HomeMy Public PortalAbout012-2008 - Tax Abatement - TBK America - equipment.w. exhORDINANCE NO. 12-2008
A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A
STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR
DEDUCTIONS UNDER LC. 6-1.1-12.1
WHEREAS, the Common Council of the City of Richmond, Indiana (sometimes
hereinafter, the "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 the 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; and
WIEREAS, on March 14, 2008, TBK America, Inc. filed a statement of benefits with
the Council on Form SB-1/PP describing a project involving the proposed
installation of new manufacturing equipment at a facility located at 3700
Industries Road, which facility is located in an economic revitalization
area previously designated by the Common Council in Resolution
No. 10-1984, as amended ("TBKA Statement of Benefits"). The TBKA
Statement of Benefits revised, superceded and replaced the statement of
benefits on Form SB-l/PP previously filed by TBK America, Inc. on
February 25, 2008.
NOW, THEREFORE, having reviewed the T13KA Statement of Benefits, the
Common Council of the City of Richmond, Indiana., now makes the following findings
regarding the TBKA Statement of Benefits:
1. The estimate of the cost of the new manufacturing equipment is,
reasonable for equipment of that type;
2. The estimate of the number of individuals who will be employed or
whose employment will be retained can be reasonably expected to
result from the installation of the new manufacturing equipment;
3. The estimate of the annual salaries of those individuals who will be
employed or whose employment will be retained can be reasonably
expected to result from the proposed installation of new manufacturing
equipment;
4. Other benefits about which information was requested are benefits that
can be reasonably expected to result from the proposed installation of
new manufacturing equipment;
5. The totality of benefits is sufficient to justify the deduction; and
6. The Council also finds that installation of the equipment described in
the T13KA Statement of Benefits, dated March 14, 2008, must be
completed within 24 months of the date this ordinance is signed by the
designating body. Further, the abatement hereby approved is limited
to the equipment described in the TBKA Statement of Benefits, dated
March 14, 2008.
THEREFORE, be it ordained by the Common Council of the City of Richmond,
that the TBKA Statement of Benefits, dated March 14, 2008, is hereby approved and that
TBK America, Inc. meets the requirements for property tax assessed valuation deductions
as follows:
MANUFACTURING EQUIPMENT —10 YEARS
TBK America, Inc.
Jobs Retained: 30 (which is the combined total for the entire project as described in
both the TBKA Statement of Benefits hereby approved and in the statement of
benefits approved in Ordinance No. 13-2008)
Jobs Created: 30 (which is the combined total for the entire project as described in
both the TBKA Statement of Benefits hereby approved and in the statement of
benefits approved in Ordinance No. 13-2008)
Estimated Cost: $6,034,400
Dated: March 14, 2008
It is also hereby determined and ordained by the Common Council of the City of
Richmond, Indiana that TBK America, Inc. shall be allowed deductions from the
assessed value of the new manufacturing equipment described in the TBKA Statement of
Benefits over a ten (10) year deduction period.
Passed and adopted this / 7 day of a-,t- 2008, by the
Common Council of the City of Richmond, Indiana.
President
A%—
arty Parker)
ATTEST: Clerk
(Karen Chasteen)
SENTED to the Mayor of the City of Richmond, Indiana, this Zip day of
2008, at 9:00 a.m.
� lerk
(Karen Chasteen)
APPROVE me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
�_ day of 98, at 9:05 a.m.
�' Mayor
(Sarah L. Hutton)
ATTEST:
(Karen Chasteen)
a STATEMENT OF BENEFITS
.
PERSONA!. PROPERTY
• State Form 61764 (R1146)
Prescribed by the Department of Local Government Finance
FORMA S8-1 j PP
PRIVACY NOTICE
The cost and any specific indivMual's
salary information is confidential; the
balance of the filing is public record
per IC 6-1.1-1�_1-6.1 (c) and (d},
WSTRUCTIONS:
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 bodyBEFORIw a person installs the new manufacturing equipment andlorresearch and development equipment, andlorlogistical distribution
equipment and/orinformation 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 6-1.1-12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to lnstalladon of the new manufacturing equipment
andlor 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 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/or research and development equipment andlor logistical distribution equfpment 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 ofthatvear.
4. Property owners whose Statement of Benefits was approved alter June 30, 1991, must submit Form CF-1 / PP annually to show compliance with the
Statement of Benefits. (IC 64.142.1-5.5)
5. The schedules established under IC 6-1.1-12.1-4.5(d) and (e) 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(o and (g))
SECTIO11 I TAXPAYER INFORMA-RO-M
Name of taxpayer
TBK America. Inc.
Address of taxpayer (number and street, city; state, and Z!P code)
1761 Sheridan Street, Richmond, IN 47374
Name of contact person
Tefeohane number
Michele Lindsey
765-962-0147
SECTIONs r AND DESCRIPTION OF -••• r PROJECT
Name of designating body
Resolution number (s)
Common Council of the City of Richmond, Indiana
10-1984; 11-1991
Location of property County
DLGF taxing district number
3700 Industries Road, Richmond, IN 47374* Wayne
Richmond -Center (89-006)
Description of manufacturing equipment andfor research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment.
START DATE s COMPLETION LATE
(use additional sheets if necessary)
Manufacturing Equipment
518108 i 3117110
Numerous items to be used by TBK America, Inc. in its business of
manufacturing water and oil pumps for mainly diesel engines.
See Attachment.*
R g, D Equipment
Logist Dist Equipment
IT Equipment
SECTIONOF EMPLOYEESAND SALARIESAS RESULT OF •r•Or PROJECT
Current number Salaries number retained ' Salaries Number add€tionai Salaries
30* 1,036,956.96* 1 30* 1,0361956.96* 30* 1 1,418-952.00*
SECTIONr
TOTAL COSTAND
VALUE OF -r•r r PROJECT
NOTE: Pursuant to IC 6-1.1-12A-5.1 (d) (2) the
MANUFACTURIhIG
EQUIPMENT
R & D EQUIPMENT
LOGIST LIST IT EQUIPMENT
E UIPMENT
COST of the property Is confidential.
COST
ASSESSED
COST
ASSESSED
COST
ASSESSED COST
ASSESSED
VALUE
VALUE
VALUE
VALUE
Current values
Plus estimated values of proposed project
6,034,400-
2,413,760•
Less values of any property being replaced
Net estimated values upon completion of project 6,034A00' 2.413.760-1
SECTION 5 WASTE CONVERTED AND O-s r BY THE TAXPAYER
Estimated solid waste converted (pounds) 4 Estimated hazardous waste converted. (,pounds) U
Other benerds.,
SECTION
I hereby cent€y that the representations in this statement are true.
Signature of authorized representative
Title ate si
(manLtr, daY. Yoar1
513868Q - - i
*See Attachment
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 resqlution, passed under IC 6-1.1-12.1-2.5, pro-
vides 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 is
B. The type of deduction that is allowed in the designated area is limited to:
1 . Installation of new manufacturing equipment; ®Yes ❑ N o
2. Installation of new research and development equipment; CAI Yes " ❑ No
3 _ Installation of new logistical distribution equipment. ❑ Yes ❑ No
4. Installation of new information technology equipment; ❑ Yes ❑ No
C. The amount of deduction applicable to new manufacturing equipment is limited to $ *(see below) cost with an assessed
value of $
D. The amount of deduction applicable to new research and development equipment is limited to $
an assessed value of $
E. The amount of deduction applicable to new logistical distribution equipment is limited to $
assessed value of $
cost with
cost with an
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) The installation of the equipment described in thb SB-1 mustbe
pompleted within 24 ttionths of the. date bhetor finance is signed by the desk nd'%bod .
>•-t: The deduction for new manufacturing equipment and/or new research and development equipment and/or new loges ca is ion
equipment and/or new information technology equipment installed and first claimed eligible for deduction after July 1, 2000 is allowed
for:
❑ 1 year ❑ 6 years For ERA's established prior to July 1, 2000 pply a
❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted.
❑ 3 years ❑ 8 years
❑ 4 years ❑ 9 years
5 years ** IN 10 years
Also we have rDvwwed the information contained in the statement of benefits and find that the estimates and expectations are reason-
able and h dq rminee totality of benefits is sufficient to justify the deduction described above.
of authorized member) . ITelephone number I Date signed (month, day, year)
�S 5 r 7;?
Designated body
* 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
*The amount of the deduction is limited to the amount approved in the Statement of Benefits
plus an increase of 10% or less over the investment estimate. (per Ordinance 31-2007)
ATTACHMENT TO THE STATEMENT OF BENEFITS/PERSONAE
PROPERTY (FORM SB- I/PP).OF TBK AMERICA, INC. ("TBKA")
This statement of benefits seeks abatement for certain new manufacturing
equipment that TBKA proposes to install during the next two (2) years as part of TBKA's
production operations at a facility located at 3700 Industries Road, if TBKA ultimately purchases
that facility from its current owner. That equipment includes the following: Compressor,
performance tester, wiring for new machines, transformer, assemble lines for F/C, O/P and W/P,
machining lines for F/C (Body), F/C (Pulley), O/P (Cover). O/P (Body), WIP and O/P; molds,
two (2) fork trucks, bar for fork trucks, and two (2) fork truck batteries. (A separate statement of
benefits was fled on February 25, 2005 with respect to the real property improvement
component of TBKA's proposed project. This statement ofbenefits (Form SB-1/PP) revises,
supercedes and replaces the statement of benefits (form SB- UPP) filed on February 25, 2008
with respect to the personal property component of TBKA's proposed project.)
Estimated Total Cost and Assessed Value of Pro used Project
The project "cost" estimates and project "assessed value" estimates are
approximations only based upon the best information currently available regarding the proposed
personal property acquisitions to be made over a two-year period. These cost estimates do not
include the costs of the new manufacturing equipment currently located at TBKA's Sheridan
Street facility, which TBKA proposes to relocate to the 3700 Industries Road facility if it
purchases that facility.
The. estimated "costs" of the new manufacturing equipment on this statement of
benefits are estimates of all such costs that will be capitalized as part of that equipment,
including, but not limited to., labor., materials, process engineering, ,etc. These estimated costs are
merely estimates, and actual costs may vary by ten percent (10%) or more above or below this
estimate. These cost estimates reflect the estimates as of the date of filing of this form and may
vary as final engineering and installation occur.
The estimated assessed values of this personal property reflect the estimated
personal property costs depreciated by sixty percent (60%) to coincide with the current method
of determining the first year assessment of depreciable personal property with a useful life of
five years or more. Please note that the actual assessed values of depreciable personal property
change annually based upon the various true tax value percentage factors prescribed for
depreciable personal property under the applicable Indiana personal property tax regulations.
Also, please note that the actual assessed value of this property will depend on numerous
objective and subjective factors, many of which have not been taken into account in providing
this estimate, and/or will not be known with any certainty until the property is installed.
Furthermore, such assessments will ultimately be determined in accordance with Indiana
property tax laws and regulations. For these reasons, the estimate of assessed values is very
uncertain and the actual assessed values could vary significantly from the estimated assessed
values.
Employment and Salary_Imformation
As noted above, two (2) statements of benefits are being filed with the City
Council of Richmond, one (1) each for the real property and personal property components of the
proposed project, respectively. The employment and salary estimates set forth on each of these
statements of benefits are identical and represent total estimates for the entire project, including
both the real property and the personal property components combined and, therefore, such
estimates are repeated. in both the real property and personal property statements of benefits.
-2-
These employee and salary figures represent total maximum estimated numbers and amounts that
are estimated to result only after the completion of both the real property and personal property
components of the proposed project if the 3700 Industries Road facility is purchased by TBKA.
a
_3_
Form SB-lA
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
TBK America, Inc., 1761 Sheridan Street, Richmond, IN 47374
Contact: Michele Lindsey.
Ile information requested on this supplement to form SB-1 must be completed and submitted
along with your SB-1 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 apart of our monitoring process.
1. Average hourly wage for axis g, employees $ 10.50/hr.*
2. Average hourly wage for proj ected new positions $ '9.001hr*
3. Average hourly health insurance benefit $ Varies"*
1. The length of the abatement you are requesting 10 year
(A 1-10 year abatement may be requested for teal estate improvements and manufacturing equipment.)
2.. Ifpurchasing equipment, please attach a list that includes the following:
* brief description of each piece of equipment being purchased
s 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 egxripucut
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.)
s size of the proposed real estate improvements
costs of the proposed real estate improvements
DEMONS
L Average hourly wage for.wdstbig employees: for your most recent pa3' Period please provide the
average base wage per hour for all current full time, non -supervisory employees. Do not include the
fallowing groups: .
A. part employees;
B. mmagement, supervisors, for€.mm or any other supervisory personnel;
C. owners, stockholders, or partners if #hey own 2°l0 or more of the business, and their
family members.
2. Average hourly wage for projected new positions: Use the same def nition of employees to be included
asm number one above.
3. Average hourly health insurance benefit: Please provide the current company paid health irisuranou
benefits provided to hourly employees (as defined above) and wily mimbarm. Please present in the
form of ati hourly rate computed using the annual cost per eligible employee divided by 2080 bourn.
(Authorized Signature and Title) (Date)
'These. amounts are as of 111/2008, and are subject to periodic change.
'Currently, the Company pays 95% of each employee's health insurance premium and pays 50% of the health insurance
premium for an employee's spouse andfor family. The amount of such premiums varies from employee to employee.
-Please see Attachment.
5138675
ATTACHMENT TO SB-1A OF TBK AMERICA, INC,*
REAL PROPERTY ESTIMATED COSTS
Quality Control Room
30,000
Testing Room
65,000
Other Constructions
1,000,000
Pl mg Wiring
20 OQQ
TOTAL,
1,295,000
NEW MANUFACTURING EQUIPMENT ESTIMATED COSTS**
Co m ressor
250,000
Performance Tester
65,000
Wiring for New Machines
200,000
Transformer
200,000
Assemble Line for FIC
85,000
Assemble Line for O/P
90,000
Machining Line for F/C (BODY)
80,000
Machining Line for F/C (BODY)
260,000
Machining Line for F/C (PULLM
470,000
Machining Line for F/C (PULLEY)
450,000
Machining Line for O/P (COVER)
120,000
Machining Line for 01P COVER)
120,000
Machining Line for OIP (BOD)
250,000
Machining Line for O/P (BODY)
F 250,000
Assemble. Line for W/P
200,000
Machining Line for WIP
470,000
Assemble Line for O/P
280,000
Machining Line for DIP
1,500,000
Mold
150,000
Mold
180,000
Mold
80,000
Mold
220,000
Fork Truck
30,000
Fork Truck
30,000
Bar for Fork Truck
400
Fork Truck Battery 2
0
TOTAL
6,034,400
*Please also see. the SB-1/Real Property (dated2/25108) and the SB-I/PP (dated 3114/08) filed. by TBK America,
Inc. The information set forth in said SB-1 forms and attachmentsis incorporated herein by reference.
**All of this equipment would have an estimated useful life of seven (7) years for federal tax purposes, with the
exception of the fork trucks, bar for fork truck, and fork truck. batteries, which would have an estimated useful life of
five (5) years for federal tax purposes. The estimated useful life of this equipment in production would be greater
than ten (I0) years.
No "used" equipment would be purchased.
Please note that this SB-1A revises, supersedes and replaces the SB.IA previously filed by TBK America, Inc. on
February 25, 2008.
BDDB41 5139342VI
ORDINANCE NO. 12-2008
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 (sometimes
hereinafter, the "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 the 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; and
WHEREAS, on March 14, 2008, TBK America, Inc. filed a statement of benefits with
the Council on Form SB-l/PP describing a project involving the proposed
installation of new manufacturing equipment at a facility located at 3700
Industries Road, which facility is located in an economic revitalization
area previously designated by the Common Council in Resolution
No. 10-1984, as amended ("TBKA Statement of Benefits"). The TBKA
Statement of Benefits revised, superseded and replaced the statement of
benefits on Form SB-1/PP previously filed by TBK America, Inc. on
February 25, 2008.
NOW, THEREFORE, having reviewed the TBKA Statement of Benefits, the
Common Council of the City of Richmond, Indiana, now makes the following findings
regarding the TBKA Statement of Benefits:
1. The estimate of the cost of the new manufacturing equipment is,
reasonable for equipment of that type;
2. The estimate of the number of individuals who will be employed or
whose employment will be retained can be reasonably expected to
result from the installation of the new manufacturing equipment;
3. The estimate of the annual salaries of those individuals who will be
employed or whose employment will be retained can be reasonably
expected to result from the proposed 'installation of new manufacturing
equipment;
4. Other benefits about which information was requested are benefits that
can be reasonably expected to result from the proposed installation of
new manufacturing equipment;
5. The totality of benefits is sufficient to justify the deduction; and
6. The Council also finds that installation of the equipment described in
the TBKA Statement of Benefits, dated March 14, 2008, must be
completed within 24 months of the date this ordinance is signed by the
designating body. Further, the abatement hereby approved is limited
to the equipment described in the TBKA Statement of Benefits, dated
March 14, 2008.
THEREFORE, be it ordained by the Common Council of the City of Richmond,
that the TBKA Statement of Benefits, dated March 14, 2008, is hereby approved and that
TBK America, Inc. meets the requirements for property tax assessed valuation deductions
as follows:
MANUFACTURING EQUIPMENT — I0 YEARS
TBK America, Inc.
Jobs Retained: 30 (which is the combined total for the entire project as described in
both the TBKA Statement of Benefits hereby approved and in the statement of
benefits approved in Ordinance No. 13-2008)
Jobs Created: 30 (which is the combined total for the entire project as described in
both the TBKA Statement of Benefits hereby approved and in the statement of
benefits approved in Ordinance No. 13-2008)
Estimated Cost: $6,034,400
Dated: March 14, 2008
It is also hereby determined and ordained by the Common Council of the City of
Richmond, Indiana that TBK America, Inc. shall be allowed deductions from the
assessed value of the new manufacturing equipment described in the TBKA Statement of
Benefits over a ten (10) year deduction period.
Passed and adopted this day of Q-'t- 2008, by the
Common Council of the City of Richmond, Indiana.
President
arty Parker)
ATTES : Clerk
(Karen Chasteen)
SENTED to the Mayor of the City of Richmond, Indiana, this X� day of
2008, at 9.00 a.m.
lerk
(Karen Chasteen)
APPROVE me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
day of 8, at 9:05 a.m.
Mayor
(Sarah L. Hutton)
ATTEST:
(Karen Chasteen)
STATEMENT OF BENEFITS FORM SB-1 f PP
PERSONAL PROPERTY
State F'orm61764 (tit t-t)6) PRIVACY NOTICE
Prescribed by the Department of Local Government Finance
The cost and any specific individual's
salary information is confidentfat the
balance of the filing Is public record
ICfi11 f215
INSTRUCTIONS: per - 1 (c) and M.
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 andlor research and development equipment, andlor logisticat distrbution
equipment andlor information technology equipment for which the person wishes to claim a deduction. 'Projects" planned or committed to after July 1, 1967,
and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (IC 6-1. i-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 andlor 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/or research and development equipment andlor 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 tiling extension must
Re 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 ofeenefa. (IG6-7.1-12.?-5.5)
5. The schedules established under IC E-1.1-12.1-4.5(d) and (e) apply to equipment installed after March f, 2001. For equipment installed prior to March 2,
2001,. the schedules and statutes In affect at the time shall continue to apply. (IC 6-1.1-12.1-4.5(o and (g))
•'TAXPAYER INFORMATION
Name of taxpayer
TBKAmerica, Inc.
Address of taxpayer (number and street, City state, and ZIP code)
1761 Sheridan Street, Richmond, IN 47374
Name of contact person
Telephone number
Michele Lindsey
765-962-0147
SECTION. • . DESCRIPTION OF -a•e . PROJECT
Name ofdeslgnating body f
Resolution number (s)
Common Council of the City of Richmond, Indiana
10-1984; 11-1991
Location of property County
❑LGF taxing district number
3700 industries Road, Richmond, IN 47374* Wayne
Richmond -Center (89-006)
Description of manufacturing equipment andlor research and development equipment
ESTIMATED
andlor logistical distribution equipment and/or information technology equipment.
START DATE COh9ILETiON DATE
(use addigonal sheets if necessary)
Manufacturing Equipment
5f8f08 3117110
Numerous items to be used by TBIC America, Inc. in its business of
manufacturing water and oil pumps for mainly diesel engines.
See Attachment.*
R & D Equipment
Logist Dist Equipment
IT Equipment
a � a � i • a i•- a
Curteni number Salaries Number retained ' Salaries 1tVumber additional Salaries
30* 1,036,956.96* 30* 1,036,956.96* 30* 1,418,952.00*
SECTION' 4 ESTIMATE D TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT I LOGIST DIST IT EQUIPMENT
E UIPMENT EQUIPMENT
COST of the property Is Confidential. COST I ASSESSED COST ASSESSED COST ASSESSED COST ASSESSE:G
VALUE VALUE VALUE VALUE
Current values
_
Plus estimated values of proposed project
6,034,400"
2,413,760•
Less values of any property being replaced
Net estimated values upon completion of project 6,034,40(r 2,413,760-
CONVERTED AND OTHER BENEFITS
PROMISED B
Estimated solid waste converted (pounds) 0
Estimated hazardous waste converted (pounds) 0
Other benefits:
SECTION
I hereby certify that the representations in this st Mement are titre.
Signature of authorized representative p /� �
�'`
Tgie
� %
ate si (rrronfh, day, year)
5138680 - - - r
"See Attachment
-- - ..... ...
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 Gme not to exceed calendar years ' (see below). The date this designation expires
Is
B _ The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment; ❑ Ye s ❑ N a
2. Installation of new research and development equipment; ❑Yes N o
3. Installation of new logistical distribution equipment. ❑Yes ❑ N 0
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 $ ________ _ _ cost
with an assessed value of $
E . The amount of deduction 2pplicable to new logistical distribution equipment is limited to S 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 (specifyj
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:
01 year ❑6 years "For ERNs established prior to July 1, 2000, only a
❑2 years ❑ 7 years 5 or 10 year schedule may be deducted.
E33 years ❑ 8 years r
i
❑ 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 tl�t the if of benefits is sufficient to justify the deduction described above.
App ea: lire nv We=0M45r1=8drMnambef2 Telephone number t7ate sig ned (month, day, year)
7e1
Mies Desips"d body
If the designating body limits the time period during which an area is an economic revitalization area, It does not Wit 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
ATTACHMENT TO THE STATEMENT OF BENEFITS/PERSONAL
PROPERTY (FORM SB-1/PP) OF TBK AMERICA, INC. ("TBKA")
This statement of benefits seeks abatement for certain new manufacturing
equipment that TBKA proposes to install during the next two (2) years as part of TBKA's
production operations at a facility located at 3700 Industries Road, if TBKA. ultimately purchases
that facility from its current owner. That equipment includes the following: Compressor,
performance tester, wiring for new machines, transformer, assemble lines for F/C, O/P and W/P,
machining lines for F/C (Body), F/C (PuIIey), O/P (Cover), O/P (Body), W/P and O/P; molds,
two (2) fork trucks, bar for fork trucks, and two (2) fork truck batteries. (A separate statement of
benefits was filed on February 25, 2008 with respect to the real property improvement
component of TBKA's proposed project. This statement of benefits (Form SB-1/PP) revises,
supercedes and replaces the statement of benefits (Form SB-I/PP) filed on February 25, 2008
with respect to the personal property component of TBKA's proposed project.)
Estimated Total Cost and Assessed Value of Proposed Project
The project "cost" estimates and project "assessed value" estimates are
approximations only based upon the best information currently available regarding the proposed
personal property acquisitions to be made over a two-year period. These cost estimates do not
include the costs of the new manufacturing equipment currently located at TBKA's Sheridan
Street facility, which TBKA proposes to relocate to the 3700 Industries Road facility if it
purchases that facility.
The estimated "costs" of the new manufacturing equipment on this statement of
benefits are estimates of all such costs that will be capitalized as part of that equipment,
including, but not limited to, labor, materials, process engineering, etc. These estimated costs are
merely estimates, and actual costs may vary by ten percent (100/0) or more above or below this
estimate. These cost estimates reflect the estimates as. of the date of filing of this form and may
vary as final engineering and installation occur.
The estimated assessed values of this personal property reflect the estimated
personal property costs depreciated by sixty percent (601/1o) to coincide with the current method
of determining the first year assessment of depreciable personal property with a useful life of
five years or more. Please note that the actual assessed values of depreciable personal property
change annually based upon the various true tax value percentage factors prescribed for
depreciable personal property under the applicable Indiana personal property tax regulations.
Also, please note that the actual assessed value of this property will depend on numerous
objective and subjective factors, many of which have not been taken into account in providing
this estimate, and/or will not be known with any certainty until the property is installed.
Furthermore, such assessments will ultimately be determined in accordance with Indiana
property tax laws and regulations. For these reasons, the estimate of assessed values is very
uncertain and the actual assessed values could vary significantly from the estimated assessed
values.
KmpIovwent and Salary Information
As. noted above, two (2) statements of benefits are being filed with the City
Council of Richmond, one (1) each for the real property and personal property components of the
proposed project, respectively. The employment and salary estimates set forth on each of these
statements of benefits are identical and represent total estimates for the entire project, including
both the real property and the personal property components combined and, therefore, such
estimates are repeated in both the real property and personal property statements of benefits.
-2-
................
These employee and salary figures represent total maximum estimated numbers and amounts that
i
i
are estimated to result only after the completion of both the real property and personal property
components of the proposed project if the 3700 Industries Road facility is purchased by TBKA.
BDDB01 5139666A
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
TBK America, Inc., 1761 Sheridan Street, Richmond, IN 47374
Contact: Michele Lindsey
Tire information requested on this supplement to farm SB-1 must be completed and submitted
along with your SIM 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 s6ject to review as a part of our monitoring process.
1. Aves•age hourly wage for existing employees s 10.501hr."
2. Average hourly wage for projected new positions $ •9.001hr*
3. Average hourly health insurance benefit Varies"
1. The length of the abatement you are requesting 10 year
(A 1-10 year abatement may be requested for real estate improve metrts and manufacturing equipment.)
2. ifpurchasirng 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 ofcquipmeut
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
DEMMONS
1. Average hourly wage for existing employees: for your snort recent pay Period please provide the
average base wage per hour for all current full time, non -supervisory employees. Do riot include the
following groups:
A. past time, employees;
B. management, supervisors, foremei4 or any other superosory personnel;
C. owners, stockholders_, or partners if they owe 2% or more of the busimss, and their
family members.
2. Average (sourly wage for projected new positions: Use the same definition of employees to be included
as in number ow above.
3. Average hourly health lanuanae benefit: Please provide the current company paid health insurauce
benefits provided to hourly employees (as defined above) and f mdly members. Please present in the
form of an hourly rate computed using the annual cost per eligible employee divider] by 2080 ]:sours.
(Authorized Siguatare and Title) (Date)
-these amounts are as of i!'112008, and are subject to periodic change.
—Currently, the Company pays 95% of each employee's health insurance premium and pays 50% of the health Insurance
premium for an employee's spouse andfor family. The amount of such premiums varies from Employee to employee.
—Please see Attachment. 5138675
ATTACHMENT TO SB-1A OF TBK AMERICA, INC."
REAL PROPERTY ESTIMATED COSTS
Quality Control Room
30,000
Testing Room
65,000
Other Constructions
1,000,000
Piping Wirine
20 000
TOTAL
1,295,000
NEW MANUFACTURING EQUIPMENT ESTIMATED COSTS**
Compressor
250,000
Performance Tester
65,000
Wiring for New Machines
200,000
Transformer
200,000
Assemble Line for FIC
85,000
Assemble Line for OR
90,000
Machining Line for FIC (BODY)
80,000
Machining Line for FIC (BODY)2fi0,000
Machining Line for FIC (PULLEY)
470,000
Machining Line for FIC (PULLEY)
450,000
Machining Line for O/P (COVER)
120,000
Machining Line for 01P (COVER)
120,000
Machining Line for O/P (BODY)
250,000
Machining Line for O/P (BODY)
F 250,000
Assemble Line for W/P
200,000
Machining Line for W/P
470,000
Assemble Line for OIP
280,000
Machining Line for O/P
1,500,000
Mold
150,000
Mold
180,000
Mold
80,000
Mold
220,000
Fork Truck
30,000
Fork Truck
30.000
Bar for Fork Truck
400
Fork Truck Battery (2)
nnn
TOTAL
6,034,400
*PIease also see the SB-l/Real Property (dated 2/25/08) and the SB-I/PP (dated 3/14108) filed by TBK America,
Inc. The information set forth in said SB-1 forms and attachments is incorporated herein by reference_
**All of this equipment would have an estimated useful life of seven (7) years for federal tax purposes, with the
exception of the fork trucks, bar for fork truck, and fork truck batteries, which would have an estimated useful life of
five (5) years for federal tax purposes. The estimated useful life of this equipment in production would be greater
than ten (10) years.
No "used" equipment would be purchased.
Please note that this SB-lA revises, supersedes and replaces the SB-lA previously filed by TBK America, Inc. on
February 25, 2008.
BDDB01 5134342v1