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Home My Public Portal About060-2010 - Tax Abatement - Belden Inc - equipment.exhORDINANCE NO.60-2010 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 S13-1. 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 Belden, lnc. Jobs Retained: 697 Jobs Created: NIA Estimated New Value: $1,900,000. Dated: December 10, 2010 Passed and adopted this �� day_ c�.t , 2011, by the Common Council of the City of Richmond, Indiana. President ATTEST: {Karen Chasteen) PRESENTED to the Mayor of t 2011, at 9:00 a.m. (Karen Chasteen) I PROVED by me, Sarah L. Hutton, 2011, at 9:05 a.m. ATTE : (Karen Chasteen) he City of Richmond, Indiana, this /!_ day of Mayor of the City of Richmond, Indiana, this LPL day of XA44k, Mayor (Sarah L. Hutton) STATEMENT OF PERSONAL PROPERTY iS r 1 3 2010 RECEIVE® DEC State Form 51764 (RI 1.06) Prescribed by the Department of Local Government Finance INSTRUCTIONS: FORM SB-11 PP PRIVACY NOTICE The cost and any speafu; individuars salary information Is conrrdential, the 50 f iha flingg is public record pa 1C 6.1. I2.1•S.1 c and & 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 newmanufacturing 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. (1C 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtalned prior to installation of the new manufacturing equipment and/or research and development equipment and/orlogistical distribution equipment and/oriftimation technology equipment, BEFORE a deduction may be approved 3. To obtain a deduction, a person must rile a certified deduction schedule with the person's personal property return 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 riled between March f 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 lunctional, 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 / PP annually to show compliance with the Statement of Senerds, 5. The schedules established under IC 5-7.1-12. i-4.5(dJ and (e) apply to equipment installed after March i, 2001. Forequiument installed prior to March 2, 2001, fhe schedules and statutes in effect at the time shaft continue to apply. (IC 6-1.1-12.1-1.5(f) and (g)) SECTION•- • Name of taxpayer BELDEN INC. Address of taxpayer (number and street city, state, and ZIPoode) 2200 U.S. HIGHWAY 27 SOUTH, RICHMOND IN 47374 Name of contact person Telephone number DENNIS WISER I (76N 983-5570 SECTION• • AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (s) CITY OF RICHMOND Location of property County OLGF laxing district number 350 N.W.'N' STREET, RICHMOND WAYNE 030 Description of manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment. (use additional sheets if necessary) ESTIMATED START DATE COAiFLETION DATE Manutacluring Equipment 0110112011 12/0112011 INSTALLING NEW EQUIPMENT AND REARRANGING R& D Equipment EXISTING EQUIPMENT TO IMPROVE WORK FLOW AND TO REDUCE CYCLE TIMES AND SCRAP Logist Dist Equipment 01101/2011 1210112011 EXPENSE. 17 Equipment SECTIONOF: • i SALARIES AS RESULT OF 'i'• i PROJECT Current number Salaries Numberretained Salaries Number additional Salaries 697 41.056.278.00 697 41,056,278.00 0 0.00 SECTION. TOTAL COSTAND VALUE OF -.-. . PROJECT NOTE: Pursuant to IC 6-1.1-92.1-5.1 (d) (2) the MAE UU PMENTNO R & D EQUIPMENT EQU PMENT IT EQUIPMENT COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED COST VALUE ASSESSED VALUE COST of the property is confidential. Current values 105,685,024.00 28,09f,123.00 0.00 0,00 Plus estimated values of proposed project 1.722.000.00 51e,e00_00 178,000.00 53.400,00 Less values of any property being replaced LVat estimated values upon oompletinn of project 107,460,424.00 2a,fi07,723.00 178,00D.00 53.t0op0 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 that the representations in this statement are true. Sig=pd reprase five Ty�le Dale signed (m th, y, year) U We have reviewed our prior actions relating to the designation of this economic revilaUalion area and find that the applicant meals 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 9 . The type of deduction that Is allowed in the designated area is limited to. 1. Installation of now manufacturing equipment; ❑Yes [:]No 2. Installation of new research and development equipment; ❑Yes Q N o 3. Installation of now 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 S cost with an assessed value of S 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 S Ca Other limitations or conditions (spec//yJ 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 ERA's established prior to July 1, 2000, QLi13l a [32 years 07 years 5 or 10 year schedule may be deducted. 03 years ❑8 years ❑ 4 years 09 years ❑ 5 years •• ❑ 10 years •' Aso 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: fs' narum and We orauth9filed member) Telephone number Oaf sig d {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 6-1.1-12.14.5 Form SB-IA City of Richmond, In Taxpayer Wage & Benefit Information Company Name, Address & Contact Person; Belden Inc. Dennis Wiser, Vice President of Finance 2200 U.S. Highway 27 S.; Richmond IN 47374 The information requested on this supplement to form S13-1 must be completed and submitted along with your SB-I 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 $ 18.60 2. Average hourly wage for projected new positions $ N/A 3. Average hourly health insurance benefit $ 4.97 1. The length of the abatement you are requesting 10 Years (A 140 year abatement maybe requestedfor real estate Improvements and mamrfacaving 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 manual cost per eligible employee divided by 2080 hours. Gt^k-J 14;L' 14Z (AuthorizA Signatu and Title) (Date) Belden Inc. Equipment List for Abatement Attachment for Form SB-1/PP New to Item Total Estimated Life Indiana In -Line Packaging machines $ 973,000 12 Years Yes Extruder Control Systems $ 297,000 12 Years Yes Dual Ring Band Stripers $ 180,000 12 Years Yes Measurement Equipment $ 63,000 12 Years Yes Testing Equipment $ 155,000 12 Years Yes Additional Auxillary Equipment $ 54,000 12 Years Yes Hoists* $ 135,000 12 Years Yes Pallet Lift Table* $ 36,000 12 Years Yes Pallet Jack* $ 7,000 12 Years Yes Yes TOTAL EQUIPMENT $ 1,900,000 *Logistical Distribution Equipment Baden Tax ManagemenhC December 10, 2010 City of Richmond Department of wletropolitan Development Community Development IMr. Anthony Foster 11, Executive Director 50 North Filth Street Richmond. TN 47 )71 Re: - Application for tax abatement I'm Belden Inc. Dear Ton`-: Belden Inc. is one of tIte largest US, based manufacturers of.htgh-speed electronic c. bles. Belden be;5an operations in Rielu�lond, Indiana in 1�1?� and is a long-standing resident. Over the next 12 months. Belden Nvill install and place into service approximately $l _9 million dollars in new equipment at its manufacturing facility in the Cite of Richmond. The added investment will allow Belden to remain competitive in the marketplace and continue their Focus can products for the specialty electronics and data new"-orking markets. Upon completion of the projects in December 2-011, Belden will have, maintained 697 jobs. over C l % of which are holirly. 13ene€its include; medical, dental, vision, life insurance, disability coverage, pail vacations and holidays, and retirement benefits. Belden has benefited from tax abatements in the past and currently resides in an Economic Revitalization area. Criven the level of investment and employment values. a icn-year abaternent for personal property is respectfully requested. Best regards. Todd B. ChUrchward. CPA Director Enclosure 0 Cl 0 165) West 11 ieuca Road, Suite 209 6920 Pointe Inverness 6iiay. Suhe 301 6415 C�stlmnv West Drivv, Suite 102 Atlanta, Georgia 30342 Pori klVayne, Indiana 6804 Ind anap;lis, Iitdiamt 16250 Phone: 404.9 43.0300 • ILA:-104.943.0155 Phone: 260.422.25514 Fax:—160.969,2581. I'itone: 317-170.7 775 * Fax:260,9tii?.258.t