HomeMy Public PortalAbout050-2021 - Tax Abatement - Hills Pet Nutrition - Equipment i
COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO. 50-2021
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, The Common Council of the City of Richmond, Indiana, 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, research and development equipment, logistic
distribution equipment, information technology 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, research and development
equipment, logistic distribution equipment, or information technology 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 the Common Council to approve a Statement of Benefits to allow a
standard 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, research and development equipment, logistic distribution
equipment, or information technology 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, research and
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development equipment, logistic distribution equipment, or information
technology 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, research and development equipment, logistic distribution
equipment, or information technology 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, research and development equipment, logistic
distribution equipment, or information technology 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.
7. That a deduction schedule was passed by Common Council pursuant to
Richmond City Amended Ordinance Number 5-2019 and that said
deduction schedule is applicable to the deductions approved along with
these findings.
WHEREAS, On March 19, 2018,the Common Council approved an ordinance establishing an
alternative abatement deduction schedule pursuant to IC 6-1.1-12.1-18,known as
Ordinance No. 17-2018, in order that a business that receives a deduction under
IC 6-1.1-12.1-4.5 may apply for the alternative deduction, provided that said
business provide proof of applicable justification for the requested deduction
meeting the following criteria:
1. Alternative abatement deduction schedule of 75% for 10 years if all of the
following requirements are met:
a. $5,000,000 minimum investment, and
b. A minimum of thirty (30) new full-time employees are hired and
maintained, and
c. Wages paid to new employees must pay 50% above the state minimum
wage, and
d. Major medical health insurance is provided to all full-time employees,
and
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e. All improvements and new hires must be completed within three years of
the date of the signed ordinance approving the Statement of Benefits for a
business, and
f. Failure to meet any of the requirements outlined in a. through e. above
shall require that the alternative abatement deduction schedule revert to the
standard ten (10) year abatement deduction schedule outlined in IC 6-1.1-
12.1-4d(10) for real estate improvements and IC 6-1.1-12.1-4.5d(10) for
personal property beginning with the number of years remaining for the
abatement (for example, if a personal property abatement is in its 6th year,
the final four years' deductions would be 40%, 30%, 20% and 10%,
respectively).
2. Additionally, if the minimum conditions outlined in #lb., #lc.; and #ld.
above are met, increase the alternative abatement deduction described above
by 5% if the business invests a minimum of $10,000,000 or by ten (10%)
percent if the business invests a minimum of$15,000,000.
3. If the minimum conditions outlined in #la., #lc., and #1d. are met, the
Richmond Common Council may increase the alternative abatement
deduction described above by 5% if the business adds a minimum of fifty
(50) new employees, or by ten (10%) percent if the business adds a
minimum of one hundred(100)new employees.
4. If the minimum conditions outlined in #la., #lb., #lc., and#ld. above are
met, increase the alternative abatement deduction described above by 5% if
the business pays at least two and one-half (2.5) times the state minimum
wage for new employees hired.
5. The percentage increases described in#2, #3, and#4 above are independent
of each other. As such, a qualifying applicant could possibly achieve a one
hundred(100%)percent deduction.
6. Richmond Common Council may decrease the alternative abatement
deduction by 5% for every $250,000 of additional taxpayer assistance (any
government level)provided to the business.
7. A business requesting an alternative abatement deduction schedule shall
provide a letter requesting an alternative abatement deduction schedule and
shall provide proof of the applicable justification with the standard
application materials.
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•
NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond,
Indiana,that the Common Council 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,
research and development equipment, logistic distribution equipment, or
information technology 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, research and development equipment,
logistic distribution equipment, or information technology 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, research and
development equipment, logistic distribution equipment, or information
technology 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, research and development equipment, logistic distribution
equipment, or information technology 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 also ordained by the Common Council of the City of
Richmond, Indiana, that the following property owner meets the requirements for property tax
assessed valuation deductions, as follows:
MANUFACTURING EQUIPMENT— 10 YEARS
Hill's Pet Nutrition Indiana, Inc.
Current Jobs: 141
Jobs Retained: 141
Jobs Created: 64
Estimated New Value: $17,000,000.00
Dated: October 20,2021
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•
NOW THEREFORE, be it also ordained by the Common Council of the City of
Richmond, Indiana, that in accordance with criteria #7 as listed on the alternative abatement
deduction schedule, the above-listed property owner has provided a letter requesting an
alternative abatement deduction schedule, has requested a ninety-five percent (95%) deduction
for ten (10) years, and has provided proof of the applicable justification to show that the
property owner has met the following applicable criteria:
A. The investment will exceed the $5,000,000.00 minimum investment
requirement in accordance with criteria#1 a.
B. A minimum of thirty (30) new full-time employees are hired and
maintained in accordance with criteria#1b.
C. Wages paid to new employees must pay 50% above the state minimum
wage in accordance with criteria#1c.
D. Major medical health insurance is provided to all full-time employees in
accordance with criteria#ld.
E. All improvements and new hires will be completed within three (3)
years of the signed ordinance approving the Statement of Benefits in accordance with
criteria#1 e.
G. The investment will exceed the $15,000,000.00 minimum investment
requirement in accordance with criteria #lb., #1c., #ld., and #2 to permit the outlined
additional ten percent(10%).
F. A minimum of fifty (50) new full-time employees are hired and
maintained in accordance with criteria #1 a., #1c., #1 d., and #3 to permit the outlined
additional five percent(5%).
H. The wages paid to new employees will exceed two and one-half (2.5)
times the state minimum wage in accordance with criteria#1a., #lb., #lc., #ld., and#4
to permit the outlined additional five percent(5%).
NOW THEREFORE, be it also ordained by the Common Council of the City of
Richmond, Indiana, that the above-referenced property owner may receive the requested ninety-
five percent(95%) deduction for the ten(10)year period.
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,
Passed and adopted this /6 day of `% 2021, by the Common Council of
the City of Richmond, Indiana.
,President
P ke
ATTEST: er
(Karen Chasteen,IAMC,MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this /(.• day of
, 2021, at 9:00 a.m.
area Chasteen,IAMC,MMC)
ct APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this
1� day of AcWorki5ei. ,2021, at 9 a (l;'Lc A-IA
Mayor
M ow)
ATTEST: ji/ • r
(Karen Chasteen,IAMC,MMC)
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