Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (hereinafter "Agreement") with DeCrane Aircraft Holdings, Inc. (hereinafter "Project") effective January 26, 2006. Columbus City Council approved the Agreement by Ordinance 1768-2005, adopted November 14, 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 percent (60%) 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 November 14, 2005 and for seven (7) consecutive full taxable years beginning with calendar year 2006 based on the lease of a 5,455 square foot building, an investment of $650,000, the retention of 8 employees, and the creation of 3 new permanent full-time positions.
Because Project had failed to submit an Annual Report for Report Year 2008, the Annual Report documents for both Report Year 2009 and Report Year 2008 were sent to Project via Certified Mail on April 26, 2010. Project received the materials as indicated by the return of the Domestic Return Receipt Card sign by Project on April 30, 2010 and received by the City on May 3, 2010. The cover memo included in the mailing directed that Project submit monitoring fees totaling $2,000 and reporting materials for both reporting years by the reporting deadline of May 24, 2010, and should that not occur the Agreement would be dissolved.
On May 10, 2010 a letter was received from Project indicating that the Ohio Department of Development has effectively cancelled their Job Creation Tax Credit Agreement with the State of Ohio as Project has ceased operations at their Columbus site. This being, the Agreement needs to be dissolved.
This legislation is presented as an emergency measure so that the dissolution of the Agreement can be reported to the necessary local and state agencies...
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