Explanation
BACKGROUND: The need exists to amend Ordinance Number 1515-2010, approved by Columbus City Council on October 25, 2010. That ordinance authorized the Director of the Department of Development to enter into an Enterprise Zone Tax Abatement Agreement with The Coca-Cola Company (Coca-Cola) on real property improvements of seventy-five percent (75%) for a period of ten (10) years and a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of six (6) years in consideration of the company's proposed expansion of its' Columbus Syrup Plant by investing approximately $120 million and creating 35 new permanent full-time positions to accommodate its' advanced manufacturing lines and automated storage and retrieval systems. This amendment will allow Coca-Cola to extend the 90 day period needed to execute the Enterprise Zone and Job Creation Tax Credit Agreements to 180 days after passage of this ordinance.
The Coca-Cola Company, headquartered in Atlanta, Georgia, is the world's largest beverage company. The Coca-Cola Company operates in more than 200 countries and markets a portfolio of more than 3,000 beverage products including sparkling drinks and still beverages such as, waters, juices, juice drinks, teas, coffees, sports drinks, energy drinks, and milk-and soy-based beverages.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend ordinance 1515-2010, passed by Columbus City Council on October 25, 2010, to extend the signing deadlines for the Enterprise Zone and Job Creation Tax Credit Agreements with The Coca-Cola Company; and to declare an emergency.
Body
WHEREAS, the need exists to amend Ordinance 1515-2010, passed October 25, 2010, authorizing the Director of Development to enter into an Enterprise Zone Tax Abatement Agreement with The Coca-Cola Company (Coca-Cola) on real property improvements of seventy-five percent (75%) for a period of ten (10) years and a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of six (6) years; and
WHEREAS, additional time is needed to review and execute the Enterprise Zone Agreement and the Job Creation Tax Credit Agreement; and
WHEREAS, this amendment will extend the deadline for the company to sign the Agreements from 90 days after passage of the original ordinance, 1515-2010, to 180 days after passage of this ordinance; and
WHEREAS, contingent upon the City granting an Enterprise Zone tax abatement and a Job Creation Tax Credit, Coca-Cola will expand its operations at the Columbus Syrup Plant by investing approximately $40 million in real property improvements, $80 million in machinery and equipment and create 35 new permanent full-time positions, increase job opportunities and strengthen the economy of the city; and
WHEREAS, the Job Creation Tax Credit is being offered contingent upon the Ohio Department of Development offering a Job Creation Tax Credit to Coca-Cola; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in Coca-Cola decision to go forward with the expansion project in Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future expansion and growth of Coca-Cola at the project site; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, Department of Development in that it is immediately necessary to amend ordinance 1515-2010 to extend the signing deadlines for the Enterprise Zone and Job Creation Tax Credit Agreements with The Coca-Cola Company, all for the preservation of public health, peace, prosperity and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Ordinance 1515-2010 is hereby amended to change the deadline of the signing of the Enterprise Zone and Job Creation Tax Credit Agreements from 90 days after passage of Ordinance Number 1515-2010 to 180 days after passage of this ordinance.
Section 2. The City of Columbus Enterprise Zone and Job Creation Tax Credit Agreements will be signed by The Coca-Cola Company within 180 days after passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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 the passage if the Mayor neither approves nor vetoes the same.