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Home My Public Portal About015-2008- Tax abatement. w. exhORDINANCE NO. I5-2008 A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1.-1.2.1 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-l. 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: LOGISTICAL DISTRIBUTION EQUIPMENT — 5 YEARS TBK America, Inc. Jobs Retained: 30 Jobs Created: 0 Estimated New Value: $64,400 Dated: February 25, 2008 Passed and adopted this day of , 2008, by the Common Council of the City of Richmond, Indiana. ATTEST: (Karen Chasteen) City Clerk (Larry Parker) President PRESENTED to the Mayor of the City of Richmond, Indiana, this day of 2008, at 9:00 a.m. City Clerk (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of , 2008, at 9:05 a.m. (Sarah L. Hutton) ATTEST: , City Clerk (Karen Chasteen) Mayor OF BENEFITS �� FORM5PERSONAL PROPERTY*,STATEMENT State Form 51764 (R l 1-QG) PRIVACY NOTICE Prescribed by the Department of local Government Finance The cost and any specifio hdivWual's salary information is confidential; the balance of the Tiling is public record INSTRUCTIONS: per IC 6-1.1-12.1-5. i c) and d . 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 ifs decision about whether to designate an Economic Revitalization Area. Otherwise This statement must be submitted to the designating body BEFORE a person installs the now manufacturing equipment ano%rresearch and development equipment and/or logistical distribution equipment and/or informab'on technology equipment for which the person wishes to claim a deduction. Projects" planned or committed to after July 1, f987, and areas designated after July 1, 1967, require a STATE'MENT'OFSENEFtTS. (IC B-1.1-12.11 2. Approval ofthe designating booty (City Council, Town Board, County Council, etc.) must be obtained prior to installation oftha new manufac€urfng equipment and/or 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 schedulewith the person's personal property return on a cued deduction schedule (Form 103-1=RA) with the township assessor of the township where fire property is situated. The 103-ERA must be Bled between March 1 and May 15 of the assessment year in which new manufacturing equipment and/or 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, f991, must submit Form CF-1 / PP annually to show compliance with the Statement of Benefits (1C8-1.1-i2.1-5.8) 5. The schedules established under IC 6-1.i-12.9-4.5(dJ and (a) apply to equipment installed after March 7, 2001. For equipment installed prior to March 2, 2001, the schedules and statutes in affect at the time shaft continue to apply (IC 6-1.1-12.14.5(f) and (g)) SECTION•• • Name of taxpayer TBK America, Inc. Address of taxpayer (number and scree{. mly slate, and 2iP code) 1761 Sheridan Street, Richmond, IN 47374 Name of contact person Telephone number Michele i_indsey 765-962-0147 SECTION■ • 1 DESGRIPTION OF -•-■ 1 PROJECT Name of designating body Resolution number Is) Common Council of the City of Richmond, Indiana 10-1984; 11-1991 LocaWn of property county DLGF taxing district number 3700 Industries. Road, Richmond, IN 47374* Wayne Richmond -Center 89-006} Description of manufacturing equipment and/or research and development equipment endior logistical distribution equipment andlar information technology equipment. (use additional sheats ff necessary) ESTIMATED START DATE COMPLETION HATE Manufacturing Equipment 518/08 518/11 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 & D Equipment -.- Logist Dist. Equipment 61.8148 518111 IT Equipment 518108 5I8/11 SECTION• OF PROPOSED PROJECT Currant number Saeriea - Numberretained Salaries Numberadditlonal Salaries 301.,036i956.96*. 30* 1,036,956.96" 30" 1,418,952.00* SECTION1 TOTAL COSTAND VALUE OF •••• PROJECT NOTE: Pursuant to IC 6-1.1-12.1�5.1 d 2 the ( (} MANUFACTURING EQUIPMENT R & p EQUIPMENT LOGIST FIST IT EQUIPMENT EQUIPMENT COST ASSESSED VALUE COST ASSESSED VALUE COST .. ASSESSED COST VALUE ASSESSED VALUE COST of the property is confidential. Current values Plus estimated values of.proposed project 5;970;000• ` 2,388,000• 64,400' 25,760.' 50AW 20;000* Less values of any property being replaced Net estimated values' upon completion of protect 5,970,000• 2 385,000' 64,40Cr 25,760-1 50,000• 20,00V SECTION 5 WASTE CONVERTEDAND OTHER BENEFITS PROMISED BY THETAXPAYER Estimated salld waste converted fj=nds) U Estimated hazardous roasts converted (pounds) 0 Other benefits: SECTION• ere6y certify that the press tations In this statement are true. Signature of authorized representative Title Date signed (month, day, i s%o .moo 9138fiS1) ' '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 8-1.1-12.1-2, A . The designated area has been limited to a period of time not to exceed. calendar years(sea below). The date this designation expires is B . The type of deduction that is altowed in the designated area is limited to: 1. Installation of new manufacturing equipment; ❑Yes FIN o 2. Installation of new research and development equipment; Yes Q N o 3. Installation of new logistical distribution equipment. O Ye s Q N o 4. Installation of new information technology equipment; ❑ Ye s . Q 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 applicable to new logistical distribution equipment is limited to $ cost with an assessed value of F. The amount of deduction applicable tonowinformation technology equipment is limited to $ cost with an assessed value or $ G. Other limitations or conditions {specify] H. The deduction for new manufacturing equipment and/or now 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 06 years '* For ERAS established prior to July 1, 2000, orliv a ❑ 2 years .[17 years 5 or 10 year schedule may be deducted. ❑ 3 years LI8 years ❑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 that the.lotality of benefits is sufficient to justify the deduction described above. Approved: esigr tvm and iftle of authorized member) Telephone number Dale signed (month, day, year] Attested by. 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 i. , l RECEIVED FEB 25 2008 Farm SB-fA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Flames Address & Contact person: TSK America, Inc., 1761 Sheridan Street, Richmond, IN 47374 Contact: Michele Lindsey. the information requested on thissupplement to form SB-I must be completed and submitted alongAft your SB-1 in order for your tax abatement request to be considered by lticbutond Common Council. Please retain your records and calculations used to arrive at the information requested on this form. It is sulsject to review as a part of our monitoring process. f, Average hourly wage for existing employees $ 10.50thr.' 2. Average hourly wage for projected new positions -8.00/hr`. 3. Average hourly health insurance benefit $Varies • 1. The length of the abatement you are requesting .10 year (A 1-10 year abatement may be requested fir real estate improvements and manufacturing.equrpment ) 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 Indiam from if purd3asing psed . equipment • the cost of each piece of equipment 3. If malting real estate improvements, plea provide a list that includes the following: brief description of the teal estate iWovement (new consumflon, rehab, expansion, etc.) . . sizeof the proposed real estate improvements •. costs of the proposed real estate improvements AL�k`l>tiilTI:ONS 1. Average hourly wage for oMsting employees: for your most recent pay period please provide the average base wage per hour for aI4 cturemt full time, non-swervisory employees. bo not include the . fallowing groups: A. part tune employees; B. managemew,strperi&m, foremen, or any other sapervisogpersonnel; C, owners, stockholders, or partaers if they own 2°la or more of the business, and their family members.: . 2. Average hourly Wage for projectednew positions: Use the same.deSnitiun of employees to be included . as iu number one above. 3. Average hourly health insurance b&nefit: Please provide the current company Paid health tnsm ce. benefits provided to hourly employees (as de�.ed above) and family members. Pl�ease.presexrfin the form of ati he ly rate empiuecTusiag the annual cost per eiig Ie erspIciyea divided by 2050 hairs_ ? (Auth Sigmature and Title) (Date) `These amoun are as of 11112008, and are subject to periodic mange_, "`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_ • 5 t3867.5 ATTACHMENT TO SB-XA OF TBK AMERICA, INC.* REAL PROPERTY ESTIMATED COSTS Quality Control Room 30,000 'resting Room 65,000 Other Constructions 1,000,000 -Piping Winn 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 FIG 85,000 . Assemble Line for O/P 90,000 Machining Lute for F/C OD .80,000 Machining Line for FIC (BODY) 260,000 Machining Line for FIC (PULLEY) 470,000 Machining Line for FIC (PULLS 450,000 MacUiffig Line for O/P (COVER) l20,000 Machining Line for O/P COVER) 120,000 Machinin Line for O/P (BODY) 2503000 Machining Line for O/P (BODY) 250,000 Assemble Line for W/P 200,000 Machinin Line for W/P 470,000 Assemble Line for O/P 280,000 Machining Line for O/P 1,500,000 ; Mold 150,000 Mold 180,000 Mold 80,000 Mold 22Q,000 TQTAL 5,970,000 NEW LOGISTICAL DISTRIBUTION E UIPMErTT ESTIMATED COSTS** Fork Track 30,000 Fork Truck 30,000 Bar for Fork Truck 400 , Fork Truck Batte {2) 4 TOTAL 64,400 *Please also seethe SB-1/Real Property and SB-l/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 5139342YI 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, new logistical distribution equipment, and new information technology equipment. that TBKA proposes to install during the next three (3) 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 FIC, O/P and W/P, machining lines for F/C (Body),.F/C (Pulley), O/P-(Cover), O/P (Body), W/P and O/P; molds, two (2) fork trucks, bar for fork trucks, and two (2) fork track batteries; and a new telecommunication system. (A separate statement of benefits is being filed with respect to the real property improvement component of TBKA's proposed project.) Estimated Total Cost and Assessed Value of Proposed PrWect 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 three-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 3700Industries Road facility if it purchases that`facility. The estimated "costs" of the new manufacturing equipment, new Logistical distribution equipment, and new information technology 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 asses sed 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 propertyunderthe applicable Indiana personal property tax regulations. AIso, 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. Em lovnient 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 r estimates are repeated in both the real property and personal.property-statements of benefits: -2- BDDB01 5139666v1