Explanation
BACKGROUND: The Director of the Department of Development is requesting authorization to enter into an Enterprise Zone Agreement on behalf of the City with FlightSafety International, Inc. & FlightSafety Textron Aviation Training LLC (and, referred to as the “Enterprise"). The Ohio Enterprise Zone Law Section 5709.62(C) of the Ohio Revised Code authorizes the City to enter into a Council-approved tax abatement agreement between the City and qualifying companies.
FlightSafety International, Inc. is the world’s premier professional aviation training company and supplier of flight simulators, visual systems, and displays to commercial, government, and military organizations. FlightSafety International, Inc. provides more than a million hours of training each year to pilots, technicians, and other aviation professionals. The company also operates the world’s largest fleet of advanced full flight simulators in its Learning Centers, which are located in the United States, Canada, France, Japan, South Africa, and the United Kingdom.
FlightSafety Textron Aviation Training, LLC is an organization formed by FlightSafety International, Inc. and TRU Simulation and Training Inc. in 2019, and now provides training to the operators of Beechcraft, Cessna, and Hawker aircraft at 17 Learning Centers around the world using a fleet of 89 full flight simulators.
FlightSafety International, Inc. & FlightSafety Textron Aviation Training LLC (FlightSafety) are proposing to invest a total project cost of approximately $44,084,667.00, which includes $7,260,000.00 in real property improvements, $32,816,667.00 in machinery & equipment, and $4,008,000.00 in furniture & fixtures to expand its existing 117,501 square foot Learning Center. The proposed expansion will accommodate up to six (6) new flight simulators and additional classroom space by expanding the facility 30,000 square feet. The Enterprise will retain one hundred and sixty-two (162) full time positions with an associated annual payroll of $18,616,296.00 and proposes to create thirty-five (35) net new full time equivalent positions with an associated annual payroll of approximately $3,290,000.00 at 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 (the “Project Site”).
The Director of the Department of Development is recommending Columbus City Council approve a 75%/10-year Enterprise Zone tax abatement on real property improvements made by the Enterprise at the Project Site, in consideration of creating the New Employees.
The Columbus City School District has been advised of this project.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with FlightSafety International, Inc. & FlightSafety Textron Aviation Training LLC (the "Enterprise") for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the Enterprise investing a total project cost of approximately $44,084,667.00, the retention of one hundred and sixty-two (162) full time positions with an associated annual payroll of $18,616,296.00, and the creation of thirty-five (35) net new full-time permanent positions with an estimated annual payroll of approximately $3,290,000.00 at the proposed Project Site. ($0.00)
Body
WHEREAS, the Columbus City Council authorized the designation of the City of Columbus Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2690-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002;0225-03 in 2003; 0032-2012 in 2012; 1442-2020 in 2020, 0279-2021 in 2021; and 0736-2022 in 2022; and
WHEREAS, the Director of the Development Department of the State of Ohio ("ODOD") has determined that the Columbus Enterprise Zone (the "ZONE"), as amended by the aforementioned Ordinances, continues to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code. The Director of ODOD has recertified this Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003, August 19, 2003, April 3, 2012, September 18, 2020, May 20, 2021, and most recently on May 17, 2022 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, FlightSafety International, Inc. is the world’s premier professional aviation training company and supplier of flight simulators, visual systems, and displays to commercial, government, and military organizations. FlightSafety provides more than a million hours of training each year to pilots, technicians, and other aviation professionals. The company also operates the world’s largest fleet of advanced full flight simulators in its Learning Centers, which are located in the United States, Canada, France, Japan, South Africa, and the United Kingdom; and
WHEREAS, FlightSafety Textron Aviation Training, LLC is an organization formed by FlightSafety International, Inc. and TRU Simulation and Training Inc. in 2019, and now provides training to the operators of Beechcraft, Cessna, and Hawker aircraft at 17 Learning Centers around the world using a fleet of 89 full flight simulators; and
WHEREAS, the Enterprise has submitted a proposal ("Proposal") to invest a total project cost of approximately $44,084,667.00, which includes $7,260,000.00 in real property improvements, $32,816,667.00 in machinery & equipment, and $4,008,000.00 in furniture & fixtures to expand its existing Learning Center by 30,000 square feet. The proposed expansion will accommodate up to six (6) new flight simulators and additional classroom space at 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 (the “Project Site”); and
WHEREAS, the Enterprise anticipates that the Project will create thirty-five (35) net new full time equivalent positions with an associated annual payroll of approximately $3,290,000.00 (“New Employees”), while retaining one hundred and sixty-two (162) positions with an associated annual payroll of $18,616,296.00; and
WHEREAS, after reviewing and investigating the Proposal submitted by the Enterprise, the Director of the Department of Development believes that the Enterprise has demonstrated it is qualified by financial responsibility and business experience to create and preserve employment opportunities in the Columbus Enterprise Zone and improve the City's economic climate; and
WHEREAS, the Director of the Department of Development is recommending Columbus City Council approve a 10-year, 75% abatement on the assessed valuation of the Project Site due to expansion of the Facility, to incentivize the Enterprise to expand the existing Learning Center in the City's far East corridor; and
WHEREAS, the Development Director has notified the Columbus City School District of the Project; and
WHEREAS, the City desires to enter into an agreement with the Enterprise in order to incentivize economic growth and create employment opportunities for its citizens, and for the preservation of public health, peace, property and safety; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Columbus City Council, having reviewed the proposal, finds that the Enterprise is qualified by financial responsibility and business experience to create and preserve employment opportunities in the City of Columbus Enterprise Zone and improve the City's economic climate pursuant to Revised Code Section 5709.62(C).
SECTION 2. That City Council finds and determines (1) that the Enterprise will create, or cause to be created, the New Employee positions in the State and City; (2) that the Project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) that receiving the aforementioned tax abatement is a critical factor in the decision by representatives for FlightSafety International, Inc. & FlightSafety Textron Aviation Training LLC, the Enterprise hereunder, to go forward with constructing the Project.
SECTION 3. Based on this determination, Columbus City Council approves and authorizes a 10-year, 75% abatement on the increase in assessed valuation of real property on the Project Site, contingent upon the Enterprise investing approximately $7,260,000.00 in real property improvements to expand the existing Learning Center at 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794, the retention of one hundred and sixty-two (162) full time positions with an associated annual payroll of $18,616,296.00, and the creation of thirty-five (35) net, new full-time permanent positions at the Project Site with an estimated annual payroll of approximately $3,290,000.00
SECTION 4. Contingent on the sale and recorded transfer of ownership, the Director of the Department of Development, for and in the name of the City, is authorized to enter into an Enterprise Zone Agreement with the Enterprise in a form substantially similar to the one attached hereto as Exhibit "A" with such changes, amendments or edits thereto, that are not inconsistent with the terms of this Ordinance, or adverse to the City. Such authorized amendment includes assignment of the Agreement from the Enterprise to a Related Member as defined in R.C. Section 5709.61(W), or to a Successor Enterprise as defined by R.C. Section 5709.61(Y). The Director of the Department of Development also is authorized to execute any other agreements, or sign any documents necessary to effectuate the Agreement and the Exemption provided therein, and approved as to Form by the City Attorney, if required.
SECTION 5. That the City and the Enterprise must execute the attached Enterprise Zone Agreement within ninety (90) days of this Ordinance's passage, or this Ordinance, and the authorization to enter into the tax abatement agreement, is null and void.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.