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HomeMy Public PortalAbout053-2010 - Tax Abatement - Perpetual Recycling Solutions - equ.ORDINANCE NO. 53-2010 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-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. 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 Perpetual Recycling Solutions, LLC Jobs Retained: NIA Jobs Created: 55 Estimated New Value: $16,000,000.00 Dated: October 19, 2011 LOGISTICAL DISTRIBUTION EQUIPMENT— 10 YEARS Perpetual Recycling Solutions, LLC Jobs Retained: N/A Estimated New Value: $1, 500,000.00 Dated: October 19, 2011 INFORMATION TECHNOLOGY EQUIPMENT —10 YEARS Perpetual Recycling Solutions, LLC Jobs Retained: NIA Estimated New Value: $400,000.00 Dated: October 19, 2011 Passed and adopted this day of , 2010, by the Common Council of the City of Richmond, Indiana. ATTEST: Chasteen) . Clayton Miller) President PRESENTED to the Mayor of the City of Richmond, Indiana, this day of 0 0, at 9:00 a.m. 41 rk (Karen Chasteen) APPROVED by me Saro L. Hutton, Mayor of the City of Richmond, Indiana, this day of , 2010, at 9:05 a.m. x " Mayor (Sarah L. Hutton) A STATEMENT OF BENEFITS PERSONAL PROPERTY State Form 51764 {R , i -W ) Prescribed by the Department of Local Government Finance CORM S11-11 PF PRIVACY N0110E Tare cost" a;+g speu!ic;rid v dual's [j salary rfo ma; ar tie conitdentisl; U e , f t}alance of lne ;;Ting Is t�ibt� retcxC l par€C6-i,i-i2..9-5.i (C18natdl.____i INSTRUCTIONS: 1• This statement must be submitted to the body designating the Economic Revitalization Area error 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 t;vs statement most be submitted to the dasignaVng body BEFORE a person insialfs the new manufacturing equipment and,1(y research and dayslopmen£ aquipment, andlor logistical dfstnbution equipment andlor infarrnatfon tachnology equipment for which the person wishes to claim a deducticn. "Protects"planned ar committed to otter duty 1, 7987, and areas designated after July f, 1987, ; equire a STATEMENT OF BENEFITS. 2. Approve; of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to "' talfation of the new manufacturing equipment andlor research and devolopmentequipment andlor logistical dislnlxruon equipment andlor information technology equipment. BEFORE deduction may be approved 3, To obtain a deduction, a person must fife a certified deduction schedule with !fie person's personal properly return or, a certified deduction schedule (Form 103-ERA) with the township assessor of the township where the property is situated. The 103-ERA must be fried between lVarch i and May 18 of the assessment year in which new manufacturing aquipment andlor research and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional, unless a fitirg extensio., has been obtained. A person who obtains a filing extension must rile the form between March f and the extended due date of that year. 4. Property owners whose Statement of Benefits was approved after June 30, f991, risJSt submit Form CF-1 /PP anr;uaffy to show cornpl;ance with the Statement ofBenefBs, 5. The schedules established under IC S ?. i-12.7 4.8!dj and (e) apply :o equipment nstaled after ifarclr f, 20G4. For equ pmert installed prior to March 2, 2001, the schedules and statutes in effect at the time sllaf7 continue to apply. SECTION- INFORMATION i Name of taxpayer t A�cdress of taxpayer trwmber 9nd street, tits; state, and {7�fPcode) p dame of contact parson T ; Talephone mrrberr t �7 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body , Resolution numbs; e {s} _ DLGF lazing L�Wel numberr Gou La olio r of prcpetty : 5 � i P'V t �' 5k , �,� � r, K e _ Description of manufacturing equipment andlor research and development equipment ESTIF.?ATFp � aldior to gistical distribution equipment andlor information technology equipment. srART DATE i COp1f'LETION pry€ E I s (use additional sheets if necessaty) e-- 9,4 Manufacturing Equipment' kw A- �+� t � 4�5.� Sots a +mow L. &U, �s+�{�5� R & D Equipment � tt tii5n r t=a G ruvC,/ • 1' - 7� t cAe , Log€st Dist Equipment !/V £gvi' pment SECTIONOF s / SALARIES AS RESULT OF'PROPOSED PROJECT €Curren;r_umber ¢ Saiares Numi>erro,,ained lSalaries Numberadditional ,salaries i 0 SECTION/ TOTAL COST• VALUE OF PROPOSED-s NOTE: Pursuant to 1C & 4.1-42.1-5.1 d 21 the (1( i MANUFACTURENG it D EQUIPMENT EQUIPMEN' LOGIST DIST IT EQUIPMENT EQUIPMENT COST of she property is confidential. ! COST _ f ASSESSED , CpgT ;ASSEUALtJ� SSED COST AMSESSFi� COST ASSESSED L VALVE � �; , VALUE UALiIE Current values — ' Plus estimated values of ,proposed project VYu r1V D �. BW r�'�'�--- rests mot, rl m4 orw +-Er7+� Jib' Less values of any property being replaced Net estimated values upon completion of project tit! Vp� fig, gird Wit i -- ---- - ; ,rt7vt t7y+7 qVVv Estimated solid waste converted (pounds) / O V , 4 Estimated hazarde.,s waste converted (pounds) Olher benefits: SECTION + I hereby c�ertvify that the representations in this sts?ement are true. Signature of au narized ran>.ati i, T,.t3eDate si^ned f .rar�tq� di3y yaarj rv"' 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 is 8 . The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; 2. Installation of new research and development equipment; 3. Installation of new logistical distribution equipment. 4. Installation of new information technology equipment; calendar years . (see be/ow), The date this designation expires ❑Yes []No ❑Yos [-]No ❑Yes ❑N o ❑Yes ❑No C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of t7. 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 $ G. Other limitations or conditions (specify} cost with an assessed value of 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: Ell year ❑6 years **For ERAS established prior to July 1, 2000, g ly a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. 03 years ❑8 years ❑4 years ❑9 years [IS 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. rr���� �av rrrcrrroap Tellee0one number I Date signed jmonth, day, year) Attested W/1�- - A % ` If thkAesignating 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-IA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: l.t �4v (14-1 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 g — 2. Average hourly wage for projected new positions S +17. S � 3. Average hourly health insurance benefit $ 3. -19 1. The length of the abatement you are requesting ( d ttz 4rs_ (_4 1-10 year abatement may be reyrtestedfor real estate improvements and maraifacturing e� ppnent) 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 states} 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-supervisonf 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 a#i hourly rate computed using the annual cost per eligsble employee divided by 2080 ltnurc. and 1 FORM SB-1A SUPPLEMENTAL INFORMATION 2, Purchased Equipment list (all equipment is being purchased, not leased, and new, not used) -- Sorema Wash Line, currently $8,604,253. (This equipment is priced in Euros and only 20% of the $/Euro price has been locked in). Useful life in excess of 20 years. This equipment cleans dirty PET flake into clean PET flake to create final product. --TiTech/Boliengraf Sort Equipment. $4,860,141. Useful life in excess of 20 years. This equipment sorts dirty inbound raw material to separate PET from all other foreign materials: other plastics, aluminum, other metals, any other garbage. --Wastewater treatment system. Approximate cost $750,000. Useful life approximately 15 years. Equipment treats wastewater from manufacturing process to make it clean enough for municipal discharge --Boiler, approximate cost $450,000. Useful life in excess of 20 years, Feats water to sufficient temperature to achieve cleaning goal. --Granulator, approximate cost $200,000, Useful life approximately 15 years. Grinds whole PET bottles into 3/8" flake so it can be washed. --Bale Press, approximate cost $2000. Useful life over 15 years. Compresses waste products (paper from bottle labels) into bales for shipment --Material Handling equipment and Silos, approximate cost $1,500,000. Moves raw materials and finished good around plant and stores inventory. --Laboratory and IT equipment, approximate cost $400,000. 3. Real Estate Improvements --Existing facility will be expanded by 20-25,000 square feet. Improvements will be made to floor, walls, dock doors, power/utility infrastructure, parking lot. Approximate cost $3,500,000.