Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with PEDC Property Management, Inc. and Midwest Motor Supply Co., dba Kimball Midwest. The Ohio Enterprise Zone law (Section 5709.62(C) of the Ohio Revised Code) requires the City to enter into Council-approved agreements between the City and participating companies.
PEDC Property Management, Inc. is proposing to expand their existing 226,000 square-foot facility located at 4800 Roberts Rd., Columbus, Ohio 43228 (parcel numbers: 560-193791, 560-193792, 560-273578, and 560-273579) by approximately 163,000 square feet, which Midwest Motor Supply Co. will occupy as part of a lease arrangement. The four owners of PEDC Property Management, Inc. also own Midwest Motor Supply Co.
PEDC Property Management, Inc. will invest approximately $7,800,000 in real property improvements related to new building construction, so that Midwest Motor Supply Co. will retain 307 full-time permanent positions with an associated annual payroll of approximately $18,161,000 and create 60 new full-time permanent positions with an associated new annual payroll of approximately $2,248,800.
In business since 1923, Midwest Motor Supply Co. is a major force in the industrial maintenance aftermarket. The company's product offering includes fasteners, hoses and fittings, drill bits, chemicals, electrical connectors and shop supplies. The Roberts Rd. location serves as Midwest Motor Supply Co.'s corporate office and largest distribution center. Additional distribution centers are located in Grand Prairie (Dallas), Texas and Reno, Nevada.
The Department of Development recommends an Enterprise Zone Tax Abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements for the purpose of constructing an additional 163,000 square feet of commercial space at 4800 Roberts Rd. (parcel numbers: 560-193791, 560-193792, 560-273578, and 560-273579).
The Hilliard City School District and the Tolles Career & Technical Center School District have been advised of this project. This legislation is presented as 30 day legislation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with PEDC Property Management, Inc. and Midwest Motor Supply Co., dba Kimball Midwest, for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in association with the project's proposed investment of approximately $7,800,000 toward new building construction, the retention of 307 full-time permanent positions and the creation of 60 new full-time permanent positions. (AMENDED BY ORD. 1713-2014 PASSED 7/21/2014)
Body
WHEREAS, the Columbus City Council authorized the designation of the Central Enterprise Zone by legislation, Ordinance 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinances 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2690-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; 0225-03 in 2003; and 0032-2012 in 2012; and
WHEREAS, the Director of the Department of Development of the State of Ohio determined that the Columbus Enterprise Zone as amended by the aforementioned Ordinances continued to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code and recertified said Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003, August 19, 2003 and most recently on April 3, 2012 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, PEDC Property Management, Inc. proposes to expand their existing 226,000 square-foot facility located at 4800 Roberts Rd., Columbus, Ohio 43228 (parcel numbers: 560-193791, 560-193792, 560-273578, and 560-273579) by approximately 163,000 square feet, which Midwest Motor Supply Co. will occupy as part of a lease arrangement; and
WHEREAS, PEDC Property Management, Inc. will invest a total of approximately $7,800,000 in real property improvements related to new building construction; and
WHEREAS, contingent on the City granting an Enterprise Zone Tax Abatement, Midwest Motor Supply Co. will retain 307 full-time permanent positions with an associated annual payroll of approximately $18,161,000 and create 60 new full-time permanent positions with an associated new annual payroll of approximately $2,248,800; thereby increasing job opportunities and strengthening the economy of the City; and
WHEREAS, PEDC Property Management, Inc. and Midwest Motor Supply Co. have each indicated that receiving this tax incentive from the City is crucial to their decision to advance the aforementioned expansion in Columbus; and
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the City desires to enter into such a binding formal agreement in order to foster economic growth for the preservation of the public health, property, safety and welfare; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That 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 tax abatement is a critical factor in the decision by PEDC Property Management, Inc. to expand the Roberts Rd. facility.
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 and directed to enter into and execute an Enterprise Zone Agreement with PEDC Property Management, Inc. and Midwest Motor Supply Co., dba Kimball Midwest, to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years in association with the project's proposed investment of approximately $7,800,000 toward new building construction, the retention of 307 full-time permanent positions with an associated annual payroll of approximately $18,161,000, and the creation of 60 new full-time permanent positions with an associated new annual payroll of approximately $2,248,800.
Section 4. That the City of Columbus Enterprise Zone Agreement shall be signed by PEDC Property Management, Inc. and Midwest Motor Supply Co., dba Kimball Midwest, within ninety (90) days of passage of this ordinance or this ordinance and the abatement authorized herein shall be null and void.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.