HomeMy Public PortalAbout113-1997 - Tax Abatement - Amends Tax Abatement ProcedureORDINANCE NO. 113-1997
A SPECIAL ORDINANCE REGARDING
PROCEDURE FOR TAX ABATEMENTS
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 pursuant to Indiana law, which pursuant to prior
Council resolution, i.e.: Resolution No. 2-1987, has currently been
established for a ten year period from the assessed value; and
WHEREAS, an owner of new manufacturing equipment is entitled to deductions
pursuant to Indiana law for either a 5 year or 10 year period from the
assessed value of new manufacturing equipment, and
WHEREAS, Common Council wishes to amend its prior Resolution No. 2-1987
regarding establishing a ten-year period for all approved Statement of
Benefits on real property, to allow a consideration of the statutory
possibilities of 3, 6, or 10 years for each Statement, pursuant to the
guidelines set forth within this Ordinance; and
WHEREAS, pursuant to I.C. 6-1.1-12.1-3, in order for Common Council to approve a
Statement of Benefits to allow a deduction, it must make certain findings
of fact regarding certain benefits which will be forthcoming from the
described project therein; and
WHEREAS, Common Council wishes to establish guidelines in determining whether a
specific Statement of Benefits, regarding either real property or new
manufacturing equipment, meets the required positive beneficial findings;
and
WHEREAS, Common Council recognizes that the goals and purposes of allowing a
deduction through a Statement of Benefits includes adding property for tax
base revenue which would not otherwise be included without the
deduction; providing an incentive for higher wages and a better quality of
life for the citizens of Richmond; and keeping Richmond competitive for
economic development opportunities; and
WHEREAS, Common Council also wishes to enhance the City's monitoring of certain
aspects of approved Statement of Benefits.
NOW, THEREFORE, be it ordained by the Common Council of the City of
Richmond, Indiana as follows:
1. Resolution No. 2-1987, is hereby amended and/or rescinded to eliminate the
establishment of a 10 year period for all future Statement of Benefits regarding real
property located in an Economic Revitalization Area and in lieu thereof, the applicable
time period for each future real property phase -in and/or application shall be either 3, 6,
or 10 years, as determined by Common Council in each Special Ordinance approving a
specific Statement of Benefits, and as determined pursuant to the guidelines established
herein.
2. In determining whether to approve a Statement of Benefits and in determining
which time period to use on any approval, Common Council shall consider the following
factors in making its required findings of beneficial impact, to -wit:
a. average wage paid to employees, including fringe benefits
b. health care benefits paid to employees
c. upward mobility of jobs to be created and/or retained by the applicant
d. size of redevelopment/rehabilitation and/or new manufacturing equipment
e. applicant's level of commitment and involvement in the City.
3. All Statement of Benefits shall continue to be referred to Common Council's
Tax Abatement Committee for consideration of the above guidelines and for
recommendation of which time period the applicant will receive as to its phase -in. The
applicant will be given notice of the Tax Abatement Committee's recommendation prior
to any final action taken by Common Council.
4. Commencing in 1998, five percent of all outstanding property owners who
have previously secured approved Statement of Benefits from Common Council, and are
still in the period of their phase -ins, shall be randomly selected by the City
Administration, and their information regarding job creation and/or retention, and
applicable employee wages, shall be audited by the City Administration as part of
assuring continued compliance with their Statement of Benefits. Besides the random
audit process, any written complaints that the City receives about non-compliance of a
specific business will also be investigated and subject to audit. To the extent any non-
conforming information is found, the City Administration and/or Common Council shall
be authorized to take all action as authorized by I.C. 6-1.1-12.1-1 et seq.
5. In order to implement and/or advise applicants of the guidelines described
herein, an addendum to the Statement of Benefits Form SB-I, known as Form SB-lA (a
copy of which is incorporated by reference and attached hereto) shall be required of all
applicants with their Statement of Benefits applications.
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Passed and adopted this day of `cam 1997, by the Common Council of
the City of Richmond, Indiana.
President
(BROO-- G,
ATTESi� City Clerk
(Norma Schroeder)
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of
APPAO
ATTES'
199S, at 9:00 a.m.
Clerk
yor