Explanation
Background: This legislation authorizes the Director of Development to amend the City's Enterprise Zone Agreement with Unico Alloys and Metals ("Unico"). In drafting the Enterprise Zone Agreement document, an inadvertent error was made in listing the years for commencing and ending the tax exemptions. Section 1 of the Enterprise Zone Agreement correctly allows the schedule for the project investment to extend from August 2004 through September 2009. This reflects the investment timing Unico proposed in its Enterprise Zone Agreement Application. Section 4 of the Agreement, however, mistakenly states that any tax abatement must commence by 2005 and terminate by the end of 2012. Without amending the agreement, Unico will be unable to obtain the majority of the agreed upon tax abatement. This amendment will provide for a tax abatement period that may commence as late as 2010 and extend as late as 2015. This amendment will not change the number of years of tax abatement (6) and the percent rate (60%).
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Enterprise Zone Agreement with Unico Alloys and Metals to allow the tax abatement to commence as late as 2010 and extend as late as the end of 2015.
Body
WHEREAS, the Columbus City Council approved an Enterprise Zone Agreement with Unico Alloys and Metals ("Unico") on July 21, 2004 by Ordinance No. 1356-2004, and the Enterprise Zone Agreement ("EZA") was entered into effective August 2, 2005; and
WHEREAS, the EZA provides for a 60% /6-year tax abatement on project investment, including real property improvements, new machinery & equipment, new furniture & fixtures, and new inventory; and
WHEREAS, Section 1 of the EZA allows the investment period to extend to September 2009 but Section 4 of the EZA erroneously provides that the real and personal property tax exemptions must commence not later than tax return year 2005 and must not extend beyond tax return year 2012; and
WHEREAS, for Unico to receive the full benefit of its tax abatement as intended by the City, the tax exemptions for real property should be allowed to commence no later than tax year 2010 and to extend through tax year 2015 and the tax exemptions for personal property should be allowed to commence no later than tax return year 2010 and extend no later than tax return year 2015; and
WHEREAS, both the City and Unico wish to amend the existing EZA to allow Unico to receive the expected tax abatement on the project investment as agreed upon; 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 Enterprise Zone Agreement with Unico Alloys and Metals by allowing the tax exemptions for real property to commence no later than tax year 2010 and to extend through tax year 2015 and allowing the tax exemptions for personal property to commence no later than tax return year 2010 and to extend through tax return year 2015.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.