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Home My Public Portal About054-2017 - Abatement - Omen USA - Equipment - STRICKENCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO.54-2017 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 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, 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 is also entitled to deductions from the assessed value, pursuant to Indiana law, 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, 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. 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. 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. 5. That the totality of the benefits is sufficient to justify the deduction being applied at the eight -five percent (85%) rate as allowed by Ordinance No. 76-2011. 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. 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, 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. 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. 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. 5. That the totality of the benefits is sufficient to justify the deduction being applied at the eighty-five percent (85%) rate as allowed by Ordinance No. 76-2011. 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. 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 — 3 YEARS Omen USA, Inc. Current Jobs: 2 Jobs Retained: 2 Jobs Created: 200 Estimated New Value: $35,760,000.00 Dated: September 26, 2017 Passed and adopted this day of of the City of Richmond, Indiana. Jamie Lopeman ATTEST: , City Clerk (Karen Chasteen, IAMC, MMC) 2017, by the Common Council President PRESENTED to the Mayor of the City of Richmond, Indiana, this day of , 2017, at 9:00 a.m. City Clerk (Karen Chasteen, IAMC, MMC) APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this day of , 2017, at 9:05 a.m. Mayor (David M. Snow) ATTEST: , City Clerk (Karen Chasteen, IAMC, MMC) s 1 STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R4 1 11-15) Mi. 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 15 1 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 matting its decision about whether to designate an Economic Revitalization Area Otherwise this statement must be to the designating body BEFORE a person installs the new manufactunngg equipment and/or research and development equipment. and/or logistical distnbubon equipment and/or information technology equipment /or which the person wishes to claim a deduction. 2 The statement of benefits form must be submitted to file designating body and the area designated an economic revitalization area before the installation of qualifying abatable equipment for whkh (fie person desires to claim a deduction. 3. To obtain a deduction, a person must file a certified deduction schedule with Me person's personal property return on a certified deduction schedule (Form 103•ERA) will) the township assessor of the township where the property is situated or with (he county assessor it there Is no township assessor for the township. The 103-ERA most be riled between January 1 and May 15 of the assessment year in which new manufacturing equipment andlor research and development equipment andlor 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 riling extension must file the form behveen January 1 and the extended due date of that year, 4. Property owners whose Statement of Benefits was approved, must submit Form CF-11PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12,1-5.6) 5. For a Form SB-1lPP that is approved alter June 30, 2013 the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-ItPP 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 1 TAXPAYER INFORMATION Name of taxpayer Name of contact person Omen USA Inc Dror De —Porto Address of taxpayer (street and number, city, state, ZIP code) Telephone number 1600 Rich Road Richmond IN 47379 765-200-6007 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (a) Common Council of Richmond 10-1984;11-1991 Location of property County DLFG taxing district number 1600 Rich Road Richmond IN 47374 Wayne Richmond Description of manufacturing equipment andior 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 01/01/2016 12/31/2020 see attached R & D Equipment Logist Dist Equipment' IT EquipmentSECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 2 79,290 2 79,290 200 5,800,000 SECTION• TOTAL COSTAND VALUE OF •••• • PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING EQUIPMENT R 3 D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT COST of the roe is confidential. property Cost Assessedseas Cost Coat SOSSQ Cost SCKS. Value Value Value Value Current values 0 Plus estimated values of proposed project 35, 760, 006 Less values of any property being replaced Net estimated values upon completion of project 35,160, 000 SECTION 5 WASTE CONVERTED AND•THER BENEFITS PROMISED B Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: Health insurance will be provided to all full time employees •CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative Date st ned tenth, day, year) Printed name of authorized representative Drar + , arm utvl>v1,vtr, Inc;. Form SBAIPP, page 1 - NACTP 1585 - Software only copyright 0 2017 DiS, Inc. ClientlLoc 25221 000 Form SBAA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Omen USA, Inc.,1600 Rich Road, Richmond, IN 47374 Contact person: Dror De -Porto 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 0.00 2. Average hourly wage for projected new positions 3.6.4 2 3. Average hourly health insurance benefit 3.76 1. The length of the abatement you are requesting (A 1-10 year abatement may be requested for real estate improvements and manufacturing equipment.) 10 year abatement 2. If purchasing equipment, please attach a list that includes the following: see attached • 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 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 hot."Je jq pffttd'tn total cost per eligible employee divided by 2080 hours. (Authorized Title) G (Date) ORDINANCE NO. 7&2Q11 A 5PECIAi, ORDINANCE ALLOWING AN ALWERNAIM ABATEiVIEA1'T DEDiTC1TON SCHEDULE FORPROPERTY OW1q W OBTAINING DEDTJCTIONS FROt1+>< ASSESSED VALUE OF CERTAIN PROPERTY NVrI IN AN ECONOMC REMALMA TION AREA WEMMAS, pursuarl to Indiana Law, I.C. 6-1.1-121 et seq., the Common Council of the City of Richmond, Indiana may fund that a parde War area within the city is an Economic Revitdin4on Area which provides as an economic development incentive certain prope dy tax deductions far the redevelopment or rehabilitation of heat property or the installation of new Mam6cnuing equipmma, and, WHEREAS, the Common Count has previously adoptexl Resolution No. 10-1984 which designates certain areas in the city as Economic Revitalization Areas and sets forth certain procadures for an owner to obtain certain deductions therein, and 'WHEREAS, Resolution No. 10-1994 has previously been amended to add other areas as an ERA, malting the time definition changes to the orignal ordinance; forth periods in which a deduction is allowed; and establishing other procedures for obtah* deductions (see Reaoluflona 2-1987; 11-1989,11- 1991, 3-1996, Ordinances 72•-1996, 90-1996, 113-1997, 19-2000, 29- 2006, 31-2007); and WAIT EAa, Indiana law has previously allowed the owner of rest property and personal property located within an eoonomic r" tWhAtion aroa to request a deduction over a one (1) to ten (10) year period and has previously established the abatement deduction schedules ibr real property deductions and personal property deductions; and WAS. Abatement deduction schedules for real property and personal property are set forth and outlined by Indiana Law and the Common Council, as the dw*Wng bOdY, MAY approve the number of years any given deduction applicant may take an approved deduction; and WHi31RlEtAA As set forth in the above- &MWW Resolutions and Ordimances, Common Came as the designa€ing body, has previously deter inerd the applicable time period in each Special Ordinaace approvhW a speaEc Statement of Benefits, and WEEREAS, Effective July 1, 2011, Indiana Code (IC) 6-1.1-12.1-1 et seq, provides a designating body fleodirility to approve an altmnative abatement deduction schedule on either real estate and/or personal property to a busittess that is established in, or relocating to an economic revita hM ion area and receives a deduction; ion; and 2. Addntionatiy, if the minimum conditions outlined in #1b., #Ie., and #id. above are met, Richmond Common Council may increase the alternative abatement deduction described above by 5% if the business invests a minimum of $5,000,000 or by ten (10%) percent if the business invests a minimum of $10po 000,. 3. lf the mini num conditions outlined in #11., #la, and #ld. are met, the Richmond Common Cound may increase the alternative abatement deduction described above by 5% if the business adds a minimum of twenty (20) new employees, or by ten (10%) percent if the business adds a minimum of thirty (30) new employees 4. If the minimum conditions outlined in #la., #1b., #lc., and #ld. above are met, the Richmond Common Council may increase the alternative abatement deduction descrbed above by 5% if the bushms pays at least double the state minimum wage for new employees hired 5. The percentage increases described in #2, #3, and #4 above are independent of each other. As such, a qualifying applicant could possibly achieve a one hundred (100%) percent deduction. 6. A business requesting an alternative abatement deduction schedule shall Provided a letter requesting an alternative abatement deduction schedule and shall provide proof of the applicable justification with the standard application materials. PASSED AMID ADOPTED this 17th day of January 2012, by the Common Council of the City ofRichmond, Indiana. President Fhdip Mathew Quinn A Kmn Chasteeq IAMC,MMC PRESENTED to the Mayor of the City of Richmond, Indiana, this 18th day of January, 2012, at 9:00 a.m. auiieeo, I MC, MMC APPROVED by me y Sarah L. Hutton, Mayor of the City offtb mand, Indiana, this 18th day of January, 2012, at 9:05 a.m. i A�a.Mayor, (Sarah L. Hutton) 1 A T: `! Chasteen, IAMC, MMC