HomeMy Public PortalAbout063-2008 - Tax Abatement - Optical Disc Solutions - equip.pdf.wORDINANCE NO. 63-2008
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 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:
EQUIPMENT -- 10 YEARS
Optical Disc Solutions, Inc.
Jobs Retained: 133
Jobs Created: 2
Estimated New Value: $760,000
Dated: August 5, 2008
Passed and adopted this /-5' day of , 2008, by the
Common Council of the City of Richmond, Indiana.
President
L y P er)
ATTEST• ZZZZJ�;e-' �lerk
(Karen Chasteen)
PRE ENTED to the Mayor of the City of Richmond, Indiana, this day of
2008, at 9:00 a.m.
.T
Clerk
(Karen Chasteen)
APPROVED b me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
je day , 2008, at 9:05 a.m.
"ayor
(Sarah L. Hutton)
ATT
(Karen Chasteen)
STATEMENT OF BENEFITS
�e FORM SBA i PP
0 PERSONAL PROPERTY
ay �; State Form 51764 (R / 1-06) PRIVACY NOTICE
+6�• ` Prescribed by the Department of Local Government Finance The cast and any specific individuals
RECEIVED AUG O 6 2008 salaryeoffhaffli isconfidential:the
INSTRUCTIONS: G A q balance olthe filing Is public record
per1C &1.1-12.1-5.1(c) and to).
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 alter July 1, 1987,
and areas designated after July 1. 1987, require a STATEMENT OF BENEFITS. (1C 6-1.1-12.1)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manufacturing equipment
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 (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 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 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 6-1. 1-12.1-5.6)
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. (IC 6-1.1-12.1-4.5(1) and (g))
SECTIONr r
Name of taxpayer
OPTICAL DISC SOLUTIONS INC.
Address of taxpayer (street and number, city, state, ZIP code)
1767 SHERIDAN STREET RICHMOND IN 47374
Name of contact person
Telephone number
FRED AUSTERMAN 1765-935-7574
SECTION• • AND DESCRIPTION OF -•-• r PROJECT
Name of designating body
Resolution number (s)
COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
10-1984,11-1991
Location of property
County
DLFG taxing district number
1767 SHERIDAN STREET RTCHMOND IN 47374
Wayne
RICHMOND CORP
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment
(use additional sheets ifnecessary)
Start Date
Completion Date
Manufacturing Equipment 09/01/2008
09/01/2010
SEE ATTACHED LIST
R & D Equipment
Logist Dist Equipment
IT Equipment `
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
133 4,718,000 133 4/718/000 2
55,000
SECTION 4
ESTIMATED TOTAL COST
AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the
COST of the property is confidential.
Manufacturing
Equipment
R & D Equipment Logist Dist Equipment • IT Equipment "
Cost
Assessed
Value
Cost
AssessedCast
Value
Assessed Cost
Value
Assessed
Value
Current values
7,959,938
1,864,434
Plus estimated values of proposed project
760,000
228,000
Less values of any property being replaced
Net estimate values upon completion of project
8, 719, 938
2, 092, 434
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
SECTIONS•
I hereby certify that the representations in this statement are true.
Si tore of authoriz representative
Title
Date signed (month, day, year)
Plzmslz wT
-- S — 0 8
Form S13-1iPP, page 1 - Copyright®2008 DIS, Inc. Client/Loc 24600
,,)R IMF OF THE ❑FSIGNATING ROC
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
❑ No
3. Installation of new logistical distribution equipment.
❑ Yes
❑ No
4. Installation of new information technology equipment;
❑ Yes
❑ No
C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value or
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 $ 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 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 ERA's established prior to July 1, 2000 onlva
❑ 2 years
❑ 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 statement of benefits and find that the estimates and expectations are reasonable and have
determined that t_}q totality aefats�is sufficient to justify the deduction described above.
Appro d: {si and till of authorized mb ) Telphone number Date si n (mon h, day, year)
�'S - S 6 t
Attby, Desig d 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 6-1.1-12.14,5
Forth SB-1/PP, page 2- Copyright 02005 DIS, Inc. Client/Loc 24500
OPTICAL DISC SOLUTIONS, INC.
ATTACHMENT TO FORM SB-1
Estimated
Useful
Description
Life
Cost
Condition & Source
Recording Studio Equipment
10 Years
$
70,000
Purchased new from Indiana
Inspection Equipment for Dual
Lines and Printing Machines
10 Years
$
120,000
Purchased new from Minnesota
DVD Robotic Duplicator
10 Years
$
5,000
Purchased new from Ohio
Kammann K-15 6-color printer
and frames
10 Years
$
70,000
Purchased used from North Carolina
Audio Dev SA 300 Cats DVD
Inspection System
10 Years
$
50,000
Purchased used from North Carolina
Marubeni Disc System - DVD
10 Years
$
260,000
Purchased used from North Carolina
Gima CD815 P-Caser
10 Years
$
20,000
Purchased used from North Carolina
Digital Printing Machine
10 Years
$
100,000
Purchased used from Illinois
Nimbus Holliday LBR
10 Years
$
65,000
Purchased used from Massachusetts
$ 760,000
Form. SB-11A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person: Optical Disc Solutions, Inc.
1767 Sheridan Street, Richmond, IN 47374
Fred Austerinan 935-7574
The information requested on this supplement to form SB-1 must be completed and submitted
along with your S13-1 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 $ 12.53
2. Average hourly wage for projected new positions $ 13.22
3. Average hourly health insurance benefit $ 3.64
1. The length of the abatement you are requesting 10. _Years
(A I-10 year abatement may be requested for real estate improvements 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 malting 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.
and Title) (Date)