Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (hereinafter "Agreement") with Rapid MR International, LLC (hereinafter "Project") effective February 9. 2007. Columbus City Council approved the Agreement by Ordinance 1567-2006, passed October 2, 2006, 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 2, 2006 and for seven (7) consecutive full taxable years beginning January 1, 2008 based on the lease of a 6,000 square foot building, an investment of $305,000, and the creation of 11 new permanent full-time positions.
The Annual Reporting documents were sent to Project on April 26, 2010. Project contacted the City by telephone on April 30, 2010 with a request to amend the start date as per the Agreement to begin January 1, 2010 and continue for seven (7) consecutive full taxable years through 2016. The completed annual report materials were received by the City on May 24, 2010 and the annual monitoring fee was transmitted on June 1, 2010. On July 7, 2010 Project contacted the city via email with a request to withdraw from the Agreement as they have requested the same from the State of Ohio as a result of internal restructuring.
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 Rapid MR International, LLC; to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an ...
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