HomeMy Public PortalAbout040-2008 - Tax Abatement - Custom Woodworking Solutions - equipORDINANCE NO. 40 -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.
S. 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.
S. 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 E I MENT —10 YEARS
Custom Woodworking Solutions, Inc.
Jobs Retained: 6
Jobs Created: 1
Estimated New Value: $10,000
Dated: May 14, 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
—STATEMENT OF BENEFITS FORM SB-9 1 PP
x PERSONAL. PROPERTY
r� J State Form 61764 (R 1-08) ;"�`� MAY
+•+e Prescribed by the Department of Local Government Finance J�1 The cosf andanyspeclfrc lndrviduals
salaryinformation !s confrdenGaL• the
balance of fhe ffitng is public record
1NSTRUCTFONs: perk 6-Y.i-12.is.Y (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 applicantin 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 distribution
equipment artdforinfomratfon technology equipment for which the person wishes to claim a deduction. Projects" planned or committed to afterJuly 1, f 987,
and areas designated after July 1. 1987, require a STATEMENT OF BENEFITS. (IC 6-1.1-12,1)
2. Approval of the desiggnatingg body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manufacturing equipment
and/or research anddevelopment 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 schedule with the person's 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 fried between March 1 and May 15 of the
assessment year in which new manufacturing equipment and/orresearch and development equipment and/or logistical distribution equipment and/or
information technology equipment is instalted 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. 1991, must submit Form CF-1 / PP annually to show compliance with the
Statement of Benefits. (iC
5. The schedules established under iC 6-1.1-12.14.5(d) and (e) apply to equipment installed after March 1, 2001. For equipment installed prior to March 2,
2001, the schedules and statutes in effect at the time shall continue to apply. (fC 6-1.1-12.1-4.5(Y) and (g))
SECTIOA I TAXPAfER MFORe. •�
Name of taxpayer
CUSTOM WOODWORKING SOLUTIONS, INC.
Address of taxpayer (street and number, city, state, ZIP code)
434 NW L STREETT RICHMOND IN 47374
Name of contact person
Telephone number
DAMES KING 1765-935-4066
SECTION• • . DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
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 manufacturing equipment and/or research and development equipment
ESTIMATED
andlor logistical distribution equipment and/or information technology equipment
(use additional sheets ifnecessary)
Start Date
Completion Date
Manufacturing Equipment
06/01/2008
10/31/2008
COMPRESSOR, HEATING UNITS AND PAINT EQUIPMENT
R 8 D Equipment
$10, 000
Logist Dist Equipment
IT Equipment `
/ /
SECTIONOF • AND SALARIES AS RESULT OF -••• PROJECT
Current nu er Salaries Number retained Salaries Number additional Salaries
227—)-/oZ 6 � ,�Gt?G
SECTION 4
ESTIMATED TOTAL COST
AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the
Manufacturing
Equipment
R & D Equipment Logist Dist Equipment ` IT Equipment `
COST of the property is confidential.
Cost
Assessed
Value
Cost
AssessedCost
Value
AssessedGosh
Value
Assessed
Value
Current values
17,342
6,940
Plus estimated values of proposed project
10,000
4,000
Less values of any property being replaced
Net estimate values upon completion of project 1
27, 342
10,9401
SECTION• • AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) Estmated hazardous waste oonverted (pounds)
Other benefits:
SECTION
I hereby certi that the representations in this statement are true.
Sig Lure authorized repres a
TIOV
Date signed (month, day, year)
O
rN
Form SB-11PP, page 1 - Copyright® 2008 DiS, inc. ClienULoc 12650
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 6-1.1-12.1-2.
A. The designated area has been limited to a period of time not to exceed
is
B. The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment;
2. Installation of new research and development equipment;
3. Installation of new logistical distribution equipment.
4, Installation of new information technology equipment;
C. The amount of deduction applicable to new manufacturing equipment is limited to $
$
calendar years " (see below).The date this designation expires
❑ Yes
❑ No
❑ Yes
❑ No
❑ Yes
❑ No
0 Yes
0 No
cost with an assessed value of
D. The amount of deduction applicable to new research and development equipment is limited to $
with an assessed value of $
E. The amount of deduction applicable to new logistical distribution equipment is limited to $
F. The amount of deduction applicable to new information technology equipment is limited to $
$
G. Other limitations or conditions (specify)
cost
cost with an assessed value of
cost with an assessed value of
H. The deduction for new manufacturing equipment and/or new 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
❑ 6 years "" For ERRS established prior to July 1, 2000 onlya
❑ 2 years
0 7 years 5 or 10 year schedule may be deducted.
❑ 3 years
❑ 8 years
❑ 4 years
❑ 9 years
❑ 5 years **
❑ 10 years
Also we have reviewed the information contained in the stafement 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.
(signature and fide of authorized member) j Telphone number j Date signed (month, day, year)
Attested by: I 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
Form SBAIPP, page 2 - Copyright02008 CIS, tno. Client/Lao 12650
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person: �UrU^� Luavacu.e"`` S6/vr�vs, fir=
c ds
The information requested on this supplement to form SB-I 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 $ 3, d
3. Average hourly health insurance benefit $ D
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)