no township assessor for the township. The 103-ERA must be filed between January 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between January 1 and the extended due date of that year 4. Property owners whose Statement of Benefits was approved, must submit Form CF-1/PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 5. For a Form SB-11PP 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 West End Bank S.B.. eY D. Miller Address of taxpayer (number and street, city, state, and ZIP code) Telephone number SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (s) Richmond Common Council Location of property County DLGF taxing district number 37 and 45 South 7th Street Wa ne Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or information technology equipment. START DATE COMPLETION DATE (Use additional sheets if necessary.) Conference Room Technology $ 62,200 Manufacturing Equipment Building Network Infrastructure 195,440 Processing Infrastructure 143,350 R&DEquipment Logist Dist Equipment External Communications 33,000 $ 433,990 IT Equipment 3-1-2017 3-31-2017 Current number Salaries Number retained 74 (FTE) $3,414,000 74 (FTE) Salaries Number additional Salaries 3,414,000 10 $460,000 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 E UIPMENT COST of the property is confidential. ASSESSED COST VALUE COST ASSESSED ASSESSED ASSESSED COST COST VALUE VALUE VALUE Current values Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of project SECTION• . AND OTHER BENEFITS PROMISED Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION• I hereby certify that the representations in this statement are true. Signatur authorized Or e2ative Date signed (month, day, year) 3-28-2016 Printed name of authoriAd represen ative Title Timothy R. Frame President and CEO Page 1 of 2 FOR USE OF DESIGNATING c•. 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 6-1.1-12.1-2. A. The designated area has been limited to a period of time not to exceed calendar years ' (see below). The date this designation expires is . NOTE: This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1 . Installation of new manufacturing equipment; ❑ Yes ❑ No ❑ Enhanced Abatement per IC 6-1.1-12.1-18 2 . Installation of new research and development equipment; ❑ Yes ❑ No Check box if an enhanced abatement was 3 . Installation of new logistical distribution equipment. El Yes ❑ No approved for one or more of these types. 4 . Installation of new information technology equipment; ❑ Yes ❑ No C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of $ . (One or both lines may be filled out to establish a limit, if desired.) D. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of $ . (One or both lines may be filled out to establish a limit, if desired) E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of $ . (One or both lines may be filled out to establish a limit, if desired.) F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of $ . (One or both lines may be filled out to establish a limit, if desired.) G. Other limitations or conditions (specify) H. 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 installed and first claimed eligible for deduction is allowed for: El Year 1 El Year 2 El Year 3 El Year 4 12�Year 5 ❑ Enhanced Abatement per IC 6-1.1-12.1-18 Number of years approved: ❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 (Enter one to twenty (1-20) years, may not exceed twenty (20) years.) I. 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? ❑ Yes ❑ 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. Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Appro y: ignature a e o uth ' ed member of designating body) Telephone number Date sig ed ( ontthh, day, year) Phrin of authorized member of designating body ame esignating body d 0 i1-) (2- / L-, Attested by: sig tune and title of attester) Printed name f attesters _ ) 9 S ` 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. 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 tl 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 ar allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year c not exceed ten (10) years. (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement s resolution approving the taxpayer's statement of benefits. Page 2 of 2 Form SB-lA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: The information requested on this supplement to form S13-1 must be completed and submitted along with your Sl3-1 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 $ 13.49 2. Average hourly wage for projected new positions 3. Average hourly health insurance benefit $ 5.16 The length of the abatement you are requesting 10 Years (A 1-10 year abatement maybe requested for real estate improvements and manufacturing equipment.) 2. 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 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. (Authoriz Signature and Title) I \ y.' ,, � �g.. u � E i f i - �� i � •fir � NOW II �•� _ 9�4A�j�*na s 0 Z z Q z LU UJ - m� �A y Sip 7� _ F� ��9�} [ 8I i N W W� w Z ' p - B � � U R is � � � EF K � K �� a a a 11 N � N • N �'�' Q West End Bank, S.B. West End Bank, S.B. is an Indiana -chartered savings bank headquartered in Richmond, Indiana. West End Bank, S.B. was organized in 1894 under the name West End Building and Loan Association and has operated continuously in Richmond, Indiana since its founding. We reorganized into the mutual holding company structure in 2007 by forming West End Bank, MHC; and completed our mutual to stock conversion in January 2012, thereby becoming the wholly owned subsidiary of West End Indiana Bancshares, Inc. At December 31, 2015, we had total assets of $271.0 million, net loans of $218.0 million, total deposits of $215.3 million and equity of $27.4 million. Our principal business consists of attracting retail deposits from the general public in our market area and investing those deposits, together with funds generated from operations, and to a lesser extent, borrowings, in one- to four -family residential real estate loans, automobile loans, commercial and multi- family real estate loans, and, to a lesser extent, second mortgages and equity lines of credit, construction loans and commercial business loans. We also purchase investment securities consisting primarily of securities issued by United States Government agencies and government -sponsored entities and mortgage -backed securities. In 2004, management implemented a strategy to diversify our traditional thrift focus into a more commercial bank -like institution with a broadened base of financial products and services while continuing to emphasize superior customer service. Residential real estate lending has and will remain an important part of our operations; however, we have also expanded our focus into non-residential lending, including in particular automobile lending. Our consumer lending business lines and our interest rate risk strategies (such as selling most of the fixed-rate one- to four -family residential real estate loans that we originate) have allowed us to continue to grow and remain profitable despite the challenging economy and interest rate environment of recent years and increasing regulatory burden placed on all financial institutions. Our website address is www.westendbank.com. We primarily conduct business through our main office located in Richmond, Indiana and our three branch offices in Richmond, Hagerstown and Liberty, Indiana. Three of our offices are located in Wayne County, Indiana and our Liberty office is located in Union County, Indiana. In addition to our four full -service locations, we also host seven additional limited service branches in select schools within Richmond Community Schools. These student -operated branches are currently featured in all six Richmond Community Elementary Schools and are in operation once a month. We also have a limited service branch and ATM located within Richmond High School. This student -operated branch is available to students and faculty of RCS twice a week. West End Bank, S.B. has always been very generous towards the communities served, financially, as well as with the time and talents of Directors, Officers and staff. It is part of the Bank's core mission statement to reinvest in our community with our resources, time and talents. In 2015, West End Bank, S.B., contributed more than 1000 hours of community service and over $146,000 to the following organizations: • Adopt -A -Dog • American Legion Post 65 • Adult Day Care • Amigos • American Cancer Society • Amy Woollard Memorial Fund • American Heart Association • Animal Alliance Artisan Group • Laundry Day Birth to Five • Liberty Lions Club Boy's and Girl's Club • Liberty Volunteer Fire Department Boy Scouts of America • Mt. Moriah Baptist Church Brenda Gillam Golf Tournament • Nettle Creek Lions Club Center City Beautification 0 Noonan's Foundation Center City Development 0 Northeastern Junior -Senior High School Chamber of Commerce • Phi Chi Epsilon Circle U Help Center • Reid Hospital Communities in Schools • Reid Hospital Foundation Cope Environmental Services • Richmond Art Museum Every Child Can Read • Richmond Association of Realtors Flatrock YMCA Camp • Richmond Athletic Department FORE Parkinson's • Richmond Devilettes Forest Hills Historical Foundation • Richmond Community Schools FOP Lodge #63 • Richmond Friends Fountain City Wesleyan • Richmond High Cheer Squad Friends Fellowship Community • Richmond Music Boosters Girls, Inc. • Richmond River Rats Give Forward • Richmond Shakespeare Festival Golay Community Center • Richmond Symphony Orchestra Habitat for Humanity • Salvation Army Hagerstown American Legion Post • Seton Schools Hagerstown FFHA After Prom • Siloam Health and Wellness Clinic Hagerstown Junior/Senior High School • Tony Parker Children's College Fund Hagerstown Optimist Club • Townsend Community Center Hagerstown Township Trustee • TriKappa Hagerstown Young Farmers • Union County Ag Day Hand in Hand 0 Union County Development Corp. Hayes Arboretum • United Way InConcert • Wayne County 4-H Fair Indiana University East • Wayne County Extension Homemakers Indiana University East Alumni Association Association • Wayne County Foundation Ivy Tech Foundation • Wayne County Historical Museum I Win • Wayne County Special Olympics Joseph Maley Foundation • Wernle Youth and Family Treatment Junior Achievement Center Kitchel Hotshots 4H Club 0 YWCA & Genesis WEST END BANK CHARITABLE FOUNDATION In 2012, the West End Bank Charitable Foundation (the "Foundation") was formed. The mission of the Foundation is to provide additional financial support to charitable and community service organizations in the communities in which West End Bank, S.B. (the "Bank") operates. The Foundation is dedicated completely to community activities and the promotion of charitable causes. Since its inception West End Bank, S.B. and the West End Charitable Foundation has awarded more than $280,000 in grants to the following organizations: • Boys and Girls Club • Christian Charities • Circle U Help Center • Community Food Pantry • Community In Schools • Cope Environmental Center • Indiana State Museum • Indiana University East • K-Ready • Richmond Art Museum • Richmond Symphony Orchestra • Senior Opportunities • Wernle • Whitewater Pro Bono WEST END BANK'S PARTNERSHIP WITH RICHMOND COMMUNITY SCHOOLS West End Bank, S.B. offers unique student -operated "branches" to students in Richmond Community Schools. In addition, West End Bank, S.B. offers financial literacy courses for students at the elementary and high school levels and has donated generously to Richmond Community School programs and initiatives. The programs West End Bank, S.B. offers through Richmond Community Schools enable students to not only become more fiscally responsible, but also provide them the opportunity to receive hands-on experience and knowledge in being a part of the workforce. Student "Tellers" are responsible for completing the following business related skills: • Basic understanding of financial terms and products • Learning the importance of savings • Working in a team setting • Resume and interview preparation • Problem solving • Task scheduling • Customer service The Richmond Community Schools program has expanded since our pilot "branch" at Garrison Elementary School opened in 2006. In 2009, we opened the branch in Richmond High School and expanded the elementary program to include all six elementary schools in 2012. The school "branches" are operated by the school's student body. The school "branches" are open one day a month per school. For the school branches, the types of transactions are limited to deposit only; however, all services are made available to student customers at our other full service locations. WEST END BANK'S CORPORATE OFFICE EXPANSION West End Bank. S.B. currently has 68 full time and 12 part time employees. This is an increase of more than 15%, or 15 full time equivalents since the institution went public in 2012. To better serve our customers and our community, we have hired individuals allowing for expansion of both our lending and deposit operations. We have added a Call Center and Risk Department and a full time employee devoted to our partnership with Richmond Community Schools. West End Bank currently houses 38 employees at the Main Office Building located at 34 South 7`' Street. This facility includes the main Retail Branch, Commercial and Consumer Lending Offices, Collections Team, the Information Technology Department, Marketing Department, Call Center and Finance and Human Resource Departments and Executive Management Offices. The Operations Building located at 45 South 7' Street houses 17 additional employees responsible for deposit and lending operations, loan processing and Risk Management. Both facilities are at capacity. To allow for our continued growth and provide ample space for customer interaction and employee work areas, on January 12, 2016, representing West End Indiana Bancshares, Inc. Board of Directors, our President and CEO, Mr. Timothy R. Frame announced that the Bank is preparing to begin construction on a new facility across the street from its downtown office. The new building, a modern three story facility offering approximately 19,000 square feet in office space, will be located on 7th South Street south of the Wayne County Foundation building. It is currently planned that the new facility will house the Bank's executive, operations, IT and financial functions while most of the Bank's lending personnel remain in its current facility. The West End Bank Charitable Foundation will also be housed in the new facility. The Bank's convenient customer and drive up facilities at 34 South 7' Street will remain unchanged except that the expansion will provide additional space for lending and deposit services. The Bank expects to break ground on the new facility in May 2016 with completion expected by March 2017. In our press release, Mr. Frame, said, "We are very excited to announce the construction of the Bank's new headquarters. We have occupied our current headquarters location since 1958 and will use the additional space to support expanded services to our valued customers." Mr. Frame also noted that "it is no accident that our new facility will be located in downtown Richmond. With this action, we renew our more than 120 year commitment to the town of Richmond and the fine people residing in Wayne and surrounding counties." This will be an investment of more than $3,500,000 in downtown Richmond. It will not just provide for the retention of jobs but will allow for continued job growth. We are excited to share the following information about the project.