HomeMy Public PortalAbout059-2019 - Tax abatement - Smith Foods - IT equipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
AMENDED ORDINANCE NO.59-2019
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
WfIER.EAS, 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 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 Dumber 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-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:
INFORMATION TECHNOLOGY EQUIPMENT — 5 YEARS
Smith Foods, Inc.
Current Jobs: 128
Jobs Retained: 128
Jobs Created: 34
Estimated New value: $110,000.00
Dated: November 15, 2019
Passed and adopted this /!� day of he Common Council of the
City of Richmond, Indiana.
� ,President
Gar u r
ATT'ES ,
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the- City of Richmond, Indiana, this�� day of
at 9:00 a.m.
ity Clerk
(Karen Chasteen, IAMC, MMC)
Mayor of the City of Richmond Indiana this al *da of
D(Lr-, ( APPROVED by me, David M. Snow, y ty _ � s y
C 6(�20I9, at : 09
A
(Karen Chasteen, IAMC, MMC)
Mayor
STATEMENT OF BENEFITS FORM SB-1 ! PP
PERSONAL PROPERTY
State Form 51764 (R4 / 11-15)
Prescribed by the Department of Local Government Finance PRIVACY NOTICE
An information concerning the cost
of &19 property and specific salarias paid
to individual employees by the property
owner is confidential per 1C
INSTRUCTIONS
,. This statement must be submitted to the body designating the Economic revitalization Area prior to the public hearing if the designating body requires
informatlon from the applicant in making Its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be
submiWed to the destgnalrng 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 clalm 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 ahatable equipment for which the person desires to cfairn a deduction,
P
3. To obtain a deduction, a person must file a certif ed dedur tlon schedule with the person's personal property return on a ceriifled deduction schedule
(Form 103-ERA) with the township assessor of the township where the property is situated or with the county assessor ff there is no lownshlp assessor
__. __._.Mru.......__ for 'the-fownshlp; The`103=ERi4 must"be�fllad'b�twe�n Jarivatjr�'9 end"Nrny-15 df fife ss sin�rif�ea lii�viilch held rnant�farltirlr�g eq�iipiderit' �"w .
t and/or research and development equipment and/or logistical dr'strrbWan 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
doe date of that year.
4. Property awners whose Statement of Benefits was approved, ►oust submit Form CF-11PP annually to show compliance with the Statement of Benefits.
l
a. For e Form SB-11PP that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed
Fora Form SB-11PP that is approved prior to July 1, 2013, the abatement schedule approved by the dedlgnatrng body remains in effect (IC 6-1.1-1214 7)
SECTION I TAXPAYER INFORMATION
' Name of taxpayer"
Name of contact person
SmithFoods, Inc.
Amy Miller, Chief Financial Officer
Address of taxpayer (number and street, dig state, and ZIP code)
Telephone number
1381 Dairy Lane Orrvilte, Ohio 44667
( 330 ) 68+4-6641
SECTION 2' LOCATION AND DESCRIPTION
OF PROPOSED PROJECT
Name of designating body
Resotulion number is
SmithFoods Richmond, Inc.
10-1984
Location of property
County
DLGF taxing district number
1690 NW 111h Street Richmond, Indiana 47374
Wayne County
030
D69ed ion of ma"pfcdl,trirria eqqul iment. andlor research and development ipment ESTIMATED
: d►pT10 Wice d s bWldn equipment-a�n0rinformatinn;technology'e�ttip t.
{Use all -Hanel sheets jfnecessary.) '
START DATE COMPLETION DATE
Please see attached summary titled "SmithFoods Half Gallon ESL Project Manufacturing Equipment 0110//2020 09/30/2020
Overview"
R & D Equipment 01I011 = 09/3012020
Logist Dist Equipment 0110IJ2020 09/30/2020
IT Equipment 0110112020 091 00/20 00
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESULT OF PROPOSED PROJECT
Current number Salaries dumber retained
Sblsiis Number additional Salaries
128 5,383,373 128
5,383,373 34 31085,888
SECTION 4 ESTIMATED TOTAL COST AND VAWE
OF PROPOSED PROJECT
MAWFMAUMUMNC3
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the E U E T
-. LVGIST 131ST
R & D EQUIPMENT IT EQUIPMENT _
:Eau WENT
COST of the property Is confidential. COST ' E
COST A SESSED CST ASSESVALUE D CDC A VAt SED
VASCurrent
values 38,326,871- . 6g460 551
0 0 0 0 54,9'I 1 294
Plus estimated values of proposed pra'ect=,87;7'50 : 4}878 750
0 D a D 1100000 110,000
Less values of any propertybeing replaced 0, 02
0 0 0 0 0 0
Net estimated values:tiporf:Complr�06n of'p�ajdct. 43,205,G21 i 9 ,339,301
0 D O D '104,911 11 Q,294
OTHERSECTION 5 WASTE CONVERTED AND BENP-FITS
PROMISED 13Y THE TAXPAYER
Estimated solid waste converted (pounds) Estimated hazardous waste convected (pounda)...
Other benefits:
SECTION 6 TAXPAYER CERTIFICATION
i h e 1hat the (�resentagoris in this statement are true.
Signature of aid# o�od• ' prctsenta isi� 4
Date signed (month, day year
Printed name of authoriz represantawe
Ttle
Amy Miller
Chief Financial Officer
Page 1 of 2
FOR USE CF
THE 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 IG 6-1.1-i2.1-2.5, 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 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 IC 6-1.1-i2r1-18
2. installation of new research and development equipment; � ❑Yes ElN o Ghee box if an enhanced abatement was
3 . Installation of new logistical distribuban equipment. El Yes ❑ No
approved tar one or more 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
$ . (One or both lines may be Med out to establish a limit, if desireaQ
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 11mr7,1f 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 he filled out to establish a limit, if desired.)
G. Other limitations or candltions (specify►)
H. The deduction for new manufacturing equipment andlor 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- le'6 '1:'I�'t2;
Number :years approved:
❑ Year 6 ❑ Year 7 ❑ Year a ❑ Year g ❑ Year 10 (Enter one to twenty (1-20) years, may not
exceed twenty (20) years.)
1, For a Statement of Benefits approved after .tune 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177 ❑ 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: (signahue and lisle ofaulhodzed member of dssignaf ng body)
Printed name of authorized member of designating body
Attested by: (signature and Me of attester)
.Telephone number
`Marne of designating bm
Printed name cf attester
Date signed (manlh, day. year)
* 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.
[C 6-1.142.147
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 fallowing factors:,
(1) The total amount of the taxpayees investment in real and personal property.
(2) The number of new full --lime 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 for each declactlon
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.tiny 1, 201% remains in effect until the abatement schedule expires under the teens of the
resolution approving the taxpayer's statement of benefits.
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