HomeMy Public PortalAbout057-2013 - Abatement - Color-Box LLC - equipmentAMENDED ORDINANCE NO.57-2013
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, The Common Council of the City of Richmond, Indiana, 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 the 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 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.
WHEREAS, On January 17, 2012, the Common Council approved an ordinance establishing an
alternative abatement deduction schedule pursuant to IC 6-1.1-12.1-17, known as
Ordinance No. 76-2012, in order that a business that receives a deduction under IC 6-
1.1-12.1-4.5 may apply for the alternative deduction, provided that said business
provide proof of applicable justification for the requested deduction meeting the
following criteria:
1. Alternative abatement deduction schedule of 75% 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
f. 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 6-1.1-12.1-4.5d(10) for personal property
beginning with the number of years remaining for the abatement (for example, if
a personal property abatement is in its 6th year, the final four years' deductions
would be 40%, 30%, 20% and 10%, respectively).
2. Additionally, if the minimum conditions outlined in #Ib., #lc., and #ld. above
are met, increase the alternative abatement deduction described above by 5% if
the business invests a minimum of $5,000,000 or by ten (10%) percent if the
business invests a minimum of $10,000,000.
3. If the minimum conditions outlined in #la., #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 (10%) percent if the business adds a minimum of thirty (30) new
employees.
4. If the minimum conditions outlined in #la., #lb., #1c., and #Id. above are met,
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 applicant could possibly achieve a one hundred
(100%) percent deduction.
6. 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.
NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond,
Indiana, that the Common Council 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-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 also 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, as follows:
EQUIPMENT — 10 YEARS
Color -Box, LLC
Jobs Retained: 343
Jobs Created: 15
Estimated New Value: $26,728,000.00
Dated: August 20, 2013
NOW THEREFORE, be it also ordained by the Common Council of the City of Richmond,
Indiana, that in accordance with criteria #6 as listed on the alternative abatement deduction schedule,
the above -listed property owner has provided a letter requesting an alternative abatement deduction
schedule, has requested a ninety percent (90%) deduction for ten (10) years, and has provided proof
of the applicable justification to show that the property owner has met the following applicable
criteria:
A. The investment will exceed the $10,000,000.00 minimum investment
requirement in accordance with criteria #la. and Q.
B. The investment will exceed the ten (10) new full-time employees requirement
in accordance with criteria #lb.
C. The wages paid to new employees will exceed double the state minimum
wage in accordance with criteria #4.
D. Major medical health insurance is provided to all full-time employees in
accordance with criteria # I d.
E. All improvements and new hires will be completed within three (3) years of
the signed ordinance approving the Statement of Benefits in accordance with criteria # 1 e.
NOW THEREFORE, be it also ordained by the Common Council of the City of Richmond,
Indiana, that the above -referenced property owner may receive the requested ninety percent (90%)
deduction for the ten (10) year period.
Passed and adopted this _/4 day of , 2013, by the Common
Council of the City of Richmond, Indiana.
President
;a6 arke
ATTES
(Karen Chasteen, IAMC, MMC}
PRESENTED to the Mayor of the City of Richmond, Indiana, this �5 day of , 2013,
at 9:00 a.m.
(� Clerk
(Karen Chasteen, IAMC, MMC)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this (p 1k day of
lUoLhn,kt , 2013, at 9:05 a.m.
Mayor
(Sarah L. Hutton}
oe
ATTEST:
(Karen Chasteen, IAMC, MMC)
t,,
STATEMENT OF BENEFITS ii FORM SB-1 1 PP
x PERSONAL PROPERTY t t
State Form 51764 (R2112-11) l PRIVACY NOTICE
Prescribed by the Department of Local Government Finance I The cost and any specific lndlviduals
salary lnformatton Is confidendah the
- balance of the filing is public record
INSTRUCTIONS: par IC 6.1.1-12.1.5,1(c) and (d).
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 andlor research and development equipment, and/or logistical distribution
equipment andlor 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
andlor research and development equipment and/or logistical distribution equipment andlor 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 ppersonal property return on a certified deduction schedule (Form
103-ERA) with the township assessor of the township where the properly is situated or with the county assessor if there is no township assessor for the
township. The 103-ERA must be filed between March 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and
development equipment andlor logistical distribution equipment andlor information technology equipment is installed and fully functional, unless a filing
extension has been obtained. A person who obtains a tiling 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 6-1.1-12.1-4.5(d) and (e) apply to equipment installed after March 1, 2001, unless an alternative deduction schedule is
adnnf-d by the desionatino bodv OC 6-1.1-12.1-17).
SECTION I TAXPAYER INFORMATION
Name of taxpayer
COLOR —BOX, LLC
Address of taxpayer (street and number, city, state, ZIP code)
623 S G STREET RICHMOND IN 47374
Name of contact person Telephone
number
SHELLIE MADILL
(765)983-4246
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
COMMON COUNCIL OF THE CITY OF RICHMOND, IN
Location of property
IWAYNE
County
DLFG taxing district number
1010 INDUSTRIES RD RICHMOND IN 47374
89030
Description of manufacturing equipment andlor research and development equipment
ESTIMATED
Start Date
Completion Date
and/or logistical distribution equipment andlor information technology equipment
(use additional sheets if necessary)
Manufacturing Equipment 04/01/2014
12/31/2014
ROLL FED PRINTING PRESS AND LAMINATORS
R&DEquipment
COST $26,728,000
Logist Dist Equipment'
IT Equipment'
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salaries
343 14,970,925 343 14,.70,925 15
1,095,896
SECTION 4
ESTIMATED TOTAL COST AND VALUE OF PROPOSED
PROJECT
NOTE: Pursuant to IC 6.1.1-12.1-5.1 (d) (2) the
.
Manufacturing R & D Equipment
Equipment
Logist Dist Equipment" IT Equipment
property rty
COST of the roe is confidential.
Assessed Cost
Cost
ssesse
Cost
Asses Cost
Assessed
Value
Value
Value
Value
Current values
55, 527, 140 16, 658, 142
Plus estimated values of proposed project
26, 728, 000 8, 01E, 4C0
Less values of any property being replaced
3,567,396 1,070,219
74 A '23, 606, 323
Net estimate values upon completion of project 78,687,SECTION
5 WASTE CONVERTED AND OTHER BENEFITS PROMISED:
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
8 OUT OF THE 15 NEW POSITIONS WILL BE SALARY AND 7 POSITIONS WILL BE HOURLY.
SECTION
I hereby certify that the representations in this statement are true.
Signature of auth ed r re tat
Title
Date signed (month, day, year)
.�
6C41erA L M GA
. z o 13
Form SB-1iPP. page 1 - NACTP 1585 - Software only copyright 0 2013 0IS, Ina ClientlLoc 582515260 RICHMOND
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 iimitations 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
is
B. 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 $
$
calendar years ' (see below).The date this designation expires
❑ Yes
❑ No
❑ Yes
❑ No
❑ Yes
g No
❑ Yes
❑ No
cost with an assessed value of
D. The amount of deduction applicable to new research and development equipment is limited to $
with an assessed valve of $
E. The amount of deduction applicable to new logistical distribution equipment is limited to S
F. The amount of deduction applicable 10 new information technology equipment is limited to $
G. Other limitations or conditions (specify)
cost
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 andloT
new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000 is allowed for:
❑ 1 year
Cl 6 years For ERA's established prior to July 1, 2000 ova
❑ 2 years
CJ 7 years 5 or 10 year schedule may be deducted.
❑ 3 years
❑ 8 years
❑ 4 years
❑ 9 years
❑ 5 years "'
❑ 10 years —
I. Did the designating body adopt an alternative deduction schedule per tC 6-1.1-12.1-17? ❑ Yes ❑ No
If yes, attach a copy of the alternative deduction schdule 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.
Appr ved: (sign re d title fathohzed me bed Telphone number Date signed (month, day, year)
�'g 9 - 72,v
Attests v: 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 5a-11PP, page 2 - NACTP 1585 - Software only copyright 0 2013 DIS, Inc. Clienl/Loc 562515260 RICHMOND
Form SB-lA
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name and Address: color - Box, LLC
623 S. G Street
Richmond, IN 47374
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 $ 17.70
2. Average hourly wage for projected new positions $ 17.70
3. Average hourly health insurance benefit $ 3.80
The length of the abatement you are requesting 10 years
(A 1-10 year abatement may be requested for real estate improvements and
manufacturing equipment.) The roll fed printing press and laminators will be
purchased new from out of state and have a projected
DEFINITIONS useful life of 20-25 years.
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 emplgyee djalided by 2080 hours.
(Authorized Signature and Title)
t 20113
(Date)