HomeMy Public PortalAbout048-2003-Abatement - HOFFCO COMET INDUSTRIES - EQUIPMENTORDINANCE NO.48-2003
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.
S. 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
Hoffco/Comet Industries, Inc.
New Jobs: 0
Jobs Retained: 190
Estimated New Value: $2,059,939.00
Dated: May 30, 2003
Passed and adopted this day of 2003 by the Common Council of the City
of Richmond. Indiana.
President
ingrcheX
A
PRESENTED to the Mayor of the City
2003 at 9:00 a.m.
;ity Clerk
of Richmond, Indiana, this day of � ,
4No
City Clerk
roeder
a
APPROVED by me, Shelley D. Miller, Mayor of the City of Richmond, Indiana, this day
of , 2003 at 9:05 a.m.
A
City Clerk
Mayor
Sh ey D. Miller
STATEMENT OF BENEFITS FORM
State Form 27167 (R7112-01) RECEIVED MAY 3 0 2003 sB T
Prescribed by the Department of Local Government Finance
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/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, 1967 require a STATEMENT OF BENEFITS. (1C 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/or Form 322 ERA / PPME and/ or 322 ERA /PPR & DE, must be filed with the county
auditor. With respect to real property, Form 322 ERA must be filed by the later of (f) May 10, or (2) thirty (30) days alter 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 i 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 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
ofBenerits. (1C6-i.i-i2.i-5.6)
5. The schedules established underlC 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.
rno r,wfrdAc orr� lives nrtnr to .Iuly 7. 201)0 shall continue to apply to those statement of benefits riled before Juiy 1, 2000.
SECTIONs •
Name of taxpayer
HOFFCO/COMET INDUSTRIES, INC.
Address of taxpayer (street and number, city, state, ZIP code)
358 NW F STREET RICHMOND IN 47374
Name of contact person
Telephone number
GARY ANDERSON
(765)966-8161
LOCATIONSECTION 2 AND DESCRIPTION OF
PROPOSED
Name of designating body
Resolution number
COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
10-1984,11-1991
Location of property
IWAYNE
County
Taxing district
358 NW F STREET RICHMOND IN 47374
RICHMOND CORP
Description of real property improvements and i or new manufaetumg equipment and 1 or
ESTIMATED
research and development equipment (use additional sheets if necessary)
Start Date Completion Date
SEE ATTACHED
Real Estate
New Mfg Equipment
06/03/2003 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
190 6,650,980 190
a
61650, 980 aSECTION
4
ESTIMATED TOTAL COST AND VALUE
OF PROPOSED PROJECT
Research and Development
NOTE: Pursuant fo IC 6-1.1-12.1-5.1 (d) (2) the
Real Estate Improvements
Machinery
Equipment
COST of the property is confidential.
Cost
Assessed Value
Cost
Assessed Value
Cost
Assessed Value
Current values
4,804,465
1,239,760
Plus estimated values of proposed project
2, 059, 939
617,980
Less values of any property beng replaced
Net estimate values upon completion of project
6,864,404
1,857,740
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 certify that the representations in this statement are true.
Signature authorized represen live
Title Date signed (month, day, year)
I 513of 03
Form Se-1, page 1- Copyright 0 2003 DIS, Inc. ClienVLoc I OFFCD 03PPT
HOFFCOICOMET CAPITAL PLAN
DESCRIPTION of ITEM
COST
est.
Paint mixer
1,087
Spline --,-,b-roach & gage
4,012
Faster computer for
qr manufacturing
2,205
Yukiwa indexer & cable -.. .
31,000
.. . ... ............. ............... .. . ..... ..
---------
Sealed driver Salsbur .y ............................................................. . . . . . . . - ----------
10,000
- - - - -----------------
E 1
aq.i.neqEN._server - -------------------------------- - - ------------------------- ----- - -------- - -- - --
3,035
- - ---- - ----------------------------------
Ga es for tiller handlebars
.......... Gauges
- -- ---------------------- - -- - ------------ ------ --- ---- - -------------------------------------------------------- - --- - ---
3,900
Proceco washer, Data-Mvte, Air m Copressor, misc.
----------------- -
11,200
n.amom.e.ter. e s CoLLC
Dynamometer)
240,000
'm
Horizontal reciprocating saw__......_-------------------------------------------------------------------------
n
5,000
Manhole cover spacer
....................................................................................................... . ... . .. . ... - - --- - -
10,000
---------------------.----
Add correction to Horizontal Balancer
12,000
............. ................ I
-- - -------- ----------- ------------------------- - ------- -- ------------
CAD stations upgrade
..... .................... . .. .. ------- - - ------------------------------------
- - - ---- - --- --.1
2,000
Network connection to test facili�y
................................... ......... .. .............. .... .. ........ .. ......... .... . - --------- -----
. . ........ .......... 2,000
Hy ....draul.ic chassis tester - ----- - -------- ---------------- - - ----
_._._.............. . ....... . ..... . . --------
10,000
Custom bladders
6,000
...................... .................... . .. . ............. .... . ..... - ...... ........ -------- - ------------- . ....... . ....... ....... ....... ....... .. .......... .. ............ ........ .. .. . ..
Upgrade sandblasting system
Upgrade -
...
2,000
.W.......a....t..er..... .et ..c-u--t-te-r ------------------
-- - - - - -1---8----0----,--0----0---0
---
Testing equipment
8,000
Convert roller _oyno to electric ----------
10,000
-HYd.r.a..u.1-i.c.J.u-b.e -.b-e.-n-d-e.,rl.-,,,,,.,,,.,.,.,.I.I.I ........ 1-- .... .. . ..................... .... ...... .. .............. ............ .... .. .... ...... . .
60,000
-------------- --- - ------------
Upgrade tooling for tine assembly ............... .......... ........... .. ... ......... . . . ........ ................
- -- ----------------- ------------------- ---- .
�A-0-0..
....................... 1--
wash tank
25,000
------------------------
Upgrade o'fjm-initib - ----- - - --- - - --------------- ---- ----- ----------------------- -------------------------- ------ - -------- - ---- - - - - -
-- - -------------------------
--------
1 6,-0,-,-0,-
.. . ..........
Add test cell
4,000
................................................................................................................................
.Digitizer arm/software & com-P
38,000
New Vertical Milling
. ................ ------ I -- ----- - --------------------------- I --
-- -------------300,000
Dual tip for CMM
. . ... . . .. . . . . ................................... .......................................................... . . ............. . ... .......... --- ..... .. . ......
3,900
Faster changeover fixtures
--------------------------------- -- --- - ------ --- --- - -------- - - -------- --- - - ---- - - - - - -- --- ---------
--------------------------- 20,000
New Lathe W/Bar Fe W
2'-'1-'-'0-"","000
. . . . ....... . .... ................. ..................... ............................... .................. -.- ...... ... .....
High definition ..I��Ta burner
80,000
Machine to replace iron worker
15,000
Vet. 2 Plane c n -- -
70,000
....... .. .. ...... . - -------------- -- ------------------------------------ - ----------------------------------------------------------------------------------------- - --------- - --- - - - -
Instrumentation for testing
3,000.
,?Lqq,Eqssive dies for Press Room
50,000
Add'l Tooling For Tines - Press Room
......... . . ... ....................... ------------ -------- -
9,000
35ton Denison
15,000
- - ------------------------
,N_qyK_Equip .lor modification of existiqg_-
--- -
10,000
Elb grinder -..Pre lace
.............. ...... ------------- - ----------- - - - ------------------ - ---------------------------------------------------------------
50,000
60fon Press
25,000
Second Horz. Broach
35,000
Sp . ..D.r..i.l. .1/..Tap J..D....5d;v---e .................... . ...................... . ............... . ..
60,000
Straighteners/Coil Cradle 1 of 2
.Straighteners/Coil Cradle 2 of 2
,N-e-w,--,,
20,000
Tine Progressive Die
140,000
Small Mill W/Tool Change -
35,000
Related manufacturing_qqu �ipment of above jobs
200,000
2,059,939
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person: Gary Anderson
Hoffco/Comet: Industries, Inc.
358 N.W. F Street; Richmond, IN 47374
The information requested on this supplement to form SB-1 must be completed and submitted
along with your SB-I 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
$ 12.58
2. Average hourly wage for projected new positions $ N/A
3. Average hourly health insurance benefit $ 1.958
1. The length of the abatement you are requesting 10 Years
(A 1-10 year abatement may be requestedfor real estate improvements andmanufacturing facturing 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 — 10 or more years.
• the state(s) in. which the equipment is being brought into Indiana from if purchasing used
equipment
• the cost of each piece of equipment
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.
President 5/30/03
and Title) (Date)
DEC--06--02 1 1 : 4e FROM :CITY OF R I CHMOND FINANCE I D : 1 765 983 7212 PAGE 5/6
We have reviewed our prior actions relating to the designation of #his 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 10 6-1.1-12.1-2.5, pra-
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
S . The tyre of deduction that is allowed in the designated area is limited to:
I. Redevelopment or rehabilitation of real estate improvements ❑ Yes ❑ No
2. Installation of new manufacturing equipment; ❑ Yes ❑ N o
3. Installation of new research and development equipment, ❑ Yes ❑ N o
4. Residentially distressed areas Oyes O N O
C .The amount of deduction applicable for redevelopment or reFiabirtation 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 S 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 totardy of benefits is sufficient to justify the deduction described above.
Approved: (svgna nd title of aumoriz r)
Telephone number
Date signed fmonM, day, year)
ttes4ecl b
Designated body
r
" if the designatn ody limits the time period during which an area is an economic revit<7izaGon area, it does not limit the length of time
a taxpayer is e ' ed to receive a deduction to a number of years designated under IC 6-1.1-12.1-4 or 4.5