HomeMy Public PortalAbout013-2004 - Tax Abatement - Osborn Intl. - Equipment.pdf.w.exh.pAMENDED ORDINANCE NO. 13-2004
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 six (6) years (i.e. one to six 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:
l . 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:
EQUIPMENT - 10 YEARS
Osborn International, a unit of Jason, Inc.
New Jobs: 108
Jobs Retained: NIA
Estimated New Value: $2,000,000.00
Dated: February 20, 2004
Passed and adopted this Jam' t day of 2004 by the Common Council of the City
of Richmond, Indiana.
ATTES • , City Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this G CI` day of
2004 at 9:00 am.
City Clerk
(Karen Chasteen)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana., this �day of
2004 at 9:05 a.m.
Mayor
Sarah L. Hutton
ATTESCity Clerk
(Karen Chasteen)
STATEMENT OF BENEFITS
State Form 27167 (Ft614-00)
Form SB - i is prescribed by the State Board of Tex Commissioners, t 9B9
+ tape
INSTRUCTIONS.
FORM
SB-j
1. This statement must be submitted to the body designating the economic revitilfzation area prior to the public hearing if the designating body requires Infor-
mation 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 or BEFORE the
redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. 'Projects'planned or committed to aRerJuly 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 initiation of the redevelopment or rehabilitation,
or prior to Installation of the new manufacturing equipment and/ or research and development equipment, BEFORE a deduction may be approved
3. To obtain a deduction, Form 322 ERA, Real Estate Improvements and/or Form 322 ERA /PPMEand/or 322 ERA /PPR & DE, must be fled with the county
auditor. With respect to real property, Foan 322 ERA must be riled by the later of. (1) May 10; or (2) thirty (30) days after a notice of increase In real property
assessment Is received from the township assessor. Form 322 ERA/ PPMI; and /or 322 ERA PPR & DE must be filed between March 1 and May 15 of the
assessment year in which new manufacturing equipment and /or research and development equipment becomes assessable, unless a filing extension has
been obtained. A person who obtains a filing extension must ffle the form between March i and June 14 of that year.
4. Property owners whose Statement of Benefits was approved after June 30, 1991 must submit Form CF - 1 annually to show compliance with the Statemen
of Benefits. (iC 6-1.1-IZ 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 (a) effective July 1, 2000 apply to any statement of benefits filed on or after
July 1, 2000.
The schedules effective prior to July f, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000.
Name of taxpayer
Osborn International, A Unit Of Jason Incorporated
Address of taxpayer (street and number, city, state and ZIP code)
5401 Hamilton Avenue, Cleveland, Ohio 44114
Name of contact person
Telephone number
Timothy E. Hitesman,.-
(216 ) 361-1400 x520
I mgr + r r flUaliijigjgw 4#1•-.
Name of designating body
Resolution number
Richmond Common Council
Location of property Midwest lCounty
Taxing district
3031 Industries Road (Lot #3 Ind Park) I Wayne
Description of. real property improvements and 1 or new manufacturing equipment and / or
research and development equipment (use additional sheets If necessary)
Relocation and/or purchase of manufacturing
equipment for industrial brush manufacturing
ESTIMATED
Start Date
Completion Date
Real Estate
New Mfg Equipment
7_.1-04
12/31/2004
R & DE
r r s +- • ; 161 uslml nu -lit
Current number Salaries Number retained Salaries Number additional Salaries
-0- --0- -0- -0- 108 1$8.50 - $20.00
NOTE. Pursuant to IC 6-1.1-12.t 5.1 (d) (2) the
COST of the property is confidential.
Real Estate Improvements
Machinery
Research and Development
Equi meet
Cost
Assessed Value
Cost 1
Assessed Value
Cost
Assessed Value
Current values
Plus estimated values of proposed project
Less values of any property being replaced
Net estimated values upon completion of pLoject
11 500 000
. . -. . + •+
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
cogg "Yfi+ ,
hereby cerfify that the representations in this statement are true.
Signatu ized representative
Title
P>-�j�
Date signed (month, day, year)
o-�o Rb a-oo y
' 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, 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 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 . Redevelopment or rehabilitation of real estate improvements; ❑ Yes []No
2. Installation of new manufacturing equipment; ❑ Yes ❑ N o
3. Installation of new research and development equipment; ❑ Yes ❑ N o
4. Residentially distressed areas ❑ Yes ❑ N o
0. The amount of deduction applicable for redevelopment or rehabilitation is limited to $ cost with an assessed
value of $
D .The amount.of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed
value of $
E. The amount of deduction applicable to new research and development equipment is limited to $ cost with
an assessed value of $
F. Other limitations or conditions (spec"
Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason-
able and have determin tYie totality of benefits is sufficient to justify the deduction described above.
Approved: (slgnat an it of authorized me ber)
Telephone number
Date signed (month, day, year)
Atte y
Designated body /
" If the designating body limits the time period during which an area is an economic revitilization 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 or 4.5
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person: Osborn International
5401. Hamilton Avenue
CCl1e� ��11 dd� Ohio 44114
CON'VM+' .. T* thy E. Hitesman
The information requested on this supplement to form SB-1 must die cnmgleted 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 subj ect to review as a part of our monitoring process.
1. Average hourly wage for existing employees $ -0-
2. Average hourly wage for projected new positions $ 11.00
3. Average hourly health insurance benefit $ 2.75
l . ' The length of the abatement you are requesting 10 year
(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
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'usin the annual cost per eligible employee divided by 2080 hours.
� s o�-vo
(Authorized Signature and Title) Timothy E. Hitesman (Date)
President
Jason Brush Group
Osborn International, N.A.
Valuation Estimate of Assets moving to Richmond, IN
• Machinery, Equipment, Tooling — Abatement eligible
$1,486.,446.16
• All Other Assets — Receiving, Tool Room, Distribution Center— not eligible
$ 49,574.54
• Total Value:
$1,536,020.69 N.B.V.
The Jason Brush Group
February 20, 2004
Brazil
China
■ Denmark
France
Germany
Great Britain
Mexico
a Portugal
Romania
Spain
Sweden
United States of America
Osbom International is a leading manufacturer of industrial power brushes in the North American
market. Power brushes are used in a multitude of industries primarily in the manufacturing sector and
more specifically in the machine tool markets. Power brushes are also used in many other industries
as well such as pipeline, plastics, automotive, aerospace and DIY. Osborn International has more than
50 patents for brush products.
Osborn International is part of the Jason Brush Group, the global leader in the industry which operates
manufacturing facilities in 10 countries and also has a Chinese joint venture. Sales are made from the
Group into more than 90 countries around the world. Osborn International has been owned by Jason
Incorporated of Milwaukee, Wisconsin since 1986 but the original operations date back to 1895.
Osborn International is currently based in Cleveland, Ohio where if has manufactured and sold
products from the same facility for over 100 years. This facility has been improved and expanded over
the years to encompass some 350,000 square feet and has approximately 220 employees.
The Board of Directors of Jason Incorporated has recently approved a relocation of the power brush
production operations to Richmond Indiana as a result of the continuing high costs of facility
maintenance in Cleveland, the poor layout of the current facility and the need to be better positioned
for distribution to the customer base.
Osborn International will be relocating by mid 2004 and will be hiring a total of approximately 108+
employees to populate the facility by the end of 2005. Average production and distribution wages will
be approximately $10.50 per hour and salaried employee wage rates will range from $10.00 — $20.00
per hour. Osborn will offer medical and dental benefits, life insurance and optional disability insurance
for all employees in addition to vacation periods and holiday periods similar to other businesses in the
area. A 401 k program will be phased in after employment stability is obtained possibly as early as
2005.
Timothy B. Hitesman, President — Jason Brash Group, A Unit of Jason Incorporated
5401 Hamilton Avenue - Cleveland, Ohio, USA 44114-3997
Phone (216) 361-1900, extension 520 - Fax (216) 361-1706
www.osbam.com • e-mail: hitesman@osbom.com