Explanation
BACKGROUND: The 2010 Columbus Tax Incentive Review Council (TIRC) reviewed the Columbus Urban Growth Corporation Enterprise Zone project on August 19, 2010, and recommended that the City should consider dissolving the Enterprise Zone Agreement (EZA #023-00-07, hereinafter "Agreement") between the City and Columbus Urban Growth Corporation (hereinafter "Enterprise"). The City concurs with the recommendation of the TIRC.
Columbus City Council (Council) authorized the execution of the Agreement by Ordinance No. 1100-2000, adopted May 15, 2000. The Agreement was entered into effective June 15, 2000 and granted a 75%/10-Year abatement on real property improvements as part of the Four Corners Project with a commitment of an investment of approximately $2.5 million. Included in this investment was $450,000 for building acquisition, $1.3 million for new construction, $500,000 for improvements to existing structures, $160,000 for machinery and equipment, $100,000 for furniture and fixtures and the creation of 62 new permanent full-time and part-time jobs. The project was to be the construction and expansion of two facilities totaling approximately 20,000 square feet located on parcel 010-006690 at 1393 Cleveland Avenue and parcel 010-012487 at 1407 Cleveland Avenue within the Columbus Central Enterprise Zone. Council amended the original legislation (Ordinance No. 1100-2000) by Ordinance No. 0644-2001, adopted April 23, 2001. Council authorized the first amendment to the Agreement by Ordinance No. 1919-2004, adopted November 1, 2004 and authorized the second amendment to the Agreement by Ordinance No. 1781-2006, adopted October 16, 2006.
Enterprise has been certified by the Ohio Secretary of State, document No. 201004700189, to have been legally dissolved as of February 15, 2010. Ownership of parcel 010-006690 at 1393 Cleveland Avenue has been held by Milan Development LLC since February 12, 2009. Ownership of parcel 010-012487 at 1407 Cleveland Avenue has been held by Columbus Metropolitan Housing Authority since October 29, 2009. Neither Milan Development LLC nor Columbus Metropolitan Housing Authority is party to the Agreement nor is there an interest by either to become party to the Agreement.
If the Agreement is dissolved, 2009 will have been the final tax year for the incentives and the City will not seek repayment of the exempted or credited taxes from prior years.
This legislation is presented as an emergency measure in order to meet the deadline under state law for City Council to vote on TIRC recommendations.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Enterprise Zone Agreement with Columbus Urban Growth Corporation; to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved an Enterprise Zone Agreement ("EZA") with Columbus Urban Growth Corporation ("Enterprise") by Ordinance No. 1100-2000 on May 15, 2000; and
WHEREAS, the EZA grants Enterprise a 75%/ 10-Year abatement on real property investment; and
WHEREAS, the EZA requires Enterprise to invest $1.8 million in real property improvements, $260,000 in personal property, and create 62 new permanent full-time and part-time jobs; and
WHEREAS, Enterprise has been certified by the Ohio Secretary of State, document Number 201004700189, to have been legally dissolved as of February 15, 2010 and the current ownership of the two parcels included in the EZA have expressed no interest in becoming party to the EZA; and
WHEREAS, the Columbus Tax Incentive Review Council ("TIRC") recommended that the EZA be dissolved; and
WHEREAS, the City concurs with the TIRC recommendation and desires to dissolve the EZA and end the tax abatement as of December 31, 2009; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to take action on the TIRC's recommendations to comply with the sixty (60) day deadline for City Council action imposed by imposed by R.C. Section 5709.85 and to preserve the public health, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Columbus City Council hereby dissolves the Columbus Urban Growth Corporation Enterprise Zone Agreement as of December 31, 2009, with 2009 as the final tax year for the exemptions.
Section 2. That the Director of Development is hereby directed to notify the necessary local and state agencies of any changes to the Columbus Urban Growth Corporation Enterprise Zone Agreement.
Section 3. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.