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HomeMy Public PortalAbout027-2000- TAX ABATEMENT - OVERLAND DEVELOPMENT CORPORATION - REORDINANCE NO.27-2000 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 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: 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 Overland Development Corporation New Jobs: 4 Jobs Retained: 21 Estimated New Value: $800,000.00 Dated: April 5, 2000 Passed and adopted this 15��ay of 2000, by the Common Council of the City of Richmond, Indiana. President ATTE o� , City Clerk (Norm Schroeder) PRESENTED to the Mayor of the City of Richmond, Indiana, this day of 2000, at 9:00 a.m. ' City Clerk (NormdSchroeder) AP ROVED by me, Dennis Andrews, Mayor of the City of Richm d, dia a, this 6 day of , 2000, at 9:05 a.m. A --ity Clerk Mayor 0�� �'4� STATEMENT OF BENEFITS '; State Form 27167 (R5111-M Form SB - 1 is prescribed by the State Board of Tax Commissioners, 1989 FORM SB-1 INSTRUCTIONS: 1. This statement must be submitted to the body designating the economic revitalization area prior to the public hearing if the designating body requires infomation from the applicant in making its decision about whether to designate an Economic ReWalizadan 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. "Projects" planned or committed to after July 1, 1987 and areas designated after July 1, 1987 require a STATEMENT OF BENEFITS. (lC 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to iniffadon 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, Fort 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. Fort 322 ERA /PP must be filed between March i and May 15 of the assessment yearin which new manufacturing equipment becomes assessable, unless a filing extension has been obtained. A person who obtains a filing extension must file the fort between March i 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) :::.....:............ ?zi??:i:?:ici=':i`r'>?''ir??:'rs'+:......:x:.:o:•ir':g.;;' <?fi?;+`:':`i'#''::ic;ii:c:iEi-y;:"i .... :.-...........................:..:.,-;;...............:....... �....T1'rXf�tTY:EFL:ai�t.=:flE�4�ll.L�'fk3�:.>::::::,•:::::::::::.:-;::r:::.;::-,:.: ;;;::;. �::..::.................�......:.....,:......::....:.. Name of taxpayer Overland Development Corporation ** Address of taxpayer (street and number; city, state and ZIP code) 3324 190th Street, fort Madison, Iowa 52627 Name d€ contact person Dan Enger Tee hoppe number �3p19) 372-1116 ........... .>:.,>::;.:<.. Name of designating body Richmond Common Council Resolution number Location of property Lot 4 of Midwest industrial Park, Richmond, IN County Wayne Taxing districlCenter Twp City of Richmond Description of real property improvements and I or new manufacturing equipment (use ddifional sheets ifnec sary L�onstruction of a )32 door cross dock service center. ESTIMATED Start Cate Completion Date Real Estate 4/15/00 8/31/00 New Mfg E ui ment :z:::-:.>:<:s<>: Current number 21 Salaries 983,58 Number retained 21 Salaries 983,585 Number additional 4 Salaries 192.000 NOTE: Furs I _ ::::::....... Pursuant to G 6-1.1 12.1-5.1 d :..;.:.:.-:.:•::::.;:.;:.;:.:;:.::,:-:-:<.> :::.. s>::ti.....:... 2 the ::•.. >s_:;;:..:. .............:.... COST of the roe is confidential. ' nttal. `��':C��3<�'`<=#>'>#s's` Assessed Value ......�....................... :-:`:::::i:;:.:: �;<'ii:ii >::::: Assessed Value Current values 0 Plus estimated vaiues at proposed project 800,000 Net estimated values upon completion of project 1 800,000 Estimated solid waste converted (pounds) Other benefits: a Estimated hazardous waste converted (pounds) n/ a - - -- - _- _-- - - -- --- C:::.:.-:.-.{.:..`r;.`i:.?:::::S:.F C:i::.. ..............XXX ........ I hereby certify that the representations in this statement are true. Signat a authorized represe five Title Date signed (month, day, year C-1 "rm ac-1. page i - c:apyngni19 I aaa uension tntormanon systems, Ina ** Information provided in Section 3 and SB-1A relate to potential lessee. We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets general standards adopted in the resolution previously approved by this body. Said resolution. passed under IC 6-1.1-1 Z1-25, G 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 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: Q Yes Q No 2. Installation of new manufacturing equipment: Q Yes Q No 3. residentially distressed areas Q Yes Q'No C. The amount of deduction applicable for new manufacturing equipment installed and first claimed eligible for deduction after Jul- 1987, is limited to $ cost with an assessed value of $ C. The amount of deduction applicable to redevelopment or rehabilitation in an area designated after September 1, 1988 is limite $ 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 ' ❑ 5 years Q it) years Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reaS able and have determined that the totality of benefits is sufficient to justify the deduction described above. Appmvea: {sign rya a of autho memoer) Teleptione numoer Date signed (month, day, year) ( �� _a© Attested by: ©esignatea body VV " If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of t 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 fables Gel NEW MANUFACTURING EQUIPMENT — Year of Flm (5) Year I Tin (10) Year Deduction Page f Pereugs 1st 1000/0 10D°!a 2nd 950/0 95% 3rd 600/0 90% 4th I 650/a 85% 5th I 500/6 800% 6th I 70% 7th 55% 8th 40% 9th 30%a 1 Dth f I 25% -•- -. a; Year of Three (3) Year Deduction Deduction 9x (6) Year Deduction I Ten (10) Y ! 0eductic 1st 100% 1000/0 1000/0 2nd 66% 85% 950/0 3rd 330/a Wiyo 80% 4th 50% 65% 51h 34% 50% 6th 17% 40% 7th 300/0 8th 20%O 91h 100/0 10th f 5% Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name and Address: The information requested on this supplement to form SBA must be completed and submitted along with your SBA 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 $ 18.68 * 2. Average hourly wage for projected new positions $ 14.75 3. Average hourly health insurance benefit $ 7.64 (all benefits) DEFINITIONS 2.38 (health ins. only) 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. Z/ - 1 4) (Authorized Signature and X� (Date) * Average of regular full—time driver/sales representatives DISPOSITION OF ORDINANCE NO. 6X Z 2000 RESOLUTION NO. L Ordinance No. a', 1 - 2000 Elstro I Lundy Wissel Sharp I Welch Parker I Combs Dickman Hutton Resolution No. Date rco d rules 1 st Moved to Second R Second Second 3rd readin Second Passage Rejection Date Passed ✓ 5 - VD COMMITTEE ASSIGNMENTS Committee Date