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Home My Public Portal About042-2013 - Abatement - Primex Plastics Corporation - equipmentORDINANCE NO.42-2013 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: 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 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-i 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 makes 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-I 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 Primex Plastics Corporation Jobs Retained: 311 Jobs Created: 6 Estimated New Value: $5,263,000.00 Dated: June 26, 2013 Passed and adopted this day of 2013, by the Common Council of the City of Richmond, Indiana. 45 A (Karen Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, this 1v day of , 2013, at 9:00 a.m. Karen Chasteen, IAMC, MMC) A VED by e, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this C day of 2013, at 9:05 a.m. s:: 44-44,ayor (Sarah L. Hutton) •�•� STATEMENT OF BENEFITS FORM SB-1 1 PP PERSONAL PROPERTY ' State Form 51764 (R2112-11) Prescribed by the Department of Local Government Finance PRIVACY NOTICE The cost and any specific individual's salary information is confidential; the balance of the filing is public record per IC 6-1.1-12.1-5.1 (c) and (d). 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 a person installs the new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment 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 installation of the new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment, BEFORE a deduction may be approved 3. To obtain a deduction, a person must file a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 103-ERA) with the township assessor of the township where the property is situated or with the county assessor if there is no township assessor for the township. The 103-ERA must be filed between March i and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional, 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, 1991, must submit Form CF-1 / PP annually to show compliance with the Statement of Benefits. (IC 6-1.1-12.1-5.6) 5. The schedules established under IC 6-1.1-12. f-4.5(d) and (e) apply to equipment installed after March 1, 2001, unless an alternative deduction schedule is adopted by the designating body (IC 6-1.1-12.1-17). Name of taxpayer Primex Plastics Corp Address of taxpayer (number and street, city, state, and ZIP code) 1235 North "F" Street Richmond, IN 47374 Name of contact person Holli Farmer Name of designating body City of Richmond Common Council Location of properly 1235 North T" Street Richmond, IN 47374 Description of manufacturing equipment and/or research and development and/or logistical distribution equipment and/or information technology equir (use additional sheets if necessary) See Attached Current number Salaries 311 1 9,008,314.00 NOTE: Pursuant to IC 6-1L1-12.1-5,1 (d) (2) the COST of the property is confidential. Current values Plus estimated values of proposed projec Less values of any property being repiacl Net estimated values upon completion of Estimated solid waste converted (pounds) Other benefits: of authorized Number retained 311 MANUFACTURING EQUIPMENT COST ASSESSED VALUE 5,131,000.00 Telephone number (765) 973-0120 Resolutlon number (s) County DLGF taxing district number Wayne +t I I ESTIMATED START DATE I COMPLETION DATE Manufacturing Equipment 07/01/2013 07/01/2015 R & D Equipment 07/01/2013 07/01/2015 Logist Dist Equipment 07/01/2013 07/01/2015 IT Equipment 07/01/2013 07/01/2015 Salaries 9,008,314.00 rngamm= R & D EQUIPMENT COST ASSESSED VALUE 132.000.00 Number additional B LOGIST DIST EQUIPMENT COST ASSESSED VALUE Estimated hazardous waste converted (pounds) certify that the representations in this statement are true. Salaries 131,040.00 IT EQUIPMENT COST ASSESSED VALUE Date signgd (month, day, year) 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 6-1.1-12.1-2.5, provides 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 13 . The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; 2. Installation of new research and development equipment; 3. Installation of new logistical distribution equipment. 4. Installation of new information technology equipment; C. The amount of deduction applicable to new manufacturing equipment is limited to $ El Yes ❑No ❑Yes ❑No El Yes ❑No ❑Yes ❑No 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 $ F. The amount of deduction applicable to new information technology equipment is limited to $ $ G. Other limitations or conditions cost with an assessed value of cost with an assessed value of H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment andlor new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for: ❑ 1 year ❑ 6 years " For ERA's established prior to July 1, 2000, only a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ 8 years ❑ 4 years ❑ 9 years ❑ 5 years ** Xi years I. Did the designating body adopt an alternative deduction schedule per IC 6-1.1-12.1-17? ❑ Yes ❑ No If yes, attach a copy of the alternative deduction schedule to this form. Also we have 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. authorized Attested by: Telephone number Date signs month day, year) 0/-< d/1 " 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 deducfion to a number of years designated under IC 6-1.1-12.1-4.5 Page 2 of 2 Form SB-1A City of Richmond, Indiana Taxpayer Wage & Benefit Information Company Name, Address & Contact Person: Primex Plastics Corp 1235 North "F" Street, Richmond IN 47374 Attn: Holli Farmer The information requested on this supplement to form S13-1 must be completed and submitted along with your S13-1 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 $ 13.93 2. Average hourly wage for projected new positions $ 10.50 3. Average hourly health insurance benefit $ 5.16 1. The length of the abatement you are requesting (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 • 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 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.