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Home My Public Portal About070-2006 - Tax Abatement - Holland Colors - Real Estate.pdf.w.eORDINANCE NO.70 -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 Holland Colours Americas, Inc. Jobs Retained: 87 Jobs Created: 0 Estimated New Value: $850,000 Dated: July 24, 2006 Passed and adopted this a / day of 2006, by the Common Council of the City of Richmond, Indiana. President (Karl Sh ) ATTE -� (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this day of 2006, at 9:00 a.m. irk (Karen Chasteen) APPROVED byMe, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this �- day of , 2006, at 9:05 a.m. Mayor (Sarah L. Hutton) ATTE : (Karen Chasteen) RAT STATEMENT OF BENEFITS U4. REAL ESTATE IMPROVEMENTS State Form 51767 (R 11-06) Prescribed by the Department of Local Government Finance INSTRUCTIONS. FORM SB-1 1 RE 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 ofreal 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. (1C 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, 1991 must submit Form CF-11RE annually to show compliance with the Statement of Benefits. (1C 6-1. 1-12. 1-5. 1(b)) 5. 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• • Name of taxpayer HOLLAND COLOURS AMERICAS, INC. Address of taxpayer (street and number, city, state, ZIP code) 1501 PROGRESS DRIVE RICHMOND IN 47374 Name of contact person Telephone number �765-935-0329 TINEKE VELDHUIS, PRESIDENT SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number COMMON COUNCIL OF THE CITY OF RICHMOND, INC. 10-1984,11--1991 Location of property County IWAYNE DLFG taxing district number 1501 PROGRESS DRIVE RICHMOND IN 47374 89030 Description of real property improvements (use additional sheets ifnecessary) ESTIMATED 8,300 SQ FT BUILDING ADDITION Start Date Completion Date 08/01/2006 12/31/2006 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSEDSECTION -. Current number Salaries Number retained Salaries Number additional Salaries 87 3,400,000 87 34400,000 O O SECTION 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 6, 778, 631 4,014,600 Plus estimated values of proposed project 650,000 850,000 Less values of any property being replaced Net estimate values upon completion of project 7,628,631 4,864,600 SECTION• Estimated solid waste converted (pounds) . AND OTHER BENEFITS PROMISED Estimated hazardous waste converted (pounds) Other benefits: SECTIONTAXPAYER I hereby CERTIFICATION certify that the representations in this statement are true. Signature of authorized representative Title �Si�e�i Date signed (month, day, year) 7 - 2- 4 - 2006 Form SB-1fRE, page I - Copyright ® 20D6 DIS, Inc. ClientlLoc HOLLAND 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: (si re rnd title of h zed member) Telphone number Date signed(month, day, year) Attested by: / of -117 f 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 SB-ilRE, page 2 - Copyright 02006 DIS, Inc. ClienVLcc Form SB-lA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Holland Colours Americas, Inc. 1501 Progress Drive 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 $ 15.92 2. Average hourly wage for projected new positions $ N/A 3. Average hourly health insurance benefit felMIN 1. The length of the abatement you are requesting 10 (4 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 • state if the machinery is being purchased or leased • if the machinery is being leased, provide information from the lease that explains which parry is responsible for paying the property taxes 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 -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. Pre,� I- AiA z q --'-Oo 6 (Authorized Signature and Title) (Date)