Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (hereinafter "Agreement") with Limited Technology Services, Inc. and MAST Industries, Inc. (hereinafter "Project") effective August 8, 2003. Columbus City Council approved the Agreement by Ordinance 1084-2003, passed June 9, 2003 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 June 10, 2003 and for seven (7) consecutive full taxable years thereafter based on the lease of a 10,500 square foot building, an investment of $1.3 million, and the creation of 51 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 signed by Project on April 28, 2010 and received by the City on April 29, 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.
Project did not comply. 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 in an expedient manner.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Job Creation Tax Credit Agreement between the City of Columbus and Limited Technology Services, Inc. and MAST Industries, Inc.; t...
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