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HomeMy Public PortalAbout019-2007 - Tax Abatement - General Aluminum Mfg. Compa.pdf.w.exORDINANCE NO.19-2007 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: i . 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 General Aluminum Mfg. Company Jobs Retained: 96 Jobs Created: 0 Estimated New Value: $876,625.00 Dated: March 13, 2007 Passed and adopted this c�/ - day of , 2007, by the Common Council of the City of Richmond, Indiana. J Pres ident (Di a Pa i ) i ATTEST:.. Jerk (Karen Chasteen) P SENTED to the Mayor of the City of Richmond, Indiana, this U.,tiAay of 2007, at 9:00 a.m. Clerk (Karen Chasteen) APPROVED by , Sarah Hutton, Mayor of the City of Richmond, Indiana, this day of , 2007, at 9:05 a.m. - S �: --� /4— , Mayor (Sarah L. utton) ATTES : (Karen Chasteen) Fab-23-07 02:42pm From -CITY OF RICHMOND IN 0= STATEMENT OF BENEFITS PERSONAL PROPERTY $— F4rnt S77sa;s.o4) Prcarnbea py Dc DaparTment of LOW Goycmmam F>rrancc +7659627024 T-934 P.07/09 F-427 RECEIVED MAR 1 3 2007 SB 0�j INSTRUCTIONS- T This srarement musr be SuDmrrted to the Dotty designating the ecbnarmc revAa12ar1Qn area phar To the pubhC hsaring if th6 designating body requ,rm rnf0mtapon from The apphcarrr in maRrng Rs decmWn SDOW whetharro de„grate an Economic RevAal2awn Area. OTrrerwrse this Stardment must be submhtsd CO the dees,9n,9Vng body aFFORE al person insWIS The naW m8r?aiCrur1.n9 squipmenr and/orris warch and ClevefopmenT &qurpment, arla/br )6gisLCHI drsrrlAGtiLln squ,pmcnt and/or rnlormar,on TBchnaADgy egir,pmenr for wplm M* person w,shes to Claim $ dBpuCrlal7-Pro�eo " plannna or cominl[rl d rP �rRar hrly 1, T 987 and areas 4esrgnared after July T. 7987 r&quire a STATEMENT OF BENEFITS (1C l}7 q-72 7) 2. Approvw of the aes gnavng dotty (1Cry Council, Town Board, County Counca era) musr be obki,n®a pnor 10,i7srutlatrOri or the now manufacrunng a qu,pmenr and(orm.5oarctr ono development equrpmenrarreYorlaglstfce) drsrrrbubon equipmev nt anaor,nformat,An rachnalogy equrpmnnt, BEFORE & enduct,an may De tippmitad 3. To AIFIP 1 dear.ustn Form 322 ERA/APMI antWor Form 322 0Rq/pp Other, must Pe filed wrlh ate counry audRor. Form 322 FRAJPPME and/or Form 322 ERArPP OrnBr must be ftdd DB2K aen lvtarcA T aria MIRY 15 of that Qsse88menr ybar,n which new mans facrur,ng aqu,pmBnr and/or research and dov,lopmenr equrpmanr and/or logsticar Grsrflbrrlion equ pmanT and/or rnlarmatron technology equipment becoirres assossaD O. urdess a fling exrension ryas Wean a66tarn0d. A person wild obralns a filing extension musr file rhz form Berwebrl March 1 rinq tyre BxEBnrlad clue 0a10 of that year- 4. Proype* owners whasp Sralomont of Benefits was approved after June 30, 1991 must SubmtT Form CF 7 annually 10 show compliance w,tn the Slaremenr 01 Benafrts. (1C 6-7 7-12 7-5 6) 5 The SchyAules dsratrlrshed under tC 6-1.1-72 7-4(d) and IC 8-7.1-72 7-4 5(e) 1911eCT,ve July 1, 2000 apply to any sraroment of beneffts filed on or after July 7, 2000. Thp s0rtadule5 Affective prior ro July 1, 2000 shall continue ro apply To those staramenr of h unefirs filed ocforc July 1, 2000 iriame attaxpayesr Gt 1 A-i m; L, "rK N a n ,) Agaress at mxpayer (sireut and number, city, *Tate and 21P �------~ ~ �--- 15Io 1 Alto 11 fA .S4-r-ec4, l�ic lin.on�l r 111J 47374 Name oT conracr person �ic-1t �'��-��r.san, INiic_%e�t �re_dtm Telephone Hamper 7bs-94�-�1(n( Namt of� ;Inaeng po[Iy K i c k rv%o rA l- o m ri10 r. 1 t7 t.c nc t Resatuuan number Location of property Caunly i51o1 Alk] 1tS•lrec# s �ir�.rnor.d 1,Lip Taxi n distnet / 1 �cl+nticnd ne- 041=npuort 01 manufacturing oqu,pmeni angror research ana geve)opr'nerrt equiprner3E anglor toglsucal G43Mbuir0rt equlpmeni angror rnfarmauon lccnno"y equipment (use addwitai meats if necessary) ESTrrwA7Ep Srart Pate Complewn Rare eqt ip~,(L+ 40 M(A nu � �� e r� iwanufacwnng Equipment fC. ZOO(P 2007X_ lZ & D Egwpment 41gwl Dist Equipment' Pr et t M, rza co mft 9_4.j" IT Equipment - Current flumber 1 �d Number reia,neq salanes Number agq,tionat Salaries 9s / r oao ..— • r « r N 7>c: Pursuant To IC 6-1.1-12 15 (0) (2) a equip'!', 9 R 1, A Egpiptrwnt t a97s[ pis[ Equiprrten[ rl EQu,p,ne,e COST of U1e propary is CanficleniraL CastValue Cos[ Asssett Cost value Curren[ values Cos[ 7SOO Vatceo blue 1ASZ1, 6 Plusesumatea values 01 proposecl prolecr 1,gs7, lif Less values of any property ocmg F&PIDOe l Not amirAajea vak4a upon cmpleAcetr oT pro,ect Esuffiareq E04 Waste Convened (pounds) EsMated hazardiaus waste caayerted (pounds) Other bensfits - - Mat the at = See IC-i2,7-23- are Dare signep (mgnrh, aay, year) Fab-23-07 UiQpri From -CITY OF RICHMOND IN +7659627024 T-934 P.08/D9 F-427 We have rpvtewerl our prior actions relating to the designation of trlrs economic revitalization area anti find that the applicant Meets the general stan4ar05 adopte(I in Elie resolution previously approved by this body. Salo re+sgluuon, passed under IC 6-1.7-12.1-2.5, pro- vides for the following )IMItations as autrionzed under IC 6-1.1-12.1-2. A. The designated area has been Ilmaed to a period of time riot to exC6ed designation expires is 8. The type of geduction that is allowed in Erie designated area Is ilmited to: I, lnstailatlon of new manufacturing equipment: 2 _ Installation of new research anq development equipment, 3 installation of new logisticai distribution equipment- 4 - InstallattOrt Of new information technology equipment: calendar years ` (See below). The date this Q Yes No ❑ Yes "Na ❑Yes 13140 [71yes Q N o C .Trie amount of dedumQn applicable to new manufacturing equipment Is limited to $ value of $ D _Trio amount of deduction applicaNe to new research anq development equipment is limaed to $ an assessed value of $ E. The amount of detttiction applicaple to new logistical distribution equipment is limiter] to $ assessed value of $ F. The amount of geduction appllcaple to new Information technology egttlpment Is IiRmiteq To assessaa value of $ cost with an assessed cost with cost with an cost wim an Cti Other limitations or condrtiorts (Specriy) H. Tne deducuon for new manufacturing equipment an wor new research and development equipment and/or new logistical distribution 217ulpment andfor new Information technoiogy equipment installed and first claimed eligible for deduction after July 1, 2000 Is allowed for - El 1 year 0 6 years For E:Rxs establisheti prior to July 1, 2000 poly a l3 2 years C] 7 years 5 or 10 year scheduia may De deductsd. l7 3 years ❑ S years 4 years ❑ 9 years Q 5 years -- © 1 a yi:ars " Also we }rave reviewed the information contained in the statement of DanefitS QnO find {}tat the estimates anq expectations are reason- a0le and have determined that Erie totality of peoefi:s is safficlem to justify this deduction described above, Approve (s'gnajgra and W& a ayMoozad rn&rnborj T&lephorie number riots srgmed (month, day. yea* Awmed by: i Desianated Doov If the desigflating poly Ilmlts the qmepe riod during which an area Is an aconomic revrfaiization area, it 44es not limit the length of time a taxpayff Is entitled To receive a tfeduMon to a nuMtier of years designated under IC 8-1.1-12.1-4.5 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: 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 $ /a. 75' 2. Average hourly wage for projected new positions $ 3. Average hourly health insurance benefit $ 1. The length of the abatement you are requesting eArs (A 1-10 year abatement may be requested far 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 infonmation from the lease that explains which party is responsible for paying the property taxes 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. /3l0 (Authorized Signature and Title) (Date) General Aluminum Mfg. Company Richmond Plant 1561 NW 11th Street Richmond, IN 47374 Phone: 765-966-6161 Fax: 765-966-6163 Plant Manager: Rick Steffenson Maintenance Manager: Jim Furlow Low Pressure Aluminum Casting Expected Useful Life of Equipment 10 years Casting Machines: Disassembly, Transportation, Assembly and Installation of Low Pressure Casting 228,864.00 Spare parts - casting machine 4,000.00 Preparation of plant for installation 29,600.00 Relocation of 10 ton crane 15,350.00 Vertical columns - crane system to 6,400.00 -T-Faigapaptatiam ef equipment warehouse Waste Water Storage Tank 750.00 Repair holding furnaces (4) 20,000.00 Guard rail - bulk storage 3,890.00 Subtotal - Casting Machines -66&1 Compressors: Installation of two air compressors 42,357.00 Furnace: Furnace from Tupelo, MS 358,284.00 Transportation of furnace 110,900.00 Disassemble/Reassemble furnace 30,900.00 Furnace refurbish mentlmodifications 12,350.00 Install pit for furnace tap out into ladles 5,000.00 Subtotal - Furnace-529;399:99-- TOTAL PROJECT COST 44,257,240,50 $g710) c, :15'