HomeMy Public PortalAbout058-2019 - Tax abatement - Smith Foods - manufacturing equipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
AMENDED ORDINANCE NO. 58-2019
A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A.
STATEMENT OF -BENEFITS FOR A PROPERTY OWNER
APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.142.1
WHEREAS, Common Council has previously designated eight economic revitalization areas
within the City of Richmond; and
WHEREAS, I.C. 6-1.1 w 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,
Is
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.
5. That installation of the equipment described in the SB-1 must be completed
within. 48 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 48 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, 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 EOUIPMENT ---10 YEARS
Smith Foods, Inc.
Current Jobs: 128
Jobs Retained: ' 128
Jobs Created: 34
Estimated New Value: $4,878,750.00
Dated: November 15, 2019
Passed and adopted this day of , by the Common Council of the
City of Richmond, Indiana.
President
( Tu r)
ATTES
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this/7 day of ,
at 9:00 a.m.
ity Clerk
(Karen Chasteen, LAMC, MMQ
APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this day of
Dt 6 C 2019, at . . - � 5 rem
Mayor
. S w)
001/
ATT T:
(Karen Chasteen, IAMC, MMC)
1 t
r
t
' STATEMENT OF BENEFITS
PERSONAL PROPERTY FORM SB-41 PP
State Form 51764 t114111-1 sy
Prescribed by the Department of Local Govemment Finance PRIVACY NOTICE
Any Information concerning the cost
of theproperty and apeciric salaries paid
to individual employees by the property
owner is confidential per 1C 5-1.1-12.1-5.1.
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
submitted to the designating body BEFORE a person installs the new manufacturing equipment and/or research and development equipment and/or
I logistical distribution equipment and/or information technology equipment for which the person wishes to claim a deduction.
Z The statement of benefits form roust 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.
1 To obtain a deduction, a parson !trust file a certified deduction schedule with the person's personal property retum 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 there 1s no lownshlp assessor
. - for,the-township,
The'103=ERA must-be� file d-between Van uary-1,�and NMay,15 of'the es�essrrr�rit�ear lii-whYb� ir��N'lriadtJfactgring�eq�ipr�►ieirl�J�-- V �� _._
and/or research and development equipment and/or logistical distribution equipment andlor Information technology equipment is installed and full
functional, unless a frog extension has been obtained. A person who obtains a fling extension must file the form between January 1 and the extended
due date of that year.
r 4. Property owners whose Statement of Benefits was approved, must subrh# Form CF-I/PP annually to show compliance with the Statement of Benefls.
(IC 6-1,1-12,1-5 6)
5., For a Form S8--11PP that is approved alterJune 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed
E For a Form SB-11PP that is approved prior to July 1� 2013, the abatement schedule approved by the designating body remains in effect, (1C 6-1.1-12;:1-1 7)
SECTION I TAXPAYER
NNW
INFORMATION
'Name of taxpayer" �
Name of contact person
SmithFoods, Inc.
Amy Miller, Chief Financial Officer
Address of taxpayer (rrumberand street, cirys stafe, and VP code)
Telephone number
1381 Dairy Lane Orrville, Ohio 44667
330 ) 684-6541
SECTION 2 LOCATION 1 DESCRIPTION
PROPOSED PROJECT
Name of designating body
Resolution number 5)
SmithFcods Richmond, Inc.
1 p-1984
Locations of property
County DLGF taxing district number
1590 NW 11th Street Richmond, Indiana 47374
Wayne County 030
06'scrtption of ma"UfA'ctl dq9 equipment ar)dlor resew h- and development, ESTIMATED
- 6ftr logistical dfstdbUU6n' equrpmgtn-and/or infor;intatldn=technoiogy:e*ulpment. START DATE COMPLETION DATE
{Use addillanal sheets if necessary.}
Please see attached summary titled "SmithFoods Half Gallon ESL Project
Manufacturing Equipment 01/01/2020 09130/2020
Overview"
R & D Equipment 0/101/2020 09/30/2020
Loglat Dist Equipment 01/01/2020 09/30/2020
IT Equipment 01101 /2020 (191301202SECTION
3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESULT OF PROP 7sED PROJECT
Curren number Salarlea Number retained
Salaries Number additional Salaries
128 5,383,373 128
59383,373 34 3,085,888
ESTIMATED�J,
SECTION 4 TOTAL COST AND
VALUE OF PROPOSED
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURINGR
Egyl ENT
8 EQUIPMENT LDaIST OiST
D IT EQUIPMENT
P. NT
G05T of the property is confidential. COST = �EO
-UE
COST ASSESSED COST AssESSED COST ASSESSEa .
VALUE VALUE 11A1-UE
Current values
38,326,871:
'. 61460,551
0
0
0
0 54,911
294
Plus estimated values of proposed pro ect
4 878075P
: 4,878,750
0
0
4
0 110,000
110,000
Less values of any pro erty belng replaced
G
0,
0
0
0
0 0
0
Net estimated values=�pW."'amp[Midn df�pto bci:` �3,205,fi21 11,339,301
0 ❑ 0 0 164,911 110,294
SECTION 5 WASTE CONVERTED OTHER BENEFITS
PROMISED BYTHE TAXPAYER
Estimated solid waste converted (pounds)
_
Estimated hazardous waste converted (pounds). C
Other benefits:
r ;w CERTIFICATION
SECTION 6 TAXPAYER
I hereby-certkthat the tepmsentatlons In this statement are true_
Signature of au ari 4- presentalFye `
Date signed (month, day year)
... , .
�. I .Uo2 of .
Printed name of authorizaerepresentative
T11e
Amy Miller
Chief Financial Officer
Pagel of 2
■ � k ■ F
� L
1 r �
f
+ Ft
e
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 ti-'IA-12.1-2.5, provides for the following limitations as
authorized under IC 8-1.1-12.1-2.
A. The designated area has been Ilrmited to a period of time not to exceed . calendar years * (see below). The date this designation expires
MOTE. 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 ❑ No Check box N an enhanced abatement was
3. Installation of new logistical distribution equipment. 0 Yes ❑ No approved fnr one or more of these types
4 . Installation of new information• technology equipment; ❑ Yes ❑ N o
C . The amount of deduction applicable to new manufacturing equipment Ia limited to $ cost with an assessed value of
$ ; (One or both lines maybe filled out to establish a limit. if desired.)
0. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of
$ . (One or boar lines may be tined out to establish a limit, ff 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 maybe Bled out to establish a Ilrnr?, 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 ilmit, ff desired)
G. Other limitations or conditions s ec►
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 ❑ Enhdncei d Abatement 0-er1C
Number !:years apprroyed:
❑ Year S ❑ Year 7 Cl Year B ❑ Year B ❑ Year 10 (✓Enter one to twenty (f 20) years; may not
exceed twenty (20) years.) -
i,... For a Statement of Bene%ts approved after June 30, 2013, did this designating body adopt an abatement schedule per IC B-1.1-12.1-177 ❑ 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: (signalure and a#fe of authodled member of designating body) .Telephone numbar Date signed (month, day. year)
Printed name of authorized member of designating body 'Name of designating body -
Attested by: (signature and fine of attester) Printed name of aftester
* 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 6-1.142.1-17
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 tmWyer'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 all, 2013. A designating body shall establish an abatement schedule for each deduction
allowed under this chapter. An abatement schedule musk 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 temLs of the
resolution approving the tdxpayer's statement of benefits.
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