Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing 515 Partners LLC Enterprise Zone Agreement (EZA) to extend the period for job creation to December 31, 2007.
Columbus City Council approved the EZA by Ordinance No. 881-99, adopted April 12, 1999. The project is located at 515 E. Main Street in the core central city. The tax incentive is 50% exemption on real property improvements for 10 taxable years and is scheduled to run through 2011. The project committed to invest $6.396 million in real property improvements and $196,000 in new personal property. The project has met its investment commitment.
The project committed to retain 64 jobs, and to create 19 full-time permanent jobs by April 2005. The job retention goal has been met (98%) but the project has had difficulties with job creation due the slow recovery from economic recession experienced by Design Group, Inc., the anchor tenant at the project facility. As of the end of 2003, the project had created zero (0) jobs.
The Columbus Tax Incentive Review Council recommended on August 11, 2004 that the City amend the EZA to extend the period of time for job creation and the City concurs with the TIRC's recommendation.
This legislation is presented as an emergency measure in order to meet the new deadline under State law for City Council vote on TIRC recommendations.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the 515 Partners LLC Enterprise Zone Agreement to extend the period of time allowed for meeting the job creation requirement to December 31, 2007; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved the 515 Partners LLC. Enterprise Zone Agreement (EZA) on
April 27, 1999 by Ordinance No. 881-99; and
WHEREAS, the EZA called for the 515 Partners LLC project to create 19 jobs by the second quarter of
2005; and
WHEREAS, the project has met its real and personal investment goal and 98% of its job retention goal, but is
unlikely to meet the goal of creating nineteen (19) jobs by the second quarter of 2005 as provided by the EZA; and
Whereas, the Columbus Tax Incentive Review Council (TIRC) voted on August 11, 2004 to recommend that
the City extend the period of time for the job creation to December 31, 2007; and
WHEREAS, the City concurs with the TIRC recommendation, and desires to amend the 515 Partners LLC EZA; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is
immediately necessary to obtain City Council's vote in order to meet the new deadline under State law for voting
on the TIRC recommendations, thereby preserving the public health, peace, prosperity, safety and welfare;
NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to amend the
515 Partners LLC Enterprise Zone Agreement (EZA) by extending the time for the job creation to
December 31, 2007.
Section 2. That for the reasons stated in the preamble thereto, which is made a part hereof, this Ordinance
is declared to be an emergency measure and shall 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.