Explanation
BACKGROUND:
This legislation authorizes the Director of Development to amend the existing Enterprise Zone Agreement (EZA) with Millennium Court LLC and The Invironmentalists (formerly DuPont Flooring Systems, Inc.). The EZA was approved by Columbus City Council Ordinance 2167-00 on October 16, 2000 and amended by Ordinance 1128-01 on July 16, 2001 to replace The Daimler Group Inc. with Millennium Court LLC. Millennium Court LLC is the owner of the real property at 3445 Millennium Court in the CityGate Business Park and The Invironmentalists is the anchor tenant responsible for the job goal under the EZA.
The EZA awarded the project a fifty percent (50%) exemption on real property for eight (8) taxable years (2002-2009) in return for $3.8 million investment in real and personal property, the creation of 28 new jobs and the retention of 115 existing jobs.
The Tax Incentive Review Council (TIRC) in its review of 2003 performance determined that the project has met most of its real property goal, exceeded its personal property goal, met most of its job retention goal but met 0% of its job creation goal. In addition to The Invironmentalists, another tenant, Xpedx, occupies space at the facility. The TIRC has recommended modifying the EZA to add the other tenant, Xpedx, and to allow the tenant's jobs to be counted toward the job goal under the EZA.
The Department of Development concurs with the TIRC's recommendation.
This legislation is presented as an emergency measure in order to meet the new State deadline for City Council vote on TIRC recommendations.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Enterprise Zone Agreement (EZA) with Millennium Court LLC and The Invironmentalists (formerly DuPont Flooring Systems, Inc.) by adding the tenant, Xpedx, to the EZA and allowing the Xpedx jobs at the project site to be counted toward the job goal under the EZA; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved an Enterprise Zone Agreement (EZA) for the Daimler Group Inc.
and Dupont Flooring Systems, Inc. on October 16th, 2000 by Ordinance 2167-00; and
WHEREAS,the Columbus City Council passed Ordinance 1128-01 on July 16, 2001 amending the EZA to allow the
Daimler Group Inc. to be replaced in the EZA by Millennium Court LLC; and
WHEREAS, Dupont Flooring Systems, Inc. changed its name to The Invironmentalists on September 3, 2003; and
WHEREAS, in review of 2003 performance, the City's Tax Incentive Review Council (TIRC) determined that the project
has met most of its real property goal, exceeded its personal property goal, met most of its job retention goal, but is
lacking progress in attaining the job creation goal; and
WHEREAS, it has been determined that a second tenant, Xpedx, occupies space at the project facility in addition to
The Invironmentalists; and
WHEREAS, the City's TIRC recommended on August 11, 2004 that the EZA be modified to add Xpedx and allow
the Xpedx jobs to be counted toward the job goal under the EZA; and
WHEREAS, the City concurs with the TIRC's recommendation and believes it is in the best interest of job
preservation and economic development to amend the existing EZA by adding Xpedx and allowing the Xpedx
jobs to be counted toward the job goal under the EZA; and
WHEREAS, an emergency exists in usual daily operation of the Department of Development in that it is immediately
necessary to obtain City Council's note in order to meet the new deadline under State law for voting on the TIRC
recommendations, thereby preserving the public health, prosperity, 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 the Enterprise Zone Agreement (EZA) between the City, Millennium Court LLC and The Invironmentalists (formerly DuPont Flooring Systems, Inc.) by adding the existing tenant, Xpedx, as a party to the EZA and allowing the Xpedx jobs at the project site to be counted toward the job goal under the EZA.
Section 2. That for reasons stated in the preamble thereto, which is made a part hereof, this Ordinance is declared to be an emergency measure and shall 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.