The URL can be used to link to this page

Home My Public Portal About085-1996 Determining the amount of Assistance to be paid to the Urban Enterprise AssocORDINANCE NO. 85-1996 A SPECIAL ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA DETERMINING THE AMOUNT OF ASSISTANCE TO BE PAID TO THE URBAN ENTERPRISE ASSOCIATION OF RICHMOND, INC. BY ZONE BUSINESSES RECEIVING A CREDIT UNDER I.C. 4-4-6.1 WHEREAS, an enterprise zone (Zone) has been designated within the corporate boundaries of the City of Richmond, Indiana, by the Indiana Enterprise Zone Board (Board), pursuant to I.C. 4-4-6.1-3; and WHEREAS, on August 2, 1993 ( Ordinance No. 62-1993), as a part of the process of redesignation of the Zone, the Common Council of the City of Richmond, Indiana (Council) approved the redesignation application of the Urban Enterprise Association of Richmond, Inc. (UEA), the entity which, pursuant to I.C. 4-4-6.1-5, oversees and coordinates development activities within the Zone; and WHEREAS, the redesignation application of the Zone incorporated a five-year strategic plan which presumed the receipt of current levels of assistance received by the UEA from Zone businesses receiving a credit, including, but not limited to, the inventory tax credit, under I.C. 4-4-6.1; and WHEREAS, House Enrolled Act No. 1084 enacted by the General Assembly of the State of Indiana, and effective as law July 1, 1996, requires the participation of a municipal legislative body such as the Council in certain activities of the UEA including the determination of the amount of assistance to be paid by any Zone business receiving a credit under I.C. 4-4-631 and the process of disqualifying a Zone business from eligibility for all credits and incentives available to Zone businesses; and WHEREAS, pursuant to I.C. 4-4-6.1-4, a member of the Council serves as a member of the UEA Board of Directors; and WHEREAS, the Council recognizes the expertise of the UEA in administering programs within the Zone and recognizes and respects its experience in working with and securing the compliance of businesses within the Zone in connection with such programs. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Richmond, Indiana as follows: SECTION 1. It is hereby determined that each Zone business shall be required to pay to the UEA as assistance to the UEA under I.C. 4-4-6.1-2, an annual amount equal to twenty-five percent (25%) of any credit received by such business under I.C. 4-4-6.1 for the preceding year. It is the present intent of the Common Council that the level of assistance hereby established shall be in effect until December 31, 1999. SECTION 11. The Council shall, upon the recommendation of the UEA, disqualify a Zone business from Zone benefits and incentives if that business has not assisted the UEA as provided herein. SECTION 111. Any recommendation made by the UEA to the Council for the disqualification of a Zone business from Zone benefits and incentives (Disqualification) shall be accompanied by a report detailing efforts made by the UEA to resolve the issue of the nonpayment of assistance to the UEA. Prior to making its recommendation to the Council, the UEA Committee must: (1) Contact the Zone business by an initial letter, certified mail, return receipt requested, which shall: (A) outline Zone responsibilities with respect to the payment of assistance to the UEA, as provided herein; (B) request a verified written summary of the Zone tax benefits and incentives that Zone business has received, and an explanation of the use of those benefits and incentives by the Zone business no later than fifteen (15) days from receipt of the initial letter; and (C) request a meeting between the Zone business and the UEA at which Zone benefits, incentives, and responsibilities will be discussed by the UEA and the Zone business; (2) Offer to allow business to pay required assistance in installments; and (3) Undertake such additional efforts the UEA determines useful in resolving the issue of nonpayment of assistance. SECTION IV. Upon its receipt of the USA's recommendations for Disqualification, the Council shall refer the same to the Council's attorney for preparation of an ordinance disqualifying a Zone business from eligibility for all credits and incentives available to Zone businesses (Disqualification Ordinance), a notice as provided in Section V and certified mail envelope for mailing the same. The Disqualification Ordinance shall set forth the facts on which the Disqualification is based. SECTION V. Upon the filing of the Disqualification Ordinance, the City Clerk shall send a copy of the same, by certified mail, return receipt requested, to the business at the address provided in the tax records of Wayne County and to the businesses Zone address, if that differs. The Clerk shall also enclose with the Disqualification Ordinance sent to the affected Zone business the following notice: Be advised that the enclosed ordinance has been filed with the Common Council of the City of Richmond to disqualify (name of business) from all credits and incentives available to Zone businesses. Public hearing will be held on this ordinance on (date) at (time) at (location). You are invited to appear at this public hearing and present testimony and evidence to the Richmond Common Council as to why it should not pass this ordinance. SECTION VI. Within five (5) days of the passage of such a Disqualifying Ordinance by the Council and its approval by the Mayor of the City of Richmond, the City Clerk shall provide a certified copy of the Disqualification Ordinance to the UEA Director who shall cause the same to be sent to the Indiana Enterprise Zone Board, the Indiana Board of Tax Commissioners, the Wayne County Auditor, and the Indiana Department of Revenue within thirty (30) days of the passage of the Disqualification Ordinance. SECTION VI1. Disqualification of a Zone business shall be effective beginning with the taxable year in which the Disqualification Ordinance is passed. SECTION V III. A Zone business disqualified pursuant to a Disqualification Ordinance shall be disqualified from Zone benefits and incentives for one (1) year following the date of Disqualification. A Zone business disqualified pursuant to a Disqualification Ordinance may, no sooner than one (1) year following the date of Disqualification, petition the Council for reinstatement of benefits. A copy of the petition shall be forwarded to the UEA by the Common Council, for review and recommendation to the Council. In the event that the Council approves the petition, benefits may be reinstated retroactively to the date of the petition. In the event the Council does not approve the petition, the Zone business may submit another petition for reinstatement of benefits no sooner than one (1) year following the date of the denied petition. If the year following the date of Disqualification would be after the Zone expires under law, the Zone business will be disqualified for the previous year and be subject to repayment of any Zone benefits and incentives received in that year. SECTION IX. The business that is the subject of a Disqualification ordinance, and its authorized representatives, may review and examine the records of the UEA and Council concerning the recommendation of Disqualification prior to the public hearing on the Disqualification Ordinance. Pursuant to I.C. 4-4-6.1-2.5(b), the Zone businesses' tax records are confidential and not subject to public disclosure under I.C. 5-14-3 and the same shall retain their confidential nature notwithstanding the procedures described herein. SECTION X. If any one or more of the provisions contained in this ordinance shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this ordinance shall be construed as if such invalid, illegal or unenforceable provision was not contained herein. SECTION XI. This ordinance shall be in full force and effect from and after its passage by the Common Council and proval by the Mayor. Passed and adopted this day o ULL1996, by the Common Council of the City of Richmond, Indiana. President (Geneva Allen) ATTEST: V" Lt \,City Clerk (Norma chroeder) �2ET(1 D to the Mayor of the City of Richmond, Indiana, this day of 1996, at 9:00 a.m. 't _S,.City Clerk (Norm, chroeder) APPROVED me' Den s Andrews, Mayo] 2_ day of : ' E ti 1996, at 9:05 ATTESIM-(N4on-nahroeder) City Clerk for CITY OF RICHMOND DEPARTMENT OF LAW 50 NORTH FIFTH STREET•RICHMOND, INDIANA 47374 PHONE (317) 983-7220eFAX (317) 962-7024 September 19, 1996 Common Council City of Richmond Dear Council Member: DENNIS ANDREWS Mayor ROBERT L. BEVER City Attorney STEPHEN H. RABE Assistant City Attorney I am writing this letter to clarify the issues surrounding Ordinance No. 85-1996. Businesses located within the Enterprise Zone receive a tax credit towards the inventory tax. In order to receive this credit, the Indiana General Assembly has provided that businesses must pay a contribution to the Urban Enterprise Association of Richmond (UEA). Historically, this contribution has been in the amount of twenty-five percent (25o) of the credit received by each business. This rate was in effect when the UEA's redesignation application was approved by this Council (Ordinance No. 62-1993). This money is used by the UEA for activities such as loans to businesses within the Zone, the "paint -up -fix up" program within the Zone, scholarships and job placement services for residents of the Zone, assistance to Main Street and the Neighborhood Clearinghouse Association, and other special events and projects. Although Council may change this rate, the main issue is not the rate but the lack of a disqualification procedure for businesses that refuse to contribute to the UEA. Without a disqualification procedure, there is no way to ensure that businesses receiving the zone tax benefits, will contribute. The procedure used to disqualify such businesses from receiving Enterprise Zone tax benefits is the primary focus of this ordinance. Currently, there is no such procedure, and many important UEA activities are thus at risk unless businesses receiving these benefits realize the benefits can be lost. I hope this helps clarify the purpose of this ordinance. Thank you. Sincerely, Stephen H. Rabe SHR/mis