HomeMy Public PortalAbout049-2023 - Special Ordinance - Amending and Combining Abatement reg ` .
COMMON COUNCIL OF THE CITY OF RICHMON0, KNDDANA
ORDINANCE 49-2023
A SPECIAL ORDINANCE AMENDING MINIMUM CRITERIA AND ALTERNATIVE
DEDUCTION SCHEDULES FOR PROPERTY OWNERS REQUESTING
DEDUCTIONS FROM ASSESSED VALUE OF QUALIFIED PROPERTY W1141UN /kN
ECONOMIC REVITALIZATION AREA
YVHGRG/\S, Yury^aot to Indiana Code (|C) 6 1.1'12.1et. ucq.,thcCornrnonCouociio[<beCiLy
o[Kich000nd, Indiana(hereinafter"Common Counoi|"�)usa designating body may
find that u particular area within tbc City is an Economic Revitalization Area
which provides as an ou000rniu development incentive certain property tax
dccluctions 1`6r the redevelopment or rehabilitation of qualified real property or the
installation n[novvo,qualified personal property equipment; and
YV|{2RE/\B' Tbc [onnrnoo Council has previously adopted Resolution No. 10-1984 which
designates certain areas in the City as I.,"connroic Revitalization /\ccuo and sets
forth certain procedures for an owner to obtain certain deductions therein; and
VVBE'KGA3, Rcmu&uiion No. 10'1984 has previously been amended to add other areas as an
ERA; making definition changes tn tile original ordinance, setting forth the tioxe
periods in which n deduction is allowed, and establishing other procedures for
obtaining deductions (see Resolutions 2-1987, 11-1989. l | 1991, 3-1990,
Ordinances 72'l99b, 9U-\906, 113-1997, 19'2000, 29'2006, 31-2007, 76-2011,
05'20|3, and 66'20|3); and
Wli6DE/\8, Indiana luvv has previously a||nvvcd the owners of qualified real property and
qualified permuno| property located within an ccononnic revitalization area to
request deduction over one (|) to |cn <101 year period and has previously
established the ahuieoncnideduction schedules tor real property deductions and
personal property deductions; and
WHEREAS, Abatement deduction schedules for quuliUcd real property and qualified personal
property are set fbrth and outlined by Indiana Luv/ and the Common Council, aa
the dcxiguudug body, may approve the number of' years any given deduction
applicant may take un approved deduction; and
. .
VVHER�EE/\8, As oct forth in the above-referenced Resolutions and (}nJiouncox, [onunoom
Council, as the designating body, has previously determined the applicable hnx:
pcdwd and ycu|c within each Special Ordinance approving specific Statement of"
Benefits; and
VV1lBl{6/\S, IC, 6-1.1-12.1-1 et seq. has also provided a designating body flexibility to approve
on alternative ubnienoentdeduction schedule ou either qualified real estate and/or
quu\'jlcd personal property to o business that is established in, n, relocating |* an
coonoonic revitalization area and receives deduction and Common Council, in
accordance with said Indiana Code, approved and passed Ordinance No. 76'201 |
on January 17, 2012 with the most recent uodu1r to the x|<crou1ivm aboterocot
deduction schedule having been approved through Ordinance No. 17'2018v/hicb
passed onMarch |9, 20|8; and
VV}{ER2/\S, [C6-),l'l2.l'l7uetuDor1h \hatihcC0000nonCounci\ us\bcdcmigootiughodynoay
prov-de to a business that is catuh|i,hcd in of-relocated to urcvita|izaiiou area and
that receives u deduction under|C6-l.\'|2.|'4nclC6-|.\'\2.|'4.junabatement
schedule based on certain [actors with the most recent update to the rnioinoumo
criteria having been approved through Ordinance No. 29'2021 which passed on
July 6, 202|; and
\VBEKE/\S, The C000noou Council as the designating body developed u scoring analysis and
scoring tally system which updated, revised, and combined the above-described
minimum criteria and alternative abatcnnco\ deduction schedules which passed
through Ordinance No. 19-2023 and which passed on April 27, 2023; and
VVUBR6/\S, It is in the hcmt interests nfthe cidzeoun[tbc City VfRichmond, Indiana, that the
Conwnoo Council update the minimum and alternative deduction criteria for each
o[ihic factors to be considered for qualified pccxooa\ property and for qualified
rcu|eutu1e deductions permitted by {C6'l.l'lZ.| e1acq. contained inapplications
received subsequent tn the passage oftbix Special Ordinance.
NOW, T41FKEFO9L11, 13B |T OKD/\|NBO by, the [nnonoou Council of the City of
Richmond, indionu, that, in accordance with |C 0'1.1'12.1 et ucq., the [b||ov/ing criteria,
guidelines, and puim1-bused scoring xymhcro xhuD be updated as set forth herein to be utilized by
the Common Council fior the deduction schedules of qualified personal property and of'qUalified
nou| cukdo dcduutiozo which nouy be permitted to dcLconinc both the scale and length of any
abatement which may bcgranted:
Pngc2vf|3
A. Real property abatements will be evaluated only ifthe qualified investment is u noinirnuon
o[Five Hundred Thousand Dollars ($500.000.00);
8, Personal property abatcnients will be evaluated only it' the qualified invcxtnoo1 is o
roiniouunn o[Fbvc Hundred Thousand Dollars ($50U,0OO.00);
C. Requests containing both ncu> property and personal property applications will he
evaluated only if the qum|iOcd investments as u whole are a minimum o[ Five l|undrod
Tbououud Dollars ($50U,O00.00);
U. Ouu|iOcd real property abatements io bc evaluated will be considered for one (|) k` ten
(l0) year ohatunocoi;
E. Qualified personal property abatements to be evaluated will be considered for a one (I) to
five (5) year abatement;
�. The applicant and the pr jCctnnustu|ao meet all ofthe qualification criteria set forth under
lC8'\.\'|2.\'l et seq. within the application forms of deductions frorn assessed valuation;
G. Real property pr Jcctov/i|| bcconsidcrcdon|yi[conmtruciioohumuotbcgunandpeoona|
property pr cctsvvi|| heconoidcrcdnn|yifihccguipoucntbuonutbccnurdcrodundonly
i[the equipment will be new tnthe State u[Indiana;
g. Any iodividuul signing application [brnus of deduction or xta1cnocnis of benefits nnooi be
authorized by the company submitting said forms arid statements prior to signing and prior
to consideration;
i, The following guidelines are also key considerations the Common Council may evaluate
for requests:
l Pimno receiving tax ubu1erocnt o/c expected to give local construction Ornoo arid
\nco| suppliers of goods and services opportunities to do business xbcocvcr
possible;
2. The number of jobs cctuucd and/or orcu\sd of' investment will be an important
considcrubun;
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`
l The |cvc| ofvvugco and boocfik will he o highly important consideration K`rul|
applications;
4. ProJects that will require variances, special exceptions and/or exemptions will
require additional review;
5. Adverse cnvirvonncniui impacts will negatively uOcci the consideration of'
abatement;
6. Any need for additional public infi-astrUCtUre or other additional public support for
the cotv/i|| beonnmidcredindcieoniniogthe length and scale mfthcubutcnnum\.
Support ofadditional int'raoLroctorepvi|i be considered as u |ooal incentive to the
applicant;
7. The linuc period ofdepreoia1ionot"cquipnncn( will be considered in the length of
and scale of any abatement for personal property (equipment, machinery);
8. In the event the company closes and rc|ocuicx the fbci|iiy/pccxooz\ property prior
to the expiration of the uhu0cnueoi period, ihc city council may require the
company to repay tile city all or a portion of'the personal property tax savings the
company realized omo result nf tile tax abatement; and
9. /\ limited tax abatement may fie considered iuuTax lourenoeo< Finance (T|F)
District;
J On o case-by-case basis, and provided that all requirements of Indiana Law are nori, the
Common Council may deviate from the ubove'duocrihcd ten (lO) guidelines when
considering an increase or decrease in the length of time an abatement tor qualified real
property investment might ho permitted, provided that any increase shall not exceed the
maximum ico (iO) year cap set Forth herein;
K. On u case-by-case basis, and provided that all requirements of Indiana l.uvv are nnct, the
Common Council may deviate Ororn the above-described ten (lO) guidelines when
considering an iocccuuc or decrease in the |cog1h of time an uhatcrnru< fbr qualified
personal property invcxtnuco( noigbi be permitted, provided that any increase shall not
exceed the ooaxirnurn five (5) year cap set forth herein;
P*gc4nfl]
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). lltnore than one scenario applies, use wax the
scenario with the highest point value.
POINTS
Personal Property Improvements 5
Real Property Improvements 5
Personal Property awl Real Property Improvements 1.0
SCORE
ACTIVITY DETAIL: 15 points possible). If more than one scenario applies, use au 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 1.5
New Corporate Regional Office or Fleadquarters Building 15
New Industrial(manufacturing) Facility
15
SCORE
EXISTING VACANT STRUCTURE: (5 points possible). Will this protect reactivate a jacility
that has been vacanflar at least 12 months?
POINTS
Location will NOT reactivate a vacant facility 0
Location WILL reaaivate 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 wax the applicable scenario with the highest point value.
P 01:NT S
$.5M -$999,999 5
$1 million- $4,.999,999 10
$5 million- $15 million 15
$15.1 million or more 20
SCORE
JOB RETENTION: (15 points possible). flow many net All-time positions will be retained,as a result of
this project? Use wathe 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
NEW JOB CREATION: (15 points possible). flow many net new fitll-time positions will be created as a
result()Phis project?1/se=Ix 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
•
STARTING WAGE: (20 points possible). Use unix the applicable scenario with the highest point
value. Note:Mininunn starting wage for new and retained jobs must he a minimum of$18/hr.
POINTS
$18.00- $19.99 5
$20.00-$24.99 10
$25.00- $29.99 15
$30± 20
SCORE
EMPLOYER-SPONSORED HEALTH AND WELLNESS BENEFITS/WORKPLACE WELNESS:
10 points possible). Will the company provide employer-sponsored health and wellness benefits at this
location?
POINTS
Location will NOT provide employer-sponsored health and wellness
0
benefits at this location
Location WILL provide employer-sponsored health and
wellness benefits at this location
Company WILL provide employer-sponsored health and
wellness benefitsandpromote workplace wellnessthrough 10
employee participation in exercise and healthy living
programs
SCORE
BENEFITS PACKAGE: (10 points possible). What percentage of your employees'total
compensation package are fringe benefits? Use wi the applicable scenario with the highest
point value.
Page 7 of 1.3
POINTS
1-15%
16-20% 5
21%or higher 1.0
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 sustainahility 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 1.0
SCORE
Page 8 of 13
COMMUNITY INVOLVEMENT: (Maximum 10 points possible). The City of Richmond will look.
favorably on companies that are involved in the community. The city will consider past and/or
current community involvement of an existing company or proposed community involvement of a
new company. Community involvement may include projects,financial sponsorships, in kind
contributions and.voltinteer efforts associated with the city, schools, local non-profit organizations,
senior citizens, disadvantaged individuals or groups, day cares, etc. Community involvement must
be 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 rson-profit organizations, senior citizens, 0
disadvantaged individuals or groups,day cares,etc.
•
Location Wild,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
1 —72(50%) 1 100%
74—87(5.1-60"/o) 1 100%
2 50%
88—101 (61-70%) 1 100%
2 50%
3 40%
102—116(70-80%) 1
2 100%
50%
Page 9 of 13
3 40%
4 20%
1.17+(81"/0+) 1 100"A.
2 50%
3 40%
4 20"/o
5 10%
GUIDELINE FOR REAL PROPERTY TAX ABATEMENT
TOTAL SCORE Abatement Year Abatement Percentage
1 —71 (49"A)) 1 100%
2 75%
3 50%
4 25%
5 IVA)
72—86(50-59"/o) 1 100"A)
2 80°A)
3 60°A)
4 40%
5 20%
6 10"A)
87— 100(60-69"/0) 1 100%)
2 80"A)
3 70%
4 60%
5 40°A)
6 20"4
Page 10 of 13
7 10"/o
101 — 115(70-79%) 1 100"/
2 90`/o
3 80"/o
4 70"/o
5 60"/"
6 50%
7 40%
8 20%
116—1.22(80-84%) 1 100%
2 90"/
3 80%
4 70`A
5 60%
6 50%
7 40`%,
8 30%
9 20"/o
Page 11 of 13
. .
/23-130(85-89%) | 100%
% 9U1Y0
'
3 80%
4 70%
5 60%
6 50%
7 40%
8 JV'Yo
9 %V�4
� .
|O |V}t
_
131+(90%.+) � / _ lxU'Yo _
% o��
J 90m
'
4 85m
5 80%
h 70m
7 ^0'Yo
8 50%
9 40%
_
m 20%
NK}VV, THEREFOR1.11, hcit ordained kv the [mronuonCounci| ofthe City ot Richmond, |odinmt,
as follows:
Passed and adopted by dle Common (Ounci| of' the City of' Richmond, Indiana, this
dayo 2023.
/ Pncsidco1
Page 12of8
^ ^
AOIIS
PRES the City of Richmood, Indiana, this Jvv of
23, at9:00um.
|urk
(}{arcn(�hudccn, kA\�C, P4��C)
/\PpKO\/SU by noc, David M. Snow, Mayor of the City of Richmond, Indiana this
day of , 2023, m19,il:;iz��'
^[ foe,
Mayor
no
ATTE8 Oe
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