HomeMy Public PortalAbout018-2018 - Abatement - Elder Family Partners - Real EstateCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO. 18-2018
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-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:
REAL ESTATE - 10 YEARS
Elder Family Partners, L.P.
Current Jobs: 100
Jobs Retained: 100
Jobs Created: 100
Estimated New Value: $1,400,000.00
Dated: February 14, 2018
Passed and adopted this /9'�' day of 14, u-2018, by the Common Council of the
City of Richmond, Indiana.
President
(Jam' peman)
ATTES 't
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of
2018, at 9:00 a.m.
(Karen Chasteen, IAMC, MMC)
APP OVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this 2
day of R , 2018, at 9 m. ( : q(,, n
Mayor
vid M. Sno
ATTES
(Karen Chasteen, IAMC, MMC)
`STATEMENT OF BENEFITS
REAL ESTATE IMPROVEMENTS
State Form 51767 (R6 / 10-14)
per.
Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
XJ Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4)
❑ Residentially distressed area (IC 6-1.1-12.1-4.1)
INSTRUCTIONS:
2017 PAY 2018
FORM SETA I Real Property
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 6-1.1-12A-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 the redevelopment or rehabilitation of real property 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 initiation of
the redevelopment or rehabilitation for which the person desires to claim a deduction.
3. To obtain a deduction, a Form 3221RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty (30) days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who
failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year.
4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-I/Real
Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
IC 6-1.1-12.1-5. 1 (b)
5. For a Form SB-1/Real Property 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/Reai Property 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
Elder Family Partners, LP
Address of taxpayer (number and street, city, state, and ZIP code)
4251 Industries Road Richmond IN 47374
Name of contact person
Telephone number
E-mail address
Mark Harrington
765-962-9511
mark.harrington@vandorcorp.co
SECTION 2 LOCATION AND DESCRIPTION OF
PROPOSED PROJECT
Name of designating body
Resolution number
Richmond Common Council
Location of property
County
DLFG taxing district number
1620 Rich Road Richmond IN 47374
Wayne
Ricmond Corp
Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary)
Estimated start date (month, day, year)
Building addition of 20,000 sq ft
01/01/2018
Estimated completion date (month, day, year)
12/31/2018
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
100 2,900,000 100
2,900,000
100 2,900,000
SECTION 4 ESTIMATED TOTAL COST AND VALUE
OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST
ASSESSED VALUE
Current values
Plus estimated values of proposed project
1,400,000
Less values of any property being replaced
Net estimate values upon completion of project
1,400,000
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 hereby certify that the re resents ' ns in this statement are true.
Signature of authorize ntativ
Date signed month day, year)
2i1 �r1 t
Printed name of authorize6 representative
Title
Page 1 of 2
Forth SB-1 / Real Property, page 1 - NACTP 1585 - Software only copyright 0 2017 DIS, Inc. Client/Loc 13195.000 R/E 02/18
FOR USE OF BODY
We find that the applicant meets the general standards in the resolution or to be adopted by this body. Said resolution, passed or to be passed
adopted under IC 6-1.1-12.1, provides for the following limitations:
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:
1. Redevelopment or rehabilitation of real estate improvements; ❑ Yes ❑ No
2. Residentially distressed areas ❑ Yes ❑ No
C. The amount of deduction applicable is limited to $
D. Other limitations or conditions (specify)
E. Number of years allowed: ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 (' see below)
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
F. 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.
We have also 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 (signature and title of authorized member of designating body)
Telphone 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.
A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1, 2013, the deductions established in IC
6-1.1-12.1-4-1 remain in effect. The deduction period may not exceed five (5) years. For a Form SB-1/Real Property that is approved after June 30,
2013, the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
(10) years. (See IC 6-1.1-12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SBA/Real Property was approved prior to July 1, 2013, the abatement
schedule approved by the designating body remains in effect. For a Form SBA/Real Property that is approved after June 30, 2013, the designating
body is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1-12.1-17 below.)
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 taxpayers 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-1/RE, page 2 - NACTP 1585 - Software only copyright 0 2017 DIS, Inc. Client/Loc 13195.000 R/E 02/18
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage 8 Benefit Information
Company Name, Address & Contact Person:
Elder Family Partners, LP, 4251 Industries Road, Richmond, IN 47374 contact person Mark Harrington
on behalf of Omen USA, Inc., 1600 Rich Road, Richmond, IN 47374 Contact person: Dror De -Porto
The information requested on this supplement to form S13-1 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
2. Average hourly wage for projected new positions
3. Average hourly health insurance benefit
$ 16.42
$ 16.42
$ 3.76
1. The length of the abatement you are requesting
(A 1-10 yearabatement may be requested forreal estate improvements and manufacturing
equipment.) 10 year abatement
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
2.
3.
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.
Average hourly wage for projected new positions: Use the same definition of employees to be
included as in number one above.
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 hourly rate computed using the annual cost per eligible employee divided by 2080 hours.
C4�_Z) ' Z //;,Z/,// S
(Authorized Signature and Title) (Date)
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 1000/0
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
100/0
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 l I W/o
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 10010/0
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 , by the Common
Council of the City of Richmond, Indiana.
President
P ker
ATIPUST
V
Karen Chasteen, IAMC, MMC
PRESENTED to the Mayor of the City of Richmond, Indiana, this -y day of
2013, at 9:00 a.m.
Jerk
Karen Chasteen, IAMC, MMC
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
40 day of &,v / , 2013, at 9:05 a.m.
Mayor
(Sarah L. Hutton)
ATTES c rGi-`,J
Karen Chasteen, IAMC, MMC