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.