HomeMy Public PortalAbout055-2019 - Tax abatement - Primex - manufacturing equipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
AMENDED ORDINANCE NO.55-20l9
A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OFA
STATEMENT OFDENEFITS FORA PROPERTY OWNER
APPLYING FORDEDUCTIONS UNDERJ.G. 6-1.142A
WHEREAS, Common Council has previously designated eight economic revitalization areas
within the City of Richmond; and
WHEREAS, J.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 mare 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
info 1 mation 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.
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 withthese findings.
Now THEREFORE, be it ordained by the Common Council ofthe City ofRichmond,
that the following property owner meets the requirements for property tax assessed valuation
deductions, as follows:
MANUFACTURING EQUIPMENT - 9 YEARS
Primex Plastics Corporation
Current Jobs: 318
Jobs Retained: 318
Jobs Created: 6
Estimated Newvalue: K935,476.00
Dated: November 22, 2019
Passed and adopted this/—&
City ofRichmond, Indiana.
day of the
ATTEST
CityClerk (Karen Chasteen, IAMC,
MMC)
Common Council ofthe
President
(Gary urner)
PRESENTED to the Mayor ofthe City of Richmond, Indiana, this da �;-
at 9:00 a.m.
�,� � • -- l,��� Clerk
(Karen Chasteen, IAMC, MMC)
APPROVED by me, David M. Snow, Mayor ofthe City ofRichmond, Indiana, thiso-0_7-Tday of
�Alu � 2019, at9,15Mn. f ; 3 0 Am
C
__ _______------------------------------------------------------
Mayor
avid M. Snow)
ATTES
(Karen Chasteen, IAMC,
MMC)
e '
STATEMENT OF BENEFITS
PERSONAL. PROPERTY - .
A State Form 51764 (114111-15)
{ Prescribed by -the Department of Local Government Finance
FORM SB-91 PP
PRIVACY NOTICE
Any information concerning the cost
of the property and specific salaries paid
to individual employees by the property
owner is confidential per IC
INSTRUCTIONS
7, This statement rust be submitted to the body designating the Economic Revitalization Area prior to the public hearing ifs. designating body regpires
Information from the applicant In making its decision about whether to designate an Economic-Revitalizatibn Area. Otherwise this statement must be:
submitted to the designating body BEFORE a person installs the new manufacturing equipment andlor research and development equipment, anchor
logistical distribution equipment andlor Information 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, a person roust Fite- a certified deduction schedule with the person's personal property return on- a cerfil<ed deduction schedule
(Form 103-ERA) with the fownshlp-assessor of the township where the property is situated br'with fhe 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
andlor research and development equipment andlor logistical distribution equipment andlor information technology equipment Is Installed and fully
Functional, unless a filing extension has been obtained A persons who obtains a Fling 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 CF-1IPP annually to show compliance with the Statement -of Benefits.
(IC 6-1.1-121-5.6)
5. For a Form SB-11PP that is approved after dune 30, 2013, the designating body is required to establish . an abatement schedule for each deduction allowed.
For a Form-SB-1IPP-that is approved prior to -July 1, 2013, the abatement schedule approved by the designating body remains -in effect. (IC 5-1.14Z f-1 T)
SECTIONTAXPAYER
IN
Name of taxpayer
-FORMATION
name of contact person
Primex Plastics Corporation
Holli Farmer,
Address of taxpayer (number end street, cif, state, antl.zlP code)
Telephone number
1235 North F Street Richmond, IN' 41374
( 765 ) 973-0140
SECTION 2 LOCATION AND DESCRIPTION
OF PROPOSED PROJECT
Name of designating body
Resolution number (a)
Primex Plastics Corporation
Ldeation of property.
County
DLGF taxing district number
1235 North F Street Richmond, IN 47374
Wayne
Description of manufacturing equipment andlor research and development equipmdhf ESTIMATEQ
andlor logistical distribution equipment andlor information technology equipment. START DATE COMPLETION DATE
(Use additional sheets.ifnecessary.)
See Attached Listing
Manufacturing Equipment
R & D Equipment
Loglst.Dist Equipment
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEESAND SALARIES
AS RESULT OF.PR.OPOSED PROJECT
Current number salaries Number retained
Salaries Number addillonal 5atartes
318 12, 679, 804 318
121679,804 6 203.547
88CTION 4 ESTIMATED TOTAL COST AND
VALUE OF PROPOSED PROJECT
MOTE: Pursuant to IC 6-'l,'I-12.1-5.'I (d� {2� the MANUFACTURING
EQUIPMENT
R & D EQUIPMENT Lt3Gl5T DIST IT EQUIPMENT ~
EQUIPMENT
COST of the property is confidential. COST ASSESSED
VALUE
COST ASSESSED COST ASSESSED COST ASSESSED
VALUE VALUE VALUE
Current values
Pius estimated values -of proposed project 61'935,476
Less,values of any property being replaced
1
Net estimated values upon completion of project 6;935,476
8:15-CTION 5 WASTE CONVERTED AND OTHER BENEFITS
RROMIS-ED BY THE TAXPAYER
Estimated solid -waste converted (pounds) 0
mated, waste Converted {pounds)
Esti°
Other benefits:
SECTION TAX -PAYER
CERTIFICATION
hereby certify that the representations In this statement are true.
Sig at a of au►hoftbd rep esentati
Date fined (onlh, dax.year)
�`AS
Print 'd name of aulhod d r p esenta Iva
Ttfe�
vage 7 or z
Primex Plastics Corporation
Manufacturing Equipment
Start Date
Completion Date
High Speed Thin Gauge Olefin Line
$4,534,.460-97
11/18
12/20
Jagger System
$ 129,275.00
11/18
12f20
Drying/Dust Systems
$ 777,801.79
11/18
12/20
Blender, Fans, Panels, Motor
$ 471,961.13
11/18
12/20
Granulator
$ 119,466.00
11/18
12/20
Fellitizer
$ 671,179.56
11/18
12/20
Vaccum System
$ 231,332.00
11/18
12/20
Total
$ 6,935,476.45
FOR USE OF THE DESIQNATING 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 6-1.1-12.1-2.51 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 . MOTE: This question addresses whether the resolution contains an expiration date for #ire designated arse,
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 64.1-12.1-18
2. Installation of new research and development equipment; ❑ Yes ❑ No Check box Iran enhanced abatement was
3. Installation of now logistical distribution equipment. ❑ Yes ❑ No approved for 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
$ . (Ono or bolh lines may be lined 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 boor lines maybe 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, if desired)
F. The amount of deduction applicable to new Inforination technology equipment Is limited to $ cost with an assessed value of
$ . (One or both tines may be tilled out to establish a limit, if desired.)
a Other limitations or conditions (specilyj
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 far.
❑ Year'I ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 ❑ Enhanced Abatement per IC 6-1.1-12.1-18
Number of years approved:
D Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 (Enter one to twenty (1-20) yearn 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 10 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: (sign alure and M ofauthodzed memberof designating body)
Telephone number
Date signed (month, day. year)
Printed name of authorized member of designating body
Name of designating body
Most" by: (sdgnalure and fifie ofattested
Printed name of attester
* If the designating body limits the time period during which an area Is an economic revitalization area, that [imitation 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 64.142.1-17
Abatement schedules
Sam 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 secilon 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 fnvestment.
(b) 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 taxpayer's statement of benefits.
Page 2 of 2
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Form SB-1A
i
City of Richmond, Indiana � 3
Taxpayer wage & Benefit Information.
Company Name, Address & Contact Person: Primex Plastics Corporation
Holli Farmer
1235 North F Street
Richmond, IN 47374 .
The information requested on this supplement to form SB-1 must be completed and submitted
along with your SB- l 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 _q 7
2. Average hourly wage for projected new positions $1 6.31
3. Average hourly health insurance benefit
6;71
1. The length of the abatement you are requesting
(A 1-10 year abatement may be, r•egrresled fog- real estate inp-o' - vemenis and rani acttit-ing egtt!pin ent.)
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 oi- 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:
o brief description of the real estate improvement (near construction, rehab, expansion, etc.)
s size of the proposed real estate improvements
• costs of the- proposed real estate improvements
DEFINITIONS
J. Average hourly wage for existing employees: foryour most recent pay period please provide the
average Lase wage per hourfor all currentfull time, non supervisory employees. Do not include the
following groups;
A. part thne employees; a
R management, supervisors, foremen, or any other supervisory personnel;
C. owners, stockholders, or partners if they own 2% or more o, f'the business, and their
family merrrbers.
2. Average hourly wage, for projected new positions: Use the same definition of employees to be included
as in number one above.
3. ,overage hourly health insurance benefit: Please provide the _current company paid health insurance
benefits provided to hourly employees (as defined above) and fan ly meinbers. please present in the
fortrr of an hourly gate computed using the annual cost per eligible employee divided by 2080 hours.
.,4 .. k P__ � (! z
Qit �Aut ori2ed Signature and(Date)
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