Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement and a Job Creation Tax Credit Agreement with The Coca-Cola Company. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) and The Ohio Tax Credit legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter into a Council-approved agreement between the City and a participating company.
The Department of Development proposes to enter into an Enterprise Zone Agreement for a tax abatement on real property improvements of seventy-five percent (75%) for a period of ten (10) years and a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of (six) 6 years with The Coca-Cola Company. The company is proposing to expand its' Columbus Syrup Plant by investing approximately $120 million and creating 35 new permanent full-time positions to accommodate its' advanced manufacturing lines and automated storage and retrieval systems.
The Coca-Cola Company is a leader and innovator in the beverage industry. The Coca-Cola Company, headquartered in Atlanta, Georgia, is the world's largest beverage company. The Coca-Cola Company operates in more than 200 countries and markets a portfolio of more than 3,000 beverage products including sparkling drinks and still beverages such as, waters, juices, juice drinks, teas, coffees, sports drinks, energy drinks, and milk-and soy-based beverages.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with The Coca-Cola Company for a tax abatement on real property improvements of seventy-five percent (75%) for a period of ten (10) years and a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of (six) 6 years; and to declare an emergency. (AMENDED BY ORD. 0085-2011 PASSED 1/24/2011)
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2609-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 in 2003; and
WHEREAS, the Director of the Development Department of the State of Ohio determined that the Columbus Enterprise Zone as amended by the aforementioned Ordinances continued to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code and recertified said Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these taxpayers job creation tax credits against their corporate franchise tax or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, pursuant to Section 718.15 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, contingent upon the City granting an Enterprise Zone tax abatement and a Job Creation Tax Credit, The Coca-Cola Company will expand its operations at the Columbus Syrup Plant by investing approximately $40 million in real property
improvements, $80 million in machinery and equipment and create 35 new permanent full-time positions, increase job opportunities and strengthen the economy of the city; and
WHEREAS, the Jobs Creation Tax Credit is being offered contingent upon the Ohio Department of Development offering a Jobs Creation Tax Credit to The Coca-Cola Company; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in The Coca-Cola Company decision to go forward with the expansion project in Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future expansion and growth of The Coca-Cola Company at the project site; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus Department of Development in that it is immediately necessary to enter into an Enterprise Zone Agreement and a Jobs Creation Tax Credit Agreement in order to allow the company to begin construction of the facility and to create jobs as soon as possible for the preservation of public health, peace, prosperity and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax abatement and tax credit is a critical factor in the decision by The Coca-Cola Company to go forward with the project expansion.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute an Enterprise Zone Agreement of seventy-five percent (75%) for a period of ten (10) years and a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of six (6) years with The Coca-Cola Company.
Section 4. That the City of Columbus Enterprise Zone and the Job Creation Tax Credit Agreements are signed by The Coca-Cola Company within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 5. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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 the passage if the Mayor neither approves nor vetoes the same.