HomeMy Public PortalAbout040-2016 - Tax Abatement - B & F Plastics -COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO.40-2016
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
B & F Plastics, Inc.
Current Jobs: 80
Jobs Retained: 80
Jobs Created: 3 - 4
Estimated New Value: $1,800,000.00
Dated: July 13, 2016
Passed and adopted this i7 day of 16, by the Common Council of the
City of Richmond, Indiana.
President
(Bruce Wissel)
ATT
aren Chasteen, IAMC, MMC)
S_ PRESENTED to the Mayor of the City of Richmond, Indiana, this /?� day of
_tly2016, 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.
Mayor
avid M. S ow)
ATTESIY� �
(Karen Chasteen, IAMC, MMC)
"•�,�, STATEMENT OF BENEFITS
PERSONAL PROPERTY FORM SB-1 / PP
State Form 51764 (R4 / 11-15)
Prescribed by the Department of Local Government Finance 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
INSTRUCTIONS
y, 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 fort 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.
(1C 6-1.1-12.1-5.6)
5. For a Form SS-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)
Name of taxpayer Name of contact person
B & F PLASTICS, INC IBRUCEUPCHURCH
Address of taxpayer (number and street, city, state, and ZIP code) Telephone number
540 N 8TH STREET, RICHMOND, IN 47374 ( 765 ) 962-6125
Name of designating body Resolution number (s)
COMMON COUNCIL OF THE CITY OF RICHMOND IN 10-1984, 11-1991
Location of property County DLGF taxing district number
540 N 8TH STREET, RICHMOND, IN WAYNE RICHMOND CORP
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.)
Manufacturing Equipment 1 07/01/2016 12/31/2017
LINE EXPANSION AND MODERNIZATION FOR "GO GREEN", R & D Equipment
SUSTAINABILITY AND PRODUCT EXPANSION
(SEE ATTACHED DETAIL) Logist Dist Equipment
IT Equipment
Current number Salaries
Number retained
Salaries
Number additional
Salaries
80 10,716,000
80
10,716,000
3 - 4
160,000
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
R & D EQUIPMENT
LOGIST DIST
IT EQUIPMENT
EQUIPMENT
EQUIPMENT
COST of the property is confidential.
COST ASSESSED
COST ASSESSED
COST ASSESSED
COST ASSESSED
VALUE
VALUE
VALUE
VALUE
Current values
4,897,103
1,156, 230
Plus estimated values of proposed project
1,800,000
720,000
Less values of any property being replaced
Net estimated values upon completion of project
1 6,697,103
1,876,230
Estimated solid waste converted (pounds)
Other benefits:
in this statement are true.
Estimated hazardous waste converted (pounds)
Signetute of authc ized rep esentative I Date si red (month, day, year)
Of
Title
'Ova I ui 4
0
FOR USE OF THE DESIGNATING e••
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. ❑ 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:
❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ 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 by: ignature titled utho ' ad member of designating body)
Telephone nu ber
Date signed (month, day, year)
Pd'ate4 name of authorized mem er of designating body
Name d signating body
Attested b gnature and tide of attester)
"r
Print90 irme of attester
's
.v S T,c
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 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-IA
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 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 Dourly wage for existing employees $ $ 15.71
2. Average hourly wage for projected new positions $ $ 13 - $ 15
3. Average hourly health insurance benefit $ $ 2.33
1. The length ofthe abatement you are requesting 10
(41-10 year abatement may be reguested for real estate improvements and manufacturing equoment.)
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
i. 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 ins►iranCe
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.
and Title) J T-fnatn'vr
B & F Plastics Inc.
Attachment to SB-1 and SB-1A
Manufacturing Equipment to be Purchased
Line Expansion and Take -off Rebuild
1. Line 5 — New Takeoff and Support Equipment $ 800,000
Automatic Gauge Controls
120" or greater Die and Adaptor
GSH 600/800 Granulator
Discharge conveyor for Shredder
Single Shaft Shredder
Wysong Shear
Tow Motor
6 to 8 Additional Rolls
Necessary Support Equipment
Creates 3 — 4 new jobs
Purchased from Indiana, Ohio and various States
Projected Live 10 —15 Years
Start date 711112016 Completion Date 1213112017
Line Upgrade for Electric & Water Conservation to support Plastic Industry movement to "Go Grren"
2. Line 16 — Modernization
HMI Controller
PLC Controller Drives to replace outdated controller
Pump System Replacement including Plumbing lines
Gearbox Rebuild
Necessary Support Equipment
Maintains 6 — 8 jobs
Substantially reduces electrical and water usage
Purchased from 50 contiguous states
Projected life 10 —15 Years
Start Date 71112016 Completion Date 71112017
Line Modernization for Sustainability & Product Expansion
$ 500,000
3. Various Necessary Line Upgrades $ 500,000
Wysong Shears
Chromium Rolls
PLC Controllers
Extruders, Dies & Gearboxes
Pumps, Motors & AC Extruder Drives
Necessary Support Equipment
Maintains 6 —12 jobs
Purchased from 50 contiguous states
Projected Life 10 —15 years
Start Date 71112016 Completion Date 1213112017