HomeMy Public PortalAbout020-2014 - Tax Abatement - B&F Plastics - EquipmentORDINANCE NO. 20-2014
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; 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:
I. 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-I 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
B&F Plastics, Inc.
Current Jobs: 96
Jobs Retained: 5
Jobs Created: 0
Estimated New Value: $550,000.00
Dated: May 14, 2014
Passed and adopted this day of(,c�� 2014, by the Common
Council of the City of Richmond, Indiana.
r-
Miller
ATTEST:
�'-fI�aren Chasteen, IAMC, MMC)
President
PRESENTED to the Mayor of the City of Richmond, Indiana, this,/, day of _ �� , 2014,
at 9:00 a.m.
l
1
(Karen IAMC MMC
( )
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this day of
2014, at 9:05 a.m.
ayor
(Sarah L. Hutton)
ATT ST:
aren Chasteen, IAMC, MMC)
STATEMENT OF BENEFITS
r�l�i�Q��®���,
PERSONAL PROPERTY
State Form 51764 (R3 i 12-13)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS
FORM S13-1 / 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.
7. 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
5. Fora Form SB-1/PP 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•-
•
Name of taxpayer
Name of contact person
B & F PLASTICS, INC
BRUCE R UPCHURCH
Address of taxpayer (number and street, city, state, and ZIP code)
Telephone number
540 N. 8TH STREET, RICHMOND, IN
( 765 ) 962-6125
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
COMMON COUNCIL OF THE CITY OF RICHMOND, IN
10-1984, 11-1991
Location of property
County
DLGF taxing district number
540 N. 8TH STREET, RICHMOND
WAYNE
RICHMOND CORP
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment.
START DATE
COMPLETION DATE
(Use additional sheets if necessary)
Manufacturing Equipment
05/14/2014
12131/2014
REPLACEMENT PROJECT LINE #1 AND #2
SEE ATTACHED LIST OF PROPOSED 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
96 9,565,000 5 120,000 0 0
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
EQUIPMENT
R & D EQUIPMENT
LOGIST DIST IT EQUIPMENT
EQUIPMENT
COST of the property is confidential.
COST
ASSESSED
COST
ASSESSED
COST
ASSESSED C
COST
ASSESSED
VALUE
VALUE
VALUE
VALUE
Current values
3,927,671
1,294,770
Plus estimated values of proposed project
550,000
220,000
Less values of any property being replaced
112,500
36,000
Net estimated values upon completion of project
4,365,171
1,478,770
SECTION• . OTHER BENEFITS
PROMISED
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits:
SECTION•
I hereby certify that the representations in this statement are true.
Signature of aalihoT a epresentativ
Date signed (month, day, year)
5/14/2014
Printed name of authorized represent live
Title
BRUCE R UPCHURCH
PRESIDENT
Page 1 of 2
FOR USE OF :•D
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; es ❑ No
2 . Installation of new research and development equipment; ❑ Yes B110
3 . Installation of new logistical distribution equipment. ❑ Yes �
4 . Installation of new information technology equipment; ❑ Yes L 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) �� f✓�D�Ni��� ztd ^ �/ �/
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 9-lear 2 2-'Vear 3 [Tear 4 D mar 5 (see below ')
K2- Year 6 Year 7 2-Year 8 [}Xr 9 UWear 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 totality of benefits is sufficient to justify the deduction described above.
Ap rov sign r d le a fhorized member of designating body)
Telephone number
Date signed (month, d y, year)
2
I
rinted nam of ut zed member of designating body
Name o fesignating body n
Attested �1(tiatua title of attester)
Printed ame of attester
q F ,-
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
L Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
B & F PLASTICS, INC
540 N. 8TH STREET, RICHMOND, IN 47374 CONTACT: BRUCE
The information requested on this supplement to form SB-1 must be completed and submitted
along with your SB-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 $ 1 1 — 15
2. Average hourly wage for projected new positions $ l 1 • — 15
3. Average hourly health insurance benefit $ 2 . 3 3
1. The length of the abatement you are requesting 10
(A 1-10 year abatement may be requested for real estate improvements and manufacturing equipment.)
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
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
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) and family members. Please present in the
form of an hourly rate computed using the annual cost per eligible employee divided by 2080 hours.
-,?. JJ--
(Authorized Signature and Title) (Date)
UPCHURCH
B & F PLASTICS, INC
540 N, 8TH STREET
RICHMOND, IN 47374
LINE #1 AND #2 REPLACEMENT PROJECT
ESTIMATED COMPLETION DATES 5/14/2014 - 12/31/2014
PLASTIC SHEET EXTRUDER, MOTOR/DRIVCE WITH CAB, SCREEN CHANGER, ADAPTERS & HEATERS, DIES,
ROLLS, ROLL STAND, DRIVERS, GEAR BOXES, PUMP STATION & CONVEYOR, ROLL STANDS, REBUILT SHEAR,
AND ADDITIONAL SUPPORT EQUIPMENT,
TOTAL COST $ 550,000
PURCHASE OF EQUIPMENT: WITHIN THE UNITED STATES
ORDINANCE NO. 65- 2013
A SPECIAL ORDINANCE ESTABLISHING DEDUCTION SCHEDULES
FOR PROPERTY OWNERS OBTAINING DEDUCTIONS FROM
ASSESSED VALUE OF CERTAIN PROPERTY WITHIN AN
ECONOMIC REVITALIZATION AREA
WHEREAS, Pursuant to Indiana Law, I.C. 6-1.1-12.1 et. seq., the Common Council of
the City of Richmond, Indiana may find that a particular area within the
city is an Economic Revitalization Area which provides as an economic
development incentive certain property tax deductions for the
redevelopment or rehabilitation of real property or the installation of new
manufacturing equipment; and
WHEREAS, The Common Council has previously adopted Resolution No. 10-1984
which designates certain areas in the City as Economic Revitalization
Areas and sets forth certain procedures for an owner to obtain certain
deductions therein; and
WHEREAS, Resolution No. 10-1984 has previously been amended to add other areas
as an ERA; making definition changes to the original ordinance, setting
forth the time periods in which a deduction is allowed, and establishing
other procedures for obtaining deductions (see Resolutions 2-1987, 11-
1989, I 1-1991, 3-1996, Ordinances 72-1996, 90-1996, 113-1997, 19-
2000, 29-2006, 31-2007, and 76-2011); and
WHEREAS, Indiana law has previously allowed the owner of real property and
personal property located within an economic revitalization area to request
a deduction over a one (1) to ten (10) year period and has previously
established the abatement deduction schedules for real property deductions
and personal property deductions; and
WHEREAS, Effective July 1, 2013, Indiana Code (IC) 6-1.1-12.1-1 et seq. requires a
designating body to establish an abatement deduction schedule for each
deduction including the percentage of the deduction for each year the
deduction is granted not to exceed 10 years; and
WHEREAS, Ordinance 76-2011 provides criteria for the establishment of alternate
abatement deduction schedules; and
WHEREAS, Pursuant to IC 6-1.1-12.1-17(b), Common Council desires to establish
deduction schedules that parallel the deduction schedules previously
outlined in IC 6-1.1-12.1 et. seq. (see P.L.112-2012 §27 and P.L.6-2012
§41), for businesses expanding or relocating in economic revitalization
areas in Richmond not utilizing the criteria outlined in ordinance 76-2011.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Richmond, Indiana, that deduction schedules for personal property and real estate
deductions permitted by IC 6-1.1-12.1 et. seq. that do not utilize the alternative abatement
deduction schedule outlined in Ordinance 76-2011 are set forth as follows:
Real Property Deductions
1. For deductions allowed for a one (1) year period:
Year 1 100%
2. For deductions allowed for a two (2) year period:
Year 1 100%
Year 2 50%
3. For deductions allowed for a three (3) year period:
Year 1 100%
Year 2 66%
Year 3 33%
4. For deductions allowed for a four (4) year period:
Year 1 100%
Year 2 75%
Year 3 50%
Year 4 25%
5. For deductions allowed for a five (5) year period:
Year 1 100%
Year 2 80%
Year 3 60%
Year 4 40%
Year 5 20%
6. For deductions allowed for a six (6) year period:
Year 1 100%
Year 2 85%
Year 3 66%
Year 4 50%
Year 5 34%
Year 6 17%
7. For deductions allowed for a seven (7) year period:
Year 1 100%
Year 2 85%
Year 3 71 %
Year 4 57%
Year 5 43%
Year 6 29%
Year 7 14%
8. For deductions allowed for a eight (8) year period:
Year 1
100%
Year 2
88%
Year 3
75%
Year 4
63%
Year 5
50%
Year 6
38%
Year 7
25%
Year 8
13%
9. For deductions allowed for a nine (9) year period:
Year 1
100%
Year 2
88%
Year 3
77%
Year 4
66%
Year 5
55%
Year 6
44%
Year 7
33%
Year 8
22%
Year 9
11 %
10. For deductions allowed for a ten (10) year period:
Year 1
100%
Year 2
95%
Year 3
80%
Year 4
65%
Year 5
50%
Year 6
40%
Year 7
30%
Year 8
20%
Year 9
10%
Year 10
5%
Personal Property Deductions
1. For deductions allowed for a one (1) year period:
Year 1 100%
2. For deductions allowed for a two (2) year period:
Year l 100%
Year 2 50%
3. For deductions allowed for a three (3) year period:
Year 1 100%
Year 2 66%
Year 3 3 3 %
4. For deductions allowed for a four (4) year period:
Year 1 100%
Year 2 75%
Year 3 50%
Year 4 25%
5. For deductions allowed for a five (5) year period:
Year 1 100%
Year 2 80%
Year 3 60%
Year 4 40%
Year 5 20%
6. For deductions allowed for a six (6) year period:
Year 1 100%
Year 2 85%
Year 3 66%
Year 4 50%
Year 5 34%
Year 6 25%
7. For deductions allowed for a seven (7) year period:
Year 1 100%
Year 2 85%
Year 3 71 %
Year 4 57%
Year 5 43%
Year 6 29%
Year 7 14%
8. For deductions allowed for a eight (8) year period:
Year 1 100%
Year 2 88%
Year 3 75%
Year 4 63%
Year 5 50%
Year 6 38%
Year 7 25%
Year 8 13%
9. For deductions allowed for a nine (9) year period:
Year 1 100%
Year 2 88%
Year 3 77%
Year 4 66%
Year 5 55%
Year 6 44%
Year 7 33%
Year 8 22%
Year 9 11 %
10. For deductions allowed for a ten (10) year period:
Year 1 100%
Year 2 90%
Year 3 80%
Year 4 70%
Year 5 60%
Year 6 50%
Year 7 40%
Year 8 30%
Year 9 20%
Year 10 10%
PASSED AND ADOPTED this day o �3, by the Common
Council of the City of Richmond, Indiana.
President
La -parker
AT ST ` rk
Karen Chasteen, IAMC, MMC
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of
2013, at 9:00 a.m.
`� I -� �lerk
Karen Chasteen, IAMC, MMC
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
A day of A/c ell , 2013, at 9:05 a.m.
Mayor
(Sarah L. Hutton)
ATTES • (Ci
Karen Chasteen, IAMC, MMC