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HomeMy Public PortalAbout016-2006 - Tax Abatement - Opti Disc SolutionORDINANCE NO. 16-2006 A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-121 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. S. 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 Optical Disc Solutions, Inc. (previously Sanyo Laser Products Inc.) Jobs Retained: 109 Jobs Created: 1 Estimated New Value: $350,000 Dated: February 14, 2006 Passed and adopted this 6 day of L 06, by the Common Council of the City of Richmond, Indiana. 'f4' , President (Karl Sharp) ATTEST: City Clerk (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this / day of 2006, at 9:00 a.m. City Clerk (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this (,v day of 2006, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTES �1 Gr—,v _ is Clerk (Karen Chasteen) STATEMENT OF BENEFITS s{ PERSONAL PROPERTY State Form 51764 (5-04) a+e Prescribed by the Department of Local Government Finance INSTRUCTIONS: FORM SB -IIPP 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 andilor research and development equipment, and/oriogfstical distribution equipment and/or Information technology equipment for which the person wishes to claim a deduction. 'Projects" planned or committed to after July 1, 1967 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 equipmenBEFORE a deduction may be approved 3. To obtain a deduction, Form 322 ERAIPPME and/or Form 322 ERA/PP Other, must be filed with the county auditor. Form 322 ERAIPPME and/or Form 322 ERAIPP Other must be flied 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 becomes assessable, unless a tiling extension has been obtained. A person who obtains a tiling extension must rile the form between March 1 and the extended due date of that year. 4. Property owners whose Statement ofBenefrts was approved after June 30, 1991 must submit Form CF-I 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(d) and IC 6-1.1-12.1-4.5(e) effective July 1, 2000 apply to any statement of benefits fried on or after July 1, 2000, The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000. SECTION11 •- • Name of taxpayer OPTICAL DISC SOLUTIONS, INC. (previously SANYO LASER PRODUCTS INC.) Address of taxpayer (street and number, city, state, ZIP code) 1767 SHERIDAN STREET RICHMOND IN 47374 Name of contact person Telephone number FRED AUSTERMAN 1765-935-7574 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA 10-1984,11-1991 Location of property County Taxing district 1767 SHERIDAN STREET RICHMOND IN 47374 IWAYNE 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 ifnecessary) Start Date Completion Date Manufacturing Equipment 02/17/2006 03/15/2006 HANKY OFFSET PRINTING MACHINE AND HANDY CTF R & D Equipment SYSTEM Logist Dist Equipment' IT Equipment " SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED Current number Salaries Number retained Salaries PROJECT Number additional Salaries 109 3,383,000 109 3,383,000 50,000 ESTIMATEDSECTION 4 TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the Manufacturing R g D Equipment Logist Dist Equipment * IT Equipment COST of the property is confidential. Equipment AssessedAssessed Cost Value Cost Value Assessed ssesse Cost Value Cost Value Current values 7,669,716 1,748,345 Plus estimated values of proposed project 350,000 140,000 Less values of any property being replaced Net estimate values upon completion of project 8,019,7161 1, 888, 345 SECTION• - ■ + ■ 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. Sig to a of authorizedf4resentative Title Date signed (month, day, year) * SeelS-6-4a=12.1-2.3. Form SB-11PP, page 1 - Copyright 0 2005 DIS, Inc. ClientrLoc RICHMOND 06PPT 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, pro- vides 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 beffk# 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; E7 Yes Ip 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 ❑ 6 years ** For ERA's established prior to July 1, 2000 onlip ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. E7 3 years ❑ 8 years ❑ 4 years El 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 reason- able and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: (signature and ti of authorized member) Telphone number Date signed (month, day, year) Attested by. Designated body U • 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 or 4.5 Form SB-11PP, page 2 • Copyright02005 DIS, Inc. ClienVLoc Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name and Address: Optical Disc Solutions, Inc. .1767 Sheridan Street Richmond, IN 47374 The information requested on this supplement to form SB-1 must be completed and submitted along with your SE-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 $2 --- 2. Average hourly wage for projected new positions $ 24.04 (New position is salaried) 3. Average hourly health insurance benefit $ 3.71 The length of the abatement you are requesting 10 years (A 1-10 year abatement may be requested for real estate improvements and manufacturing equipment.) If purchasing equipment, please state the projected useful life. 10 year If purchasing equipment, please state whether the equipment is new or used. New If purchasing used equipment, list the state in which it is being N/A brought into Indiana from. 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 fall 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. President and Title) (Date) Form SB-IA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Optical Disc Solutions, Inc. Fred Austerman 1767 Sheridan Street Richmond, IN 47374 The information requested on this supplement to form SB-1 must be completed and submitted along with your SB-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 $....-L2 Lam_ 2. Average hourly wage for projected new positions $ 24.04 (New position is salaried) Average hourly health insurance benefit 1.71 1. The length of the abatement you are requesting ]ta�par� _ (4 1-1Oyear abatement Wray be requested for real estate inzproi�e)yzetzts and tztazaztfactztrirrg egztipment.) 2. If purchasing equipment, please attach a list that includes the following: Hanky Offset Hanky CTF • brief description of each piece of equipment being purchased Printing Machine System • the projected usefitl life of each piece of equipment 10 years 10 years • the state(s) in which the equipment is being brought into Indiana room if purchasing use N/A equipment N/A250,000 100,000 • 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 constriction, rehab, expansion, etc.) • size of the proposed real estate improvements N/A • costs of the proposed real estate improvements DEFINITIONS 1. Average hourly wage for existing employees: for your most recent pas' 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. supen-isors. foremen. or any other sttpervisory 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 stealth insurance benefit: Please pro�'ide 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) MEMORANDUM Department of Metropolitan Development TO: Richmond Common Council FROM: Tony Foster &kl, DATE: February 16, 2006 RE: Tax Abatement Request Attached you will find a tax abatement request from Optical Disc Solutions. The request is eligible because: • It is located in an Economic Revitalization Area per IC 6-1.1-12.1 • The SB-1 was submitted prior to the "installation of the new manufacturing equipment ..." per IC6-1.1-12.1-4.5. • The new manufacturing equipment meets the definition per IC 6-1.1-12.1-1, Section 1. Please do not hesitate to contact me if you have any questions.