HomeMy Public PortalAbout017-2018 - Special - Amending Ordinance 76-2011 - Alternative Abatement ScheduleCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO. 17-2018
A SPECIAL ORDINANCE AMENDING THE ALTERNATIVE ABATEMENT
DEDUCTION SCHEDULE 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 (hereinafter "Common Council") 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, 65-2013,
and 66-2013); 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, Abatement deduction schedules for real property and personal property are set
forth and outlined by Indiana Law and the Common Council, as the designating
body, may approve the number of years any given deduction applicant may take
an approved deduction; and
WHEREAS, As set forth in the above -referenced Resolutions and Ordinances, Common
Council, as the designating body, has previously determined the applicable time
period in each Special Ordinance approving a specific Statement of Benefits; and
WHEREAS, Effective July 1, 2011, Indiana Code (IC) 6-1.1-12.1-1 et seq. provided a
designating body flexibility to approve an alternative abatement deduction
Page 1 of 3
r
schedule on either real estate and/or personal property to a business that is
established in, or relocating to an economic revitalization area and receives a
deduction and Common Council, in accordance with said Indiana Code, approved
and passed Ordinance No. 76-2011 on January 17, 2012; and
WHEREAS, Common Council desires to update the guidelines in accordance with IC 6-1.1-
12.1-18 that permits an alternative abatement deduction schedule for businesses
expanding or relocating in economic revitalization areas in Richmond.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Richmond, Indiana, that prior Ordinance No. 76-2011 is amended and the Alternative Abatement
Deduction Schedule Guidelines are updated and set forth as follows:
1. Richmond Common Council may utilize an alternative abatement deduction schedule
of a 75% deduction for 10 years if all of the following requirements are met:
a. $5,000,000 minimum investment, and
b. A minimum of thirty (30) new full-time employees are hired and maintained, and
c. Qualifying wages paid to new employees as described in SB-IA must pay double the
state minimum wage, and
d. Major medical health insurance is provided to all full-time employees, and
e. All improvements and new hires must be completed within three years of the date of
the signed ordinance approving the Statement of Benefits for a business, and
f. Failure to meet any of the requirements outlined in a. through e. above shall require
that the alternative abatement deduction schedule revert to the standard ten (10) year
abatement deduction schedule outlined in IC 6-1.1-12.1-4d(10) for real estate
improvements and IC 6-1.1-12.1-4.5d(10) for personal property beginning with the
number of years remaining for the abatement (for example, if a personal property
abatement is in its 6`h year, the final four years' deductions would be 40%, 30%, 20%,
and 10%, respectively).
2. Additionally, if the minimum conditions outlined in # 1 b., # 1 c., and # 1 d. above are
met, Richmond Common Council may increase the alternative abatement deduction described
above by 5% if the business invests a minimum of $10,000,000 or by ten (10%) percent if the
business invests a minimum of $15,000,000.
3. If the minimum conditions outlined in # 1 a., # 1 c., and # 1 d. are met, the Richmond
Common Council may increase the alternative abatement deduction described above by 5% if the
business adds a minimum of fifty (50) new employees, or by ten (10%) percent if the business
adds a minimum of one hundred (100) new employees
4. If the minimum conditions outlined in # 1 a., # 1 b., # 1 c., and # 1 d. above are met, the
Richmond Common Council may increase the alternative abatement deduction described above
by 5% if the business pays at least two and one-half (2.5) times the state minimum wage for new
employees hired.
Page 2 of 3
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. Richmond Common Council may decrease the alternative abatement deduction by 5%
for every $250,000 of additional taxpayer assistance (any government level) provided to the
business.
7. 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.
This ordin4nce shall be in full force and take effect upon its passage. Passed and adopted
this day oez,,e 9-Z-'2018, by the Common Council of the City of Richmond,
Indiana.
President
(J bpeman)
ATTES
(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)
APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this e day of
L , 2018, at Z. ZJ p .µ
ATTEST
Mayor
(David M.
(Karen Chasteen, IAMC, MMC)
Page 3 of 3