HomeMy Public PortalAbout022-2020 - Abatement - Element 13 LLC - Manufacturing EquipmentCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO.22-2020
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 WITH ALTERNATIVE
ABATEMENT DEDUCTION SCHEDULE
WHEREAS, The Common Council of the City of Richmond, Indiana, 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, 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, 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, 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 the Common Council to approve a Statement of Benefits to allow a
standard 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
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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 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.
WHEREAS, On March 19, 2018, the Common Council approved an ordinance establishing an
alternative abatement deduction schedule pursuant to IC 6-1.1-12.1-18, known as
Ordinance No. 17-2018, in order that a business that receives a deduction under IC 6-
1.1-12.1-4.5 may apply for the alternative deduction, provided that said business
provide proof of applicable justification for the requested deduction meeting the
following criteria:
1. Alternative abatement deduction schedule of 75% for 10 years if all of the
following requirements are met:
a. $5,000,000 minimum investment, and
b. A minimum of thirty (30) new full-time employees are hired and maintained,
and
c. Wages paid to new employees must pay 50% above the state minimum wage,
and
d. Major medical health insurance is provided to all full-time employees, and
e. All improvements and new hires must be completed within three years of the
date of the signed ordinance approving the Statement of Benefits for a business,
and
f. Failure to meet any of the requirements outlined in a. through e. above shall
require that the alternative abatement deduction schedule revert to the standard ten
(10) year abatement deduction schedule outlined in IC 6-1.1-12.1-4d(10) for real
estate improvements and IC 6-1.1-12.1-4.5d(10) for personal property beginning
with the number of years remaining for the abatement (for example, if a personal
property abatement is in its 6th year, the final four years' deductions would be 40%,
30%, 20% and 10%, respectively).
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2. Additionally, if the minimum conditions outlined in #lb., #lc., and #ld. above are
met, increase the alternative abatement deduction described above by 5% if the
business invests a minimum of $10,000,000 or by ten (10%) percent if the business
invests a minimum of $15,000,000.
3. If the minimum conditions outlined in #la., #lc., and #Id. are met, the Richmond
Common Council may increase the alternative abatement deduction described
above by 5% if the business adds a minimum of fifty (50) new employees, or by
ten (10%) percent if the business adds a minimum of one hundred (100) new
employees.
4. If the minimum conditions outlined in #la., #lb., #lc., and #ld. above are met,
increase the alternative abatement deduction described above by 5% if the business
pays at least two and one-half (2.5) times the state minimum wage for new
employees hired.
The percentage increases described in 42, 43, and #4 above are independent of each
other. As such, a qualifying applicant could possibly achieve a one hundred
(100%) percent deduction.
6. Richmond Common Council may decrease the alternative abatement deduction by
5% for every $250,000 of additional taxpayer assistance (any government level)
provided to the business.
7. A business requesting an alternative abatement deduction schedule shall provide a
letter requesting an alternative abatement deduction schedule and shall provide
proof of the applicable justification with the standard application materials.
NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond,
Indiana, that the Common Council 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
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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.
NOW THEREFORE, be it also ordained by the Common Council of the City of Richmond,
Indiana, that the following property owner meets the requirements for property tax assessed valuation
deductions, as follows:
MANUFACTURING EQUIPMENT — 10 YEARS
Element 13, LLC
Current Jobs: 0
Jobs Retained: 0
Jobs Created: 30
Estimated New Value: $13,200,000.00
Dated: March 16, 2020
NOW THEREFORE, be it also ordained by the Common Council of the City of Richmond,
Indiana, that in accordance with criteria #7 as listed on the alternative abatement deduction schedule,
the above -listed property owner has provided a letter requesting an alternative abatement deduction
schedule, has requested a ninety percent (90%) deduction for ten (10) years, and has provided proof of
the applicable justification to show that the property owner has met the following applicable criteria:
A. The investment will exceed the $5,000,000.00 minimum investment
requirement in accordance with criteria #la.
B. A minimum of thirty (30) new full-time employees are hired and maintained in
accordance with criteria #lb.
C. Wages paid to new employees must pay 50% above the state minimum wage
in accordance with criteria #lc.
D. Major medical health insurance is provided to all full-time employees in
accordance with criteria #ld.
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E. All improvements and new hires will be completed within three (3) years of
the signed ordinance approving the Statement of Benefits in accordance with criteria #le.
F. The wages paid to new employees will exceed two and one-half (2.5) times the
state minimum wage in accordance with criteria # 1 a., # 1 b., # 1 c., # 1 d., and #4 to permit the
outlined additional five percent (5%).
G. The investment will exceed the $15,000,000.00 minimum investment
requirement in accordance with criteria #2 to permit the outlined additional ten percent (10%).
NOW THEREFORE, be it also ordained by the Common Council of the City of Richmond,
Indiana, that the above -referenced property owner may receive the requested ninety percent (90%)
deduction for the ten (10) year period.
Passed and adopted this _day of� 2020, by the Common Council of the City of
Richmond, Indiana.
Re.� ezz_- , President
(Ron Older, Ph.D.)
ATTEST:
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this Z_ day of/ -L 2020, at
Y tY Y
9:00 a.m.
(Karen Chasteen, IAMC, MMC)
APP OVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this _06 day of
2020, at $ m-T . r,' 30q.,, 7
ayor
:';(ffa_:vid M. gn
ATTE T:
(Karen Chasteen, IAMC, MMC)
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