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HomeMy Public PortalAbout040-1996 Tax Abatement Transilwrap CoORDINANCE NO. 40-1996 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 EQ1.JI2MENT - 10 YEARS_ Transilwrap Company, Inc. New Jobs: 12 Jobs Retained: 188 Estimated New Value: $6,373,800 Dated: May 16, 1996 Passed and adopted this day o 1996, by the Common Council of the City of Richmond, Indiana. President (Geneva Allen) 4-(ko—rlma ATTESSt��City Clerk Schroeder) r NTED to the Mayor of the City of Richmond, Indiana, this � day of Y tY Y ' 1996, at 9:00 a.m. A2, w- 6C L I,- ,City Clerk (Norma Schroeder) In—'ry D by rnDennis Andrews, Mayor of the City of I of--1996, at 9:05 a.m. ATTES� d-L Qom, City Clerk (Norma Sc oeder) Indiana, this ."s , Mayor STATEMENT OF BENEFITS Requesting 10 year Abatement r� State Form 27167 (R3 / 11.91) Form S8 • 1 s prescribed try the State Board 01 Tax Comm'ss10nen. 1989 l The records In this series are CONF100MAL according to IC 6-1•1'3, 9 • .� 96 Fiil1 16 Ian 10 tf© FUHM INSTRUCTIONS: 1. This statement must be submitted to the body designating the economic revitalization area prior to the public hearing if the designating body requires intc marion from the applicant in making its decision about whether to designate an Economic Revirilization Area. Otherwise this statement must be submittt to the designating body BEFORE a person installs the new manufacturing equipment, or BEFORE the redevelopment or rehabilitation of real property I 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 If project' was planned and committed to by the applicant. and approved by the designating bdyy. prior to that date. 'Projects' planned or committed to aft o July 1. 1987 and areas designated alter July 1, 1987 require a STATEMENT OF BENEFITS. (/C 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 rehabrlitatio or poor to installation of the new manufacturing equipment, BEFORE a deduction may be 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 acid for Wi respect to real property, Form 322 ERA must be filed by the later of. (1) May 10; or (2) thirty (30) days after a notice of increase in real property assessme; is received from the township assessor. Form 322 ERA / PP must be filed between March t and May 15 of the assessment year in which new rnanu/a, luring equipment is installed, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 ar June !I o that yeai I. Property owners whose Statement of Benefits was approved after July 1, 1991 must submit Form OF - 1 annually to show compliance with the Statement Senefrts. (IC 6-1.1-12.1-5.6) Name of taxpayer Transilwrap Company, Inc. Address of taxpayer (street and number, city, state and 300 Industrial Parkway, Richmond, IN 47374 Name of contact person Telephone number Richard Crowell (317� 935-1520 Name of designating bodyResolution number Common Council of the Citv of Richmond IN 10-1984, 11-1991 Location of property County Taxing district 300 Industrial Parkway, Richmond IN Wayne Richmond Corp. pescr4 lion of real property improvements and / or new manufacturing equipment to be acquired (use additional Estimated starting date sheets if necessary) See attached list See attached list Estimated completion date See attached list • . . -• •. Machinery Real Estate Improvements Cost Assessed Value Cost Assessed Value Current values 8,949, 653 894,970 Pkrs estimated values of proposed project 6,373,800 63,740 Less vaktes of any property being replaced Net estimated values upon completion of project 15, 323, 453 958,710 Signature of I hereby certify that tt}e representations in this statement are true. Site Manager Date signed (month, day, year) 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, pro• 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 this 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; Cl Yes ❑ 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 July 1, 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 rimited to $ 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 for: ❑ 5 years ❑ 10 years Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reason- able and have determined that the totality of benefits is sufficient to justify the deduction described above. (signature and title ofauMorizedmember) (Telephone number Attested by: - Designated body signed (month, day, year) If the designating body limits the time period during which an area is an economic revitilization 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 or 4.5 Namely: (see -tables below) Year of Deduction Five (5) Year Percentage Ten (10) Year Percentage 1st 100% 1 W/o 2nd 95% 95% 3rd 80% 90% 4th 65% 85% 5th 50% 80% 6th 70% 7th 55% 8th 40% 9th 30% 1 Oth 25% Year of Deduction Three (3) Year Deduction Six (6) Year Deduction Ten (10) Year Deduction 1st 100% 100% t00% 2nd 66% 85% 95% 3rd 33% 66% 801/6' 4th 50% 65% 5th 34% 50% 6th 17% 40% 7th 30% 8th 20% 9th 1 Qy. 10th 5% Transilwrap Plastics Co., Inc. 300 Industrial Parkway Richmond, IN 47374 Personal Property Tax Information 8. Anticipated Capital Expenditures Projected In -Service Machinery (Description) Cost Date Extrusion Coating Line 12 CO.Extrusion Feed System $ 90,000 Jun-96 Extrusion Coating Line 2 Auto Die 150,000 Jun-96 Extrusion Coating Line 12 3-1/2" Screw 30,000 Jan-97 Extrusion Coating Line 12 Die 175,000 Jun-96 Extrusion Coating Cut-off Knife 10,000 Jan-97 Extrusion Coating Process Improvement Line 12 50,000 Jan-97 Extrusion Coating Process Improvement Line 2 30,000 Jan-97 Extrusion Coating New Extrusion Coating Line 4,000,000 Jan-98 Slitting Packing Department Conveyers 50,000 Jan-97 Slitting New Slitter 225,000 Jun-97 Slitting Trim Removal System 90,000 Jan-97 Slitting Qick Change Equipment 50,000 Jan-97 Sheet Extrusion Line 3 New Ban -ell & Screw 40,000 Jun-96 Sheet Extrusion Line 3 Temperature Control System 18,000 Jun-96 Sheet Extrusion Blending/Grinding/Material handling system 225,000 Jun-96 Sheet Extrusion Spare Roll for Sheet Extrusion Lines 3 & 17,000 Jun-96 Sheet Extrusion Rewinding Unit 125,000 Jan-97 Sheet Extrusion Line 3 Cooling Chamber 40,000 Jan-97 Sheet Extrusion Line 3 Gauging System 85,000 Jan-97 Sheet Extrusion 72" Rosenthal 70,000 Jan-97 Sheet Extrusion Line 3 Corona Treater 20,000 Jun-96 Sheet Extrusion on-line Shear System 45,000 Jan-98 Sheet Extrusion Gear Pump 60,000 Jan-98 Sheet Extrusion Spare Roll 20,000 Jan-97 Sheet Extrusion Die Cart 25,000 Jan-97 Sheet Extrusion Square Cutter Upgrade 20,000 Jan-97 Sheet Extrusion Material Handling Enhancements 70,000 Jan-98 Sheet Extrusion New Product Development 25,000 Jan-97 Material Handling Equipment 300,000 Jan-97 Small Lathe 6,000 Jun-96 Exhaust for Lathe & Welder Table 6,000 Jun-96 Vertical Bandsaw 2,500 Jan-97 Machinery Analyzer 20,000 Jan-97 Engraving Machine 2,300 Jan-98 Drill Press 2,500 Jun-96 Rebuild of 12' Lathe 27,000 Jun-96 Tig Welder 2,500 Jan-97 Reroll Automated Reroller 150,000 Jan-97 Total Future Machinery Capital Purchases $ 6,373,800 66567056. 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