HomeMy Public PortalAbout085-2015 - Tax Abatement - Grafcor - Manufacturing Equipment( `✓
COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO.85-2015
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-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:
MANUFACTURING EQUIPMENT -10 YEARS
Grafcor, Inc.
Current Jobs: 21
Jobs Retained: 19
Jobs Created: 33
Estimated New Value: $673,322.00
Dated: November 5, 2015
?-0 / L
Passed and adopted this day ,-2&1-5-,--by the Common
Council of the City of Richmond, Indiana.
President
(Dr. Ronald Oler)
ATTEST:
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, tV4l day 261 S,
at 9:00 a.m.
(Karen Chasteen, I C, MMC)
VED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, thiy/_--�,_ day of
i� -,&-74U 5. at 9:05 a.m.
v
i
ayor
. Cb�pv
ATTEST: , City Clerk
(Karen Chasteen, IAMC, MMC)
STATEMENT OF BENEFITS
PERSONAL PROPERTY
State Form 51764 (R2112-11)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS:
FORM SB-1 I PP7
PRIVACY NOTICE
The cost and any specific andrvhduats
salaryinfouns*m is aurfiderdlal; the
befeme of the Eft Is ubfc record
per IC 6-1.1-12.1 1 c and
1. This statement must be submitted to the body designating the Economic Revitatzation Area prior to the public hearing if the designating body requires
infamtatbn from the applicant in making is decision about whether to designate an Economic RevWkstion Aree. Otherwise this statement must be sthbmftted
to the designating body BEFORE a person kkO#s the new marulfadtning equipment artd/orreseareh and development equrpmenht andbrioglslical distribution
equpment and/or infom iWon technology equipment for which the person wishes to dalm a deduction. 'Projects"planned or committed to after July 1, 1987,
and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (1C 6-1.1-121)
2- AAwmI of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to kateilet n of the new manufadur m equfpmerht
andbr research and development equipment and/or logistical distribution equipment and/or informetbn technology equiome►4 BEFORE a deduction may
be approved
3. To obtain a deduction, a person must fife a certified deduction schedule with the peraon's personal property return on a cerdfied deducGan schedule (Form
103-ERA) with the township assessor of the township where fire property is situated or with the county assessor N there is no township assessor for the
township. The 103-ER4 must be Ned between March i and May 15 of the assessment year in which new manufacturing oquhpment and/or research and
development equipment and/or logistical distribution equipment and/or information technology equipment is Instated and fully functional, unless a Ming
extension has been obtained. A person who obtains a filing extension must No the form between March 1 and the extended due date of that year.
4. Property owners whose Statement of Benefrts was approved after June 30, 1991, must submit Form CIF' /PP annually to show compliance with the
Statement of Benefits.
5. The schedules established under IC 6-1.1-121-4.5(d) and (a) apply to equpment Installed after March 1, 2001, unless an atematve deduction srdhedde is
adapted by the designating body (iC 6-1.1-12.1-17),
Name of tsapayer
Address of tahrpayer (number andatreeg. atk state. arhdZlPcodeJ 601 N.W.
I , ` /t . C� S.t..r�i- Rl C6 �,.L "1 /d
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Name of contact person �ti 11� n %1 1 C lea 1 O IA �
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SECT10% 2 LOCAT10% AND DESCRIPTION OF PROPOSED PROJECT
513 2B5 — l0 If4
Name of design d ng body , (
Rwdu§m rrmtber (a)
Location of property r1 \ ,r
Clnf�,ot� 1 �q
County
W
DLGF 1 �dishidnumber
03
DeatxipUort of manufacturing tfiptnentan or resrrerch and development equipment
arhdiora l�) dietrfbudon equipment and/or h ilm n hriion t�edmotogy equipment.
(use sheets d necessarA
ESIIMATEb
START DATE
COMP Ei i NV DATE
Manufaeturkv Equipment
12, o 1 S
'l(iO16
R& D Equipment
N N
N 1
Logist Dist Equipfrhent
U N
0 A
IT Equipment
oilsoi6
IoOuI6
tAaharht number l Z 6 $Z Number rate SaID Wmbw d ftrW SWeries
1 �53 12533 1270 oc3v
-
NOTE: Pumusnt to IC 6-1.1-12.".1 (d) (2) the
COST of the property is confidential.
MANUFACTURING
R & D EQUIPMENT
LOGI T DWT IT EQUIPMENT
COS I ASSESSED
\f m
COST
ASWWW
% ALlIE
COST
AS86SS191
MiWE E
Cuffentvabbs
FW1633A00
O
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0
0
Plus sedmated values of act
O
O
0 tw
Less vdues of arty propedy being replaced
O
O
Net estimated values WAn of pMjpg
I (Alcl9aft
0
2
Estinwted solid waste oortverted (pounds)
Estimated hazardous waste converted (pourrda)
11
otherberhefRs: A SI(j(11�1�°1 orvutAr� oi` Tito nin- wit -P(o(h 0 0(AtS' 4, °ind
n- ko(AsQ� x gegi\ Psi,,�; i S bc,� h�,dd�� �ci, �S a n�,r� SGSi it -b -+1v;S
1 hweby certify the regnmentaElone In this statement are true.
siyrnatas of aNhorb ed C vak , / o-\
Crnont
' C f o1� Q. 1.Data
signedI S' G" - r
375
v V Page 1 of 2
We have reviewed our prior actions relating to the designation of this economic revitalization area and bind 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 2.6, 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
B . The type of deduction that is allowed in the designated area is limited to:
'es
1. Installation of now manufacturing equipment;
R-f
0 N o
2. Installation of new research and development equipment;
❑Yes
❑ N o
3. Installation of new logistical distribution equipment
❑Yes
❑ N o
4. Installation of now information technology equipment;
❑ Yes
❑ N o
C. The amount of deduction applicable to new manufacturing equipment is limited 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 limited to $ cost with an assessed value of
s
F. The amount of deduction applicable to now information technology equipment Is limited to $
tx Other limitations or conditions (Vec)w ?Q.A, OQ V t Al AtJ CE $S "ZOO S
cost with an assessed value of
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 dalmed eligible for deduction on or after July 1, 2000, is snowed for.
❑ 1 year ❑ 6 years " For ERNS established prior to July 1, 2000, 2* a
❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted.
❑ 3 years ❑ a years
❑ 4 years ❑ g re
❑ 5 years " 10 years "
I. Did the d n body ado an alternative deduction schedule (9s—�3
esig sting y adopt periC6-1.1-12.1-17? Yes [IN. QQR.. Qte.p.
If yes, attach a copy of the alternative deduction schedule to this form. AltA A Q
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.
!2�
ofauthorized Telephone number Dale (M-M. day, year)
(746) 98'3— /-- y—i
axested W. DesOnfled body
• If the designating body limits the time period during which an area Is an economic revitalization area, it does not limit the length of time a taxpayer is
entitled to receive a deduction to a number of years designated under IC 6-1.1-12.1-4.5
Page 2 of 2
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person: & rc- ka r, C)C -
0
t� , Te'4 XOJ4'7 3�S
The information requested on this supplement to form SB-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 $ 23'Sg
2. Average hourly wage for projected new positions $ 19.5S
3. Average hourly health insurance benefit $ 3,00
1. The length of the abatement you are requesting 1() > Q' Oaf's
(A 1-10 year abatement may be requested for real estate improvements and mansocturing 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
• 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
DEFiNMONS
1. Average hourly wage for existing employees: for your most recent payperiod 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 supervisorypersonnel;
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 compa►ry paid health insurance
benefits provided to hourly employees (as damned above) and family members. Please present in the
form of an hourly rate computed using annual cost per eligible employee divided by 2080 hours.
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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
l A
•
§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 day o x.�, by the Common
Council of the City of Richmond, Indiana.
President
Parker
A S
Karen Chasteen, IAMC, MMC
P E SENTED to the Mayor of the City of Richmond, Indiana, this day of
, 2013, at 9:00 a.m.
Karen Chasteen, IAMC, MMC
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
A 0 day of Ala 1/ , 2013, at 9:05 a.m.
, Mayor
(Sarah L. Hutton)
ATTES . tGit�c�e1e1c��
Karen Chasteen, IAMC, MMC