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HomeMy Public PortalAbout035-2003-Abatement -- SILGAN CLOSURES - EQUIPMENTAMENDED ORDINANCE NO.35-2003 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 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 - 8 YEARS Silgan Closures, LLC New Jobs: 20 Jobs Retained: 187 Estimated New Value: $2,075,871.00 Dated: April 17, 2003 L Passed and adopted this i C� - day a 2003 by the Common Council of the City of Richmond, Indiana. President Bing W ch A S City Clerk Norma chroeder L� PRESENTED to the Mayor of the City of Richmond, Indiana, this gka: day o , 2003 at 9:00 a.m. City Clerk Noma Schroeder ,�`k OVED by me, Shelley D. Miller, Mayor of the City of Richmond, Indiana, this O� day o , 2003 at 9:05 a.m. Mayor Shel D. Miller A 'ity Clerk State Form 27167-(R614-00) - - ' Form 5B i Is prescribed by the State Board of Tax Cornmissiohers,1989 +eie =Su INSTRUCTIONS: 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 / of 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. (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 W ERA, Real Estate Improvements and/or Form $22 ERA /PPMEand /or 322 ERA /PPR & DE, must be filed with the county auditor. With respect to real property, Form 322 ERA must be fled 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 fifing extension has been obtained. A person who obtains a fling extension must fie the form between March 1 and June 14 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 1C 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-beneflts fled 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. Name of taxpayer Address offaxpayer (street and number, cl6t,, state and ZIP code) Name of contact person Telephone number e� fir%A11016u/ 1.(76C) 9 S-AW Name of 9;'l0 , L Resolution number / —/p� Taxing district Description of real property Improvements and/or new manufacturing equipment and I or research and qevelopment equipment (use additional sheets if necessary) ESTIMATED Start Date Completion Data Real Estate New Mfg Equipment /Z�Zoa3 R&DE Current number Salaries 87 G96 04d Number retained Salarleg Number additional Salaries 7 G P6 [MOTE: Pursuant to IC 6-1.1-12.1-5.1 (d)" (2) the CAST of She properly is confidential. Real Estate Improvements Machinery Research and Development Equipment Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values 2 LM2 y;, /2 171 Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of project S`r3 Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: I hereby certify that the representations in this statement are true. Signatureof authorized representative 71tie Date signed (month, day, year) 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 1C 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 desighaled area is limited to: 1 . Redevelopment or rehabilitation of real estate improvements; ❑ Yes ❑ N o 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 C .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 (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 that the totality of benefits is suff€clent to justify the deduction described above. Approved: (sfgnatur nd tajtle of autho ed m e Telephone number Date signed (month, day, year) ( ) 5-- lei-b3 ted��b,,• Wv �� De Hated body * If the designating bo y 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 Asset Category Land Buildings Plant Equipment Furniture & Fixtures Projects in Progress TOTAL SILGAN CLOSURES RICHMOND FACILITY as of February 28, 2003 Original Accumulated Net Book Value Depreciation Value 51,000.00 51,000.00 5,371,518.00 618,779.00 4,762,739.00 17,660,669.00 11,012,289.00 6,648,380.00 923,134.00 792,922.00 130,212.00 256,850.00 256,850.00 24,263,171.00 12,423,990.00 11,839,181.00 Project 1 Line R-2, 1 2 Line R-3, 1 3 Litell Coil Line 4 Scroll Line 1-4 5 Scroll line 2-4 6 Scroll line 3-4 7 Line R-2-2 8 Line R-3, 2 9 In -Shell 10 BTO Line SILGAN CLOSURES RICHMOND FACILITY PROJECTS AS OF 04/15/2003 Start Dat, CompletE Equipmen Moving Book Book Jobs TransferrE Cost Cost Value Life Yrs Created From Oct-02 Jan-03 217342 26002 243344 15 3lllinois Oct-02 Jan-03 218520 26002 244522 15 3lllinois Nov-02 May-03 460000 943 459057 15 0 Missouri Nov-02 Jan-03 11056 2429 13485 15 0Illinois May-03 Aug-03 13703 2430 16133 15 1 Illinois May-03 Aug-03 16000 2430 18430 15 1 Illinois May-03 Aug-03 219850 26000 245850 15 3lllinois May-03 Aug-03 219850 26000 245850 15 3lllinois May-03 Aug-03 139200 139200 15 0 Rebuild Aug-03 Oct-03 449586 414 450000 15 6Illinois 1515521 112236 1625871 Equipment definition: 1 Line R-2,1 punch press to punch caps from metal strips, cap size 110 MM 2 Line R-3,1 punch press to punch caps from metal strips, cap size 100 MM 3 Litell Coil Line takes large coils of Aluminum or Steel cutting into sheets. 4 Scroll Line 1-4 Takes coated and printed metal sheets cutting them into strips for the press. 5 Scroll Line 2-4 Takes coated and printed metal sheets cutting them into strips for the press. 6 Scroll Line 3-4 Takes coated and printed metal sheets cutting them into strips for the press. 7 An additional press to double the capacity of Line R-2,1(Item 1) 8 An additional press to double the capacity of Line R-3,1( Item 2) 11 * In -Shell is the equipment that places compound into a cap and melts it into the cap. 10 BTO Line Puts together a composite cap consisting of a metal center and plastic threaded rim. 01 *In -Shell is currently inoperable and has not been used for 5 years, the market did not require its operation. However competition now dictates its rebuild. While this will not create additional jobs it will preserve aproximately 20 to 25 positions. In addition Silgan Closures, Richmond Plant has developed a Transition Assistance Program program for persons having at least 30 years of service as of December 2003. A total of 43 people elected to participate. By doing this, Silgan Closures then goes into the market place seeking to replace these workers. The impact to the community is positive in that 43 people leaving the work force has no negative economic impact while hiring replacements is positive to the community. The transition process starts in April 2003 and completes in December 2003 Form SB-IA City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: 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 $ , 2. Average hourly wage for projected new positions $; 3. Average hourly health insurance benefit $ , 1. The length of the abatement you are requesting f OM (A 1-10 year abatement may be 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. def nition of employees to be included as innumber 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. rued d Title) (Dte} Question 2 Average hourly wage for projected new positions. This is an average beginning wage exclusive of any overtime or overtime premium or shift premium. New personnel are generally hired at this rate while based on seniority existing employees are allowed to bid on and fill openings at higher levels of pay. Thus while the answer to the question is $11.26 the company has created 20 new Positions at the following rates: Lug Mechanic 12 at $15.69 Scroll Mechanic 2 at $15.04 BTO Mechanic 6 at $15.69