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HomeMy Public PortalAbout026-2019 - Tax Abatement - IMPA - Industries Road - EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA ORDINANCE NO.26-2019 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-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 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. Passed and adopted this City of Richmond, Indiana. 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 — 5 YEARS Indiana Municipal Power Agency Current Jobs: 2 Jobs Retained: 2 Jobs Created: NIA Estimated New Value: $13 50005000.00 Dated: April 11, 2019 day of1,,4�019, by the Common Council of the President Ma rner) ATTE�G' �t�LJ i e (Karen Chasteen, IAMC, MNIC) PRESENTED to the Mayor of the City of Richmond, Indiana, this ,:P? /day o 20193 at 9:00 a.m. ��,.Qity Clerk (Karen Chasteen, IAMC, MMC) APPROVED b me David M. Snow Mayor of the City of Richmond Indiana this Z-(— da of r4c y y � �y 2019, at . � , Mayor kDa-vi M. Snow) � ATTES aren Chasteen, IAMC, MMC) STATEMENT OF BENEFITS PRIVACY NOTICE FORM UTILITY DISTRIBUTABLE PROPERTY an Information concerning the cost SI3 I I UD State Form 52446 (R3 )11-15) of he property and specific salaries paid ,. to Ind]Wiclual employees by the property : Prescribed by the Department of Local Government Finance owner is confidential per IC 6-1.1-12.'1-5.1. INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalisation 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 rnusf 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 and/or information technology equipment for which the person wishes to claim a deduction. 2. The statement ofbenefita 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-ERA must be fled with the county assessor. Form Lit]-F'RA must be filed between January 7 and May 15 of the assessment year in which new manufacturing equipment andlorresearch and development equipment andlorlogistical 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 s January 1 and the extended due mate of that year. 4. Property owners whose Statement of Beneirts was approved must submit Farm GF-9lUD annually to show compliance with the Statement of Benefits. (IC 6-9.1-12.1-5.$) 5. Fora Form SB MJD that is approved after ,tune 30, 2013, the desloafing body is required to establish an abatement schedule for each deduction allowed. For a Form SB-I JD that is approved prior to July 1, 2013, the abatement schedule approver/ by the designating body remains in effect. (JC 61. f -12. 1-17) SECTION TAXPAYER •` + • Name of taxpayer Name of contact person Indiana Municipal Power Agency Emily Williams Address of taxpayer (number and street, city, stain and ZIP code) Tilie 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 ) 573-0955 317 ) 575-3372 ( 317 ) 428--6714 emilyw@impa.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Richmond Gammon Council Location of property County Taxing district Industries Road, East of N. Salisbury Road, West of Williamsburg Pike Wayne 030 Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or Information technology equipment Start Date Completion Date (Use adddonai sheets if necessary.) Electric generating facility consisting of solar photovoltaic panels, inverters and Manufacturing Equipment Q1 2020 Q4 2020 transformers, single axis tracking system, posts, wiring, circuit breakers, relays and Research $ DevefopmentEquiprnent related equipment and facilities. Logistical Distribution Equipment Information Technology Equipment SECTiON 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 2 1$19-38/hr Z NIA 10 NIA ESTIMATEDSECTION 4 a AND a PROPOSED PROJECT" Manufacturing Research & Development Logistical Distribution Information Technology NOTE: Pursuant to lC 6-1.1-12.1-5.1(d)(2) the Equipment Equipment Equipment Equipment COST of the property is confldentlal. Cost Assessed Cost Assessed Cost Assessed Cost }assessed Value Value Value Value Current values $4 $0 Plus estimated values of proposed project $1310001000 $3,316,006.94 Tress values of any property being replaced Net estimated values upon completion of project SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION 6 TAXPAYER hereby certify that the pr sentatlons in this statement are true. lgn ure of a or pies v Title Date signed (month, day, year) IMPA Executive Vice President & CCD 4111 f 20'19 ma;Y,dress Telephone number Fax number 'ale@impa.ccm = 317 ) 573-9955 ( 3'17 ) 675-337 Page 1 of 2 We have reviewed our prior actlons 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 1C 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 td exceed calendar years * (see below). The date this designation expires Is . NOTE: 7171s 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 [Imited to: 1. installation of new manufacturing equipment; ❑ Yes [--]No 2. installation of new research and development equipment; ❑ Yes ❑ No 3. Installation of new logistical distribution equipment; ❑ Yes ❑ No 4. installation of new information technology equipment; ❑ Yes ❑ No C . The amount of deduction applicable to new manufacturing equipment is limited to $ $ . (One or both lines maybe filled out to establish a limit, if desired.) D. The amount of deduction applicable to new research and development equipment is limited to $ $ . (Ore 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 $ $ (Otte or both lines may be filled out to establish a limit, if desired.) F. The amount of deduction applicable to new inforrrmaton technology equipment Is limited to $ $ . (One or both lines may be filled out to establish a limit, if desired.) G. Other limitations or conditions (specify) ❑ Enhanced Abatement per (C 6-1,1-12.1-18 Check box ff an enhanced abatement was approved for one or more of these types. cost with an assessed value of cost with an assessed value of cost with an assessed value of cost with an assessed value of 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 6 ❑ Enhanced Abatement per IC 6-1.1-12.1-18 Number of years approved: ❑ Year 6 ❑ Year 7 C Year S ❑ Year 9 ❑ Year 19 (Enter one to twenty (120) years, may not exceed twenty (2n) 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: (signature and We 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. (signafure and Yfle 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 loss than the number of years designated under 10 6-1.1-12.1-17. IC 6-1.142.147 Abatement schedules See.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. (by 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 until the abatement schedule expires under the terms of the resolution approving the taxpayers statement of benefits. Page 2 of 2 Form SB -1 A City of Richmond, Indiana Taxpayer wage & Benefit Information u E' Company Name, Address & Contact Person: Indiana Municipal Power Agency 11610 N, College Avenue, Carmel, IN 46032 Emily Williams, Project Manager, emilyw@jmpa.com The information requested on this supplement to form SB-1 must be completed and submitted i along with your SB-t 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 apart of our monitoring process. *solar and combustion 1. Average hourly wage for existing employees $19-sa turbine employees 2. Average hourly wage for projected new positions $ N/A IMPA pays 100% of employees' 3. Average hourly health insurance benefit $ health insurance costs and 80% of family members'costs 1. The length of the abatement you are requesting s 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 responsib 1 e 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 DEFIMIONS I. Average how Iy wage for- existing employees: for your most recent pay period please provide the average base swage per hourfor all current full time, non -supervisory 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 own 2% or more of the business, and their family members. 2. Average hourly wage for•,projected new positions: Use the saute 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. (t xizcd Signature and Title) ate) Equipment List -- Richmond 4 Solar Park Indiana Municipal Power Agency *As a whole, the solar parr is expected to have a projected useful life of 40 to 50 years Solar photovoltaic panels s Description.: The solar panels are designed to absorb the sun's rays as a source of energy for generating electricity. • Cost: Approximately $5 million • To be purchased Single axis trackiniz s stem 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 $3 million • To be purchased TnvPrfPrc • 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 $800,000 • 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 transfonn.er will also be on the site to step up the power so that it can be distributed on Richmond Power & Light's system. Cost: Approximately $15 0,000 • 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, mediwn 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 $1.6 m lion for this site. 0 To be purchased S Switchge"It • Description: A combination of electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate the electrical equipment..A. switchgear is used both to de --energize equipment to allow work to be done and to clear faults downstream. a Cost: Approximately $20,000 To be purchased t Recloser and recto ser control • Description: A circuit breaker equipped with a mechanism that automatically closes the breaker after it has been opened due to a fault. • Cost: Approximately $25,000 • To be purchased MeterinKcabinet ■ Description: The current transformers and potential. transformers used to read the output tut p of the solar facility. ■ Cost: $20,000 • To be purchased