Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to dissolve the existing Jobs Creation Tax Credit Agreement (JCTCA) with Daifuku America Corporation. Columbus City Council approved the Jobs Creation Tax Credit Agreement (JCTCA) by Ordinance No. 1604-97 on June 30, 1997. The project site is a facility located 6700 Tussing Road. The Ohio Tax Credit Authority terminated Daifuku's Jobs Tax Credit Agreement on July 31, 2000 due to lack of performance. The City of Columbus cannot maintain a Jobs Tax Credit Agreement with a company whose companion agreement has been terminated by the State of Ohio.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to dissolve the existing Jobs Creation Tax Credit Agreement (JCTCA) with Daifuku America Corporation with or without the written consent of Daifuku America Corporation; and to declare an emergency.
Body
WHEREAS, pursuant to Section 718.08 O.R.C. (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, pursuant to Section 122.17 O.R.C., the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting taxpayers new job creation tax credits against the taxpayers corporate franchise or income tax which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, the Columbus City Council approved a Jobs Creation Tax Credit Agreement (JCTCA) for Daifuku America Corporation on June 30, 1997 by Ordinance No. 1604-97; and
WHEREAS, the Ohio Tax Credit Authority terminated the Jobs Creation Tax Credit Agreement on July 31, 2000 of Daifuku America Corporation due to non-compliance; and
WHEREAS, the City has determined that Daifuku America Corporation has not met the job creation requirement as indicated in the Jobs Creation Tax Credit Agreement (JCTCA); and
WHEREAS, the City has determined that the company's business needs and the Jobs Creation Tax Credit Agreement (JCTCA) are no longer compatible;
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to dissolve the existing Jobs Creation Tax Credit Agreement (JCTCA) with Daifuku America Corporation with or without the written consent of Daifuku America Corporation, all for the preservation of the public health, peace, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to dissolve the Jobs Creation Tax Credit Agreement (JCTCA) between the City and Daifuku America Corporation with or without the written consent of Daifuku America Corporation.
Section 2. That for the reasons stated in the preamble hereto, which hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.