HomeMy Public PortalAbout041-2012 - Tax Abatement - Vandoor - equipmentC1]�7i►/.7���aC��li �►�sT�
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, 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.
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, 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 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:
EQUIPMENT — 10 YEARS
Vandor Corporation
Jobs Retained: 47
Jobs Created: 2
Estimated New Value: $2,471,790.00
Dated: June 26, 2012
Passed and adopted this �� day o 2012, by the Common
Council of the City of Richmond, Indiana.
President
flip Matthew Quinn)
ATTE T:e�001 d' IV
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of ,
2012, at 9:00 a.m.
(Karen Chasteen, IAMC, MMC)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana,
2012, at 9:05 a.m.
W445��,Mayor
(Sarah L. Hutton)
A
(Karen Chasteen, IAMC, MMC)
this -�' day of
STATEMENT OF BENEFITS
RECEIVED JUL 0
PERSONAL PROPERTY
'trJFx State Form 51764 (R 11-06)
Prescribed by the Department of Locai Government Finance
INSTRUCTIONS:
FORM SBA 1 PP
PRIVACY NOTICE
The cost and any specific individual's
salary information is confidenfal; the
balance of the filing Is public record
per IC 6-1.1-12.15.1 c and d .
1, This statement must he submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in maidng 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, requira a STATEMENT OF BENEFITS.
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/orresearch 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 person's 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/ar 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. (IC 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 6-1.1-12.1-4.5(t) and (g))
I TAXPAYER INFORMATION
SECTION
Name of taxpayer
VANDOR CORPORATION
Address of taxpayer (number and street, city, state, and ZIP code)
4251 W INDUSTRIES ROAD RICHMOND, IN .47374
Name of contact person
1
Telephone number
CYNTHIA STAMPER
765-966-7676 01, 20#1
SECTION 2 LOCATION . DESCRIPTION OF PROPOSEDPROJECT
Name of designating body
COMMON COUNCIL OF THE CITY OF RICHMOND, IN
Resolution number (s)
10-1984; 11-1991
Location of property County
DLGF taxing district number
4251 W INDUSTRIES ROAD j WAYNE
RICHMOND
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
START DATE
COMPLETION DATE
and/or logistical distribution equipment and/or information technology equipment.
(use additional sheets if necessary)
Manufacturing Equipment
6 / 29 / 12
6 / 29 / 14
SEE ATTACHED
R & D Equipment
Logist Dist Equipment
LIT Equipment
SECTIONOF • AND SALARIESAS RESULT OF -••• . PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
47 1,457,722 47 1 1,457,722 1 2 44,000
PROPOSEDSECTION 4 ESTIMATED TOTAL COSTAND VALUE OF PROJECT
NOTE: Pursuant to 1C 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT
1 QUIPMENT EQUIPMENT
COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED
VALUE VALUE VALUE VALVE
Current values
Plus estimated values of proposed project
2 471
90
Less values of any property being replaced
Net estimated values upon complaton of project
SECTION• OTHER BENEFITS
PROMISED
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits:
CERTIFICATION
I hereby certify that the representations in this statement are true.
Sigma of a oriz repr tative
Title CFO
Date signed (month, day, year)
DUNE 26, 2012
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 below). The date this designation expires
B . The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment; ❑Yes Elmo
2. Installation of new research and development equipment; ❑Yes N o
3. Installation of new logistical distribution equipment. ❑YQ s ❑ N o
4. Installation of new information technology equipment; ❑Yes N o
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 $
F. The amount of deduction applicable to new information technology equipment is limited to $
G. Other limitations or conditions
cost
cost with an assessed value of
cost with an assessed value of
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 ❑ 6 years ` For EMs established prior to July 1, 2000, only a
❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted.
❑ 3 years ❑ 8 years
❑ 4 years El 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.
Appr dd suture d e of authorized member) -releR4ane number Date sig a (mont day, year)
by:
* 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
Form SB-1A
y City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name and Address: Vandor Corporation
The information requested on this supplement to form SB-1 must be completed and submitted
along with your SBA in order for your tax abatement request to be considered by Richmond
Common Council. Please retain your records and calculations used to arrive at the information
requested on this form. It is subject to review as a part of our monitoring process. .
1. Average hourly wage for existing employees 12.03
2. Average hourly wage for projected new positions 11.00
3. Average hourly health insurance benefit 5.34
JI`�YIYr �`
The length of the abatement you are requesting 10 YEAR
(A 9-10 year abatement may be requested for real estate improvements and manufacturing equipment.)
2. If purchasing equipment, please attach a list that includes the following:
brief description of each piece of equipment being purchased
• the projected useful life of each piece of equipment
• the state(s) in which the equipment is being brought into Indiana from if purchasing
used equipment
• the cost of each piece of equipment .
3. If making real estate improvements, please provide a list that includes the following:
• brief description of the real estate improvement (new construction, rehab, expansion, etc.)
• size of the proposed real estate improvements
• costs of the proposed real estate improvements.
DEFINITIONS
1. Average hourly wage for existing employees: for your most recent pay period please provide
the average base wage per hour for all current full time, non -supervisory employees. Do not
include the following groups:
A. part time employees;
B. management, supervisors, foremen, or any other supervisory personnel;
C. owners, stockholders, or partners if they own 2% or more of the business,
and their family members.
2. Average hourly wage for projected new positions: Use the same definition of employees to
be included as in number one above.
3. Average hourly health insurance benefit: Please provide the current company paid health
insurance benefits provided to hourly employees (as defined above) and -family members.
Please present in the form of an hourly rate computed using the annual cost per eligible
employee divided by 2080 hours.
CHIEF FINANCIAL OFFICER
(Authorized Signature a'nd Title)
JUNE 26, 2012
(Date)
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