HomeMy Public PortalAbout001-2007 - Tax Abatement - Palladium Item - equipmentORDINANCE NO. 1-2007
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.
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:
Computer -To -Plate Project - EQ_UIPMENT —10 YEARS
Palladium Item, Division of Federated Publications
Jobs Retained: 2
Jobs Created: 3
Estimated New Value: $192,800.00
Dated: December 15, 2006
Passed and adopted this day of , 2007, by the
Common Council of the City of Richmond, Indiana.
i
President
(Dian Pap in
ATTEST: _ Clerk
(Karen Chasteen)
P ENTED to the Mayor of the City of Richmond, Indiana, this day of
2007, at 9:00 a.m.
City Clerk
(Karen Chasteen)
APPROVED by m , Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
day of 2007, at 9:05 a.m.
Mayor
(Sarah L. Hutton)
ATTEST: 'ty Clerk
(Karen Chasteen)
STATEMENT OF BENEFITS FORM
s PERSONAL PROPERTY ,���.® DEC,SB -1 1 PP
a' Slate Form 51764 (5-04)
Prescribed by the Department of Local Government Finance
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 deduction, Form 322 ERA/PPME and/or Form 322 ERAIPP Other, must be filed with the county auditor. Form 322 ERA/PPME and/or Form 322
ERA/PP Other 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/nr information technology equipment becomes assessable, unless a filing extension has been
obtained. A person who obtains a filing extension must file the form between March f 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 annually to show compliance with the Statement
of Benefits. (fC 6-1.1-12.1-5.6)
5. The schedules established under IC 6-1.1-12.1-4(d) and iC 6-1.1-12.1-4.5(e) effective July 1, 2000 apply to any statement of benefits filed on or after
July f, 2000. The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits filed before July 1, .2000.
Name of taxpayer
— -,�Ay
Address of taxxRayer (street and number, city, state and ,ZIP, /code)
II �� %Ilah �1 +%'7BYtG!'r %N 4 r%V
Nam f contact person Telephone number
SECTION 2 LOCATION AND DESCRIPTION
Name of designating body
OF PROPOSED PROJECT
Resolution number
Location of prop y
/ tci d�ioc 3
County
Tax�'ag district .
m
Description of manufacturing equipment and/or research and development equipment
and/or logistical distribution equipment and/or information technology equipment
(use additional sheets if necessary)
lL'eA
ESTIMAT
Start Date
Completion Date
Manufacturing Equipment
07
5 07
j
R & D Equipment
Logist Dist Equipment'
IT Equipment
SECTIONOF • AND SALARIES
Ties
Current number Salaries Number retained
7
AS RESULT OF -•-r
S lanes
�s 700
. PROJECT
Number additional Salaries
3 `1' C7Vo
SECTION 4
N il=: Pursuant to IC (d) (2) the
COST of the property is confidential.Assessed
Manufacturing
Equipment
R & D Equipment
I_ogist Dist Equipment IT Equipment'
Cost
Value
COS/
Assessed
Value
Cost
Assessed Cosy
Value
Assessed
Value
Current values
Plus estimated values of proposed project
to
Less values of any property being replaced
Net estimated values upon completion.of project
SECTION•
■ AND OTHER BENEFITS
PROMISED
BYTHE TAXPAYER
Estimated solid waste converted (pounds)
Other benefits: WIA
that the
Signature of
Estimated hazardous waste converted (pounds)
is in this statement are true.
Title A I Date
day, year)
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, pro-
vides 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 ❑ 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 of $
❑ ,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 after July 1, 2000 is allowed
for:
❑ 1 year ❑ 6 years '" For ERA'S established prior to July 1, 2000 2LIy 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 reason-
able and have determined that the totality of benefits is sufficient to justify the deduction described above.
Approved: fsignature and tiff authorized member)
Telephone number
Date signed (month, day, year)
A - ,� ✓v
Attested by:
Designated body
tJ
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
Palladium Item
Computer -To -Plate Project
Description of Project
Purchase and installation of computer -to -plate system which will eliminate manual
plating process and film usage, and allow for better quality on the Community Press in
the annex facility.
Equipment List
Vendor: Kodak
1 Trendsetter News 150 plate imager
1 Print console system with workstation
1 Plate rotator
1 Mercury News 85 in -line plate processor
Total bid $89,300
Vendor: Burgess „Industries
1 ACR2440 auto Plate punch/bender
1 plate spinner
1 ET-25 lift conveyor
1 sorting station
Total bid $72,500
Other vendors:
1 server and computer equipment
Upgrade to Newsway system
Furnace
Miscellaneous construction
Total bids $49,000
Estimated Total Cost of project $210,800
Expected useful life of equipment 15 years
Form SB-lA
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
W M.Qal In - Tay,
Company Name, Address & Contact Person: Iye,,AA .
/A/ 179711
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 $ /5 ,'71
2. Average hourly wage for projected new positions $ 15 . D &
3. Average hourly health insurance benefit $ 513
1. The length of the abatement you are requesting
(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
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
DEFEUTIONS
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.
/ �/A/,
(Authorize S' ature and Title) (Date}
MEMORANDUM
Department of Metropolitan Development
TO: Richmond Common Council
FROM: Tony Foster II
DATE: December 22, 2006
RE: Palladium -Item Tax Abatement Requests
Attached you will find a tax abatement request from the Palladium -Item. The abatement
application received is complete and was received on December 15, 2006. After a review
of the application, it appears to meet all criteria in order to be considered. The request:
• is located in an Economic Revitalization Area per IC 6-1.1-111
• was submitted prior to the "installation of new manufacturing equipment" per IC
6-1.1-12.1-4.5
• meets the definition of new manufacturing equipment per IC 6-1.1-12.1-1, section
1.
The applicant used an old SB-1A. As a result, I called and received the following
answers for the question missing on the attached SB-1A:
• The equipment is new,
• The equipment is coming from out of state and
• The equipment will not be leased.
Please let me know if you have any questions or if I can be of further assistance.
MEMORANDUM
Department of Metropolitan Development
TO: Richmond Common Council
FROM: Tony Fos II
DATE: January , 0
RE: Palladium -Item Tax Abatement Request
Ordinance 1-2007
Attached you will find a tax abatement request from the Palladium -Item. The abatement
application received is complete and was received on December 15, 2006. After a review
of the application, it appears to meet all criteria in order to be considered. The request:
• is located in an Economic Revitalization Area per IC 6-1.1-12.1
• was submitted prior to the "installation of new manufacturing equipment" per IC
6-1.1-12.1-4.5
• meets the definition of new manufacturing equipment per IC 6-1.1-12.1-1, section
1.
The applicant used an old SB-lA. As a result, I called and received the following
answers for the question missing on the attached SB- I A:
• The equipment is new,
• The equipment is coming from out of state and
• The equipment will not be leased.
In addition, I have had conversations with P.J. Blacker of the Palladium -Item regarding
some of the requested items. Specifically, I asked for more information regarding the
"Upgrade to Newsway System" and "misc. construction" items. From what I understand,
the "upgrade" will be considered new "IT Equipment" (IT Equipment is allowable per IC
6.1.1-12.1) and may be considered. I also informed Ms. Blacker that the "misc.
construction" item may need to be more fully delineated for the tax abatement committee.
I just wanted to inform you of my conversations as you complete your interview with the
company.
Please let me know if you have any questions or if I can be of further assistance.