Loading...
HomeMy Public PortalAbout039-2006 - Tax Abatement - Milso - Equipment.pdf.w.exhAMENDED ORDINANCE NO.39 -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 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. 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. 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 MILSO INDUSTRIES CORPORATION Jobs Retained: 210 Jobs Created: 0 Estimated New Value: $1,543,267 Dated: April 25, 2006 Passed and adopted this day of In 2006, by the Common Council of the City of Richmond, Indiana. President (Karl Sharp ATTES lerk Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this /g e day of 2006, at 9:00 a.m. 'Alv' oe Jerk (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 1(� day o , 2006, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTEST: -i y Clerk (Karen Chasteen) STATEMENT OF BENEFITS MCEIVE0. APR FORM SBA i PP " PERSONAL PROPERTY +y �, State Form 51764 (R 1 1-06) PRIVACY NOTICE �•,a 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 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 technologgy 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 (CityCouncil, 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 rite a certified deduction schedule with the persons personal property return on a certified deduction schedule (Form 103-ERR) 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/orresearch 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 norm between March 1 and the extended due date of that year. 4. Properly 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 6-t 1-1Z 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 6-1.1-12.1-4.5(1) and (g)) SECTION•• • Name of taxpayer Milso Industries Corporation Address of taxpayer (street and number, city, state. ZIP code) 401 Industrial Parkway Richmond IN 47374 Name of contact person Telephone number Dale Palmer 1765-966-8012 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (s) Common Council of the City of Richmond, Indiana 10-1984,11-1991 Location of property County DLFG taxing district number 401 Industrial Parkway 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 Manufacturing Equipment 05/03/2006 08/05/2006 Washer system R 8 D Equipment Logist Dist Equipment' IT Equipment SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Gurrent number Salaries Number retained Salaries Number additional Salaries 210 7,526,487 210 71526,487 I SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the COST of the property Is confidential. p Manufacturing Equipment R & D Equipment Logist Dist Equipment * IT Equipment* Cost AssessedBesse Value Cost value Cost AssessedAssessed Value Cost Value Current values 3,342,584 943,708 Pius estimated values of proposed project 1,546,267 618,507 Less values of any property being replaced 50,000 7,500 Net estimate values upon completion of project I 4,B38,8511 1,554,7151 SECTION 5 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 authorized represents' Title Date signed (month, day, year) G)pnj �f a Form S13-11PP, page 1 - Copyright @ 2006 DIS, Inc. ClientfLoc 14890 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 is B. The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; 2. Installation of new research and development equipment; 3. Installation of new logistical distribution equipment. 4. Installation of new information technology equipment; C. The amount of deduction applicable to new manufacturing equipment is limited to $ calendar years * (see below). The date this designation expires ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No cost with an assessed value of D. The amount of deduction applicable to new research and development equipment is limited to $ with an assessed value of $ E. The amount of deduction applicable to new logistical distribution equipment is limited to $ F. The amount of deduction applicable to new information technology equipment is limited to $ G. Other limitations or conditions (specify) cost cost with an assessed value of cost with an assessed value of 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 on�l +a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ $ years C] a 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 totality of benefits is sufficient to justify the deduction described above. Approved: (signatureand title of authorized member) Telphone number Date signed (month, day, year) Attested by: / Designated 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 6-1.1-12A 4,5 Form S13-11PP, page 2 - Copyright © 2006 DIS, Inc. ClionVLoc Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: The information requested on this supplement to force SB-1 must be completed and submitted along with your S13.1 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 $ 14.96 2. Average hourly wage for projected new positions $ 3. Average hourly health insurance benefit $ 2.57 1. The length of the abatement you are requesting 10 years ears (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 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. (Authorized Signature and Title) " " (Date Milso 2006 Abatement Request List Equipment/Service Vendor Amount Exhibit Useful Life Pre -paint Preparation System Koch & Sons 1,155,000.00 "A" 10 Years Spray Booth Extension, IR Ovens, Conveyor... Koch & Sons 299,300.00 "B" 10 Years Paint Room Expansion Smarelli 36,100.00 10 Years Engineering and systems services R Talbert Consulting 21,800.00 10 Years Electrical Contractor Coker Elec 15,567,19 10 Years Enhance Exhaust Controls & Filtration of Emissions Trinity Consultants 15,500.00 10 Years 1, 543, 267.19 03/03/06 C 4 l ("r:�' t Milso Indcrstries C?N 05435, Revision C Pa ORGE KOCH SONS, LLC of Evansville, Indiana, proposes to design, fabricate, deliver, install, and provide field startup services for the EQUIPMENT TO BE ADDED TO THE EXISTING PRIME PAINT FINIISHING SYSTEM as shown on OCH drawing QN 06-135 Sheet L01, Revision D, dated 03/03/06 and L02, Revision D, dated 03/03/06 for MILS INDUSTRIES of Richmond, Indiana, and in accordance with the following specifications,. This contract document consists of the following major sections: a System Design Data Equipment Component Description Prime stem U Addlitiiol i rroe t Surface Preparation Machine Hot Water Keating System Clean In place Unit Reverse Osmosis (r.O.) Water System Blow -Off System * Dry -Off Oven Forced Cooling Enclosure Flash Tunnel Cure Oven Overhead Monorail Conveyor System KochSmarlO Control System Supervision & Assembly Additional Services Start -Up & Training Customer Responsibilities Pricing a Terms Of Sale 03103106 Milso Industries QN: 05-135, Revision C base prices t �-� L' A '' 4D a:' Page 52 The above described equipment can be designed, fabricated, delivered, and installed complete with startup services for the foal suite of.. ... 1,155,000.00. F.O.B. Origin, freight collect The prices quoted are based on current Costs of material and labor, and if not accepted within thirty (30) days from the date o-r this proposal for execution Immediately thereafter, will be subject to change. Pricing for steel is based can raw material surcharges as of the proposal date. Freight for equipment to your site is based on the fuel surcharge as of the proposal date. [due to the current volatility, a contract adjustment may be required based on the surcharges at the date the steel and freight is ordered. Current surcharges can be provided upon request. L �6_ J-C George Koch Sonny LL tick A. Cannon 10 South Eleventh Avenue CUSTOMER SERVICE MANAGER Evansville, IN 47744 Telephone: (812) 465-9716 (�12) 465�960fl Facsimile: (812) 465-�9876 Cell: (812) 455-9335 E-Mlail: rac@kochllc. com SING U73 March 30, 2006 Mr. Dale Palmer Milso Industries 401 Industrial Parkway Richmond IN 47374-3709 RE, Spray Booth Extension, Conveyor Addition, ( New electric I.I. Ovens, & Flash Tunnel Extension Dear Dale Koch is pleased to quote Milso the following pricing for you're Spray Booth, New Electric I.R. Oven and Conveyor Modification Project. This has been quoted using a marked up copy of -the existing plant layout. (South Brooklyn Casket dated 09-07-95) This will include the following items: Color Spray Booth Addition Field check to tale required Measurements and review access to the equipment. Freight. > Installation Add 12'-0" to the length of the existing Booth. This will include new roof and Fall panels. Remove and Re -use the end mall of the existing spray booth. Add a new 6000 CFM Supply Fan. This fan will pull air from the building. Add a new 6000 CI~M Exhaust Fan. This will include the required stack to exhaust the air to atmosphere. (approx. 8'-0" above the building roof.) Supply filter wall will be included with filters and filter frames, Exhaust filter wall will be included with filters and filter frames. (3) 4' 0" light fixtures will be mounted in the roof panels. The following items have not been included-, Removal of any utilities that are attached to the end of the existing spray bootie wall. �= Roof openings. Power from the new fan junction boxes to the existing control panel. Power from the new light fixtures to the existing lighting source. Any required building modifications. e > l:- ` 6"4 "L, ( 6: ) ConveYor Addition and New Flash Tunnels Field check to take required measurements and review access to the equipment. > Freight. Installation Add approx. 90'-0" of new floor conveyor. > Remove existing 90 degree turns. k- Add (4) new pallets. Add (1) pallet turn located between the new I.R. oven and the existing oven. New exhaust fare and required stacks to be located near the flash tunnel 1 I.R. oven conncetion. ,add a 70' 0" Flash Tunnel from the Color Booth to the Npiry Fiprtrir I P Citron CUSTOMER DOTE: WE ARE ADDING ABOUT 90'-0" OF NEW CONVEYOR. WE I' "E NOT REVIEWED THE ADDED CONVEYOR LOAD AND IT'S EFFECTS ON THE EXISTING CONVEYOR DRIVES. The following items have not been included Cutting power to all utilities. New required loot' openings. Dower to the re -located oven control panel. Any required building modifications. ernolifiP'nn nf fhi= ovi,-fine & P r,eeaoe 9.r! .aw,�r,lT a r New Elecreic I.I , Oven Installation Complete with control panel. The following items have not been included: > Power to the new I.R. control panel. > Removing power from the old I.R. riven. PRIME BOOTH MODIFICATION AND DEMOLITION This will include the following lteme-, Prime Spray Booth Modification Field check to take required measurements and review access to the equipment, > Freight. Installation Remove the baffle section in front of the exhaust plenurn. This will add 18" to the work area of the booth. Install the new monorail conveyer in the center of the booth. (8' 0" center of rail to the filter walls on bath sides.) Modify both end booth walls for the new part opening. Re -use the existing Exhaust Fars. This will include the required stack to exhaust. Add new floor mounted exhaust duct. This will include 24" x 24" x 2" filters and filter frames and one roll of filter media. The top of this duct will be covered V steel grating. Access platforms will be provided can each side of the exhaust duct. The (2) existing exhaust stacks will be removed and re -installed .as supply fans. The existing exhaust plenum will be re -worked and provided with the required supply filters and filter frames, The following items have not been included - removal of any utilities that are attached to the end of the existing spray booth Wali. Roof openings. Power from the relocated exhaust fart junction boxes to the existing control parcel. Any required building modifications. �= The controls for the (6) fans will be included in the main project control parcel. InstallationSchedule- Koch will install as much equipment as possible prior to the (2) two week shut- down. Two weeks to complete all the new equipment installation. (l.R oven -flash tunnels - conveyor) This equipment is to be located on the west side of of the waif shown behind the existing I.R. Oven. Four day long weekend to complete the booth modifications and tie in the new and old conveyor. BAS5 PRICE The above Booth Modifications, Conveyor Addition, (2) New Electric I.R. Ovens, New Flash Tunnels, Insulated tunnels and equipment demolition can be engineered, fabricated and shipped iqcludin Installation for the FIRM price of Please call if you have any questions or need any other information. Thanks Rick Cannon Systems Engineer Customer Service Manager Ph 812-466-9716 FX 812-465-9876 CELL 812-455-9335