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Home My Public Portal About061-2005 - Tax Abatement - Innatech - Real Estate.pdf.w.exhORDINANCE NO. 61-2005 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 (I0) 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 ofthe 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 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: REAL ESTATE - 10 YEARS Innatech, LLC Jobs Retained: 65 Jobs Created: 45 Estimated New Value: $6,500,000 Dated: August 26, 2005 Passed and adopted this a day of 2005 by the Common Council of the City of Richmond, Indiana. OF President (Bruce Wissel)T ATTRiL (Karen Chasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this�� day of , 2005 at 9:00 a.m. rk (Karen Chasteen) 3 APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this ' 1 day of 2005 at 9:05 a.m. 01 yor Sarah L. Hutton ATTES �lerk (Karen Chasteen) w STATEMENT. OF BENEFITS F'C)RM REAL ESTATE IMPROVEMENTS SB w l FtE State Form 51767 (5-04) Prescribed by the Department of Local Govemment Finance 1NSTRUC71ONS: 1. This statement must be submitted to the body designating fire economic reviMrizBNon area prior to the public heorin p if the designaling body requires info- matron from the applicant in making its decision about whether to designate an Economic Revltdikadon Area. Otherwise this statement must be submirted to the designating body BEFORE the redevelopment orrehabih7abon ofreal property for whkh the person wishes to clalm a deduction. 'PmJects' planned or committed to after Jufy 1, 1997 and areas designated efterJuly 1, 1e87 require a STATEMENT OP BENEF7S. (IC ft-1, f-12.1) 2 Approval ofthe designating body (Clfy Council. Town Board, County Council, &W most be obtained pforfainihatbo of the redevelopment' orrehaboArtln iREFON6 a deduc&w may be approved. a To obtain a deduction, Form 322l=RA, Application for Deduction horn Assessed Valuation ofSNucturesin Economic Revitalization Areas, must be bled with fire county auditor by the later of., (1) May Atl or (2) thinly (30) days attar the notice of adddw to assessed valuation or new assessment is maled to the prpperfy owner at the address shown on the records of the township assessor. 4. Property owners whose statement Of9enelffs was approved after June 30, 1991 must submit Form CF -1 annually to show compliance with the Statement 01 &anafks. (10 6-1. 1-121-S.6) S The schedules established under IC tt.1.1-12,1-4(d) and IC 0-1. 1-121-4.b(e) eftlive July t. 2000 apply to any statement of heneCrts bled on at after JuN 1. 2Wa The adreddtes emec7ve prior to JuW 1, 2000 shah owftue to apply to those statement of benefits tried belbre July 1, 2M. SECTIONa r Name of taxpayer Innatech, LLC 10 year abatement requested Address of taxpayer (aVeat and number, city, state. zIf Cede) 750 Letica Drive Rochester MI 48307 Name of contact person Telephone number Brian P. Mielock (248)601-7912 SECTION• • . DE$CRIPT40N OF PROPOSED PROJECT Name of designating body Resolution number City of Richmond Common Council Location or property County Taxing district 4200 Industries Road Richmond IN 47374 Wavne Richmond —Center Description of real property linprovements (use additional sheets lfnecessary) ESTIMATED Property expansion: Add 57,000 square feet to start Date Completion Dale existing facility to expand injection molding process 10 year abatement requested Real Estate 09l01/2005 109/01/2007 SECTIONOF • . OF • . . PROiECT Currentnumber Salaries Numberretalned Salaries Numberaddilional Salaries ,709,000 65 1, 709, 000 4 51 972,000 6S 1,709,0001 SECTION 4 NOTE: Pursuant to IC 6-1.1-12.1.5. t (d) (2) the ESTIMATED TOTAL COST A ND VALUE OF PROPOSED PROJECT Roar Estate Improvements COST of the property is confidential. Cost Assessed Value Gurrentvatues 3,000,000 11 968,1100 Plus estimated values of proposed pmJect 6,500,000 Less values of any property being replaced Net estimate values upon completion of project 9,500,000 1,969,000 CONVERTEDSEC I [ON 5 WASTE AND•THER BENEFITS PROMISED B Estimated aMW waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: In addition to paying manufacturing wages to our employees we also pay approximately $7,300 in annual health insurance premiums for each of our employees which will approximate nearly 1 million dollars annually for our entire workforce, SECTION G TAxPAYER CERTIFICATION berebv certifv that the representations in this statement are true. Signature of au repte all Title pate signed (month, day, year) Form 88•1rRE, papa t - Copyrieht0200i DIS. Inc. ClimUL00 11 25G RE We have reviewed our prior actions refeting to the designation of this economic revitalization area and find that the applleant 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 Ifmlled to a period of time not to exceed calendar years '(see below). The date thfs 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. Realdentlaity, distressed areas ❑ Yes ❑ No C. The amount of deduction applicable for redevo4ment or rehabilitation Is limited to $. cost with an assessed value of $ D. Other limitations or conditlons(specffy) 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. Approv . ea re and JNI@ of au ad mbar) r %rphane number Date signed (month, day, year) Attested bf. Designated body ' if the designating body limits the tlnma 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. Fowm sa•uRE, page 2-CgMigM C 2005 018, M-,c, CW(WLa6 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name and Address: Innatech, LL.0 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 SBA 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 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 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) j L -D5 (Date) C&AVab O&W a Temtw Canter 750 LeUm Dfnie Padm der M 48207 24 1W7 W ftT 248-=-9187 Innatech L.L.C., f k a. Fickenscher America, was established in 1'995. The Company is a custom injection molder specializing in multishot molding, with 220 Ml time employees in Indiana, Michigan, and Ohio. Tn 2002, the Company completed construction of the 33,000 square foot production facility in Richmond, Indiana Currently, bmtech is considering an addition to our Richmond facility. Once completed, this addition would achieve ft original 90,000 square foot building plan. L AWM InjeCUon MOkWS MMOWAdnq in Mold -Shot