Explanation
BACKGROUND: This legislation authorizes the Director of Development to terminate the existing Enterprise Zone Agreement and Jobs Creation Tax Credit Agreement with Buckeye Steel Castings Company and end the associated incentives provided for in the related agreements. Columbus City Council approved the Enterprise Zone Agreement and the Jobs Creation Tax Credit Agreement by Ordinance No. 1452-01 on September 21, 2001. The project site is the historical Buckeye Steel Castings facility located at 2211 Parsons Avenue on the City's Southside.
The company filed for Chapter 11 Bankruptcy on 12/20/02. Buckeye Steel Castings Company notified the City by letters dated 12/03/02 and 1/24/03 that it would be unable to fulfill its obligations as defined by the terms of the agreements.
After review and discussions with the company, both the Department of Development and the company agreed that terminating the Enterprise Zone Agreement and the Jobs Creation Tax Credit Agreement is the appropriate course of action.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to terminate the existing Enterprise Zone Agreement and Jobs Creation Tax Credit with Buckeye Steel Castings Company with or without the written consent of Buckeye Steel Castings Company; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved an Enterprise Zone Agreement and a Jobs Creation Tax Credit Agreement for Buckeye Steel Castings Company on September 21, 2001 by Ordinance No.1452-01; and
WHEREAS, the City entered into a Enterprise Zone Agreement and a Jobs Creation Tax Credit Agreement with Buckeye Steel Castings Company on January 8, 2002; and
WHEREAS, Buckeye Steel Castings Company filed for Chapter 11 Bankruptcy on December 20, 2002 and the company has stated by letters to the City dated December 3, 2002 and January 24, 2003 that it will not be able to fulfill its obligations under the Agreements; and
WHEREAS, the City has determined that termination of the Enterprise Zone Agreement and the Jobs Creation Tax Credit Agreement is the correct course of action; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to authorize the Development Director to terminate the existing Enterprise Zone Agreement and Jobs Creation Tax Credit with Buckeye Steel Castings Company with or without the written consent of Buckeye Steel Castings Company in order to preserve the public health, peace, property, 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 terminate the Enterprise Zone Agreement and Jobs Creation Tax Credit Agreement for Buckeye Steel Castings Company with or without the written consent of Buckeye Steel Castings Company.
Section 2. That for the reasons stated in the preamble thereto, which is hereby 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 days after passage if the Mayor neither approves nor vetoes the same.