HomeMy Public PortalAbout064-2012 - Tax Abatement - Perpetual Recycling Solutions LLC -ORDINANCE NO. 64-2012
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.
6. That the improvements to the real estate described in the SB-1 must be
completed within 24 months of the date the ordinance is signed by the
designating body.
NOW, THEREFORE, the Common Council of the City of Richmond, Indiana,
now makes the following findings:
l . 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.
6. That the improvements to the real estate described in the SB-1 must
be completed within 24 months of the date the ordinance is signed by
the designating body.
THEREFORE, be it ordained by the Common Council of the City of Richmond,
that the following property owner meets the requirements for property tax assessed
valuation deductions, as follows:
REAL ESTATE — 85%/10 YEARS
Perpetual Recycling Solutions, LLC
Jobs Retained: 0
Jobs Created: 60
Estimated New Value: $4,650,000.00
Dated: October 23, 2012
Passed and adopted this �_� day of , 2012, by the
Common Council of the City of Richmond, Indiana.
V
(Karen Chasteen, IAMC, MMC)
ali 791.", , President
fiffilip Matthew Qtunn)
ZoPRESENTED to the Mayor of the City of Richmond, Indiana, this ,� day of
oee-4 2012, at 9:00 a.m.
y-Clerk
(Karen Chasteen, IAMC, MMC)
APPROVED =SarahHutton, Mayor of the City of Richmond, Indiana, this
12, at 9:05 a.m.
Mayor
(Sarah L. Hutton)
ATT ST:01
,
(Karen Chasteen, AMC, MMC)
0—.-ron
STATEMENT OF BENEFITS
REAL ESTATE IMPROVEMENTS
State Form 51767 (R3 t 12-11)Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
]f� Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4)
❑ Eligible vacant building (IC 6-1.1-12.1-4.8)
20 13 PAY 20 14
FORM SB-1 I Real Property
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
information 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 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. (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,
BEFORE a deduction may be approved.
3. To obtain a deduction, application Form 322 ERA/RE or Form 322 ERA/VBA, Whichever is applicable, must be filed with the County Auditor by the later
of. (1) May 10, or (2) thirty (30) days after the notice of addition to assessed valuation or new assessment is mailed to the property owner at the address
shown on the records of the township assessor, if any, or the county assessor.
4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Foan CF-11Real Property annually to the application to
show compliance with the Statement of Benefits 11C 6-1.1-12.1-5.1(b) and IC 6-1.1-12.1-5.3Q)j
5. The schedules established under IC 6-1.1-12.1-4(d) for rehabilitated property and under IC 6-1.1-12.1-4.8(1) for vacant buildings apply to any statement
of benefits approved on or after July 1, 2000, unless an alternative deduction schedule is adopted by the designating body (IC 6-1.1-12.1-17). The
schedules effective prior to July 1, 2000, shatl continue to apply to a statement of benefits filed before July 1, 2000.
SECTiON 1 TAXPAYER INFORMATION
Name of taxpayer
Perpetual Recycling Solutions, Lt_C 10 year abatement requested under ordinance 76-2011
Address of taxpayer (number and street, city, state, and 21P code)
1561 Northwest 11th Street, Richmond, 1N 47374
Name of contact person Telephone number
1(312)
E-mail address
Carter Smith 402-4377
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number
Common Council of the City of Richmond, Indiana
76-2011
Location of property
County
DLGF taxing district number
1561 Northwest 11th Street, Richmond, Indiana
Wayne
29Richmond
Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary)
Estimated start date (month, day, year)
See attached description and anticipated costs to improve facility
01j01/2012
Estimated completion date (month, clay, year)
11/30/2012
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries ber retained Salaries Number additional Salaries
0.00 $0.00 $0.00 60.00 $2,20o,00oAo
T0700
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1.1-12.1-5.1 (d) (2) the COST of the property REAL ESTATE IMPROVEMENTS
is confidential. COST ASSESSED VALUE
Current values
2.380.200.00
Plus estimated values of proposed project
4.650.000.00
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•
I hereby certify that the representations in this statement are true.
Signature arized repress ativ
Tide
lit/�I'v'''�'�~'`
Date signed (month, day, year)
QUt7i. x aq A01�
Page 1 of 2
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, provides for the following limitations:
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. Residentially distressed areas ❑ Yes ❑ No
3. Occupancy of a vacant building ❑ Yes ❑ No
C. The amount of the deduction applicable is limited to $
D. Other limttations or conditions (specify)
E. The deduction is allowed for
years' (see below).
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
ppro v { fre dl l ofauf orizedmemberofdesrgnatingbody) Tale one number Date sig�nedY�rronth,d ar
h'tle of
If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is
entitled to receive a deducciion to a number of years designated under IC 5-1.12-12.1-4.
A. For residentially distressed areas, the deduction period may not exceed five (5) years.
S. For redevelopment and rehabilitation or real estate improvements:
1. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years.
2, if theEconomic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years.
C. For vacant buildings, the deduction period may not exceed two (2) years.
Page 2 of 2
Form SB-lA
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address &. Contact Person:�'�`
C4,ie.
The information requested on this supplement to form SB-1 trust 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 S
2. Average hourly wage for projected new positions S1 Z• �'
3. Average hourly health insurance benefit
1. The length of the abatement you are requesting ( t L✓s
(A 1-10 vear abarement mays he requested for real aware iarpru emems and manufacturing e - uipnrent.)
2. If purchasing equipment, {Tease attach a list that includes the following:
• brief description of each piece of equipment being purchased
• the projected useful life of each piece of equipment
• the state(s) in which the equipment is being brought into Indiana from if purchasing used
equipment
• the cost of each piece of equipment
• state if the machinery is being, purchased or leased
• if the machinery is being leased, provide information from the lease that explains which
party is responsible for paying the property taxes
3. if making real estate improvements, please provide a list that includes the following:
• brief description of the real estate improvement (new construction, rehab, expansion. etc.)
• size of the proposed real estate improvements
+ costs of the proposed real estate improvements
DEFINITIONS
1. Average hourly wage for existing employees: for your most recent pad period plow 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
farm of ' hourly rate computed using the annual cost per eligible employee divided by 2080 hours.
(Atuhon; ignature and 7 - - — (bate)
41-3-?4
Perpetual Recycling Solutions, LLC
1561 Northwest 11th Street
Richmond, IN 47374
To Members of Richmond City Council
Supplemental schedule to form SB-1/Real Property
Facility located at 1561 Northwest 11th Street, Richmond Indiana, will be rehabilitated to house a
manufacturing line that will sort, rinse and clean used bottles which will then be converted into food
grade clean PET flake for re -use in the food & beverage packaging industry.
Anticipated improvements include:
Concrete : additional concrete poured/leveled to hold the wastewater treatment system/water
cleaning filtration system: $250,000
Reinforcement of floor to hold large/heavy sorting equipment and boilers $ 200,000
Concrete trenches to move water to treatment system $ 150,000
Addition to facility to enclose wastewater treatment system $ 300,000
New sprinkler system to protect the building and equipment from fire $150,000
Improvements to store raw materials i.e. prepare "bale yard" where bales of used PET will be stored
until they can be processed $500,000
Upgrade plumbing to provide for enough force and volume to meet the heavy rinsing and washing
requirements of the process system $900,000
Upgrade and expand receiving and shipping docks, existing docks not sufficient to receive the volume of
material which we will be processing $500,000
Upgrade to facility electrical system to ensure sufficient power to all parts of the process $800,000
Upgrade HVAC system, existing system was old, energy inefficient, and did not provide sufficient
temperature control to optimally run our process $900,000
Total estimated values of proposed project $4,650,000
Perpetual Recycling Solutions, LLC
1561 Northwest 11thStreet
Richmond, IN 47374
October 23, 2012
Richmond City Council
Richmond City Building
50 North 51h Street
Richmond, IN 47374
Members of Richmond City Council:
On behalf of Perpetual Recycling Solutions, LLC we are requesting our real estate abatement application
for $4,650,000 be considered for the alternative deduction schedule in accordance with ordinance 76-
2011. We request 10 year 100% abatement with respect to our recent abatement application.
Perpetual will invest over $10,000,000 in Richmond Indiana in 2012 and beyond. We will hire in excess
of 50 employees with annual payroll approximating $2,000,000 which will equate to an average of
double the state minimum wage, all of whom will have access to major medical health insurance.
Please consider our application for 100% abatement for 10 years.
Perpetual Recycling Solutions, LLC
ORDINANCE NO. 76-2011.
A SPECIAL ORDINANCE ALLOWING AN ALTERNATIVE ABATEMENT
DEDUCTION SCHEDULE FOR PROPERTY OWNERS OBTAINING
DEDUCTIONS FROM ASSESSED VALUE OF CERTAIN PROPERTY WITHIN
AN ECONOMIC REVITALIZATION AREA
WIMEAS, pursuant to Indiana Law, I.C. 6-1.1-12.1 et. seq., the Common Council of
the City of Richmond, Indiana may find that a particular area within the city
is an Economic Revitalization Area which provides as an economic
development incentive certain property tax deductions for the
redevelopment or rehabilitation of real property or the installation of new
manufacturing equipment; and,
WHEREAS, the Common Council has previously adopted Resolution No. 10-1984
which designates certain areas in the city as Economic Revitalization Areas
and sets forth certain procedures for an owner to obtain certain deductions
therein; and
WHEREAS, Resolution No. 10-1984 has previously been amended to add other areas as
an ERA, making definition changes to the original ordinance, setting forth
the time periods in which a deduction is allowed; and establishing other
procedures for obtaining deductions (see Resolutions 2-1987; 11-1989, 11-
1991, 3-1996, Ordinances 72-1996, 90-1996, 113-1997, 19-2000, 29-
2006, 31-2007); and
WHEREAS, Indiana law has previously allowed the owner of real property and personal
property located within an economic revitalization area to request a
deduction over a one (1) to ten (10) year period and has previously
established the abatement deduction schedules for real property deductions
and personal property deductions; and
WHEREAS, Abatement deduction schedules for real property and personal property are
set forth and outlined by Indiana Law and the Common Council, as the
designating body, may approve the number of years any given deduction
applicant may take an approved deduction; and
N EREAS, As set forth in the above -referenced Resolutions and Ordinances, Common
Council, as the designating body, has previously determined the applicable
time period in each Special Ordinance approving a specific Statement of
Benefits; and
WHEREAS, Effective July 1, 20I1, Indiana Code (IC) 6-1.1-12.1-1 et seq. provides a
designating body flexibility to approve an alternative abatement deduction
schedule on either real estate and/or personal property to a business that is
established in, or relocating to an economic revitalization area and receives
a deduction; and
VJTIFAS, For purposes of this Ordinance, an alternative abatement deduction is
defined as the deduction amount established by the Common Council, and
said deduction amount may be applied annually provided that all
requirements of this Ordinance are met; and t
WHEREAS, For purposes of this Ordinance, an alternative abatement deduction .
schedule is defined as a deduction amount and time period, not to exceed
ten (10) years, established by the Common Council as permitted by Indiana
law; and
WHEREAS, Common Council desires to establish guidelines in accordance with Indiana
Code (IC) 6-1.1-12.1-17 that may permit an alternative abatement
deduction schedule for businesses expanding or relocating in economic
revitalization areas in Richmond.
NOW, 'THEREFORE, BE IT ORDAINED by the Common Council of the City of
Richmond, Indiana, that the Alternative Abatement Deduction Schedule Guidelines are set
forth as follows:
1. Richmond Common Council may utilize an alternative abatement deduction
schedule of a 75% deduction for 10 years if all of the following requirements are met:
a. $3,000,000 minimum investment, and
b. A minimum of ten (10) new full-time employees are hired and
maintained, and
C. Wages paid to new employees must pay 50% above the state
minimum wage, and
d. Major medical health insurance is provided to all full-time
employees, and
e. All improvements and new hires must be completed within three
years of the date of the signed ordinance approving the Statement of Benefits for a
business, and
£ Failure to meet any of the requirements outlined in a. through e.
above shall require that the alternative abatement deduction schedule revert to the
standard ten (10) year abatement deduction schedule outlined in IC 6-1.1-12.1-
4d(10) for real estate improvements and IC 6-1.1-12.14.5d(10) for personal
property beginning with the number of years remaining for the abatement (for
example4 if a personal property abatement is in its 6 h year, the final four years'
deductions would be 40%, 30'/0, 20% and 10%, respectively).
2. Additionally, if the minimum conditions outlined in #lb., #1c., and #ld.
above are met, Richmond Common Council may increase the alternative abatement
deduction described above by 50/o if the business invests a minimum of $5,000,000 or by
ten (10%) percent if the business invests a minimum of $10,000,00%.
3. If the minimum conditions outlined in #1a., #lc., and #1d. are met, the
Richmond Common Council may increase the alternative abatement deduction described
above by 5% if the business adds a minimum of twenty (20) new employees, or by ten
(l0%) percent if the business adds a minimum of thirty (30) new employees
4. If the minimum conditions outlined in #1a., #1b., #lc., and #ld. above are
met, the Richmond Common Council may increase the alternative abatement deduction
described above by 5% if the business pays at least double the state minimum wage for
new employees hired.
5. The percentage increases described in #2, #3, and #4 above are
independent of each other. As such, a qualifying applicam could possibly achieve a one
hundred (100%) percent deduction.
b. A business requesting an alternative abatement deduction schedule shall
provided a letter requesting an alternative abatement deduction schedule and shall provide
proof of the applicable justification with the standard application materials.
PASSED AND ADOPTED this 17th day of January 2012, by the Common Council of the
City of Richmond, Indiana.
President
Philip Mathew Quinn
ATTE
Karen Chasteen, IAMC, MMC
PRESENTED to the Mayor of the City of Richmond, Indiana, this 18th day of January,
2012, at 9:00 a.m.
en Chasteen, IAMC, MMC
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 18th
day of January, 2012, at 9:05 am.
Y
Ma or
(Sarah L. Hutton)
ATTE T:
Karen Chasteen, IAMC, MMC