HomeMy Public PortalAbout042-2001- ABATEMENT - FOCUS THREE LLC - REAL ESTATEORDINANCE NO.42-2001
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 pursuant to Indiana law for either a three (3), six (6) or ten (10) year
period from the assessed value, and
WHEREAS, an owner of new manufacturing equipment is entitled to deductions pursuant to
Indiana law for either a 5 year or 10 year period from the assessed value of new
manufacturing equipment, 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:
I . 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:
REAL ESTATE - 10 YEARS
-Focus Three, LLC
New Jobs: 10-20 * Jobs Retained: 30
Estimated New Value: $3,000,000.00
Dated: June 12, 2001
Passed and adopted this _;S�j day of 2001, by the Common Council of the City
of Richmond, Indiana.
'&"' President
(Karl Sharp)
ATT ST C'ty Clerk
(Norma Schroeder)
PRESENTED to the Mayor of the City of Richmond, Indiana, thisday of
2001, at 9:00 a.m.
City Clerk
(Norr a Schroeder)
PR ED by me, Shelley D. Miller, Mayor of the City of Richmond, Indiana, this ]�day
of , 2001, at 9:05 a.m.
Mayor
(Shelle . Miller)
A S sLLCityClerk
(Norm Schroeder)
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STATEMENT OF BENEFITS
4,. State Form 27167 (R6 / 4-00)
Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989
'nib
RECEIVED
Tim 122001
FORM
INSTRUCTIONS:
1. This statement must be submitted to the body designating the economic revitilizatfon 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, 1967require 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,
orprior 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 /PPMEand /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., (1) May 10; or (2) thirty (30) days aftera 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 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. (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 (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, 2000.
SECTION•' + •
Name of taxpayer
Focus Three, 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
ITelephone number
Paul W. Lingle
(765 )962-1489 x305
SECTIONr r AND DESCRIPTION OF ^••• ■ PROJECT
Name of designating body
Resolution number
Richmond Common Council
11-1991
Locaflon of property Richmond, ., Indiana
County
'Taxing district
Lot #6 Midwest Industrial Park, Industries Road,
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 Estate7/1/01
2
130,000 square foot new manufacturing, packaging,
New Mfg Equipment
------ -
-----
warehouse facility
R & DE
SECTIONOF • AND SALARIES AS RESULT
OF •r•• PROJECT
Current number Salaries Number retained Salaries
Number additional Salaries
30 8.25 - 16.50 1 30 8.25
- 18.00 10-20 * 18.25 - 11.00
I
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED
PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the Real Estate Improvements
Machinery Research and Development
COST of the property is confidential.
Equipment
Cost
Assessed Value Cost
Assessed Value
Cost Assessed Value
Current values
196,000
Plus estimated values of proposed project
Less values of any property being replaced
Net estimated values upon completion of project
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
SECTION+ •.CERTIFICATION
ereb 'certify that the representations in this statement are true.
Signattke of aut zed representat' a
Title
Date signed (month, day, year)
Member
06/12/01
Paul W. Lingle , v
e have reviewecFour prior actions relating to the designation ot tnis economic revitalization area and tinda e 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 IC 6-1.1-12.1-2.
A. The designated area has been limited to a period of time not to exceed calendar ye*Etbelow). 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 0 No
2. Installation of new manufacturing equipment: Yes o No
3. Installation of new research and development equipment; n Yes 0 No
4. Residentially distressed areas o Yes A No
C. The amount of deduction appicable for redevelopment or rehabilitation is limited to $ cost with an assessed
value of $
D. The amount of deduction appicable to new manufacturing equipment is limited to $ cost with an assessed
value of $
E. The amount of deduction appicable to new reasearch and development equipment is limited to $ cost with
an assessed value of $
F, other limitatinos 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: (signa re and title of authorized member)
Telphone number
Date signed (month, day, year)
U_Q_�
Designated body
( )
I JTIAN
* 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 SBA, page 2 - Copyright 0 2001 Decision Information Systems, Inc.
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name and Address:
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 $ 9.50
2. Average hourly wage for projected new positions $ 8.50
3. Average hourly health insurance benefit
1.20
The length of the abatement you are requesting 10 years
(A 1-1 D year abatement may be requested for real estate improvements and manufacturing equipment.)
If purchasing equipment, please state the projected useful life.
If purchasing equipment, please state whether the equipment is new or used.
If purchasing used equipment, list the state in which it is being
brought into Indiana from.
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
membe Please prese9t in the form of an hourly rate computed using the annual cost per
ek lee loyee did by 2080 hours.
Signature
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Arc �$
O'4 - itltiliY.L Oups• y
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Daniel Stewart
Executive Ditrctor
W-L- Rodenbetg
President
Mary Ann Walton
Vice President
Don Cates
Treasurer
Cathleen Shepard
Secreian
Bob Baker
Walt Chidester
Ronda Clark
Sharon Collier
`le Cookman
Nancy Culp
Russ Dawson
Lynn Day
Ed Flynn
Jim McCormick
Jim Miller
Bob Rosa
Green Acres, Inc.
P.O. Box 1252 Phone: 765.966.0502
Richmond, IN 47375 Fax: 765-962-3179
www.gacenter.org
June 1, 2001
To Whom It May Concern:
For the past six years, Delta Music has given us the opportunity to promote their
Music Business through our mailing services.
G/A Mailings -Pius is a mailing service operating out of Green Acres Center, Inc.
The contracts we fulfill for Delta Music have given people with disabilities, who
we provide services, the opportunity to work and earn a salary which in turn
enhances their lives within the community.
One year ago, the CEO from Delta came to Indiana to meet with me. At that
time, he told me that he had promotional tee shirts in his warehouse and asked if
our consumers would like to have them. We had an event planned within the next
few weeks, we gave everyone a tee shirt and they were delighted.
I have had an excellent working relationship with Delta Music over the past six
years and I am Iooking forward to future contracts.
Jb-'an Webber
Mailroom Coordinator
iolo
Affiliated with Wbitewater Valley United Way
Supported by Wayne County Foundation
ECONOMIC
DEVELOPMENT
CORPORATION
of 4i apie Coiiniy, Indiana
June 4, 2001
The Honorable Shelley Miller
Mayor
City of Richmond
50 North 5th Street
Richmond, IN 47374
Dear Mayor Miller:
Last month, the EDC Board of Directors accepted the enclosed purchase agreement from Rhett
Baumgartner and Paul Lingle for Site 96 in the Midwest Industrial Paris. In recent days, we also learned
that they have signed a lease with Delta Entertainment, the proposed tenant of the building they
intend to construct. As you will note from the enclosed Ietter, Delta Entertainment plans to move from
their current space in the Sanyo building and increase employment. Our Board has also approved Delta
Entertainment as a tenant.
It is the recommendation of the EDC Board of Directors that the Richmond Board of Public Works
accept this offer and approve Delta Entertainment as a tenant at your upcoming meeting on June 7. If
you have any questions on this matter, please let me know.
Thank you in advance for your consideration of this proposal.
Sincerely,
James N. Hizer
President & CEO
cc: Bob Goodwin
Rhett Baumgartner
Bob Bever
P.O. Box 1919 • RICHMOND, INDIANA 47375 • 765-983•GROW (4769) • 800-410-4769 • FAx 765-966-8956
E-mail: info@edcwc.com http://www.richmond-in.com
Richmond -Wayne County Chamber of Commerce
33 South 7th Street — Suite 2 • Richmond. Indiana 47374
Phone: 765/962-151 1 • Fax: 765/966-0882
httpa/ww��.r« chambecorg
June 6, 2001
Mr. Robert Goodwin
Board of Public Works
City of Richmond
50 S. Main Street
Richmond, IN 47374
Dear Mr. Goodwin:
I am writing to ask that the Board of Public Works support the sale of property in the
Midwest Industrial Park for the expansion of Delta Entertainment Corporation in our
community. The Midwest Industrial Park was built to provide opportunities for new
investment and job creation for the citizens of Richmond and Wayne County.
The description that I have seen of the Delta Entertainment project fits these criteria. It
is exciting that a company with more than 10 years of history in our community has the
potential to expand its operations to include manufacturing in a field that has high tech
potential. It is also exciting that this is a company with international affiliations and that
Richmond represents a portion of its US operations.
A substantial percentage of our success in economic development will depend upon
providing expansion opportunities for companies that already exist, have made an
investment and continue to hire our citizens. We can ill afford to turn these valuable
investors away.
Please approve the sale of the property that will allow for this expansion.
Sincerely,
l �
Debora K. Butterfield
President & CEO
ta
DELTA ENTERTAINMENT
1663 Sawtelie Blvd.
LDS Angeles. CA 90025-3198
310.268.1205
310.268.1279 FAX
www.deltamusic.com
James N. Hizer, President & CEO May, 31 S`
Economic Development Corporation of Wayne County
500 Soutli A Street, Suite 200
P. O. Box 1919
Richmond, IN 47375
Mr. Hizer:
At your request we have prepared some general information about Delta Entertainment
Corporation and specific information regarding our history in Richmond and the exciting new
opportunities developing for Delta Entertainment.
General Information:
Delta Entertainment Corporation is the US component of the Delta Music family of companies,
which includes Delta Music GmbH in Germany, Delta Music PLC in the United Kingdom and
numerous affiliates in Latin America, Asia, and Australia. Delta Music was established in
Germany in 1972. Delta's own labels include LaserLight, Capriccio, Delta, Exclusive and
others. In addition, Delta distributes product under the RCA Camden, Reader's Digest Music
and Time -Life imprints.
Delta Entertainment has remained at the forefront of the entertainment industry from its days as a
pioneer in compact discs through the introduction of multiple unit marketing, always striving to
produce the highest quality recordings using the latest technology. This approach allows fans of
the major orchestras in the world and dozens of leading Popular, Country, Jazz and Blues artists
to now hear their performances as they were meant to be heard.
Delta Entertainment has aggressively entered the video market with VHS and DVD releases of
Live Concerts, Classic Films and Television Programs, Incisive Documentaries, Biographies and
Children's Titles.
Delta Entertainment Corporation, located with its headquarters in Los Angeles, California, has
currently 45+ employees and 10+ employees in management positions at this location.
Delta Entertainment's Distribution Center is located in Richmond, Indiana. From this location
we serve hundreds of customers worldwide. Our US customers include: Meijer, Best Buy, BYs,
Blockbuster Entertainment, Circuit City, Costco, Sam's Club, Wal-Mart, Wherehouse
Entertainment, Virgin Megastores, Tower Records, Trans World Entertainment, Ross Stores,
Hastings Books and Music, etc.
Delta Entertainment's Distribution Center currently employs 30 full time employees including 5
positions in management. Additionally, up to 70 people are hired as temporaries during our peak
operating seasons.
History in Richmond:
Delta Entertainment has demonstrated strong consistent growth of permanent jobs in the
Richmond area since locating here in 1990. Job growth and expansion over the last eleven years
include:
Year Full Time Employees
1990
3
1991
4
1992
5
1993
5
1994
6
1995
7
1996
8
1997
10
1998
12
1999
20
2000
30
Current
30
Products and Services
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Packaging & Distribution
Currently, wages and benefits at Delta Entertainment's Distribution Center range from -$8.25 per
hour to $16.50 per hour with full medical and dental benefits after three months of employment.
After one year of employment, Delta Entertainment offers participation in a 401 K retirement
plan and five days paid vacation in addition to ten paid holidays. Manager / Supervisory
positions are salaried positions that range from $30,000 to $70,000 annually. As Delta
Entertainment continues to expand and grow, annual pay increases of 5% to 8% are anticipated.
Delta Entertainment's Distribution Center is currently located in the Sanyo facility at 1767
Sheridan Street, Richmond Indiana. Delta Entertainment is operating under a short-term lease
agreement that expires at the end of February 2002. The Sanyo facility was constructed in 1937
and has undergone multiple renovations over the last sixty-four years.
The growth and expansion of Delta Entertainment Corporation and the competitive business
environment that our company operates within now requires that our facility provide certain
amenities only found in new state-of-the-art facilities. Such features as: high ceiling heights;
high efficiency heating and cooling; increased ventilation and air -make units in warehouse and
manufacturing areas; sprinkler and fire protection suitable for today's rack storage and high
stacking heights; improved lighting; better insulation; etc. are all items incorporated into
today's newest facilities.
After much deliberation, Delta Entertainment has concluded that upon the expiration of our
current lease agreement Delta Entertainment plans to relocate to a new facility.
Future Growth Within Our Opportunities;
Past operations of Delta Entertainment have consisted of the distributions of CD's and DVD's
produced outside the Richmond area. A new facility and the possible purchase of CD/DVD
pressing equipment will enable Delta Entertainment to develop new opportunities manufacturing
these products in the Richmond area.
Total employment reflecting job growth and expansion over the next few years is anticipated to
be:
Year
2001*
2002
2003
2004
2005
2006
Full Time Employees Products and Services
40
Packaging &Distribution
50 to 60
Manufacturing / Packaging & Distribution
60 to 70
Manufacturing / Packaging & Distribution
65 to 75
Manufacturing / Packaging & Distribution
75 to 80
Manufacturing / Packaging & Distribution
80 to 85
Manufacturing / Packaging & Distribution
(*end of year 2001 anticipates the relocation of Delta Entertainment into a new facility by
January 15, 2002)
Year Management Position (included above)
2002
5 to 10
2003
10 to
15
2004
15 to
20
2005
20 to
25
2006
25 to
30
Full time employees will be supplemented by up to 100 temporary positions.
130,000 SF New Facility:
Delta Entertainment must very quickly determine the location of our next Distribution Center.
The focus of our efforts have been in the Richmond area, specifically in Richmond's new
Midwest Industrial Park. If for some reason this cannot occur, Delta Entertainment will be
forced to expand our relocation efforts to other sites in Indiana, Ohio, or Kentucky. Timing is
absolutely critical in our determination of the location of our new Distribution Center as we
cannot afford an interruption of our packaging and distribution efforts.
If approved by the Economic Development Corporation and the City of Richmond for Lot 45 of
the Midwest Industrial Park, Delta Entertainment is prepared to enter into a lease agreement for a
new 130,000 square foot warehouse 1 production facility. This lease agreement will require
Delta Entertainment to sign a ten year commitment to operate this facility in Richmond Indiana.
Over three million dollars will be invested into the new facility. This figure excludes additional
money that will be spent on machinery and equipment. The structure, a state of the art pre -cast
concrete warehouse facility will be a welcomed addition to the 1-70 corridor and the
community's efforts in facilitating expansion and growth of its local industry and business.
The new facility will provide efficiencies not seen in our current location. Additionally, it is
anticipated that the morale of our current employees and efforts in new job recruitment will be
greatly enhanced.
A_dditionaI Economic Impact on Community:
Delta Entertainment Corporation has developed strong ties with the local business community
over the last ten years. Local vendors and suppliers include: Sanyo, Cinram, Inc., Innovative
Industries Inc., Woodruff Corporation, Recycling Center, Inc., Richmond Industrial Trucks,
Kimbrough Printing Service, Blue Flame of Richmond, Rosa's Office Supplies, McEwans Phone
Service, Eastgate EIectric Supply, Reynolds Plumbing, etc.
Temporary service companies such as Manpower of Richmond provide temporary employment
during Delta Entertainment's peak times of business. Each year as our business grows and more
full time jobs become available, these temporary employees often make the transition to full time
employment with full wage and benefit packages.
Additionally, Delta Entertainment has established a working relationship with Green Acres, Inc.
out sourcing specific non -critical services. This relationship has provided work thru Green Acres
for those individuals that are mentally and physically challenged helping these people become
productive members of our community..
Summary:
Delta Entertainment has been pleased with our decision to locate in Richmond eleven years ago.
It has been a community that we have been able to grow our business from 3 full time employees
to currently over 30 full time employees, shipping product throughout the world. It is our sincere
hope that the City of Richmond will accommodate our requests so that Delta Entertainment can
remain in the Richmond area and continue to grow and add to the employment base.
Thank you for your consideration.
Sincerel
Juergen
Senior Operations Manager
Delta Entertainment
_RESOLUTION
NO.
'Resolution No.
• - • _ - � f i
�_�_-_---ICI
- •
--__--�-
Date Passed 1— 2 - 0 l
COMMITTEE ASSIGNMENTS
Committee Date