Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to amend the Columbus Urban Growth Corporation Enterprise Zone Agreement to eliminate the requirement to create 42 part-time permanent jobs. This modification follows the recommendation made by the Tax Incentive Review Council (the "TIRC") on August 21, 2007.
The project is located at 1407 and 1393 Cleveland Avenue (Four Corners). Columbus City Council approved the Columbus Urban Growth Corporation Enterprise Zone Agreement by Ordinance No. 1100-00 on May 15, 2000. City Council approved three amendments to the Agreement, the most recent by Ord. No. 1781-2006 approved on October 16, 2006. The Columbus Urban Growth Corporation Enterprise Zone Agreement as amended (the "EZA"), calls for $1.8 million in real property investment and the creation of 41 full-time permanent jobs. The project has satisfied the investment requirement and had created 40 jobs as of June 2007. The EZA also calls for the creation of 42 part-time permanent jobs. Part-time jobs, however, are not part of the State or City reporting requirements for Enterprise Zone projects and it has never been the City's practice or intent to take part-time jobs into account in determining project compliance. In view of this, and the project's good performance with the other terms of the EZA, the TIRC viewed the project as being in substantial compliance.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Columbus Urban Growth Corporation Enterprise Zone Agreement to eliminate the requirement to create 42 part-time permanent jobs; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved the Columbus Urban Growth Corporation Enterprise Zone Agreement by Ordinance No. 1100-00 on May 15, 2000 and subsequently approved three amendments to the Agreement, the most recent by Ord. No. 1781-2006, approved on October 16, 2006; and
WHEREAS, the Columbus Urban Growth Corporation Enterprise Zone Agreement as amended (the "EZA") provides for a 75%/10-yr abatement on real property improvements (2001-2010); and
WHEREAS, the EZA calls for an investment of $1.8 million for additions and new construction and the project has satisfied this investment goal; and
WHEREAS, the project had created 40 of the 41 required new jobs as of June 2007, which represents 98% attainment of the EZA goal for creation of the full-time permanent jobs; and
WHEREAS, the EZA also calls for the creation of 42 part-time permanent jobs but it has been determined that the part-time jobs are not tracked or taken into account for compliance monitoring purposes and that the original intent of the project regarding employment was to create the 41 full-time permanent jobs; and
WHEREAS, the Tax Incentive Review Council (the "TIRC") has found the project to be in substantial compliance and has recommended amending the EZA to eliminate the requirement to create 42 part-time permanent jobs; and
WHEREAS, the City desires to amend the EZA to reflect the TIRC's recommendation; and
WHEREAS, an emergency exists if 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 that R.C. Section 5709.85 imposes 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 the Director of the Department of Development is hereby authorized to amend Columbus Urban Growth Corporation Enterprise Zone Agreement to eliminate the requirement to create 42 part-time permanent jobs.
Section 2. That for the reasons stated in the preamble hereto, this ordinance is hereby declared to be an emergency and shall take effect and be in force from and after its passage and approval by the Mayor or ten days if the Mayor neither approves nor vetoes the same.