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HomeMy Public PortalAbout084-2015 - Tax Abatement - Grafcor - ITCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO.84-2015 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: IT EQUIPMENT — 5 YEARS Grafcor, Inc. Current Jobs: 21 Jobs Retained: 19 Jobs Created: 33 Estimated New Value: $45,945.00 Dated: November 5, 2015 Passed and adopted this _-IC/ day Council of the City of Richmond, Indiana. AVEST: '*'/Co o , � by the Common d— President (Dr. Ronald Oler) (Kaaren Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, thiyj day 15, 2eX6 at 9:00 a.m. /�((arenChasteen, IAMC, MMC) PROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of 015, at 9:05 a.m. ATTEST: , City Clerk (Karen Chasteen, IAMC, MMC) STATEMENT OF BENEFITS faPERSONAL PROPERTY Stale Form 51764 (R2112-11) Prescribed by the Department of Local Govemment Finance FORM S13-1 / PP PRIVACY NOTICE The cost and ary saecliic crdoiduds salary inch =*ffl is oa 6dadiat; the balatree o1 the Fs reornd IC 6-1.1-12.1 t c and AVSTRVC770NS. 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing 9 the designating body requires ktoffaoh t from the oppkarrth mekwng lls dadsian about whetherto designate sn Eca *mk Revitatlzation Ame. Otherwise Bras statement must be submMed to Me destneft body BEFORE a person installs the newer equipment and/wreseatch and development equipment, an d43r bg1stita3l distribution equipinant arxlbr Wwrnabn bdwAbV equipment for which the person wishes to dakn a deduction. 'Projects• planned or omwmftted to aRer Judy 1, 1987, and areas designated after A* 1, 1987, require a STATEMENT OF BENEFITS. (1C 6-1.1-121) 2 Approval of the designating body (Uy Courxal( Town Board, County Courant etc.) must be obtained prior to iudallation of the new manufacturing equipment andbr research and development equpment and/or logistical datrfbutitln equipment and/or ww netion technology eglapmenC BEFORE a deduction may be approved 3. To obtain a deduction, a person must fie a certified deduction schedule with the personis personal property raturn on a certified deduction schedule (Form 1034:7A) with the township assessor of the township where the property is situated or wt71r the aomW assessor if Omm is no toMmship assessor for the township. The 103-ERA must be filed between March 1 and May 15 of the assessment year in which new manufacturing equ*metd and/or research and development equipment anchor lcgiskai distdbudon equipment and/or intortr bon technology equ4pment is Installed and f * funetionaf, unless a firing extension has been obtained A person who obtains a filing extension must fete the form between Match 1 and the extended due date of that year. 4. Property owners whose Statement of Benefds was approved aller June 30, 1991, must submit Form Cl-f / PP annually to show compliance with the Scaternent of Benefits (IC 6-1.1-121-5 6) 5. The schedules esttabbhed under IC 6-1.1-121-4.5(c7 and (a) apply to equipment Mstaped after March 1, 2001, unless an all ma6W deduction sdiedide is adopted by the designating body (IC 6-1.1-12.7-17). Name of wrpayar Woo r- -:rr)C '. /�'j/ Address of taMWW (ntsr wand abetc abb. andZlpco*) So ( N.W. I (Y I , � A /. ['rW� S+k Jt91 C') 4`jd Tn Nwne of oardod palm Uri k (N f YI C CaIto, 17-5-- •. . Name of desnOrwliirg body ; R� ilild ,Z'S5-10 If-4 ReedUbn number (a) Looneon sp y R;cl�t O" Z �; "qIc" W� r��. DLGF a3 d- 0 tLr Descriptor► ofntaradacWft ar renseardi and development equipment andlar:n1 dbfi tim Esq�i and/or kdommtion1 tedunobgy equkmiert (use shoe$ 9na0es88ry� ESTIMA ED START DATE COMPLETION GATE MawfaMft Ea neat ,Z /,O t S o2li,016 R & D Equipment LDgidW&PApr,ent u a REq 01 oi6 02 �t 6 OF taan.ntaannZ 1 2 68Z 1""I 5a 53 t t4uilb.r.ddlrpnal ocx� NOTE: Pureuot ID IC 6-1.1-12.1-ti 1(4) (2) the YAE UFACTIIRDIG D CQUIPNE"T COST of the properly is 0onmen" COSH COST ASSESSM UVJJE fT EQl1NT tAGIST 9QWN:--- COST 11Z� COST ASSESSM Cnmertvatues (W O o o O 37 000 Pphs esiknated values of 3 6 0 O O v c>o Less vdues of arW propertyAL O Net estnremed lr hm upon caupkdon of project 1yxi, --a-- V,'ASTE a Ean*ad add waste converted (poUnds) ' EsUmated hazardous waste cornranted (poutds) ouiardeneRfs A 5��nli'1c�1�c gh�vN� o '�f�,intn� wig o OWSi 0� °inj I n- it sQ, 5C Pr���'; i s bet O,dd, ►S a Ako s�ii i1 -to*iS fticxty' I hereby certfy dm tepnmenWom In fife statement are true. r C 7� ea�o��� ' \./ . U Page 1 of 2 3?5 We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adapted 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 Mniled to a period of time not to exceed calendar years • (see below). The date this designation expires Is- 0 . The type of deduction that Is allowed in the designated area is limited to: 1. Installation of new manufacturing eqt pmeM Oyes ❑ N o 2. Installation of new research and development equipment; ❑ Yes ❑ N o 3. Installation of new logistical distribution equip rent s ❑ N o 4, kwtaiation of new information technology equipment; Yes ❑ No C. The amount of deduction applicable to new manufacturing equipment is !'anited to $ cost with an assessed value of $ D. The amount of deduction applicable to new research and development equipment Is limited to $ cost with an assessed value of $ E . The amount of deduction applicable to new logistical distribution equipment is united to $ cost with an assessed value of $ F. The annount of deduction applicable to new intarmotion technology equipment Is !Ir>ited to $ oost wRh an assessed value of $ C% other imitations or conditions (apeoif}� ��� QVZA! Jai t:.i� 8q— ZCCI5 K The deduction for now mamdecauing equipment and/or new research and development equipment ardlar new logistical dislribution equipment and/or new Irlonnation tedinology equipment Installed and first dalmed eligible for deduction on or after July 1, 2000, Is allowed for: ❑ 1 year 116 years " For ERNS established prior to July 1, 2000, g* a ❑ 2 years ❑ 7 years 5 or 10 year schedule maybe deducted. ❑ 3 years ❑ 8 years ❑ ❑ 9 years 95yam ❑ 10yeant" I, Did the designating body adopt an alternative deduc$m schedule per IC 6-1.142.1-17? es ❑ No 090. (p 6 -ZOt 3 If yea, attach a copy of the alternative deduction schedule to this form. AM AUM Also we have reviewed Ore Irib ination corrtained into statement of benefits and Arid that the estimates and expedatiom are reasorable and have detomdned that the tol ally of benefits Is siren iro )u * the deduction described above. Telepiwne M mber Date signed (manic; dills Y'm) 03 • If the doeignoft body ImMs the Time period fti g u"ch an area lo an eoonanic revitalization area, it does not limit the length of time a Wye• Is entitled to receive a deduction to a number of years designated under IC 6-1.1-12.1.4.5 Page 2 of Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person:- o tch-v'oe4, 3 The information requested on this supplement to form 813-1 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 g 23.3l? 2. Average hourly wage for projected new positions 9 ' ss 3. Average hourly health insurance benefit s3,00 1. The length of the abatement you are requesting (A 1-10 year abatement may be 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 J • the state(s) in which the equipment is being brought into Indiana from if purchasing used equipment J• the cost of each piece of equipment j • 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 • «xis of the proposed real estate improvements DEFLKMONS 1. Average hourly wage far existing employees: for your most mempaype+"iodpleareprowde the average base wage per hour for all current full time, aon4uPvvuory employees. Do not imdu& the followinggroW. A. part time employees; B. management, supervisors, foremen, or any other stper►'ivorypersonnel.. G owners, stoc,Eholdem or partners if they own 2% or more of the businnew and their family members 2. Average hourly wage for projected new positions: Use the same definition of employees to be included as in mmnber one above. 3. Average hourly heahh 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 annual cast per eligible employee divided by 2080 hours. Te ) cO 111,sI- i' l I 'ILrued signature and Title) (Date) 888888888 ggg��� A >C 6,6 O1 pp N V1 Y1 M 1� E c N H H lD N M WN a °p v d T N V m N H 9 ZI gn E M Y E M �Goonor88o8to H N �Ln n N O O M o`rov ooa o nn 00 O N Oi GO Oi O W f� a, M D1 H e T N N.20 kD 4D m %D lD H O 01 01 O O N N H H 1fl Y1 O O \ \ \ \ \ \ : N 00 to T ..e�{� N H H T> 0 0 0 0 0 H 0 0 W x V .- Y A n m od N N w N1 , ! E � ■i.77|)■$ llfaaf71 ƒ; | | ;;.;; :■;;;� ;; � ■a;aa �£&)ii) aI I #k\kk§-!;§|$ ;.B■aaB; Ed■waaa; sa a k■�kkk �kk)k#§k `! & ■��;�; Ewd�e= „ " ) . ,� k §■§�a2A4 �.11 ©; |I © [i- 5w ;3 W, R ; b■a 88 ra,aasa; 99 ORDINANCE NO.65- 2013 A SPECIAL ORDINANCE ESTABLISHING DEDUCTION SCHEDULES FOR PROPERTY OWNERS OBTAINING DEDUCTIONS FROM ASSESSED VALUE OF CERTAIN PROPERTY WITHIN AN ECONOMIC REVITALIZATION AREA WHEREAS, Pursuant to Indiana Law, I.C. 6-1.1-12.1 et. seq., the Common Council of the City of Richmond; Indiana may find that a particular area within the city is an Economic Revitalization Area which provides as an economic development incentive certain property tax deductions for the redevelopment or rehabilitation of real property or the installation of new manufacturing equipment; and WHEREAS, The Common Council has previously adopted Resolution No. 10-1984 which designates certain areas in the City as Economic Revitalization Areas and sets forth certain procedures for an owner to obtain certain deductions therein; and WHEREAS, Resolution No. 10-1984 has previously been amended to add other areas as an ERA; making definition changes to the original ordinance, setting forth the time periods in which a deduction is allowed, and establishing other procedures for obtaining deductions (see Resolutions 2-1987, 11- 1989, 11-1991, 3-1996, Ordinances 72-1996, 90-1996, 113-1997, 19- 2000, 29-2006, 31-2007, and 76-2011); and WHEREAS, Indiana law has previously allowed the owner of real property and personal property located within an economic revitalization area to request a deduction over a one (1) to ten (10) year period and has previously established the abatement deduction schedules for real property deductions and personal property deductions; and WHEREAS, Effective July 1, 2013, Indiana Code (IC) 6-1.1-12.1-1 et seq. requires a designating body to establish an abatement deduction schedule for each deduction including the percentage of the deduction for each year the deduction is granted not to exceed 10 years; and WHEREAS, Ordinance 76-2011 provides criteria for the establishment of alternate abatement deduction schedules; and WHEREAS, Pursuant to IC 6-1.1-12.1-17(b), Common Council desires to establish deduction schedules that parallel the deduction schedules previously outlined in IC 6-1.1-12.1 et. seq. (see P.L.112-2012 §27 and P.L.6-2012 §41), for businesses expanding or relocating in economic revitalization areas in Richmond not utilizing the criteria outlined in ordinance 76-2011. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Richmond, Indiana, that deduction schedules for personal property and real estate deductions permitted by IC 6-1.1-12.1 et. seq. that do not utilize the alternative abatement deduction schedule outlined in Ordinance 76-2011 are set forth as follows: Real Property Deductions 1. For deductions allowed for a one (1) year period: Year 1 100% 2. For deductions allowed for a two (2) year period: Year 1 100% Year 2 50% 3. For deductions allowed for a three (3) year period: Year 1 100% Year 2 66% Year 3 33% 4. For deductions allowed for a four (4) year period: Year 1 100% Year 2 75% Year 3 50% Year 4 25% 5. For deductions allowed for a five (5) year period: Year 1 100% Year 2 80% Year 3 60% Year 4 40% Year 5 20% 6. For deductions allowed for a six (6) year period: Year 1 100% Year 2 85% Year 3 66% Year 4 50% Year 5 34% Year 6 17% 7. For deductions allowed for a seven (7) year period: Year 1 100% Year 2 85% Year 3 71 % Year 4 57% Year 5 43% Year 6 29% Year 7 14% 8. For deductions allowed for a eight (8) year period: Year 1 100% Year 2 88% Year 3 75% Year 4 63 % Year 5 50% Year 6 38% Year 7 25% Year 8 13 % 9. For deductions allowed for a nine (9) year period: Year 1 100% Year 2 88% Year 3 77% Year 4 66% Year 5 55% Year 6 44% Year 7 33% Year 8 22% Year 9 11 % 10. For deductions allowed for a ten (10) year period: Year 1 100% Year 2 95% Year 3 80% Year 4 65% Year 5 50% Year 6 40% Year 7 30% Year 8 20% Year 9 10% Year 10 5% Personal Property Deductions 1. For deductions allowed for a one (1) year period: Year 1 100% 2. For deductions allowed for a two (2) year period: Year 1 100% Year 2 50% 3. For deductions allowed for a three (3) year period: Year 1 100% Year 2 66% Year 3 33% 4. For deductions allowed for a four (4) year period: Year 1 100% Year 2 75% Year 3. 50% Year 4 25% 5. For deductions allowed for a five (5) year period: Year 1 100% Year 2 80% Year 3 60% Year 4 40% Year 5 20% 6. For deductions allowed for a six (6) year period: Year 1 100% Year 2 85% Year 3 66% Year 4 50% Year 5 34% Year 6 25% 7. For deductions allowed for a seven (7) year period: Year 1 100% Year 2 85% Year 3 71 % Year 4 57% Year 5 43% Year 6 29% Year 7 14% 8. For deductions allowed for a eight (8) year period: Year 1 100% Year 2 88% Year 3 75% Year 4 63% Year 5 50% Year 6 38% Year 7 25% Year 8 13% 9. For deductions allowed for a nine (9) year period: Year 1 100% Year 2 88% Year 3 77% Year 4 66% Year 5 55% Year 6 44% Year 7 33% Year 8 22% Year 9 11 % 10. For deductions allowed for a ten (10) year period: Year 1 100% Year 2 90% Year 3 80% Year 4 70% Year 5 60% Year 6 50% Year 7 40% Year 8 30% Year 9 20% Year 10 10% PASSED AND ADOPTED this Council of the City of Richmond, Indiana. A S Karen Chasteen, iAMC, MMC day o , by the Common President P ker PRESENTED to the Mayor of the City of Richmond, Indiana, this 1�0 day of 2013, at 9:00 a.m. lerk Karen Chasteen, IAMC, MMC APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this j 0 day of , 2013, at 9:05 a.m. C����AMayor (Sarah L. Hutton) ATTES •ACit�rsels� Karen Chasteen, IAMC, MMC