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Home My Public Portal About042-2011 - Tax Abatement - JM Hutton - equipment w exhORDINANCE NO. 42-2011 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. 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: 93 Jobs Created: 2 Estimated New Value: $403,284 Dated: July 22, 2011 Passed and adopted this % day of 4 2011, by the Common Council of the City of Richmond, Indiana. )&-LJ4.Z , President (Dia a Pap ATTES (Karen Chasteen) PRES TED to the Mayor of the City of Richmond, Indiana, this 1% day of 2011, at 9:00 a.m. (Karen Chasteen) AP P VED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of 2011, at 9:05 a.m. i 4 Mayor (Sarah L. Hutton) A (Karen Chasteen) N n n� STATEMENT OF -BENEFITS b PERSONAL PROPERTY y State Form 51764 (-04) " Prescnbed by the Department or Local Government Finance RECEIVED JUL 2 1- 4 FORM SB-1IPP INSTRUCTIONS: 1. This statement must be submitted to the body designating the aeonomic revitalization area prior to the public hearing if the designating body requires information from the appiicant in making its decision about whether to designate an Economic Revitalization Area Otherwise this statement must be submitted to the designating bodyBF-FORE a person installs the newmanufacfunng equipment andlorresearch and development equipment, and/orlogistical distribution equipment andlorinformation 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 equipment . andlorreseaiuh 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 Form 322 ERA/PP Other, most 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 eqquipment andlar 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-I annually to show compliance with the Statement ofBenefris. (IC 6-1.1-12.1-5X) 5 The schedules established under iC 6-1.1-12.1-4(d) and lC 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 fried before July 1, 2000. • Name of taxpayer J.M. Hutton & Co., Inc. Address of taxpayer (street, and number, city, state and ZIP code) 1501'South 8th Street, Richmond, IN 47374 Name of contact person Telephone number Thomas S. Robeson 962--3591 Name of designallnq body Resolution -number - Richmond Common Council Location of property County `faxing district 751 South 11011 Street Wayne Richmond 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 8-1-2011 1--02-2012 Automated Powder Coating line R $ D Equipment -(See Exhibit A) Logist Dist Equipment IT Equipment Current number Salaries Number retained ls6ilaries Number additional Salaries 93 $670.80/wlc/�play 93 $6701/wk/employ 2 $670.80/wk/employ NOTE: Pursuant to IC 6-1.1-12.141 (d) (2) the Manufacturing R & D Equipment Logist Dist Equipment * rr Equipment' Equipment COST of the property is confidential. Cost Cost Assessed Assessed Cost Assessed Assessed Cost Value Value Value Value Current values Plus estimated values of proposed project 403 2$4 7,943.00 Less values of any property being replaced None Net estimated values upon completion of protect 403 284 Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) other benefits: hereby certify that the representations in this statement are true_. Sin re of au rzed , tativ Tine President date signed (month, day, year) _ July 22,_2011 *See IC 6-1.1-12.1-2.3. ' ' Eicl7ard E. Jeffers 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 resglution, passed under IC 6-1.1-12.1-2.5, pro-. �iidesfor the following limitations as authoriied 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 ❑ No 2. Installation of new research and development equipment; ❑ Yes"[-] No 3. Installation of hew 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 $ ❑.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 $ a Other limitations or conditions (s ecify) � •R► Wd i n �s� �uipdcionema ring ew esearcaH. The dodev1n3Pment 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 ❑ i 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. ❑ 3 years ❑ 8 years ❑ 4 years ❑ S 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 reason- able and. have determined t t the totality of benefits. is sufficient to justify the deduction described above. Approv s1 nature an title o orized member) Telephone number Date signed (month, day, year) Atfested by: Designated body `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 . 1501 S. 8th Street - P.O. Box 129 Richmond, IN 47375-0129 (765) 962-3591 FAX (765) 966-0149 Toll Free: (800) 536-3591 Web Site: WWW.'mhutton.com July 20th, 2011 AUTOMATED POWDER COATING LINE 751 S "O" Description: 2006 ITW GEMMA powder coat booth 22', 28 gun, 4 color, automated application and recovery system. Located Webster City, IA. Cost: $55,000 purchase. $9,875 helicopter lift $10,741JMH disassemble $31,725 load and transport $85,000 JMH assemble Description: 2005 Cincinnati Industrial wash and cure line. 78' 4 stage washer, 30' drying oven, 200' curing oven, (2) DeVilbiss liquid coat booths, 800' power conveyor. Located Hebron, KY. Cost: $85,000 loaded $8,000 JMH disassemble $10,000 transport $100,000 JMH assemble Support equipment: Quality control equipment (coatings) $3,500 Computer system $1,700 Software $2,743 Approximate cost: $403,284 Approximate service life: 25 YR. EXHIBIT A 1 7D V Yx' ml 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 Contact: Thomas S. Robeson P.O. Box 129Richmond, IN 47375 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 $ 16.77 2. Average hourly wage for projected new positions $ - 16.77 3. Average hourly health insurance benefit $ 5.00 1. The length of the abatement you are requesting 10 (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 See Exhibit A • the projected useful life of each piece of equipment 25 years • the state(s) in which the equipment is being brought into Indiana from if purchasing used equipment See Exhibit A • the cost of each piece of equipment See Exhibit A 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. i 7-22-11 1 Signature and T` 1chard E . Jeffers , President (Date) J.M. HUTTON STAMPING DIVISION 1501 S. 8th Street - P.O. Box 129 Richmond, IN 47375-0129 (765) 962-3591 FAX (765) 966-0149 Toll Free: (800) 536-3591 Web Site: WWW.imhutton.corn July 20th, 2011 AUTOMATED POWDER COATING LINE 751 S "O" Description: 2006 ITW GEMMA powder coat booth 22', 28 gun, 4 color, automated application and recovery system. Located Webster City, IA. Cost: $55,000 purchase. $9,875 helicopter lift $10,741JMH disassemble $31,725 load and transport $85,000 JMH assemble Description: 2005 Cincinnati Industrial wash and cure line. 78' 4 stage washer, 30' drying oven, 200' curing oven, (2) DeVilbiss liquid coat booths, 800' power conveyor. Located Hebron, KY. Cost: $85,000 loaded $8,000 JMH disassemble $10,000 transport $100,000 JMH assemble Support equipment: Quality control equipment (coatings) $3,500 Computer system $l ,700 Software $2,743 Approximate cost: $403,284 Approximate service life: 25 YR. EXHIBIT A 1