HomeMy Public PortalAbout014-2019 - Tax Abatement - Grace Sales & Engineering LLC - R & D Equipment - STRICKENCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO. 14-2019
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 prior 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-I.
7. That a prior 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:
RESEARCH & DEVELOPMENT EQUIPMENT — 5 YEARS
Grace Sales and Engineering, LLC
Current Jobs: 3
Jobs Retained: 3
Jobs Created: 10
Estimated New Value: $120,000.00
Dated: November 24, 2018
Passed and adopted this day of 2019, by the Common Council of the
City of Richmond, Indiana.
President
(Gary Turner)
ATTEST: , City Clerk
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _ day of 2019,
at 9:00 a.m.
, City Clerk
(Karen Chasteen, IAMC, MMC)
APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this _ day of
7 2019, at 9:05 a.m.
Mayor
(David M. Snow)
ATTEST: , City Clerk
(Karen Chasteen, IAMC, MMC)
STATEMENT OF BENEFITS
Q PERSONAL PROPERTY
State Form 51764 (R4 / 11-15)
Prescribed by the Departmentof Local Government Finance
INSrRUCTIOAls
FORM S8-1 / PP
PRIVACY NOTICE
Any information concerning the cost
,of
the y and specific salaries paid
to indiJlduaeI employees by the property
owner Is conitdential per IC a-1.1-12.1-5.1.
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 making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be
submitted to the designating body BEIrORE a person installs the new manufacturing equipment and/or research and development equipment and/or
logistical dlstribu6on,equipment andlorinformation technology equipment for which the person wishes to claim a deduction.
2. The statement of beneftsform must be submitted to the designating body and the area designated an economic revitaii2ation area before the installation
of quaW.'ng abatable equipment for which the person desires to claim a deduction.
3. To obtain a .deducBon; a person must file a cerfifred deduction schedule with the person's personal property return on a certified deduction schedule
(Form t6wns i1hip. ) with the township.assessor of the to
for'the townsnship, where the property is situated or with the county assessor if there is no township assessor
The 103-ERA must be filed between January 1 and May 15 of the assessment year in which new manufacturing equipment
andlor research and development equipment and/or logistical distribution equipment and/or frifoimaron technology equipment is installed and fully
functional, unless a Kling extension has been obtained. A person who obtains a riling extension must file the form between January i and the extended
due date ofthat year.
4. Property owners whose Statement of Benefits was approved, must submit Form CF1/PP annually to show compliance, with the Statement of Benefits.
(IC 6-1.1-1Z
5. For a.Form SS-1)PP Ghat is approved alter June 30, 2013, the designating body Is required to establish an, abatement schedule for each deduction allowed.
For a Font SB-1/PP Met Is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. OC6-1.1-12.1-171
•• •
Name of- faxpayer
Name.ofcanWdperson
Grace Sales & Engineering, LLC
Aan Russell
Address .offaxpayerOjmberenrlskeaL c'l3 state, andZ/PcoCle)
5626 New Paris Pike Richmond, IN 47374 Telephone number
( 765 ) 967-4440
Name.of designating body
Grace Sales & Engineering, LLC Resolution number (s)
Locat'nm otproperty
County
4810 Woodside Drive Richmond, IN 47374
DLGF taxtng:distrid number
Wayne
Descripfion of manufacturing'equipment andlor research end development equipment
andlor Loggistical distribution equipment andlot infomraGon technology equipment.
(tJse-additional sheets
ESTIMATED
START DATE
COMPLETION DATE
-if necessary.)
Projectwillconsist of two Farrel CP 55 continuous production processors and Manufacturing Equipment
doom stream equipment One Farrel CP12 R&D lab processor and peiletizer.
10/01/2018
12/31/2019
04/22/2019
12/31/2019
Two bulk conveying systems and two gravirnetric blende€/feederunits. RA D Equipment
Retrofitted with PLC andaouch screen controls integrated t0 Central processor Logist Dist Equipment
for data collection and analysis. One skiver and foam reclaim system. Forklift
04/22/2019
12/31/2019
10/01/2018
12/31/2019
IT Equipment
Current number Salaries
3 $113,240
Numberretairied Salaries Number edditiunet Salaries
3 $113,240 +0 $381,888
NOTE: , Pursuant tolC'8-1.1-12.1-5.1(d)(2),the
MANUFACTURING
E tJIPME T
R&'p'EQUIPMENT
LOGI$TDIST
IT9QUiPMENT
COST of the property
p petty is confidential:
EQUIPMENT
COST ASSESSED
COST
E USSEED
SVALUE
COST
ASSESSED
VALUE
COST
ASSESSED
Current values
0
0'
0
VALUE
VALUE
0
p
Plus estimated values of proposed project
535,000
120,000
0.
0 0
12,200
50,500
Less values of any property being replaced
0
0
0
0
0
Net estimated values upon completion of project
535;000
120,OOp
. 0 0
12,000`
0,
50;500
Estimated solid waste converted (pounds) 650000 Estimated -hazardous waste converted (pounds) 0
Other benefits
The process will reclaim approximately 650,000 pounds annually of foam laminate and processed rubber from the solid waste stream and
return it into industrial and commercial rubber sheet products and will continue for.the foreseeable future.
1 hereby,ce[tity that the re ` ' `ntations in this statemenf are.true.
Signature orized re Uve bate signed (month, day, year)
November 24, 20,18,
Printed name of authorized representative
Title
Alan Russell
Owner
Page 1 of 2
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets thegeneral 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 ears
is Y (see below). The date this designation expires
. 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 ifan enhanced abatement was
3. installation of new logistical distribution equipment. D Yes ❑ No approved for one or more of these types.
4. Installation of new -information technology equipment; ❑ Yes []No
C. The amount of deduction applicable to new manufacturingequipment is limited to S
(One or both lines may be filled out to establish a limit if desired.)
O. The amount of deduction applicable to new research and development equipment is limited to $
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 $
g 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 maybe filled out to establish a limit, if desired.)
G Other liinitations orconditions (specify)
N. 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:
❑ Year6 ❑ Yoar7
❑ Year 8 ❑ Year 9 ❑ Year 10 (Enter one to twenty (1-20) years; may not
exceed twenty (20) years.)
I. Fora 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 fatality of benefits is sufficient to justify the deduction described above.
Approved by. (signature andtilleotaulhorizedMember ofdesignatingbody) Tele hone number
p Dale signed (month, day,:year)
Printed name of authorized member of deaignetin9 Wx oY Name of Aednnminn hn t.,
name of attester
cost with an assessed value of
* 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 dial is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.6
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 numberof new full tame 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 unlit 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: Grace Sales and Engineering, LLC
5626 New Paris Pike- Office
4810 Woodside Drive — Manufacturing
Alan Russell-765-967-4440
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.
I . Average hourly wage. for existing employees $18.15
2. Average hourly wage for projected new positions $'18 31
3. Average hourly health insurance benefit
Not at this time
I . The length of the abatement you are requesting 10 Years
(A I-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 states) 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 - No 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. parl'time employees,-
B. management, supervisors, foremen, or any other supervisory personnel,'
C. owners, stockholders, or partners if they awn 2% or more of the business, and their
family members.
2. Average hourly wage for projected neiv 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 rising the annual cost per eligible employee divided by 2080 hours.
Alan Russell owner
11 /24/2018
kn.uuiorizea algnature and Title) (Date)
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Grace Sales & Engineering, LLC Current Equipment List
1.) (2) Farrel CP55 Compact Mixer/ Compounders
2'.) (1) Farrel CP,12 Laboratory Mixer/Compounder
a.) These machines are des ' igned to compound thermoplastics into pellets that can
then be used in various extrusion and injection molding processes. They are
manufactured by Farrel Poinini. in the U.S.. and U.K. Farrel just opened a new
state of the Art facility in Ansonia, CT where Farrel has had it's U.S. home for
over one hundred years.
b.) The life expectancy of thesemachines'is only limited by care and maintenance.
Units were first developed in . the early 1960's with many of the earlier machines
still. producing today. There are several companies that specialize in the
rebuilding, reconditioning, and updating of these, machines.
C.)
Stock Photo
d-) These three machines were manufactured in the UX. and delivered to Russia, in
early 1990. They were never used: Grace Sales & Engineering`
imported the
machines from Volgograd Russia at a. total cost of S135,000 U.S: The machines
Were purchased "as is." and without controls, drives, and some basic mechanical
items missing.
3.) Skiver
a.) A skiver is used to. slice thin layers from a material. Originally the machines
were. used to split leather hides into thinner easier to use and more comfortable
product. Grace Sales and Engineering will use the machine to slice foam from
rubber sheet We anticipate keeping around 650,000 pounds of material out of
the solid waste stream annually.
Actual Photo
b.) The unit was purchased new from Pontotoc Machine Works in Pontotoc, MS.
The cost was $35,000. Again, the life expectancy is limited only by care and
maintenance. The components, other than the frame and sheet metal parts are
purchased. items.
Form SB-lA
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
4.) Cumberland 14261 Granulator
a.) Machine is used to make "regrind" or granulate larger material into a smaller
size suitable for an extrusion or injection molding process.
b.) The grinder was purchased used from Envirotech Extrusion, Inc for $7500 here
in Richmond, IN.
c.) The unit is completely serviceable with units having in excess of 50 years of
service.
5.) -2007 TCM 5000 Pound'Lift Fork Truck
a.)
setup'.
W
b.) Unit was purchased used from B1ue.Diamond Equipment in Z011inger, PA,for
$12,200 with just over 2'000 hours. Average life expectancy with proper
maintenance is around 15,000 hours. (4 to $ `hours a day x 5 x 50 = 1000 to 2000
hours/year = somewhere between 6.5 and 15 years of service life left.)
G.) OMV 31.5 Extrusion Sheet Line
a.) Machineis.used to make sheet in line from the compounded material from the
Actual Phntn
b) The machine was purchased used from Federal Equipment Company in
Cleveland, OH for $29,750.
e.) The unit is also completely serviceable with units having over 40 years of
service. Machine was purchased as a basic "shell' to be retrofitted with
controls, drives; and operating mechanical systems.
Form SB-lA
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
7.) OMV 27.5 Inch Sheet Die
a.) Used to make a uniform sheet thickness for above OMV sheet line
b.)
Actual Photo
Die was purchased from Arlington Equipment in Elk Grove Village, IL for
$1750.0,0 "as is" to be, refurbished by'Grace Sales & Engineering.
Again, indefinite life expectancy.
8.) 3.5 inch Screen Changer
a.) Used to filter contaminates out of material stream during compounding process.
Stock Photo
b.) Unit was purchase from Perry Videx Equipment in Iiainesport, NJ for $2300.
Indefinite. life expectancy.
Equipment under negotiation:
1.) Processing Extruder Screw for Farrel CP
a.
to extruder sheet die
:k Photo
b. Under negotiation with Jim Franklin and United Feed Screws of Akron Ohio (2)
required at approximately $5000 each. Rebuild every 5 years.
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
2.) Loading System.
a.)
uric blender
Stock image
b.) Under negotiation with Advance Blending Solutions of Wallace, MI. (2) units
required at approximately $50,006 Each. Units are new. Longevity based on
care and maintenance. Estimated 10-20 years,
3.) Gravimetric.Blending System
a.) Used to blend various material recipes and feed the Farrel compact mixers.
hock Phom
c.), Under negotiation with -Advance` Blending Solutions, of Wallace, ML (2) units
required at approximately $75,000 Each. Units are new.. Longevity Based on
care and maintenance. Estimated. 10-20-years