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Home My Public Portal About054-2018 - Abatement - Vandor - EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO.54-2018 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-1. 7. That a deduction schedule was passed by Common Council pursuant to Richmond City Ordinance Number 16-2018 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-l. 7. That a deduction schedule was passed -by Common Council pursuant to Richmond City Ordinance Number 16-2018 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 Vandor Corporation Current Jobs: 84 Jobs Retained: 84 Jobs Created: 5 Estimated New Value: $6,800,000.00 Dated: October 16, 2018 Passed and adopted this day of 2018, by the Common Council of the City of Richmond, Indiana. President (Jamie eman) ATTEST: (Karen Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, this -5/ day of , 2018, aW.00 a.m. City Clerk (Karen Chasteen, IAMC, MMC) APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this /04*Vday of 018 at (Karen IAMC, MMC) M. Mayor �t E—'�=eo•. STATEMENT OF BENEFITS °.,.��` PERSONAL PROPERTY State Form 51764 (R4 / 11-15) �: •. �F,'/ Prescribed by the Department of Local Government Finance INSTRUCTIONS FORM SB-1 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 6-1.1-12.1-5.1. q. 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) Name of taxpayer VQtt�ur C� ��'f►u�. _ Name of contact person 1NI�r� drto� 'ftia _ _ Address of taxpayer (numberan street, city, state, and ZIPcrxie) Telephone number Su —76 �� u2 W ( auk.. d It, Y 73-7 y (�� s') a x4 -Z i 4 Name of designating body Resolution number Is) Location of property 2 f/ W. "A' r 1 l County DLGF taxing district number R Lck-d"' d 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.) — — Manufacturing Equipment � � � '#�j/Z a �� aV�i lI any % ✓'� R & D Equipment / Logist Dist Equipment IT Equipment I -FIN Current number Salaries Number retained Salaries Number additional Salaries �R NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING EQUIPMENT & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED VALUE COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE Current values Plus estimated values of proposed project (o $O3 0*6 _ Less values of any property being replaced �1 _ Net estimated values upon completion of project Estimated solid waste converted (pounds) _ Estimated hazardous waste converted (pounds) Other benefits: hereby certify that the representations in this statement are true. Signature of authorized re s talive Date signed (month, day, year) Printed name of authorizered resentative Title CF-rr, /fie k ih i7FG .. Page 1 of 2 FOR USE • :•b 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 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; ❑ Yes ❑ No ❑ Enhanced Abatement per IC 6-1.1-12.1-18 . 2 . Installation of new research and development equipment; ❑ Yes ❑ N o Check box if an enhanced abatement was approved for one or more of these types. 3 . Installation of new logistical distribution equipment. El Yes ElN o 4 . Installation of new information technology equipment; ❑ rYes ❑ 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 ( ) 7 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 ,Oct-30-07 '11:04am From -CITY OF RICHMOND IN +7659627024 T-489 P-02/O2 F-878 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name,. Address & Contact Person: 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 $_. IV, 2. Average hourly wage for projected new positions $ % 3• f 3. Average hourly health insurance benefit $ 2 - 10 l . The length of the abatement you are requesting V (A 1-1o year ubaremenr may be requested for real estate impruvrmenrs and 17janufacn.ri+9g 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 e the stare(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 fi-om the lease that explains which parry is responsible for paying the property taxes 3. if snaking real estate improvements, please provide a list that includes the following: • brief description of the real estate improverneni (new construction, rehab, expansion, etc.) r size of the proposed real estate improvements costs of the proposed real estare improvements AEFINITIONS 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 par mers 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 hourly rate computed using the annual cost per eligible employee divided by 2080 hours. (Authorized Signature and Title) 1(211411s, (Date) Description of Equipment Injection Molding Presses Auxillary Equipment Crane Injection Molding Molds Cost of Equipment Vendor Useful Life $4,590,000 New Unknown 10 yr $2,000,000 New Unknown 10 yr $65,000 New Unknown 10 yr $150,000 New Unknown 10 yr Total $6,805,000