The URL can be used to link to this page

Home My Public Portal About086-2008 - Tax Abatement - JM Hutton - equipment.pdf.w.exhORDINANCE NO. 86-2008 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 J. M. Hutton & Co., Inc. Jobs Retained: 95 Jobs Created: unknown Estimated New Value: $738,427 Dated: November 6, 2008 Passed and adopted this day of �-2008, by the Common Council of the City of Richmond, Indiana. President (Larry Piker) ATTES • - (Karen Chasteen) P SENTED to the Mayor of the City of Richmond, Indiana, this 9 day of 2008, at 9:00 a.m. 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. Mayor (Sarah L. u on) ATTEST: (Karen Chasteen) / RICEIVED NOY 0 6 2ma iSG��,�tin STATEMENT OF BENEFITS µis PERSONAL PROPERTY 1 a State Form 51764 (R 11-06) Prescribed by the Department of Local Government Finance FORM SS-1 ! Pig PRIVACY NOTICE The cost and any specific individual's salary information is confidential; the halance of the filing is public record per IC fi-1.1-12.i-5.i (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 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 deductions 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 riled 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. Properly owners whose Statement of Benefits was approved after June 30, 1991, must submif 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 /C 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(0 and (g)) Name of taxpayer J.M. Hutton & CO., Inc. Address of taxpayer (number and street, city, stale, and ZIP code) 1501 South 8th Street, Richmond, Indiana 47374 Name of contact person Richard E. Jeffers Name of designating body Richmond City Council Location of property 1653-1659 S. 7th Street, Richmond, Description of manufacturing equipment and/ar research and development equipment and/or logistical distribution equipment and/or information technology equipment. (use additional sheets if necessary) Laser cutting work cell with two work stations, powder coat booth, hydraulic press brake and 30,000 lbs. fork Lift a r • r Current number Salaries Number retained Salaries . g $15.00 per hour 95 NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the COST of the property is confidential. elephone number (765) 962-3591 (765) nu962�S13591 DLGF taxing district number Wayne ESTIMATED START DATE COMPLETION DATE Manufacturing Equipment 10-20-08 12-31-08 R & D Equipment Logist Dist Equipment IT Equipment Numberadditianal Salaries Unknown MANUFACTURING i R & D EQUIPMENT COST I ASSESSED VALUE Current values 738.427 Plus estimated values of proposed project Less values of any property being replaced None Net estimated values upon completion of project Estirnated solid waste converted (pounds) N/A Other benefits: a I hereby cert COST I ASSESSED VALUE LOGIST DIST IT EQUIPMENT EQUIPMENT COST ASSESSED I COST ASSESSED VALUE I VALUE Estimated hazardous waste converted (pounds) NSA r that the representations in this statement are true. Tile Date signed (month, da , President November 6�,year 008 . ie 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 5-1.1-12.1-2. 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; ❑ Ye s ❑ N o 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 $ with an assessed value of $ E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost 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 a Other limitations or conditions H. The deduction for new manufacturing equipment and/or new research and development equipment andior 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 06 years " For ERRs established prior to July 1, 2000, only a ❑ 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 g91Qfn4ia,ed that the totality of benefits is sufficient to justify the deduction described above.. A,2 I : si ature an title f utha i d ber) TeleM mber Date signed (month, day, year) -2'-7 -o- 0k Atleste by:� m� Designated %r " 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 RECEIVED NOV 0 6 2008 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: J.M. Hutton & Co., Inc. 1501 South 8th Street:, Richmond, IN 47374 Richard E. Jeffers 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 $ 15.00 2. Average hourly wage for projected new positions $ ' 15.00 3. Average hourly health. insurance benefit $ 5.15 1. The length of the abatement you are requesting 10 pears {A 1-10 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 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 T3EFI MOMS 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. ovvamers, stockholders, or partners if they own 2% or more of the business, and their family members. 2, Average hourly wagefor 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 defied above) and family members. Please present in the form of ari hourly rate computed using the annual cost per eligible employee divided by 2080 hours. November b, 2008 Signature and Title) cad e fens, President (Date) FORM SB- I A - Attachment J.M. Hutton & Co., Inc. has been engaged in the business of stamping parts for assembly of metal burial caskets for the past 40 years. Due to declining demand in the casket industry nationwide, J.M. Hutton has been diversifying its manufacturing products and currently is engaged in the manufacture and stamping of metal parts utilized in manufacturing of trucks, manufacturing of aircraft and manufacturing of hospital and medical supplies. To be competitive in these new areas, and to retain its current workforce of 95 employees, J.M. Hutton needs to acquire additional manufacturing equipment. This Application for a 10 year tax abatement is requested for the purchase and installation of equipment, as follows: Equipment Cost 1. Laser Cutting Work Cell with two work stations $ 549,000.00 This equipment is being manufactured by Motoman, Inc., West Carrollton, Ohio, and has a projected life expectancy of 15 years. 2. Powder Coat Booth This equipment is being supplied by Tri-State Compressed Air Systems, Indianapolis, Indiana; American Industrial Corporation, Greenwood, Indiana; and First Rate Industries, Hollansburg, Ohio, and has a projected life expectancy of 30 years. 3. Hydraulic Press Brake This equipment is to be supplied by Gladwin Machinery and Supply Co. of Illinois, Inc., Schaumburg, Illinois, and has a projected life expectancy of 30 years. 68,951.00 57,500.00 4. Taylor 30,000 lb. Fork Lift 62,976.00 Supplied by David A. Keener, Inc., Hayden, Indiana; Wiese Planning & Engineering, Inc., St. Louis, Missouri; and Gallo Equipment Company, Chicago, Illinois. This equipment has a projected life expectancy of 20 years. TOTAL $ 738,427.00