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Home My Public Portal About054-2011 Tax Abatement - Color-Box LLC - equipment.pdf.w.exh.pdORDINANCE NO. 54-2011 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 S13-1 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-I. 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 Color -Box, LLC Jobs Retained: 294 Jobs Created: NIA Estimated New Value: $8,280,000.00 Dated: August 15, 2011 Passed and adopted this day of , 2011, by the Common Council of the City of Richmond, n iana. ' ,President _X4 (Di na P p in) ATTEST- ((Karen Chasteen) PRESEN ED t the Mayor - of the City of Richmond, Indiana, this � day of 2011, at 9:00 a.m. Ir (Karen Chasteen) APP VED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 2-e) day of 2011, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTEST: (Karen Chasteen) STATEMENT OF BENEFITS a PERSONAL PROPERTY FORM SBA 1 PP • . State Form $1764 (R / 1-05) AN 2 4-PRIVACY NOTICE �•i• Prescribed by the Department of Loral Government Finance a The cost and any specific individuals salary information Is confidential: the balance ofthe riling is public record INSTRUCTIONS: per lC b•1.1-12.i•S.f (c) and (W. 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 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. (1C 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 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, a person must file 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 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/ar information technology equipment Is installed and fully functional, unless a filing extension has been obtained. A person who obtains a fling 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 afferJune 30. 1991, must submit Form CF-1 /PP annually to show compliance with the Statement of Benefits. (1C 6-1. 1-12.1-5.6) 5. The schedules established under IC 6-1.1-12.1-4.5(d) and (e) apply to equipment installed after March 1, 2001. For equipment installed prior to March 2, 2001, the schedules and statutes in effect at the time shall continue to apply. (IC 6-1.1-12. f-4.5(1) and (g)) SECTION- INFORMATION Name of taxpayer COLOR -BOX, LLC Address of taxpayer (street and number, city, state, ZIP code) 623 S G STREET/1050 INDUSTRIES RICHMOND IN 47374 Name of contact person Telephone number SHELLIE MADILL (765)966-7588 SECTION 2 LOCATION AND DESCRIPTION OF -•-• . PROJECT Name of designating body Resolution number (s) COMMON COUNCIL OF THE CITY OF RICHMOND IN Location of property County DLFG taxing district number 1050 INDUSTRIES RD RICHMOND IN 47374 WAYNE 89030 Description of manufacturing equipment 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 Date Manufacturing Equipment 01/01/2012 03/31/2012 Heidelberg Lithographic Print Press R & D Equipment Logist Dist Equipment IT Equipment' SECTION OF • AND SALARIES AS RESULT OF r-• ■ PROJECT Current number Salaries Number retained Salaries Number additional Salaries 2 66 14,313,73.3 294 14,237,793 SECTION :ESTIMATED TOTAL COSTAND VALUE OF ••• ■ PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the COST of the property Is confidential. P Manufacturing Equipment R & D Equipment Logist Dist Equipment " IT Equipment"' Cost Assessed Value Cost Assessed Cost Value Assessed C Value Cost ssesse Value Current values 48,139,523 12,706,620 Plus estimated values of proposed project 8,280,000 2,484,000 Less values of any property being replaced Net estimate values upon completion of project 56, 419, 523 15, 190, 620 SECTIONS• ■ AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTIONS• I hereby certify that the representations in this statement are true. griature of ut rized representative Title Date signed (month, day, year) 20A i � I CONTROLLER 08/15/2011 Form SB-1IPP, page 1 - NAGTP 1585 - Software only copyright 0 2011 DIS, Inc. Client/Loc SB2515260 RICHMOND 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 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; [t1YYes ❑ No 2. Installation of new research and development equipment; ❑ Yes El No 3. Installation of new 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 $ 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 G. Other limitations or conditions (sp-2 f. 4wome&i ftw* ipe iasia,Ited " WA. ``( ivwmks &Ii dC� dKOL"INAIXIE; "PILM&A ""ftG %-I 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 only a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 8 years ❑ 4 years ❑ 9 years ❑ 5 years `" 6?"l0 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. Approve . signature and title of auth zed member) Telphone number Date signed (month, day, year) Attested by: w Designated INV F IF " 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 A-12.1-4,5 Form SB-1IPP, page 2 - NACTP 1585 - Software only copyright 0 2011 CIS, Inc. Ctient/Loc 582515260 RICHMOND Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Color —Box, LLC — Shellie Madill, Controller 623 South G Street Richmond, IN 47374 The information requested on this supplement to form SB-I 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 $ 18.24 2. Average hourly wage for projected neu, positions $ N/A � 3. Average hourly health insurance benefit 4.44 1. The length of the abatement you are requesting 10 Years (A 1-10 year— abatement mqy be requested far- 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 —Heidelberg Lithographic Print • the projected useful life of each piece of equipment — 10+ years • the state(s) in which the equipment is being brought into Indiana from if purchasing used equipment —N/A • the cost ofeach piece of equipment—8,280,000 • state if the machinery is being purchased or leased — purchase • if the machinery is being leased, provide information from the lease that explains which party is responsible for paying the property taxes If makingrealestate improvements, please provide a Iist that includes the following: • brief description of the real estate improvement (new construction, rehab, expansion, etc.) size ofthe 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. Avera_e 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 ofan hourly rate computed using the annual cost per eligible employee divided by 2080 hours. Press