Loading...
HomeMy Public PortalAbout048-2006 - Tax Abatement - Color Box - equipment.pdf.w.exhORDINANCE NO.48 -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. 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-l. 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 - 10 YEARS COLOR -BOX, LLC Jobs Retained: 334 Jobs Created: S Estimated New Value: $6,441,000 Dated: June 23, 2006 Passed and adopted this day of 2006, by the Common Council of the City of Richmond, Indiana. /zx,-v Y.sie •d hent (Karl ) ATT S (Karen Chasteen) PRE ENTED to the Mayor of 2006, at 9:00 a.m. the City of Richmond, Indiana, this / day of Clerk (Karen Chasteen) APB/PROVED Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this �K day o , 2006, at 9:05 a.m. Mayor (Sarah (Sarah L.Hutton) ATTES C--y� (Karen Chasteen) STATEMENT OF BENEFITS x {� FORM SBA ! PP PERSONAL PROPERTY State Form 51764 (Rp 1-08) v J 1!) PRIVACY NOTICE Prescribed b the Department of Local Government Finance '•i• f d �} The cost and an s eciflc individuals �/ �. 2%!� salary Information Is confidential: the ii## balance of the filing Is public record INSTRUCTIONS. er 1G 5-1.1-12.1-5.1(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 pperson installs the new manufacturing equrpment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment for which the person wishes to'farm a deduction. Projects" planned or committed to after July 1, 1987, and areas designated after July 1. 1387, require a STATEMENT OF BENEFITS. (IC 6 I' 1-12.1) 2. Approval of the designating body (City Council, Town Hoard, 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 (Fora 103-,ERA) with the township assessor of the township where the property is situated. The 103-ERA must be riled 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 andlor 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(1) and (g)) SECTIONf - ■ Name of taxpayer COLOR --BOX, LLC Address of taxpayer (street and number, city, state, ZIP code) 623 S G STREET/1050 INDUSTRIES RICHMOND IN 47374 Name of contact person 1(765)966-7588 Telephone number SHELLIE MADILL, CONTROLLER SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (s) COMMON COUNCIL OF THE CITY OF RICHMOND, IN 10-1984 11-1991 Location of property County DLFG taxing district number 1050 INDUSTRIES ROAD RICHMOND IN 47374 �WAYNE RICHMOND CORP. Description of manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment ESTIMATED (use additional sheets if necessary) Start Date Completion Date Manufacturing Equipment 07/01/2006 12/31/2007 PLEASE SEE ATTACHMENT R & D Equipment Logist Dist Equipment' IT Equipment SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 334 14, 394, 154 334 14, 394, 154 8 546 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. Manufacturing Equipment R & D Equipment Logist Dist Equipment IT Equipment Cost Besse Value Cost AssessedCost Value AssessedCost Value Assessed Value Current values 38, 684, 164 11, 605, 249 Plus estimated values of proposed project 6,441,000 1,932,300 Less values of any property being replaced Net estimate values upon completion of project 45,125, 164 13, 537, 549 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. Signa re authorize resentative ,(�l/Qyy{�ly� Title Datte}siig feedf (month, day, year) I�J�U h fV � t' L�' Form SBA/PP, page 1 -Copyright 0 2006 DIS, Inc. Client/Loc 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 1C 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 or 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 Mow). 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 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 totality of benefits is sufficient to justify the deduction described above. Approve r ure and title of authod a er) Telphone number Date si ed (month, day, year) - 2a 3 e) Attested by: Designated b9dV * 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-11PP, page 2 - Copyright 02005 DIS, Inc. Clientli-oc Form SB-IA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Color —Box, LLC — Shellie Madill, Controller 623 South C Street Richmond, IN 47374 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 2. Average hourly wage for projected new positions $ 19.67 $ 17.04 3. Average hourly health insurance benefit $ 1.70 1. The length of the abatement you are requesting 10 (A 1-10 year abatement ntay 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. J// ( P�' G, &W.'*1 M4nq_6_' U1316i (AA&6ed Signature itle) (Date) Color -Box, LLC 2006 Tax Abatement Request Description of Manufacturing Equipment Modern Litho Press Useful Life of 15 years (Alternative: install printer in Pelahatchie, MS and shut down 2 of Richmond's printers, lose 24 jobs) Add 2 jobs Electrical Service 50,000 Piping Water & Air 10,000 Foundations 50,000 Piping & Vents 60,000 Printing Press 4,300,000 Powered Conveyor 200,000 Auto -stretch wrapper 60,000 Auto -bander 150,000 Pallet jack 20,000 4,900,000 $4,900,000 Sheeter Useful Life of 15 years Add 6 jobs Sheeter 757,000 Foundation 40,000 Trim System 40,000 Air/Electrical 30,000 Auto -stretch wrapper 60,000 Powered conveyor 150,000 1,077,000 $1,077,000 Gluer Useful Life of 15 years Retain jobs Gluer 264,000 Concrete Work 20,000 Air/Electrical 10,000 Glue Detector 20,000 Bundler 10,000 Conveyor 50,000 Pallet Inserter 30,000 Loadformer 60,000 464,000 $464,000 $6,441,000 The above new & used equipment is being purchased from California and being brought into Indiana.