HomeMy Public PortalAbout021-2009 - Tax Abatement - TBK - Equipment - Amending OrdinanceORDINANCE NO.21-2009
AN ORDINANCE AMENDING ORDINANCE 85-2006, THE APPROVAL OF A
STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR
DEDUCTIONS UNDER I.C. 6-11-12.1
WHEREAS, Common Council has previously designated eight (8) 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 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; and
WHEREAS, Ordinance 85-2006 approved a Statement of Benefits for TBK America, Inc. for
the acquisition of Personal Property; and
WHEREAS, Those acquisitions, in Ordinance 85-2006, were for manufacturing equipment
with an estimated value of $1,420, 640; and
WHEREAS, TBK America, Inc. has increased the scope of the project with an investment
value of $1,759,238; and
WHEREAS, TBK America, Inc. would like to amend their Statement of Benefits, as approved
by Ordinance 85-2006, to include the total estimated new value of $1,759,238.
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 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 or the improvements not completed will be ineligible for tax
abatement.
7. That the Statement of Benefits approved by Ordinance 85-2006 shall be
amended to reflect the total project of new investment of $1,759,238.
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:
NEW MANUFACTURING EQUIPMENT — NOT TO EXCEED 10 YEARS FROM
THE ORIGINALLY APPROVED ORDINANCE 85-2006
TBK America, Inc
Jobs Retained: 7
Jobs Created: 30
Estimated New Value: $1,759,238
Dated: April 27, 2009 (date of ame Statement of Benefits)
Passed and adopted this day 2009, by the Common Council of
the City of Richmond, Indiana.
President
(Bruce Wissel)
ATT
(Karen Chaste —en)
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of
2009, at 9:00 a.m.
k
(Karen asteen)
AP?RQVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this -,,2-_ day
0 009, at 9:05 a.m.
1
llll Mayor
(Sarah L. Hutton)
ATTE T• Clerk
(Karen Chasteen)
STATEMENT OF BENEFITS R° ECOVED APR 2
i* PERSONAL PROPERTY
State Form 51764 (R 1 1-46)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS.
FORM SB.1 1 PP
PRIVACY NOTICE
The cost and any specific individual's
salary information is confidential; the
balance of the filing is public record
per IC 6-1.1-12.1-5.1 (c) 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
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. (IC 841-12.1)
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 persons 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/or
information technology equipment is installed and fully functional, 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. (1C 6-1.1-12.1-5.6)
5. The schedules established under IC 6-1.1-12.1-4.5(d) and (a) 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 5-1.1-12.1-4.5(o and (g))
:::.:.SECTIO
ORMATION
Name of taxpa er
Add r ss of taxpayer (number a d'tree city, state, and Zt code)
u S 4ri N Y-73 7
Name of contact person
Telephone number
.::.:SECTION Z: LOCATION AND� DESCRIPTION.
OF PROPOSED PROJECT:
Name of designating bow
Resolution number (s)
Location of property
County
DLGF taxing district number
am -e.
Description of manufacturing equipment andlor research and development equipment
and/or logistical distribution equipment and/or information technology equipment.
(use additional sheets if necessary)
ESTIMATED
START DATE
COMPLETION DATE
Manufacturing Equipment
q 1 Ob
10 f Qb
MoLyl u 4c4u y, i IRb�
J Die.5e-1 eY,5 ne
COmQ,6nenh;
R & D Equipment
Logist Dist Equipment
Job06
1/ f
IT Equipment
( Q
s OFEMPLOYEES ANDSALARJESOF
PROPOSED-•
Current number SAIaries
�D. Dod�n_boo
I Numberadditional Salaries
�yI
PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the
MANUFACTUREQU PMENTNG
R & D EQUIPMENT
EQUIPMENT IT EQUIPMENT
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
COST
ASSESSED COST"
VALUE
ASSESSED
VALUE
COST of the property is confidential.
Current values
Q
O
p
Plus estimated values of proposed project
fi
N
70
6
Less values of any property being replaced
Q
p
Net estimated values upon completion of project
�:SECTION 5 WASTE CONVERTED AND OTHER -BENEFITS
PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits:
•CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature of authorized re n tive
Title ]�
Date signed (month, day, year)
l
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
8 . 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' (see below). The date this designation expires
❑Yes ❑N o
❑Yes ❑N o
❑Yes ❑N o
❑Yes ❑N o
C. The amount of deduction applicable to nev 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 {specify)
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 El years "" For ERA's established prior to July 1, 2000, 2n1 a
❑2 years El years 5 or 10 year schedule may be deducted.
❑ 3 years ❑ 8 years
❑ 4 years ❑ 9 years
❑ 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.
and tit of auth 'K ed member}
Telephone number
Designated
Date signed (month, day, 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
TEAK America, Inc.
List of New Manufacturing Equipment currently installed at 1761 Sheridan Street
Description mate of purchase Arnourrt
Hydrauic Press (USA-1-010 •
2006/11
Hydrauic Press (USA-1-02)
20001`
Hydrauic Press (USA-1-03)
2006111
Hydrauic Press (USA-1-94)
2006/11
Hydrauic Press (USA-1-05)
2000/11
Hydrauic Press (USA-1-06)
2006111
Hydrauic Press (USA-1-10)
2006/11
Hydrauic Press (USA-1-12)
2006111
Air Reak Tester (USA-1-09)
2006111
covering Assembling Table (USA-1-07)
2006111
Compressor (UP6-30-125)
2006[11
Compressor_(UP6-20-125) :
2006111
Coordinate Meusuring Machine
2007101
Machining Center (NV501F14201)
2007102
Maching Center (NV501 F14202)
2007102
CNC Lathe (VL25=Fd0298)
2007102
Maching Center (NV501 F14203)
2007102
Washing Machine
20D7102
CNC Lathe (CL201 F13182)
2007102
CNC Lathe (CL201 F13205)
2007102
CNC Lathe (CL201 F1.3210)
2007102
Drilling Center (P09VC314)
2007102
VAlashing Machine
2007102
Perforation Checker
2007102
Forklift (Hundei)
2006109
Total
Exhibit A To Resolution No. 1 -2008
38 594.78
37 575.13
37,393.86
37,110.32
37,567.57
9,697.90
39,952.14
10,336.53
48,185-92
8,033.18
14,995.18
52,303.90
195.144.29
195,144.29
223,737.47
193,072.37
40,195.60
1'25,794.89
114,492.55
109, 396A6
102,281.09
40,195.60
3,936.94
31,738.00
1,7 ' ,238.14
9