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Home My Public Portal About037-2003-Abatement - MASTERBRAND CABINETS - EQUIPMENTAMENDED ORDINANCE NO.37-2003 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 - 10 YEARS Masterbrand Cabinets, Inc. New Jobs: 8 Jobs Retained: 364 Estimated New Value: $675,000.00 Dated: April 28, 200``311 LN— Passed and adopted this day o 2003 by the Common Council of the City of Richmond, Indiana. ) 40� &Z President Bing elch A E City Clerk Norma Schroeder PRESENTED to the Mayor of the City of Richmond, Indiana, this C)'Q day of 2003 at 9:00 a.m. ,City Clerk NormaSchroeder Lc. 4OVED by me, Shelley D. Miller, Mayor of the City of Richmond, Indiana, this day o ` , 2003 at 9:05 a.m. Mayor Shel D. Miller ATT T: ity Clerk 4NoSch�oeder :Q-� 011A1 iC1VI=141 Vt- t tNt1-I I S State Form 27167 (R614-00) Form SS - 1 is prescribed by the State Board of Tax Commissioners, 1989 edl• INSTRUCTIONS: RECEIVED APR .2 8 2003 FORM SB - '� I. This statement must be submitted to the body designating the economic revifllization 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, 1987require 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 322 ERA, Real Estate improvements and /or Form 322 ERA / PPME and/ or 322 ERA /PAR & 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. Fann 322 ERA /PPME and/or 322 ERA PAR & 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 June 14 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 Statemen of Benefits. (IC6-1.1-12.1-5.6) 5. The schedules established under IC 6-1.1-12.1-4(d) and IC 6-7.i-i2.1 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. a_nnn Name of taxpayer nd Cabinets Inc Address of taxpayer (street and number, city, state and ZIP code) 701 South N Street Richmond, Indiana 47374 Name of contact person Telephone number Jamme Bankey Facility Engineer (765) 935-2211 x65 SECTION• • a r -r•r . ••• Name of designating body Resolution number Richmond Common Council 10-1984 Location of property County Taxing district 701 South N Street, Richmond, Indiana Wayne Wayne/Richmond Description of real property improvements and / or new manufacturing equipment and / or ESTIMATED research and development equipment (use additional sheets if necessary) Start Date Completion Date The MBCI facility is purchasing equipment to accomodate the addition of 8 customer Real Estate New Mfg Equipment 738,800 $738, 800 service associates, a new 60,000 CFM dust collector, and a new 4-headed sander. See R&DE C SECTION73 ESTIMATE OFEMPLOYEESAND SALARIESAS OF -PROPOSED PROJECT Current number Salaries Number retained Salaries Number addU[onai Salaries 364 11.94 hr 45 11.15 hr 8 9.62 •N 4 ESTIMATED'TOTA L COSTANDUE-O ROPOSED 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 roe is confidential. p p Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values Plus estimated values of proposed project 738,800 $738,800 [Less of any property being replaced Net estimated values upon completion of project 7 3 8, 8 0 0 $ 7 3 8, 8 0 SECTIONS'+ • r AND . •• Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) N/A Other benefits: Continued operation of an enlarged customer service operation in Richmond Continued operation of a wdie-belt sanding line and all milling equipment. Benefits listed further on enclosed documentation. + T.+ • 3 I hereby certify that the representations in this statement are true. Signature of authorize representative Title 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 IC 6-1.1-12.1-2.5, pro- vides for the following limitations as authorized under 1C 6-1.1-12.1-2. A. The designated area has been limited to a period of time not to exceed calendar years w (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 ❑ N o 2. Installation of new manufacturing equipment; ❑ Yes ❑ N o 3. Installation of new research and development equipment; ❑ Yes ❑ No 4. Residentially distressed areas ❑ Yes ❑ N o C .The amount of deduction applicable for redevelopment or rehabilitation is limited to $ value of $ D .The amount of deduction applicable to new manufacturing equipment is limited to $ value of $ E.The amount of deduction applicable to new research and development equipment is limited to $ an assessed value of $ F. Other limitations or conditions (specify, cost with an assessed cost with an assessed cost with 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. Approved; (signatcyan (title Date signed (month, day, year) ��--o75 Dgsj_gnated 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-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Masterbrand Cabinets, Inc. Jamie Rankey Facility Engineer The information requested on this supplement to form S13-1 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 $ $11.9 4 2. Average hourly wage for projected new positions $ 3. Average hourly health insurance benefit $ 5 , g p 1. The length of the abatement you are requesting 19 �rr�--- (A 1-10 year abatement maybe requested far 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.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. MasterBrand C a h i n a t 5, I n e. Equipment Additions MEMORANDUMN FOR RECORD ,Subject: Additional Sheets for forms SB-1 and SB-1A Date: April 28, 2003 The following sheets contain the additional information required for Forms SB-1 and 1 A.. Form SB-I, Statement of Benefits, Section 2; Description of equipment improvements... The conversion of approximately 3,000 square feet of general warehouse/manufacturing space on the second floor to office space will require the following equipment: - 16 Additional Office Furniture Cubicles for new and current representatives. - 8 Optiplex Dell Computers - Phone System Licenses/Friedman Access The facility will also replace an obsolete 3-headed Costa wide belt sander with a new DMC 4-headed wide belt sander with floating bed in order to keep a current sanding line in operation. $170,000 equipment cost, 5 positions affected The facility will also replace a failing Moldow dust collector for the wood milling operations. This project equipment cost is expected to be $505,000 and affects the entire manufacturing facility. MasterBrand C a b i n e t 5, I n c. Equipment Additions MEMORANDUMN FOR RECORD (Page 2) Subject: Additional Sheets for forms SB-1 and SB-lA Date: April 28, 2003 Form SB-1A Taxpayer Wage and Benefit Information The subject property on 701 S N Street has a 268,000 square foot main manufacturing floor, a 24,000 square foot second floor with 10,000 square feet of office space and 14,000 square feet of vacant pro duction/warehouse space, and a 5,000 square foot third floor of storage space and meeting rooms. The following equipment would need to be addedin order to add more customer service representatives.: - 16 Additional Office Furniture Cubicles for new and current representatives. - 8 Optiplex Dell Computers - Phone System Licenses/Friedman Access The facility will also replace an obsolete 3-headed Costa wide belt sander with a new DMC 4-headed wide belt sander with floating bed in order to keep a current sanding line in operation. $170,000 equipment cost, 5 positions affected The facility will also replace a failing Moldow dust collector for the wood milling operations. This project equipment cost is expected to be $505,000 and affects the entire manufacturing facility. These proposed changes will affect much of the facility and the frontage of the facility. The following chart is a line by line item of the costs: MasterBrand C a 6 i n a t s, E n e. Equipment Additions CAPITAL AND EXPENSE ($000) Item M&E Expense 2003 Purchase sixteen (16) Kimball Cetra System workstations per drawing 42.6 42,6 Purchase eight (8) Dell Optiplex Pentium 4 computers with 19" monitors and software 13.2 13.2 Phone System Licenses from Exponets (C.S. phone network) ($1,000 per person) 8.0 8.0 Add 60,000 cubic feet per minute Torit Dust Collector and tie in equipment with Flamex Spark Detection and Extinguishment. Remove existing Moldow Collector 505.0 505.0 Replace Costa widebelt 3-headed sander with new DMC wide belt 4-headed sander. 170.0 170.0 Total kq pment Investment