City of Columbus - File #: 0916-2011

• File #: 0916-2011
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 6/6/2011
• In control: Development Committee
• On agenda: 6/27/2011
• Final action: 6/28/2011
• Title: To dissolve the Job Creation Tax Credit Agreement between the City of Columbus and Chasm Industries Ohio, Inc.; to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an emergency.

Date	Ver.	Action By	Action	Result
6/28/2011	1	MAYOR	Signed
6/28/2011	1	CITY CLERK	Attest
6/27/2011	1	Columbus City Council	Approved	Pass
6/27/2011	1	COUNCIL PRESIDENT	Signed
6/10/2011	1	Dev Drafter	Sent to Clerk's Office for Council
6/7/2011	1	Dev Drafter	Sent for Approval
6/7/2011	1	DEVELOPMENT DIRECTOR	Reviewed and Approved
6/7/2011	1	Dev Drafter	Sent for Approval
6/7/2011	1	CITY ATTORNEY	Reviewed and Approved

Explanation

BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit ("JCTC") Agreement (hereinafter "Agreement") with Chasm Industries Ohio, Inc. effective May 22, 2006. Columbus City Council approved the Agreement by Ordinance 1587-2005, passed October 24, 2005, and granted a non-refundable tax credit allowed against the tax imposed under Article 9, Chapter 361 of the Columbus City Codes (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a taxable year from new employees, as that term was defined in Section 4 of the Agreement, commencing October 24, 2005 and for ten (10) consecutive years thereafter based on the lease of a 156,641 square foot building, an investment of $3.5M, the retention of 21 employees, and the creation of 100 new permanent full-time positions.

As Chasm Industries Ohio, Inc. failed to comply with the Report Year 2008 annual reporting, prior to the mailing of the Report Year 2009 materials (which were mailed to all other JCTC projects on April 26, 2010) research was undertaken on Chasm Industries Ohio, Inc. which resulted in the finding that Chasm Industries Ohio, Inc. was listed as a "Receivership Client" of the international law firm Winston & Strawn LLP under their category of "Distressed Mergers and Acquisitions," which indicated that Winston & Strawn LLP represented First Avenue Partners, Richland Investors, Oxford BioScience Fund, and Chrysalis Partners in the purchase of the assets of Chasm Industries Ohio, Inc. along with several other entities.

As Chasm Industries Ohio, Inc. has been out of compliance with the terms of the Agreement having failed to submit reporting materials for Report Year 2008, and as Chasm Industries Ohio, Inc. has been acquired by a third party which is not party to the Agreement with the process for assignment in Section VII of the Agreement not having been followed, this lack of required reporting, the change in ownership and the ...