Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with United Parcel Service. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) requires the City to enter into a Council-approved agreement between the City and participating companies.
United Parcel Service plans to invest $5,535,000, create 25 (twenty-five) full-time jobs and retain 702 full-time positions to accommodate expansion.
The Department of Development recommends a 65%/7 year tax abatement on new machinery and equipment. The proposal is consistent with Columbus Tax Incentive Policy under Edge City projects.
The Hilliard City School District has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with United Parcel Service for a tax abatement of sixty-five percent (65%) on new machinery & equipment for a period of seven 7 years in consideration of a proposed $5,535,000 investment in real and personal property, the creation of 25 (twenty-five) new full-time jobs and the retention of 702 full-time positions.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and
WHEREAS, the Ohio Development Department approved this designation under State of Ohio enterprise law, by letter dated June 12, 1985; and
WHEREAS, United Parcel Service plans to invest $4.8 million in real property improvements and new machinery & equipment to accommodate expansion; and
WHEREAS, the expansion will add approximately $5,535,000 in investment within the City;and
WHEREAS, the expansion will create 25 (twenty-five) new full time jobs and retain 702 full time positions; and
WHEREAS, the City desires to enter into such a binding, formal agreement in order to foster economic growth; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to enter into an Enterprise Zone Agreement with United Parcel Service and to provide therewith an exemption of sixty-five percent (65%) on new machinery & equipment for a term of seven (7) taxable years in association with the project's proposed $5,535,000 investment.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period permitted by law.