HomeMy Public PortalAbout059-2005 - Tax Abatement - GOLD STAR - Amended - Chase Lea.pdf.AMENDED ORDINANCE NO.59-2005
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 Common Council as the designating entity to approve
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.
WHEREAS, When Common Council of the City of Richmond, Indiana, passed Ordinance 59-
2005, on October 3, 2005, the property owner was mistakenly listed as Gold Star
Coatings, Richmond, Indiana; and
WHEREAS, Gold Star Coatings was the owner of record on October 3, 2005 of the real estate
where Gold Star Coating does its business but Gold Star Coatings leases, but
does not own, the equipment that is the basis for awarding the tax abatement to
the owner of the equipment; and
WHEREAS, Chase Equipment Leasing, Inc. is the owner of the equipment seeking to receive
the tax abatement and Chase Equipment Leasing, Inc. leases the equipment to
Gold Star Coatings, Inc. and
WHEREAS, All other information submitted to Common Council on October 3, 2005, was
accurate and Common Council still wishes to approve the Statement of Benefits
filed by personal property owner Chase Equipment Leasing, Inc., when it applies
for deductions in assessed valuations for the installation of new manufacturing
equipment.
NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond,
Indiana, that Common Council does hereby amend Ordinance 59-2005 so that the following
property owner meets the requirements for property tax assessed valuation deductions, including
the above findings, as follows:
EQUIPMENT - 6 YEARS
Owner of Equipment: Chase Equipment Leasing, Inc.
Chase Equipment Leasing, Inc., is leasing the equipment to Gold Star Coating
Owner of Real Estate on October 3, 2005: GOLD STAR COATINGS — RICHMOND, IN
Jobs Retained: 55
Jobs Created: 8
Estimated New Value: $1,500,000
Dated: August 4, 2005
Passed and adopted this l7th day of April 2006 by the Common Council of the City of
Richmond, Indiana.
zx' President
{Karl Sharp)
ATTE - Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this /S�' day of
2006 at 9:00 a.m.
City Clerk
(Karen Chasteen}
ROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this -d- day of
2006 at 9:05 a.m.
AN- For
Sarah L. Hutton
ATTEST- •ty Clerk
(Karen Chasteen)
ORDINANCE NO. 59-2005
A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF
BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C.
6-1.1-1.2.I
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:
I . 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:
EQUIPMENTS 10 YEARS
GOLD STAR COATINGS — RICHMOND, IN
Jobs Retained: 55
Jobs Created: 8
Estimated New Value: $1,500,000
Dated: August 4, 2005
Passed and adopted this 9 day of 2005 by the Common Council of the City
of Richmond, Indiana.
President
(Bruce Wissel)
A
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this ��/ day of X:!f�
2005 at 9:00 a.m.
AF O D by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 4day of
2005 at 9:05 a.m.
i. j
�1"",
STATEMENT OF BENEFITS FORM
1 PERSONAL PROPERTY
5B_1iPP
state Form 61764 (5-04) RHENED 8 9onit
"r Prescribed by the Department of Local Government Finance
iNSTRUCTIONS:
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 f, 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 dishibution equipment and/or information technology equipment. BEFORE a deduction may
be approved
3. To obtain a deduction, Form 322 ERAIPPME and/or Form 322 ERA/PP Other, must be filed with the county auditor. Form 322 ERA/PPME and/or Form 322
ERPJPP Other must be filed between March f and May 15 of the assessment year in which new manufacturing equipment and/or research and development
equipment and/or logistical distribution equipment and/or information technology 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 the extended due date of that year.
4, property owners whose Statement ofBanefits was approved after -June 30, 1991 must submit Form CF-I annually to show compliance with the statement
of Benefits. (1Gti-1.1-12.1-5.6)
5. The schedules established under IC 6.1.1-12.1-4(d) and iC 6-1.1-12.1-4.5(e) effective July f, 2000 apply to any statement of benefits filed on or after
uiv 1 2400 The schedules effective prior to duty 1, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000.
SECTION
INFORMATION
Name of taxpayer
Gold Star Coatings - Richmond Inc.
Address of taxpayer (street and number, city, state. ZIP code)
1580 Progress Drive Richmond IN 47374
Name of contact person
Telephone number
765-935-7424
Brad Ballenger
SECTION 2 LOCATION AND DESCRIPTION
OF PROPOSED PROJECT
Name of designating body
Resolution number
Common Council of the City of Richmond
10-1984; 11-199
Location of property
County
Taxing district
1580 Progress Drive, Richmond, IN 97374
Wayne
Description of manufacturing equipment and/or research and development equipment ESTIMATED
and/or logistical distribution equipment and/or information technology equipment
Start Date Completion Date
(use additional sheets if necessary)
Manufacturing Equipment 09/01/2005 12/31/2005
Cemi-Con High Performance coating unit to
coat
tools
R & D Equipment
CC 800/9XL Coating Unit
Logist Dist Equipment'
IT Equipment'
Current number Salaries Number retained
Salaries Number additional Salaries
55 1,617,538 55
1,617,538 8 320,000
NOTE: Pursuant to 1C t3-t.7-12.1-5.1 (d) (2) the Manufacturing
Equipment
R & D Equipment Logist Dist Equipment ` IT Equipment "
COST of the property is confidential.
Assessed
Cost
Cost AssessedCost Assessedsessed
Value COst Value
Value
Value
Current values 5, 964, 000
Plus estimated values of proposed project i, 500, 000
Less values of any property being replaced
Net estimate values upon completion of project 7,464,000
rEstimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
nefits:
•
f hereby certify that the representations in this statement are true.
7777!
Signature of authorized representative
Title Date signed {month, day, year)
* See lC 6-1.1-12.1-2.3.
ClienrlLoe 1235
Wehave 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 _
designation expires is
B. The type of deduction that is allowed in the designated area is limited to:
calendar years ` (see below). The date this
1. Installation of new manufacturing equipment;
❑ Yes
❑ No
2. Installation of new research and development equipment;
❑ Yes
❑ No
3. Installation of new logistical distribution equipment.
❑ Yes
❑ No
4. Installation of new information technology equipment;
❑ Yes
❑ No
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 $
assessed value of $
G. Other limitations or conditions(specify)
cost with an
H. 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 after July 1, 2000 is allowed
for:
❑ 1 year
❑ 6 years " For ERA's established prior to July 1, 2000 only a
5 or 10 year schedule may be deducted.
❑ 2 years
❑ 7 years
❑ 3 years
❑ 8 years
❑ 4 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 reason-
able and have determined that the totality of benefits is sufficient to justify the deduction described above.
Approved: gnature and title of authorized member) Telphone number Date signed {month, day, year)
Aeted / Designated body w
l /I '1�
" 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 6-1.1-12.1A or 4.5
CllenULoC
Form S8-11PP,,page 2 - Copyright 0 2005 aIS, Inc
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name and Address: Gold Star Coatings — Richmond, Inc.
1580 Progress Drive
Richmond, IN 47374
The information requested on this supplement to form SB-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 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
$ 14.00
2. Average hourly wage for projected new positions $ 14.00
3. Average hourly health insurance benefit
$ 2.65
1. The length of the abatement you are requesting Requesting a 10 year abatement
(A 1-10 year abatement maybe 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
Plan to purchase and install a Cemi-Con Coating knit which will be used to coat dies and tools.
Project the equipment will last 30 years.
Equipment being purchased from Germany
Equipment including installation will cost approximately $1,500,000
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_
(Da#e}
(Authorized Signature and Title)
PLEASE NOTE:
The attachment required by question #2 on the SB-lA is not included. The information
required by question 92 is listed directly on the SB-lA (under question 42).
Thanks,