HomeMy Public PortalAbout056-2019 - Tax abatement - TBK America - real estateCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
AMENDED ORDINANCE NO.56-2019
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, 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 roust 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
info 1 mation 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, 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:
REAL ESTATE - 9 YEARS
TBK America, Inc.
Current Jobs: 98
Jobs Retained: 98
Jobs Created: 5
Estimated New value: $5691000.00
Dated: November 151, 2019
Passed and adopted tlusr!G day o. c20i 9, by the Common Council of the
City of Richmond, Indiana.
President
Gary Turner
ATTES
Clerk (Karen Chasteen, IAMC,
MMC)
-2--e? 1--,rD
PRESENTED to the Mayor of the City of Richmond Indiana , day o 70
Qo-ei
this OOPF
at 9:00 a.m.
�-002,� _ J �"- ��ty Clerk
. (Karen Chasteen, IAMC, AMC)
APPROVED b me id M. Snow Mayor of the City of Richmond Indian OlT da of
y y tY y
this V
,20193 a�9��- rm.
II *t . go's D A-,vo'\
t � ayor
David M. Snow
ATTEST. r
(Karen Chasteen, IAMC, MMC)
a I A"CEiENT Ur B ENEi~ 1TS
was
REAL. ESTATE IMPROVEMENTS
State Farce517s7 (l�s 11a-14) Prescribed by the Department of Local eovemment Finance
This statement Is being completed for real property that qualllies under the following lndlane Code [check one bA&-
(J Redevelopment or rehabilitation of real estate Improvements (IC 6-1.1.12.1- 4)
Q Residentially distressed area (10 6-1.1-12.1-4.1)
INSTRUCTIONS.
2 � PAY 20„�
FORM $841 Real Property
PRIVACY NOYIGE
An yy Information concerning the cast
of rho pro a�y and apsc3fie saiories
Id to In�IvIdual ampiayses oy the
predy owners conildentlel par
IC Vagg-7.1" 2.14.1.
I. This statement must be submitted to the body deslgnafing the Economlo Revitalization Area prior to the public hearing if the deslgnaffng body requires
Information ftm the appRoant In makIng Its declslan about whether to designate an Economic Revllallzatlon Area. Cthetwise, this statementmust be
submitted to the deslgnaling body BEFORE the redevelopment or rehabliltellon of real property for which the person wishes to clalrn a deduction,
2. The statement of benefits Norm must he sttbrnllted to the deslgnatfngbody and the area designated an economic revileffaetlon area befam the initiation of
the ►a development or r+ehablNtattan for which the person desires to claim a deduction.
3. To obtain a deduction, a Form 3221RE must he flied with the CountyAudltorbefore May 10 In the yearin which the addltlon to assessed valuation is
made or not later than thirty (30) days after the assessment notice Is mailed to the property owner If R was inailed atterAlarl110. A property awn who
felled to file a deduction application within the prescribed deadllne may fire an appllcallon between March I and May 10 of a subsequent year.
4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form Cl +IlReat Property. Th9 Form CF-11Ree1
Property should be attached to the 1+onn 3221RF when the deduction Is flrst claimed and then updated annually for each yeQr the deduction is applicable,
IC 1-6,1(b)
6. For a Form SO-llReaf Prapeny that Is approved after June 30, 2014 the designating body Is required to establish an abatement schedule fvr each
deduction allowed. For a Form SB-IlReal Property that Is approved prior to July 1, 2013, the abatement schedule approved by the desfgnalfng body
remains In effect. 1C 61.142.1-17
SECTION I TAXPAYER
ame of taxpayer
TEK America, Inc.
Addtass of taxpayer (number and street QX stela, and ZIP toile)
3700 K industries Rd., Richmond, IN 47374
Dame of conloot person
Telephone number
E-mat address
Tomokazu Takamura
( 765 ) 962.0147
TomokaztLTakemurapthkamedca,00m
SECTION 2 LOCATION AND DE-SCRIPTION
erne of desid-nating body
OF PROPOSED PROJECT
ResoluRon number
City of Richmond
Lacalton of pfoperty
County
DLGF taxing distdat number
3700 W. Industries Rd., Richmond, IN 47374
[Wayne
030
DescripUvn of real property Improvements, redevelopment, or re a ilitallaA (arse ed0unal sets Ifner-essary)
The project consists of certain buildfng Improvements, Including existing Improvements to air conditioning and clean
Estimated start date (manfh, day, ysa4
01101/20/9
roam for tube pump assembly line,
-
allmated completion date (monA day, year
12/3112020
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESUrLT OF PROPOSED PROJECT
Current number 5e10fles er retained
saierfas Humber addilfonal Salaries
98.00 1$23.97 00
L981-
L23.97 5.00
$ 1 4.50
D TOTA L COSTD VALU E OF P ROP OSED P ROJECT
REAL ESTATE IMPROVEMENTS
COST
ASSESSED VALUE
Current values -
.
Plus estimated values of proposed project
sss,aco.ao
Less values of any proearlybeing replaced
Not estimated values upon completion of ql9lect
WASTESECTION 5 ■ AND OTHER
BENEFITS PROMISED BY + "+
Estimated solid waste converted (pounds) ,
Estimated hazardous waste converted (pounds)
�a� app�icahle,
SECTION 6 •r CERTIFICATION
TAXPAYER
I hereby certify that tha representaflons In this statement are true.
s1Rnew a # fired r
yes0
Date sIgne7j77zo/r
P oral name of autharked repreaentativo
Tills
-Z/.
Tarnokazu Takamura
General Manager
Page I of 2
FOR USE OF THE DESIGNATING '/D
We And that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed
under IC 6-1.1-12.1, provides for the following limitations:
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
B. The type of deduction that is allowed In the designated area Is limited to:
1. Redevelopment or rehabilitation of real estate improvements ❑ Yes ❑ No
2. Residentially distressed areas ❑ Yes ❑ No
C. The amount of the deduction applicable Is limited to $
D. Other limitations or conditions (specfiyj
E. Number of years allowed: ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year4 ❑ Year 5 (*see below)
❑ Year 6 ❑ Year 7 ❑ Year S ❑ Year 9 ❑ Year 10
F. 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.
WO have also 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 sufflclent to Justify the deduction described above.
Approved (signature and rifle of authorized member of designating body) Telephone number Hate 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 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 6-1.1-12.147.
A. For residentially distressed areas where the Form SB-1/Reat Property was approved prior to July 1, 20i3, the deductions established in 1C
6-1.1-12.1-4.1 remain In effect. The deduction period may not exceed five (5) years. For a Form SB-11Real Property that Is approved after June 30,
2013, the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
(10) years. (See IC 6-1.1-12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SB-11Real Property was approved prior to July 1, 2013, the abatement
schedule approved by the designating body remains In effect. For a Form SB-1/Real Property that Is approved after June 30, 2013, the designating
body Is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1-12.1-17 below.)
IC 6-1.1-12.1-17
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 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 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 terns of the resolution approving the taxpayer's statement of benefits.
Page 2 of 2
3
Form SB-lA
City of Richmond, Indiana
Taxpayer Wage &Benefit Information
Company Name, Address & Contact Nits n; TBK America, Inc.
3700 W. Industries Rd.
Richmond, IN 47374
Tomokazu Takamura
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 Riclunond 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.
i . Average hourly wage for existing employees $23.97
2. Average hourly wage for projected new positions $14.50 starting hourly
wage growing to $15.00
3. Average hourly health inswoance benefit $8.24
l . The length of the abatement you are requesting 10
(A 1-10 ,year abatement may be i-equesledfor iteal estate Mprouements and inanufactin ing
equipment.)
2. If purchasing equipment, please attach a list that includes the following;
■ brief description of each piece of equipment being purchased
Constimotion of body line, pulley line, and related improveinents, which include a case line, oil
pump, laser marking station and washing machine pump assembly line upgrade and
newlautonnated measurement and runout Ynventory management system, renewal of machining
centers and now/automated measurement and runout.
■ the projected useful life of each piece of equipment
New Machinery and Equipment: 9 years .
New Software: 3 years
■ the state(s) in which the equipment is being brought into Indiana f oin if purchasing used
equipment
Indiana
■ the cost of each piece of equipment
Approximate costs:
2019
2020
2021
Now Machinery and Equipment
$1,051,971
$7673,000
1$7001000