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Home My Public Portal About012-2013 - Tax Abatement - JM Hutton - EquipmentORDINANCE NO. 12-2013 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. 6. That installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-1. NOW, THEREFORE, the Common Council of the City of Richmond, Indiana, now snakes the following findings: 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 installation of the equipment described in the SB-1 must be completed within 24 months of the date the ordinance is signed by the designating body. Further, the abatement is limited to the equipment listed in the SB-1. NOW 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: EQUIPMENT — 10 YEARS J.M. Hutton & Co., Inc. Jobs Retained: 87 Jobs Created: 2 Estimated New Value: $220,764.50 Dated: February 11, 2013 Passed and adopted this day of2013, by the Common Council of the City of Richmond, Indiana. President 4ya '� _ PRESENTED to the Mayor of the City of Richmond, Indiana, this day of , 2013, at 9:00 a.m. (Karen Chasteen, IAMC, MMC) APP COVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of 013, at 9:05 a.m. r36AI-7 ;-Mayor (Sarah L. Hutton) ATTE T: aren Chasteen, IAMC, MMC) STATEMENT OF.BENEFITS `s PERSONAL PROPERTY Srate Form 51764 (5-04) '°'• Prescribed by the Department of Local Government Finance FORM SB-11PP INSTRUCTIONS: 1. This statement must be submitted to the body designating the edonomic revitalization area prior to the public hearing if the designating body requires infomratfon 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 a person installs the new manufacturing equipment andlor research and development equipment, and/or logistical distribution equipment and/orinformatian technology equipment for which the person wishes to claim a deduction" ,Projects"plartned or committed to after July 1, 1987 and areas designated after July 1, 1987 require a SW EMENT OF BENEFITS. (IC 6-1.1-12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc") must be obtained priorto installation of the new manufacturing equipment . and/or research and development equipment and/or logistical distributionegaipment and/or information technology equipment, BEFORE a deduction may be approved 3, To obtain a deduction, Form 322 ERA/PPME and/or Form 322 ERA/PP Other, must be filed with the county auditor. Form 3221=RA/PPME and/or Form 322 ERA/PP Other must be filed betwean March i and May 15 of the assessment yearnn which new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment -becomes assessabie, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 and the extended due date .of that year. 4..Property owners whose Statement of Benefits was.approved after June 30, 1891 must submit Form CF-1 annually to show compliance with the Statement of Benefits. (1C 61 1-12.1-5.'6) 5. The schedules established under IC 6-1.1-12.14(d) and IC 6-1.1-1Z 1-4.5(e) effective July 1, 2000 apply to any statement of benefits filed on or after July 1, 2000. The schedules effective prior to July 1, 2000 shall continue to apply to those. statement of benefits filed before July 1, 200o, Name of taxpayer J.M. Hutton & Co., Inc.. Address of taxpayer (street and number, city, state and ZiP code) 1501 South 8th Street, -Richmond, IN 47374 Name of contact person Telephone number - Thomas S. Robeson 962-3591 • . • • . • -e-. 1 •-• Name of desiqnatinq body - Resolution.nuenber Richmond Common Council Location of property 751 South "0" Street County Wayne Taxing district Richmond Description of manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or Information technology equipment (use additional sheets if necessary) ESTIMATED Start Date Completion Date Manufacturing Equipment 10-30-12 3-1-13 Teaser Metal Cutter (See Exhibit A) R & D Equipment Logist Dist Equipment lT Egeipment' • o • � • ^•-• a -• Current number. Salaries Number retained Salaries 87 $670.80/wee 87 $670..80/week Number additional 2 Salaries $670.80/week NOTE: Pursuant to IC 671.1-12"1-5,1 (d) (2) the COST of the property is confidential. AllEqui meet g Equipment R g b Equipment Logist Dist Equipment ` IT Equipment' Cost Assessed Value Cost Assessed Value Cost Assessed Value Cast Assessed Value Current values Plus estimated values of proposed project 220 76/4, Less values of any property being replaced Now Net estimated values upon complefion,of project 220 .764 50 Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits: + e I hereby certify that the representations in this statement are true. Sig a of au hod reps tative Title )'resident Date signed (month, day, veart February , 2013 . *See IC 6-1.1-12.1 -2.3. • Richard E. Jeffers We: have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general.standard's adoptedin the'resolutibn previously approved by this -body. Said resgiution, 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 . Installation of new manufacturing equipment; R<es ❑ N o 2. Installation of new research and development equipment; ❑ Yes"❑ No 3. Installation of new logistical distribution equipment. ❑. Yes ❑ No 4. Installation of new.information technology equipment; ❑ Yes ❑ No II A C.The amount of deduction applicable to new manufacturing equipment is limited to $ ,'7(p4. ;icce— cost with an assessed value of $ D.The amount of deduction applicable to new research and.development equipment is limited to $ cost with an assessed value of $ E. The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of $ F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of $ G. Other limitations or conditions (specify) H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution. ----equipmentand/or-hew infor-oration-technology-equipment-installed and firstclaimed_eligible_for_ deductionafter_July 1,_20-001r--allowed__- _ for. ❑ 1 year ❑ 6 years ** For ERA's established prior to July 1, 2000 2!�y a "❑ 2 years ❑ 7 years 5 or 10 year schedule maybe deducted. ❑ 3 years ❑ 8 years ❑ 4 years ❑ 9 ears El 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 det e e totality of benefits is sufficient to justify the deduction described above. Approved; (signat and a of authorized ma er) Telephone number Date igned (month, day, year) Attes d Designated body 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 deduction to a number of years designated under IC 6-1.1-12.1-4.5 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit information Thomas S. Robeson Company Name, Address & Contact Person: J.M. Hutton & Co., Inc. 1501 South Sth Street, P.O. Box 129 Richmond, Indiana 47374 The information requested on this supplement to form SB-i 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 $ 16.77 2. Average hourly wage for projected new positions $ 16.77 3. Average hourly health insurance benefit $ 5.00 1. The length of the abatement you are requesting Ten (A 1-10 year abatement may be requested for real estate improvements and manufacturing equipment.) 2. If purchasing equipment, please attach a list that includes the following • brief description of each piece of equipment being purchased See Exhibit A • the projected useful life of each piece of equipment 25 years • the state(s) in which the equipment is being brought into Indiana from if purchasing used equipment Not applicable the cost of each piece of equipment See Exhibit A 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 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: 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. (Authorized Signature and 2— (j —2013 Richard E. Jeffers, President (Date)