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Home My Public Portal About074-2011 - Tax Abatement - Wayne Machine Manufacturers Inc - eORDINANCE NO. 74-2011 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 Iess 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-l. 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: E IMMENT — 9 YEARS Wayne Machine Manufacturers, Inc. Jobs Retained: 12 Jobs Created: 1 Estimated New Value: $120,000.00 Dated: December 5, 2011 Passed and adopted this 3rd day of January, 2012, by the Common Council of the City of Richmond, Indiana. President Philip Mathew Quinn ATTE T: aren Chastee�LAM�C,MMC�� , PRESENTED to the Mayor of the City of Richmond, Indiana, this day of January, 2012, at 9:00 am. Karen Chasteen, IAMC, MMC APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this J-/ day of January, 2012, at 9:05 a.m. / ' dMayor (Sarah L. Hutton) ATTE Karen Chasteen, IAMC, MMC STATEMENT OF BENEFITS RECEWE13 DEC; (t ► PERSONAL PROPERTY \ - State Farm 51764 (R 1 1-06) Prescribed by the Department of Local Government Finance INSTRUCTfONS. FORM SIB-1 1 PP PRIVACY NOTICE The cost and any specific indlMdual's salary informallon is canfldential: the balance of the €clingg is public record per IC 6-1.1-i .1-5.1 (c)and {d). p_ 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 attar 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 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 parson'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 tiled between March 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment andlar logistical distribution equipment and/or information technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a tiling 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-1 l PP annually to show compliance with the Statement of Benefits. (IC 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. (1C 6-1.1-12.1-4.5(o and (g)) SECTION•- • Name of taxpayer WAYNE MACHINE MANUFACTURERS, INC Address of taxpayer (numberand street city, state, and ZtP code) P.O. BOX 427, RICHMOND, IN 47374 Name of contact person Telephone number JEFFREY D. BAKER (765) 962-13459 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (s) COMMON COUNCIL OF THE CITY OF RICHMOND, IN 10-1984, 11--1991 Location of property County DLGF taxing district number 1747 SOUTH 5TH ST, RICHMOND, iN 47374 WAYNE RICHMOND CORP Description of manufaaluring 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 12101/2011 12/31/2012 MILLING MACHINE 12,000 METAL TURNING LATHE 13,000 R & D Equipment Logist Dist Equipment HYDRAULIC PRESS BRAKE 50,000 HYDRAULIC PLATE SHEAR 45,000 IT Equipment SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PR• Current number salaries Number retained Salaries Number additional Salaries 12 350,000.00 1 30,000.00 1 25,000.00 SECTION• TOTAL COST. VALUE OF -•-• . PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 d 2 the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT I ) G) EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values 214,573.00 42,818,00 Plus estimated values of proposed project imooa.00 48,000.00 Less values of any property being replaced 17285.D0 2,938.DD Net estimated values upon completion of project 1317,288.00 87.000.00 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROM15ED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION.ACERTIFICATION I hereby certify that the representations in this statement are true. Sign=tuilhorized Be live Title ��) Date signed (month, day, year) -a 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 1C 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; calendar years * fsee below). The date this designation expires Yes ❑N o [—]Yes [:]NO ❑Yes ❑No ❑Yes ❑N o C. The amount of deduction applicable to new manufacturing equipment is limited to $ ! Log oc&� . 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 (specify),_;AS ltia-i'�nr, e�futi( G/►�" u5 - c.u� W[� ti Z� e+1byL S QF QAiiv at~ 91 ftM GD udq+�G 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 ERA4s 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 KITyears ❑ 5 years ** ❑ 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. Approved: (signature an aut a ember} Telep one number pate signed (month, day, year) 3.Z '/-'- Attested by: �0-11 OesignatS ,4ody 1-77 , * 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 MIA -- City of Richmond, Indite T yes wage a Benefit it OM91ol1 Comppy Nam, Address & Contact Person: WAYntE MA@I.11AIF MAMUF'A C7'l.tR ES lae P. a . BOX 4121, R i eh nnotab , ilq q,7 CONTACT' EE FF 1RE yy 0, The information reguest� on this supplement to form SB l mutt be coinplated and submitted along with your SB-1 in order for your tax abatement request to be considered by Richuaoad Common Council. Please retain your records and calculations used to arrive at the ini6rmation requested on this form. It is subject to review as a part of our n�itoring process. 1. Average hourly wage for existing employees 2. Average hourly wage for projected new positions S 1,� - 13 e!o I Average hourly'health insurance benefit ._0 o 1. The length of the abatement you are requesting /0 (A 1-10 year abatement may be requested for real ettute improvement and manufacturing equipment. j 2. If purchasing ealuipneene, please attach a fist that includes did follo*g. ® brief description of each piece of equipment being purchased the projected usefid life of each piece of equipment ® the state(s) in which the equip=t is being brought into kdiam f m ifpurcliasing used egnipment a "the - cost of "each piece of equipment ® slate if the machinery is being purchased or leased if the machinery is being leased, provide information from.the lease that explains which . patty is responsible for paying the property taxes 3. If maleog real estate improvements, please provide a list that includes the following: e brief description of the real estate improvement (new construction. rehab, expansion, etc.) • size of the proposed veal estate im proveramts e costs of the proposed ad estate improvements 1. Averago hourly wage fw existing omployees: for your most recent pay period Pleas provide the average base wage par hour for all current full time, non-supervismy employees. Do ad irmhade the following groups: A. part tines aVloyeea; B- 'ma;eagesraent, aneget vise, foremen, or racy other supervistsry PSomeel; . C owners, atockhOldem of pavers if they own 2% or name of the business, aad their familymetabers. . 2. . Average houry wage for projected new positions: Use the same definition of employees to be included as in number one above. . I Average hourly health iomn= btftfit: Please provide the current conpwy paid health insurance benefits provided to hourly employees(= defi=d above) wd family n=bars. Please prat iai the dorm of an dourly rite c�u$p» mug cost per eligi'bi>; taa:iployeee divided by 2080 hovers. Sim Aod Tide) Wayne Machine Manufacturers, Inc P.O. Box 427 Richmond, 1N 47375 Attachment to From SB-1A Business Expansion/ New Line & New Customers Addition of 1 New Employee Milling Machine Projected Cost $ 12,000 Estimated Useful Life 10 --15 years Purchase Location Unknown at present time, Likely Midwest Region of US Equipment will be purchased, not leased Metal Turning Lathe Projected Cost $ 13,000 Estimated Useful Life 10 —15 years Purchase Location Unknown at present time, Likely Midwest Region of US Equipment will be purchased, not leased Replacement of Existing Outdated Equipment Retain 1 Existing Employee Hydraulic Press Brake Projected Cost $ 50,000 Estimated Useful Life 10 —15 years Purchase Location Unknown at present time, Likely Midwest Region of US Equipment will be purchased, not leased Hydraulic Plate Shear Projected Cost $ 45,000 Estimated Useful Life 10 —15 years Purchase Location Unknown at present time, Likely Midwest Region of US Equipment will be purchased, not leased