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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.