Explanation
BACKGROUND: The need exists to amend the Enterprise Zone and Jobs Creation Tax Credit legislation with DSW Inc. and 4300 Venture 34910 LLC. Columbus City Council approved an EZA and a JCTCA by Ordinance No. 1364-2006 on July 24, 2006. The legislation authorized the Director of Development to enter into an Enterprise Zone Agreement with DSW Inc. and 4300 Venture 34910 LLC (lessor) for a real estate tax abatement of 75% for a period of ten years and a personal property tax abatement of 75% for a period of three years and to enter into an agreement with DSW Inc. for a 65%/8 year Jobs Creation Tax Credit in consideration of a proposed $6,500,000 investment in real property improvements, the investment of $2,000,000 in personal property, the retention of 195 full-time permanent jobs and the creation of 75 full-time permanent jobs.
The project site is currently warehouse space located at 4030 East Fifth Avenue and is approximately 100 yards from their current headquarters site located at 4150 East Fifth Avenue. The project will convert 147,000 square feet of current warehouse space into a new headquarters. This amendment is needed so as to clarify the fact that (i) some of the retained jobs may from time to time be physically located at the DSW facility that is adjacent to the project site, and (ii) that the agreed upon number of jobs that DSW Inc. shall create or cause to be created will be created through DSW Inc., its subsidiaries, and/or affiliates.
This legislation is submitted as an emergency in order to allow DSW to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance No. 1364-2006, passed on July 24, 2006, that authorized the Director of Development to enter into agreements with DSW Inc. and 4300 Venture 34910 LLC for tax abatements in order to clarify the jobs retention requirement and that the agreed upon number of jobs will be created through DSW Inc., its subsidiaries, and/or affiliates. ; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved the authorization for the Director of Development to enter into an Enterprise Zone Agreement (EZA) and Jobs Creation Tax Credit Agreement (JCTCA) with DSW Inc. and 4300 Venture 34910 LLC on July 24, 2006 by Ordinance No. 1364-2006; and
WHEREAS, the Enterprise Zone Agreement (EZA) would provide a 75%/10 year incentive on real property improvements and a 75%/3 year incentive on personal property investment to DSW Inc. and 4300 Venture 34910 LLC and the Jobs Creation Tax Credit Agreement (JCTCA) would grant a 65%/8 year incentive to DSW Inc.; and
WHEREAS, DSW Inc. and 4300 Venture 34910 LLC agreed to build a new headquarters for DSW Inc. at 4030 East Fifth Avenue in Columbus, a location approximately 100 yards from the current headquarters of DSW Inc. located at 4150 East Fifth Avenue by converting the 147,000 square feet of warehouse space into the new headquarters for DSW Inc.; and
WHEREAS, DSW Inc. and 4300 Venture 34910 LLC agreed to invest approximately $6,500,000 in real property improvements within the City and invest in approximately $2,000,000 in personal property within the City; and
WHEREAS, DSW Inc. agreed to retain 195 (one hundred ninety-five) full-time permanent jobs and create 75 (seventy-five) new full time permanent jobs; and
WHEREAS, a need exists to amend the legislation, Ordinance Number 1364-2006, to reflect the fact that DSW shall create or cause to be created (e.g., through its subsidiaries or affiliates) 75 (seventy-five) new full time permanent jobs; NOW, THEREFORE and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to amend the Enterprise Zone and Jobs Creation Tax Credit legislation with DSW Inc. and 4300 Venture 34910 LLC, created via Ordinance No. 1364-2006, all for the preservation of public health, peace, property and safety, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to amend the existing legislation (Ordinance No. 1364-2006) that authorized the Director of Development to enter into an agreement with DSW Inc. and 4300 Venture 34910 LLC (lessor) for a real estate tax abatement of seventy-five percent (75%) for a period of ten (10) years and a personal property tax abatement of seventy-five percent (75%) for a period of three (3) years, and a 65%/8 year Jobs Creation Tax Credit, in consideration of a proposed $6,500,000 investment in real property improvements, the investment of $2,000,000 in personal property (machinery & equipment, furniture & fixtures, and stand-alone computers), to reflect that DSW Inc will retain 195 (ninety-five) full-time permanent jobs, and that DSW Inc. shall create or cause to be created (e.g., through its subsidiaries or affiliates: DSW Shoe Warehouse, Inc., eTailDirect LLC, Brand Technology Services LLC, Brand Care Services LLC) 75 (seventy-five) new full time permanent jobs.
Section 2. That the City of Columbus Enterprise Zone Agreement be signed by DSW Inc. and 4300 Venture 34910 LLC within ninety (90) days of passage of this ordinance, or this ordinance and the abatements authorized herein are null and void.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof the 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.