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HomeMy Public PortalAbout031-2006 - Tax Abatement - Landis Plastic - Equipment.pdf.wORDINANCE NO.31 -2006 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 frown 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. 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. 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 LANDIS PLASTICS, INC Jobs Retained: 236 Jobs Created: 4 Estimated New Value: $3,370,025 Dated: March 15, 2006 Passed and adopted this 4;:�_ day of 2006, by the Common Council of the City of Richmond, Indiana. _ ,President (Karl Sharp) ATTEST: _ ty Clerk (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this/ Co day of �W�' 2006, at 9:00 a.m. Clerk (Karen Chasteen) APPR VED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of , 2006, at 9:05 a.m. /�/�ayor (Sarah L. Hutton) ATTEST (Karen Chasteen) STATEMENT OF BENEFITS RECEIVED MAR 2 0 o$ FORM SB-1 / PP PERSONAE. PROPERTY State Form 51764 (R / 1-06) PRIVACY NOTICE +a+s Prescribed by the Department of local Government Finance . The cost and any specific individuals salary Information is confidential: the balance of the filing is public record INSTRUCTIONS: per lC 6-1.1-12.1-5.1 (c) 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 andlor information technology equipment for which the person wishes to claim a deduction. Projects" planned or committed to after July 1, 1987, and areas designated alter 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 persons 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 f 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 technolo,% equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must rile the form botween March land the extended due date of that year. 4. Property owners whose Statement of Benefits was approved after June 30. 1991, must submit Form CF-1 / PP annually to show compliance with the Statement of Benefits. (lC 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 6-1.1-12.1-4,5(1) and (g)) SECTION •' • Name of taxpayer Landis Plastics, Inc. Address of taxpayer (street and number, city, state, ZIP code) 630 Commerce Road Richmond IN 47374 Name of contact person Telephone number Garry Teeguarden 765-966-1414, Mike Putman 330-562-966fa )AXIbBeV1c_,rpA S�--.?DZp-2W ?-0 SECTION 2 LOCATION AND DESCRIPTION OF •a•a r PROJECT Name of designating body Resolution number (s) City of Richmond - Dept. of Metropolitan Development Location of property County ❑LFG taxing district number G30 Commerce Road Richmond IN 47374 Wayne Richmond Corp 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 Injection Molding Machine, Machine Upgrade, Mold Manufacturing Equipment 05/01/2006 08/31/2006 R&DEquipment Controllers, .Stackers , Mold Frames and. Packaging System for two new product lines. Logist Dist Equipment' IT Equipment' SECTIONOF • AND SALARIES AS RESULT OF •••• • PROJECT Current number Salaries Number retained Salaries Number additional Salaries 236 1 7,970,000 236 7,970,000 4 80,000 ESTIMATEDSECTION 4 TOTAL COSTAND VALUE OF -••• r PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the Manufacturing R & D Equipment Logist Dist EquipmentIT Equipment' Equipment COST of the property is confidential. p Cost ssesse Cost sass" Cost sass" Cosy ssesse Value Value Value Value Current values 21, 062, 750 5,916,597 Plus estimated values of proposed project 3,370,025 1,346,000 Less values of any property being replaced Net estimate values upon completion of project 24, 452, 775 7,266,597 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION• hereby certify that the representations in this statement are true. Signature of authorized rep a Title Date signed (month, day, year) Form SS-ItPP, page 1 - Copyright 0 2006 DIS. Inc. ClienVi-oe 063 063 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 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 ❑ No 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 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 after July 1, 2000 is allowed for: ❑ 1 year ❑ 6 years *' For ERA's established prior to July 1, 2000 only a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 6 years 114 years ❑ 9 years ❑ 5 years *` ❑ 1 o 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 totality of benefits is sufficient to justify the deduction described above. Approved member) Telphone number Date signed (month, day, year) Attested bv: Designated body 1 * 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 6-1.1-12.14,5 Form SB-1/17P, page 2 - Copyright © 2006 DIS, Inc. CllenllLoc Feb-07-06 05:05pm From -CITY OF RICKMOND IN +765962TO24 T-071 P.04/08 F-018 Forth SR-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person; 5e .-- /? Pif'z The informazion. requested on this supplement to form S13-1 must be completed and submitted along with your S]�-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 Womlatio'a requested an this fors.. It is subject to review as a part of our motut06-49 process. 1. Average hourly wage for existing etttployees 2. Average hourly wage for projected new positions /6 " s= 4 " -� 6'1 �tv Z.,��1� 3. Average tarrc hourly b-414 =Sun betsefkvzz' IyLA'e a b&,A4 s Gs 3 /6 !n O� base- POLY _ 1. The length of the abatement you axe requesting-- (ri 1-10 yrur abatemenu mo be requestedfar real estate improve»mem-T ;and marwfacmrrng equipment) 2. If purchasing equiprueat, Plc attach a list tliar includes the following: • brief description of each piece of equipment being purcid the projected useful Iife of each piece of equipment the gate(s) in which the egtup=at is being brought into Indima fmm 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 iraprovemeni (new cons.uction, rehab, expansion, etc.) 0 sizc of The proposed real estata improvements • costs of the proposed real estate improvements ]€l1�BAV1Tl•ONS 1. Average hourly wage for existing employees: for your most recent pay period please provide the average base wage per hour for all cr rma U1 time, roam -supervisory employees. Do not include the following groups: A. pjal time employees; a. mauagemeat, supervisors, foreme., or =y othcr supervisory personnel; C, pwners, stockholders, or pa=ers if thcy owa 29/n or Beare of the business, and their family members 2. Average hourly wage for projected now positions: UW the same d4tuiti8u of employees w be included as in number one above. 3. Average hourly health insurance h=At: Please provide nlne current company paid health insurance bca lzfhs provided to hourly erxhplayees (as defied above) and fahrnily m=bers. Phase present in the form of ate hourly rate computed using the aran"w cost per eligible employer divided by 2080 hours. 1L CC 4� (Authori=d Sighature and "Title)- {pae) Cj �� Contact Persons: Landis Plastics, Inc. 630 Commerce Road, Richmond, IN 47374 Attachment to Form SB-1A Plant Manager Garry Teeguarden Plant Controller Mike Putnam David Berkman Listing of Equipment: Injection Molding Machine Injection Molding Machine Upgrade Mold Controller Mold Stackers Mold Frame Packaging System Total Project 765-966-1414 330-562-9600 612-306-2520 $1,263,000 26B4O00 47,725 590,300 741,500 459,500 $3,370,025 All of the above equipment would be purchased new or acquired through a capital lease agreement. The average economic life of the above equipment is 10 years. The Richmond Facility is competing for Capital Project Investment Dollars with several affiliated facilities. The Above projects would bring two new product lines to the Richmond facility and could require approximately 2 to 4 new employees per shift. Lei-vrent-we are—r-unni-ng two --shifts.