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Home My Public Portal About103-2004 - Tax Abatememt - Masterbrad Cabinets - Equipment.pdf.AMENDED ORDINANCE NO. 103-2004 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 - 9 YEARS Masterbrand Cabinets, Inc. New Jobs: 80 Jobs Retained: 414 Estimated New Value: $996,808.00 Dated: November 5, 2004 Passed and adopted this -�16 day of 2004 by the Common Council of the City of Richmond, Indiana. sident P ker) ATTES Clerk (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana., thisv / day of 2004 at 9:00 a.m. ity Clerk (Karen Chasteen) AP RO D by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this'2..1- day of 2004 at 9:05 a.m. ayor Sarah L. Hutton ATTES Aity Clerk (Karen Chasteen) SIA I tMENT Vf- LItNtz—Fi l S " State Form 27167 (R614-00) Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989 +eta INSTRUCTIONS: FORM SB-1 1. This statement must be submitted to the body designating the economic revidlfzatfon 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. Approve.I 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 ERA / PPR & DE, must be filed with the county auditor. With respect to real property, Form 322 ERA must be filed by the later of., (1) May f 0; or (2) thirty (30) days after a notice of Increase in real property assessment is received from the township assessor. Form 322 ERA / PPME and /or322 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 filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 and June 14 of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF - 1 annually to show compliance with the Statement of Benefits. (IC6-1.1-12.1-5.6) 5. The schedules established under IC 6-1.1-12.1-4(d) and IC 6-1.1-12.1-4.6 (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. • •- • Narge of taxpayer 0A610 r t-) !; , Address of taxpgyer_(street and number city, sta{te an ZIP code)' l o to L 10 oA D4b of mA 14-)3714 Name of contact person +- Ai L(f> V\0,h (JA-r.! 614(yiN��IZ-t2104 MAP4AGeP-, Telephone number (765) $3-"9 Name of designating body cj:) Resolution number 1 C.� 1Mb vY A'V 1q C.L Location of property ( County t �=IESTIMATED Description of real property improvements and I or new manufacturing equipment and I or research and development equipment (use additional sheets if necessary) Start Date Completion Date Real Estate New Mfg Equipment pry RIDE Current number Salaries Number retained Salaries Number additional Salaries ' 1 � A//Y �Y rr,rs q --- • r o r o ^• • r ••• NOTE: Pursuant to IG $-1.1-12.1-5.1 (d) (2) the Real Estate Improvements Machinery Research and Development Equipment COST of the property Is confidential. Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values Plus estimated values of proposed project a �` Less values of any property being replaced Net estimated values upon completion of protect d $ as Estimateed slid waste converted (pounds) Estimated hazardous waste converted (pounds) Other ban ts: S€�7 17 � � ld :S �AEZT e o I hereby certify that the representations in this statement are true. Signature of authorized representative Title Date signed (month, day, year) ! xkn �1 M AMA � .,+,. .Y.: :r .4 �l-.,.. .�s :: ,¢,*. ,.Y'xt r i°.a.M ,rr.;. ��Lyi -i ��. wi i �•�`�-.f' ;�-r,•.:�Sd v �?�_�+r a,J 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 ❑ N o 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 the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have deter a e o ' of benefits is sufficient to justify the deduction described above. Approved: (sfgna a an le authorized member) Telephone number Date signed (month, day, year) Atte a y: 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 Form SB-lA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: 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. ff 1. Average hourly wage for existing employees $__.. t Q 2. Average hourly wage for projected new positions $ 1 U0 2- 3. Average hourly health insurance benefit $_ 5,20 1. The length of the abatement you are requesting () .O 5 (A 1-10 year abatement may be requested for real estate improvements and manufacturing eq ipment.) 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 malting 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 DEI+'INITIONS 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 fancily members. Please present in the form of an hourly rate computed using the annual cost per eligible employee divided by 2080 hours. and Title) (Dal MasterBrand C a b i n e t s, i n c. Equipment - Tax Abatement Richmond, Indiana Machinery Completion Cost Descri tp ian agnefit Start Date Date Replace older equipment and process improvement. System designed to allow additional space for new product and equipment Shipping System expansion. $396,200 January-05 March-05 Improve data input accuracy, efficiency and Scanner System provide real time data. $86,000 November-04 January-05 Improve the Defect Material process by providing accurate, real time and visibility for defective material. Be able to identify and address quality DMR System issues. $34,200 December-04 January-05 Process and quality improvement by removing sanding contaminants from product prior to Paint Room Duster painting. $41,500 January-05 January-05 Lift Truck Replace older equipment $22,551 February-05 February-05 Lift Table Safety $3,679 February-05 February-05 Replace older equipment and process IMA Edgebander improvement. $144,500 January-05 January-05 Replace older equipment and improve safety Stop -Saw conditions. $5,098 February-05 February-05 DTI Screw Machine Process and safety improvement. $65,000 December-04 January-05 Equipment to introduce new colors and product to Paint Finish Equipment Richmond plant. $46,700 January-05 February-05 Improve current process and increase needed Cut -on -Line Wall Tops/Bottoms capacity $46,530 January-05 February-05 Install efficient lighting and removal of hazardous PCB Lighting Replacement PCB material $89,850 November-04 November-04 Upgrading Engineering Computer Systems - New AutoCAD Upgrades technology and productivity improvements $15,000 November-04 December-04 Total Investment $996,808 Page t