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HomeMy Public PortalAbout03-17-2008PROCEEDINGS OF THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA, MONDAY, MARCH 17, 2008 The Common Council of the City of Richmond, Indiana met in regular session Monday, March 17, 2008 in the Council Chambers in said City. Council President Parker presided. PLEDGE OF ALLEGIANCE PRAYER BY COUNCILOR CRUSE - NICHOLSON President Parker presided and the following business was conducted: ROLL CALL Councilors present were Howard "Jack" Elstro, Kelley Cruse - Nicholson, Bruce Wissel, Clay Miller, Bing Welch, Larry Parker, Robert Goodwin, Diana Pappin and Phil Quinn. APPROVAL OF MINUTES Councilor Miller moved to approve the minutes of the meeting of March 3, 2008, with a second by Councilor Cruse - Nicholson. Upon a vote viva voce, the motion passed. PRESENTATIONS, MEMORIALS OR REMONSTRANCES, PETITIONS AND INTRODUCTIONS, MOTIONS, RESOLUTIONS RESOLUTION NO. 1 -2008 — COMMON COUNCIL OF THE CITY OF RICHMOND RESOLUTION APPROVING THE RELOCATION OF NEW MANUFACTURING EQUIPMENT Presented by Councilor Wissel, this Resolution would allow moving the existing tax abatement (Ordinance No. 85 -2006) from 1761 Sheridan Street to the new location of TBK America, Inc. at 3700 Industries Road. This Resolution was held until April 7, 2008. This is due to the fact there must be a legal advertisement announcing a public hearing and notice given to all taxing units regarding the public hearing. COMMUNICATION FROM THE MAYOR Mayor Hutton announced that former United States President Bill Clinton will be speaking in Richmond on March 18, 3:30 PM at the No. 1 Fire Station. The public is invited. The staff of Presidential Candidate Barrack Obama has contacted the Mayor's Office and is interested in visiting Richmond also. Ms. Hutton stated if Presidential Candidate John McCain is interested, Richmond would welcome him. REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY Minutes of the February 28 and March 6, 2008 meetings were accepted as presented. REPORTS FROM DEPARTMENT HEADS, STANDING COMMITTEES, SPECIAL COMMITTEES and /or ORGANIZATIONS ■ APPOINTMENT TO URBAN ENTERPRISE ASSOCIATION BOARD — ETTA LUNDY Council President Parker opened the floor for additional nominations to fill the unexpired term of Kate Deloney on the Urban Enterprise Association Board of Directors. Councilor Wissel moved Common Council Minutes March 17, 2008 Page 2 of 8 to close the nominations and name Etta Lundy to the UEA Board with a second by Councilor Cruse - Nicholson. Upon a vote viva voce, the motion passed. MISCELLANEOUS BUSINESS ■ Council President Parker reminded members there will be a Committee of the Whole meeting March 31 at 5:30 for Intermediate Incident Command System (ICS300) training as part of the National Incident Management System training. This is mandatory. Lt. Bobby Lipps will facilitate this session. • Councilor Quinn thanked the Park Department for forwarding a breakdown of the new computer equipment reflected in Ordinance No. 10 -2008. • Mr. Parker noted the most recent brochure distributed by the Area 9 Agency and congratulated the Agency for all the work they do in the community. • Councilor Miller invited the public to Ivy Tech, McDaniel Hall on March 25, 5 PM for a meeting with the Indiana Department of Corrections. The purpose is to address recidivism rates of offenders and to assist them into successfully reintegrating into the community. IDOC seeks input and partnerships from community leaders and organizations. • Mr. Parker stated that in the future any tax abatement ordinances received the day of the Council meeting will not be heard until the following meeting without the unanimous consent of Council. • Mr. Parker reported that the repairs on Peacock Road have been partially complete. The final paving will be when weather permits. • On display in the Council Chambers and adjoining Hall were conceptual drawings of Ball State University Landscape Architect students. These exhibits reflect several areas in our Community and will be available in the Community for the next two weeks. ORDINANCES ON FIRST READING Councilor Elstro moved to suspend the rules and read Ordinance Nos. 18 & 19 -2008 on first reading by title only with a second by Councilor Cruse - Nicholson. Upon a vote viva voce, the motion passed. ORDINANCE NO. 18 -2008 - AN APPROPRIATION ORDINANCE AUTHORIZING THE SUBMITTAL, ACCEPTANCE, AND APPROPRIATION OF A GRANT FROM THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT The Clerk read Ordinance No. 18 -2008 on first reading by title only. Presented by Elijah Welch, Engineer at the Richmond Sanitary District, this Ordinance would authorize the City of Richmond to submit, accept and appropriate a grant from the Indiana Department of Environmental Management in the amount up to Forty Thousand Dollars ($40,000). The City of Richmond would be required to provide a local match, through in -kind labor and equipment usage, in an amount up to twenty -five percent (25 %) of the Forty Thousand Dollars ($40,000.00). This percentage was reduced from fifty percent (50 %) due to the fact the City has been designated a Clean Community. The City of Richmond is not required to provide a cash match to this grant. Said funds would be appropriated to purchase grass, wildflower seeds, herbicides and rent equipment for the application of the grass, wildflower seeds and herbicides in various areas in the City of Richmond. The City of Richmond is currently paying approximately $24,500 annually for upkeep of the affected areas. By using this grant to plant low maintenance native grasses, etc. the mowing costs would decrease to approximately $3,700. Common Council Minutes March 17, 2008 Page 3 of 8 Councilor Welch moved to advance Ordinance No. 18 -2008 to second reading and to suspend the rules and read by title only with a second by Councilor Pappin. Upon a vote viva voce, the motion passed. The Clerk read Ordinance No. 18 -2008 on second reading by title only. Council President Parker declared Ordinance No. 18 -2008 on second reading and public hearing. There being no comments for or against the Ordinance, Councilor Elstro moved for engrossment of Ordinance No. 18 -2008 with a second by Councilor Cruse - Nicholson. Upon a vote viva voce, the motion passed. Councilor Welch moved to advance Ordinance No. 18 -2008 to third and final reading and suspend the rules and read by title only with a second by Councilor Pappin. Upon a vote viva voce, the motion passed. The Clerk read Ordinance No. 18 -2008 on third reading by title only. Ordinance No. 18 -2008 was adopted with a 9 -0 roll call vote. ORDINANCE NO. 19 -2008 - AN ORDINANCE AMENDING ORDINANCE NO. 69 -2007, THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 (CDM Associates LLC) The Clerk read Ordinance No. 19 -2008 on first reading by title only. Presented by Tony Foster, this Ordinance is a request of CDM Associates, LLC. For a ten -year tax abatement for real estate valued at $3.5 million. Ordinance No. 19 -2008 was referred to the Tax Abatement for due diligence. ORDINANCES ON SECOND READING ORDINANCE NO. 12 -2008 — 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 (TBKAmerica) The Clerk read Ordinance No. 12 -2008 on second reading by title only. Presented by Councilor Wissel, this Ordinance is a request of TBK America, Inc. for a 7 year tax abatement for manufacturing equipment in the amount of Five Million Nine Hundred Seventy Thousand Dollars ($5,970,000). Councilor Wissel moved to amend this Ordinance to include the equipment listed in Ordinance Nos. 15 and 16 -2008 to increase the requested abatement to $6,034,400 and to strike said ordinances, with a second by Councilor Miller. Upon a vote viva voce, the motion passed. Councilor Welch moved to amend Ordinance No. 12 -2008 as amended, page 2, paragraph no. 1 under NOW, THEREFORE ... to read 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. The motion was seconded by Councilor Miller. Upon a vote viva voce, the motion passed. City Attorney Walt Chidester reminded Council this Ordinance was in presented at this meeting in amended form so a motion needs to be made to amend Ordinance No. 13 -2008 to reflect the changes in the attachment to the Ordinance packet. Councilor Welch moved to amend Ordinance No. 13 -2008 to read as follows Common Council Minutes March 17, 2008 Page 4 of 8 WHEREAS, the Common Council of the City of Richmond, Indiana (sometimes hereinafter, the "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 from the assessed value, pursuant to Indiana law, 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 is also entitled to deductions from the assessed value, pursuant to Indiana law, 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 the 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. 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; and WHEREAS, on March 14, 2008, TBK America, Inc. filed a statement of benefits with the Council on Form SB -1 1PP describing a project involving the proposed installation of new manufacturing equipment at a facility located at 3700 Industries Road, which facility is located in an economic revitalization area previously designated by the Common Council in Resolution No. 10 -1984, as amended ( "TBKA Statement of Benefits'). The TBKA Statement of Benefits revised, superceded and replaced the statement of benefits on Form SB -1 /PP previously filed by TBK America, Inc. on February 25, 2008. NOW, THEREFORE, having reviewed the TBKA Statement of Benefits, the Common Council of the City of Richmond, Indiana, now makes the following findings regarding the TBKA Statement of Benefits: 1. The estimate of the cost of the new manufacturing equipment is, reasonable for equipment of that type; 2. The estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the installation of the new manufacturing equipment; Common Council Minutes March 17, 2008 Page 5 of 8 3. The estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed installation of new manufacturing equipment; 4. Other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed installation of new manufacturing equipment; 5. The totality of benefits is sufficient to justify the deduction; and 6. The Council also finds that installation of the equipment described in the TBKA Statement of Benefits, dated March 14, 2008, must be completed within 24 months of the date this ordinance is signed by the designating body. Further, the abatement hereby approved is limited to the equipment described in the TBKA Statement of Benefits, dated March 14, 2008. THEREFORE, be it ordained by the Common Council of the City of Richmond, that the TBKA Statement of Benefits, dated March 14, 2008, is hereby approved and that TBK America, Inc. meets the requirements for property tax assessed valuation deductions as follows: MANUFACTURING EQUIPMENT— 10 YEARS TBK America, Inc. Jobs Retained: 30 (which is the combined total for the entire project as described in both the TBKA Statement of Benefits hereby approved and in the statement of benefits approved in Ordinance No. 13 -2008) Jobs Created: 30 (which is the combined total for the entire project as described in both the TBKA Statement of Benefits hereby approved and in the statement of benefits approved in Ordinance No. 13 -2008) Estimated Cost: $6,034,400 Dated: March 14, 2008 It is also hereby determined and ordained by the Common Council of the City of Richmond, Indiana that TBK America, Inc. shall be allowed deductions from the assessed value of the new manufacturing equipment described in the TBKA Statement of Benefits over a ten (10) year deduction period. Council President Parker declared Ordinance No. 12 -2008 as amended on second reading and public hearing. There being no comments for or against the Ordinance, Councilor Welch moved for engrossment of Ordinance No. 12 -2008 as amended with a second by Councilor Miller. Upon a vote viva voce, the motion passed. Councilor Welch moved to advance Ordinance No. 12 -2008 as amended to third and final reading and suspend the rules and read by title only with a second by Councilor Miller. Upon a vote viva voce, the motion passed. The Clerk read Ordinance No. 12 -2008 as amended on third reading by title only. Ordinance No. 12 -2008 as amended was adopted with a 9 -0 roll call vote. ORDINANCE NO. 13 -2008 — 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 (TBKAmerica) The Clerk read Ordinance No. 13 -2008 on second reading by title only. Presented by Councilor Wissel, this Ordinance is a request of TBK America, Inc. for a 10 year tax abatement for real estate in the amount of One Million Two Hundred Ninety Five Dollars ($1,295,000), Common Council Minutes March 17, 2008 Page 6 of 8 Council President Parker declared Ordinance No. 13 -2008 on second reading and public hearing. There being no comments for or against the Ordinance, Councilor Welch moved for engrossment of Ordinance No. 13 -2008 with a second by Councilor Miller. Upon a vote viva voce, the motion passed. Councilor Welch moved to advance Ordinance No. 13 -2008 to third and final reading and suspend the rules and read by title only with a second by Councilor Miller. Upon a vote viva voce, the motion passed. City Attorney Walt Chidester reminded Council this Ordinance was in amended form so a motion needs to be made to amend Ordinance No. 13 -2008 to reflect the changes in the attachment to the Ordinance packet. Council President Parker asked for a vote to rescind the motions to engross and advance this Ordinance to third reading. Upon a vote viva voce, the motion passed unanimously. Councilor Welch moved to amend Ordinance No. 13 -2008 to read as follows: WHEREAS, the Common Council of the City of Richmond, Indiana (sometimes hereinafter, the "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 from the assessed value, pursuant to Indiana law, 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 is also entitled to deductions from the assessed value, pursuant to Indiana law, 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 the Common Council to approve a Statement of Benefits to allow a deduction, it must make the following findings, to -wit: 7. 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. 8. 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. 9. 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. 10. 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. 11. That the totality of the benefits is sufficient to justify the deduction. 12. 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; and WHEREAS, on March 14, 2008, TBK America, Inc. filed a statement of benefits with the Council on Form SB -1 1PP describing a project involving the proposed installation of new manufacturing equipment at a facility located at 3700 Industries Road, which facility is Common Council Minutes March 17, 2008 Page 7 of 8 located in an economic revitalization area previously designated by the Common Council in Resolution No. 10 -1984, as amended ( "TBKA Statement of Benefits'). The TBKA Statement of Benefits revised, superceded and replaced the statement of benefits on Form SB -1 /PP previously filed by TBK America, Inc. on February 25, 2008. NOW, THEREFORE, having reviewed the TBKA Statement of Benefits, the Common Council of the City of Richmond, Indiana, now makes the following findings regarding the TBKA Statement of Benefits: 7. The estimate of the cost of the new manufacturing equipment is, reasonable for equipment of that type; 8. The estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the installation of the new manufacturing equipment; 9. The estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed installation of new manufacturing equipment; 10. Other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed installation of new manufacturing equipment; 11. The totality of benefits is sufficient to justify the deduction; and 12. The Council also finds that installation of the equipment described in the TBKA Statement of Benefits, dated March 14, 2008, must be completed within 24 months of the date this ordinance is signed by the designating body. Further, the abatement hereby approved is limited to the equipment described in the TBKA Statement of Benefits, dated March 14, 2008. THEREFORE, be it ordained by the Common Council of the City of Richmond, that the TBKA Statement of Benefits, dated March 14, 2008, is hereby approved and that TBK America, Inc. meets the requirements for property tax assessed valuation deductions as follows: MANUFACTURING EQUIPMENT— 10 YEARS TBK America, Inc. Jobs Retained: 30 (which is the combined total for the entire project as described in both the TBKA Statement of Benefits hereby approved and in the statement of benefits approved in Ordinance No. 13 -2008) Jobs Created: 30 (which is the combined total for the entire project as described in both the TBKA Statement of Benefits hereby approved and in the statement of benefits approved in Ordinance No. 13 -2008) Estimated Cost: $6,034,400 Dated: March 14, 2008 It is also hereby determined and ordained by the Common Council of the City of Richmond, Indiana that TBK America, Inc. shall be allowed deductions from the assessed value of the new manufacturing equipment described in the TBKA Statement of Benefits over a ten (10) year deduction period. There was a second by Councilor Miller. Upon a vote viva voce, the motion passed. Council President Parker declared Ordinance No. 13 -2008 as amended on second reading and public hearing. There being no comments for or against the Ordinance, Councilor Wissel moved for engrossment of Ordinance No. 13 -2008 as amended with a second by Councilor Welch Upon a vote viva voce, the motion passed. Common Council Minutes March 17, 2008 Page 8 of 8 Councilor Welch moved to advance Ordinance No. 13 -2008 as amended to third and final reading and suspend the rules and read by title only with a second by Councilor Miller. Upon a vote viva voce, the motion passed. The Clerk read Ordinance No. 13 -2008 as amended on third reading by title only. Ordinance No. 13 -2008 as amended was adopted with a 9 -0 roll call vote. ORDINANCE NO. 14 -2008 — 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 (Ahaus)) The Clerk read Ordinance No. 14 -2008 on second reading by title only. Presented by Councilor Wissel, this Ordinance is a request of Ahaus Tool for a 10 year tax abatement for manufacturing equipment in the amount of Three Hundred Thousand Dollars ($300,000), Council President Parker declared Ordinance No. 14 -2008 on second reading and public hearing. There being no comments for or against the Ordinance, Councilor Cruse - Nicholson moved for engrossment of Ordinance No. 14 -2008 with a second by Councilor Welch. Upon a vote viva voce, the motion passed. Councilor Welch moved to advance Ordinance No. 14 -2008 to third and final reading and suspend the rules and read by title only with a second by Councilor Pappin. Upon a vote viva voce, the motion passed. The Clerk read Ordinance No. 14 -2008 on third reading by title only. Ordinance No. 14 -2008 was adopted with a 9 -0 roll call vote. ORDINANCE NOS. 15 and 16 -2008 — 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 (TBKAmerica) These Ordinances were requests of TBK America, Inc. for tax abatements for logistical distribution equipment in the amount of Sixty Four Thousand Four Hundred Dollars ($64,400) and information technology equipment in the amount of Fifty Thousand Dollars ($50,000). Councilor Wissel moved to strike Ordinance Nos. 15 and 16 -2008 and include the requested abatement in Ordinance No. 12 -2008, with a second by Councilor Welch. Upon a vote viva voce, the motion passed. ORDINANCES ON THIRD READING - None CALL FOR ADJOURNMENT There being no further business, on a motion duly made, seconded and passed, the meeting was adjourned. S/S Larry Parker Larry Parker, President ATTEST: S/S Karen Chasteen Karen Chasteen, City Clerk