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HomeMy Public PortalAbout059-2006 - Tax Abatement - Recycling Center - Equipment.pdf.w.eORDINANCE NO.59 -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-1. 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 Recycling Center, Inc. Jobs Retained: 82 Jobs Created: I 1 Estimated New Value: $4,743,050 Dated: June 26, 2006 Passed and adopted this day of 2006, by the Common Council of the City of Richmond, Indiana. President (Karl harp) ATTESrl (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this P-2 day of 2006, at 9:00 a.m. (Karen Chasteen) APPROVED by e, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this c day of 2006, at 9:05 a.m. S5��� ayor (Sarah L. Hutton) ATTE T: (Karen Chasteen) STATEMENT OF BENEFITS FORM SB-1 1 PP x PERSONAL PROPERTY �. State Form 51764 (R 11-06) PRIVACY NOTICE +•■ t Prescribed by the Department of Local Government Finance The cost and any specific individuals salary information is eonfidentlal: the balance of the filing Is public record INSTRUCTIONS: perrC 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 parson 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 after July 1. 1987, require a STATEMENT OF BENEFITS. (IC 6-1. i-i2.1) 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 ofthe township where the property is situated. The 103-ERA must be flled 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 equippment 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 64. i-i2.1-4.5(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-i2. i-4.S{i) and (g)) SECTION. ■ Name of taxpayer RECYCLING CENTER, INC. Address of taxpayer (street and number, city, state, ZIP code) 630 SOUTH M STREET RICHMOND IN 47374 Name of contact person Telephone 1(765)966-8293 number DEBRA EDELMAN 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 or property County DLFG taxing district number 630 SOUTH M STREET RICHMOND IN 47374 IWAYNE RICHMOND CORP. Description of manufacturing equipment and/or research and development equipment ESTIMATED andlor logistical distribution equipment andlor information technology equipment (use additional sheets if necessary) Start Date Completion Date Manufacturing Equipment 05/15/2006 05/15/2007 See attached 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 82 3,614,490 82 3,614,490 11 320,320 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 Assessed Value Cost Assesse Value Cost Assessedssesse Value Cost Value Current values 6,230,009 2,469,003 Plus estimated values of proposed project 4,743,050 1,422,915 Less values of any property being replaced Net estimate values upon completion of project 1 12, 973, 059 13,891,9181 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: CERTIFICATIONSECTION 6 TAXPAYER I hereby certify that the representations in this statement are trite. Signature of authorized Ssentative 0- k& iiA� _ Title UiOuo �4 At Date signed (month, day, year) '� -ate -.-7006 pranikIre-8 :496t444 er CP44 (0-24-04 VT Farm SB-iIPP, page 1 -Copyright@2006 DIS, Inc. qv 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 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 D 6 years For ERA's established prior to July 1, 2000 ova ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. D 3 years ❑ 8 years ❑ 4 years ❑ 9 years ❑ 5 years- D 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: to and title of d member) Telphone number Date signed (month, day, year) Attested by: A 1 Designated _ � n • 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 1C 6-1.1-12.1-4,5 Form SB-11PP, page 2 - Copyright © 2006 DIS, Inc. ClientlLoc Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: The information requested on this supplement to form S13-1 must be completed and submitted along with your SB-1 in order for your tali 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 S �, t7 o 2. Average hourly wage for projected new positions $ 1 4 ,60 3. Average hourly health insurance benefit $� 2 , � R 1. The length of the abatement you are requesting p Yea f s (A 1-10 year abatement mats be requested for real estate improvements and nranzrfactttring equipment) 2. If purchasing equipment, please attach a list that includes the following: • brief description of each piece of equipment being purchased • the projected usefiil 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 emplo�•ees: 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 emplo)-ees: B. management, supervisors, foremen, or any other supen-ison- personnel; C. owners. stockholders, or partners if tlue�' 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. U V S-� 5 --o (Authorized Signature and Title) (Date) ATTACHMENT TO FORM S13-1, page 1, Section 2 Name of taxpayer RECYCLING CENTER, INC. Description of real property improvements and 1 or new manufacturng equipment and ! or research and development equipment PLASTICS PULVERIZER $195,000 LOADING CONVEYER $65,000 DUST COLLECTOR $97,500 PLATFORM SCALE $32,500 HRB BALER $585,000 ALLOY ANALYZER $78,000 (2) RADIATION DETECTORS AT SCALES $195,000 TRUCK SCALE AT NEW FACILITY $84,500 (2) 8,000 LB. LIFT TRUCKS $124,800 (2) 5,000 LB. FORKLIFTS $130,000 (3) BOBCAT LOADERS $136,500 (5) ROLL OFFS $835,250 (1) WHEEL LOADER $520,000 (1) HYDRAULIC CRANE ON RUBBER $780,000 RAILROAD SCALE INCLUDING INSTALLATION $650,000 RAILROAD MULE TO MOVE CAMS TO BE WEIGHED $234,000 TOTAL ADDITIONS $4,743,050 k� Rrckas,5 -�ar e(mA 6& W--- 06-w j��7SJrw\26�� Attachment to Form SB-1, page 1, Section 2 - Copyright m 2005 DIS, Inc. ClientlLoc