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HomeMy Public PortalAbout093-2004 - Tax Abatement - Wayne Dairy - Equipment.pdf.w.exh.pdORDINANCE NO.93-2004 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. NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond, Indiana, that the following property owner meets the requirements for property tax assessed valuation deductions, including the above findings, as follows: EQUIPMENT - 10 YEARS Wayne Dairy Products New Jobs: 2 Jobs Retained: 106 Estimated New Value: $6,685,000.00 Dated: October 11, 2004 Passed and adopted this /S day of 004 by the Corrunon Council of the City of Richmond, Indiana. ATTES - ity Clerk (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this /(2 day of , 2004 at 9:00 a.m. t J r r�-� / ,,City Clerk (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this /6 day of 2004 at 9:05 a.m. Z'Yor Sarah L. Hutton ATTES ity Clerk (Karen Chasteen) STATEMENT OF BENEFITS State Farm 27167 (RO / 4-00) ` Form SS - i is prescdbed by the State Board of Tax commissloners, 1989 INSTRUCTIONS: FORM OWCEM ISS-1 1. This statement must be submitted to the body designating the economic revitilizatlon area prior to the Public hearing If the designating body requires infor- mation 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 and / or research and development equipment, or BEFORE the redevelopment or rehabilitation of real property 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 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to Initiation of the redevelopment or rehabilitation, or prior to installation of the new manufacturing equipment and / or research and development equipment, BEFORE a deduction may be approved. 3. To obtain a deduction, Form 322 ERA, Real Estate Improvements and /or Form 322 ERA / PPME and/ or 322.1"RA / PPR & DE, must be tiled with the county auditor. With respect to real property, Form 322 ERA must be filed by the later of (1) May 10, or (2) thirty (30) days after notice of Increase in real property assessment is received from the township assessor. Form 322 ERA/ PPME and /or 322 ERA PPR & DE must be filed between March 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment becomes assessable, unless a fling extension has been obtained. A person who obtains a filing extension must file the form between March f and June 14 of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF - f 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 filed 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, •NI --TAX PAYER INFORMATION Name of taxpayer Wayne Dairy Products Address of taxpayer (street and number, city, state and ZIP code) 1590 NW 11th St. PO Box 250 Richmond, In 47375 Name of contact erson lephone number Jeffrey Kerschner T(765 ) 973-7123 SECTION 2 10CATION AND DESCRIPTION -OFIPROPOSED PROJECT: Name of designating body Resolution number Wa ne Dairy Products 10-1984/ 11--1991 Location of property County Taxing district Richmond, In Wayne Richmond Corp. Description of real property improvements and 1 or new manufacturing equipment and 1 or. ESTIMATED Start Dale Completion Date research and development a uipment (ysT. additional sheets If necessary). New equipment — H"alf gal on extended life milk filler, Real Estate Jan. 2005 June 2005 bottle sanitizing equipment for the plastic bottle filler, and downstream conveyors and packaging equipment for these lines. Real Property — Building addition for empty bottling New Mfg Equipment Jan , 2005 June 2005 handling and clean zoom filling. walls and ceiling. R&DE . PROJ Current number Salaries Number retained Salaries Number additional Salaries 106 3,808,710 106 3,808,710 2 60,000 'SECTION• , . • -••• •-. NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the Real Estate improvements r Machinery _ esearch and Development Equipment COSH of the property as confidential. Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values 2,681,389 965,600 16,158,015 4,006,260 Pius estimated values of proposed project 1,660,833 540,168 6,685,000 1,735,598 Less values of any property being replaced Net estimated values upon completion of project 4,181, 38 9 1, 505,764 23 ,158',015 5,741,858 SECTION• .. . OTHERBENEFiTs PROMISED.BY7HETAXPAYER Estimated solid waste converted (pounds) 0 Estimated hazardous waste converted (pounds) 0 Other benefits: • + •+ + • I hereby certibf that the representations in this statement are true. Sig ore of authorized repr sentativs itle TLtsivki Date signed (month, day, year) MM f il`0� 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 below). The date this designation expires is B . The type of deduction that is allowed in the designated area is limited to: 1 . Redevelopment or rehabilitation of real estate improvements; ❑ Yes ❑ N o 2. Installation of new manufacturing equipment; ❑ Yes ❑ N o 3. Installation of new research and development equipment; ❑ Yes ❑ No 4. Residentially distressed areas ❑ Yes []No C .The amount of deduction applicable for redevelopment or rehabilitation is limited to $ cost with an assessed value of $ D .The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of $ E. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of $ F. Other limitations or conditions (specify) Also we have reviewed th tained in the statement of benefits and find that the estimates and expectations are reason- able and have determin at the totality o efits is sufficient to justify the deduction described above. Approved: (signature d t' of a rized member) Telephone number Date signed (month, day, year) 06s-) gk'3- a Atte ed Designated body If the designating body limits the time period during which an area is an economic revitilization 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 d Form SB-lA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address.& Contact Person: Vayne Dairy Products, Inc. 1590 N.W. 11th Street Richmond, IN 47374 Contact: Jeffrey Kerschner 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 $ 14.56 2. Average hourly wage for projected new positions $ '14.5 6 3. Average hourly health insurance benefit $ 5.10 1. The length of the abatement you are requesting 10 (A 1-10 year abatement may 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 DEFEWIONS - 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 Me 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. !0lit f0 Lf and Title) . (Date) Form SB-IA attachment 2.) If purchasing equipment, please attach a list that includes the following: • Brief description of each piece of equipment. ■ Half gallon Filler — Half gallon paper filler with a pour spout applicator. ■ Conveyors for half gallon filler — The conveyors moving the product from the filler to the palletizer. ■ Caser for half gallon filler - Caser which packs the half gallon milk. ■ Raw milk silo — Raw milk will be placed into the refrigerated silo. This will accommodate the additional milk required for the half gallon filler. ■ Raw cream silo — Cream separated for the additional milk required for the half gallon filler will be place into this cream tank. ■ Bottle sanitizing PET bottle filler - Reworking bottle sanitizing for the PET bottle filler will increase the life of the operation for the next 10 years. ■ Conveyor for PET bottle filler — The conveyor moving the PET bottles to the filler. ■ Labeler for PET bottle filler — The labeler which applies the label to the PET bottles. ■ Conveyor for the labeler — The conveyor system which moves the bottles from the labeler. ■ Palletizer for PET bottle filler — The automatic box stacker which places the product on shipping pallets. ■ Conveyor for PET bottle filler --- The conveyor system which moves the pallets from the palletizer for shipment. • The projected useful life of each piece of equipment — each piece of equipment is being purchased with the expectation of at least a 10 year life. • The states in which used equipment is being transferred — all of the equipment will be new on this project. • The cost of each piece of equipment : ■ Half gallon Filler $1600000 ■ Conveyors for half gallon filler $785000 ■ Caser for half gallon filler $361000 ■ Raw milk silo $210000 ■ Raw cream silo $180000 • Bottle sanitizing PET bottle filler $1401000 ■ Conveyor for PET bottle filler $312000 ■ Labeler for PET bottle filler $712000 ■ Conveyor for Labeler $340000 ■ Palletizer for PET bottle filler $460000 ■ Conveyor for PET bottle filler $324000 3.) If malting real estate improvements, please provide a list that includes the following: • Brief description — New construction will comprise of an addition to provide empty bottle handling. This will be constructed to the East of the present manufacturing building. Rehab of the present filling room will comprise of new ceilings, walls, and hepa air handling units providing a class 10000 clean filling room. A new concrete pad will be installed to allow a 50000 gallon silo to rest in position on the North side of the building. • The new addition will be approximately 2300 square feet and the clean filling room will comprise 8500 square feet. • The cost associated with the real estate improvements will be approximately 1,660,833 dollars.