HomeMy Public PortalAbout005-2010 - Tax Abatement - JM Hutton - equipment.exhORDINANCE NO. 5-2010
A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A
STATEMENT OF BENEFITS FOR A PROPERTY OWNER
APPLYING FOR DEDUCTIONS UNDER T.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 fled by property owners applying for
deductions in assessed valuations for the installation of new manufacturing
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 (i 0) years (i.e. one to ten years); and
WHEREAS, an owner of new manufacturing 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 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, 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.
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.
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.
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 Iisted in the SB-1.
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, 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.
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.
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.
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 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:
EQUIPMENT —10 YEARS
. J. M. Hutton & Co., Inc.
Jobs Retained. 86
Jobs Created: unknown
Estimated New Value: $210,000.00
Dated: February 8, 2010
Passed and adopted this day of 2010, by the Common
Council of the City of Richmond, Indiana.
(CIay Miller)
ATTEST: , City Clerk
(Karen Chasteen)
President
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of
, 2010, at 9:00 a.m.
City Clerk
(Karen Chasteen)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of
, 2010, at 9:05 a.m.
(Sarah L. Hutton)
ATTEST: , City Clerk
(Karen Chasteen)
Mayor
STATEMENT OF BENEFITS
PERSONAL PROPERTY
•� B State Form 51764 (R 11-06)
'°'• Prescribed by the Department of Local Goverment Finance
FCEIVED FEB 0 8 2010
FORM SBA 1 PP
PRIVACY NOTICE
The cost and any specific individual's
Wary information is confidential; the
balance of the filing is public record
r IC 6-1.1-12.1-5.1 c and d .
INSTRUCTIONS:
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/orlogistical distribution
equipment and/or information technology equipment for which the person wishes to claim a deduction. Projects" planned or committed to after July 1, 1967,
and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (IC 6-1.1-12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manufacturing equipment
and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment BEFORE a deduction may
be approved
3. To obtain a deduction, a person must rite a certified deduction schedule with the person's personal property retum on a certified deduction schedule (Form
103-ERA) with the township assessor of the township where the property is situated. The 103-ERA must be filed between March 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 Sling extension has been obtained A person who obtains a filing extension must
file the form between March 1 and the extended due date of that year.
4. Property owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF-1 / PP annually to show compliance with the
Statement of Benefits. (iC 6-1.1-12.1-5.6)
5. The schedules established under IC 6-1.1-12.1-4.5(d) and (e) apply to equipment installed after March 1, 2001_ For equipment installed prior to March 2,
2001, the schedules and statutes in effect at the time shall continue to apply. (IC 6-1.1-12.1-4.5(o and (g))
SECTION•-
r
Name of taxpayer J. M. Hutton & Co., Inc. OeDA-
9e=q%ji
Address of taxpayer (numbarand street city, state, and ZIPcode)
1501 South 8th Street, Richmond, IN 47374
Name of contact person
Telephone number
Richard E. Jeffers
(765) 962-3591
SECTION 2 LOCATION AND DESCRIPTION
OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
Richmond City Council
Location of property
County
DLGF taxing district number
751 South O Street, Richmond, IN
Wayne
Description of manufacturing equipment andlor research and development equipment
and/or logistical distribution equipment and/or information technology equipment.
(use additional sheets if necessary)
ESTIMATED
START DATE
COMPLETION DATE
Manufacturing Equipment
03/01/2010
02/01/2011
See Attached
R & D Equipment
Logist Dist Equipment
IT Equipment
103/01/2010
02/01/2011
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESULT OF PROPOSED PROJECT
Current number salaries Number retained
Salaries Number additional Salaries
86 3,500,000.00 1 86
1 3,600,000.00 0
3,500,000.00,
SECTION 4 ESTIMATED TOTAL COST AND VALUE
OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 d) (2) the
(
MANUFACTURING
EQUIPMENT
R & D EQUIPMENT
LOGIST DIST IT EQUIPMENT
EQUIPMENT
COST of the property is confidential.
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
COST
I ASSESSED COST
VALUE
ASSESSED
VALUE
Current values
5,111,546.00
1,285,286.00
Plus estimated Values of proposed project
180,000.00
54,000.00
30.000.00
10,000.00
Less values of any property being replaced
Net estimated values upon completion of proj
130,000.00
10,000.00
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS
PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits:
SECTION•
I hereby certify Ihat the representations in this statement are true.
Signature of authorized represe
Title ��
Datesigned (m th, day, year)
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
B . The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment; ❑Yes ❑ N o
2. Installation of new research and development equipment; ❑Yes ❑ N o
3. Installation of new logistical distribution equipment. ❑Yes [:]No
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
D. The amount of deduction applicable to new research and development equipment is limited to $ cost
with an assessed value of $
E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of
F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of
$
G. other limitations 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 eligible for deduction on or after July 1, 2000, is allowed for:
❑ 1 year ❑ 6 years "* For EI2As established prior to July 1, 2000, only a
❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted.
❑ 3 years ❑ 8 years
04 years ❑ 9 years
❑ 5 years "* ❑ 10 years *'
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.
member)
Telephone number
Designated body
Date signed (month, day, year)
' 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 6-1.1-12.1-4.5
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit information
Company Name, Address & Contact Person: J. M. Hutton & Co., Inc.
1501 South 8th Street
Richmond, IN 47374
Richard E. Jeffers
The information requested on this supplement to form S13-1 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 $ 16.00
2. Average hourly wage for projected new positions $ 14.00
3. Average hourly health insurance benefit $ 6.00
1. The length of the abatement you are requesting See Attached
(A 1-10 year abatement may be requested for real estate improvements and manufacturing
equipment)
2. If purchasing equipment, please attach a list that includes the following:
• 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
a
0
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.
Average hourly wage for projected new positions: Use the same definition of employees to be
included as in number one above.
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.
Signature and Title) s
J. M. Hutton & Co., Inc.
Application for Manufacturing Equipment Abatement
Schedule of anticipated purchases
Description
Date of
Cost
Life
Purchased
Installation
Expectancy
From
Used Laser
4/1/2010
$140,000.00
20 years
Within the state of Indiana
Used crane
4/1/2010
$14,000.00
20 years
Within the state of Indiana
Air Compressor, Installation
and plumbing (used)
4/1/2010
$26,000.00
10 years
Within the state of Indiana
Manufacturing supporting
computers/technology
4/1/2010
$30,000.00
10 years
Within the state of Indiana
(new)
Total cost of equipment
$210,000.00
abatement application
All purchases will be reported on the tax rolls (personal property tax returns)
for greater than 10 years