HomeMy Public PortalAbout008-2014 - Tax Abatement - IMPACOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO.8-2014
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, Indiana and it has been proposed under Resolution
Number 1-2014 that Common Council designate a new economic revitalization area
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-I.
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-I.
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 —10 YEARS
Indiana Municipal Power Agency
Jobs Retained: 0
Jobs Created: 0
Estimated New Value: $2,460,260
Dated: April 30, 2014
Passed and adopted this o,!F day o 2014, by the Common
Council of the City of Richmond, Indiana.
ident
ATTE T•k>
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this day ,
at 9:00 a.m.
rk
(Karen Chasteen, IAMC, MMC)
AP OVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of
2014, at 9:05 a.m.
Mayor
(Sarah L. Hutton)
ATTE
(Karen Chasteen, IAMC, MMC)
STATEMENT OF BENEFITS
-a PERSONAL PROPERTY
State Form 51764 (R31 12-13)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS
FORM SBA / PP
PRIVACY NOTICE
Any information concerning the cost
of the property and specific salaries paid
to individual employees by the property
owner is confidential per IC 6-1.1-12.1-5.1.
t. 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.
2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation
of qualifying abatable equipment for which the person desires to claim a deduction.
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 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 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, must submit Form CF-1/PP annually to show compliance with the Statement of Benefits.
(IC 6-1.1-12.1-5.6)
5. For a Form SB-11PP that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed.
For a Form SB-1/PP that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. (IC 6-1.1-12.1-17)
SECTION- INFORMATION
Name of taxpayer
Name of contact person
Indiana Municipal Power Agency
Mike Malguarnera
Address of taxpayer (number and street, city, state, and ZIP code)
Telephone number
11610 N. College Avenue, Carmel, IN 46032
( 317 ) 428-6717
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
City of Richmond, IN
Location of property
County
DLGF taxing district number
State Parcel ID 891808430101000030, 2000 S. 27, Richmond 47374
Wayne
89030
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment.
(Use additional sheets if necessary.)
START DATE
COMPLETION DATE
Manufacturing Equipment
02/15/2014
04/30/2014
The purchase and installation of 1 MIN photovoltaic solar generation panels and related
equipment.
R & D Equipment
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
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 LOGIST DIST IT EQUIPMENT
EQUIPMENT EQUIPMENT
COST of the property is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED
VALUE VALUE VALUE VALUE
Current values
0.00
0.00
Plus estimated values of proposed project
2,460,260.01
2,460,260.01
Less values of any property being replaced
Net estimated values upon completion of project
2,460,260.01
2,460,260.011
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
Other benefits:
SECTION•
I hereby certify that the representation ' t is statement are true.
Signature o u orized r res a e
Date signed (month, day, year)
1 /21 /2014
Printed nan3ifofPuthorized representative
Title
Jack AI y
S.V.P. Generation, Indiana Municipal Power Agency
v v Page 1 of 2
L.
FOR USE OF DESIGNATING _•.
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
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 ❑ No
3 . Installation of new logistical distribution equipment. ❑ Yes ❑ N o
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
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 equipment and/or
new information technology equipment installed and first claimed eligible for deduction is allowed for:
❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 (see below ')
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
I. For a Statement of Benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ❑ Yes ❑ No
If yes, attach a copy of the abatement schedule to this form.
If no, the designating body is required to establish an abatement schedule before the deduction can be determined.
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 t lity of benefits is sufficient to justify the deduction described above.
Ap roved sig t a title of authorized member of designating body)
Telephone number
Date signed ( onth, day, year)
Printed na a au rize mem designating body
Name of designating body
Attested VY:(gnatu d title o attested
Printe a of attester
If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17.
IC 6-1.1-12.1-17
Abatement schedules
Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5
of this chapter an abatement schedule based on the following factors:
(1) The total amount of the taxpayer's investment in real and personal property.
(2) The number of new full-time equivalent jobs created.
(3) The average wage of the new employees compared to the state minimum wage.
(4) The infrastructure requirements for the taxpayer's investment.
(b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule for each deduction
allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not
exceed ten (10) years.
(c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the
resolution approving the taxpayer's statement of benefits.
Page 2 of 2
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
Indiana Municipal Power Agency (IMPA)
11610 N. College Avenue
Carmel, IN 46032
Mike Malguarnera, 317-428-6717
The information requested on this supplement to the 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 $0
$0
2. Average hourly wage for projected new positions
3. Average hourly health insurance benefit $0
1. The length of the abatement you are requesting (A 10 year abatement may
be requested for real estate improvements and manufacturing equipment)
IMPA requests a 10 year abatement on manufacturing equipment for the production
of solar power.
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
IMPA plans to purchase equipment to be utilized at a 1.0 Megawatt solar power
generating facility in Richmond, Indiana. The Richmond solar park will be located on
real estate in Richmond, Indiana owned by Richmond Power & Light (RP&L) and
leased to the Indiana Municipal Power Agency under a long-term ground lease, legally
described as State Parcel ID No. 891808430101000030 with a legal description: PT
SE 8-13-1 34.92A S Y2 SE 8-13-1 78.60A, located south of the RP&L offices and
facilities at 2000 South U.S. 27 in Richmond, Indiana 47374, where IMPA will install
approximately 4032 solar panels on 8 acres of farmland on the northeast corner of 34
acres of farmland south of the RP&L administrative building and power plant.
The cost of the solar generation facility, consisting of solar photovoltaic panels,
inverters and transformers, rack mounts, wires, circuit breakers, relays and related
facilities and equipment sufficient to provide peak electric generation capacity of
approximately one (1) megawatt will be approximately $2,460,260 and
approximately 4032 solar panels will be installed on 8 acres of farmland. The
property's useful life is approximately thirty (30) years. IMPA will purchase new
equipment.
The following are costs associated with project:
Descri tion
Richmond
Escrow Agreement Required for Equipment
Purchase
$500.00
Solar Panels
$836,732.00
Inverter w/ Step-up Transformer
$299,441.00
Boundary Survey and Topography of Site for
Placement of Equipment
$4,960.00
TrackinR system from RBI Solar
$633,627.00
Concrete Pad
$35,000.00
Electrical Contractor/Supplies
$300,000.00
IMPA/ISC/INOVATEUS TIME
$100,000.00
Electrical Interconnect
$100,000.00
MISC Installation
$150,000.00
TOTAL
$2,460,260.00
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
The real estate improvements are associated with the installation of the
manufacturing equipment, and as such, have been listed above.
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)
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
The solar park will not require any personnel to operate on a day to day basis.
There will be monthly mowing, quarterly visits, and yearly maintenance on the
site. There are other benefits that can be reasonably expected to result from the
project, which include enabling the City's residents to utilize renewable solar
energy more fully in ways they cannot otherwise obtain without such
development, and the solar park will add to and enhance the diversification of the
Applicpj�t's and thACity'�,IrKnewable energy portfolio.
Signature and Title)
(Date)