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HomeMy Public PortalAbout039-2008 - Tax Abatement - Custom Woodworking Solutions - real� 7 r ORDINANCE NO. 39-2008 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 the improvements to the real estate described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. 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 the improvements to the real estate described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. 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: REAL ESTATE - 10 YEARS Custom Woodworking Solutions, Inc. Jobs Retained: 6 Jobs Created: 1 Estimated New Value: $25,000 Dated: May 14, 2008 Passed and adopted this day of Council of the City of Richmond, Indiana. ATTEST: (Karen Chasteen) City Clerk 2008, by the Common (Larry Parker) PRESENTED to the Mayor of the City of Richmond, Indiana, this 2008, at 9:00 a.m. (Karen Chasteen) President day of City Clerk 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 2008 PAY 2009 FORM SB-1 ( Real Property „A STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS 1 State Form 51767 (R211-07) eie Prescribed by the Department of Local Government Finance This statement is being completed for real property that qualifies 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) M � � rwv 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 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. (iC &1.1-12.1) 2. Approval of the designating body (City Council. Town Board, County Council, etc.) must be obtained prior to initiation of the redevelopment orrehabilitation, BEFORE a deduction may be approved. 3. To obtain a deduction, application Form 322 ERA/RE or Form 322 ERA/VBD, Whichever is applicable, must be filed with the County Auditor by the later of. (1) May 10; or (2) thirty (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 of the township assessor. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF-1/Reat Property annualy to the application to show compliance with the Statement of Benefits. (lC 6-1.1-12.1-5.1(b) and iC 6-1.1-1Z 1-5.3Q)) 5. The schedules established under IC 6-1.1-12.1-4(d) for rehabilitated properly and under lC 6-1.1-12,14.8(f) for vacant buildings apply to any statement of benefits approved on or after July f, 2000. The schedules effective prior to July 1, 2000 shal continue to apply to a statement of benefits filed before July 1, 2000. SECTION 1 TAXPAYER INFORMATION Name of taxpayer CUSTOM WOODWORKING SOLUTIONS, INC. Address of taxpayer (number and street, city, state, and ZIP code) 434 NW L STREET RICHMOND IN 47374 Name of contact person Telephone number E-mail address JAMES KING 765-935-4066 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number COMMON COUNCIL, OF THE CITY OF RICHMOND, IN 10-1984,11-1991 Location of property County DLFG taxing district number 434 NW L STREET RICHMOND IN 47374 WAYNE 89030 Description of real property improvements, redevelopment, or rehabilitation (use additional sheets ifnecessary) Estimated start date (month, day, year) 1500 SQUARE FOOT PAINT ROOM $25,000 06/01/2008 Estimated completion date (month, day, year) 10/31/2008 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 6 227,212 6 227,212 1 27,000 SECTION4 ESTIMATED TOTAL COSTAND VALUE NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the COStff the property is confidential. OF -•-• . PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values 174,666 76,100 Plus estimated values of proposed project 25,000 25,000 Less values of any property being replaced Net estimate values upon completion of project 199,666 101,100 SECTiON 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Other benefits: Estimated hazardous waste converted (pounds) [Si#ure:'tf authorized repre ve Title Date signed (month, day, year) P1,OnA-kQllb 5ycti-acoZ Form $B-11 Real Properly, page 1 - Copyright® 2008 DiS, Inc. ClientiLoc CUSTOM Oa RE 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 type 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 deduction applicable is limited to $ D. Other limitations or conditions (specify) E. The deduction is allowed for years* (see below). We have also 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 and title of authorized member of designating body) I Telphone number Date signed {month, day, year) Attested by (signature and title of attester) 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, 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 (2) years. Form S8-1 ME. page 2 - Copyright ® 2008 DIS, Ina ClientfLoc Form SB-IA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: 5 TvM S'r A* k 'T �i The information requested on this supplement to form SB-• 1 must be completed and submitted along with your SB-1 in order for your tax abatement request to be considered by Richmond Common Council Please retain your records and calculations used to arrive at the information requested on this form. It is subject to review as a part of our monitoring process. 1. Average hourly wage for existing employees 2. Average hourly wage for projected new positions �� 13• �� . _ 3. Average hourly health insurance benefit $ r t7 1. The length of the abatement you are requesting - .. (A 1-10 year abatement may be requested for real estate improvements and manufacturing equ ment.) 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 (new construction, rehab, expansion, etc.) • size of the proposed real estate improvements • costs of the proposed real estate improvements DEFINITIONS 1. Average hourly wage for existing 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 time employees; B. 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 hourly rate computed using the annual cost per eligible employee divided by 2080 hours. (Authorized Signature and Title) (Date)