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HomeMy Public PortalAbout088-2004 - Tax Abatement - Color Box, LLC - Equipment.pdf.wORDINANCE NO. SS — 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 Color -Box, LLC New Jobs: 33 Jobs Retained: 299 Estimated New Value: $2,604,200.00 Dated: October S, 2004 Passed and adopted this 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 J day of , 2004 at 9:00 a.m. g A� ity Clerk (Karen Chasteen) APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 9 day of 2004 at 9:05 a.m. e f mayor Sarah L, utton ATTE rk (Karen Chasteen) STATEMENT OF BENEFITS State Form 27167 (R7112-01) Prescribed by the Department of Local Government Finance INSTRUCTIONS. FRM RneyEQ OCT 112004 :SOB - I 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/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, 1967require 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, BEFOREa deduction maybe approved. 3. To obtain a deduction, From 322 ERA, Real Estate improvements and/ or Form 322 ERA /PPME and / or 322 ERA /PPR & Dl , must be filed with the county auditor. With respect to real property, Form 322 ERA must be tiled 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/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 file the form between March 1 and the extended due date of fhat 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. (lC6-1.1-i2.i-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. F- SECTION I TAXPAYER INFORMATION Name of taxpayer COLOR -BOX, LLC Address of taxpayer (street and number, city, state, ZIP code) 623 S G ST/1050 INDUSTRIES RD RICHMOND IN 47374 Name of contact person Telephone number SHELLIE MADILL (765)966-7588 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number COMMON COUNCIL OF THE CITY OF RICHMOND, IN 10-1984,11-1991 Location of property County Taxing district 623 SOUTH G STREET RICHMOND IN 47374 WAYNE RICHMOND CORP. Description of real property improvements and 1 or new manufactumg equipment and ! or ESTIMATED research and development equipment (use additional sheets if necessary) See attached Start Date Completion Date Real Estate New Mfg Equipment 11/01/2004 12/31/2005 R&DE SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries !Number retained Salaries Number additional Salaries 299 13,875,100 299 13,875,100 33 1,200,000 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 6-1.1-12.15.1 (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 36,702,401 11,010,720 Plus estimated values of proposed project 2,604,200 781,260 Less values of any property beng replaced Net estimate values upon completion of project 39, 306, 601 11, 791, 980 SECTION• OTHER BENEFITS PROMISEDBY Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: SECTION• INqrebN ceplify that the representations in this statement are true. Sign u e of out r' d representative Title Date si n d onth day, year) 1 [YU} ` 1"i Form S13-1, page 1 - Copyright © 2004 CIS, Inc. ClienULoc COLORBOX 04PPT ATTACHMENT TO FORM SB-1, page 1, Section 2 Name of taxpayer COLOR -BOX, LLC Description of real property improvements and / or new manufactumg equipment and 1 or research and development equipment BOBST DIE -CUTTER $ 427,000 BOBST FOLDER—GLUER 145,100 HARRIS PRINTING PRESS 2,032,100 TOTAL $2,604,200 Attachment to Form SB-1, page 1, Section 2 - Copyright © 2004 DIS, Inc. ClientlLoc COLORBOX 04PP1 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; [3 Yes p No 3. Installation of new research and development equipment; p Yes p No 4. Residentially distressed areas 0 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 the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have ine totality of benefits is sufficient to justify the deduction described above. Ap roved: (sign ure a tr of authorized membe Telphone number Date signed (month, day, year) Py es d by: Designated body ti i� * 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 © 2004 DES, Inc. Client/Loc Form SB-xA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name and Address: Color --Box, LLC 623 youth G Street Richmond, IN 47374 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 $ 16.50 2. Average hourly wage for projected new positions $ 17.47 3. Average hourly health insurance benefit $ 3.14 The length of the abatement you are requesting 10 Years (A 1-10 year abatement may be requested for real estate improvements and manufacturing equipment.) If purchasing equipment, please state the projected useful life. 15 Years If purchasing equipment, please state whether the equipment is new or used. If purchasing used equipment, list the state in which it is being brought into Indiana from New and Used CA and IA 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. Controller