Explanation
BACKGROUND: The need exists to amend Ordinance Number 1195-02, passed by Columbus City Council on July 29, 2002, and to amend the existing agreement with Roxane Laboratories Inc. Inc. and its affiliates. Ordinance Number 1195-02 authorized the Director of the Department of Development to enter into an Enterprise Zone Agreement with Roxane Laboratories Inc. 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. Due to the growth of Roxane Laboratories Inc., there is insufficient space to complete the project on Wilson Road as described in the agreement. Additional space is being considered at 700 Manor Park Road Columbus, Ohio. The company would like to renovate approximately 42,000 square feet at an existing manufacturing facility on Wilson Road and an additional 288,100 square feet at a warehouse and distribution facility on Manor Park Road. The renovation of the additional 288,100 square feet would also include an additional investment of $1.1 million in real property improvements and $2.1 million in machinery and equipment. Roxane Laboratories Inc. is asking Columbus City Council to extend the incentive to the Manor park location.
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 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 Ohio Development Director approved this designation under State of Ohio Enterprise Zone law, by letter, dated June 12, l985; and
WHEREAS, Roxane Laboratories Inc., Inc. desires to expand its current facility located on Wilson Road and Manor Park Road in Columbus, Ohio; and
WHEREAS, the granting of the tax abatement by the City for the proposed expansion project will create 95 full-time permanent jobs, increase opportunities for employment and strengthen the economy of the city; and
WHEREAS, it is required by law to enter into a binding, formal agreement in order to receive State of Ohio incentives; and
WHEREAS, the City desires to enter into such an agreement in order to foster economic growth; and
WHEREAS, receiving the tax abatement from the City is a critical factor in Roxane Laboratories Inc., Inc.'s decision to go forward with the project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to amend the existing Enterprise Zone Agreement with Roxane Laboratories Inc 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., Inc. to go forward with the project.
Section 2. That the City Council hereby finds and determines 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 amend the existing Enterprise Zone Agreement with Roxane Laboratories Inc., Inc. to include a 75%/10 year tax abatement on personal property and real property improvements at 700 Manor Park Road.
Section 4. That in the reasons stated in the preamble hereto, which is hereby made a part thereof, this Ordinance is 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.