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HomeMy Public PortalAbout013-2000- TAX ABATEMENT - PURINA MILLS INC - NEW MANUFACTORINFORDINANCE NO. 13-2000 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: 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: NEW MANUFACTURING EQUIPMENT - 10 YEARS Purina Mills, Inc. New Jobs: 0 Jobs Retained: 48 Estimated New Value: $1,416,000.00 Dated: February 10, 2000 Passed and adopted this '5 day o 2000, b on Council of the City of Richmond, Indiana. President V A ST• p` City Clerk (No a Schroeder) PRESENTED to the Mayor of the City of Richmond, Indiana, this day o ZA14—&-Z'D 2000, at 9:00 a.m. City Clerk (No a Schroeder) R VE by me, Dennis Andrews, Mayor of the City of RichmAliana,s � ~ day 2000, at 9:05 a.m. r� AAe 1� City Clerk (No a Schroeder) AUG 29 2000 10:26 AM FR PURINA MILLS FINANCE768 4809 TO 917659837212 P.01/01 .� STATRAIiNT OF RFNEFIT5 t-vl�vt Forts M • I it pr=bW by me Surma Hass of T= C0nwiS6bt**% IM � c rvsrRvcTlQrls: .. • 7. This staternsrd must be submitted to the body dasignaiinq ibe ecx7rlomic fieW utfon Area Pdor to the PuNic haadng if the dedgmtlrty body mgdms info. nation from the applicant in r+takjV ris cro skw about whedwr to desfipmie an Economic RevilairastlanArea: C3ttterWisC" this s�titemerd ritrts: b8 StsbmitMd to Me deslgnatOg body BEFORE a parson installs the rrsw marlrl,Fdctrrring equipmsnr and / or rawer lr and development rpmerlt; or BEFORE the redavolopment of tghabt6lavon of fe RI proper{y fort++hkh the person wishm to dorm a daducQorr. PfOjeGS'Pterin?CB Or GDrAxnitt2 to a1ierJUty 1, 1987�rrc! weasdesigr6-md'afterft*1.7287requlreaSTATEMEKrOFEp+1EFITR. (1C6-7.Y-r2i) Z Appravaf of the desiglr ft body (City Coeedl, Town 9WIV. C=q Caul 4 etc j mu# bra obtained prior t0 iragation of the red pent or rr.•fisbrGtaGorr, orpncr to irulNlht5Dn 4d the new maru fhcicaing egtlipment and/orresearch and d0vej4pm&7t equipment; SEMRE a deduction aWbe apPrnv4�d. 3. To obt o a ded=dbo, FUmr 2W ERA. Real Fsts#M improvements and l ar-Ab m 320 ERA/PPME and/ar= erRAIPPR & 05, Wustbe f7ad vwiM the cormty a Wrtr. With rasped to real irapa % Fora[ = ERA muse be fffed by the raters . (7) achy 74.or (a) D (W) after a nalkc ofk=eRSe irf real pMPWW assosvmmt i~ mc-efvod from? Me fowasNp assaww- Farm? = ERA/ PPM and/or= ERA PM & £ must be filed befwmn Mareb Y and May ys of ft assas�nentyear its which new rnanufr3a:arring egcriprtront and/ores hand etevelopmrrd equipment becMey assessable, add= a Ong tdasiva bw been oDc7Jg8d A psrsoA who ob47ias a R1rng GoA nxrst � t7te ai?+m De[wea3r► Mandl Y and .ions 74. asf tllRt yr. 4. PropBny OrAA7r¢rs whose Sraldrrrerrr of t3erretit5 was approved aftcx.lana 30, 7991 mrtsisrrDmlt Four+ CF- ? annrrattyto show comp4etncra wr7h 8ie srsrernenr t)f8eire6�r, {lCfi-i.7-72Y•l5.6) S The �tea7ules esTgbfiShCtt under IC tl-!. Y-Y2 r,a(d) drtd 1G G; 7.7-r2 i-i.5 (e) 9ff8ctive Jvty 7, 2t?DO >rpPM m �Y Statement of beoatlts L7erf ort or alter J* 7. 2EJ4p_ The tobddulas 61104tive prior to July 1, 2000 shall Continue to apply to fhase smfement of benefits filed bcfor'a July Y, 2000. ,vame of t b*ayer Purina Mills, Inc. Address of taayer (weow andnumbra , dt6 stare and ZIP =do] 1401 South Hanley Road, S=, Louis, MO 63144 Name of CDr I= person: Ttkphane Aber Sherry 3- 3ell. (314 1 768-,4.441 flame of designating body Kasok4w numbw City of Richmond L.omfion 01 property Cwnty Ta q dshict 505 North Sth Strut:, Ril*moad IN 47374 Wayne 89030 nescriptlon of real property improven+ents and l or new manufactrrr" egrtipmentand I of ESilMATED tmxudh aril de"opment equimern (us- addttcrmisheem it nary) Mari Dwa Carnplefion Date Please see attached sheet. RewEsiate Nw 1Afg EqW nrem 311/00 I2 /31./00 R & DEw torrent rnrnt4er Sale,tas uumwrewned Salarsea l+tumberadd�lonai Sata:ies 48 1,433,67-1 Awamh 1it?IE Pwscrarit flo IC Cri,�-12.7-5 7 id) fz) n,e Real t ssrate tanprava inenrs machinery E cos-r of ttre Property is = Adential. CaSc A eSded Yalu Cosa A cried v4km Curt UAK,4 I VWUt Pkm e9ftwed values of proposed PM LAW values of any wooem being rcoaced W esfimmted vabaea tapon Completion of pr*lrt Esti nuw saaa waste cmvermd (wwds) Es*03Ud tbudaws w=9 cvrivw%d. (poexr M i hereby caM that ft re5 nWipns in this stamaC srvt are true. S"WIG Of 3tV ortzad rep a; 'i " 0= gg� (Mom. 1 7 jg t g� o0 ♦ J. 2000 CAPITAL PLAN , Ist QUARTER DESCRIPTION COST TYPE New Installations 7th floor modifications - dust control $22,010 Maint Extruder Grinding $100,000 Maint X Rehopper Midds bin $25,000 Maint X Replace West Extruder Control Panel $48,400 Safety X Replace Air Compressor with Blower on Extruder Bulk system $25,500 Quality X Reroute 13,800V lines to transformers $35,000 Safety X Dust Collection in Vac Pac Room $5,000 Maint X Redo hand stacking on South Pallefizer $10,000 Safety Liquid tank measuring systems $15,000 Profit X Stretch Wrapper $9,000 i Profit X Bin 41 repaired $20,000 Maint X TOTAL $314,970 2nd QUARTER DESCRIPTION -.COST TYPE Air conveyance -to Vac Pac $60,000 Profit X Blow system for North Extruder $152,700 Quality X Unloading pit modifications for cleanability $8,000 Quality Bottoms on liquid tanks and cement $152,330 Maint X Floor system for Building 3 $18,000 Maint X Heat Exchangers $50,000 Profit X TOTAL $441,030 3rd QUARTER DESCRIPTION COST TYPE Paper/Poly bag hanger $60,000 Profit X TOTAL $60,000 4th QUARTER DESCRIPTION COST TYPE North Extruder Dryer and Airlock $600,000 Profit X TOTAL $600,000 GRAND TOTAL $ ,416,000 Brent Blankinship 2000 Capital Plan.xls 3 � ' _ � � 5126100 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 ❑ Also we have review a formation cvnta din the statement of benefits and find that the estimates and expectations are reason able and have det i d at the totality of ben is is sufficient to justify the deduction described above. A proved: (signat a e of a rized member) Telephone number Date signed (month, day, year) C8 Atte a y: Desi ted 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 Namely: (see tables below) Year of Deduction REDEVEL OPMENT OR • OF •r•IMPROVEMENT ■ • .. • Three (3) Year Six (6) Year Deduction:.•.. Deduction Ten (1©) Year Deduction 1st 100% 100% 100% 2nd 66% 85% 95% 3rd 33% 66% 80% 4th 50% 65% 5th 34% 50% 6th 17% 40% 7th 30% 8th 20% 9th 10% 10th 5% eWWwRm8.=mms,.ao""M2 :W FEE-04-00 1 5 : 23 FROM :CITY OF R I CHMOND FINANCE Ill : 1 765 983 7212 Form SB-1A, City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name and Address: PAGE 4/4 eolo 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 S 2. Average hourly wage for projected new positions $ 3. Average hourly health insurance benefit ' The length of the abatement you are requesting 10 (A 3, 6 or 10 year abatement can be requested for zeal estate and a 5 or 10 year abatement can be requested for manufacturing.) 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 nurnber 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. (Authorized Signature and Title) (Date) FEB 04 '00 14428 17659837212 PAGE.84 DISPOSTION OF ORDINANCE NO, - 2WOW RESOLUTIO NO. - 2000 BY Common Council Ordinance No. 7T!F Elstro Lundv Missal Sharp Welch Parker Combs Dickman Hutton Engrossment DatePassed 0b COMMITTEE ASSIGNMENTS: Committee Date