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Home My Public Portal About016-2019 - Tax Abatement - Grace Sales & Enginnering LLC - IT EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO. 16-2019 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-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-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. Passed and adopted this City of Richmond, Indiana. A 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: INFORMATION TECHNOLOGY EQUIPMENT — 5 YEARS Grace Sales and Engineering, LLC Current Jobs: 3 Jobs Retained: 3 Jobs Created: 10 Estimated New Value: $20.000.00 Dated: November 24, 2018 day of ",2019, by the Common Council of the President PRESENTED to the Mayor of the City of Richmond, Indiana, thisday of( _ h 2019, at 9:00 a.m. (v—�--�--..�.�IAM�CMMV)�' ity Clerk {Karen Chasteen, PROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this day of 2019, aCtffi:935�- f , Mayor avid M. ATTES , {Karen Chasteen, C, MMC) STATEMENT OF BENEFITS PERSONAL PROPERTY ' State Form 51764 (R4 / 11-15) Prescribed by the Department of Local Govemment Finance INSTRUCTIONS FORM SB-9 / PP PRIVACY NOTICE �u Any information concerning the cost .of the ,property and speck salaries paid to individual, employees by the property comer is confidential per IC 1. 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 designeling body BEFORE a person installs the new manufacturing equipment and/or research and development equipment, and/or logistical distribution equipment andlorinformalion 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 qualifyr`ng abatable equipment for which the person desires. to cialm a deduction. 3. To obtain a deduction, a person most file a certified deduction schedule with the person's personal property return on a cediCed deduction schedule (Form 103-ERA) with the fownship.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 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 tiling extension must file the form between January I and the extended due date of that year, 4. Property owners whose Statement of Benefits was approved, must submit Form CF41PP annually to show compliance with the Statement of Benefits. 0C,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 foreach deduction allowed. Fora Form SB-1/PP'9>etls approved prior to Julv 1. 2013 the nhrarw,, - r n r,.r ..__-- -I .. u_ --------•--•-�-.�+�.+.y..ouuyuvuywrrrarrr5rnenecr. (r40-7.1-7Z1-77f • •' • -Nameof.taxpayer Name. ofcorrtactperson Grace Sales & Engineering, LLC Aan Russell Address,of taxpayer (number and sheet city, state, and Z1Pcade) .5626 New Paris Pike Richmond, IN 47374 Telephone number t 765) 4440 Name of designating body - Grace Sales &Engineering, LLC Resolution number (sj Location of,property County 4810 Woodside Drive Richmond, IN 47374 DLGF taxing district number Wayne Description of manufacturing equipment and/or research and development equipment andlor logistical distribution equipment andlor information technology equipment. (Use additional sheets if ESTIMATED START DATE COMPLETION DATE necessary.) Project will consist of two Farrel CP 55 continuous -production processors and Manufacturing Equipment down stream equipment. One Farrel CP12 R&D lab 10/01/2018 12/31/2019 processor and pelletizer. Two bulk conveying systems and two gravimetric blender/feeder units. R 8 D Equipment 04/22/2019 12/31/2019 Retrofitted 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 1 12/31/2019 sin phase of the DmieQU"XDected to cmDlete by 12/gol IT Equipment Current number Salaries Numberretained Salaries Numberedditonel Salaries 3 $113,240 3 $113,240 $381,888 ,o NOTE:,Pursuant to IC6-1.1-12.1-5,1 (d) (2) the MANUFACTURING E UIPMENT R & D EQUIPMENT LOGiSTDiST EQUIPMENT IT EQUIPMENT COST of the roe property rty is confidential. COST ASSESSED VALUE COST ASSESSED COST ASSESSED C057 ASSESSED Cunentvalues 0" 0 VALUE VALUE VALUE 0 Plus estimated values of proposed project 535,000 0 120,000 0 0 12,260 0 0 50,500 Less values of any property being replaced 0 0 01 0. 0 0 0 Net estimated values upon completion of project • 535,000 120.0001 12,000 0 50,500 r . . • •• Estimated solid waste converted (pounds) 650000 Estimated hazardous waste conversed (pounds) Q 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 re` stations in this statement are true. Signal ure orized re 11ve # Date signed (month, day, year) November 24, 2018 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 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 Wine not to exceed g calendar years' (see below). The dale 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.t-18 2 . Installation of new research and development equipment; ❑ Yes ❑ No Check box ifan enhanced abatement was 3. Installation of new logistical distribution equipment, ❑ Yes []No approved for one or mote of these types. 4. Installation of newinformation technology equipment; ❑ Yes []No C-The amount of deduction applicable to new manufacturing equipment is limited to S $ 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 . (S $ cost with an assessed value of One or both lines may 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, !f 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,) a 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 ❑ Year 6 ❑Year 7 Number of years approved: ❑ 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 suipcient to justify the deduction described above. Approved by: (s gnaWrr and title of authorihed member oldasipnating l ody) Telephone number Date signed mo g f Printed name of authorized member of designating body Name of designating body hr 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 toa 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 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-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 information requested on this form. It is subject to review as a part of our monitoring process. 1. 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 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 - 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 fall time, non-supervismy employees. Do not include the following, groups: A. part time employees; B. management, supervisors, foremen, or any other supervisory personnel; C. owners, stockholders, or partners if they olvn 2% or tnore 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 krl.umorrzea.5rgnaturc and Title) (Date) Form SB-IA 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 ne-*v 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 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 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 $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-IA 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.) Used for material handlinZ and equipment setup; Actual Photo 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.) 0.) OMV 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. c.) 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 OW sheet line =,: Actual Photo b.) Die was purchased from Arlington Equipment in Elk Grove Village, IL,for $1,750.00 "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: 1.) Processing Extruder Screw for Farrel CP 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.) Itric blender Stock image b.) Under negotiation with Advance Blending Solutions of Wallace, ML (2) units required at approximately $50,000 Each. Units are new. Longevity based on care and maintenance. Estimated 10-20 years 3.) Gravimetric.Bl'ending System a.) Used to.blend.various material recipes and feed the Farrel compact mixers. ick Phntn c.) Under.negotiation with Advance Blending Solutions, of Wallace, M1. (2) units required at:approximately$'7$,000 Each. Units are new. Longevity based on care and maintenance. Estimated.10-211 years " Grace Sales and Engineering, LLC 5626 New Paris Pike- Office 4810 Woodside Drive — Manufacturing Alan Russell-765-967-4440 Equipment and Installation (2) Farrel CP55 Compact Mixer/ Compounders $106,975.00 (1) Farrel CP12 Laboratory Mixer/Compounder $28,417.00 (1) Skiver $35,000.00 (1) OMV 31.5 Extrusion Sheet Line $29750.00 (1) CP55 Parts Schematic $980.00 (1) CP12 Parts Schematic $980.00 (1) OMV 27.5 Inch Sheet Die $1750.00 (1) OMV 27.5 Inch Sheet Die $2000.00 (1) 3.5 inch Screen Changer $2300.00 (1) Processing Extruder Screw for Farrel CP $4912.00 (1) ABS Blenders and Loading Equipment $240,000.00 (1) Equipment Mounting Pads $1500.00 (1) Installation Expenses to Date $34,900.00 (1) Estimated Additional Installation Expenses $75,000.00 (1) Additional Equipment - Grinders $50,000.00 Logistics (1) 2007 TCM 5000 Pound Lift Fork Truck IT (1) Misc IT Equipment and Software Total $614,446.00 $12,200.00 $20,000.00 Grand Total $646,000.00