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HomeMy Public PortalAbout067-2011 - Tax Abatement - Wayne Dairy Products Inc - improvemeAMENDED ORDINANCE NO. 67-2011 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 being applied at the ninety percent (90%) rate as allowed by Ordinance No. 76- 2011. 6. That the improvements to the real estate described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. 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 being applied at the ninety percent (90%) rate as allowed by Ordinance No. 76- 2011. 6. That the improvements to the real estate described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. 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: REAL ESTATE - 10 YEARS Wayne Dairy Products, Inc. Jobs Retained: 102 Jobs Created: 11 Estimated New Value: $1,875,000.00 Dated: October 31, 2011 Passed and adopted this 21 st day of February, 2012, by the Common Council of the City of Richmond, Indiana. President (Philip Mathew Quinn) I41 PRESENTED to the Mayor of the City of Richmond, Indiana, this 22nd day of February, 2012, at 9:00 a_m, rk en Chasteen, IAMC, MMC APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 22nd day of February, 2012, at 9:05 a.m. j 4W4Z4� Mayor (Sarah L. utton) ATTES Jerk Karen Chasteen, IAMC, MMC STATEMENT OF BENEFITS RECEWD OCT 3; 1 2W 20 PAY REAL ESTATE IMPROVEMENTS""" State Form 61767 (P2 t 1-07) FORAY! S9-1 l Real Property Prescr€bed by the Department of Local Government Finance 'this statement is being completed for real property that qualities under the following Indiana Code (check one box}: ❑ Redevelopment or rehabil€tation of real estate improvements (IC 6-1.1-12.14) ❑ Elig€ble vacant building (IC 6-1.1-12.1-4.8) iNSTRUCT70NS. 1. This statement must he submitted to the body desfgnating 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 Revitalizafron Area. Otherwise this statement must be submitted fa the designating body BEFORE the redevelopment or rehabWation of real property for which the person wishes to cialm a deduction. "Projects" planned or committed to alter July 1, 1987, and areas designated alter July 1, 1987, require a STATEMENT OF BENEFITS. (IC 6-1,1.12.1) 2. Approvat of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to Initiation of the redevelopment or rehabilitation, BEFORE a deduction may be approved. 3. To obtain a deduction, application Fomt 322 ERA/RE or Form 322 ERAAW, tiVhfchever is applicable, must be tiled with the County Auditor by the later of: (1) May 10; or (2) thirty (30) days afterthe notice of addition to assessed valuation or new assessment is mailed to the property owner at the address shown on the records of the township assessor. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF-1/Reat Property annually to the application to show compliance with the Statement of Benefits. 17C 6-f.1-12.1-6.7(b) and IC 6-1.142. i 5.3(1jj 5, The schedules established under IC 6-1.1-121-4(d) for rehablifteted property and under I for vacant buildings apply to any statement of benefits approved on or aRerJuly 1, 2000. The schedules atfeative prior to July 1. 2000, shall continue to apply to a statement of benefits filed before July 1, 2000, Name of taxpayer Wavne Dalry Products, Inc. Address of taxpayer (number and sfree4 ay, stale, &ftdZPc0de) 1590 N.W. Pith Street Richmond Indiana 47374 Name of contad person Telephone number E-mail address Grea Janzow 1(765) 973-7133 areoianzow0smitttdairv.cn Resolution number Common Council of Richmond Indiana Location of property Courfiy DLGF taxing district number 1590 N.W. 11th Street Richmond Indiana Wayne 89030 Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) Estimated start date (month, day, year) See the attached Plant Expansion Preliminary Budget Current number Salaries Number retained 102.00 $4.690,663.00 102.00 Estimated compietimr date (mm1h. day. year) salaries Number additional Salaries $4.690 . 663.00 11.00 $690 NOTE: Pursuant to IC 6-1 A-12.1-5.1 (d) (2) the COST of the property REAL ESTATE IMPROVEMENTS is confidential. COST ASSESSED VALUE Currentvalues 2,616,571.00 915,800 00 Plus estimated values of Proposed wolect 9.875.000.00 RJ;A hrn nn Less values of anyproperty being replaced Net estimated values upon completion of Protect I 4.491-571.0f) 1 1.577_nrin nrl Estimated solid waste converted (pounds) Other benefits that the represeritations In this statement are true. Estimated hazardous waste converted (pounds) Title Page 1 of 2 Data slgnmd (month, day year) 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, provides for the following limitations: 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 . The type of deduction that Is allowed In the designated area Is llmRed to: 1. Redevelopment or rehabilitation of real estate Improvements pes ❑ No 2. Residentially distressed areas ❑ Yes ❑ No 3. occupancy of a vacant building ❑ Yes © No C. The amount of the deduction applicable is limited to $ R. Other limitations or conditions (specify) real e5' w+& (tY1 aWmeAs m ilm haft erdtriar.at V'1-2Qt� is $751%eel- E. The deduction is allowed for /0 years` (see below). of We have also 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 suMc€ent to Justify the deduction described above. arRhorfzed member of designating body) Telephone number [ Qatefaigned (month, day, year) We ofettester) 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 6-1.12-12.1-4. A For residentially distressed areas, the deduction period may not exceed five (5) years. B. For redevelopment and rehabilitation or real estate Improvements: 1. If the Econornlc Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years. 2. If the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years. C. For vacant buildings, the deduction period may not exceed two (2) years. Page 2 of 2 Form SR -IA City of Richmond, badiana Taxpayer Wage & Benefit Information Company Nam, Address & Contact Person. 110 idbmafim requested on this supplement to form SH-1 mud be completed and sabmitted along withyour SB,-1 iu order for your tax abatwumt request to be considered by Xicbmond Comradn -CowxiL Please retain your records and calculations used to arrive at the infa=tioa requested oqthis form. It is sAjeotto review as apart of our"nita%g process. i. Average howdy wage for enstmg employees 2. Average hourly wage for projected now positions $ 18-03-19-25/Hr 3. Average hourly health insurance benefit $ 6.69/hr I. lu kDaih of &0 abatement you are requesting 10 years (W 1Rio year abalemew zatv N repatedfor real estate impmmenb and mmuoracwft equipment.) 2- lfpwcbasmg eqwPnwnt, please MEL& a lid OW WIudes the followmw * brief description of each piece of eqa4wient ba* pmehased 9 the projected =fid U& of =hpiw* of equ4mumt * the states) in which the equipment is being brought into Wit= ftom if pumbaft used eqWpment 9 the cost ofeach piece of eqtgpment 3. If Makiug red OsUft improvements, Please FXM(k A list that indudes the following: brief dewription of the real mUft improvement (now Constructlog, rekh, ccpavwav, etc.) size oftho proposed red estate improvemenU • costs of&e proposed red estate bVwvements DONS 1. Avemp howly wW fbr=lsftg emplayaoc for your Mj* VOCUt pay Perm PINSO FXM40 dM Domtindudedm following Vown A. part time employees; B. wwagmwt PT=bor% ftmao, or wW odw zqwVUM pmowe4 2. Ave m90 holdy V?Ap:rDr proi 0 et ed now posttlos Use the samedefloWm of employees to be h mb xW as knumber me above, I Mwephourly healthfustzence benefit: PleaseMvWtba omiat compamy pwdbaaft bsumot bwAft proMed to hourly en4Aayees (as defined SbDVe) and fiwl�y m=bem Mease pr=ent in 9z as dfiaW Muted us*g bg the annual por.efigibb empkyoedivided.by =hmm Sbmhm and Title) .(A I I I Wayne bairy Products; 2011-2012 Plant%pansion Preilminary Budget Equipment to Purdsase kern ApproArnate investment New half Gallon Finer and associated End of line Equipment $ 218w ow Processing system constsft of; 1 ea --125 GPM UKt Milk Processor, 2 ea—10,000 Gallon Aseptic Surge Tanks; Necessary valuing and pipe routing $ 4,000,OW New Boiler and CodingTower $ 1,900,000 New BatcWng Equipment, assodated tanks, valuing and pipe routing $ 650,000 New izaw Storage Tank 150,000 New Pasteurized Storage Tank $ 1i)00W Plant Conveyanoe $ 525,000 Approximate EquipmentTotal $ - 10,]251000 Real. Estate Improvements twm ApproAmate investment Filler room renovations $ 600.000 Processing Roam Renovations $ 275,000 Mix Roam Renavatk "u $ 450,000 New Raw Storage Tank Addition $ 75,000 New Pasteurized Storage Tank Renovations $ 40,000 Utility Room Renovations S 290,000 Misr. Renovations $ 145,000. Approximate item Estate ImpravementsTotal. $ ; 11875,000