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HomeMy Public PortalAbout021-2010 -Tax Abatement - Transilwrap Co Inc - equipment.exh.ORDINANCE NO. 21-2010 A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 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 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 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 listed in the SB-I. 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. S. That the totality of the benefits is sufficient to justify the deduction. 6. That installation of the equipment described in the SB-I 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 TI3EREFORE, 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: EQIMNIENT —10 YEARS Transilwrap Co., Inc. Jobs Retained: 123 Jobs Created: 10 Estimated New Value: $2,474,244.00 Dated: May 14, 2410 Passed and adopted this _ day of 2010, by the Common Council of the City of Richmond, Indiana. President Q. Clayto Mi er) ATTE T: (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this day of 2010, at 9:00 a.m. (Karen Chasteen) ?&FRVVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of 2010, at 9:05 a.m. ayor or (Sarah L. Hutton) ATTEST: (Karen Chasteen) STATEMENT OF -BENEFITS FORM PERSONAL PROPERTY 5' j'j-!0 SB -1 I PP +y State Form 51764 (5-04) Prescribed by the Department or Local Government Finance INSTRUCTIONS, i_ 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. Projects" planned or committed to after July 1, 1987 and areas designated after July 1, 1987 require a STATEMENT OF BENEFITS. (IC 6-1.1-12.1) 2. Approval of the designating body (City Council Town Board, County Council, etc_) must be obtained prior to installation of the new manufacturing equipmenf . 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, Form 322 ERA/PPME and/or Fort 322 EPA/PP Other, must be filed with the county auditor. Form 322 ERA/PPME and/or Form $22 ERA/PP Other 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 becomes assessable, unless a filing 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 annually to show compliance with the Statement of Benefits. (iC 5. The schedules established under 1G 6-1.1-12.1-4(d) and 1C 6-1.1-12.1-4.5(e) effective July 1, 2000 apply to any statement of benefits filed on or after July 1, 2000. The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000. SECTION• • Name of taxpayer 14 Address of taxpayer (street and umber, city, stale and ZIP code) Name of con rs ,—, Telephone number SECTIONYE • • AND DESCRIPTION OF cos•• i PROJECT Name of designating body Resolution.number Location of property County/ l Taxing district l/�� 4� Description of manufacturing equiprrient 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 Dale Manufacturing Equipment /� v J %L/ %�� C _ d / iX �iG�t 6v�r< f /�7v/Ti� ytr S�t�L��1r/l�fia� L� ^ G %nr✓✓��Sv-aGi M /'rG S/Aee-C— !f4,Ar6 Gofer R&D Equipment ,X X 12- 0 POD' S %S� />7 Logist Dist Equipment' CAGf1 ZIA�, 1,wj(e.-t,� A..", IT EquipmentSECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT C_ urrent number Sai:i P_S Dumber retained Salaries Number additional Bafanes Z3 SOD, O06 % SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the Mane p tueni 9 R & D Equipment �Logist Dist Equipment` it Equipment' COST of the property is confidential. CastAssessed Cost AssValue essed Cost �I�� Cost v�� Current values Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion -of project ZOO, (iG SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) p/a' -e( G,77 Estimated hazardous waste converted (pounds) _ Other benefits: SECTION hereb ce that the representations in this statement are true. ignature of authorized representative ]Title Date signed (month, day, year) See IC 6-1.1-12.1-2.3, v,e N� vit in !' rGh�b�/r .Ilt ",5:,4fr,_0 �fr l r� C CGS I'��c l +�✓i iPr'�'�2- �a/Cl 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, pro- vides for the following limitations as authorized under IC 5-1.1-12.1-2. 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: ❑ Yes •❑ No 1. Redevelopment or rehabilitation of real estate improvements; 2. Residentially distressed areas ❑ Yes ❑ N o C .The amount of deduction aDolicable for redevelopment or rehabilitation is limited to $ cost with an assessed value of $ D. Other limitations or conditions (specify} Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: (signature title of authorized member) Telephone number Date signed (month, day, year] . _lx ID Attes y_ Designated body . z- * If the designating body limits the time period daring 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. Form SB-lA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: 71 . "5' /41�1`� �ti ��l,,.r• RIC6—1 The information requested on this supplement to form SB-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 2. Average hourly wage for projected new positions 3. Average hourly healtmsurance benefit /r�"� /a���� fro -�, � `�• Dd 5��.f.,: f`.2 A >) -- 1. The length of the abatement you are requesting / 0 (A 1-10 year abatement maybe 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 3. If making real estate improvements, please provide a fast 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 DEFEMIONS 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 cmrentrompany paid health insurance benefits provided to hourly employees (as defined above) and family members. Please present in the form of aril X6urly rate computed using the annual cost per eligible employee divided by 2080 hours. Signature (Date) 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, pro- vides 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; t� Yes ❑ N a 2, Installation of new research and development equipment; Yes ❑ No 3. Installation of new logistical distribution equipment. ❑ Yes ❑ No 4. Installation of new information technology equipment; Cp Yes ❑ No - t C . The amount of deduction applicable to new manufacturing equipment is limited to $ i� �� cost with an assessed value of $ Q.The amount of deduction applicable to new research and development equipment is limited to $ an assessed value of $ E. The amount of deduction applicable to new logistical distribution equipment is limited to $ assessed value of $ F. The amount of deduction applicable to new information technology equipment is limited to $ assessed value of $ G. Other limitations or conditions cost with cost with an cost with an K 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 after July 1, 2000 is allowed fov ❑ 1 year ❑ 6 years " For ERA's established prior to July 1, 2000 only a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. 1113 years ❑ 8 years © 4 years 9 ears ❑ 5 years '* �❑ t 1 0 years ** Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have dj�z fined that the totality of benefits is sufficient to justify the deduction described above. A : (;j I�aufhofizeder) Telephone number Gate signed { onth, day, year) tteste A �� designated body the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of a taxpayer is entitled to receive a deduction to a number of years designated under IC 6-1.1-12.1-4_5 Transilwrap Sheet Line ( Line 17 } $1,366,675 Co -Extruder $45,500 -Maxson Sheeter $42%900 Cortina Treater $71,555 Pallet Flipper $21,800 2 Silos with a Cement pad $61,780 Conair Equipment / Raw Material handling $130,000 Parts and Supplies for Line 17 $15,000 Installation $50,000 Estimated Shipping & insurance $15,000 Extruder Line ( Line 18 $150,000 Oven $30,000 Line 18 master roll racking $12,000 Parts and Supplies for Line 18 $15,000 Shipping Cost & Rigging $35,000 Maintanace Mezzanine $25,034 Total $2,474,244 STATEMENT OF -BENEFITS PERSONAL PROPERTY ey State Form 51764 (5-04) Presrnbed by the Department of focal Government Finance FORM SB-11PP 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 malting 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 andlorinformaton 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. (1C 6-1.1-12. f) Z 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 andlor logistical distribution equipment and/or information technology equipment BEFORE a deduction may be approved 3. To obtain a deduction, Form 322 ERA/PPME and/or Form 322 ERA/PP Other, must be filed with the county auditor. Form 322 ERA/PPME and/or Form 322 ERA/PP Other 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 becomes assessable, unless a filing 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 orBenefrts was approved after June 30, '1991 must submit Form CF-1 annually to show compliance with the Statement of Benefds_ {1C S-i.1-i2.1-5.ti} S. The schedules established under iC 6-1.1-12.1-4(d) and 1C 6-1.1-12.1-4.5(e) effective July 1, 2000 apply to any statement of benefits filed on or after July 1, 2000. The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits filed before July 1_2000. Name of taxpayer Address of taxpayer (street and umbar/city, shde and ZIP code) Sates ( �r h a fr�,s�doW Name of con rso Telephone number •) 0 Name of designating body Resoltfion.number Location of property County Taxing district Gf as 4av� �� /!e Description of manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment ESTIMATED (use additional sheets if necessary) '� / StartDateCompletion Date j( I7rrrCj-'6:110p jM,./Ti1c'11 S��G l�`11�frc"� 4i^C Manufacturing Equipment: quipment Jci / r✓L/ (% l Cl / x /n r� ti 5��{Gi i� L7n S % r� 14C %G.4 T� C ff f R & D Equipment 2x /ZoIUGDS'/vs _/tl�IfP/� s�Pp�r f elr.,dnrn� Logist Dist Equipment' / it GIX r� fl�ry <✓�G7 /r1 LIn �C �/u'ls �1rG� �fPrv. � ldGlif to l IT Equipment' Current number Number retained Sal Ties Number additional Salaries / z3 ��dU, Oors JZ3 ��o /O � zJ, ao z� NOTE: Pursuant to IC 6-IA-112.1-5.i (d) (2) the F4anufarxurirrg R & D Equipment L COST of the o e Equipment ngist Dist Equipment • rr Equipment pr p rly is confidential. Cost Assessed Vie Cost �d Cost Assessed Value Cost Assessed Current values fir,./ 02 V3 /% 7/ Pius estimated values of proposed project Less values of any property being replaced Net estimated values upon comntPtk., of nrni—t r� Estimated solid waste converted (pounds) d�d �C G !I41 Estimated hazardous waste converted (pounds) Other benefits: ,ignature of representative the representations in this statement are true. signed See IIIC� 6.1.1-12.1-2.3. or 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, pro- vides 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; _ l�7 Yes ❑ N o 2. Installation of new research and development equipment, ❑ Yes`'© N o 3. Installation of new logistical distribution equipment. ❑ Yes i] No 4, Installation of new information technology equipment; ❑ Yes U No h C . The amount of deduction applicable to new manufacturing equipment is limited to $ �1� e�� cost with an assessed value of $ D .The amount of deduction applicable to new research and development equipment is limited to $ an assessed value of $ E. The amount of deduction applicable to new logistical distribution equipment is limited to $ assessed value of $ F. The amount of deduction applicable to new information technology equipment is limited to $ assessed value of $ G. Other limitations or conditions cost with cost with an cost with an 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 after July 1, 2000 is allowed for: ❑ 1 year ❑ 6 years ** For ERA's established prior to July 1, 2000 only a ❑ 2 years ❑ i years 5 or 10 year schedule may be deducted. ❑ 3 years D 8 years ❑ 4 years C7 9ears ❑ 5 years " 0 years Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have de—tQ(mined that the totality of benefits is sufficient to justify the deduction described above. A : (' rn re a title of authorized member) Telephone number Date signed ( onth, day, year) rrPctP Designated body the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of a taxpayer is entitled to receive a deduction to a number of years designated under 1C 6-1.1-12.1-4.5