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HomeMy Public PortalAbout015-2019 - Tax Abatement - Grace Sales ...ginnering LLC - Logistic Equipment - STRICKENCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO. 15-2019 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: I. 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-I 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, 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 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: LOGISTIC DISTRIBUTION EQUIPMENT — 5 YEARS Grace Sales and Engineering, LLC Current Jobs: 3 Jobs Retained: 3 Jobs Created: 10 Estimated New Value: $12,200.00 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, MMQ PRESENTED to the Mayor of the City of Richmond, Indiana, this _ day of 2019, at 9:00 a.m. City Clerk (Karen Chasteen, IAMC, MMQ APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this _ day of 9 2019, at 9:05 a.m. Mayor (David M. Snow) ATTEST: City Clerk (Karen Chasteen, IAMC, MMQ STATEMENT OF BENEFITS PERSONAL PROPERTY a ` Stale Form 51764 (R4 / 11.15) °6u Prescribed by the Department of Local Government Finance or INSTRUCTIONS FORM 88-1 / PP PRIVACY NOTICE .Any information concerning the cost .otthe. property and specific salaries paid to Individual employees by the property owner Is confidential Pei IC if. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the desfgnating 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 andlorinfomnafion technology equipment for which the person wishes to claim a deduction. 2. fie statement of benefrts'form must be submitted to the designating body and the area designated an economic revitalization area before the installation of qualdyrng 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 them is no township assessor for the township. The 103-ERA must be filed between January 1 end May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment andlor 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 oflhat year. 4. Property owners whose Statement of Benefits was approvad, must submit Farm CFI/PP annually to show compliance with the Statement of Benefits. (iCB 1.1-12. f-5.6) 5. Fora Form SS-1lPP that is approved after June 30, 2013, the designating body is required to establish an abatementschedule foreach deduction allowed. Fora Form SB-11PP that Is approved prior to July 1, 2013, the abatement schedule approve by the designating body remains in effect. !lC &1_,1-72 a_1 d • • Name of taxpayer - Name of contact person Grace Sales & Engineering, LLC Name AanRussell Address of taxpayer (number and sheet, city, state, and ZIPcode) Telephone number 5626 New Paris Pike Richmond, IN 47374 t 765 ) 967-4440 Name of designating body Grace Sales & Engineering, LLC Resolution number (s) of property County oodside Drive Richmond, IN 47374 � OLGF tarring district number Wayne tpn, Of manufacturing'equipm©ntondlor research and develnprnenl equipment9gistigl distributiori equipment andlorinformation technology equipment.ESTIMATED dffionol sheets DATE COMPLETION DATE -if necessary.)START will carisist of twD Farrel CP 55 continuous production processors and Manufacturing Equipment N"k9 tream equipment One Farrel CP12 R&D lab processor and peilekizer.lk 10/01/201S 12/31/2019 04/22J2019 12/31/2019 conveying systems and two gravimetric blender/feeder units. R S D Equipment tted with PLC and'touch screen controls integrated to 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 -main chase of the Droier-t ig-miacted to IT Equipment • • • • r • • • ` • ` • • • Current number Salaries Number retained Salaries Numberadditiori t Salaries 3 $113,240 3 $113,240 $381,888 +o • • • • • -••• • • -• NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING EQUIPMENT }� & D EQUIPMENT LOGiSTDIST IT EQUIPMENT COST of the property is confidential. EQUIPMENT ASSESSED COST ASV COST A VALUUEED ASSESSED L ECD COST VALUEVALUE COST Current values 0 0 0 0 Plus estimated values of proposed project 535,000 0 120,000 0. 0 12,200 0 50,500 Less values of any property being replaced 0 0 0 0 0 0 0 Not estimated values upon completion of project onm• MIWIII 535,000 120,000 12,000 0 50,500 141 qLgolaymil• r • • • 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. I hereby certify that the reoreigiintatirinq in fhis statement are true. Signoiuro or zed re Irve (month, day, year)ovember �oatesign�ed 24, 2018 Printed name of authorized represerim rvo Titlo 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 the general standards adopted in the resolution previously approved by This body. Said resolution, gassed under IC 6-1.1-t2.1-2:5, provides for the follovng limitations as authorized under IC 6-1.1-12.1-2. A, The designated area has been limited 16 a period or time at to exceed n is calendar -years ` (see below). The dale this designation expires NOTE: This questionaddresses whether the resolution contains an expiration date for the designated area. S. 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; ❑ Enhanced Abatement per IC abatement wa 8 ❑ Yes ❑ N o Check box it an enhanced abatement was 3. Installation of new logistical distribution equipment. ❑ Yes ❑ N o approved for one ormore,ofthese types. 4. installation of new information technology equipment El Yes No C. The'amounl of deduction applicable to new manufacturing equipment is limited to 5 $ cost with an assessed value of (One ar both lines may be filled out to establish a limit irdesired) D. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of (One or both ffnes.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 orboth lines maybe rifted out to establish a limit, irdesired.) F. The amount of deduction applicable to new information technology equipment is limited to S g cast with an assessed value of (One or both lines maybe filled out to establish a limit, if desired.) Cz Other limitations or conditions (speciryj N. The deduction for new rrianufacluring,.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 ❑ Year ❑ Year 8 ❑ Year 9 ❑ Year 10 (Enter One to twenty (1-20) years; may not exceed tvrenty (20), years.) I. Fora Statement of Benefits approved after June 30, 2013, did this designating body, adopt an abatement schedule per IC 84.1-12.1-17? ❑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. proveiiby:(signatureandthlaorauthonzedimambarofdesgnalingtody) Tele hone number P Pala signed (monfh, day, year} and Title of designating body name " if the designating body limits the time petigd 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 deductionto,a number of years that is less than the number of years designated under IC 6-1.1-12AA7. IC 6-1.1-12.1-17 Abatemont 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 or4.5 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 foreach 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,tenns of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 Form S13-IA 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-I must be completed and submitted along with your SB- I 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 inf6rmation requested on this form. It is subject to review as apart of our monitoring process, 1. Average hourly wage for existing.employeos $18.15 2. Average hourly wage for projected new positions $18.31 3. Average hourly health insurancebenefit Not at this time 1. The length of the abatement you are requesting 10 Years (A 1-10year abatement may be requested for real estate improvements and manufacturing equipment) 2. If purchasing equipment, please attach a list that includes the following: 0 brief description of each piece of equipment being purchased 0; the projecteduseftil life of each piece of equipment • the state(s) in which the equipment is being brought into Indiana from if purchasing used equipment • the cos ' t - of each piece -of equipment • state if the machinery is being purchased. or leased • if the machinery is being leased, provide in -formation from the lease that explains Which party isresponsible 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 Teal estate improvements - No Real Estate Improvements DEFINITIONS 1. Average hourly wage. for existing emplayees:foryour most recent pay period please provide the average base wage per hour for all currentfidl time, non-supervismy employees. Do- not include the following groups: A. part time employees,- B. management, supervisors, foremen, or any othersupervis6typersonnel; C. owners, stockholders, or partners, ifthey own 2% or more of the business, and their family members. 2. Average hourly ivage for projected new positions: Use the same definition of employees to be included as in number one above. 3. Average hourly health insurance benefit: Pleaseprovide the current company paid health insurance benefits provided to hourly employees (as de/Ined above) and family members. please present inthe form of an hourly rate computed usingthe annual cost per eligible employee divided by 2080 hours. Alan Russell Owner 11/24/2018 (Authorized Signature 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. CP12 Laboratory Mixer/Compounder a.) These machines are designed to compound thermoplastics. into pellets that can then be used. in various extrusion and injection molding processes. They are manufactured by Farrel Pomini.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 these machines is only limited by care and maintenance. Units were first developed in the.early 196.0'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 U.K. 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 $135,000. 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 535,000. 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-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information 4:) Cumberland 1426I 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.) ent setup. Phntn b.) Unit was purchased used from Blue Diamond Equipment in Zullinger, PA for $12,200 with just over 2000 hours. Average life expectancy with proper maintenance is around 15,000 hours. (4 to 8 hours a day x 5 x 50 = 1000 to 2000 hours/year = somewhere between 6.5 and 15 years of service life left.) 6.) OW, 31.5 Extrusion Sheet Line a.) Machine is used to make sheet in line from the compounded material from the Actual Photo b.) The machine was purchased used from Federal Equipment Company in Cleveland; OH for $29,750. 0 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 $B-1A 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 sWet line b.) Actual Photo Die was purchased from Arlington Equipment in Elk Grove Village, IL for $1750.00 "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 Hainesport, NJ for $2300. Indefinite life expectancy. Equipment under negotiation: I. Processing Extruder Screw for Farrel CP A. erial to extruder sheet die Stock 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.) rT_ _ _, ._ :tric blender Stock image b.) Under negotiation with Advance Blending Solutions of Wallace, M. (2) units required at approximately $50,000 Each. Units are new. Longevity based on care and maintenance. Estimated 10-20 years 3.) Gravimetrie Blending System a.) Used to blend various material recipes and feed the Farrel compact mixers. MOMIMMIM Stock Photo c.), Under negotiation with Advance Blending Solutions, of Wallace, MI. (2) units required at approximately $75,000 Each. Units -are new. Longevity based on care and maintenance. Estimated.10-20 years