Explanation
BACKGROUND: The need exists to amend Ordinance Number 1915-03 passed by Columbus City Council on July 28, 2003 and to amend the agreement with Roxane Laboratories Inc. and its affiliates. Ordinance Number 1195-02, passed by Council on July 29, 2002, authorized the Director of the Department of Development to enter into an Enterprise Zone Agreement with Roxane Laboratories Inc, and its affiliates for a tax abatement of seventy five percent (75%) on the value of personal property and real property improvements for ten (10) taxable years. Roxane Laboratories, Inc's plans include the expansion of its current facility on Wilson Road with the addition of new manufacturing lines. The expansion includes an investment of over $224 million, the creation of ninety-five (95) permanent full-time jobs, and the retention of over nine hundred (900) full-time jobs. On July 28, 2003, Columbus City Council passed Ordinance No. 1915-03 to authorize the Director of the Department of Development to amend the Enterprise Zone Agreement with Roxane Laboratories, Inc. Due to the growth of Roxane Laboratories, there was insufficient space to complete the project on Wilson Road as described in the agreement. Additional space was needed at 700 Manor Park Road Columbus, Ohio. The additional space added $3.2 million to the project expansion. The company is requesting an additional amendment because additional renovation is needed at 700 Manor Park Drive. The additional renovation will add an additional $10 million to the project expansion. The total cost of the project, including all additions, is $237 million.
The Southwestern School District has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the amendment for Roxane Laboratories and to amend the amended agreement to the Enterprise Zone Agreement between the City of Columbus and Roxane Laboratories Inc. and its affiliates; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance No. 779-85, dated April 22, 1985; and
WHEREAS, the Columbus City Council, on July 29, 2002 passed Ordinance Number 1195-02 authorizing the Director of Development to enter into an Enterprise Agreement with Roxane Laboratories, Inc. and its affiliates for a tax abatement of 75% (seventy five percent) for 10 (ten ) taxable years in consideration of Roxane Laboratories Inc. investing $224 million, creating 95 (ninety-five) permanent full-time jobs, and the retention of over 900 (nine hundred) full-time jobs; and
WHEREAS, the Columbus City Council, on July 28, 2003 passed Ordinance Number 1915-03 authorizing the Director of Development to amend the Enterprise Zone Agreement with Roxane Laboratories Inc. to include the 700 Manor Park Road an additional investment of $3.2 million; and
WHEREAS, Roxane Laboratories, Inc is requesting the Department of Development to amend the amendment and the amended agreement to reflect an additional investment of $10 million in real property improvement at 700 Manor Park Drive; and
WHEREAS, the City desires to enter into such an 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 amend the amendment and the amended agreement for Roxane Laboratories, Inc and its affiliates 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 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 incentive is a critical factor in the decision by Roxane Laboratories, Inc. to go forward with the project.
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 to amend the amendment and the amended agreement with Roxane Laboratories, Inc. and its affiliates to include an additional investment of $10 million in real property improvement at 700 Manor Park Drive.
Section 4. 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.