HomeMy Public PortalAbout038-2007 - Tax Abatement - Bev's Threads - Equipment.pdf.w.exh.ORDINANCE NO.38-2007
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.
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 — 5 YEARS
Bev's Threads, Etc. LLC / Theo. Tiedemann & Sons Inc.
Jobs Retained: 34
Jobs Created: 7
Estimated New Value: $35,000.00
Dated: June 8, 2008
(-::aPassed and adopted this day of 2008, by the
Common Council of the City of Richmond, Indiana.
Q,., President
(I Larry arker)
ATTEST
(Karen Chasteen)
S NTED to the Mayor of the City of Richmond, Indiana, this day of
2008, at 9:00 a.m.
Jerk
(Karen Chasteen)
APPRO b me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
day f ,� , 2008, at 9:05 a.m.
VA 1�6zkMayor
(Sarah L. Hutton)
ATT T-�
(Karen Chasteen)
STATEMENT OF BENEFITS
;< PERSONAL PROPERTY
State Form 51764 (Rl 1-06)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS:
FORM SB-1 i PP
PRIVACY NOTICE
The cost and any specific individua€'s
salary information is confidential; the
balance of the filing is public record
per IC 6-1.1-12.1-5.1 c and d .
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, 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, most submit Form CF-I / PP annually to show compliance with the
Statement of Benefits. (lC 6-1.1-12.1-5.6)
5. The schedules established under IC 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 6-1.1-1 Z 1-4.5(0 and (g))
SECTION•- •
Name of taxpayer
Bev's Threads, Etc. LLC 1 Theo. Tiedemann & Sons Inc.
Address of taxpayer (number and street, city, state, and ZIP code)
621 South J Street / 1000 Industries Road
Name of contact person
Telephone number
Lisa Baker
(765) 935-0385
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
Richmond Common Council
Location of property
County
DLGF taxing district number
Midwest Industrial Park, Industries Road
Wayne
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment.
(use additional sheets if necessary)
START DATE
COMPLETION DATE
Manufacturing Equipment
03/01/2008
12/31/2008
Color Lab Equipment
Tow Motors (2)
R & D Equipment
Logist Dist Equipment
IT Equipment
SECTION3 ESTIMATE OF • AND SALARIES AS RESULT OF -•^• ■ -••
Current number Salaries Number retained Salaries Number additional Salaries
34 998,484.00 34 998,484.00 7 681,520.00
SECTION■
TOTAL COSTAND
VALUE OF •r•• ■ •^•
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the
MANUFACTURING EQUIPMENT
R & D EQUIPMENT
OG PMEI T IT EQUIPMENT
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
COST
ASSESSED COST
VALUE
ASSESSED
VALUE
COST of the property is confidential.
Current values
700,000.00
299,110.00
Plus estimated values of proposed project
35,000.00
Less values of any property being replaced
0.00
Net estimated values upon completion of project
735,000,00
SECTIONS WASTE CONVERTED AND OTHER BENEFITS
PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits:
SECTION•
I hereby certify that the representations in this statement are true.
Signature of autho rerpresenta ZJZ.N-
Title
l,A r
Date signed mope , day, year)
� 9O
FOR DESIGNATING
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
8 . The type of deduction that is allowed in the designated area is limited to.
❑ Yes ❑ N o
1. Installation of new manufacturing equipment;
2. Installation of new research and development equipment; ❑Yes []No
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 $ ___ 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 ERNS. 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
determined that the ality of is sufficient to justify the deduction described above.
Approved: ($ig a +t% of a homed member
Telep ne number
a signed (month, day, year)
-79 3 .Z
7
Atte by:
Designat 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 6-1.1-12.1-4.5
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-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 $ 11.83
2. Average hourly wage for projected new positions $ 17.45
3. Average hourly health insurance benefit $ 7.77
1. The length of the abatement you are requesting _ 5 .Years
(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
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 is 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.
e n
&AA,oJCoN'T�.4t.L �vrd�
(Authorized Signature and Title) l (Date)
Statement of Benefits
Attachment to SB-1IPP (State Form 51764)
Bev's Threads, Etc. LLC 1 Theo. Tiedemann & Sons, Inc.
621 South J Street 1 1000 Industries Road Richmond, IN 47374
Contact Person: Lisa Baker
Equipment brought to Indiana from New Jersey:
VALUE
Color Lab Equipment 20,000
Tow Motors (2) 150000
PROJECTED LIFE
5 yrs
5 yrs