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Home My Public Portal About009-2018 - Abatement - Wayne Machine - EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA AMENDED ORDINANCE NO.9-2018 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-l. 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-I 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, 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 — 9 YEARS Wayne Machine Manufacturers, Inc. Current Jobs: 16 Jobs Retained: 16 Jobs Created: 5 Estimated New Value: $600,000.00 Dated: January 10, 2018 Passed and adopted this �)C) day o 2018, by the Common Council of the City of Richmond, Indiana. President (J opeman ATTES (Karen Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, this-9 day of , 2018, at 9:00 a.m. (Karen Chasteen, IAMC, MMC) APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this 6 day of - F-u , 2018, at 3; Z6( P., A (Karen Chasteen, IAMC, MMC) Mayor ' "•� STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R4 / 11-15) �+ .P Prescribed by the Department of Local Government Finance INSTRUCTIONS FORM SBA / 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 6-1.1-12.1-5.1. 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 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 form 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. (IC 6-1.1-12.1-5.6) 5. For a Form SB-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) SECTION•- • Name of taxpayer Name of contact person WAYNE MACHINE MANUFACTURERS, INC JEFF BAKER, PRESIDENT Address of taxpayer (number and street, city, state, and ZIP code) Telephone number CURRENT: 1747 S 5TH ST, RICHMOND FUTURE: 1238 RICH RD, RICHMOND, IN ( 765 ) 962-0459 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT 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 1238 RICH RD, 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.) CNC-LASER CUTTING MACHINE, SUPPORT EQUIPMENT, FIXTURES, Manufacturing Equipment 01/10/2018 12/31/2018 TOOLING, & BUILDING MODIFICATIONS FOR NEW EQUIPMENT AND R & D Equipment EQUIPMENT MOVED FROM S 5TH, INCLUDING POWER WIRING Logist Dist Equipment NEEDED FOR ALL MACHINES & SUPPORT EQUIPMENT IT Equipment SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 16 540,000 1 16 540,000 3-5 90,000 - 150,000 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 E UIPMENT E UIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values 308,919 88,060 Plus estimated values of proposed project 600,000 240,000 Less values of any property being replaced Net estimated values upon completion of project 1 908,919 1 328,060 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION• I her i that r esentations in this statement are true. onz epr entative SigFFBAK Date signed (month, day, year) 1 /10/2018 uthorized representative Title ER PRESIDENT Page 1 of 2 FOR USE OF DESIGNATING :•. 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 to 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; 0 fes ❑ 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 approved for one or more of these types. 3 . Installation of new logistical distribution equipment. El Yes ❑ No 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. Approved by: (signature and title of authorized member of designating body) Telephone number Date signed (month, day, year) Printed name of authorized member of designating body Name of designating body Attested by: (signature and title of attester) Printed name of attester ' 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-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: F F b p XF IR -WAYNF 14A Ciq lntF MAMt)FACT 1upERS, 1)(£'. 107407 S. 5-r/4 S f 1? a 1 ( The information requested on this supp ementI-IKl to o� §$1imust be completed and submitted along with your Sl3-1 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 $ / 4 — 2 d to aO 2. Average hourly wage for projected new positions $ 3. Average hourly health insurance benefit $ — v 1. The length of the abatement you are requesting / O (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 • 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 egooyees (as defined above) and family members. Please present in the form of an hourlWate comp d using the annual cost per eligible employee divided by 2080 hours. and Title) :J_ 1-10-90116 (Date) Wayne Machine Manufacturers, Inc 1238 Rich Road Richmond In, 47374 Attachment to For SB-1A Business Relocation Immediate addition of 2 — 3 employees Building Purchase-1238 Rich Road, Richmond Indiana $ 250,000.00 January 2018 Restore Plumbing, Electrical, and Utilities to Current Structure —Start Date at Closing January 2018 Restore Sprinkler & Fire Protection Equipment, Heating and AC Equipment and Upgrade Office and Manufacturing Space — Completion Date December 2018 Estimated Useful Life 20 Years Purchase Location — Local Contractors, Local Material Suppliers, and Local Utilities Estimated Projected Costs for Improvements $ 300,000.00 Equipment Expansion for New Customers Additional addition of 2 — 3 employees with new equipment installed CNC — Laser Cutting Machine Projected Costs $ 600,000.00 Support Equipment, Fixtures & Tooling Building Modifications for New Equipment Building Modifications & Power Wiring for Existing Equipment Support Equipment Estimated Useful Life 10 —15 years Purchase Location Unknown at present time, Likely Midwest Region of US Equipment will be Purchased Not Leased