The URL can be used to link to this page

Home My Public Portal About013-2010 - Tax Abatement - JM Hutton - equipment.exhORDINANCE NO. 13-2010 A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-1.2.1 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 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 is also entitled to deductions from the assessed value, pursuant to Indiana Iaw, 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 listed 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: $201,471.50 Dated: February 8, 2010 Passed and adopted this day of X� , 2010, by the Common Council of the City of Richmond, Indiana. President ATTEST PRESENTED to the Mayor of the City of Richmond, Indiana, this day of at 9.00 a.m. (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of 2010, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTE T: (Karen Chasteen) UiZ-o STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 (R 11-06) Prescribed by the Department of Local Government Finance r. - ED FEB 0 8 ]0 INSTRUCTIONS: FORM SB-1 i PP PRIVACY NOTICE The cost and anyspecific indimuel's salary irriermation is confidential; the batance of the fling is public record tC 6.1.1-12.1-5.1 c and d . 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 whetherto designate an Economic Revitalization Area_ Otherwise this statementmust be submitted to the designating bodyBEFOREa person installs the newmanufacturing equipment and/orresearch 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, 1987, and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (iC 6-1.1-1z 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 fife a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 103-ER4) with the township assessor of the township where the property is situated. The 103-ERA must be filed between March i 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 h7ing extension has been obtained. A person who obtains a filing extension must fife 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(t) and (g)) •' 1 TAXPAYER INFORMATION Name o€taxpayer J. M. Hutton & D Re Co., Inc. e&A— e N V� Address of taxpayer (numberand street, city, state. and zipcode) 1501 South 8th Street, Richmond, IN 47374 Name of contact person Telephone number Richard E. Jeffers I I (765) 962-3591 SECTION• • AND DESCRIPTION OF -•-• r 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 and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or information technology equipment. START DATE COMPLETION DATE (use additional sheets if necessary) Manufacturing Equipment 03/01/2010 02/01/2011 See Attached R & D Equipment Logist Dist Equipment IT Equipment 03/01/2010 02/01/2011 SECTIONOF a AND SALARIES AS RESULT OF -.-• PROJECT Current number 5ataries Number retained. Salaries 5ataries tNumberaddifional 86 3,500'000.00 86 3,500,000.00 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 R g, D EQUIPMENT LOGIST. DIST IT EQUIPMENT EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSES D COST ASSESSED COST ASSESSED ��D VALUEVALUE DCOST Current values 5.111I.W.00 1,2W,206.00 Plus estimated values of proposed project jp,eW.W 64,0W.00 30.o0o.oa 10,000.00 Less values of any property being replaced I Net estimated values upon completion of project i s29i sw oo tM9,2e6.00 13000000 10,0W.0o SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION hereby cerft Ittat the representations in this statement are true. Signature o#authorized repress Tdie � Dare (rr�ntk 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 �e s ❑ N o 2. Installation of new research and development equipment; ❑ Yes [g" o 3. Installation of new logistical distribution equipment. El ye s PKo 4. Installation of new information technology equipment; B r e s ❑ N o C. The amount of deduction applicable to new manufacturing equipment is limited to $ . SD 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 $ Q cost with an assessed value of G. Other limitations or conditions (specify) j Aox& da9i' %e �C otmti�,�e t� -zavo H. The deduction for new manufacturing equipment andlor ew re and developmen egt*iipment 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 ERKs established prior to July 1, 2000, 9WI a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 8 years ❑ 4 years ❑ 8 ears El 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. Approved: (signal prized member) Telephone number Date signed (month, day, year) Attested by r U 0 --.1 1 ted body IV f " If the deggnating 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 81" 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 SB-1 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 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. (Authorized Signature and Title) - ; J. M. Hutton & Co., Inc. Application for Manufacturing Equipment Abatement Schedule of anticipated purchases Description A' Used laser -k- Used crane Air Compressor, Installation and plumbing (used) Manufacturing supporting computers/technology (new) Date of Cost Installation 4/1/2010 $ , 0.00 dt1Y7 57(o.6a 4/1/2010 $j4,008.8fl' * Tot Bf 4/1/2010 $2L Qe8-M 4 is, -III Life Purchased Expectancy From 20 years Within the state of Indiana 20 years Within the state of Indiana 10 years 4/1/2010 $30,000.00 10 years Total cost of equipment 0 abatement application Aol, y-71. SD All purchases will be reported on the tax rolls (personal property tax returns) for greater than 10 years Within the state of Indiana Within the state of Indiana Charged hne .AAA W� P�ic.�r�f - .� roo4ew%eot ao»1wtt #G� C .S itr