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HomeMy Public PortalAbout074-2004 - Tax Abatement - Contract Industrial Tooling - E.pdf.ORDINANCE NO.74-2004 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 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 Contract Industrial Tooling, Inc. New Jobs: 2 Jobs Retained: 82 Estimated New Value: $695,044 Dated: September 16, 2004 Passed and adopted this ♦ f day of 2004 by the Common Council of the City of Richmond, Indiana. ATTE , City Clerk (Karen hasteen) PRESENTED to the Mayor of the City of Richmond, Indiana, this 2/41 day of , 2004 at 9:00 a.m. City Clerk (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _!e day of 2004 at 9:05 a.m. XX4#�A.Mayor Sarah L. Hutton ATTE Clerk Caren Chasteen) saga STATEMENT OF BENEFITS O State Form 27167 (R7112-01) S$ FORM "< Prescribed by the Department of Local Government Finance INSTRUCTIONS. Y 1. This statement must be submitted to the body designating the economic revitilization 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 for 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, 1967 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 deduction maybe approved. 3. To obtain a deduction, From 322 ERA, Real Estate Improvements and 1 or Form 322 ERA 1 PPME and 1 or 322 ERA/ PPR & DE, must be riled with the county auditor. With respect to real property, Form 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 /PPME and l or 322 ERA PPR & DE must be filed between March I and May 15 of the assessment year in which new manufacturing equipment andlor research and development equipment becomes assessable, unless a riling extension has been obtained. A person who obtains a riling extension must file the tom? 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 - 1 annually to show compliance with the Statement of Benefits. 5. The schedules established under IC 6-1.1-12.1-4(d) and iC 6-1.1-12A-4.5 (e) effective July 1, 2000 apply to any statement of benefits riled 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 CONTRACT INDUSTRIAL TOOLING, INC. Address of taxpayer (street and number, city, state, ZIP code) 433 NORTHWEST L STREET RICHMOND IN 47374 Name of contact person Telephone number 1(765)966-1134 MIKE CATEY AND KIM WUERTEMBERGER SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number COMMON COUNCIL OF THE CITY OF RICHMOND, IN 10-1954,11-1991 Location of property County Taxing district 2347 SALISBURY ROAD RICHMOND IN 47374 IWAYNE RICHMOND Description of real property improvements and 1 or new manufacturng equipment and 1 or ESTIMATED research and development equipment (use additional sheets ifnecessary) Start Date Completion Date See attached Real Estate New Mfg Equipment 09/01/2004 10/01/2004 R&DE SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 8�250,000 82 2,597,378 82 2,597,378 2SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE. Pursuant to IC 6-1.1-12,1-5.1 (d) (2) the Real Estate Improvements Machinery Research and Development Equipment COST of the property is confidential. Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values 1,827,97S Plus estimated values of proposed project 695,044 Less values of any property bang replaced Net estimate values upon completion of project 2,523,019 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION• I hereby certi that the representations in this statement are true. Signature of authorized representative Date signed (month, day, year) ;11111 9 - �es� Csst!� / 6 /0 Form SB-1, page 1 - Copyright © 2004 DIS, Inc. ClientiLoc 14241 10-04 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; p Yes p No 2. Installation of new manufacturing equipment: p Yes © No 3. Installation of new research and development equipment; p Yes p No 4. Residentially distressed areas p Yes p No C. The amount of deduction appicable for redevelopment or rehabilitation is limited to $ cost with an assessed value of $ D. The amount of deduction appicable to new manufacturing equipment is limited to $ cost with an assessed value of $ E. The amount of deduction appicable to new reasearch and development equipment is limited to $ cost with an assessed value of $ F. other limitations or conditions (specify) Also we have reviewed th ' formation contained in the statement of benefits and find that the estimates and expectations are reason- able and have determ' the totality of be is is sufficient to justify the deduction described above. Approved: (signature a title of thorized member) Telphone number Date signed (month, day, year) A ted b 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-1, page 2 - Copyright 0 2004 DIS, Inc. Client/Loc ATTACHMENT TO FORM SB-1, page 1, Section 2 Name of taxpayer CONTRACT INDUSTRIAL TOOLING, INC. Description of real property improvements and 1 or new manufacturing equipment and 1 or research and development equipment 10 YEAR ABATEMENT REQUESTED HAUTAU TUBE -CUTTER (RC80) ----- $400,000. AIR COMPRESSOR ----- $29,776. FLOOR CONVEYOR (MOTION)------ $23,500. JIB CRANES & 10 TON LOCKED ----- $71,206. STORAGE RACKS (STEEL ONLY ADD CIT LABOR) ----- $21,062, SLAVE PALLETS ESTIMATED ----- $3,000. PAINT EQUIPMENT 4 PAINT GUNS ----- $11,500. AIR FILTRATION SYSTEM ----- $60,000. FOAM CUTTER -MATERIAL ONLY----- $75,000. Attachment to Form SB-1, page 1, Section 2 - Copyright © 2004 CIS, Inc. Client/Loc 14241 10-04 Form SB-lA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Contract Industrial Tooling, Inc. 433 Northwest L Street Richmond, IN 47374 Mike Catey or Kim Wuertemberger at 765-966-1134 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 $ 11.12 2. Average hourly wage for projected new positions $ 11.00 3. Average hourly health insurance benefit $ 2.50 1. The length of the abatement you are requesting 10 Years (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 See Attached • 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 NIA 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 Signat6e and Title) ,:� - - I (Date) CONTRACT INDUSTRIAL TOOLING, INC. ATTACHMENT TO FORM SB-9A Equipment to be purchased: Description Cost Estimated useful life HAUTAU TUBE -CUTTER (RC80) $ 400,000 15 years AIR COMPRESSOR 29,776 10 years FLOOR CONVEYOR (MOTION) 23,500 15 years JIB CRANES & 10 TON LOCKED 71,206 20 years STORAGE RACKS (STEEL ONLY ADD CIT LABOR) 21,062 20 years SLAVE PALLETS ESTIMATED 3,000 20 years PAINT EQUIPMENT 4 PAINT GUNS 11,500 10 years AIR FILTRATION SYSTEM 60,000 10 years FOAM CUTTER -MATERIAL ONLY 75,000 10 years Total Cost $ 695,044