HomeMy Public PortalAbout025-2002-Abatement - VANDOR CORPORATION - REAL ESTATEORDINANCE NO.25-2002
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.
0 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
Vandor Corporation and Focus One, LLC
New Jobs: 12-15 Jobs Retained: 67
Estimated New Value: $3,500,000.00
Dated: March 9, 2002
r
Passed and adopted this _k day o 2002 by the Common Council of the City
of Richmond, Indiana.
go, ,President
(Bruce Wissel)
LC), City Clerk
(No a Schroeder)
'L r
PRESENTED to the Mayor of the City of Richmond, Indiana, this day o ,
2002 at 9:00 a.m.
c� L��CityClerk
(No a Schroeder)
P-
OVED by me, Shelley D. Miller, Mayor of the City of Richmond, Indiana, this � day
t
, 2002 at 9:05 a.m.
Mayor
(Sh y D. Miller)
A S 4z City Clerk
(Norma Schroeder)
A STATEMENT OF BENEFITS
$tale Form 27167 (R614-00)
_ Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989
�tlib
INSTRUCTIONS:
FORM
SB-1
1. This statement must be submitted to the body designating the economic revililization 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, 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 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 properly, 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 / PPME and / or 322 ERA PPR & DE must be filed between March 1 and May 75 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 Statement
of Benefits. (IC6-1.1-12.1-5.6)
5. The schedules established under IC 6-1.1-12.1-4(d) and IC 6-1,1-12.1-4.6 (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.
s- a
Name of taxpayer
Vandor Corporation and Focus One, LLC
Address of taxpayer (street and number, city, state and ,ZIP code)
42 South 9th Street, Suite 300, Richmond, IN 47374
Name of contact person
Telephone number
Mark Harrington
(765 )966--7676, X226
SECTION 7-`LOCATION AND DESCRIPTIO40117 PROPOSED PROJECT
Name of designating body
Resolution number
Richmond Common Council
Location of property approximately 30 acres
County
Taxing district
Midwest Industrial Park, Richmond, Indiana
Wayne
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
Real Estate
4/15/02
12/1/02
New Manufacturing and
Warehouse facility
New Mfg Equipment
R&DE
s sFAOPLOYEESANW
OFPROPOSEDPROJECT
Current number Salaries Number retained Salaries
Number additional Salaries
67 $8.00 to $16.00 67 �$8.00
to !$16.00 12 -- 25 8.00 to $16.00
• -s
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (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
360,000
Plus estimated values of proposed project 3,500,000
Less values of any property being replaced
Net estimated values upon completion of project 3,860,000
�SEans WASTt CONVEIRTED AND OTHER eENEFits Mdmisw By
solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits -
TAXPAYER •
hereby certify that the representations In this statement are true.
Signature of authorized re resentative
Tile
Date signed (month, day, year)
3/9/02
Markk Harrington
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 (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 ❑ 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 sufficient to justify the deduction described above.
Approved: tune and t!t!e o uthorized member)
Telephone number
Date signed (month, day, year)
A ested
De71gnated body
�11V\
h
Yl"
* If the designating body limits the time period during which an area is an economic revitalization 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:
The information requested on this supplement to form SB-I 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 $ 9.55
2. Average hourly wage for projected new positions $ 8.50
3. Average hourly health insurance benefit $ 1.10
1. 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.)
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
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.
CY—'O 3 /'?/a
Title) (Date)
V/ANDOR
RPORATION
ENGINEERED PRODUCTS FROM COMMODITY MATERIALS
March 8, 2002
James N. Hizer, President & CEO
Economic Development Corporation of Wayne County
500 South A Street, Suite 200
PO Box 1919
Richmond, IN 47375
Mr. Hizer:
Vandor Corporation is a family owned business established in 1972 to manufacture
casket interior components. Every casket manufacturer and many distributors in
the United States purchase from Vandor.
Vandor is also responsible entirely or in part for creating numerous other
companies including Cardell Corporation (now owned by Molex), Elder Davis,
Inc. (now owned by The York Group), Elderlite Express, Fickenscher America and
The York Group. The company has numerous patents and trademarks, both
domestic and internationally recognized.
Vandor remains headquartered in Richmond, Indiana and employs sixty co-
workers at our current location and has recently added three sales associates
located in Illinois, Tennessee and Maryland.
In the current facility Vandor maintains four distinct yet cross -functional
departments; Thermoplastic Injection Molding, Casket Interior Components, Reel
Assembly and finally Real Estate Management. It is our plastics and reel assembly
departments that will require significant expansion.
Increased demand for our patented thermoplastic reel flanges and customer
demands for just -in -time delivery of assembled reels require us to pursue a new
manufacturing facility and remain in the Richmond area. Vandor prefers to re-
locate in the Midwest Industrial Park on a larger lot with rail access to
accommodate our long-term growth expectations.
1620 Rich Road Richmond, IN 47374-1435 (765) 966-7676 Fax (765) 966-7677 www.vandorcorp.com
Vandor is currently occupying 81,500 sq. ft. at 1620 Rich Road. Space is not well
suited for our manufacturing and warehousing needs. The space is not climate
controlled and causes significant problems in our injection molding processes.
Vandor's initial expansion consists of 80,000 sq. ft. of high bay climate controlled
manufacturing and warehousing space. Expanded operations will add
approximately twenty-five new manufacturing positions on multiple shifts by
2003.
Wages at our current location are between $8.00 and $16.00 plus performance
bonuses for full time positions with annual increases adjusted for inflation. All full
time coworkers enjoy health benefits, 401K, cafeteria plan, life insurance,
vacation and holiday pay.
Sincerely,
Gerald H. Davis
President
ECONOMIC
DEVELOPMENT
CORPORATION
of Mayne County, Indiana
Memorandum
Date : March 7, 2002
To : Richmond Common Council
From : James N. Hizer, CED`�
Subject: Focus One LLCIVandor Tax Abatement
We would encourage the Richmond Common Council to approve the Statement of
Benefits and tax abatement request from Focus One, LLC. Focus One, and their
proposed tenant, are collaborating on the development of an advanced manufacturing
facility in Richmond's Midwest Industrial Parr. Vandor will be creating up to 40 new
jobs with this project and these will be the kinds of jobs that our community must add to
our economic landscape.
Thank you in advance for your consideration.
P.O. BOX 1919 • RiCHMOND, INDIANA 47375.765-983-GROW (4769) • 900-410-4769 • FAx 765--966-8956
E-mail: info@edcwc.com http://www.richmond-in.com
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CHAMBER
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March 6, 2002
Richmond -Wayne County Chamber of Commerce
33 South 7th Street — Suite 2 • Richmond, Indiana 47374
Phone: 765/962-1511 • Fax: 765/966-0882
http:llwww.rwchamber.orcr
Mr. Bruce Wissel
2015 Reeveston Road
Richmond, IN 47374
Dear Bruce:
I am writing to ask that the council approve tax abatements for Vandor Corporation.
Vandor is going to relocate their business to a larger facility and it is important that they
remain in Wayne County. Vandor Corporation plans to build approximately 110,000
square feet building. If Vandor relocates in Wayne County the building would be in the
Midwest industrial Park.
Vandor has been a long standing business and a good corporate citizen. The management
of Vandor and related companies have great entrepreneurial approach and have been very
successful with innovative spin-off businesses. A portion of their business that is
growing significantly and has in part necessitated the need for the expansion is the plastic
reel flanges. The flanges are a unique innovation that is patented. Businesses with a
competitive advantage and a unique product are extremely important to the economic
viability of our community.
In closing on behalf of the Richmond -Wayne County Chamber of Commerce I
respectfully request that council approve without hesitation tax abatements for a new
building for the Vandor Corporation.
Sincerely,
Frank E. Mazzei
President & CEO
cc: Karl Sharp
RESOLUTION NO.
Date Passed - - n,-
COMMITTEE ASSIGNMENTS
Committee L' Date