HomeMy Public PortalAbout014-2016 - Abatement - West End - Real EstateCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO. 14-2016
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-l.
m
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:
REAL ESTATE - 10 YEARS
West End Bank, S.B.
Current Jobs: 74
Jobs Retained: 74
Jobs Created: 10
Estimated New Value: $4,337,500.00
Dated: March 28, 2016
Passed and adopted this 9 day of 2016, by the Common Council of the
City of Richmond, Indiana.
President
(Bruce Wissel)
ATT T:
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _S day of
2016, at 9:00 a.m.
�lerk
(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.
( , Mayor
. �Sn
ATTE
(Karen hasteen, IAMC, MMC)
i/�/- a5�/G
00STATEMENT OF BENEFITS
REAL ESTATE IMPROVEMENTS
State Form 51767 (R6 / 10-14)
'. Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
❑ Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4)
® Residentially distressed area (IC 6-1.1-12.1-4.1)
20_ PAY 20_
FORM SB-1 / Real Property
PRIVACY NO ICE
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.
INSTRUCTIONS:
1. 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 the redevelopment or rehabilitation of real property 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 initiation of
the redevelopment or rehabilitation for which the person desires to claim a deduction.
3. To obtain a deduction, a Form 3221RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty (30) days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who
failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year.
A. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-I/Real Property. The Form CF-I/Real
Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
IC 6-1.1-12.1-5.1(b)
5. 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. For a Form SB-1/Real Property 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
West End Bank, S.B.
Address of taxpayer (number and street, city, state, and ZIP code)
34 South 7th Street Richmond, Indiana
47374
Name of contact person
Telephone number
E-mail address
helle Miller
(76 )8- 006
miller@westendbank.co
SECTION 2 LOCATION AND DESCRIPTION
OF PROPOSED PROJECT
Name of designating body
Resolution number
Richmond Common Council
Location of property
County
DLGF taxing district number
37 and 45 South 7th Street
lWayne
Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary)
Estimated start date (month, day, year)
5-16-2016
See attached description of project.
Estimated completion date (month, day, year)
- - 1
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained
Salaries Number additional Salaries
74 (FTE) $3,414,000 74 (FTE)
1$3,414,000 10 1$460 , 000
SECTION 4 ESTIMATED TOTAL COST
AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values
235,000
$185,000
Plus estimated values of proposed project
2,707,000
Less values of any propertybeing replaced
165,000
Net estimated values u on com letion of Droiect
SECTION• • AND OTHER
BENEFITS PROMISED
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits
The adjacent property is currently participating
in the voluntary remediation program
under the guidance of the Indiana Department
of Environmental Management, although no
remediation has occurred to date. To protect
the West End building and staff.a vapor
protection will be installed at the foundation
of the building for an estimated cost
of $120.000,
SECTION•
I hereby certify that the representations in this statement are true.
Signature of authoriob representativ
%2
Date signed (month, day, year)
3-28-2016
Printed name of a orized represbfitative
Title
Timothy R. Frame
President and CEO
Page 1 of 2
FOR USE OF DESIGNATING :..
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 calendar years` (see below). The date this designation
expires is
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: ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 (' see below)
❑ Year 6 ❑ 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 6-1.1-12.1-17?
❑ 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.
We have also 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.
App ov and title of on mem I designating body)
Telephone number
Date signed (month, day, year)
�(signare
( C*1 7
b i
Prin ed nam f authorize member of desi nating body
Nam esignating body �y
U GJ ♦ s S
x C'
Attested b ( 'gnafure and title of attester)
Printed;lame of attester
.Q F &411' s r�
' 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
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
The information requested on this supplement to form SB-1 must be completed and submitted
along with your S13-1 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 $ go nn
3. Average hourly health insurance benefit $ 5.16
The length of the abatement you are requesting 10 Years
(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
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: U.se 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.
(Authorize(d Signature and Title)
)
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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
• Adult Day Care
• American Cancer Society
• American Heart Association
• American Legion Post 65
• Amigos
• Amy Woollard Memorial Fund
• 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
•
Noonan's Foundation
Center City Development
•
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
•
Tri Kappa
Hagerstown Young Farmers
•
Union County Ag Day
Hand in Hand
•
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 modem 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.