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HomeMy Public PortalAbout060-2005 - Tax Abatement - Machinery.pdf.w.exhORDINANCE NO. 60-2005 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 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. 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 2 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. 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 - 10 YEARS Innatech, LLC Jobs Retained: 65 Jobs Created: 45 Estimated New Value: $30,000,000 Dated: August 26, 2005 Passed and adopted this day of 2005 by the Common Council of the City of Richmond, Indiana. President (Bruce Wissel) ATT Jerk (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this «7� day of , 2005 at 9:00 a.m. (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 10 day of 2005 at 9:05 a.m. yor Sarah L. Hutton ATTES (Karen Chasteen) STATEMENT OF BENEFITS PERSONAL PROPERTY p FORM stake Form 51704 (544) U — {�) Ss Presrrked by the Department of i ocat Government Finance 09SMUC71ONS: 1. This statement must be submitted to the body designating the economic rev.1alkatfan area prior to the public hearing N Me designating body requires information tram the applicant In mating rig decision about whether to designate an Eopnomic Revitsi)rallon Area. Otherwise this statement must be submitted to the deslgnating body BEFORE a person insfafls fha newmonufaclurfng equipment and6rmseamh anddevelopment aqulpment anderrioglstIcaf dhWibutian equipment andAulaformaVon technology equipment forwhlrJr the person wishes to claim a deduction. Pgocts'ptanned orcommined to aherJufy 1, 1987 and areas designated atferJuly 1, 1987 require a 5TA7EMENTOF BENEFITS (10 6-1.1-12.1) 2 Approval of fie designeffng hotly (City f:ound4 Town 9oan% County Council, eta) mustbe obtained pN(irto insfallatipn of the new manufacturing equipment andlormseamh equipment androrfnformaban technology equipment6EFORl: a deduction may be approved 3 To obtain a deduction, Form 322 ERA/PPME andtorFotm 322 ERA/PP Other, must be riled wrtlr the county audihrr. Farm 322 ERA/APME en&brForm 322 EPA/PP Other must be kited between 1Nafch 1 and May 15 of Ufa assessment yaarIn which new manufactudng equipment and/or research and development aqutpmentandror blilsfical disMbuffon equipment andrbr infomlatton technelogyequltmrent becomes assessable unless a Mng extension has bean obtained. A person who obtains a filing extension must fde the thrm between March 1 and the extended due date of the! year. 4. Property owners whose Statement ofBenefts was approved alterJuna 30, 1991 must submit Farm CF4 annuaity to show compliance with the 5latament ofBanafits. (IC &I.14zl-tie) S. The schedules established under IC e-1.1-12.1-4(d) and 10 8-1.1-1z 1-4.5(e) aftlive July 1, 2000 appty to any Statement ofbeneh7s filed on or aNer July 1, 2000 'Me schedules effective prior to Duty 1, 2000 shot) cmtfnu9 to appy to those statement of benefits !lied before July 1, 2000. SECTION. • Name of taxpayer Innatech, LLC 10 year abatement requested Address of taxpayer (street and number, dry, state, ZIP code) 750 Letica Drive Rochester M1 48307 Name of Canted person Tetephone number Brian P. Mielook (248)601-7912 SECTION 2� LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name ofde*nailng hady Resolution number City of Richmond Common Council Location of property county Taxing district 4200 Industries Road, Richmond IN 47374 Wayne Richmond —Center DescriptIon of manufacturing equipment and/or research and development equipment ES n 0 Wftr Igglsl" distributionegtdpment anci/orl*nnation technology OgUiprnent Start Date Completion Date (use additionsfsheets itnueessary) ManufacturingEquipment 09/01/2005 09/01/2007 See attached 10 year abatement requested R & D Equipment Loglet Olst Equipment' IT Equipment SECTIONOF EMPLOYEES. SALARIES AS RESULT OF a•e . PROJECT Current number Salaries Number retained Salaries Number additional salaries 65 1,709,000 65 1,709,000 95 972,000 •N 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 6 1.7-12.1.5.i (d) (2) the Manufacturing R $O Equipment Logtal Dist Equipment • IT Equipment* Equipment COST of the property Is confidenUal. can ia— VafOe Cost Value led Coat Vef�ue Cost ed Value Curnint values 2,559,0001 ,559,00U 3,122, OOD Plus eagmated values of proposed pre)ect 30, 000, 000 teas values of any property being replaced Net eslmale values upon completion of project 37, 35e, 000 3,122, 000 CONVERTED AND OTHER BENEFITS PROMISED SY THE TAXPAYER Estimated solid waste converted (pounds)._ Estimated harardoua waste converted (pounds) ether benefits: In addition to paying manufacturing wages, we will be providing health insurance coverage to all of our workforce TAXPAYER CERTIFICATION I herein ce 1-that the re resentationl3 in this statement are trite. Signature li Title Date signed (manth, day, year) OFb I $ -26-OS see rc, o=r. r=rc.�-cs. Force SOMPP, page i - Copyright Q MG 018, M Clent4me ii25a 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 1C 6-1.1-12.1 2.5, pro- vides for the following limitations as authorized under IC S4.1-12.1-2. A. The designated area has been limited to a period of time not to examd 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 E3 No 2. Installation of new research and development equipment; 0 Yes p No 3. Installation of now logistical distribution equipment. E] Yes D 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 now logistical distribution equipment is limited to $ cost with an assessed value of $ F. The amount of deduction applicable In new information technology equipment is limited to $ cost with an assessed value of S 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 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 Pr jy a O 2 years p 7 years 5 or 10 year schedule may be deducted. p 3 years o 8 years Ci 4 years C7 9 years 0 6 years " E7 10 years'+ Also we have reviewed the informaton 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. not re and M of a zed mambso Tdphme number Beta signed llmmth, day, y000 aAgestW r3- 3 v - 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 reoeive a deduction to a number of years designated under IC 6-1.1-12.1-4 or 4.5 Form Sa-11PP, pegs 2 - CopytlpMO 20M 01$. 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N . �a E CO to J- E E O m O o jp + o C w tO a.x-- x u o m c a��r v;6 aci CL tG m m-ri S O tlf E E 3 c ma rn -- Q 0 c �m C c i3oaa O VcC "c Fc E t,p1O O'.O _m O _c @ N N ° Em c c cme g m tio a i�m Uv ri En I C3 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name and Address: Innatech, LLC Located at 4200 Industries Road Richmond, IN 47374 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 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 $ 10.00 2. Average hourly wage for projected new positions $ 11.30 3. Average hourly health insurance benefit $ 4.00 1. The length of the abatement you are requesting 10 year abatement requested (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 See attached 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. See attached 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. ........... . (Authorized Signature and Title) In-d5 (Date)