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Home My Public Portal About045-2008 - Tax Abatement - Suncall America, Inc. ADI - equipmenORDINANCE NO.45-2008 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: 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 properly, 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 treasonably 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 — 7 YEARS Suncall America, Inc - ADI Jobs Retained: 76 Jobs Created: 8 Estimated New Value: $1,530,226.00 Dated: May 21, 2008 Passed and adopted this day of , 2008, by the Common Council of the City of Richmond, Indiana. President (tarry Parker) ATTE T: Jerk (Karen Chasteen) P NTED to the Mayor of the City of Richmond, Indiana, this —Z— day of 2008, at 9:00 a.m. Jerk (Karen C asteen) Ar�ROVE Ze, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this da , 2008, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTE , ( aren Chasteen) .., STATEMENT OF BENEFITS'r'F' PERSONAL PROPERTY4 b State Form 517fA (R 11-06) T 1* n '•'• Prescribed by the Department of Local Government Finance x FORM SB4 ! PP PRIVACY NOTICE The cost and any specific trrdividual's salary Information is confidentlai; the balance of the filin is public record per IC 6.1.1-12.1.1 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 distribution equipment and/or information technology equipment 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 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Coundi, etc.) must be obtained prior to installation of the new manufacturing 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 schedule with the person's personal property return on a certified deduction schedule {Fort 103-ERA) with the township assessor of the township where the property Is situated. The 103-ERA must be tiled 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 I 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-I / PP annually to show compliance with the Statement of Benefits. (1C 6-1.1-12.1-5.6) 5. The schedules established under iC 6-1.1-12.1-4.5(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. (IC 6-1.1-12.1-4.5(t) and (g)) SECTION•• • Name of taxpayer Suncall America, Inc - ADI Address of taxpayer (number and street city, state. and Z!P code) 505 Industrial Parkway, Richmond, IN 47374 Name of contact person Telephone number Cathy W. Hill (765) 966-9656 SECTIONr • AND DESCRIPTION OF -r•r • PROJECT Name of designating body Resolution number (s) Common Council 10-1984, 11-1991 Location of property County DLGF taxing district number 505 Industrial Parkway, Richmond, IN 47374 Wayne 89030 Description of manufacturing equipment and/or research and development equipment and/or log.istical distribution equipment andlor information technology equipment. ESTIMATED (use additional sheets if necessary) START DATE COMPLETION DATE Manufacturing Equipment 05/01/2007 12I3112007 12/2007 RGK Lines, #1 & #4, Chamfer machine and Induction R & D Equipment Heat-treat machine $818,189 11 /2007 DPK Lines, # 1 & #3, Balancer, welding and measuring Logist Dist Equipment machines $524787 IT Equipment 12/2007 Hob Line, # 4 Hob machine $187,250 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 76 2,152,000.00 1 76 1. 2,152 , 000.00 8 1 18,720.00 SECTION■ TOTAL COSTAND VALUE OF •••• ■ PROJECT NOTE: Pursuant to iC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values Plus estimated values of proposed project 26 Less values of any property being replaced Net estimated values upon completion of project SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION•ACERTIFICATION 1 hereby certify that the representations in this statement are true. Signature of authorized presentative Title Date signed (month, day, year) LE-o O n 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 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; ❑Yes [-]No 2. Installation of new research and development equipment; ❑Yes ❑ N o 3. installation of new logistical distribution equipment. ❑Yes ❑ N o 4. Installation of new information technology equipment; ❑Yes ❑ 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 $ F. The amount of deduction applicable to new Information technology equipment is limited to $ Cx Other limitations or conditions 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 EMs established prior to July 1, 2000, g& a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 8 years El years ❑ 9 years ❑ 5 years "* ❑ 10 years ** Also we have reviewed the information determined that the tot0ty of biwefits-i in the statement of benefits and find that the estimates and expectations are reasonable and have to justify the deduction described above. Appr ed: (signature nd ' orauth 'zed member) Telep ne number Dat s' gned ( onth, day, year) "el i "-- A Alteste y: A „ Designated fieV L * 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 SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information S��cwll �rn�.c�, etc Company Name, Address & Contact Person: S o 5 The information requested on this supplement to form SB-1 must be completed and submitted along with your SB-I 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 $ c' 2. Average hourly wage for projected new positions 6t-ctti-it, n� Pc�,�� $ $- y 0 3. Average hourly health insurance benefit (Co. ? "y6 10D��a� $ 3' 10 1 1. The length of the abatement you are requesting 1 u 2wm. (A 1-10 year abatement maybe requested for real estate improvements and manufacturing equipment.) 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. CEv (Authorizedcgignature and Title) (Date) _ @ . & 2 2 � k ( E \� t 00 « o > �0 ] / 2 \ \ / � \ /. $ $ 0 2 @ 00 co2 /T-1 k w m m \ �\ / \ q \ q E \ Lo � m o - m \ \ \ k % \ / q $ ƒ m&Ln m w m m e m 2 - -tn i/l. 4-4 lf� rH & 5 7 § 2 � 2 ? k \ e � u e § a E & o t \ 2 2 � \ E k 0 cu � \ 3 tu \ \ _ c / / \ k b j \ $ e o \ / § § \ = \ 2 \ \ \ \ 2 \ \ \ k � ƒ 0 E k fn en * � 4 o b g CD \ m q LLJ \ N:: ? d q q $ q A\ q U k � e � Y= # u � k / � RGK - Machines to chamfer and heat treat ring gears. Life usage — about 8 years Equipment is purchased from: Hirose Technology Corp. Machines are individual. Chamfer is $570,312. Induction Heat treat is $247,878. Machinery is being purchased DPK line — Machine line for manufacturing drive plate assemblies. Life usage — about 6 years Equipment purchased from: Hirose Technology Corp. Machine line is hooked together as one machine - $524,787 Machinery is being purchased. Nob #4 — Machine to hob ring gears. Life usage — about 6 years Equipment is purchased from: Hirose Technology Corp. Machine line is hooked together as one machine -- $187,250 Machine is being purchased.