HomeMy Public PortalAbout060-2019 - Tax abatement - TBK America - manufacturing equipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
AMENDED ORDINANCE NO, 60-2019
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 5-201 9 and that said deduction
schedule is applicable to the deductions approved along with these findings.
t
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 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 - 9 YEARS
TBK America, Inc.
Current Jobs: 98
Jobs Retained: 98
Jobs Created: 5
Estimated New Value: $2,518,97 1.00
Dated: November 15, 2019
Passed and adopted this 16 day of , by the Common Council of the
City of Richmond, Indiana.
President
(Gary urner
ATTES
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this day f ,
at 9:00 a.m.
�rt�w-,sty Clerk
(Karen Chasteen, IAMC, MMC)
APPROVED by me, David M. Sno ,Mayor of the City of Richmond, Indiana, this () 3T ay of
2019, att=:Zib. 1:3
May
. n )
ATTEST:
(Karen Chasteen, IAMC, MMC)
y r
STATEMENT OF BENEFITS
PERSONAL PROPERTY FORM SB-'� 1 PP
State Form 51764 (R4111-16) .
r
Prescdbed by the Department of Local Government Finance PRIVACY NOTICE '
An Information concerning the cost
Of the property and specific salaries pald
to individual employees by the ppropperty
owner is confidential per iG 6-1.1-'[2.r.5.1.
INSTRUC77ONS
7. This statement must ba submitted to the body desfgnaling the Econaml6 Revltalizallon Area prior to the publlc 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 raust be
submitted to the designating body BEFORE a person installs the new manufacturing equipment andlor research and development equipment, andlor
loglstkal distribution equipment andlor Information technology equipment for which the person wishes to claim a deductlon,
2. The statement of benefits form mast be submitted to the designating body fond the area destgnated an economic evilalIzatlon area before the installation
of qualtlying abatable equipment for which the person desires to claim a deductlon.
3. To obtain a deductlon,, a person must file a cedifled deductlon schedule wait the persons personal properly return on a certlped deduction schedule
(Form 103-ERA) with the township assessor of the township where the property la situated or with the 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 loglstical distribution equipment andlor Information technology equipment Is Installed and fully
functional, unless a filing extension has been obtained, A person who obtains a flung extension must file the form between January 1 and the extended
due date of that year.
4. Property owners whose Statement of Benefits was approved, must submit Fonn CFL11PP annually to show Compliance with the Statement of Benefits.
(IC 6.1.1-1Z 1-5.6)
5. Fora Form SB-t/PP that is approved aRerJune 30, 201,e the designating bady is mquiraed to establish an abatement schedule foreach deduction allowed.
For a Form SB-1/PP that Is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains In effect, (IC F-9.1-1Z I-17)
+ I KI V Ck"a I I� � t ■
Name of taxpayer Namo of contact person ,
TBK America, Inc. Tomokazu Takamura
Address of taxpayer (numb or and almot, dly slate, and ZIP code) Telephone number
3700 W. Industries Rd., Richmond, IN 47374 765 j 982-0147
. �*Iftv I -.-- __m— -
Name of daalgnaftg body Resolution number (s)
City of Richmond
Locatlon of property County DLGF taxing district number
3700 W. industries Rd., Richmond, IN +47374 Wayne 030
Description of manufacturing equipment andlor research and development equipment ESTIMATED
andlor logistical distribution equipment andlor infortnation technology equipment.
(Use addltlornal 5 efS If eCessa .) START DATE COMPLETION DATE
Construction aillody n'e puiiey line, and related improvements, which include
Manufacturing Equipment 0110112019 12131t2021
a case IM6, oil pump, laser marking station and washing machine pump
assembly line upgrade and new/automated measurement and runout R & D Equipment
inventory management system, renewal of machining centers and new/ Loaiat Dist Equipment
automated measurement and runout.
IT Equipment 01/01/2019 1213112021
MM
Current number Salades Number retained Salaries Number addict al Salaries
98 23.97 98 23.97 5 ''14.50
■ • i ■ ■ I 1 + ■ ■-■ p *w■
NOTE: Pursuant to IC fi�1.'i-'12.1-5.'! (d) (2) the MANU IPMENtINC3 R g D EQUIPMENT, LOCUST D1ST IT EQUIPMENT'
E U PMENT E UIPMENT
COST of the property Is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED
• VALUE VALUE VALUE VALUE
Current values Sf
Pius estimated values of proposed project 7 0-
V
Less values of any pro2eq being replaced
Net estimated values upon completion of project 2,5181971 190,000
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
r ben W
ay app� cable, '
•a - -
I hereby certify that the representations In this statement are We.
Signature of au od'ed a tine pate signed onth, day, year
Printed nems of su added r4presentat2Ve Tlue
Tomokazu Takemura General Manager -
Page 1 of 2
4.
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 6-1,1-12,1-2,5, provides for the following limitations as
authorized under IC 6-M-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 . A10TF: ThIs question addresses whether the resolution contains an explrattan 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 if an enhanced abatement was
3. Installation of new logistical distribution equipment, Yes ❑ No approved for one or mote ofihese types
4. installatlon of new information technology equipment; ❑ Yes ❑ No
C. The amount of deduction appllcable to new manufacturing equipment is limited to $ cost with an assessed value of
$ . (One or both lines may be filled out to establish a !half, if daslmd.)
D. The amount of deduction applicable to new research and development equipment Is limited to $ cost with an assessed value of
(Ope or hoth lines may be Hired out to establ/sh a 1/mlt, if des/red.)
E. The amount of deduction applicable to new logistical distribution equipment Is limited to $ costwith an assessed value of
$ , (One or bo(h lines may be filled out to estabtlsft a /troll, if desired.)
R The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of
$ . (One or both fines maybe. filled out to establish a llmll, i€desired,)
C% Other iimltatlons or conditions fspecifyj
H. The deductlon for new manufacturing equipment and/or new research and development equipment and/or now logistical distribution equipment and/or
new Information technology equipment installed and first claimed eligible for deduction Is allowed for;
❑ Year 1 ❑ Year 2 U Year 3 C7 Year 4 ❑ Year a ❑ EnhancedfAbatement parIG 64.1-12.148
Numbero years approved:
❑ Year 6 ❑ Year 7 (3 Year 8 ❑ Year 9 ❑ Year 10 (Enter one to twenty (1-20) years; may not
exceed twenty (20) years.)
I. For a Statement of Benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177 [] Yes ❑ No
If yes, attach a copy of the abatement schedule to this form.
If no, the designating body Is requlred 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
detennined that the totality of benefits Is sufftclent to justify the deduction described above,
Approved by; (signature and title ofeutha zed member ofde4gnating body►) Telephone number Date signed (month, day, year)
Printed name of authorized member of deatgneting body Name of dealgnating body
IAttested by: (signature And Oft 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 6-1,1-12,1- tT.
IG 64.142.147
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 4.6
of this chapter an abatement schedule based on the following factors: ,
(1) The total amount of the texpayer'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 Infrastmotufe 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 underthis 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.
M An abatement schedule approved for a particular taxpayer before duly 1, 2013, remains In effect until the abatement schedule expires underfhe teams of the
resolution approving the taxpayers statement of benefits.
Page 2 of 2
Form -SB-1A
City of Richmond, Indiana
TaxpayerWage &Benefit Information
[New Software _ $4 1 $100,000 1 $0
state if the machinery is being purchased or Ieased
Purchased
if the machinery is being leased, provide information from the lease that explains which party is
responsible for paying the property taxes
Not applicable
3. If snaking real estate unprovements, please provide a list that includes the following:
o brief description of the real estate improvement (new construction, rehab, expansion, etc.)
Existing improvements to air conditioning and clean room for Tube pump assembler line.
a size of the proposed real estate improvements
Air conditioning unit (keeping old one as backup)
Height 103 7116 Length 583 l2 Depth 143 112
Clean room for lube pump assembly line
Door Width 12' 0" Door Height 14' 0"
• costs of the proposed real estate improvements
2019
2020
2021
Existing Building Improvements
$533,004
$3 6,000
$0
Company is requesting a waiver of Non. -Compliance regarding the installation date of the new equipment.
and improvements.
DEFINITIONS
I. Average hourly wage for aristing employees: for your most recent pay period please provide the average base
wageper hour for all curent f ill time, nor- sapervism y employees. Igo not include the following groups:
A. parrt tinie errrployees; .
B. management .1 sapervisor�s, f ot•ente>?, or any other strpervisory personnel;
C. owners, stockholders, or partners if they own 2% or snore o, f 'the business, and their- family
meinhers.
2. Average hourly swage foi+ pr-ojected new positions: Use the saute defrnrtion of employees to be inchided as in
number one above.
3. Average hourly health rnswance benefit: Please provide the current cortmpanypaid health insurance benefits
provided to hoxa-ly employees (as defined above) and family members. Please present in the form of an howly
rate computed ising t annual cost per- eligible employee divided by 2080 hotrt s.
�riflf4rg*(MeAPfOkji?r ////S-/z UI
Signature and Title)
0130331.0719297 4842-1025-6294v2
(Date)