HomeMy Public PortalAbout061-2019 - Tax abatement - TBK Amerca - IT equipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
AMENDED ORDINANCE NO, 61-2019
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, Y.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- 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, 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 S B-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:
INFORMATION TECHNOLOGY EQUIPMENT — 2 YEARS
TBK America, Inc.
Current Jobs: 98,
Jobs Retained: 98
Jobs Created: 5
Estimated New value: $100,000.00
Dated: November 15, 2019
Passed and adopted this day of , by the Common Council of the
City of Richmond, Indiana..
President
(Gary T
ATTE
(Karen Chasteen, IAMC, MMC)
-!�v
PRESENTED to the Mayor of the City of Richmond, Indiana, this day o 0+9;7
at 9:00 a.m.
,City Clerk
(Karen Chasteen, IAMC, MMC)
,,APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this Q �� day of
)AA v ,2019,at f�
, Mayor
�. Sno�
ATTE
(Karen Chasteen, IAMC, NIlVIC)
STATEMENT OF BENEFITS
PERSONAL PROPERTY
State Form 61764 (R4111-16)
Prescribed by the Department of Local Government Finance
FORM SB41 PP
PRIVACY NCYICE
�yInthe
information concerning the cost
property and specific salaries pald
to individual employees by the property
owner is confidential per IC B-L i-12A.5.1.
INSTRUCTIObIS
�. 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 Revllaiizailon Area. Otherwise this statement must be
submitted to the designating body BEFORE a person installs the new manufacturing equipment andlor research and development equipment.. andlor
logistical distrfbu#tan equipment andlor Information technology equipment for which the parson wishes to claim a deduction.
2. The statement of benefits form mast be submitted to the designating body and the area designated an economic revitalization area before the installation
of qualifying abatable equipment for which the parson desires to claim a deductlon.
3. To obtain a deduction, a person must file a ced/fled deduction schedule with the persons personal properly return on a certifled deduction schedule
(Forma 103-ERA) with the township assessor of the township where the prop arty is situated or with the county assessor ff 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 distdbutlon equipment andlor Information technology equipment is installed and fully
functional, unless a thing 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.
4. Property owners whose Statement of Benefits was approved, must submit Farm CF-11PP annually to show compliance with the Statement of Benefits.
(IC 6-1.1-12.1-6.6)
5. For a Form SB-1/PP that is approved after June 30, 2013, the designating body Is required to establish an abatement schedule for each deduction allowed.
Fora Form SB-1fPP that is approved prior to July 1, 2013, the abatement schedule approved by the desfgne#1ng body remains In effect, f1C 6-T.1-12.1-171
TAXPAYERSECTION I ■ +
flame of taxpayer contact peman
TBK America, Inc. Tomokazu Takamura
Address of taxpayer (number and stnset, city state, and ZIP code)
Telephone number
3700 W. industries Rd., Richmond, IN 47374
( 765 ) 962_0147
SECTION 2 LOCAT(ON AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
City of Richmond
Location 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
andlor logistical distributlon equipment andlor Information technology equipment,
ESTIMATED
(Use additional s eta If ecessa j
START DATE COMPLETION DATEConstruction
.
olhody Ce, piney line, and related improvements, which Include Manufacturing Equipment
0110112019 1 2!3 1 /2021
a case line, 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/ Logist Dist Equipment
automated measurement and runout.
IT Equipment
01101/2019 1213112021
SECTION+ OF * i AND + + AS OF PROPOSED PROJECT
Current number Salaries Number retained salaries Number additional Salaries
98 23.97 98 23.97
5 U-50
VALUESECTION 4 ESTIMATED TOTAL COST AND PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LCOIST DIST IT EQUIPMENT
E U MEN E 11IPME T
COST of the property Is confidential. CAST ASSESSED CAST ASSESSED CAST
VALUE VALUE
ASSESSED COST ASSESSED.
VALUE VALUE
Current values
t1
t
Plus estimated values of proposed prejeet
'� ,�
el
Less values of anj propeqbeing replaced
Net estimated values upon completion of project I 2,518,971
100,000
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
er ben W
of applicable.
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations In this statement are true.
Signature of ea orized s five
Date signed onth, day, year
! {' Iz -e
Printed name of audiadzed representative
We
Tomokazu Takamura
General Manager
Page rI of 2
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 5-1.1-12.1-2.5, provides for the following limitations as
authorized under lC 6-1.1-12.1-2.
A. The-deslgnated area has been limited to a period of time not to exceed calendar years * (see below). The date this designation expires
Is .�, . , . hIOTE. This question addresses whether the resolution contelos are exp1rallon 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 E] No
approved for one or more of these types
4 . Installation of new information technology equipment; ❑ Yes ❑ N a
C. The amount of deduction applicable to new manufacturing equipment is limited to $
cost with an assessed value of
$ . (One or both 11nes maybe fil/ed out to establish a limit, 1f 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 11rres may be 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 bo(h lines may be filled out to establish a limit, If desired.)
F. The amount of deduction applicable to new information technology equipment Is limited to $
cost with an assessed value of
$ . (One at both lines may be filled out to establish a limit, if desired,)
G Other Iimitations or conditions (specify)
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 ellglble for deduction Is allowed for:
❑ Year 1 ❑ Year 2 U Year 3 Q Year 4 CQ Year 5 ❑ Enhanced Abatement per IC 6-1.1-12.1 48
Number of years approved:
Q Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 !Enter one to twenty (120) years; may not
exceed twenty (20) years
I. For a Statement of Benefits approved after June 30, 20'I3, did this designating body adopt an abatement schedule per lC 6-1.1-12.1-'17? ❑ Yes ❑ No
1f 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: (signature and Mlle of authorized member of dodgneting body) Telephone number Date signed (month, day, year)
Printed name of authodzed member of designating body Name of designating body
Attested by: (signatwe and Me ofaftester)
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 ilrne 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.
10 8-1.1-12.14
Abatement schedules
Sec.17. (a) A designating body may provide to a business that Is established In or relocated to a revitallzatlon 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-ume 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, 20M 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 underthe terms of the
resolution approving the taxpayer's statement of benefits,
Page 2 of 2
Form SB-1A
City of Richmond, Indiana
Taxpayer 'image & Benefit Information
[New Software Iso ]F-$100'000 I -so -
a state if the machinery is being ' purchased or leased
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 making real estate improvements, please provide a list that includes the following:
•. brief description of the real estate improvement (new construction, rehab, expansion, etc.)
Existing unprovements to air conditioning and clean room for tube pump assembly line.
• size of the proposed real estate improvements
Air conditioning unit (keeping old one as backup)
Height 103 7116 Length 583 Y2 Depth 143 1/2
Clean room for tube pump assembly line
Door Width 1210" Door Height 14" 0"
• costs of the proposed real estate improvements
2019 2020 2021
Existing Building Improvementss $533,000 1 $36,000 $0
Company is requesting a Waiver of Non -Compliance regarding the installation date of the new equipment
and improvements. -
DEFINITIONS
1. Average hourly wage for existing employees: for j1our feast recent pay period please provide the average base
wage per hour for- all cw-r*ent fztll time, non super vi lsory employees. Do not include the following groups:
A. pant time woployees;
B. nfanagernent, supervisors, for•enten, or any other- supervisory personnel;
C. owners, stockholders, or partners if they own 2% or more of the business, and their fwn ly
members.
2. Average hourly wage for projected new positions: Use the sarne definition of employees to be included as in
number one above.
3. Average hourly health insurance benefit: Please provide the current corrtpanypaid health insurance benefits
provided to hourly employees (as defined above) and family member-s. Please present in the forrrr of an hourly
gate computed rsing t annual cost per eligible employee divided by 2080 hours.
////S U�
CA-uCiorizecfSignature and Title) (Date)
0130331-0719297 4842-1025-62902