HomeMy Public PortalAbout064-2018 - Abatement - Ahaus Tool - EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
/ ORDINANCE NO.64-2018
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-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, 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 — 5 YEARS
Ahaus Tool & Engineering, Inc.
Current Jobs: 96
Jobs Retained: 96
Jobs Created: 1
Estimated New Value: $170,000.00
Dated: November 2, 2018
Passed and adopted this,;?--
day the Common Council of the
City of Richmond, Indiana.
President
Gary urner
ATTE • ,
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _day of ,
at 9:00 a.m.
Chasteen, IAMC, MMC)
APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this C9 ( day of
AJ M4, 2018, art0=m— 11, Z �7
Mayor
(Karen Chasteen, IAMC, MMC)
olt, -
STATEMENT OF BENEFITS
PERSONAL PROPERTY
tt State Form 51764 (R3 / 12-13) _
'+ Prescribed by the Department of Local Government Finan
INSTRUCTIONS
FORM S13-1 I 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
y. 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 maldng 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 andlorinformation 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 abetab/e 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 persons 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 March 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 riling extension has been obtained. A person who obtains a filing extension must file the fonn between March 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.
(1C 6-1.1-12.1-5.6)
5. Fora Form SS-1/PP that Is approved after June 30, 2013, the designating body Is required to establish an abatement schedule for each deduction allowed.
Fora Form SB-11FP that is approved piiorto July f, 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
Ahaus Tool & Engineering, Inc.
Donna J. Utz; Controller
Address of taxpayer (number and street, city, stab, and ZlPcode)
Telephone number
200 Industrial Parkwa PO Box Richmond IN 47375
(765 ) 962-3571
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (a)
Common Councel of the City of Richmond Indiana
10-1984 11-1991
Location or property
County
DLGF taxing district number
200 Industrial Parkway
I Wayne
Richmond Corporation
Description of manufacturing equipment and/or research and development equipment
and/or Logistical distribution equipment and/or information technology equipment
(Use additional sheets if necessary.)
ESTIMATED
START DATE
COMPLETION DATE
Manufacturing Equipment
10/26/2018
11/30 2018
Mitsubishi MV2400-ST Wire EDM Machine
R & D Equipment
Logist Dist Equipment
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEESAND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number additional Salaries
96 7,215,000 7 215 000 1 1 IL 68,000
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-i.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT
EQUIPMENT E UIP ENT
COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED
VALUE VALUE MkLUE XALUE
Current values
6,822,063
Plus estimated values of proposed project
170,000
Less values of any property being replaced
Net estimated values upon completion of project
6,992,063
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 representations In this statement are true.
Signature ulhorized rep tiv
Dale signed (month, day, year)
November 2, 2018
Printed name of authorized i sentative
Title
Donna J. Utz
Controller
Page i of 2
FOR USE OF DESIGNATING BODY'
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 underIG 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
B. The type of deduction that is allowed in the designated area is limited to:
1 . Installation of new manufacturing equipment; []Yes ❑ N o
2. Installation of new research and development equipment; ❑ Yes []No
3 . Installation of new logistical distribution equipment. []yes ❑ N o
4. Installation of new information technology equipment; []Yes ❑ N o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of
$
D. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of
$
E. The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of
$
F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of
$
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 (see below
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
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 1C 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 n(
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: Ahaus LLC
200 Industrial Parkway
Donna J. Utz; Controller
The information requested on this supplement to form S13-1 must be completed and submitted
along with your S13-1 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 $ 24.39
2. Average hourly wage for projected new positions $ 29.00
3. Average hourly health insurance benefit $ 4.98
1. The length of the abatement you are requesting 10 years
(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;
* 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 hourly rate computed using the annual cost per eligible employee divided by 2080 hours.
(Authorized Signatur
Donna J. Ut ;
roller
(Date)
November 2, 2016
Ms. Beth Fields
City of Richmond
Department of Metropolitan Development
5o North Fifth Street
Richmond, Indiana 47374
Dear Beth:
Attached is our application and fee for a tax abatement on new equipment that
will help us enhance our machining capabilities.
❖ Mitsubishi MV2400-ST Wire EDM Machine
➢ Projected Useful Life — Ten Years
➢ It is new, and manufactured in Japan
➢ It will be coming from Elk Grove Village, Illinois
➢ Estimated cost: $170,000
Please feel free to contact Kevin or me if you should have any questions.
Thank you again for your help in this matter.
Sincerely,
Donna J. Utz
Controller
MW
Ahaus
200 Industrial Parkway
P.O. Box 280
Richmond, IN 47375-0280
765.962.3571 Phone sales@ahaus.com
800.962.3571 Toll Free www.ahaus.com
765.962.3426 Fax
i'111&22LLill 1:042202196i: 007 25984000
MAUS TOOL & ENGINEERING, INC
City of Richmond, Indiana
11/6/2018 _ Check Total: 100.00
of �L „i�v iC�qQn 1 �f�
IMS ME
100.00 0.00
112211