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Home My Public Portal About049-2002-Abatement - RICHMOND BRICK & BLOCK - NEW MANUFACTURINGORDINANCE NO.49-2002 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, Z.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: NEW MANUFACTURING EQUIPMENT - 10 YEARS Richmond Brick & Block New .lobs: 14 Jobs Retained: 1 Estimated New Value: $1,200,000.00 Dated: May 20, 2002 C Passed and adopted this day f 2002 by the Common Council of the City of Richmond, Indiana. , President (Bruce Wissel) A ES Dew City Clerk (No a Schroeder) PRESENTED to the Mayor of the City of Richmond, Indiana, this day o , 2002 at 9.00 a.m. a City Clerk P VED by me, Shelley D. Miller, Mayor of the City of Richmond, Indiana, this day o , 2002 at 9:05 a.m. adj", Mayor (Shell . Miller) A R.%� a STATEMENT OF BENEFITS State Form 27167 (R6I4-00) • `' ' Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989 safe INSTRUCTIONS: j 1. 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 Fort 322 ERA /PPMEand /or322 ERA /PPR & DE, must be filed with the county auditor. With respect to real property, Form 322 ERA must be flied 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 f 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 rite the form between March f 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. (IC 6-1.1-12.1-5.6) 5. The schedules established under IC 6-1.1-12.1-4(d) and IC 6-1.1-12.1-4.5 (e) effective July 1, 2000 apply to any statement of benefits Sled 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 •- • Name of taxpay �lTv✓ei- Address of taxpayer (street and number, city, state and ZIP code) y73 7V Name of contact person ITelephone elf/ A4e ILOCATION number (l��) AND'DESCRIPTION OF PROPOSED PROJECT Name of design aii,,`�`�j� body �'�'ChMond 6/Ytrr►4,7 64wu` Resolution number Location of property 3 f / turd Aar I County W e- Taxing district Description of real property improvements and / or new manufacturing equipment and / or research and development equipment (use additional sheetq If ecessary) / / �i� � �p�trc ion, !►?eenv�aet'dr� �+t!%(t��, ESTIMATED Start Date Completion Date Real Estate .� /S w. >di, 26Q3 New Mfg Equipment ir(v aoo� %ilDc; ER &DE :--SECTION 3 ESTIMATE OF r . SALARIES AS RESULT OFPROPOSED'PROJECT Current number Salaries Number retained Salaries Number additional Salaries • N 4 %:'ESTIMATED'TOTAL NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the of the property Is confidential. COSTAND VALUE OF Real Estate Improvements '••• • PROJECT Machinery ResearWaFna m nt velopment EquiCOST Cost Assessed Value Cost Assessed Value Cost Assessed Value Current values Plus estimated values of proposed project Fit'J QDp Less values of any property being replaced - Not estimated values upon completion of project wo •CONVERTED -AND • •• Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: • • I hereby certify_that the representations in this statement are true. Sigma re f titho4edrsent 've - Title Date signed (month, day, year) We have reviewed our prior actions relating to the designation oft his economic revitalization area and find that the applicant meets the general standards ai oppted in... a resolution` reviously approved by this"body. Said resolution, passed under IC 6-1.1-12.1-2:5, pro- vides for the folk' in 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 ❑ 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; (s' nat m and ty17 of authorized tuber) Telephone number Date signed (month, day, year) Zoo rby: "si d 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: 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 $ 3 1. The length of the abatement you are requesting %p ci^s (A 1-10 year abatement may be requested for real estate improvements and manufacturing eqi pment.) 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 3- ''yeo-s • 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 malting 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. �Air �thodzed Signature and Title) (Date) Estimated Construction Costs ofRichmond Brick & Block Estimated Item Estimated Cost Current Asset Funds Req'd Building Costs Masonry Work $12,000 DWIRW Roofing Repair $20,000 DWIRW Insulation Repair $0,000 DWIRW Metal Doors & HW $2,000 DWIRW Plumbing (Restroom) $10,000 DWIRW Painting $10,000 DWIRW Totals $$1000 $0 $0 Equipment Costs Mixer $80,000 $80,000 $0 Block Machine $440,000 $440,000 Kiln Demo Work $35,000 $35,000 Kiln Construction $75,000 $75,000 Kiln Boiler $25,000 $25,000 $0 Splitter $40,000 $40,000 $0 Cuber $175,000 $175,000 Loaders $170,000 $20,000 $150,000 Plumbing $10,000 $10,000 Electrical $50,000 $50,000 Totals $1,100,000 $165,000 $935,000 Grand Totals $14166,000 $231,000 $935,000 ➢ Attached you will find a preliminary design shown on two drawings citing project number 496359 dated Jan. 24, 2002 from the Besser Company. We are extremely familiar with their equipment and feel they are on they provide equipment that is on the cutting edge of our industry. ➢ Note: DWIRW will be financing the improvements of the existing structure. That is not part of our current request. ➢ The closest proximity to a block producing location (other than WCP's in West Alex.) is Greenville, Ohio some 40 miles away. The next closest producers are Shelbyville, IN and Anderson, IN at more than 50 miles away respectively. The closest comparable adversary in both equipment and capabilities is located in southwest Indianapolis, over 70 miles from our location. DISPOSITION OF ORDINANCE NO. , -2002 RESOLUTION NO. BY COMMON COUNCIL Ordinance No. - 2002 Elstro Lund Wissel Sharp Welch Parker Combs Dickman Hutton Resolution No. Suspend rules 1st readi Second Moved to Second Read Second rossment Date Passed � - I 1- DQ-- COMMITTEE ASSIGNMENTS Committee Date