Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Superconductive Components, Inc. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) requires the City to enter into a Council-approved agreement between the City and participating companies.
Superconductive Components, Inc. plans to invest $1,804,000 create 15 (fifteen) full-time jobs and relocate and retain 19 full-time positions to accommodate expansion.
The Department of Development recommends a 50%/6 year tax abatement on new machinery & equipment, new furniture & fixtures and new inventory. The proposal is consistent with Columbus Tax Incentive Policy under Edge City projects.
The Hilliard City School District has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with Superconductive Components, Inc. for a tax abatement of fifty percent (50%) on new machinery & equipment, new furniture & fixtures and new inventory for a period of six 6 years in consideration of a proposed $1,804,000 investment in real and personal property, the creation 15 (fifteen) new full-time jobs and the relocation and retention of 19 (nineteen) full-time positions.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and
WHEREAS, the Ohio Development Department approved this designation under State of Ohio enterprise law, by letter dated June 12, 1985; and
WHEREAS, Superconductive Components, Inc. plans to invest $1.8 million in real property improvements, machinery & equipment, furniture & fixtures and inventory to accommodate relocation and expansion; and
WHEREAS, the relocation and expansion will add approximately $1.8 million in investment within the City; and
WHEREAS, the relocation and expansion will create 15 (fifteen) new full time jobs and relocate and retain 19 (nineteen) full time positions; and
WHEREAS, the City desires to enter into such a binding, formal agreement in order to foster economic growth; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to enter into an Enterprise Zone Agreement with Superconductive Components, Inc. and to provide therewith an exemption of fifty percent (50%) on new machinery & equipment, new furniture & fixtures and new inventory for a term of six (6) taxable years in association with the project's proposed $1,8 million investment;
Section 2. That this ordinance shall take effect and be in force from and after the earliest period permitted by law.