Explanation
BACKGROUND: The 2011 Columbus Tax Incentive Review Council (TIRC) reviewed the WB Sports of Columbus, LLC Enterprise Zone project on August 18, 2011, and recommended that the City dissolve the Enterprise Zone Agreement (EZA #023-09-02, hereinafter "Agreement") between the City and WB Sports of Columbus, LLC (hereinafter "Enterprise"). The City concurs with the recommendation of the TIRC.
Columbus City Council approved the Agreement by Ordinance 0872-2009, adopted July 6, 2009. The Agreement was entered into effective September 15, 2009 and granted a 75%/10-Year abatement on real property improvements with a commitment of $2,800,000 in real property investment and the creation of 33 new permanent full-time jobs within three years following the execution of the agreement with a payroll of $5,600,000 related to the construction of a new medical office facility of approximately 15,000 square feet on parcel number 610-213822 located at 8068 North High Street within the Columbus North Enterprise Zone (Zone #393 - Note: The Ohio Department of Development miscoded the zone number as "023" (City of Columbus Enterprise Zone) instead of "393"). The project was expected to begin September 2009 and all real property improvements were expected to be completed by December 31, 2010. Twelve (12) of the new full-time jobs were to be created by the end of 2011 and, twenty-one (21) more by year end 2012, for a total of thirty-three (33). No real property tax exemption was to commence after 2011 nor extend beyond 2020.
As of the TIRC review on August 18, 2011, the City reported that the real estate improvement investment time frame as set forth in the Agreement expired at the end of 2010, that no such investment has been undertaken, nor does Enterprise have any immediate plan to do so. Additionally, it was reported to the TIRC that as of the date of the TIRC, Enterprise was tax delinquent on their real property taxes in the amount of $89,069.48. No further reporting or communication was received from Enterprise prior to the TIRC. The TIRC found Enterprise to be out of compliance and tax delinquent.
The TIRC recommended that the Agreement be dissolved.
As application has not been made through the submittal of the Form DTE-24, Enterprise has derived no benefit from the abatement and thus there is no repayment of exempted or credited taxes from prior years to be sought by the City.
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 between the City of Columbus and WB Sports of Columbus, LLC; 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 WB Sports of Columbus, LLC ("Enterprise") by Ordinance 0872-2009 on July 6, 2009; and
WHEREAS, the EZA grants Enterprise a 75%/10-Year abatement on real property improvements; and
WHEREAS, the EZA requires Enterprise to invest $2,800,000 in real property improvements, and create 33 new full-time jobs with an annual payroll of $5,600,000 related to the construction of an approximately 15,000 square foot medical office facility at 8068 North High Street (parcel number 610-213822); and
WHEREAS, as per the review by the 2011 Columbus Tax Incentive Review Council (TIRC) on August 18, 2011, it was reported that the real estate improvement time frame as set forth in the Agreement had expired as of December 31, 2010 and that Enterprise had not undertaken and completed the agreed upon investment; and
WHEREAS, it was reported to the TIRC that Enterprise has no immediate plans to undertake this agreed upon real estate improvement investment; and
WHEREAS, it was also reported to the TIRC that as of the date of the TIRC, Enterprise was tax delinquent on their real property taxes in the amount of $89,069.48; and
WHEREAS, the TIRC found Enterprise to be tax delinquent and in a state of non-compliance in that Enterprise had missed the real estate investment deadline as set forth in the EZA with no immediate plans to fulfill that commitment; and
WHEREAS, the TIRC recommended that the EZA be dissolved; and
WHEREAS, the City concurs with the TIRC recommendation and desires to dissolve the EZA effective December 31, 2010; 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 this agreement in order for this dissolution to be legislated prior to the end of 2011 so that the dissolution of the EZA can be reported to the necessary local and state agencies prior to the end of calendar year 2011, 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 WB Sports of Columbus, LLC Enterprise Zone Agreement as of December 31, 2010, with 2010 as the final tax year for any tax exemption.
Section 2. That the Director of Development is hereby directed to notify the necessary local and state agencies of any changes to the WB Sports of Columbus LLC 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.