Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Tarrier Foods Corp. and Tarrier Holdings, Inc. 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.
Tarrier Foods Corp. (Tarrier Foods) is a privately owned company that began in Columbus in 1978. The company now carries a large variety of products that includes candies, salad toppings, ground stir-ins/toppings, granolas and roasted nuts. Tarrier Foods is now one of the largest candy crushers in the U.S. and sells solely to food distributors nationwide, with some international sales.
The company currently operates out of a facility at 3915 Zane Trace Drive. The new project will involve the acquisition of a 152,800 square foot facility at 2700 International St. for $3 million. The building will be owned by Tarrier Holdings, Inc. and the real estate entity will also invest $3 million to renovate the facility. Tarrier Foods will purchase $200,000 in machinery and equipment, as the operating entity. A total of 33 jobs will be retained and relocated to the new facility, reflecting a payroll of approximately $1.26 million. Tarrier Foods will create a total of 17 new permanent full-time positions with an estimated payroll of $436,800.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. This proposal is consistent with the Columbus Tax Incentive Policy under Central City projects.
The Columbus City Schools 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 enter into an Enterprise Zone Agreement with Tarrier Foods Corp. and Tarrier Holdings, Inc. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a proposed investment of $3 million, retention of 33 jobs and creation of 17 new permanent full-time positions.
Body
WHEREAS, the Columbus City Council authorized the designation of the 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, 2609-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 in 2003; and
WHEREAS, the Director of the Development Department 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 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Tarrier Holdings, Inc. plans to invest approximately $3 million in real property acquisition and $3 million in real property improvements on Parcel Number 560-233421; and
WHEREAS, Tarrier Foods will invest approximately $200,000 in machinery and equipment and will be the primary tenant for the project; and
WHEREAS, Tarrier Foods will retain 33 full-time positions with an annual payroll of approximately $1.26 million; and
WHEREAS, Tarrier Foods will create 17 new permanent full-time positions with an annual payroll of approximately $436,800; and
WHEREAS, the City is encouraging this project because of plans to redevelop urban commercial property in the central city; and
WHEREAS, the City desires to enter into such a binding formal agreement in order to foster economic growth 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 City hereby finds and determines that the project will (1) retain 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 Tarrier Foods Corp. and Tarrier Holdings, Inc. to go forward with the project expansion.
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 Development is hereby authorized and directed to enter into and execute an Enterprise Zone Agreement with Tarrier Foods Corp. and Tarrier Holdings, Inc. 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 $3 million for building acquisition, $3 million for building renovations, $200,000 in machinery and equipment, retention of 33 full-time employees with an annual payroll of approximately $1.26million, and the creation of 17 new permanent full-time positions with an annual payroll of approximately $436,800.
Section 4. That the City of Columbus Enterprise Zone Agreement is signed by Tarrier Foods Corp. and Tarrier Holdings, Inc. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.