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HomeMy Public PortalAbout068-2011 - Tax Abatement - Wayne Dairy Products Inc - equipmenAMENDED ORDINANCE NO. 68-2011 A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER LC. 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. S. 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 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, 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 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% NIENT —10 YEARS Wayne Dairy Products, Inc. Jobs Retained: 102 Jobs Created: 11 Estimated New Value: $10,125,000.00 Dated: October 31, 2011 Passed and adopted this 21st day of February, 2012, by the Common Council of the City of Richmond, Indiana. President Ahtili?%Lthew Quinn) ATTEST: Karen Chasteen, TAMC, MMC PRESENTED to the Mayor of the City of Richmond, Indiana, this 22nd day of February, 2012, at 9:00 a.m. Karen Chasteen, IA.MC, 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. Mayor (Sarah L. Hutton) ATTEST:/ -- Karen Chasteen, IAMC, MMC STATEMENT OF PERSONAL PROPERTY BENEFITS EE GENE® OCT 3 1 2T 1 State form 51764 (R 14-06) Prescribed by the Department of Local Government Rnance INSTRUC77ONS: FORM 813-11 PP PRIVACY NOTICE The cost and any spedtic indh!iduaPs salary Information rs oocMdentlal; the balance of the filingg Is public record .per IC 8-1.t-t2.t-S.1 (51 and d . 1, This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires Intorrnation fmm the applicant In making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted to the designatny body BEFORE a person installs the new manufacfing equipment and/or research and development equipment, and/or logistical distribution equipment andlorinformation technology equipment for which the person wishes to claim a deduction. 'Projects"planned or committed to agar July 1, 1987, and areas designated after July 1, 1987, require a STATE'MEVT OF BENEFITS. (iC 6-1-1-12.1) 2. Approval of the designating body (City Councit, Town Board County Council, etc) must be obtained prior to Installation of the new manufacturing equipment and/or research and development equipment andlorfogisdW distribution equipment and/or Information technology equipment, BEFORE a deduction may be approved 3. To obtain a deduction, a person must file a certtfed deduction schedule with the person's personal property return on a ceri fled deduction schedule (Form 103-ERA) wfth the township assessor of the township where the property is situated. The 103-ERA must be tiled between March i and May 15 of the assessment year in which new manufacturing equipmant and/or research and development equipment andlor logistical distribution equipment and/or information technology equipment Is Installed and fullyfunctlonat, unless a filing extension has been obtained A person who obtains a filing 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 / PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12. f-5 6) a The schedules established under 1C 6-1. f-12.1-4.5(d) and (e) apply to equipment installed after March f, 2001. For equipment Installed prior to March 2, 2001, the schedules and statufes in effect at the time shall continue to apply. (10 6-1.1-12.1-4.5(tj and (g)) a s- • Name of taxpayer Wayne Dairy Products, Inc. Address of taMmyar (number and strew City, stele, and ZiP code) 1590 N.W. Pith Street Richmond, Indiana 47374 Name of contact person Telephone number Greg Janzow (765) 973-7133 Name of designating body Resolution number (a) Common Council of Richmond Location of property County DLGF taxing district number 1590 N.W.11th Street Richmond, Indiana 47374 Wayne 89030 Description of manufacturing equipment and/or research and development equi ment ESTIMATED and/or iogistical distribution equipment andlor information technology equipme (use additional sheets if necessary) START DATE COMPLETION DATE Manufacturing Equipment 11130/201, 12(31/2013 Sae the attached Plant Expansion Preliminary Budget R & D Equipment Logist Dist Equipment IT Equipment Current number ISatarier, Number retained Salaries Number additional Salaries 102 4,690,663-00 102 4,690,663.00 11 590,757.00 NOTE: Pursuant to IC 6-1.1-12.1 .1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT COST of the property Is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED Id0.Lm VALLVE VALUE r1 VE Currentvalues 2%256,88 M 5,873,640.00 Plus estimated values of proposed project +0,125,000.00 4,6e0,000.00 Lass values of any.,property being replaced Net estimated values upon completion of project so,sst,3sa_oo 91923; 60 Estimated solid waste converted (pounds) "Efimtdous waste converted (pounds) Other benefits: I hereby certify that the representations in this statement are true. sign re re resantattve Ttli t� Dade signed (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 6-1.1-12.1-2.5, 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 bellow). 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; 93 'e s ❑ N o 2. Installation of new research and development equipment, U Ye s ❑ N o 3. Installation of new logistical distribution equipment. Cj Yes ❑ N o 4. Installation of new Infonmaton 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 $ with an assessed value of $ E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost 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 limblioris or conditions (specify) QtV i�lYtPk} /LtiYS' ' , t�15 ,. f€ed W A .,.,�t{ +tin.oINKS H. The deduction for new manufacturing eq Ipment andfor 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 duly 1, 2000, is allowed for: ❑ 1 year 08 years •• For ERNs established prior to July 1. 2000, OJI a ❑2 years ❑7 years 5 or 10 year schedule may be deducted. ❑3years ©8years ❑dyears [3 9years ❑5years " iDyears" 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 tojustify the deduction described above. aurnmtzeu memaer) Te!ephone !+6et Date sEg� (mw/ fdar�y year) � " 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 1 Form 3B-xA. City of Richmond, Indiana Taxpayer Wage & Benefit Infonnation Company Name, Address & Contact Person: Ile information roquested on this supplement to fornm SB-1 musk be completed and submitted along with your 811-1 in order for your tax abatement request to be considered by Nch mood Common Council. Please retain your records and calculations used to arrive at the informmation requested on; this form. It is subject to review as a pact of our marntoring process, 1. Average hourly wage for odsking employeess 2. Average hourly wage for projected new positions S. 1Z.81_�_ $ 18.03-19.25 /Hr 3. A.vesrage hourly hearth insurance benefit $ 6.69 /hr 1. The length of the abatement you are retesting 10 years (A 1 10 year abatement may be regrttestafor real estate improvements and mairrffacturGtg &p*ment) 2. lfpurchasmg equipment, please attach a list that includes time fallowing: • brief description of each piece of equipment being ptuehased • the projected use fid life of eaoh piece of equipment • the state(s) in which the equipment is being brought into Indiana from if purchasing used equipment • the cost ofeachpie+ce of equipment 3. if mAUng real estate improvements, please provide a list that includes the fallow&V brief description of the real estate improvement (nevi construction, rehab, ogwision, etc.) • size of the proposed real estate improvements R costs oMe proposed real estate improvemenu DE DMONS 1. Average hourly wage fDr=stmg employees: for your most recut Pay pedod Please prcmdo the avearage base triage pet hour for all vuxent fu11 tune, non -supervisory employees. bo not include the following groups: A. part time employees; B. mauagment, mpavisom foremen, or ant otbw supervisory personnel; G ov mw�, stockbolders, or paw if they own 2% ormore of the business, and their fimil3' members. 2. Average hourly wage for projected new positions: Use ilia same defsnitim of employees to be included ss In number erne above:. 3. Average hourly heath insurance bereft: Please provide the oompam y paid health insurance benefits promde d to hourly employees (as dune d above) and family members. Pleasepresent inthe form o€ rate computed using the amend cost per eerie employee divided by 2M ho�m. ' { (A rimed Szguatare and 11t1e) (Date) Wayne Dairy Products; 2011-2012 Plant Expansion Preliminary Budget Equipment to Purchase Item Appraxmate Investment New Half Gallon Filler and associated End of tine Equipment $ 2,800,000 Processing system consisting of; lea— 125 GPM URt Milk Processor; 2 ea -- 20,000 Gallon Aseptic Surge Tanks; Necessary valuing and pipe routing $ 4,00D,000 New Boiler and CoolingTower $ 1,900,000 New Hatching Equipment, associated tanks, vaiving and pipe routing $ 650,ODO New Raw Storage Tank $ 250,000 New Pasteurized Storage Tank $ i00,OD0 Plant Conveyance $ 525,000 Approximate Equipment Total $ 1W5,00D Real Estate Improvements Item Approximate Investment Filler room renovations $ 60Q000 Processing Room Renovations $ 275,000 Mix Room Renovations $ 450,000 New Raw Storage Tank Addition $ 75,000 New Pasteurized Storage Tank Renovations $ 401000 Utility Room Renovations $ 290,000 Mtsc. Renovations $ 145,000 Approximate (seal Estate Improvements Total $ � 3,875,UQ0 Total Project 1 estment $ 12,000,000