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Home My Public Portal About041-2006 - Tax Abatement - Vandor - Equipment.pdf.w.exhAMENDED ORDINANCE NO. 41-2006 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 t� ten (10) years (i.e. one to ten years); and ' WHEREAS, an owner of new manufacturing equipment i 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, Unless otherwise stated in the ordinance applicable to a specific project or to specific equipment, the approval shall terminate two (2) years after the date of the final ordinance. However, this termination does not limit the length of time a property owner is entitled to receive an abatement of property taxes to two (2) 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: 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. 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 Vandor Corporation Jobs Retained: 70 Jobs Created: 5 Estimated New Value: $3,114,000 Dated: April 26, 2006 Passed and adopted this day o 2006, by the Common Council of the City of Richmond, Indiana. President (Karl Sharp) ATTES (Karen Chasteen) RESENTED to the Mayor of the City of Richmond, Indiana, this day of c� 2006, at 9:00 a.m. (Karen Chasteen) APPROVE me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day 2006, at 9:05 a.m. Mayor (Sarah t Hutton) ATTES Jerk (Karen Chasteen) STATEMENT OF PERSONAL PROPERTYITS State Form 51764 (R 1 1-06) race Prescribed by the Department of Local Government Finance�11� FORM SBA 1PP PRIVACY NOTICE The cost and any specific individual's salary information is confidential; the balance of the filing is public record er IC fi-i.1-12.1-5.1 c and d). 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, 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 i 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, must submit Form CF-1 / PP annually to show compliance with the Statement of Benefits. (IC 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 6-1.1-12.1-4.5(o and (g)) SECTION•- • Name of taxpayer VANDOR CORPORATION Address of taxpayer (number and street; city, state, and ZIP code) 4251 W INDUSTRIES ROAD RICHMOND, IN 47374 Name of contact person Telephone number CYNTHIA STAMPER 765-966-7676 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body COMMON COUNCIL OF THE CITY OF RICHMOND, IN Resolution number (s) 10-1984; 11-1991 Location of property 4251 W INDUSTRIES ROAD County WAYNE DLGF taxidistrict number ECIHMOND 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 5/ 1/ 06 5/ 1/ 0 7 SEE ATTACHED R & D Equipment Logist Dist Equipment IT Equipment • SECTIONOF • AND SALARIES AS RESULT OF - • - • f PROJECT Current number 70 Sala te' 067,876 Number retajrtpd Sabi 13067,876 Nuler f`61 oval �VVebOO — 1822 SECTION•TAL COST AND VALUE OF ' • • • i PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING EQUIPMENT R & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT COST ASSESSED VALUE COST ASSESSED VALUE COST ASSESSED COST VALUE ASSESSED VALUE COST of the property is confidential. Current values > > Plus estimated values of proposed project > > Less values of any property being replaced Not estimated values upon completion of project SECTION• • AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) . Other benefits: SECTION• I hproby certify that the representations in this statement are true. Signature o i pre1�2ss we Title CFO oat In� 6 0on�th, 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, 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; calendar years * (see below). The date this designation expires ❑Yes [—]No ❑Yes ❑N o ❑Yes ❑N o ❑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 $ F. The amount of deduction applicable to new information technology equipment is limited to $ CL Other limitations or conditions cost with an assessed value of cost with an assessed value of N. 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 fordeduction on or after July 1, 2000. is allowed for: ❑ 1 year El years ** For ERAS established prior to July 1, 2000. only a 02 years ❑7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 6 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. ApprovedJ(sl atand Mle of authori her) Telephone number Date signed (month, day, year) fit_ ��- SS-7 �- L Attested,v I Desiqpj6d 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 SBA A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name and Address: Vandor Corporation The information requested on this supplement to form S13-1 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 $10.28 2. Average hourly wage for projected new positions $8.75 3. Average hourly health insurance benefit $2.04 The length of the abatement you are requesting 10 YEAR (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 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. GZ-0 / , (Authorized Signature a'nd Title) le � (Date) April 24, 2006 Following is a listing of equipment that is planned for purchase to enhance our capabilities to generate additional sales. This increased capacity is the basis for requesting abatement. Below are estimated values for new equipment purchases. Description of Equipment Cost of Equipment Vendor to Purchase from Pioneer Press $50,000.00 Pioneer Container Shirring Machine $14,000.00 Georgia Attachment Fabric Roll Slitter $17,000.00 Georgia Attachment fbwrrfutffr --2r USED $t4 Miami Industrial Truck CNC Router $200,000.00 Thermwood Scrap Baler & Conveyor . USED $18,000.00 Bale Master Assembly Line System $35,000.00 *** Motion Industries Lot Racking $16,000.00 *** Miami Industrial Truck Stretch Wrapper $12,000.00 BGR Corporation Vacuumforming Tools $30,000.00 Tooling Technology T-Nut Inserter $7,000.00 Stafast Inc. Injection Molding Tools $250,000.00 Custom Molding Dust Collection System $60,000.00 Aget Company Ancillary Equipment $180,000.00 Garber Electrical Industrial Sewing Machines $12,000.00 Georgia Attachment Cutting Table and Accessories $10,000.00 Georgia Attachment Tube Winding Equipment $150,000.00 Taco Mfg Tube'Racks for Storage & Shipping $25,000.00 *** Reeves Mfg $90,666.69- Studebaker GM Trucks Radial Arm Saw System $10,000.00 Mueller Co Inc Sliding Table Saw System $30,000.00 Mueller Co Inc Clamshell Die -cutter $80,000.00 Brausse Die & Converting Loading System $50,000.00 Novatech Air Compressor $25,000.00 Sullair Injection Molding Machines — 4 $1,200,000.00 Mitsubishi Crane System $150,000.00 Material Handling Equipment Portable Chillers $140,000.00 Advantage Vacuumforming Equipment USED $150,000.00 Brown Mold Max & New Arbors —10 $100,000.00 Custom Molding Silo $40,000.00 Novatech Lathe & Tool Room Equipment USED $50,000.00 Bridgeport Pneumatic Notcher $3,000.00 Helmold em r lknulwili> *** Indiana Purchase