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Home My Public Portal About006-2003 - Abatement - Mac-Del - Equipment.pdf.w.exhORDINANCE NO. 6-2003 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 Iess 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: REAL ESTATE - 10 YEARS Mac -Del, Inc. New Jobs: 2 Jobs Retained: 37 Estimated New Value: $230,000 Dated: December 30, 2002 Passed and adopted this'S 7� + ` day o 2003 by the Common Council of the City of Richmond, Indiana. r President C-Iing elc A , City Clerk Norm Schroeder lle PRESENTED to the Mayor of the City of Richmond, Indiana, this day o , 2003 at 9:00 a.m. &tAA� City Clerk Norma Schroeder VED by me, Shelley D. Miller, Mayor of the City of Richmond, Indiana, this day o , 2003 at 9:05 a.m. W ty Clerk STATEMENT OF BENEFITS State Form 27167 (R7112-01) F =' Prescribed by the Department of Local Government Finance INSTRUCTIONS: FORM SB-1 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 1 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, 1987require a STATEMENT OF BENEFITS. (IC 6-1.1-12,1) Z 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 1 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 1 PPME and 1 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 I 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 - 1 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 1C 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 1, 2000 shall continue to apply to those statement of benefits filed before July 1, 2000. SECTION•- • Name of taxpayer Mac —Del, Inc. Address of taxpayer (street and number, city, state and ZIP code) 1655 Rich Road Richmond, IN 47374 Name of contact person Telephone number Red Van Duyn (765 ) 962-5548 SECTIONLOCATION AND DESCRIPTION OF •••• PROJECT Name of designating body Resolution number Common Council of the City of Richmond, Indiana 10-84AMEND11-91 Location of property County Taxing district 1655 Rich Road Richmond, IN 47374 Wayne Richmond Corp. Description of real property improvements and I or new manufacturing equipment and I or ESTIMATED research and development equipment (use additional sheets if necessary) Start Date Completion Date Real Estate 10/15/02 1/1/03 Building addition of 2 cleaning bays (3000 square New Mfg Equipment feet) R&DE SECTIONOF a OF •••• . PROJECT Current number Salaries er retained Salaries Numb Number additional laries 37 $1,400,000 37 1$1,400,000 2 N60,000 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to iG 6-1.1-i2.1-a.i (d) (2) the COST of the property is confidential. Rea', Estate improvements Machinery Research and Development Equipment Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values $ 735 , 686 Plus estimated values of proposed project $ 230 , 000 Less values of any property being replaced -0- Net estimated values upon completion of project $ 965 , 686 SECTION• r AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: RECEIVED DEC3 0'2002 SECTION• I hereby certify that the representations in this statement are true. res five Signatu f authorizVr,— Title Date signed (month, day, year) Asti d" i Z130 1(0 >-- DEC-20-•02 14;42 FROM;CITY OF RICHMOND FINANCE ID;1 765 963 7212 PAGE 6/6 Form SW1A. City of FW ond, Judiana Taxpayer Wage & Benefit lnforwation Company Name, Addrew&CAntw-tPets= Mac-Del,.Inc. 1655 Rich Road Richmond, IN 47374 Red Van Duyn The iix 0 aton requested on. this Muppj=nt to f= SB-1=jst be co=pIeted aad. sabmft�d- 90o —1h Y= SB-1 in order for yowl tsm abat=CA request to be cons4dnXI 11Y Richmond C,cm m Co1mc17. Plead rct=yow records and ealculatiiow used to =ve at the mformaton requested oatbas form it'is subject to review as a part of our monitrning P7rocess- i. Average hourly wage for =stmg =P10Yen 2. Average booudy woe fOr Projected zI posx'= $ 12.00 3. Average hourly hea#h inset-m= benedt $ 5.18 LO yPs 1, The Ielzgh of the abxtemeat you are Iing etds and m�ujactta"ing egrcipme�d.} (.4 I-Nl year abatement may he requested for real estate 2. f rchssing Please a##ach a 1ist that W"es the foIiowx * N/A • brief descxitption of each p=0 of eq=pw=A being • the projected usdd M of each of e� - • the stafc(s) m which the eq k is being brit kfo In&=a from if PM411. � used • the cost of each piece ofequil==t 3_ . If malting real estate ovelnents, Ply Prpvide a list ihai. includes the folloRrtng~ See attached sheet. • brief ptaon of the real es �d (new �� rehab, °� a '= Of he }ropes real estdo ImprovMents • costs of file proposed- zeal oat imPoV=eDls Y?FMMOM to four your most rec ag pay penod 1�� pzovlde the X. AT%290 h0ndY wage for a Sfmg emP yeas: l - Do not include the avaege base wage per hoar for all =rent fail tu=, a � emp oY following groups: 11. p=t duLe ervloyee% fol�'J en, or aq Other icy C. u � i€frY Own 2°fo or M*re of the b and *4 r C. OWIYer$, Stio�lCl�c'+� or l'e[S , members. 1p tO be induced IAverage hOudYw13, forPrqjeaed postt�ons= Usctlle sa>r}e.d oII Otfe�P yam' as in ==ber one above. head er 3. A,4, hmey health � bwea please pwvide the curt � Please pry in the beneefl#s provided to hourly a (as deed. above) and �' form of atx boudy rate cowpvted tsing the. all=O cost P= efleble empkrjw divided by, 7088 hotas. »F • ice• ±JI : � � � Attachment to Form SB-1A Mac -Del, Inc. 3. Real estate improvements • 2 additional cleaning bays added to building • 3000 square ft. • $230,000 = approximate cost 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. Residentially distressed areas ❑ Yes ❑ N o C .The amount of deduction applicable for new manufacturing equipment is limited to $ cost with an assessed value of $ D .The amount of deduction applicable to redevelopment or rehabilitation is limited to $ cost with an assessed value of $ E . Other limitations or conditions (specify) F. The deduction for new manufacturing equipment installed and first claimed eligible for deduction after July 1, 1991 is allowed for: ❑ 5 years ❑ 10 years The deduction period will be five (5) years unless the designating body has by resolution specified the ten (10) year period. 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. .pproved: (signs a and title of auih rued em r) �"' Telephone number Date signed (month, day, year) -'_� '3 ( r - - C) .tte ted 1 D ignated body If th6 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 Namely: (see tables below) Year of Deduction Five (5) Year Percentage Ten (10) Year Percentage 1 st 100% 100% 2nd 95% 95% 3rd 80% 90% 4th 65% 85% 5th 50% 80% 6th 70% 7th 55% 8th 40% 9th 30% 10th 25% REDEVELOPMENTOR REHABILITATION • •IMPROVEMENT iF•' s 9 -•Y . 4 e i6 Year of Three (3) Year Six (6) Year Ten (10) Year Deduction Deduction Deduction Deduction 1st 100% 100% 100% 2nd 66% 85% 95% 3rd 33% 66% 80% 4th 50% 65% 5th 34% 50% 6th 17% 40% 7th 30% 8th 20% 9th 10% 10th 5%