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.