Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Enterprise Zone Agreement (EZA) with Value City Department Stores, Inc. and Northland Associates LLC and the Jobs Creation Tax Credit Agreement (JCTCA) with Value City Department Stores, Inc. Columbus City Council approved an EZA and a JCTCA by Ordinance No. 2237-2003 on October 6, 2003. The legislation authorized the Director of Development to enter into an EZA with Value City Department Stores Inc. and Northland Associates LLC for a tax abatement of seventy-five (75%) for a period of 10 (ten) years on real property improvements and personal property as well as a Jobs Creation Tax Credit of sixty percent (60%) for a period of 15 (fifteen) years with Value City Department Stores Inc. in consideration of a proposed $19.5 million investment, the retention of 548 (five hundred forty eight) full-time jobs and the creation of 110 (one hundred and ten) new full-time positions. The need exists to amend the agreements to reflect a corporate reorganization in which Retail Ventures, Inc. is the new parent holding company for three of its subsidiaries including Value City Department Stores, Inc., Shonac Corporation and Retail Ventures Services, Inc. Combined, they will own the personal property at the project site. The Enterprise Zone Agreement and Jobs Creation Tax Credit Agreement should be amended to reflect the new parent holding company as Retail Ventures Inc. and its wholly owned subsidiaries.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the existing Enterprise Zone Agreement (EZA) and Jobs Creation Tax Credit Agreement (JCTCA) with Value City Department Stores, Inc. and Northland Associates, LLC. to reflect the new parent holding company now known as Retail Ventures, Inc. and three of its subsidiaries including Value City Department Stores, Inc., Shonac Corporation and Retail Ventures Services, Inc. ; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved an Enterprise Zone Agreement (EZA) and Jobs Creation Tax Credit Agreement (JCTCA) with Value City Department Stores, Inc. and Northland Associates, LLC. on October 6, 2003 by Ordinance No. 2237-2003; and
WHEREAS, the Enterprise Zone Agreement (EZA) granted a 75%/10 year incentive on real property improvements and personal property to Value City Department Stores, Inc. and Northland Associates, LLC and the Jobs Creation Tax Credit Agreement (JCTCA) granted a 60%/15 year incentive to Value City Department Stores, Inc.; and
WHEREAS, the EZA required Value Department Stores, Inc. to invest $19.5.2 million, retain 548 full-time jobs and create 110 new full-time jobs; and
WHEREAS, the EZA and JCTCA should be amended to reflect the parent company now known as Retail Ventures, Inc and its wholly owned subsidiaries which includes Value City Department Stores, Inc., Shonac Corporation and Retail Ventures Services, Inc., 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 Agreement and Jobs Creation Tax Credit Agreement in order to preserve the public health, peace, property, safety and welfare; 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 Enterprise Zone Agreement (EZA) and the Jobs Creation Tax Credit Agreement (JCTCA) with Value City Department Stores, Inc. and Northland Associates, LLC to reflect the parent holding company now known as Retail Ventures Inc. and its wholly owned subsidiaries which includes Value City Department Stores, Inc., Shonac Corporation and Retail Ventures Services, Inc.
Section 2. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.