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HomeMy Public PortalAbout004-2000- TAX ABATEMENT - SOUTHSIDE HEATING & AIR CONDITIONINGORDINANCE NO.4-2000 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: 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: REAL ESTATE — 10 YEARS Southside Heating & Air Conditioning Supply Division Maiden Heating, Inc. New Jobs: 2 Jobs Retained: 10 Estimated New Value: $179,000.00 Dated: December 21, 1999 Passed and adopted thisCILL day off (Iy 2000, by the Common Council of the City of Richmond, Indiana. FAA ATTE City Clerk (Norm chroeder) PRESENTED to the Mayor of the City of Richmond, Indiana, this � day of A , 2000, at 9:00 a.m. A .01 I:1 STATEMENT OF BENEFITS 3i State Form is prescribed (ribed by t fy ' Form SS - 1 is prescribed by the State Board of Tax Commissioners, 1989 tole FORM SB-1 INSTRUCTIONS: 1. This statement must be submitted to the body designating the economic revailization 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 Revitilization Area. Otherwise this statement must be submitted to the designating body BEFORE a person installs the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. A statement of benefits is not required if the area was designated an ERA prior to July 1, 1987 and the project" was planned and committed to by the applicant, and approved by the designating body, prior to that date. Projects" planned or committed to after July 1, 1987 and areas designated after July 1, 1987 require a STATEMENT OF BENEFITS. {tC 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, BEFORE a deduction may be approved. 3. To obtain a deduction, Form 322 ERA, Real Estate Improvements and / or Form 322 ERA/ PP, New Machinery, 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. Form 322 ERA / PP must be tiled between March I and May 15 of the assessment year in which new manufac- turing 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 July 1, 1991 must submit Form CF - I annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) SECTION•- • Name of taxpayer SOUTHSIDE HEATING & AIR CONDITIONING SUPPLY DIVISION M,AITLEN HEATING INC. Address of taxpayer (street and number, city, state and ZIP code) 1441 SOUTH 9th STREET, RICHMOND, INDIANA 47374 Name of contact person Telephone number JOHN MAITLEN, SR. (765) 935--5519 SECTIO• • AND DESCRIPTION OFPROPOSED. •-• Name of designating body Resolution number COMMON COUNCIL OF THE CITY OF RICHMOND, IN Location of property County Taxing district 1441 SOUTH 9tn STREET WAYNE RICHMOND Description of real property improvements and ! or new manufacturing equipment to be acquired (use additional sheets if necessary) Estimated starting date 12-22--99 SEE ATTACHED EXHIBIT A Estimated completion date 2-29-2000 NOTE: Pursuant to IC 6-1.1-12.1 5.1 (d) (2) the COST of the property is confidential. Cast ; , Assessed Value Cosh.; Assessed Value Current values 305,488 51,630 Plus estimated values of proposed project 179,000 30,250 Less values of any property being replaced — 0 — — 0 Net estimated values upon completion of project 484,488 81,880 SEE ATTACHED EXHIBIT C I hereby certify that the representations in this statement are true. Signature of authorized repre rotative . f7 A ITitle (month, day, year) PRESIDENT l-1 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 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 ❑ No 2. Installation of new manufacturing equipment; ❑ Yes ❑ No 3. Residentially distressed areas ❑ Yes © No C. The amount of deduction applicable for new manufacturing equipment installed and first claimed eligible for deduction after July 1, 1987, is limited to $ cost with an assessed value of $ D. The amount of deduction applicable to redevelopment or rehabilitation in an area designated after September 1, 1988 is limited to $ cost with an assessed value of $ E. Other limitations or conditions {specify) F. The deduction for new manufacturing equipment installed and first claimed eligible for deduction after July 1, 1991 is allowed for: ❑ 5 years ❑ 10 years 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: (signatur tit f authorized m er) Telephone number Date signed (month, day, year) Alt s by: Des' nated body If the designating b y 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 Namely: (see tables below) REDEVELOPMENTOR REHABILITA • • -• Year of Three (3) Year Six (6) Year Ten (10) Year Deduction ©eduction Deduction ©eduction 1 st 100% 100% 100% 2nd 66% 85% 95% 3rd 33% 66% 80% 4th 50% 65% Sth 34% 50% 6th 17% 40% 7th 30% 8th 20% 9th 10% 10th 5% DEG-07-SS 16:37 FROM=CITY OF RICHMOND FINANCE ID:1 76S 983 7212 PAGE 2/4 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 subn*ted 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 far existing employees 13.20 Z. Average hourly wage for projected new positions $ 9 .0 0 3. Average hourly health insurance benefit $ 2.10 The length of the abatement you are requesting 10 years (A 3, 6 or 10 year abatement can be requested for real estate and a 5 or 10 year abatement can be requested for manufacturing-) DEFINITIONS 1. Average hourly wage for existing employees: for your most receaat pay period please provide the average base wage per hour for all current full time, nor -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: Lase the same, definition of employees to be included as in number one above. 3. Average hourly health insurance benefit: Please provide the current r.0mpany paid health insurance benefits provided to hourly employees (as defined above) aDd family members. Please present in the form of an hourly rate computed using the annual cost per eliob7e employee divided by 2?$0 hours. PRESIDENT /9 4/ Signature and Title) (Date) EXHIBIT A DESCRIPTION OF REAL PROPERTY AND IMPROVEMENTS 8,500 Sq. Ft. addition to east side of existing building, consisting of 80' wide x 100' long x 16' eave on high side, pre-engineered steel building, designed for all required loads (Indiana U.B.C.). Addition also includes 20' x 25' dock structure. EXHIBIT B ESTIMATED STARTING DATE AND COMPLETION DATE OF PROJECT Contract between owner and general contractor was signed 10/4/1999, with construction to begin at general contractor's convenience and weather permitting. Estimated completion time is 90 —120 days: completion date will depend on the weather. Cost of building addition is $179,000. EXHIBIT C OTHER BENEFITS PROMISED BY THE TAXPAYER 1. Continued growth rate of between $75,000 and $100,000 in gross sales per year. 2. Continue increasing our inventory by$65,000 to $75,000 per year. 3. We estimate we will purchase an additional $75,000 for new or replacement equipment consisting of a larger updated computer system, new phone system, shelving, and fixtures for the building addition. 4. At the present time we employ 9 full-time and 1 part-time employees. We expect to add 2 full-time employees, or whatever is needed. Our employees are paid between $9 and $17.50 per hour, depending on their job position and qualifications_ We advance people within our organization when possible. ADDITIONAL COMMENTS Southside Heating Supply is a wholesale distributor of heating, air conditioning, and refrigeration parts and equipment. We are a division of Maitlen Heating Inc., and an Indiana Corporation. The corporation is 100% owned by the employees. After one year of service an employee is eligible for the profit sharing plan. Each employee receives an annual report of his or her value in the profit sharing plan, which is invested in company stock. We are the only locally owned business of our type in the Richmond area. The bulk of our sales are to mechanical type contractors, and maintenance departments of commercial, industrial, medical, educational, municipal, motels, apartment complexes, etc. We also sell to the same type customers in the surrounding counties. We are a niche type business, and it is necessary that we maintain a large inventory, with over 8,000 SKU's in stock. As technology changes we are required to keep adding to our inventory. We have confidence in Richmond and are willing to make our share of investment into the community. Any profits made by this business are not sent out of town, but are re -invested locally. This expansion will add to our tax base for both real estate and inventory tax. DISPOSTION OF ORDINANCE • rrr --- - - • • • rrr _-- Engrossment DatePassed 1 L_._�J 0-q COMMITTEE ASSIGNMENTS: Committee Date