Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Meritex Columbus, LLC. 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.
Meritex Columbus, LLC plans to construct a 52,800 square foot facility at 1901 Dividend Dr. Columbus to accommodate expansion. The project will include an investment of $2.3 million and the creation of 60 (sixty) new full-time jobs. Meritex is a national real estate investment company that offers industrial space solutions for businesses. The principle parties are Harry G. McNelly, III-CEO and President; Tom Hotovec-Chief Financial Officer; Dan Williams-Chief Investment Officer; and Arvid Povilaitis -Chief Operating Officer.
The Department of Development recommends a 65%/7 year tax abatement on real property improvements. The proposal is consistent with Columbus Tax Incentive Policy under Core Central City projects.
The Hilliard School District has been advised of this project.
FISCAL IMPACT: No funding is required by this legislation.
Title
To authorize the Director of Development to enter into an agreement with Meritex Columbus, LLC for a tax abatement of 65% for a period of seven years in consideration of a proposed $2.3 million investment in real property improvements and the creation of 60 new jobs; and to declare an emergency.
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, Meritex Columbus, LLC plans to construct a 52,800 square foot facility to accommodate expansion; and
WHEREAS, the expansion will add approximately $2.3 million in investment within the City; and
WHEREAS, the expansion will create 60 new full-time jobs; and
WHEREAS, the City desires to enter into such a binding, formal agreement in order to foster economic growth; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with Meritex Columbus, LLC 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 enter into an Enterprise Zone Agreement with Meritex Columbus, LLC and to provide therewith an exemption of sixty-five percent (65%) on real property improvements for a term of seven (7) taxable years in association with the project's proposed $2.3 million investment.
Section 2. 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 passage if the Mayor neither approves nor vetoes the same.