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Home My Public Portal About019-2023 - Special Ordiance Combining Abatements - Criteria Schedule and All deductions COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA AMENDED ORDINANCE 19-2023 A SPECIAL ORDINANCE REPLACING AND AMENDING MINIMUM CRITERIA AND ALTERNATIVE DEDUCTION SCHEDULES FOR PROPERTY OWNERS REQUESTING DEDUCTIONS FROM ASSESSED VALUE OF QUALIFIED PROPERTY WITHIN AN ECONOMIC REVITALIZATION AREA WHEREAS, Pursuant to Indiana Code (IC) 6-1.1-12.1 et. seq., the Common Council of the City of Richmond, Indiana (hereinafter "Common Council") as a designating body may find that a particular area within the City is an Economic Revitalization Area which provides as an economic development incentive certain property tax deductions for the redevelopment or rehabilitation of qualified real property or the installation of new or qualified personal property equipment; and WHEREAS, The Common Council has previously adopted Resolution No. 10-1984 which designates certain areas in the City as Economic Revitalization Areas and sets forth certain procedures for an owner to obtain,certain deductions therein; and WHEREAS, Resolution No. 10-1984 has previously been amended to add other areas as an ERA; making definition changes to the original ordinance, setting forth the time periods in which a deduction is allowed, and establishing other procedures for obtaining deductions (see Resolutions 2-1987, 11-1989, 11-1991, 3-1996, Ordinances 72-1996, 90-1996, 113-1997, 19-2000, 29-2006, 31-2007, 76-2011, 65-2013, and 66-2013); and WHEREAS, Indiana law has previously allowed the owners of qualified real property and qualified personal property located within an economic revitalization area to request a deduction over a one (1) to ten (10) year period and has previously established the abatement deduction schedules for real property deductions and personal property deductions; and WHEREAS, Abatement deduction schedules for qualified real property and qualified personal property are set forth and outlined by Indiana Law and the Common Council, as Page ! of 13 the designating body, may approve the number of years any given deduction applicant may take an approved deduction; and WHEREAS, As set forth in the above-referenced Resolutions and Ordinances, Common. Council, as the designating body, has previously determined the applicable time period and scale within each Special Ordinance approving a specific Statement of Benefits; and WHEREAS, IC 6-1.1-12.1-1. et seq. has also provided a designating body flexibility to approve an alternative abatement deduction schedule on either qualified real estate and/or qualified personal property to a business that is established in, or relocating to an economic revitalization area and receives a deduction and Common Council, in accordance with said Indiana Code, approved and passed Ordinance No. 76-201. 1 on January 1.7, 2012 with the most recent update to the alternative abatement deduction schedule having been approved through Ordinance No. 17-2018 which passed on March 1.9, 2018;. and WHEREAS, IC 6-1.1-12.1-17 sets forth that the Common Council as the designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under IC 6-1.1-12.1-4 or IC 6-1.1-12.1-4,5 au abatement schedule based on certain factors with the most recent. update to the minimum criteria having been approved through Ordinance No. 29-2021. which passed on July 6, 2021; and WHEREAS, It is in the best interests of the citizens of the City of Richmond, Indiana, that the Comrn.on Council update and replace the minimum and alternative deduction criteria for each of the factors to be considered for qualified personal property and for qualified real estate deductions permitted by IC 6-1.1-12.1. et seq. contained in applications received subsequent to the passage of this Special Ordinance. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Richmond, Indiana, that, in accordance with IC 6-1.1-1.2 1 et seq., the following criteria, guidelines, and point-based scoring system shall update and replace the prior regular and alternative criteria, and the updates and replacement criteria herein will be utilized by the Common Council for the deduction schedules of qualified personal property and of qualified real estate deductions which may be permitted to determine both the scale and length of any abatement which may be granted: Page 2 of 1.3 A. Real property abatements will be evaluated only if the qualified investment is a minimum of Five Hundred Thousand Dollars ($500,000.00); B. Personal property abatements will be evaluated only if the qualified investment is a minimum of Five Hundred Thousand Dollars ($500,000.00); C. Requests containing both real property and personal property applications will be evaluated only if the qualified investments as a whole are a minimum of Five Hundred Thousand Dollars ($500,000.00); Qualified real property abatements to be evaluated will be considered for a one (1) to ten (10) year abatement; E. Qualified personal property abatements to be evaluated will be considered for a one (I) to five (5) year abatement; F. The applicant and the project must also meet all of the qualification criteria set forth under IC 6-1.1-12.1-1 et seq. within the application forms of deductions from assessed valuation; G. Real property projects will be considered only if construction has not begun and personal property projects will be considered only if the equipment has not been ordered and only if the equipment will be new to the State of Indiana; H. Any individual signing application forms of deduction or statements of benefits must be authorized by the company submitting said forms and statements prior to signing and prior to consideration; I. The following ten (10) principle guidelines are also key considerations the Common Council may evaluate for requests: 1. Firms receiving tax abatement are expected to give local construction firms and local suppliers of goods and services opportunities to do business whenever possible; 2. Firms that create a technology-based product or service or use advanced and/or technology in manufacturing will he given a higher priority; Page 3 of 13 3. The number of jobs retained and/or created per dollar of investment will be an important consideration; 4. The level of wages and benefits will be a highly important consideration for all. applications; 5. Projects that will require variances, special exceptions and/or exemptions will require additional review; 6. Adverse environmental impacts will negatively affect the consideration of abatement; 7. Any need for additional public infrastructure or other additional public support for the project will be considered in determining the length and scale of the abatement. Support of additional infrastructure will be considered as a local incentive to the applicant; 8. The time period of depreciation of equipment will be considered in the length of and scale of any abatement for personal property (equipment, machinery); 9. In the event the company closes and relocates the facility/personal property prior to the expiration of the abatement period, the city council may require the comFany to repay the city all or a portion of the personal property tax savings the company realized as a result of the tax abatement; and 10. A limited tax abatement may be considered in a Tax Increment Finance (TIF) District; J. On a case-by-case basis, and provided that all requirements of Indiana Law are met, the Common Council may deviate from the above-described ten (10) guidelines when considering an increase or decrease in the length of time an abatement for qualified real property investment might be permitted, provided that any increase shall not exceed the maximum ten (10) year cap set forth herein; K. On a case-by-case basis, and provided that all requirements of Indiana Law are met, the Common Council may deviate from the above-described ten (1.0) guidelines when considering an increase or decrease in the length of time an abatement for qualified Page 4 of 13 L. On a case-by-case basis, and provided that all requirements of Indiana Law are met, the Common Council may also utilize the following scoring analysis and scoring tally system when developing the scale and length of any particular abatement which may be granted: PROJECT COMPOSITION: 10 points possible). If more than one scenario applies, use=ix the scenario with the highest point value. POINTS Personal Property improvements 5 Real Property Improvements 5 Personal Property and Real Property Improvements 10 SCORE ACTIVITY DETAIL::15 points possible). If more than one scenario applies, use aaI the scenario with the highest point value. POINTS Existing Facility -new office addition 5. Existing Facility- expanding or upgrading existing product line 5 Existing Facility -adding new product line 10 Existing Facility -addition of manufacturing/warehousing space 10 New Research &Development Facility 15 New Corporate Regional Office or fleadquarters Building 15 New Industrial (manufacturing) Facility 15 SCORE EXISTING VACANT STRUCTURE: (5 points possible). Will this project reactivate a facility that has been vacant,fbr at least 1 2 months? POINTS Location will NOT reactivate a vacant facility 0 Location WILL reactivate a vacant facility 5 SCORE Page 5 of.13 PROJECT CAPITAL INVESTMENT: (20 points possible). What is the total capital investment for this project? Use ill&the applicable scenario with the highest point value. POINTS $.5M -$999,999 5 $1 million- $4,999,999 10 $5 million - 15 $15.1 million or more 20 SCORE JOB RETENTION: (i5 points possible), How many full-time positions will be retained as a result of this project? Use will:the applicable scenario with the highest point value. POINTS I- 19 retained jobs 1 10- 19 retained jobs 2 20-29 retained jobs 3 30-49 retained jobs 50-99 retained jobs 5 100- 149 retained.jobs 1.0 150+or more retained jobs 1.5 SCORE NEW,JOB CREATION: (15 points possible). How many net new JUll-time positions will be created as a result of this project? Use wax the applicable scenario with the highest point value. POINTS 1-19 new jobs 1 20-49 new jobs 5 50-99 new jobs 10 100 or more new jobs 15 SCORE Page 6 of 13 AVERAGE WAGE: (20 points possible). Utilizing the average wage of all flu /-lime positions fir this project and using the current state minimum wage as a benchmark, how does the average wage of this project compare to the current minimum wage? Use wilx the applicable scenario with the highest point value. Note:Minimum starting wage for new and retained jobs must be a minimum of$18/hr. POINTS Minimum starting wage for new and retained jobs-$18/hr 5 2.5 times current minimum wage $18.13 -$21.74 10 3 times current minimum wage$21.75 -$28.99 I 5 4 times current minimum wage(or higher)$29+ 20 SCORE EMPLOYER-SPONSORED HEALTH AND WELLNESS BENEFITS/WORKPLACE WELLNESS: /Op(ints possible). Will the company provide employer-sponsored health and wellness benefits at this location? POINTS Location WILL provic employer-sponsored health and 5 wellness benefits at this location Company WILL provide employer-sponsored health and wellness benefitsand promote workplace wellnessthrough 10 employee participation in exercise and healthy living programs SCORE Page 7 of 13 BENEFITS PACKAGE: (/0 points possible). What percentage of your employees'total compensation package are fringe benefits? Use wilx the applicable scenario with the highest point value. POINTS 1-15% 16-20% 5 21%or higher 10 SCORE DIVERSITY: 5 points possible). Will the company have a diversity and inclusion policy in effect at this location? POINTS Company will NOT have a diversity and inclusion policy at this 0 location. Company WILL have a diversity and inclusion policy at this 5 location SCORE GREEN INITIATIVES AND SUSTAINABILITY ACTIVITIES: (Maximum 10 points possible). Will the company implement programs designed to support sustainability through employee ride sharing, public transportation use, on-site dining options or other initiatives? Does the company have a sustainability policy or a dedicated sustainability position? Please provide a description of all green initiative programs to be utilized at this location here: POINTS Location will NOT implement green initiative programs 0 Location WILL utilize green initiative programs Max 10 SCORE Page 8 of 13 COMMUNITY INVOLVEMENT: (Maximum 10 points possible). The City of Richmond will look Javorably on companies that are involved in the community. The city will consider past and/or current community involvement 0/an existing company or proposed community involvement of-a new company. Community involvement may include projects,,.financial sponsorships, in kind contributions and volunteer ellbris associated with the city, schools, local non-pro/it organizations, senior citizens, disadvantaged individuals or groups, day cares, etc. Community involvement must he documented and applicable documents attached to this Score Sheet. Please provide a narrative of community involvement here: POINTS location will NOT'be supporting projects associated with the city, schools, local non-profit organizations, senior citizens, 0 disadvantaged individuals or groups,day cares,etc. Location WILL be supporting projects associated with the city, schools, local non-profit organizations, senior citizens, Max 10 disadvantaged individuals or groups,day cares, etc. SCORE GUIDELINE FOR PERSONAL PROPERTY TAX ABATEMENT TOTAL SCORE Abatement Year Abatement Percentage I —72(504/0) 1 100% 74—87(51-60%) I 100% 2 50% 88—101 (61-70%) 1. 100% 2 50% 3 40"/0 102— 116(70-80%) 1 100% Page 9 of 13 4 20% 117+(8I%+) 1 100% 2 50% 3 40')/. 4 20% 5 10% GUIDELINE FOR REAL PROPERTY TAX ABATEMENT TOTAL SCORE Abatement Year Abatement Percentage 1 —71 (49%) 1 100"/o 2 7.5"/0 3 50% 4 25% 5 10% 72—86(50-59%) 1 100% 2 80"/o 3 60% 4 40% 5 20% 6 10"/o 87— 100(60-69%) 1 100% 2 80% 3 70% 4 60% 5 40% 6 20% 7 10% Page 10 of 13 101 —115(70"79%) 1 100% 2 90% 3 80% 4 70"/o 5 60% 6 50% 7 40"A 8 20"A 116—122(801-84%) 1 100% 2 90% 3 80% 4 70% 5 60% 6 50% 7 40% 8 30% 9 20% 123—130(85-89%) 1 100% Page 11 of 13 .. .. 2 90% 3 00% � * 70Y� _ � 5 60% 0 50�4 , . 7 4VY� � � x 30% Y 20% lV m% � /31+(90%+) / lOV% 2 95% � 3 90% 4 85� � 5 80� � ' 6 70% � . 7 60% ' - 8 50% � ' 9 �0� � � 10 2V0/o NOW, THEREFORE, bcit ordained hy the Common CooucU of" the City or Richmond, ludiuum as follows: Passed and adopted by the Common Council of the City of Richmond, Indiana, this day of, 2023. ell Prcuidcn1 &TT£S ' ozk Page |2of\3 p (Karen Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, this day of _a 2023, at •9.00 a•in • Clerk (Karen Chasteen, IAMC, MMC) APPROVED me, id M. Snow, Mayor of the City of Richmond, Indiana this day of --- 2023, at • “ ( Mayor ATTES ete (Karen Chasteen, IAMC, MMC) Page 13 of 13