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HomeMy Public PortalAbout003-2020 - Tax Abatement - Omen USA - Personal PropertyCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA AMENDED ORDINANCE NO.3-2020 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 5-2019 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 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 -10 YEARS Omen USA Inc. Current Jobs: 134 Jobs Retained: 134 Jobs, Created: 5 Estimated New Value: $4,401,573.00 Dated: January 7, 2020 Passed and adopted this day of 020, by the Common Council of the City of Richmond, Indiana. , President (Ron Oler, Ph.D.) ATTEST. (Karen Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, this/.V day of�-�- ; 2020, at 9:00 a.m. �� (Karen Chasteen, !AMC, MMC) APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this Z -0 - day of 2020, at 9 .9 ► 3 O A *x Mayor M. n ) ATTEST: en Chasteen, IAMC, MMC) p. OY/•Y�✓ A STATEMENT OF BENEFITS 7 PERSONAL PROPERTY State Form 51764 (R4! 11-15) Prescribed by the Department of Local Government Finance INSTRUCTIONS FORM SB-1 / 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 6-1.1-12.1-5.1. 1. 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 Revitalization Area. Otherwise this statement must be submitted to the designating 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 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 must file a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 103-ERA) with the township assessor of the township where the property is 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 and/or research and development equipment and/or logistical distribution 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 due date of that year. 4. Property owners whose Statement of Benefits was approved. must submit Form CF-1/PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 5. Fora 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. 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 6-1.1-12.1-17) o- • Name of taxpayer Name of contact person Omen USA, Inc. Doug Baldwin / Dawn Dick Address of taxpayer (number and street, city. state. and ZIP code) Telephone number 1600 Rich Road, Richmond, IN 47374 (765) 200-6007 Name of designating body Resolution number (s) Richmond Common Council 10-1984; 11-1991; 5-2019 Location of property County DLGF taxing district number 1600 Rich Road, Richmond, IN 47374 Wayne Richmond Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or information technology equipment. (Use additional sheets if necessary.) START DATE COMPLETION DATE Equipment $4,401,573 Manufacturing Equipment 03/16/2020 03/16/2020 See Attached list R & D Equipment Logist Dist Equipment IT Equipment Current number=Salaries Number retained Salaries Number additional Salaries 134716,547 134 $5,716,547 5 $192,400 • ■ • • ■ • -e•• ■ •-• NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT COST of the property is confidential. COST COST COST ASSESSED ASSESSED ASSESSED ASSESSED COST VALUE VALUE VALUE VALUE Current values Plus estimated values of proposed project $4,401,573 Less values of any property being replaced Net estimated values upon completion of project NMI • o ■ ■ e -o ■ Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: Health Insurance is provided for all full time employees at approx $6.56 per hour benefit. I hereby certify that the repre tions in this statement are true. ntyear) Signature of autho ' _ d repr ve Date signe1401A 0 Printed na of authorized resen tiv TitleCl//0 C)a Page 1 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 6-1.1-12.1-2.5, 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 1C 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 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 Mled 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 S . (One or both lines maybe filled out to establish a limit, it 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 maybe filled out to establish a limit, ifdesired) F. The amount of deduction applicable to new information technology equipment is limited to $ cost With an assessed value of S . (One or both lines maybe filled out to establish a limit, if desired.) G. Other limitations or conditions (specify) H. The deduction for new manufacturing equipment and/or new research and development equipment andlor 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 IC 6-1.1-12.1-18 ❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 Number of years approved: (Enter one to 4venty (1-20) years; 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 IC 6-1.1-12.1-177 ❑ Yes ❑ No if yes, allach 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: (signature and title of authorized member of designating body) I Tetphone number Date signed (month, day, year) Printed name of authorized member of designating body I Name of designating body Aftested by: (signature and title of attester) I Printed name of attester if the designating body limits the time period during which an area Is an economic revitalization area, it does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under IC 6-1.1-12.1-17. IC 64.142.1-17 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 terms ofthe resolution approving the taxpayer's statement of benefits. Page 2 of 2 Form SB-11PP, page 2 - NACTP 1585 - software only copyright 02019 DIS, Inc. ClientlLoc 25221.000 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Omen USA; Inc.,1600 Rich Road, Richmond, IN 47374 Contact person: Doug Baldwin i The information requested on this supplement to form SBA must be completed and submitted along with your SBA 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 �A�, $ 20.51 2. Average hourly wage for projected new positions' +�'i� $ •� 3. Average hourly health insurance benefit $ 6.56 1. The length of the abatement you are requesting (A 1-10 year abatement may be requested for real estate improvements and manufacturing equipment.) 10 year abatement 2. If purchasing equipment, please attach a list -that includes the following: see attached • 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 or 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: • brief description of the real estate improvement (new construction, rehab, expansion, etc.) • size of the proposed real estate improvements + costs of the proposed real estate improvements. DEFINITIONS 1. Average hourly wage for existing employees: for your most recent pay period please provide the average base wage per hour for all current full time, non -supervisory employees. Do not include the following groups: A. part time employees; B. management, supervisors, foremen, or any other supervisory personnel; C. owners, stockholders, or partners if they own 2% or more of the business, and their family members. 2. Average hourly wage for projected new positions: Use the same definition of employees to be included as in number one above, 3. Average hourly health insurance benefit: Please provide the current. company paid health insurance benefits provided to hourly employees (as defined above) and family members. Please present in the form of an hourly rate computed using the annual cost per eligible employee divided by 2080 hours. yl /1 LA Title) (Date)