HomeMy Public PortalAbout092-2006 - Tax Abatement for Integrated Mfg Solutions.pdf.wORDINANCE NO.92 -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-1.
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:
MANUFACTURING EQUIPMENT -- S YEARS
INTEGRATED MANUFACTURER SOLUTIONS
Jobs Retained: 6
Jobs Created: 4
Estimated New Value: $200,000.00
Dated: November 2, 2006
Passed and adopted this � day of 2006, by the Common
Council of the City of Richmond, Indiana.
"I/ .
7'�L (111 - , President
(Karl S )
ATTEST-,,,- Jerk
(Karen Chasteen)
RESENTED to the Mayor of the City of Richmond, Indiana, this a2 / day of
2006, at 9:00 a.m.
C't lork
(Karen Chasteen)
APPROVED y me, 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)
STATEMENT OF BENEFITS
a PERSONAL PROPERTY
a� �a State Form 51764 (R 11-06)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS:
0 t TO
FORM SB-1 I 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 c 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 tiled between March i and May 15 of the
assessment year in which new manufacturing equipment and/or research and development equipment andlor 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-1 / PP annually to show compliance with the
Statement of Benefits. (IC 6-1.1-12.1-5.6)
5. The schedules established under IC 6-1.1-12.1-4.5(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. (/C 6-1.1-12.1-4.5(o and (g))
SECTION•• •
Name of taxpayer
INTEGRATED MANUFACTURER SOLUTIONS
Address of taxpayer (number and street, city, state, and ZIP code)
P.O. BOX 427, RICHMOND, IN 47374
Name of contact person
Telephone number
JEFFREY D. BAKER
(766) 962-0469
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
COMMON COUNCIL OF THE CITY OF RICHMOND, IN
10-1984, 11-1991
Location of property
County
DLGF taxing district number
1747 SOUTH 5TH STREET, RICHMOND, IN
WAYNE
RICHMOND CORP
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment.
(use additional sheets if necessary)
START DATE
COMPLETION DATE
Manufacturing Equipment
11/03/2006
07/31/2007
ADDITION OF POWER COAT PAINT LINE WHICH
R & D Equipment
INCLUDES EQUIPMENT, TOOLS, FIXTURES AND
Logist Dist Equipment
BUILDING MODIFICATIONS TO ACCOMODATE THE
EQUIPMENT LINE
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
6 170,056.00 1 6 1 170,056.00 4 1 75,000.00 11
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
EQUIPMENT
R & D EQUIPMENT
LOGIST DIST IT EQUIPMENT
EQUIPMENT
COST
ASSESSED
VALUE
COST
ASSESSED
VALUE
COST
ASSESSED COST
VALUE
ASSESSED
VALUE
COST of the property is confidential.
Current values
94.737.00
49,840.00
Plus estimated values of proposed project
200,000.00
80,000.00
Less values of any property being replaced
Net estimated values upon completion of project 1294,737.00
tzs,a4o.00
SECTION• OTHER BENEFITS PROMISED BYTHE TAXPAYER
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
SECTION•
I hereby certify that the representations in this statement are true.
ri rep sent a
Title
Date signed (month, day, year)
IMP
emu-`
-Z-ob
MIN
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; ❑ Ye s ❑ N o
2. installation of new research and development equipment; ❑Yes ❑ N o
3. Installation of new logistical distribution equipment. Dyes [-]No
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)
K The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment and/or
new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000. is allowed for:
Ell year ❑6 years " For ERA's established prior to July 1, 2000, only a
❑2 years ❑7 years 5 or 10 year schedule may be deducted.
❑3 years ❑8 years
❑4 years ❑ S 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 th,pt the totality of benefits is sufficient to justify the deduction described above.
and
number
Designated
Date signed (month, day,
* 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 6-1.1-12.1-4.5
Form SB-1A'
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
INTEGRATED MANUFACTURER SOLUTIONS.
P'. 0 . BOX 427
RICHMOND, IN 47.375
CONTACT; JEFFREY BAKER
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,
13 -00
1. Average hourly wage for existing employees
S
9.00
2. Average hourly wage for projected new positions
$_ _..._--
3. Average hourly, health insurance benefit
10
1, The length of the abatement you are requesting ui mens.)
(A 1-10 year, abatement may be requested for real estate improvements and manufacturing eg p
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
• -thkeost 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 takes
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 iprovements
costs of the proposed real estate improvements
DEFINTT40NS d lease provide the
1. Average hourly wage for existing employees: for your most recent pac peiiop not.inc the
average base wage per hour for all current full tune, non -supervisory nW Y .
following groups:
A. part time employees:
B. -massagement. supervisors. foremen, or any other supervisory personnel;.
C. owners, stockholders, or partners if they own 2% or more of the business, And thew
familymembers. .
ons: Use the sa
2. • Average hourly wage for projected new positime definition of employees to be included
as its number one above.
3. Average hourly health insurassce benefit: Please provide the current company paid health insurance
benefits provided to hourly loyees (as defined above) and family members. Please Present' the
form of an hourly rate co ut using the annual cost per eligible employee divided by 2080 hours.
0 ' Signature mad Title} (Date)
INTEGRATED MANUFACTURER SOLUTIONS
P.O. BOX 427
1747 SOUTH 5' STREET
RICHMOND, IN 47374
CONTACT: JEFFREY BAKER
MANUFACTURING EQUIPMENT LINE EXPANSION:
POWER COAT PAINT EQUIPMENT LINE
WHICH INCLUDES THE FOLLOWING EQUIPMENT PURCHASED AS A
COMPLETED LINE OR INDIVIDUALLY
PRE-TREATMENT PARTS WASHER
EVAPORATOR
DRYING OVEN
CURING OVEN
POWDER BOOTH
OVERHEAD CONVEYANCE SYSTEM
BURN -OFF OVEN
POWDER RECLAIM SYSTEM
INCLUDING FOUNDATIONS FOR MANUFACTURING EQUIPMENT AND
POWER WIRING FOR EQUIPMENT
PROJECT USEFUL LIFE: 20 YEARS
COST OF PROJECT: $ 200,000.00
PURCHASE OF EQUIPMENT: VARIOUS VENDORS FROM UNITED STATES