HomeMy Public PortalAbout055-2004 - Tax Abatement - Hill's Pet Nutrition - equipmen.pdf.ORDINANCE NO.55-2004
AN AMENDED SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A
STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR
DEDUCTIONS UNDER I.C. 6-1.1-1.2.1
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, 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
Hill's Pet Nutrition Indiana, Inc.
New Jobs: 3
Jogs Retained: 218
Estimated New Value: $6,046,000.00
Dated: June 14, 2004
Passed and adopted this day oo - 2004, by the Common Council of the City
of Richmond, Indiana.
ATTES 2Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this day o
2004 at 9:00 a.m.
ity Clerk
(Karen Chasteen)
RO D by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this dYU day of
2004 at 9:05 a.m.
/`PVlayor
Sarah L. Hutton
ATTEST_: ty Clerk
Karen Chasteen)
STATEMENT OF BENEFITS
State Form 27167 (R71 12-01)
�y Prescribed by the Department of Local Government Finance
Hsu
INSTRUCTIONS:
FORM
SB-1
1. This statement must be submitted to the body designating the economic revitalization 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 Revitafization Area. Otherwise this statement must be submitted
to the designating body BEFORE a person installs the new manufacturing equipment and I 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 after July 1. 1987 and
areas designated after July 1, 1987 require a STATEMENT OF BENEFITS. (1C 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 I or research and development equipment, BEFORE a deduction may be approved.
3. To obtain a deduction, Form 322 ERA, Real Estate Improvements and I or Form 322 ERA i PPME and I or 322 ERA I PPR & DE, must be filed with the
county auditor. With respect to real property, Form 322 ERA must be filed 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 I PPME and I or 322 ERA PPR & DE must be filed between March 1 and May
15 of the assessment year in which new manufacturing equipment and I or research and development 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 of Benefits was approved after June 30, 1991 must submit Form CF - I 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(d) and iC 6-1.1-12.1-4.5 (e) effective July 1, 2000 apply to any statement of benefits filed on or after
July 1, 2000.
The schedules effective prior to July 1, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000.
SECTION•- •
Name of taxpayer
Hill's Pet: Nutrition Indiana, Inc.
Address of taxpayer (street and number, city, state and ZIP cote)
400 SW 8th Avenue, PO Box 148, Topeka, KS 66601
Name of contact person
Telephone number
Denise Walsh
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number-
nurnb7r—
City
City of Richmond Common Council
10-1984 11-1991
Location of property
County
Taxing district
2325 Union Pike
I Wayne
City of Richmond
Description of real property improvements and f or new manufacturing equipment and I or
research and development equipment (use additional sheets if necessary)
ESTIMATED
Start Date
Completion Date
Real Estate
MANUFACTURING EQUIPMENT
New Mfg Equipment
01-26-04
-12-31-05
SEE ATTACHED
R&DE
SECTIONOF • AND SALARIES AS RESULT OF -a-• ■ PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
218 $ 9,677,193 1 218 $ 10,6443912 3 $ 112,632
I
SECTION• TOTAL COSTAND VALUE OF •••• . PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the
COST of the property is confidential.
Real Estate Improvements
Machinery Research and Development
Equipment
Cost
Assessed Value
Cost
Assessed Value Cost
Assessed Value
Current values ($000's)
46,634
134,606
Plus estimated values of proposed project( $000 s}
467
9,533
Less values of any property being replaced
Net estimated values upon completion of proje 000
47,101
1144,139
SECTION• . AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) ----- _----- ___------- Estimated hazardous waste converted (pounds) _______ -----------------
Other benefits:
CERTIFICATIONSECTION 6 TAXPAYER
h certify that the representations in this statement are true.
Signature of ri d rep sentativ
• �Gy
Title
Vice President/
Chief Financial Office
Date signed (month, day, year)
June 14, 2004
r
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 ❑ No
3. Installation of new research and development equipment; ❑ Yes ❑ No
4. Residentially distressed areas ❑ Yes ❑ No
C .The amount of deduction applicable for redevelopment or rehabilitation is limited to $ cost with an assessed
value of $ _M________________•
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 (specify) ---------------- —___-------------------------- ----- ------------
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 t e totality of benefits is sufficient to justify the deduction described above.
A ro=(signatandorized member)
Telephone number
Date signed (month, day, year)
7W) 7 f! � -3
7 o .
A ste 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
Hill's Pet Nutrition Indiana, Inc.
Form SB-1
Section 2 - Description of Project Investment
The proposed investments are targeted to energy reduction, process
yeild improvements, process capability changes and new product
process implementation.
2004 2005
($000) ($000)
Facility Improvements
Security Improvements 75
Total $ 75 $ -
Manufacturina Process Eauipment
Product A Capability
$
1,750
Product B Capability
340
Process Yield Improvement
295
Bag Sealing Equpment
18
Product C Capability
876
Packaging Line Capacity Expansion
2,082
Ingredient Batching Improvements
1,500
Conversion Process Cost Reduction
1,100
Throughput Efficiency Improvements
887
Total
$
5,361
$
3,487
Other
Energy Reduction
360
Tracking for Bioterrorism
250
Total
$
610
$
-
Total Manufacturing Equipment
$
' 5,971
$
3,487
Total Investment
$
6,046
$
3,487
Total Investment - Both Years
$
9,533
Hill's Pet Nutrition Indiana, Inc.
Form SB-'l
Section 3 - Estimate of Employees and Salaries
New Positions
Hourly Wage
w/o Fringe Annual
Ben Hours
Technician $ 18.05 2080 $ 37,544
Technician $ 18.05 2080 $ 37,544
Technician $ 18.05 2080 $ 37,544
Total New Positions $ 112,632
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person: Hill's Pet Nutrition Indiana, Inc.
400 SW 8th Avenue, PO Box 148, Topeka, KS 66601
Denise Walsh (785)368-5070
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.
1. Average hourly wage for existing employees $ 21.34
2. Average hourly wage for projected new positions 18.05
—. 3. Average hourly health insurance benefit KS 11. 7 % of wages
1. The length of the abatement you are requesting 10 Years
(A 140 year abatement may be requested for real estate improvements and manuf=hff ing 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
DEFIIVT,1.'IUNS
1. Average hourly wage for existing employees: for your most recent pay period please provide the
average base wage per hour for all current fill 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 20/6 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 member one above.
3. Average hourly health inuaance benefit Please provide the ciarent company paid health insurance
benefits provided to hourly employees (as defined above) and famfiy members. Please present in the
foes of an hourly rile compute4ipmg the annual cost per eligible employee divided by 2080 hours.
Signature and Title)
VP/Chief Financial Officer June 14, 2004
(Date)
Hill's Pet Nutrition Indiana, Inc.
Form SB-'IA
Taxpayer Wage & Benefit Information
1 Average Hourly Wage - Existing Employees
2 Average Hourly Wage - New Positions
3 Hill's Benefit Program Costs (% of salaries)
Total Benefit Rate
Medical & Dental Insurance Portion
Base Annual Average
Wages as of Personnel Hourly
12-31-2003 Count Wage
9,677,193 218 $ 21.34
112,632
39.5
11.7
3 $ 18.05
Wage data and related wage calculations on the forms SB-1 and SB-1A for existing employees
is the same 2003 annual wage data that was used on the Hoosier Business Investment Tax
Credit Application and the Indiana Project Profile form filed in 2004 with the Indiana Department
of Commerce.
ORDINANCE NO.55-2004
r;
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, 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
Hill's Pet Nutrition Indiana, Inc.
New Jobs: 3
Jobs Retained: 218
Estimated New Value: $9,533,000.00
Dated: June 14, 2004
Passed and adopted this day of
of Richmond, Indiana.
ATTEST: , City Clerk
(Karen Chasteen)
2004, by the Common Council of the City
(Larry Parker)
President
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of ,
2004 at 9:00 a.m.
, 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
ATTEST: , City Clerk
(Karen Chasteen)