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HomeMy Public PortalAbout022-2008 - Tax Abatement - Innatech - improvements - real estORDINANCE NO. 22-2008 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, T.C. 6-1.1-12.1 requires the Common Council as the designating entity to approve all Statements of Benefits required to be filed by property owners applying for deductions in assessed valuations for the installation of new manufacturing equipment or for the redevelopment or rehabilitation of real property; and WHEREAS, an owner of real property located in an economic revitalization area is entitled to deductions from the assessed value, pursuant to Indiana law, for a period of any number of years less than or equal to ten (10) years (i.e. one to ten years); and WHEREAS, an owner of new manufacturing equipment is also entitled to deductions from the assessed value, pursuant to Indiana law, for a period of any number of years less than or equal to ten (10) years (i.e. one to ten years); and WHEREAS, in order for Common Council to approve a Statement of Benefits to allow a deduction, it must make the following findings, to -wit: 1. That the estimate of value of the redevelopment or rehabilitation, as to real property, or the estimate of cost of the new manufacturing equipment, as to personal property, is reasonable for projects of that nature or equipment of that type. 2. That the estimate of number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 3. That the estimate of annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 4. That any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 5. That the totality of the benefits is sufficient to justify the deduction. 6. That installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-1. NOW, THEREFORE, the Common Council of the City of Richmond, Indiana, now makes the following findings: 1. That the estimate of value of the redevelopment or rehabilitation, as to real property, or the estimate of cost of the new manufacturing equipment, as to personal property, is reasonable for projects of that nature or equipment of that type. 2. That the estimate of number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 3. That the estimate of annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 4. That any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed redevelopment or rehabilitation, or from the installation of the new manufacturing equipment. 5. That the totality of the benefits is sufficient to justify the deduction. 6. That installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-1. 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: MANUFACTURING EQUIPMENT — 10 YEARS Innatech, LLC Jobs Retained: 105 Jobs Created: 19 Estimated New Value: $12,780,500 Dated: March 20, 2008 Passed and adopted this 1( day of March 2009, by the Common Council of the City of Richmond, Indiana. �L -'4�x President (Bruce issel) 11 ATTE (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this ,r_,-2 day of March, 2009, at 9:00 a.m. (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of March 2009, at 9:05 a.m. X, Mayor (Sarah L. Hutton) AT City Clerk (Karen Chasteen) RECEIVED MAR 2 4 2008 STATEMENT OF BENEFITS _ FORM SB-1 I PP PERSONAL PROPERTY IR � State Form 5s7s4 (12 r sfi8) �a�.._.� , Prescribed by the Dewlt nertt of LOW Governmard Flrrartoe ow anriarrraptar.4a teArfuats aerxy rePorrrrariarr k rarnrCanA6it the LeWraa ortrr+ralrraupu�4Aaraaord INSTRl1CFtONS: Eff rc a-t.f•tltf.e r a) err? gq, 1. Thra as tarrimtmastbe arlhadW413 Me OO& U060001W the EcanOMICReWraAla att0n Area pdortq Ore pvb& boarfrlp!!me daslOnaNtrpbodyrer}rrlres , ... , eed erase designated armr.wry s. sear, raqurre a sTnTFrirErlrr vr= Frrs pc a•:.s-za zt z. Approval of the tlssfg�arftr� badplGRy CoancrR Town 8nerr� Corey Carrncr6 arc must be ob atnad plea sfl 4+snwabOrr olLhe new ma+suracturOtG e4+►rA amrw rawarchanbe 4ppvkmd ddetoprtaenfequfeptartlop(edCaldloffuLrorrogtrlprtrantaudforinfp17rt6tfOrFteClllwkrQyequf¢ntoftlBOJP affadrtrtlotrrrray 2 Tb atrtasr a opulrrrn, a parson roesi rue a a anrrWdadacsarr schadtO wrm Oer perawle personal poperty return «, a cerflrfed usetrctlat achedr�re {Pone Ile Al rv'trr Ore tnwrrshlp asaessorof fha townahfp where O�raa rs arhrafed The f 09•ERA ritual be Rfed hetlNeen MarcR f and R1eY f3 of Ure as5easafatrtysarNr wrrktr Aew meAlrlachxhrn s�randParr� acid dOtretbrurtarrteGulprrlantanrLhr 1og1sO0at oyslyiblri/on e�tasrdhr fniarmauarr �c epurprrrerrrrs rnsraeaaddanu AurctiOreaG enusa a rQung sxtarrvalan has Gsarr ol7�bnd A peraOn tvho obtakra a ezttanaron nrrrst rue eta rout ttasweeahnOdO°�4laroq r and ire azfanded care date oldest}+ear. 4. awnarm whasr Stafarnent of BaneAfs was approved ofterJune 30. i99i, must aubmrt Pullet Cf f !PP anauallp to show cpRip7derrce wlgr Bra S�mt�marrtofBeaeftie, (foe-r.t-fa.f�a) ry The schadWas ostabrlehed ender fC 5• r, f.12 f•4.b(d) and ra) a�1y to aqn fnsW1ad a%terA#&mh f, 2001. Faraqulprnaat krslartad prZr fo ruamh 2, 200f. Ors aetrq(fulea erld efahetas err s" al Ors drfK aha8 con>Piwe Narita of taxpayer 1 Innateen, LLC 10 year abatement re nested j Address of taxpayer (street and number, elty. slats, 7JPcode) i 750 Letica Drive Rochester M:1 48307 Name alowtoct pe" i Tetephene number Robert Bradin :248-601-7902 Name of dealartallttg tardy t ResNugon r»rmher (s) City of Richmond Colmnon Council Location of property Gpelnly i OLFG taxing dWILI number 4200 Industries Road Richmond IN 47374 Wayne ;Center/Wayne oasoripli m of manufacturing equipment andrar researab arrd devskgwnerrl squipmat ! ESTIMATED so dr ioefr,9ical dialrbutton egafpmenrandlor Intormalkm tachnniagy equipmwrt afar! Dale Com etlnr► Duce (asoamAw 8"M gnpoassay) [See Attached lifmu(srdtftEqu;pmew04/01/2008 03/31/2010 R & D Equlprnant LoglalDial egwpmerd' ! rr Equipment" Curreol 6air6w , salaries Number retilmW Salarles edditEonaE Salaries .,. ]'Number € 105 3,.292,000 105 3,292,0.00 19 504,000 i OU, Pursunni to C&1.1.t2.f.9.1 (d) (2) the MantlrlkDur 8qukpeneFd ' R & n aqu*rt rd Loglat Dist EgWp:mnt • IT Equl Iwl"t COST of IN property Is confiderdial. rasa Goat u Vaiutl Goat co� Currenl valrtes 12, 855;192 : 5, r48, 9ss Plus estimated values of proposed project ........... 12, "a0, soc s, vas, aa. - Less values df any properly being n*Iwed Nei aelitnale values upon compleflan of project 25, 615, 692 11, 448, 98C3 EsflmdWwRdwoulewwarled fpvrrnds} .. .... Esthtslsdhwwdouswastarmmrarted {pwools)- ---------------------------------. Other bsoallla: -- i �Mft ttt '? .f3!.this a stment Bret _ . Si=Umorrtzed mpr TO Dale etgn k day ymo 16 Zip 1 2-0D Form SO.J r',wee1.Copyfttt020MnIS.Inc t:IlarWI.cc 12260 We have reviewed our prior actions relalitng to the desipnaUan of Ih€a eoo=lo wAlollzation area and find that the applicant masts the genefal standards adopted in the resolution previouslyapproved by thle body. Sold resolution, passed under IC 64,1-12.1.2.ti, provides for the followtnp Ilmitaflcns as authorized under iC 6-1.1.12.1.2. A. The designated arse has been limited to a period of thne not to erased, ,,,,.............cafendaryears • fseobelow). Tim date this deatgnatlon expires Is... ....................... 9. The typo or deduction that is alloned In the designated area is limited to. 1, tasiatiaton or now manufacturing equlpmenr C) Yes 17 No 2. Installation of new research and devebpmarht equipment; O Yea la No 3. Installation of new logistical distribution equipment. 0 Yee Q No 4. Installation of Paw information fealhnologyoqulpnhanl; O You 13 No C. The amounl of deduction applicable to new manufacturing equipment is Ilahllad to $,cost vvhh an assessed value of D. The amount of deductlon applicable to new research and development equipment to timtad la i , , .............. ... .... oast wftlh an assessed value of i,,,,,, __--- E. The amouotM deduction applicable to new logistical dlaldbution equipment 1e limited m 3 cost with an assessed value of F. The amount ordeducilon apptcable to now Informalion lachnolspy aquipmont is timltad tor;_ coat Win an aeaassed value of O. Other tmflatinns or conditions (speolly) Fl. The deduction for new mamftohhring equlpmecl and/or now research and damIWneal equipment and/or new logistical dividbulton equipnnent andkr new Inrarmeton lechnubgy equipment Inalailad and first cfaimad etiglble for deductlon after July 1, I= Is albvvad for; CI 1 year 13 6 yam " For Me etuabgehad prior to July 1, 20DD of a 0 2 yearn ❑ 7 years 5 or 10 year schedule may bs deducted. © 3 years 13 tit year; U 4 years a 9 ymm 17 5years" ❑ loyears" Weo va have rovlewed the lnformatien contained In the statement of benefits and Drsi that the asumalas and expecietiorra are reoaonabia and have datermined that the fatality of benefits Is sufficient to just€fy, the deduction described above. ..... --............. ... ....... _ cslalwaarrtleoletlriwrrxedrnamhe/) Cefl3Ttancttfws#iat tie s?tlrtli c€ k • If the designating body WAS lhallms parlad during which an area is an economic levilel€milon area. 4 does not fimh the length aft€me a Taxpayer is enlHted to receive a deduction to a number of years designated underlC 6-1.1-12.1.4,5 Form 5&1/PP, page 2 - Cap/riaht C 2007 ENS, Ina akmuloo Form SBA A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Robert Sradin -- (248) 601-7902 Innatech, LLO 4200 Industries Rd Richmond, IN 47374 The Informatlon requested on this supplement to form SB-1 must be completed and submitted along with your SS-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 2. Average hourly wage for projected new positions 1.7. 3. Average hourly health insurance benefit .._.... _............................................................. . 1. The length of the abatement you are requesting (A 1-10 year abatement may be requested tbrreal estate kWovements and manufacturing equipment.) 2. If purchasing equipment, please attach a list that Includes the following: • brief description of each piece of equipment being purchased the projected useful life of each piece of equipment the state(s) In which the equipment Is being brought into Indiana from if purchasing used equipment the cost of each piece of equipment • state If the machinery Is being purchased or leased • if the machinery is being leased, provide information from the lease that explains which party is responsible for paying the property taxes 3. if making real estate improvements, please provide a list that includes the following: • brief description of the real estate improvement (flew construction. rehab, expansion, etc.) • size of the proposed real estate improvements • costs of the proposed real estate improvements. DEFIN177ANS 1. Average hourly wage for existing employees: for your most recent pay period please provide the average base wage per hour for at current full time, non -supervisory employees. Do not include the following groups: A. part time employees; e. management, supervisors, foremen, or any other supervisory personnel; C. owners, stockholders, or partners if they own 2% or more of the business, and their family members. 2. Average hourly wage for projected new positions: Use the same definition of employees to be Included as in number one above. 3. Average hourly health insurance benefit: Please provide the current company paid health insurance benefits provided to hourly employees (as defined above) and family members. Please present in the form of an uOy rate computed using the annual cost per eligible employee divided by Tours, (Authorized Signature and Title) <,i3ate? rt