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Home My Public Portal About016-2008 Tax Abatement. w. exhORDINANCE NO.16-2008 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, 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: I . 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. 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: INFORMATION TECHNOLOGY EQUIPMENT — 5 YEARS TBK America, Inc. Jobs Retained: 30 Jobs Created: 0 Estimated New Value: $50,000 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 , President (Larry Parker) 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 STATEMENT OF BENEFITS �A�b FORM 58-1 1 PP a'PERSONAL PROPERTY State Form 51754 (R 1 1-06) PRIVACY NOTICE 91P Prescribed by the Department of Local Government Finance Thecost and any specatic vidNiduaN salary information is confidential; the balance of the filingis public record per IC 6-1.1-12.1-5.1 c) and d . 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. Otherwise this statement must be submitted to the designating body BEFORE a person installs the new manufacturing.equipment and/or research and development equipment and/or logistical drstribaLbn equipment and/or information technology equipment for which the person wishes to claim a deduction. 'Projects"planned or committed to afterluly 1, f987, and areas designated after July 1, 1967, require a STATEMENT OF BENEFITS. (IC 8-1.1-12.1) 2. Approval of the.designating body (City Council, Town Board County Council, etc.) must be obtained prior to Installation of the new manufacturing equipment andlor research and development equipment andlar logistical distribution equipment andlor Information lechnotogy equipment, BEFORE a deduction may be approved S. To obtain a deduction, a person must file a certified deduction schedule with the persons 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 andlor research and development equipment andlar 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 farm between March 1 and lire extended due date of that year 4. Property owners whose Statement of Benefits was approved alter June 30, f$91, must submit Form. CF-1 / PP annually to show compliance with the Statement of Benefits, 5- The schedules established under IC b-i.1-i2.i-4.5(d) and (ej apply to equipment Installed after March 1, 2001. For equipment installed prior to March 2, 2001, the schedules and statutes in effect at the ffrne shag continue to apply (IC 6-1.1-12.1-4.5(o and (g)) SECTION•,YER INFORMATION Name of taxpayer TBK America, Inc. - Address of taxpayer;nvmberand street, c4lx state, and ZIPoode) 1761 Sheridan Street, Richmond, IN 47374 Name of contact person Teieohone number Michele Lindsey 765-962-0147 SECTION 2 LOCATION AND DESCRIPTION 0 F PROPOSED 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 mrnber 3700 Industries Road, Richmond, IN 47374* Wayne Richmond -Center 89-006} Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipmentandlor information technology aquipment. (use addirlonal sheets if necessary) START RATE COMPLETION DATE Manufacturing Equipment 5/8/08 . 5/8/11 Numerous items to be used by TBK America, Inc. in its business of. R & D Equipment manufacturing water and oil pumps for mainly diesel engines. See Attachment.* Logist Dist Equipment 518/08 518111 IT Equipment 5/8108 5/8111 j SECTION a ESTIMATE OF EMPLOYEESAND SALARIESAS RESULT OF PROPOSED PROJECT Currentnumber Salaries - Numberretained Salaries Numberadditlonal Salaries 30* 1,036;955.96*. 30* 1,036,956.96* 30* 1,418,952:00* SECTIONa TOTAL COSTAND•••• PROJECT NOTE. Pursuant to IC $-1.1-12.1-5.1 (d) (2) the MANUFACTURING EQUIPMENT R & D EQUIPMENT LOGIST DIST 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 ofproposedproject 5,970;000- '' 2 M,000- 64,400' 25.760* 50,000• . 20;000' Less values of any property being replaced Net estimated values upon completion of project 5,970.000' 2 388,000` 64,400' 25,760" 5A,Oot}' 20,000* SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THETAXPAYER Estimated solid waste converted (pounds) O EsUrnated hazardous waste converted (pounds) Q Other benefits: SECTION• ereby certify that the prese lotions In this statement are true. Signftm of authorized representsiWo Title l Date signed (morn#?, day, _ 513&660 *See Attachment JR USE OF THE DFSIGNATfN& Rnr.. 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 IC6-1.1-12.1-2. 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; Dyes ENO 2. Installation of new research and development equipment; ]Yes ❑ N o 3. Installation of new logistical distribution equipment. Dyes E]N o 4. Installation ofnew information technology equipment; ❑Yes Q N o C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of Q. 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 to new information technology. equipment is limited to $ cost with an assessed value of G. Other limitations or conditions (specify) H. The deduction for new manufacturing equipment andlor.new research and development equipment and/or new logistical distribution equipment andlor newinformation technology equipment Installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for: ❑ l year ❑6 years " For ERNS established prior to July 1, 2000, MI a ❑ 2 years ❑7 years 5 or 10 year schedule may be deducted. ❑3 years 08 years. ❑4 years ❑ 3 years ❑ 5 years " ❑ 10 years Also we have reviewed the Information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the: totality of benefits is sufficient to justify the deduction described above. Approved: {signature arO title ofauthorized member) Telephone number Daie 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 i RECEIVED FEB 2 5 - - 2008 Form SB-lA City of Richmond, Indiana Taxpayer Wage & Benefit Information Cone =y Name, Address & Contact Person: TSK America, Inc., 1761 Sheridan Street, Richmond, IN 47374 Contact: Michele Lindsey. The information requested on this supplezmnt to form SE-1 must be completed and submitted along with your SB-1 in order for your tax abatement request to be eoasidered by Richmond Common. Council. Please retain your records and calculations use-dto 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 $ 10.501hr.". 2, Average hourly wage for proj eared new positions $ i9.OtiJttr' 3. Average hourly health insurance benefit $ Varies" 1. The length of the abatement youare requesting .10 year (A 1-10year abatement maybe requested fir real estate improvements and manufacturing equipment. j 2. If purchasing equipment; please attach a list that includes the following: • briefdescription of each piece of equipment being purchased a the projected trseful.life of each piece of equipment • . the state(s) in which the equipment is being brought into Indiatm from if purchasing used . equipment a the oost of each piece of egtiipment 3, If. malting real estate improvements, please provide a list that includes the following: • brief description of the real estate improvcrrlent (new construction, rehab, expansion, etc.) • . size of the proposed real estate improvements •. costs of the proposed real estate it wovements DRYINMONS 1. .Average hourly wage fur o4sting employees: for yow,moit recaa Pay pedod please provide the average base wage per hour for all current full time, non -supervisory employees. Do not include the following gxoups. A.-. part time employees; B. mauagemea, supra-Asors, forEmeA or any other supervisory personnel;. C. owners, stockholders, or partners if they own 2% or wore of the business, and their family members_ 2. Average hourlyvnge for projected newpositions. Use the same definition of employees to be included , as in uimbea one above. 3. Average hourly health ims= nce benefit: Please provide the CmTentcompany paid health Insurance benefits provided to hourly employees (as &Emo i above) and f=Uy members. Please present in the form of art ho Iy rate computed using the annual cast per eligible emp16yeee divided by 2080 hours. s ; (AuthorizdrSiowiture mmd Title) (hate) "These amoun are as of 11112008, and are subject to periodic change. "'Currently, the Company pays 85% of each employee's health insurance premium and pays O%of the health insurance prerriium fvr an employee's spouse and/or family. The amount of such premiums varies from employee to employee.. $138675 ATTACHMENT TO SB-XA OF TBK AMERICA, INC.* REAL PROPERTY ESTIMATED COSTS Quality Control Room 30,000 Testing Room 65,000 Other Constructions 1,000,000 Pi in Whin 00 00 TOTAL 1,295,000 NEW MA1N'UFACiURING EQU[PMENT 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 MachiningLine for F/C OD 80,000 MachiningLine for FIC (BODY) 260,000. Machining Line for FIC (PULLEY) 470,000 Machinin Line for FIC PULL 450,000 Machinin Line for O/P (COVER) 120,000 MachiningLine for O/P COVER 120,000 MachiningLine 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 MachiningLine for O/P 1,500,000 Mold 150 000 Mold 130,000 Mold Mold 80,000 220.000 TOTAL 5,970,00i1 NEW LOGISTICAL DISTRIBUTION E UIPMENT ESTIMATED COSTS*** Fork Truck 30,000 Fork Truck 30,000 Bar for Fork Truck 400 . Fork Truck Battery2 4 TOTAL .64,400 NEW .INFORMATI<ON TECHNOLOGY EQUIPMENT ESTIMATED COSTS' New Telecommunication System. 0 00 TOTAL 50,000 *Please also seethe SB-I/Real Property and SB-I/PP filed by TBK America, Inc. The information set forth ixa said SB-I 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 5139342vl ATTACHMENT TO THE STATEMENT OF BENEFITSIPERSONAL 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 F/C, 0/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 truck 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 Prafect 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 3700 Industries 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 riot limited to, labor, materials, process engineering, etc. These estimated costs are merely estimates, 4 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. Enlj)ioyment and Salary Information As noted above, two (2) statements of benefits are being flied with the City Council of Richmond, one (1) each for the. zeal 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- BDDBO 1 5139666v 1