HomeMy Public PortalAbout061-2011 - Abatement - Osborn International - equipment - 10 yrORDINANCE NO. 61-2011
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:
I. 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 be 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- I 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 S13-1.
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
Osborn International, a unit of Jason Incorporated
Jobs Retained: 141
Jobs Created: 15
Estimated New Value: $4,246,000.00
Dated: October 4, 2011
Passed and adopted this day of1, by the Common
Council of the City of Richmond, Indzana.
del , President
(Dia Pa in
ATTEST:
(Karen Chasteen)
P ENTED to the Mayor of the City of Richmond, Indiana, this —L day of
11, at 9:00 a.m.
Ell
(Karen Chasteen)
OVER by me, Sarah L. tton, Mayor of the City of Richmond, Indiana, this '9:� day of
(Karen Chasteen)
(::::;i
4! Mayor
(Sarah L. Hutton)
RECEIVED OCT Q 5 2011
STATEMENT OF BENEFITS
PERSONAL PROPERTY
.� Slate Form 51764 (R / i-M
Preson'bed by the Department of Local Government Finance
INSTRUCTIONS.
!. This statement Rust be Subm&ed to am hndv dnskx nrnn thw F-9,
FORM SPR
B-9 ! PP
The cost and any spectme Iadrriduals
s+leryfatwmetfoa 8 coarfdangel: the
belartce orthe MV is publk rorord
!Col.!-121•�1 c and
oyWy,IN,1I OINYN i11lNNWL[Ni1W1tl agar rearrW wnxxt ate An' "Ts'
to claim a dedumn. Projects"p18Rned orcomni mod to after Jury f, l487.
arxf areas desrgnaled aRerJufy }. 198 ,raga a S7ATEMEfWlT eENAn'TS pC 6.1_}-12.1)
I Approvaloffhede set body[[CrtyCounp7 Toren Boer Cox IyGrrrtrL etc)mustbeobfatnadptiarrofnstehadanofinenawtrMufadudngoqupment
airWorm4eehch a deva pnrbnfoqulpmenl &Wrar(ogisUw1 dlsGfn�r(lort equlpnren(androrftWmsflon (may equipmenf. BEFORE a dedudlon may
be approved
3. Ta obtain a dadurxion, a neon must file a certified dadur>yon achedufe Kith the personspersonefpropertyratum on a Certified dedudlan schedule (Form
}03 ERA) Kr7h the tow 1p essessVof the townsldp lyhare the property is slhrafed i1re fQ4 ERA mus! he hied bafxean a4fatch }and May 1b of lho
essessmenl yew in M Rewmanufectudng equl and/arroseart]r and devefopRa9nt equ�meat androrfoglsticaf diahiNrrfion oqulpmantsad/or
!� fonnaWrr (echRolog�equlpmarH Is tasteltad arrd Jirrly lua,Yrrwral, urtress a fillnQ ardenskvr hea beam obleliral A parsaa rsfio obtains a bone oxtaRstar must
4, P rty owners whose Statement of Benefits was approved aRerJuna 30, 1091, must sub M Form CF-! /PP annually 10 show cortlWiatrw with the
ste emertt OfBenefits. (IC
5. The schedules osfebfishad undar lC f-1.1-12.145(tg and( appy Io equrpm nt Installed aRerMaR lr 1, ?OOf. Faraqulpmear 8rs(apad pdor to March 2,
200}, (ho sdredulos &W statutes In etrod at the Me shell EaDnf)riu9 (0 apply tic a r. }-121 �.5(1) end fOp
1AXPAYF.H INFORMATION
Hama of taxpayer
Osborn international, A Unit of Jason Inc.
Address of taxpayer (street and number, city, stale, 21P rode)
5401 Hamilton Avenue Cleveland OH 44114
Name of contact person
Telephone number
Roxana Stoicea
216-416-1160
Name of deslgnating body
Resolution number (s)
Richmond Common Council
Location of property
County
DLFG taxing district number
2350 Salisbury Road Richmond IN 47374
Wayne
89006
Descrlptlon of manufacturing equipment and/or research and development oquipment ESTIMATED
and/or logistical distribution equipment and/or information leariologyequlpmerd
(use addd(onal shoots ffnecessary) Start Date Completion Date
See Attached listing of manufacturing purchases ManufadurirrgEquipment 10/15/2011 10/15/2013
10 year abatement: requested RaoEquipment
t4gisl Dist Equipment'
IT Equipment'
SECT(ON
Curreninumtxtr Salaries Number retained Salaries Numberaddifloeal Salaries
141 3,500,000 141 3,500,000 15 345,000
NOTE; Pursuant io IC 6-1.1-12.1.5.1(d) (2) the Manutactudng R & D Equipment Loptat DHt Equipment' IT Equipment
Equipment
COST of the property is confidential.
Cost Assessod ened
Value Coal A Cos! vaittea Cost ague
Current values
14, 861, 000
4,148, 830
Plus estimated vewas of proposed project
4,246,000
1,300,000
Less values of any property being replaced
Net estimate values upon completion of project 19.107,0001 5,446,8301
ON OTHEREO BY Till IAXPAYtR
Estimated solid waste converted (pounds) Estimated hazardous waste converted {pounds)
Other benefits:
i
f I hereby COY that the re resent0ons In this statement are true.
Signature of au1 rapre Title Date signed (mpath, day, year)
A .I/Re ('gib/? fi
Form SBAIPP, page 1 - NACTP 105 - eonmro ally ooyyri9ht 02o11 U1S. Inc.
CllenVU01212 1
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
B. 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;
C. The amount of deduction applicable to new manufacturing equipment is limited to $
calendar years ' (see below).The date this designation expires
iH'?.'s
❑ No
❑ Yes
❑ No
❑ Yes
❑ No
❑ Yes
❑ No
cost with an assessed value of
D. The amount of deduction applicable to new research and development equipment is limited to $
with an assessed value of $
E. The amount of deduction applicable to new logistical distribution equipment is limited to $
F. The amount of deduction applicable to new information technology equipment is limited to $
cost
cost with an assessed value of
cost with an assessed value of
G. Other limitations or conditions (specify) C4Zu1QANeU1,f & t 11SLr.i.1 col — IV%-trA*6
a� s�fred or�inr�„t:e �
H. The d duciio or new manufacturing equipmen 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
13 99yyears
❑ 5 years ""
ly�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.
4pprove (signature and title ofa rued member) Telphone number Date signed (month, day, year)
- 3 /r
Attested by Designatedb�oy F
A
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
Form SB-1/PP, page 2 - NACTP 1585 - software only copyright 02011 PIS, Inc.
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Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
Osborn International
5401 Hamilton Avenue
Cleveland, OH 44114
Rick Bumgardner 1 Roxana Stoicea 216-416-1160
The information requested on this supplement to form SBA 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. �J
1. Average hourly wage for existing employees
2. Average hourly wage for projected new positions s 10 75"
3. Average hourly health insurance benefit
1. The length of the abatement you are requesting ! o eat-5
2.
(A 1-10 year abatement may be requested for real estate improvements and manufacturing
equipment.)
3. 1f 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
4. 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.
Average hourly wage for projected new positions: Use the same definition of employees to be
included as in number one above.
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.
Signature
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(Date)