HomeMy Public PortalAbout039-2015 - Tax Abatement - CIT - Real estateCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO.39-2015
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:
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-1.
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:
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-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:
REAL ESTATE - 10 YEARS
C.I.T. Realty, LLC
Jobs Retained: 148
Jobs Created: 10
Estimated New Value: $325,000.00
Dated: May 28, 2015
Passed and adopted this �_ day o , 2015, by the Common
Council of the City of Richmond, Indiana.
V•ya R--ee , President
(Dr. Ronald Oler)
ATT"
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, thisolL day of ,
2015, at 9:00 a.m.
(Karen Chasteen, IAMC, MMC)
APPROV D by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this .2 Z day
of , 2015, at 9:05 a.m.
Mayor
/ (Sarah L. Hutton)
ATTEB+
(Karen Chasteen, IAMC, MMC)
STATEMENT OF BENEFITS
REAL ESTATE IMPROVEMENTS
y- f State Form 51767 (R6110-14) / �/✓
Prescribed by the Department of Local Government Finance
This statement is being completed for real property that qualifies under the following Indiana Code (check one box):
❑ Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4)
❑ Residentially disUessed area (IC 6-1.1-12.1-4.1)
20JIG PAY 20 17
FORM SB-1 I Real Property
PRIVACY NOTICE
Any information concerning the cost
of the property and specific salaries
paid to individual employees by the
property owner is oonfldeMiar per
INSTRUCTIONS: IC 1. -12.1-5.t.
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing kf 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 the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction.
2. The statement of benefits farm must be submitted to the designating body and the area designated an economic revitalization area before the initiation of
the redevelopment ormhablli(ation for which the person desires to claim a deduction.
3. To obtain a deduction, a Fort 3221RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty (30) days after the assessment notice Is mailed to the property owner if it was mailed after April 10. A property owner who
failed to rile a deduction application within the prescribed deadline may Ale an application between March 1 and May 10 of a subsequent year,
4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real
Property should be attached to the Form 322ME when the deduction is first claimed and then updated annually for each year the deduction Is applicable.
IC 6-1.1-12.1-5 1(b)
5. For a Form SB-f/Real Property 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/Reel Property 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
CIT Realty, LLC
Address of taxpayer (number and street, citx state, and TIP code)
2351 Production Court, Richmond, IN 47374
Name of contact person
Telephone number
E-mall address
Mike Catey
( 765 ) 966-1134
mikec@c-i-t.com
SECTION 2 LOCATION AND DESCRIPTION
OF PROPOSED PROJECT
Name of designating body
Resolution number
Richmond City Council
Location of property
County
DLGF taxing district number
2351 Production Court, Richmond, IN
Wayne
Description of real property improvements, redevelopment, or rehabilitation (use ad6lonat
sheets ifnecessary)
Estimated start date (month, day, year)
9,300 square feet building addition to existing manufacturing facility exclusively leased to Contract Industrial Tooling,
June 15, 2015
Inc.
Estimated eompte m date law^ day, yW
Note: Employment and payroll data is for Contract Industrial Tooling, Inc.
October 1, 2015
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES
AS RESULT OF PROPOSED PROJECT
Current number Salaries Number retained
Salaries Number additional Salaries
148.00 $5,400,000.00 1148.00
$5,400,000.00 10.00
$350,000.00
SECTION 4 ESTIMATED TOTAL COST AND
VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST
ASSESSED VALUE
Current values
4,441,344.00
Plus estimated values of proposed project
326.000.00
Less values of any propertybeing replaced
Net estimated values upon comple6at of project
4,766,344.00
SECTION 5 WASTE CONVERTED AND OTHER
BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other benefits
SECTION•
I hereby certify that the representations in this statement are true,
Signature of authorized ntative
Date signed (tnoni t, day, year)
L: 5 —r r$ _ /4:! 5 —
Printed name of authorized r9l6sentellive
Title
Michael Catey
Member
Page 1 of 2
FOR USE OF THE DESIGNATING :..
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed
under IC 6-1.1-12.1. provides for the following limitations:
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. Residentially distressed areas ❑ Yes ❑ No
C. The amount of the deduction applicable is limited to $
D. Other limitations or conditions (specify)
E. Number of years allowed: ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 ('see below)
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
F. For a statement of benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177
❑ 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.
We have also 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.
Approved (signature and title of authorked member of designating body)
Telephone number
Date signed (mondi, day, year)
5) 9X 3 -7
-
Printea name of member of designating body
Name of d 'rating body
r / e�
Attested nature and Otis ofattestej
Printed na a aftester
A-STr
' 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.
A. For residentially distressed areas where the Form SBA/Real Property was approved prior to July 1, 2013, the deductions established in IC
6-1.1-12.14.1 remain in effect. The deduction period may not exceed five (5) years. For a Form SB-1/Real Property that is approved after June 30,
2013, the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
(10) years. (See IC 6-1.1-12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1, 2013, the abatement
schedule approved by the designating body remains in effect. For a Form SB-1/Real Properly that Is approved after June 30, 2013, the designating
body is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1-12.1-17 below.)
1C 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 Cult -tine 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
Form SB-1A
City of Richmond, Indiana
Taxpayer Wage & Benefit Information
Company Name, Address & Contact Person:
tJ LJZ 3 1-1
The information requested on this supplement to form S13-1 must be completed and submitted
along with your SB-I 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 $ i 4 9 It
2. Average hourly wage for projected new positions $ lag 6D
3. Average hourly health insurance benefit $ , 0 1
1. The length of the abatement you are requesting �'J � l�
(A 1-10 year abatement may be requested for real estate improvements and manufacturing equipm rt.)
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 states) 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: jar 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.
(Authorized Signa a and Title) (Date)