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Home My Public Portal About084-2006 - Tax Abatement - Ahaus - Equipment.pdf.w.exhORDINANCE NO.84 -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 installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-1. NOW, THEREFORE, the Common Council of the City of Richmond, Indiana, now mares 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 installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-I. 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 - 5 YEARS Ahaus Tool & Engineering, Inc. Jobs Retained: 102 Jobs Created: 0 Estimated New Value: $120,000 Dated: September 21, 2006 Passed and adopted this & day of 2006, by the Common Council of the City of Richmond, Indiana. President (Karl Sharp) ATTEST,4,-/ , (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this —0—/ day of , 2006, at 9:00 a.m. Clerk (Karen Chasteen) APF�tOVED me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of , 2006, at 9:05 a.m. r IL, Mayor (Sarah L. Hutton) ATTEST. (Karen Chasteen) STATEMENT OF BENEFITS ECEW D SEP 2 2 2006 a PERSONAL PROPERTY State Form 51764 (R i 1-46) Prescribed by the Department of Local Government Finance INSTRUCTIONS: FORM SB-1 / PP PRIVACY NOTICE The cost and any specific individual's salary information is confidential; the balance of the filing is public record per IC 6-1.1-12. 1 -5.1 (o) and (d). 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 and/or research and development equipment, and/or logistical distribution equipment and/or information technology equipment 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 installation of the new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment, BEFORE a deduction may be approved 3. To obtain a deduction, a person must file a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 103-ERA) with the township assessor of the township where the property is situated. The 103-ERA must be filed between March 1 and May 15 of the assessment year in which now manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 and the extended due date of that year. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF-I / PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 5. The schedules established under 1C 6-1.1-12.1-4.5(d) and (e) apply to equipment installed after March 1, 2001. For equipment installed prior to March 2, 2001, the schedules and statutes in effect at the time shall continue to apply. (1C 6-1.1-12.1-4.5(o and (g)) SECTION•- • Name of taxpayer Ahaus Tool & Engineering, Inc. Address of taxpayer (number and street, city, state, and ZlPcode) 200 Industrial Parkway, PO Box 280, Richmond, Indiana 47374 Name of contact person Telephone number Donna J. Utz; Controller (765) 962-3571 SECTION• • AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number (s) Common council of the City of Richmond, Indiana 10-1984 11-1991 Location of property County DLGF taxing district number 200 Industrial Parkway, PO Box 280, Richmond, Indiana 47374 Wayne Richmond Corporation Description of manufacturing equipment andlor research and development equipment ESTIMATED START DATE COMPLETION DATE and/or logistical distribution equipment and/or information technology equipment. (use additional sheets if necessary) Manufacturing Equipment 11/01/2006 11/15/2006 Vertical Machining Center R & D Equipment Logist Dist Equipment IT Equipment SECTIONOF r . SALARIES AS RESULT OF -•^• . PROJECT Current number Salaries Number retained Salaries Number additional Salaries 102 5,393,000.00 102 5,393,000.00 0 0.00 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values 3,780,000.00 Plus estimated values of proposed project 120.ono.00 Less values of any property being replaced 0.00 Net estimated values upon completion of project 3,900,000.00 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) 0.00 Estimated hazardous waste converted (pounds) 0.00 Other benefits: Please note our current employees are up approx 7% over last year, and this machine will enable us to increase productivity in order to stay competitive in the world market. SECTION• I hereby certify that the representations in this statement are true. Signature a thorized repres ve Title Date signed (month, day, year) Controller 09/21 /2006 t'/ v 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, provides 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. Installation of new manufacturing equipment; ❑Yes ❑ N o 2. Installation of new research and development equipment; ❑Ye s ❑ N o 3. Installation of new logistical distribution equipment. [--]Yes ❑N o 4. Installation of new information technology equipment; ❑Yes ❑ N o 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 andlor new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for: ❑ 1 year El years * For ERAS established prior to July 1, 2000, gUl a ❑2 years ❑7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 8 years 04 years ❑ 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 reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: (sign nd tide of a member) Telephone number Date signed (month, day, year) * 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 lC 6-1.1-12.1.4.5 Form SB-1A 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. 1. Average hourly wage for existing employees $ 18.16 2. Average hourly wage for projected new positions $ 16.50 3. Average hourly health insurance benefit $ 3.70 1. The length of the abatement you are requesting 5 years (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 • state if the machinery is being purchased or leased • if the machinery is being leased, provide information from the lease that explains which party 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. &4_4f�_ Q"�' , DonnaJ. Utz; Controller 09/21/2006 (Authorized SignatuWand Tit (Date) T0'0I. A 1 0 E 1 9 1 1 E E I I 1 0 1 11E September 21, 2006 Mr. Tony Foster City of Richmond Department of Metropolitan Development 50 North Fifth Street Richmond, Indiana 47374 Dear Tony: Attached is our application for a tax abatement on new equipment to help us increase our capabilities and sales. ❖ Vertical Machining Center ➢ Projected Useful Life — 5 Years ➢ It will be coming from the state of Indiana ➢ Estimated cost: $120,000 Please feel free to contact me if you should have any questions. Thank you again for your help in this matter. Sincerely, Donna J. Utz Controller enc. 200 Industrial Parkway, P.O. Box 280, Richmond, Indiana 47375-0280 765.962.3571, Fax 765.962.3426,1.800.962.3571 sales(a)ahaus.com, www.ahaus.com Page I of 2 Tony Foster From: Donna J Utz [DonnaU@ahaus.com] Sent: Wednesday, September 27, 2006 5:12 PM To: Tony Foster Subject: Re: New Abatement Tony The check will go out in the mail tomorrow. I do not know the details of the purchase yet, because they are not yet set. I think we will lease it and the leasee will pay the taxes and bill us. But Kevin is not sure yet. As soon as I know I will give you a call. Thanks again!!! Best Regards, Donna J. Utz Controller Ahaus Tool & Engineering, Inc. 200 Industrial Pkwy. Po Box 280 Richmond, Indiana 47375-0280 Ph: 765-962-3571 Fx: 765-962-3426 DonnaU@ahaus.com "Tony Foster" <tfoster@ci.richmond.in.us> "Tony Foster" To"Donna J Utz". <DonnaU@ahaus.com> <tfoster@ci.richmond.in.us> cc SubjectNew Abatement 09/25/2006 12:00 PM Donna: Thanks for submitting a new tax abatement application. I will forward it to the Law Dept. for an ordinance and it will then go to Council. There is a $100 filing fee for abatements. If possible, could you forward that to my attention when possible. Also, please let me know if this is a purchase or lease. If it is a lease, please let me know who pays the property taxes. Thanks in advance and have a good daylll Tony Foster II City of Richmond 50 North 5th Street 10/5/2006