HomeMy Public PortalAbout076-2011 - Tax Abatement Alternative Abatement Deduction ScheduORDINANCE NO. 76-2011
A SPECIAL ORDINANCE ALLOWING AN ALTERNATIVE ABATEMENT
DEDUCTION SCHEDULE FOR PROPERTY OWNERS OBTAINING
DEDUCTIONS FROM ASSESSED VALUE OF CERTAIN PROPERTY WITHIN
AN ECONOMIC REVITALIZATION AREA
WHEREAS, pursuant to Indiana Law, I.C. 6-1.1-12.1 et. seq., the Common Council of
the City of Richmond, Indiana may find that a particular area within the city
is an Economic Revitalization Area which provides as an economic
development incentive certain property tax deductions for the
redevelopment or rehabilitation of real property or the installation of new
manufacturing equipment; and,
WHEREAS, the Common Council has previously adopted Resolution No. 10-1984
which designates certain areas in the city as Economic Revitalization Areas
and sets forth certain procedures for an owner to obtain certain deductions
therein; and
WHEREAS, Resolution No. 10-1984 has previously been amended to add other areas as
an ERA; making definition changes to the original ordinance; setting forth
the time periods in which a deduction is allowed; and establishing other
procedures for obtaining deductions (see Resolutions 2-1987; 11-1989, 11-
1991, 3-1996, Ordinances 72-1996, 90-1996, 113-1997, 19-2000, 29-
2006, 31-2007); and
WHEREAS, Indiana law has previously allowed the owner of real property and personal
property located within an economic revitalization area to request a
deduction over a one (1) to ten (10) year period and has previously
established the abatement deduction schedules for real property deductions
and personal property deductions; and
WHEREAS, Abatement deduction schedules for real property and personal property are
set forth and outlined by Indiana Law and the Common Council, as the
designating body, may approve the number of years any given deduction
applicant may take an approved deduction; and
WHEREAS, As set forth in the above -referenced Resolutions and Ordinances, Common
Council, as the designating body, has previously determined the applicable
time period in each Special Ordinance approving a specific Statement of
Benefits; and
WHEREAS, Effective July 1, 2011, Indiana Code (IC) 6-1.1-12.1-1 et seq. provides a
designating body flexibility to approve an alternative abatement deduction
schedule on either real estate and/or personal property to a business that is
established in, or relocating to an economic revitalization area and receives
a deduction; and
WHEREAS, For purposes of this Ordinance, an alternative abatement deduction is
defined as the deduction amount established by the Common Council, and
said deduction amount may be applied annually provided that all
requirements of this Ordinance are met; and
WHEREAS, For purposes of this Ordinance, an alternative abatement deduction
schedule is defined as a deduction amount and time period, not to exceed
ten (10) years, established by the Common Council as permitted by Indiana
law; and
WHEREAS, Common Council desires to establish guidelines in accordance with Indiana
Code (IC) 6-1.1-12.1-17 that may permit an alternative abatement
deduction schedule for businesses expanding or relocating in economic
revitalization areas in Richmond.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Richmond, Indiana, that the Alternative Abatement Deduction Schedule Guidelines are set
forth as follows:
1. Richmond Common Council may utilize an alternative abatement deduction
schedule of a 75% deduction for 10 years if all of the following requirements are met:
a. $3,000,000 minimum investment, and
b. A minimum of ten (10) new full-time employees are hired and
maintained, and
C. Wages paid to new employees must pay 50% above the state
minimum wage, and
d. Major medical health insurance is provided to all full-time
employees, and
e. All improvements and new hires must be completed within three
years of the date of the signed ordinance approving the Statement of Benefits for a
business, and
f. Failure to meet any of the requirements outlined in a. through e.
above shall require that the alternative abatement deduction schedule revert to the
standard ten (10) year abatement deduction schedule outlined in IC 6-1.1-12.1-
4d(10) for real estate improvements and IC 6-1.1-12.1-4.5d(10) for personal
property beginning with the number of years remaining for the abatement (for
example, if a personal property abatement is in its 61' year, the final four years'
deductions would be 400%, 30%, 20% and 10%, respectively).
2. Additionally, if the minimum conditions outlined in #1b., #lc., and #1d.
above are met, Richmond Common Council may increase the alternative abatement
deduction described above by 5% if the business invests a minimum of $5,000,000 or by
ten (10%) percent if the business invests a minimum of $10,000,000,.
3. If the minimum conditions outlined in # 1 a., # 1 c., and # 1 d. are met, the
Richmond Common Council may increase the alternative abatement deduction described
above by 5% if the business adds a minimum of twenty (20) new employees, or by ten
(10%) percent if the business adds a minimum of thirty (30) new employees
4. If the minimum conditions outlined in #Ia., #1b., #1c., and #1d. above are
met, the Richmond Common Council may increase the alternative abatement deduction
described above by 5% if the business pays at least double the state minimum wage for
new employees hired.
5. The percentage increases described in #2, 0, and #4 above are
independent of each other. As such, a qualifying applicant could possibly achieve a one
hundred (100%) percent deduction.
b. A business requesting an alternative abatement deduction schedule shall
provided a letter requesting an alternative abatement deduction schedule and shall provide
proof of the applicable justification with the standard application materials.
PASSED AND ADOPTED this 17th day of January 2012, by the Common Council of the
City of Richmond, Indiana.
President
Philip Mathew Quinn
ATTE
Karen Chasteen, IAMC, MMC
PRESENTED to the Mayor of the City of Richmond, Indiana, this 18th day of January,
2012, at 9:00 a.m.
aren Chasteen, L4MC, MMC
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 18th
day of January, 2012, at 9:05 a.m.
Mayor
(/! y
(Sarah L. Hutton)
ATTE T:
Karen Chasteen, IAMC, MMC