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HomeMy Public PortalAbout025-2019 - Tax Abatement - IMPA - Commerce Road - EquipmentCOMMON COUNCIL OF THE CITY OF RICIIMOND, INDIANA ORDINANCE NO.25-2019 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); an 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 lave 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, ur 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 prior deduction schedule was passed by Common Council pursuant to Richmond City Amended Ordinance Number 5 -2019 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 males 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. l 7. That a prior deduction schedule was passed by Common Council pursuant to Richmond City Amended Ordinance Number 5-2019 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 — S YEARS Indiana Municipal Power Agency Current Jobs: 2 Jobs Retained: 2 Jobs Created: NIA Estimated New Value: $10,600,000.00 Dated: April 12, 2019 Passed and adopted this ; day o 2019, by the Common Council of the City of Richmond, Indiana. President 4ary rner) ATTEST- Karen Chasteen, IAMC, MMC} PRESENTED to the Mayor of the City of Richmond, Indiana, this day ofQ20191 at 9:00 a.m. City Clerk (Karen Chasteen, IAMC, MMC) APPROVED b me, David M. Snow, Mayor of the City of Richmond, Indiana, this day of y y tl4C , 2019, at • -Z,,' 15-VTv-\ Mayor .Snow ATTEST: k (Karen Chasteen, IAMC, MMC) STATEMENT OF BENEFITS PRIVACY NOTICE FORM UTILITY DISTRIBUTABLE PROPERTY An information concerning the cost =* State Form 52446 (R3111-15) of the property and specs is salaries paid SB " I U❑ to indlAdual employees by the property Prescribed by the Department of Local Government Finance owner is confidential per It✓ INSTRUCTIONS: 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 a submitted to the designating body BEFORE a person installs the new manufacturing equipment andlor research and development equipment, andlor logistical distribution equipment andlor infonnation 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, Form UD-FRA must be filed with the county assessor. Form UD-ERA must be filed between January I and May 15 of the assessment year in which new manufacturing equipment and1or research and development equipment andlor logistical distribution equipment andlorinformation technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a riling extension must file the farm 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/UD annually to show compliance with the Statement of Benefits. (1C 6-1.1- 12.1-5.6) 5 Fora Form S13-11UD that is approved after Jane 30., 2013, the designating body is required to e.sMblish an abatement schedule for each deduction allowed_ Fora Form SB-?,ltJD 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) TAXPAYER.I.NFORMATION Name of taxpayer Name of contact person Indiana Municipal Power Agency Emily Williams Address of taxpayer {number and streets city, state and 21P code) Title of contact person 11610 N. College Avenue, Carmel, IN 46032 Project Manager Telephone number Fax number Telephone number E-mail address of contact person 317 } 573--9955 ( 317 ) 575-3372 317 } 428--6714 emilyw@impa.com SECTION 2 w ' * r OJEC PT Name of designating body Resolution number Richmond Common Council Location of property County Taxtng district Commerce Road, East of Gravel Pit Drive and Vilest of 1-70 Wayne 030 Description of manufacturing equipment and/or research and development equipment ESTIMATED and/orlogis#ical distribution equipment and/or infonmiion technology equipment Start Date Completion Date (Use ada flonal sheets if necessary.) Manufacturing Equipment Q2 2019 Q 1 2020 Electric generating facility consisting of solar photovoltaic panels, inverters and transformers, sing[e axis tmeking system, posts, wiring, circuit breakers, relays and Research & Development Equipment related equipment and faei#ities. Logistical Distribution Equipment Information Technology Equipment Currentnumber Salaries Number retained Salaries Number additional Salaries 2 $19--38/hr 2 N1A 10. N/A • i +L COST AND,YALUE^ Manufacturing w Research & Development Logistical Distribution Information Technology NOTE: Pursuant to 1C 6-1.1-12.1-5.1(d)(2) the Equipment Equipment Equipment Equipment COST of the property is confidential. Assessed Cost Cost Assessed Cyst Assessed Cost Assessed Value Value Value Value Current values $0 $0 Plus estimated values of proposed project $10,600,000 S2,716,847.26 Less values of any property being replaced Net estimated values upon completion of project Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: o r - SECTION TAXPAYER TIFICATIO 1 hereby certify that the repregMt.9tions in this statement are true. Sig u of autho ed rep s ntative Tile Date signed (month, day, year) s iMPA Executive Vine President & COO 4/12/2019 E' m a dress Telephone number Fax number jalvey@impa.com 3'17 ) 573--9955 t 317 ) 575-3372 1 Page 1 of 2 FOR 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 6-1.1-12.1-2.6, 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 1C 2. Installation of new research and development equipment; ❑ Yes ❑ No Check box it an enhanced abatement was 3. Installation of new logistical distribution equipment; ❑ Yes E] N o approved for one or mare of these types. 4. Installation of new information technology equipment; ❑ Yes ❑ 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 $ . (arse or both lines may be filled out to establish a limit, if desired.) t . 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 tilled 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: L7 Year 1 Q Year 2 Q Year 3 Q Year 4 © Year 5 ❑ Enhanced Abatement per IC 6-1.1-12.1-18 Number of years approved: ❑ Year 6 Q Year 7 D Year 8 Q Year 9 ❑ Year 16 (Enter one to twenty (1-20) gears, may not exceed twenty (20) years.) 1. 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: (signsivre and Utle of authorized member ofdesignefing 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 lime 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 6-1.1-1Z 147 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 subsectlon applies to a statement of benefits approved after June 30, 2013. A designating body shalt establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduc#ion 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: Indiana Municipal Power Agency 11610 N. College Avenue, Carmel, IN 46032 Emily Williams, project Manager, emilyw@impa.com 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 2. Average hourly wage for projected new positions *solar and combustion 19-38 turbine employees T MIA IMPA pays 100% of employees` 3. Average hourly health insurance benef -it $ health insurance costs and 80% of family members' costs I . The length of the abatement you are requesting- 5 years (A 1-1 d year abatement may be requested for real estate improvements and manufactw-ing 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 areal estate improvements • costs of the proposed real estate improvements DEFLWIONS 1. average hourly wage for existing employees: for your most recent pay period please provide the average base wage per hourfor all cur rent furl time, non --supervisory employees Do not include the following groups: A. part time employees; B. managemen4 supervisors, foremen, or any other supervisory personnel; C. owners, stockholders, or partners if they own Z% 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 fan ily members Please present in the ,Form of an hourly rate computed using the annual cost per eligible employee divided by 2080 hours. M-M � -- I - [0. M I L�M 9ANK VAR Z,ra,i-iorize—d,Signat�r-e--a--n--d—Title) Equipment List -- Richmond 3 Solar Park Indiana Municipal Power Agency *As a whole, the solar park is expected to have a projected useful life of 40 to 50 years Solar photovoltaic panels • Description-: The solar panels are designed to absorb the sun's rays as a source of energy for generating electricity. • Cost: Approximately $4 million • To be purchased Single axis tracking system • Description: The racking system that the solar panels are mounted atop and which rotate with the sun as it moves across the sky during the day in order -to increase the solar panels' generating capacity. • Cost: Approximately $2:5 million • To be purchased Tr-crP?+Pre • Description: The unit that converts the variable direct current output of a solar panel into a utility frequency alternating current that can then be fed into Richmond Power and Light's electric distribution system. • Cost: Approximately $650,000 • To be purchased .Transformers • Description: A single-phase transformer on the site will provide power to the equipment at the solar facility when it is not generating its own power (i.e. cloudy days and at night). A three-phase transformer wi11 also be on the site to step up the power so that it can be distributed on Richmond Power & Light's system. • Cost: Approximately $120,000 ■ To be purchased Electric wirin • Description: Electric. wiring is used to string the solar panels together and into the inverters, take the AC power converted at the inverters to the 480--volt AC panels and then from the AC panels to three --phase transformer. Once power is stepped up at the three phase transformer, medium voltage electric cable is taken through the padmounted equipment to then interconnect with Richmond Power & Light's distribution system.. • Cost: This is a part of the electric contractor's cost and cannot be easily broken out. The electric equipment, paired with the electric labor costs are estimated to be $1.4 million for this site. • To be purchased ,�wYt�hgear • Description: A combination of electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate the electrical equipment. A. switchgeax is used both to de -energize equipment to allow work to be done and to clear faults downstream. • Cost: Approximately $20,000 • To be purchased Recloser and recloser control ■ Description: A circuit breaker equipped with a mechanism that automatically doses the breaker after it has been opened due to a fault. ■ Cost: Approximately $25,000 • To be purchased Metering cabinet • Description: The current transformers and potential transformers used to read the output of the solar facility. • Cost: $20,000 • To be purchased