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HomeMy Public PortalAbout013-2008 - Tax Abatement - TBK America - Real Estate.w. exhORDINANCE NO. 13-2008 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 completion of the real estate improvements described in the SB- 1, dated February 25, 2008, must be completed within 24 months of the date this ordinance is signed by the designating body. Further, the abatement is limited to the real estate improvements listed in the SB-1, dated February 25, 2008; and WHEREAS, on February 25, 2008, TBK America, Inc. filed a statement of benefits with the Council on Form SB-1/Real Property describing a project involving proposed real property improvements 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"). 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 value of the redevelopment or rehabilitation is reasonable for projects of that nature; 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 proposed described redevelopment or rehabilitation; 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 described redevelopment or rehabilitation; 4. Other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and 5. The totality of benefits is sufficient to justify the deduction. 6. That completion of the real estate improvements described in the SB- 1, dated February 25, 2008, must be completed within 24 months of the date this ordinance is signed by the designating body. Further, the abatement is limited to the real estate improvements listed in the SB-1, dated February 25, 2008. THEREFORE, be it ordained by the Common Council of the City of Richmond, that the TBKA Statement of Benefits, dated February 25, 2008, is hereby approved and that TBK America, Inc. meets the requirements for property tax assessed valuation deductions as follows: REAL ESTATE IMPROVEMENTS —10 YEARS TBK America, Inc. 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 redevelopment and rehabilitation of real property described in the TBKA Statement of Benefits over a ten (10) year deduction period. Passed and adopted this /% day of ��- env , 2008, by the Common Council of the City of Richmond, Indiana. President (Larry Parker) ATTE �T.' f City Clerk (Karen Chasteen) `— PRESENTED to the Mayor of the City of Richmond, Indiana, this /Sl day of 2008, at 9:00 a.m. Clerk (Karen Chasteen) APPROVE by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this I day of 2008, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTES : Ik i Clerk wren Chasteen) STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS +� State Farm 51767(fi211-07) ' Prescribed by the Department of Local Government Finance `(*` This statement is being completed for real property that quallfies under the following Indiana Cade (check one box)_ ® Redevelopment or rehabilitation of real estate, improvements (IC 6-1.1-12.1-4) © Eligible vacant building (IC 6-1.1-12.1-4.8) 20_ PAY 20 FORM 88-11 Real Property 'Sae Estimated Project Dates in Section 2 below, INSTRUCTIONS. 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. 01han0se this statement must be . submitted to the designating body BEFORE the redevelopment or rehabilitation ofreal property for which the person wishes to claim a deduction. Projects'planned or committed to after July 1, 1987, and areas designated after Jury 1, 1987, require a STATEMENTOF SENE'F17'S. (IC 6-1.1-12.1) 2. Approval of the designating body {City Council, Town Board, County Council,. etc.) must be obtained prior to lnNadon of the redevelopment or rehabr7itation, BEFORE a deduction maybe approved. 3. To obtain a deduction, application Form 322 E AIRJ= or Form 322 ERAIVBD, Whichever is applicable, must be filed with Hie County Auditor by the later of.• (1) May 10; or (2) Ihiity (30) days after the notice of addition to assessed valuation or new assessment is mailed to the property owner at the address shown On the records ofthe township assessor. 4. Property owners whose Statement of Benefits was approved alter June 30, 1991, must attach a Form t;F-1/Real Property annually to the application to show compliance with the Statement of Benefits. 7C 6-1.1-12.1.5.1(b) and IC ti•i. i-121-5.3(j)f 5. The schedules established under IC 5-1.1-1214(d) for rehabilitated pniperty and under IC 6-1.1-12. f-4.8(l) for vacant buildings apply to any statement of benefits approved on orafter July 1, 2000. The schedules effective prior to July 1, 2000, shall continue to apply to a statement ofbenerrts filed before July 1, 2000. SECTION I TAXPAYER iNFORMATIOM Name of taxpayer TBK America, Inc. Address of taxpayer (nwnberand street city{ state, and ZIPcode) 1761 Sheridan Street, Richmond, IN 47374 Name of oontact person Telephone number E-mail address - Michele Undsey 765-962-0147 , michete_lindseya@tbkamerica.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designatIng body Resolution numbs[ 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 feat property improvements, redevelopment, or rehabilitation (use additional sheets i(necessary) Estimated start date (month, day, year) QC Room Remodel offices 5/6108 Testing Room aflmatea complefti date (month, day year) Piping wiring See Attachment* 7f1108 SECTION. . i SALAR15SAS RESULT OF PROPOSED PROJECT Currentnumher Salares Number retained Salaries NumberadditlonaI safartes. 30` 1,036,956.96* 30* 1,036,956.96* 3W 1,418,952.00SECTION 4 ESTIMATED -1 OTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant Lo IC 6-1.1-12.1-5.1 (d) (2). the COST of the properly REAL. ESTATE IMPROVEMENTS is confidential- COST ASSESSED VALUE Current values Plus estimated values of proposed project 1,295,000* See Attachment" Less values of any property being replaced Net estimated values upon completion of project 1,295,000* See Attachment* SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY Estimated solid waste converted (pounds) 0 Estimated hazardous waste converted (pounds) 0 Other benefits r SECTION • [ hereby certify that the .represen ons 16.this statement are true. Signature of authorized represertat Tills Date signed (month, Vag or) :�a I Page 1 of 2 5138762 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, 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 . Redevelopment or rehabilitation of real estate improvements; � Yes ©N o 2. Residentially distressed areas ❑ Yes ❑ N o C .The amount of deduction aoolicable for redevelopment or rehabilitation is limited to $ * ( See Below) cost with an assessed value of $ D. Other limitations or conditions (specify) h e t n Agg 1 ust b� c o�tp leted_withi4 24 months of the date the ordinance is signed by the des lso tYfe contained in the statement of benefits and find that the estimates and expectations are reason- we reviewed information able and have determined th2Lt e totality of benefits is sufficient to justify the deduction described above. Approved: (signa and memb r) Telephone number Date signed (month, day, year) 7faLdhotized Atte ed 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. the gnating ody. *The amount of the deduction is limited to the amount approved in thb Statement of Benefits plus an increase of 10% or less over the investment estimate. (per Ordinance 31-2007) RECEIVED FEB 2 5 2088 Form SIB -IA City of Richmond, Indian a Taxpayer Wage & Benefit Information Company dams, Address & Contact Person: "f BKAmerica, Inc., 1761 Sheridan Street, Richmond, IN 47374 Contact: Michele Lindsey The information requested on this supplement to form S13-1 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 a part of our monitoring process. 1. Average hourly wage for existing employees 10.50/hr.* 2. Average hourly -wage for projected new positions •9.00/hr * -3. Average hourly health insurance benefit Varies'" 1. The length of the abatement you are requesting 10 year (A 1 10 year abatement maybe requested for reaiestate improvements and rnONfacturing.equipment.) 2. If pwchasing 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 _ + . tfie states) in which the equipment is being brought into Indiana from if purchasing used oq*pxneirt ■ the cast of each piece of equipment 3. If makb* real estate improvements, please provide a last tha# 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 seal estate improvements DOMMONS .1. Average hourly wage for existing employees: for yowr most recent payperiodplease provide the average base wage per hour for all current full time, non supervisory employees. bo not include the following groups: A. part time employees, H. management, supervisors, foremen, or any other supra visory personnel; C, owners, stockholders, ar partners if they own 2°/a or more of the buslness, 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 bitefit: Please provide the current company paid health %nsurarrce benefits provided to hourly employees (as defined above) and family members. Please present in the foroa of art ho ly rate computed lasing the annual cost per eligible employee divided by 2080 hours. (Au tho#zeTSignature and Title) (Date) 'These amoun are as of 1/1/2008, and are subject to periodic change_ 'Currently, the Company pays 95% of each emplayee's health insurance premium and pays 50% of the health insurance premium for an empfoyee's spouse and/or family. The amount of such premiums varies from employee to employee.-5438675 ATTACIal TENT TO SB-IA OF TBK AMERICA, RICA, INC.* REAL PROPERTY ESTIMATED COSTS Quality Control Room 30,000 Testing Room 65,000 Other Constructions 1,000,000 Piping Wiring 200 00 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 F/C 95,000 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 FIC (PULLEY) 470,000 Machining Line for F/C PULLEY 450,000 Machining Line for 0,? (COVER) 120,000 Machining Line for OR COVER 120,000 Machining Line for O/P (BODY) 250,000 Machining Line for O/P (BODY) 250,000 Assemble Line for W/P 200,000 Machining Line for W/P 470,000 Assemble Line for O/P 280,000 Machining Line for 0/P 1,500,000 Mold 150,000 Mold 180,000 Mold 80,000 Mold 220.000 TOTAL 5,970,000 NEW LOGISTICAL. DISTRIBUTION E UIPN ENT ESTIMATED COSTS*** Fork Truck 30,000 Fork Truck 30,000 Bar for Fork Truck 400 Fork Truck Batte {2 4 0 TOTAL 64,400 NEW INFORMATION TECHNOLOGY EQUIPMENT ESTIMATED COSTS*** New Telecommunication System SO 0 0 TOTAL 50,000 *Please also see the S13-1/Real Property and SB-I/PP filed by TBK America, Inc. The information set forth in said } SB-1 fortes and attachments.is incorporated herein by reference. .**This equipment would have an estimated useful life of seven (7) years. ***This equipment would have an estimated useful life of five (5) years. No "used" equipment would be purchased. BDDB03 5139342vi ATTACHMENT TO THE STATEMENT OF BENEFITS/REAL ESTATE IMPROVEMENTS (FORM SB_JfREAL PROPERTY) OF . TBK AMERICA, INC. ("TBKA") This statement of benefits seeks abatement for certain proposed real estate improvements proposed to be made by TBKA to the facility at 3700 Industries Road, if TBKA ultimately purchases that facility from its current owner. This project includes the following possible improvements: Improvements and remodeling for Quality Control Room, Testing Raom, and pipinglwmng,. as well as other possible construction to make the facility compatible with the TBKA's operations, including possible-.offiice remodeling_ (A separate statement of benefits is being filed with respect to the personal property component of TBKA's proposed project.) Estimated Total Cost and Assessed Value of Proposed Proiect The project "cost".estimate of $1,295,000 is an approximation only, based upon the best information currently available. These estimates only include the estimated costs of the proposed real property improvements to be made by TBKA to the facility. This statement of benefits seeks real property abatement that is in addition to the real property abatement that currently exists on the 3700 Industries Road facility, which current abatement TBKA will also be entitled to claim if it purchases that facility. The estimate of "cost" of real estate improvements on the statement of benefits is an estimate of all costs that will be capitalized as part of the real estate improvements, including, but not limited to, labor, niaterials, construction management fees, architectural/engineering fees, etc. The estimated cost of $1,295,000 is. merely an estimate, and actual cost 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 construction occur. Furthermore, after inspection of the 3700 Industries Road facility by contractors, it may be determined that certain expenditures may not be necessary, and TBKA reserves the right to amend this statement of benefits if such cost estimates are significantly reduced. Any meaningful estimate of the assessed value of the proposed real property improvements is not possible at this time. The actual assessed value of this property will depend on numerous objective and subjective factors, many of which will not be lmown with any certainty until the real estate improvements are completed and assessed. The actual assessed value resulting from these proposed real estate improvements will, of course, ultimately be determined in accordance with Indiana property tax laws and regulations. However, for purposes of this statement of benefits, the estimate of the additional assessed value that could result from the real property improvements described herein is being estimated as 50% of the estimated cost of such improvements, i_e_, 50% of $1,295,000 or $647,500, Again, for the foregoing reasons, this estimate of assessed value is very uncertain and the actual assessed value could vary significantly from such estimated assessed value. Employment and Salmy 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. These employee and salary figures represent total maximum estimated numbers and amounts that -2- BDDB41 5139704v 1 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. -3- ORDINANCE NO. 13-2008 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-I 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-I; and WHEREAS, on February 25, 2008, TBK America, Inc. filed a statement of benefits with the Council on Form SB-I/Real Property describing a project involving proposed real property improvements 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"). 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: I. The estimate of the value of the redevelopment or rehabilitation is reasonable for projects of that nature; 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 proposed described redevelopment or rehabilitation; 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 described redevelopment or rehabilitation; 4. Other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and 5. The totality of benefits is sufficient to justify the deduction. THEREFORE, be it ordained by the Common Council of the City of Richmond, that the TBKA Statement of Benefits is hereby approved and that TBK America, Inc. meets the requirements for property tax assessed valuation deductions as follows: REAL ESTATE HAPROVEMENTS — 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. 12-2008) Jobs Created: 0 Estimated Cost: $1,295,000 Dated: February 25, 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 redevelopment and rehabilitation of real property described in the TBKA Statement of Benefits over a ten (10) year deduction period. Passed and adopted this 12 day of 1/)_7 e- [� , 2008, by the Common Council of the City of Richmond, Indiana. President (Larry Parker) ATTE T: ity Clerk (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this _/g/ day of 2008, at 9:00 a.m. y Clerk (Karen Chasteen) APPROVE by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of 2008, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTEST: i Clerk aren Chasteen) STATEMENT OF BENEFITS 1pk�087� READ. ESTATE IMPROVEMENTS 6 State Form 51767 (R211-07) Prescribed by fhe Department of Local Government Finance This statement is being completed for real property that quallfies under the following Indiana Code (check one box) ® Redevelopment or rehabilitation of real estate. improvements (IC 6-1.1-12.1-4) © Eligible vacant building (IC 6-1.1-12.1-4.8) 2fl_ PAY 20� FORM 513•1 I Real Property *See Estimated Project Dates in Section 2 below. INSTRUCTIONS. 1. This statement must be submitted to the body designating the lconomic Revitalization Area prior to the public headng 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 designafing body BEFORE the redevelopment or rehabilitation ofreal property 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.. fIC 6-1.1-12.1) 2. Approval of the designating body (Ci(y Council, Town Board, County Coundl, etc.) must be obtained prior to Initiation of the redevelopment or rehab,?itation, BEFORE a deduction may approved. 3: To obtain a deduction, appfieaflon Form 322 ERAIRE or Form 322 J=RANBA, Micheveris applicable, must be. filed with the County Auditor by the later of. (1) May 10, or (2) thirty (30) days after the notice of additfon to assessed valuation or new assessment is mailed to the property owner at the address shown on the records of the township assessor. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF-IlReal Property annually to the application to show compliance with the Statement of Benefits, f!C 6-1. t-12.1-5.1(b) and 1C 8-f.1.12.1-5.3(D] 5. The schedules established under IC 6-1.1-12.1-4(d) for rehabilitated property and under IC 6-1.1-12.1-4.6(1) for vacant buildings apply to anyslatement of benefits approved on or after July 1, 2000.:The schedules effective prior to July 1, 2000, shall continue to apply to a statement ofbenefrts filed before SECTIONINFORMATION Nam of taxpayer TBK America, Inc. Address of taxpayer (humberand street city, state, aird zlPcoda) 1761 Sheridan Street, Richmond, IN 47374 Name of contact person Telephone number Email address .. Michele Lindsey 765-962-0147 . michele Ilndsey@tbkameiica.com SECTION• • • DESCRIPTION OF •••s • PROJECT Name of designating body Resolution number.' Common Council of the City of Richmond, Indiana 10-1984; 11-1991 Location or property County DLGF taxing district number' 3700 Industries Road, Richmond, IN 47374* Wayne Richmond -Center (89-006) Description of real property lmprovaments, redevelopment, or rehabilitation (use adaffonat sheets if necessary) Estimated start date (month, day, year) QC Room Remodel offices 518108 Estimated completion date (month, day, year) Testing Room Piping wiring See Attachment* 711108 SECTION •F EMPLOYEESAND SALARIESAS RESULTOF PROPOSEDPROJECT Current number Salaries Number retained 89artea Numberadditlonal salaries. 30* 1,036,956.96* 30* 1,036,956.96* 30* 1,418,952.00* SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to.I:C S t.i-12.1-5.1 (d) (2) the COST of the property REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE is confidential. Current values Plus estimated values of proposed project 1,295,000* See Attachment` Less values of any property being replaced Net esfimated values upon completion of project A 1,295,000* See Attachment" SECTtON 5 WASTE CONVERTEIDAND OTHER BENEFITS PROMISED BYTHETAXPAYER Estimated solid waste converted (pounds) 0 Estimated hazardous waste converted (pounds) 0 Other benefits t SECTION • I hereby certify that the representa "ons i6 this statement are true. Signature of authorized representat Title- Date signed (month, dog ar) 5138762 '' ` Page 1 of 2 . 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, provides for the following limitations: 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 We of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements ❑ Yes ❑ No 2. Residentially distressed areas ❑ Yes ❑ No 3.Occupancy of a vacant building ❑ Yes ❑ No C. The amount of the deduction applicable is limited to $ 0. Other limitations or conditions (specify) E. The deduction is allowed toy ' years' (see below). We have also reviewed the infomtation 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. Approved (signatura and Me ofaufhodtzed memberofdesignabixf body) Telephone number Date Btgned (month, day, year) Atiested by (signalure and dfle ofattester). 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 ofyears designated under IC 6-1.12-12.1-4_ A. For residentially distressed areas, the deduction period may not exceed. five (5) years. B. For redevelopment and rehabilitation or real estate improvements: 1. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years, 2. If the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years. C. For vacant buildings, the deduction period may not exceed two f2) years. Page 2of2 RECEIVED FEB 2 5 2008 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Izifiormation Company Name, Address & Contact Person. TBKArnerica, Inc., 1761 Sheridan Street, Richmond, IN 47374 Contact: Michele Lindsey, the information requested on this supplement to farm SE -I must be completed and submitted along with your. SB-1 in order for your tax abatement request to be considered by Richmond Onion Council. Please retain your records and calculations used to arrive at the information requested on this forte. It is subject to review as a part of our monitoring process. 1, Average Dourly wage for existing employees 10.50Ihr.* 2. Average hourly swage for projected now positions $ 8.001hr* -3. Average hourly health insurance benefit S Varies** 1. The length of the abatement you are requesting 10 year (A 1-10 year abatement maybe requested fbr real estate improvements and martufaefuring equipment.) 2. If purchasing equipment, pleaso attach a list that includes the following: + brief description of each piece of equipment being pnrchased • the projected. useful life of each piece of equipment • . the states} 'which the equipment is being brought into Indiana from if purchasing used equipment • the cast of each piece of equipment 3, if making real estate irnprovewants, please provide a list that includes thc- 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 ]DEMONS 1. Average hourly wage for esting 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 fte employees; B. management, supervisors, foremen, or any other supeMsory personnel; C. owners, stockholders_, or partners if they own 20% or more of the business, and their fa . mily members. 2. Average hourlywage for projectednew positions: Use the same•dofmition of employees to be included as in nuraber one above. 3. Average, hourly health insumce benefit: Please provide the current company paid health insurance benefits provided to hourly employees (as defined above) and fatally members. Please present in the form of ad hoy rate computed u&gthe annual cost per eligible employee divided by 2080 hours. (Au#hoi "Signit= and Title) (Date) "These amountg are as of 11112008, 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 and/or family. The amount of such premiums varies from employee to employee..6t38fi75 ATTACILIWTENT TO SB-IA OF TBK AMERICA, INC.* REAL PROPERTY ESTIMATED COSTS Quality Control Room 30,000 Testing Room 65,000 Other Constructions 1,000,000 Piping Wiring4 0 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 F/C 85,000. Assemble Line for O!P 90,000 Machining Line for F/C ODY 80,000 Machining Line for F/C (BODY) 260,000 Machining Line for F/C (PULLEY) 470,000 Machining Line for F/C PULLEY 450,000 Machining Line for O/P (COVER) 120,000 Machining Line for O/P COVER 120,000 Machining Line for O/P (BODY) 250,000 Machining Line for ON (BODY) 250,000 Assemble Line for W/P 200,000 Machining Line for W/P 470,000 Assemble Line for ON 280,000 Machining Line for O/P 1,500,000 Mold 150,000 Mold 180,000 Mold 80,000 Mold � 220.000 TOTAL 5,970,0W NEW LOGISTICAL DISTRIBUTION EQUIPMENT ESTIMATED COSTS,—, Fork Truck 30,000 Fork Truck 30,000 Bar for Fork Truck 400 Fork Truck Battery (2)4 TOTAL 64,400 NEW INFORMATION TECHNOLOGY E UIPMENT ESTIMATED COSTS" New Telecommunication System 50 000 TOTAL 50,000 *Please also seethe SB-1/Real Property and SB-1/PP filed by TBK America, Inc. The information set forth in said SB-1 forms and attachments is incorporated herein by reference. **This equipment would have an estimated useful life of seven (7) years ***This equipment would have an estimated useful life of five (5) years. No "used" equipment would be purchased. BDDB01 5134342v1 ATTACHMENT TO THE STATEMENT OF BENEFITSIREAL ESTATE IMPROVEMENTS (FORM SB-1/REAL PROPERTY) OF TBK AMERICA, INC. ("TBKA") This statement of benefits seeks abatement for certain proposed real estate improvements proposed to be made by TBKA to the facility at 3700 Industries Road, if TBKA ultimately purchases that facility from its current owner. This project includes the following passible improvements: Improvements and remodeling for Quality Control Room, Testing Room, and piping/wiring, as well as other possible construction to make the facility compatible. with the TBKA's operations, including possible -office remodeling. (A separate statement of benefits is being filed with respect to the personal property component of TBKA's proposed project:) Estimated Total Cost and Assessed Value of Proposed Project The project "cost" estimate of $1,295,000 is an approximation only, based upon the best information currently available. These estimates only include the estimated costs of the proposed real property improvements to be made by TBKA to the facility. This statement of benefits seeks real property abatement that is in addition to. the real property abatement that currently exists on the 3700 Industries Road facility, which current abatement TBKA will also be entitled to claim if it purchases that facility. The estimate of "cost" of real estate improvements on the statement of benefits is an estimate of all costs that will be capitalized as part of the real estate improvements, including, but not. limited to, labor, materials, construction management fees, architectural/eng neering fees, etc. The estimated cost of $1,295,000 is merely an estimate, and actual cost 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 construction occur. Furthermore, after inspection of the 3700 Industries Road facility by contractors, it may be determined that certain expenditures may not be necessary, and TBKA reserves the right to am=d this statement of benefits if such cost estimates are significantly reduced. Any meaningful estimate of the assessed value of the proposed real property improvements is not possible at this time. The actual assessed value of this property will depend on numerous objective and subjective factors, many of which will not be known with any certainty until the real estate improvements are completed and assessed. The actual assessed value resulting from these proposed real estate improvements will, 'of course, ultimately be determined in accordance with Indiana property tax laws and regulations. However, for purposes of this statement of benefits, the estimate of the additional assessed value that could result from the real property improvements described herein is being estimated as 50% of the estimated cost of such improvements, i.e., 50% of $1,295,000 or $647,500. Again, for the foregoing reasons, this estimate of assessed value is very uncertain and the actual assessed value could vary significantly from such estimated assessed value. Employment 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. These employee and salary figures represent total maximum estimated numbers and amounts that _2_ BDDBO15139704vl 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. -3- ORDINANCE NO.13-2008 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 : Formatted: Font: 16 pt, Bold, Underline �. Formatted: Centered Formatted: Different first page header 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-I 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 NOW. THEREFORE, the Geffimen Gatineil of the City of Richmond. indiana. new makes the fallowing tl�e esti i� e ea5 #}t the t3ath-+tiati+e€aBtiErH E t eRg-as4e-persena pf-epe+tr WHEREAS. on February25 2008 TBK America. hic. filed a statement of benefits with the Council on Foini SB-I/heal Property describer a ro'ect involving proposed real property improvements at a facility located at 3700 Industries Road. which facility iti located in an economic revitalization area previously designated by the Common_ Council in Resolution No. 10-1984. as amended ("TBKA Statement of Benefits"). 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 value of the redevelopment or rehabilitation is reasonable for projects of that nature 2. T',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 proposed described redevelopment or rehabilitation; einstallation u e,,.ring 3. That the 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 described redevelopment or rehabilitation, or fi-efn the iRs�Etllatien of the new manufact.. c.�t- 4. ` kat an oth,-�Other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or f em the installation o€th —ne �u€a - Fffig-egt+ip€+�en�: and 5. Plat--theihe totality of the -benefits is sufficient to justify the deduction. fir —That itistallatien a� the-egttipfnen+ described eeffgAete&-WiI eiiths o f the date the ordinattee A i , ti p_ ��� j �y���(ti�1.TDJ 1lN d�'r�'g bedy. Fu+"tktar 2h��a'gate ner+�CJ i'r}3llCerl'�s tA, -.1Uqffl'eFA APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of , 2008, at 9:05 a.m. ATTEST: (Karen Chasteen) City Clerk (Sarah L. Hutton) Mayor