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HomeMy Public PortalAbout029-2000- TAX ABATEMENT - F & H PARTNERS LLC - NEW MANUFACTORINAMENDED ORDINANCE NO. 29-2000 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: 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 - 5 YEARS F & H Partners New Jobs: 8 Jobs Retained: 0 Estimated New Value: $530,000.00 Dated: April 1, 2000 REAL ESTATE - 5 YEARS F & H Partners New Jobs: 8 Jobs Retained: 0 Estimated New Value: $13 8,000.00 Dated: April 1, 2000 I Passed and adopted this t� day o 2000, by the Common Council of the City of Richmond, Indiana. ATVST, iN \ �tZ�ity Clerk (Norm chroeder) PRESENTED to the Mayor of the City of Richmond, Indiana, thi day 2000, at 9.00 a.m.. C ty Clerk le, Dennis Andrews, Ma 2000, at 9:05 a.m. *amm STATEMENT OF BENEFITS RECEIVED SUM ftm �msa-t�� r*StM8 ►acfT=Co .tsar -': `:' 200�0 FORM VSTRUC77ONS. . This statement must be submitted to the bodydesk-PIReM the e1=09lic revdraztithis slara t emon area prior to the ptrhtic trearirrg 9 the desiativ n� body requires irr mavan from the applicant in making its derision about whether to designate air Economic Aevtt &zdon Area. Otherwise ent mast be sttbrrur, to the designating body BEFORE a person installs the new manufacturing equipment. or BEFORE the redevelopment ar rehabWta W of nW property which the person wishes to dafm a deduction. A statement of benefits is not required ff the area was desWrared an EFLa pfiw to Jrdy 1, 1987 aria project" was planned and commrtod to by the applicant and approved by the dimminai 9 bodl. Prior to that date. "Projects' planned or committed to a July 1. 1987 and areas designated alter Juiy 1, 1987 re4wre a STATEWEN-r0Fs 9VERM (lC &-1.1.121) t Approval of the designating body (City Caur=4 Town Board, County Courrj er_l must be obt afted prior to initrafion of the redeveb;welt or rehabdMir or prior to installatian of the new manWacwnfly equipment: BEFORE a dedurtiw may be approved. 3 To obtain a deduction, Farm 322 FAA. Real Estate lmprav+ements and / or Fomr 322 ERA / PP, New Madrfnery, must be filed with the cotrrrty auditor. 6' respect to real pmpeny, Form 3E2 EAA must be filed by the later of: (1) May 10: or (2) thirty (30) days after a notice of inMmW6 to real property assessor is recetved from the township assessor. Form 322 ERA / PP must be filed between March land May 15 of the assessment year in winch new mane truing equipment becomes assessable, uniess a filing extension has beery ob=ed A person who obtams a ft7Fng extension must No the form berw March 1 and June 14 of that year. t. Pmpeny owners whose Staterrrerrt of Benefits was approved after July 1, 1991 must submit Farm CF - 1 annually to show conoiance with the Statemer 8eneiit E« •Nil- TAXPAYER INFORMATION Name of taxpayer F & H Partners, L.L.C. Address of taxpayer (street and number, city, state and ZP code) P.O. Box 2554 Richmond IN 47374 Name of txttiact person Jeff Hanna Name of designating bony Richmond Common Council. Loon at property Corrrrty 915 Commerce Road Wayne Description of real pmpwW improvements and / or new r WnAacx =9 equipment to be Fkccpl ed (rue sddb sheetsrfnecesmy) To construct an 8,300 Sq. Ft. building to house a bakery in 5,000 Sq. Ft. of building and an• office in remainder of space. Current number I Salaries Number retained ►siastes -0- -0-- 1 -0- -0- NOTE Pumuantto IC tri.Z-12Z-5.t (0) (2) the CWr of the property is cardkkmdai. _ iS-7 Ate Vid" Current vatuea Plus estimated vaiues of proposed moiect n. non Less values of any prcnem being replaced - - Not estimated values uttorr crmaomoon of prpjed 5 3 U U U U Tetepnone Hamner (765) 966-7653 ResoiWon min er Taxing dis♦tiet riot Estimated starting date 4/00 Estimated complMn date 7/00 Number additional Salaries 8 1 $8.50/hr Assesmd Valm I b that the reareserrtatian$ in tms statement are trite. ,� day.yearl of z.u:nonr-w r2mmsentattve 71Date (I MOM,. i dent We have reviewed our prior actions relating to the designation or :-,-,s economic revitalization area and find that the applicant meets thi general standards adopted in the resolution previously approved by this body. Said resolution. passed under IC 6-1.1-121-ES, prc vides for the following limitations as authorized under IC 6-1.1-1 "C." -2. A. The designated area has been limited to a period of time not to exceed calendar years ' (see below). The date thi. 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 Q No 2- Installation of new manufacwring equipment; ❑ Yes Q No 3. Residentially distressed areas M Yes Q No C. The amount of deduction applicable far new manufacturing equipment installed and first claimed eligible for deduction after July 1987, is limited to $ cost with an assessed value of 5 D. The amount of deduction applicable to redevelopment or rehabilitation in an area designated after September 1, 1988 is limited cost with an assessed value of $ E. Other limitations or conditions (sple F The deduction for new manufacturing equipment installed and first claimed eligible for deduction after July 1, 1991 is allowed fo: L� 5 years © 10 years Also we have reviewed thainformation contained in the statement of benefits and find that the estimates and expectations are reasor. able and have date that the jftftyot benefits is sufficient to justify the deduction described above. lApp,0 ea: (srgnarur an ri! aurRanzea memoe relepnone numoer Date signea (morrm. day, year) --- A st 1]esignatea 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 tim 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 belov. Year of Fine (5) Year Deduction Percentage Ten (10) Year Percentage 1st 100% 100% 2nd 95Yo 95% 3rd M 900/0 4th { 65% 850/0 5th j 500/0 80% Sth I I 70% 7th { I 550/0 Sth 40% 9th 30% loth f 250/6 I Year of Three (3) Year Six (6) Year I Ten (10) Yea: Deduction Deduction Dedull"', becluctior 1st 1001yo 100Yo 1000% 2nd ISM 850/6 95% 3rd I 339'o I fib% 60% 4th ( 50% 65% 5th I 340/6 50Y6 6th I 170/6 40% 7th I 300/0 sth I 20% 9th 100/0 1oth I 1 5% MEMO Department of Finance and Purchasing TO: Steve Rabe FROM: Tony Foster II DATE: May 4, 2000 RE: Tax Abatement The following Statement of Benefits arrived today. Please draft an ordinance so it can be included on the agenda for the next Common Council Meeting. Please do not hesitate to contact me if you have any questions. Thank you! F & H Partners L.L.C. n .R.i .hmono IN 4 7 *7- -.. 68 Total Costs for 915 Commerce Road Not included in Builder's Proposal Land Values Construction Interest Professional Fees, survey, appraisal, legal Landscaping Miscellaneous Expenses Total Additional Costs Building Costs $ 30,000 19,500 4,000 7,500 10,o�Q $ 71,000 Grand Total $5309000 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 $ 2. Average hourly wage for projected new positions $ 7, 0 3. Average hourly health insurance benefit $ The length of the abatement you are requesting (A 3, 6 or 10 year abatement can be requested for real estate and a 5 or can be requested for manufacturing.) DEFINITIONS d Q ! T4EY/L Ut1 10 year abatement '' 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 p7 eligible employee divided by 2080 hours. �9� f�z'� iID —oo (Authorized Signature and Title) (Date) APR-25-00 07:03 7EL: P:BE Salaries Expense M'hc founder of Floward's Rose City Chcesecake Company, Howard Evans, will receive a salary of$27,000 in year 1, $29,700 in year 7, and $32,670 in year 3. Payroll Expense Howard's Rose City Chccsecaka Company intends to initially hire two full-time employee at $7.67 per hour. The initial total cast of employing two people at this rate for the first year is $2,460lmonth. Additional manpower increases w ill be dependent upon production requirements. l lowever, reality may dKtate a revised approach in which only one ex2grienWA employee may he hired. As the business ramps up during the following six months, an additional entry-level employee would be hired teased upon production requirements. The unique nature of the eulnpally makes art accurate forecast difficult. A third employee may well be needed in the third yew. Management Vision .Management desires to position itself fur growth and established that goal by incorporation action to adopt the work Company in its new name. The action elevates the stature of the fledgling business and necessitates the treed for continual ullprovcment in busincm xkills. The desire for wrltinuing improvement and consistent quality of product and service as a company was the driving Force to achieve 1'.50 9002 Certification_ 11ie dcx;urncatcd quality system will tv a living entity which will call for input from all Ievels as the company grows over time. The reliance upon the expertise ofemployees mc:clgnizes the importance of employees as the company's must important asset. The: strength of this asset will become the foundation upon wilich the company's growth will be bayed. Higher Production initially, the production output will be small, :32 cakes per hour. This is only the beginning, Management wants try see; growth in assets and Iroduction. It is the goal of management to we produetinn increase to 480 cakes per hour by year 2002 with two shifts and upwards of 2,000 to 3,000 cakes per hour by year 2007. In order to produce that kind of product volume. it is estimated that the company must grow from 5.3001sq It to cvct►tually occupy a tacility of perhaps 40,000IN fl on 3 acres with improved equipment. 3,000 cakes per hour may require, in part, raw ingredients in the amounts of nearly 4 million pounds of cheese. 50,000 pounds of eggs, 250,000 pounds of butter and 13,iltltl pounds of vanilla just for the basic cheesecakes in at year's worth of production, Production would be supported with a workforce of perhaps at least 30 employees aroalnd the year 2007. The rack ovens used in start-up will bt: replaced with tunnel ovens for higher capacity output. The rack ovens will he retained for to handle short -run cake varleties and spvc jai customer order-s_ Tile somi-automatic cake slicer will be replaced with a team of fully automatic cake slicers linked to the prudllction process with conveyor systems. The overall production goal ptaces the company in a facility which is state-of-the-art with high -volume baking and freezing capacity - a facility which will enhance the company's position through continual advancement and improvement in output, quality, vnricty Ord manufacturing productivity- APR-ES-00 EM 03 Rose City Cheesecake Company F A C s To. Jeff Hanna Of First Rlchmmid Realty Fax: 939-WO2 pages: 2, including this cover sheet, Date: Aprd 25, 2000 M TEL: P:01 Howard's Rose City Cheesecake Company operations Forecast Monthly Personnel cost estimate, aw included hi the following table! Personnel Plan I'ersolmd 200R 2001 2002 Manager $27,000 $29,700 $32,670 Bakal $14,769 $15,016 $15,460 Baker. $14,768 $151016 $15,460 Other $0 $0 $0 Total Payroll $56,768 $59,732 $63.590 From the &sk of... Howard Evvu 2242 Mimwrnan Rd %chstw ld, IN47374 2242 Minnemen Richmond, IN 47374 Ph. (765) 966-9431 DISPOSITION OF ORDINANCE NO. AZ 2000 RESOLUTION NO. BY COMMON COUNCIL Ordinance No. - 2000 Elstro Lundy Wissel Sharp Welch Parker Combs Dickman Hutton Resolution No. Date Suspend rules 1st readin Second Moved to Second Second Engrossment Second e Re Date Passed L - I i_- _Q C)__ COMMITTEE ASSIGNMENTS Committee Date