HomeMy Public PortalAbout078-2013 - Abatement - Stride Rite - EquipmentAMENDED ORDINANCE NO.78-2013
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, research and development equipment, logistic distribution equipment, or
information technology 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 and Richmond City
Ordinance, 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, research and development equipment,
logistic distribution equipment, or information technology equipment is also entitled
to deductions from the assessed value, pursuant to Indiana law and Richmond City
Ordinance, 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, research
and development equipment, logistic distribution equipment, or information
technology 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, research and development equipment, logistic
distribution equipment, or information technology 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, research and development equipment, logistic
distribution equipment, or information technology 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,
research and development equipment, logistic distribution equipment, or
information technology 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.
7. That a deduction schedule was passed by Common Council pursuant to
Richmond City Ordinance Number 65-2013 and that said deduction schedule is
applicable to the deductions approved along with these findings.
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, research
and development equipment, logistic distribution equipment, or information
technology 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, research and development equipment, logistic
distribution equipment, or information technology 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, research and development equipment, logistic
distribution equipment, or information technology 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,
research and development equipment, logistic distribution equipment, or
information technology 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.
7. That a deduction schedule was passed by Common Council pursuant to
Richmond City Ordinance Number 65-2013 and that said deduction schedule is
applicable to the deductions approved along with these findings.
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 — 2 YEARS
The Stride Rite Corporation
Jobs Retained: 130
Jobs Created: 114
Estimated New Value: $2,750,000.00
Dated: December 6, 2013
Passed and adopted this *�- day of 2014, by the Common
Council of the City of Richmond, Indiana.
A'
(Karen Chasteen, IAMC, MMC)
President
PRESENTED to the Mayor of the City of Richmond, Indiana, this day qf 2014,
at 9:00 a.m. 'L��
t,flurk
(Karen Chasteen, IAMC, MMC)
APDROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this '7' day of
%,,�014, at 9:05 a.m.
XX4/Z,Mayor
(Sarah L. Hutton)
ATT S
(Karen Chasteen, IAMC, MMC)
STATEMENT OF BENEFITS
PERSONAL PROPERTY
State Form 51764 (R2 l 12-11)
Prescribed by the Department of Local Government Finance
FORM SB-1 / PP
PRIVACY NOTICE
The cost and any specific tndvklWs
salary infomradon Is confidential; the
balance of the fling Is public record
per IC 6-1.1-12A-5.1 c) and d .
INSTRUCTIONS:
1. This statement most be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
Information from the appkant in malting 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 disMbution equipment and/or Information technology equipment, BEFORE a deduction may
be approved
3. To obtain a deduction, a person must rile 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 1 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 riling extension must rile 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)
S. The schedules established under IC 6-1.1-12.1-4.5(d) and (a) apply to equipment Installed after March 1, 2001, unless an aftemative deduction schedule is
adopted by the designating body (IC 6-1.1-12.1-17).
SECTION•• •
Name of tw"yer
C / o
Address of wo peyer (number and street cMt state, and LP code)
3 /
Name of contact person
Telephone number
SECTIONLOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name ofA@sjqnadng body
Resolution nu ber (s
�
�Ilo L,�9,n11r�p/11 v,�/c!L
/O
Location of rty
County
DLGF taxing district number
v ovsr�i�s
to
Description of manufacturing equipment and/or research and development equipment
If
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment.
START DATE
COMPLETION DATE
(use additional sheets if necessary)
Manufacturing Equipment
C4440cAlo e,%t- CE�-AC_v ILV720-f2k<Cln.I
R & D Equipment
IOW E c9Z;4r`CW ,P3?C)/,P7J1*?E/r1T ,AGoNG
Logist Dist Equipment
�/7sr/ �FE Foie ZSo7itvt)�L
REquipmentSECTION
pf�./
/yiD}'z0/9
3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained Salaries Number additional Salades
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC &1.1-12.1-5.1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST;ITUIPMENT
E UIPMENTE UIPMENYCOST
of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED ASSESSED
VALUE %GLUE XALUEVALUE
Current values
Plus estimated values of proposed project
Less values of any property being replaced
Net estimated values upon completion of project I3
05�
SECTION 5 WASTE CONVERTED AND•
-■ BY THE TAXPAYER
solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits;
SECTION•
I hereby certify that the representations In this statement are true.
gym„h,r. of aufh raprase
_rru
Tllte -
Date signed (month, day, year)
IC
I
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 6-1.1-12.1-2.6, 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
B . The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment; ❑Yes []No
2. installation of new research and development equipment; []Yes ❑ N o
3. Installation of now logistical distribution equipment. []Yes []No
4. Installation of new information technology equipment; ❑ Yes ❑ N o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of
a
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
M Other limitations or conditions (specify)
H. The deduction for new manufacturing equipment and/or now research and development equipment and/or new logistical distribution equipment and/or
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 ERPis established prior to July 1, 2000, !t* a
❑ 2 years ❑ 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 IC 6-1.1-12.1-177 ❑ 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 thelotality of benefits Is sufficient to justify the deduction described above.
App-Irl"irv
a ardhonzed member) Telephone er Date (month, day, yW
( ) — 3 2— i
Attested Designated booyy A 1 117
If thsignating body limits the time period during which an area Is an economic revitalization area, it does not Omit 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
Page 2 of 2
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
d
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 $ 15.
2. Average hourly wage for projected new positions $
3. Average hourly health insurance benefit $ z- •• 7S
1. The length of the abatement you are requesting ,AV
(A 1-10 year abatement may be requested for real estate Improvements and mans faduring 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 fall time, non -supervisory employees Do not include the
following groups.
A. part time employees;
B. management, supervisors, foremen or any other supervisorypersonnel;
G 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 Title)
(Date)