HomeMy Public PortalAbout062-2006 - Tax Abatement - Recycling Center - Real Estate.pdf.wORDINANCE NO.62 -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 the improvements to the real estate described in the SB-1 must be
completed within 24 months of the date the ordinance is signed by the
designating body.
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 the improvements to the real estate described in the SB-1 must
be completed within 24 months of the date the ordinance is signed by
the designating body.
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:
REAL ESTATE - 10 YEARS
Recycling Center, Inc.
Jobs Retained: 82
Jobs Created: 11
Estimated New Value: $300,000
Dated: June 26, 2006
Passed and adopted this day of 2006, by the Common
Council of the City of Richmond, Indiana.
President
(Karl Sharp)
ATTEST,;
(Karen Chasteen)
PrNTED to the Mayor of the City of Richmond, Indiana, this I ::I-- day of
2006, at 9:00 a.m.
41
ity Clerk
(Karen Chasteen)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
day of , 2006, at 9:05 a.m. 444'
Mayor
(Sarah L. Hutton)
ATTES-& o lio ler
{Karen Chasteen)
STATEMENT OF BENEFITS
' REAL ESTATE IMPROVEMENTS
State Form 51767 (R 1 1-06)
ter•
Prescribed by the Department of Local Government Finance
INSTRUCTIONS;
FORM SB-7 1 RB
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 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,
BEFORE a deduction maybe approved.
3. To obtain a deduction, Form 322 ERA, Application for Deduction from Assessed Valuation of Structures in Economic Revitalization Areas, must be filed
with the county auditor by the later of., (1) May 10; or (2) thirty (30) days after the notice of addition to assessed valuation or new assessment is mailed to
the property owner at the address shown on the records of the township assessor.
4. Property owners whose Statement of Benefits was approved after June 30, f 991 must submit Form CF-11RE annually to show compliance with the
Statement of Benefits. (IC 6-1. f-12.1-5.1(b))
S. The schedules established under IC 6-1.1-12.1-4(d) 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.
SECTION 1 TAXPAYER INFORMATION
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 number
DEBRA EDELMAN
(765)966-8295
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
❑LFG taxing district number
630 SOUTH M STREET RICHMOND IN 47374
WAYNE
RICHMOND CORP.
Description of real property improvements (use additional sheets if necessary)
ESTIMATED
Start Date
Completion Date
NON FERROUS BLDG FOR PROCESSING $300, 000
F05115/20136
05/15/2007
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RES ULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
,320
82 3,614,490 82 3,614,490 11 320SECTION
4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE. Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the REAL ESTATE IMPROVEMENTS
COST of the property is confidential.
COST ASSESSED VALUE
Current values
2,231,433
669, 430
Pius estimated values of proposed project
300,000
90,000
Less values of any property being replaced
Net estimate values upon completion of project 2,531,433 759,430
SECTIONS WASTE CONVERTED AND•THER BENEFITS PROMISED B
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
SECTION
I hereby cerUfy that the representations in this statement are true.
Signature of authorized resentnta-tiveTitle
eSt.Q2e4SIC- y 1�u 44
Date signed (month, day, year)
6 •a1---wok
a Cn, n1'QI
Prep4re8 • 44Y4" 14* q,r. CP,dq &-2_G-0t*
Form S9-1rRE, page 1-Copyright®2006 CIS, Inc. ClientlLoc RECYCLING 06RE
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 ❑ No
2. 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. Other limitations or conditions (specify)
E. The deduction for redevelopment or rehabilitation is allowed for years* (see below).
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. (IC 6-1.1-12-3(b))
Approved: (signature d* of authoriz bar) Telphone number Date sig ed (month, day, year)
�3-7�3;� I f '�/ A�
Attested by: _ Designated body,
* 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.
For residentially distressed areas, the deduction period may not exceed five (5) years. If the Economic Revitalization Area was
designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years. For ERAs after June 30, 2000,
the deduction period may not exceed ten (10) years. An area designated as an urban development area pursuant to an application filed
after December 31, 1978, and prior to January 1, 1986, are entitled to a ten (10) year deduction.
Form SBA IRE, page 2 - Copyright @ 2006 DIS, Inc. Clientlt_oc
Form SB-lA
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 S13-1 in order for your tax abatement request to be considered by Richmond
Common Council. Please retain N•Mr 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
2. Average hourly wage for projected new positions S 1 L ,60 -
3. Average hourly health insurance benefit
1. The length of the abatement you are requesting
I D Yea-,rs
(4 1-10 year abatement mm be requested for real estate improvements and njangfacturing equipment)
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
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
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 full time, non-supervison- employees. Do not include the
following groups:
A. part time employees;
B. management. supers isors, foremen, or any other supervisor 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.
(Authorized Signature and Title) t ` (Date)