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Home My Public Portal About034-1996 - Tax Abatement Holland ColorsORDINANCE NO. 34-1996 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 pursuant to Indiana law and prior Council resolution 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, 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 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. NOW, THEREFORE, be it 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, including the above findings, as follows: NEW MANUFACTURING EQUIPMENT - 10 YEARS Holland Colors Americas, Inc. New Jobs: 10 Jobs Retained: 41 Estimated New Value: $1,500,000 Dated: April 23, 1996 Passed and adopted this &- day of 1996, by the Common Council of the City of Richmond, Indiana. -djj� esident (Geneva Allen) ATTES4��(No=r�n7a�Sc �, City Clerk oeder) P SENTED to the Mayor of the City of Richmond, Indiana, this 1 day of , 1996, at 9:00 a.m. CityClerk (Norma S hroeder) � ROVED by e, Dennis Andrews, Mayor of the City of Richmond ana, this day of , 1996, at T--a.m. 1 � j r.� , Mayor ennis An ews) ATTES4.&Vw- a t e City Clerk (Norm chroeder) �STATEMENT OF BENEFITS I rQrth State Ft.m 27167 (R3 / 11•91) "Sc *s: - Sa 1 Form S8 - i is prescribed by the State Board of Tax CorrvrnssWers. r The records in this series are CONFIDENTIAL according to !C iC^ y INSTRUCTIONS: 44n 1. This statement must be submitted to the body designating the economic revitilization area prior to the public hearing if the designating body requires in; mation from the applicant in making its decision about whether to designate an Economic Revitflization Area. Otherwise this statement must be submit to the designating body BEFORE a person installs !w new manufacturing equipment or BEFORE the redevelopment or rehabilitation of real property which the person wishes to claim a deduction. A statement of benefits is not required if the area was designated an ERA prior to July 1, 1987 and, project' was planned and committed to by the applicant, and approved by the designating bodyy, prior to that date. 'Projects `planned or Committed to at July 1. 1987 and areas designated alter July 1, 1987 require a STATEMENT OF BENEFITS. (1C 6-1.1-12.1) 2 Approval of the designating body (City Council. Town Board. County Council. etc.) must be obtained prior to initiation of the redevelopment or rehabilitath or prior to installation of the new manufacturing equipment, BEFORE a deduction maybe approved. 3. To obtain a deduction. Form 322 ERA. Real Estate improvements and / or Form 322 ERA / PP, New Machinery, must be filed with the county auditor. K respect to real property. Form 322 ERA must be filed by the later of: (1) May 10; or (2) thirty (30) days alter a notice of increase in real property assessmr is received from the township assessor. Form 322 ERA / PP must be filed between March 1 and May 15 of the assessment year in which new manuf, 1lvring equipment is installed, unless a filing extension has been obtained A person who obtains a ruing extension must rile the form between Mardi 1 a June 14 of that year. <. Property owners whose Statement of Benefits was approved alter July 1, 1991 must submit Form CF - 1 annually to show comp<iance with the Statement Benerts. (1C 6-1.1-12.1-5.6) Name of taxpayer Holland Colors Americas, Inc. of taxpayer (street and number, city, state and ZiP coos) 1501 Progress Drive, Richmond, IN 47374 Name of contact person telephone number Mr. Rudy Groot. �• - +. (317 935-0329 Name of designating body Resolution number Common Council of the Richmond IN 10-1984, 11-1991 Location of property County Ta>ang district 1501 Progress Drive, Richmond. IN 47374 1 Wayne Richmond Cor . Description of real property improvements and / or new manufacturing equipment to be acquired (use additional _ Estimated starting date sheets d necessary) April 1, 1996 -- Various manufacturing equipment - Estimated completion date June 30, 1999 number Salaries Number retained 41 1,103,423 41 Number addtional Salariea z ,423 `10 174,000 SECTION4 ESTIMATED TOTAL COST AND VALUE Real Estate Improvements__ Cost OF PROPOSED PROJECT Machinery Assessed Value Cost Assessed Value Current values 1,733,523 272,840 Pkrs estimated values of proposed project 1,500,000 150,000 Less values of any property being replaced Net estimated values upon completion of project 1 3,233,523 422,840 • • I hereby cert' that the representations in this statement are true. Signature o1 a'0horized represent Title r Oate signed (/rlorrth, day, year) OT Tzc�or �- r S C � 2 3 i 6 U Q % r' r��4 tom- 2 We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets general standards adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5. 1 vides 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 designation expires is B. The type of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements; ❑ Yes ❑ No 2. Installation of new manufacturing equipment: ❑ Yes O No 3. Residentially distressed areas ❑ Yes ❑ No C. The amount of deduction applicable for new manufacturing equipment installed and first claimed eligible for deduction after Jul) 1987, is limited to $ cost with an assessed value of $ D. The amount of deduction applicable to redevelopment or rehabilitation in an area designated after September 1, 1988 is fimite( $ cost with an assessed value of $ E. Other limitations or conditions (specify) F. The deduction for new manufacturing equipment installed and first claimed eligible for deduction after July 1, 1991 is allowed f ❑ 5 years ❑ 10 years Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasc able and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved. (signature and title of authorized member) Telephone number Date signed (month, day, year) Attested by: Designated body - If the designating body limits the time period during which an area is an economic revitilization area, it does not limit the length of tin a taxpayer is entitled to receive a deduction to a number of years designated under IC 6-1.1-12.1-4 or 4.5 Namely: (see -tables beloi NEW MANUFAMRING EQUIPMENT • Year of Five (5) Year Ten (10) Year Deduction Percentage Percentage 1st 1009'0 10(r 2nd 95% 95% 3rd 800% 90% 4th 65% 85% 5th 500/0 80% 6th 70% 7th 55% 8th 40% 9th 30% 10th 25% REDEVELOPMENTOR REHABIUTATION OF REAL PROPERTY IMPROVEMENT For Deductions Allowed . • Year of _.... Three (3) Year Six (6) Year Ten (10) Yea Deduction Deduction uc0on Deduction 1st 100% 100% 100% 2nd 66% 85% 95% 3rd 33% 66% 80% 4th 50% 65% 5th 34% 509'. 6th 17% 40% 7th 30% 8th 20% 9th t W. 10th 5%