Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Allied Mineral Products, 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.
Allied Mineral Products, Inc. is a global company that was founded in 1961, headquartered in Columbus. The company is the worldwide leader in the design and manufacture of monolithic refractories and precast refractory shapes, including castables, dry vibratables, wet rammables, precast shapes, bricks/mortars, gunning materials, plastics, mica and cloth slips, plane products, fluxes, installation equipment, fiber insulation products, refractory coatings. Allied Mineral Products, Inc. offers refractory solutions and develops, manufactures and markets products for various metal melting applications. The company offers a wide variety of products, such as DRI-VIBE, MINRO-SIL, MINRO-AL, and MINRO-SIL LD refractories and compositions. The company has manufacturing facilities in Brownsville, Texas, Mexico, Australia, Russia, Turkey, China, South Africa and Italy.
Allied Mineral Products, Inc. is proposing to invest approximately $12,690,000.00, including new construction, real property improvements, machinery, equipment, furniture and fixtures, to expand its corporate headquarters and its research and development (R&D) facilities located at 2700 Scioto Parkway. With the new construction, Allied Mineral Products, Inc. plans to increase its corporate headquarters from 21,300 square feet to 56,300 square feet, and increase its R&D facility from 20,000 square feet to 29,000 square feet with the possibility of adding another 9,000 square feet. The company will create approximately 58 new full-time permanent positions with an estimated annual payroll of $1,840,000.00.
The Department of Development recommends 75%/10-year Enterprise Zone tax abatement on real property improvements.
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 the Department of Development to enter into an Enterprise Zone Agreement with Allied Mineral Products, Inc. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on new construction and real property improvements in consideration of a proposed total investment of approximately $12,690,000.00.
Body
WHEREAS, City Council subsequently amended the Columbus Enterprise Zone by Ordinance Numbers 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2249-92 and 2690-92 in 1992; 1079-94 and 1228-94 in 1994; 1274-95, 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 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 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, Allied Mineral Products, Inc. plans to invest approximately $11,240,000.00 in new construction and real property improvements on Parcel Number 560-179824; and
WHEREAS, the project to be developed by Allied Mineral Products, Inc. at the project site will consist of new construction and renovation of the company's corporate headquarters and R&D facilities; and
WHEREAS, the company is proposing to expand its corporate headquarters going from 21,300 square feet to 56,300 square feet and its R&D facility from 20,000 square feet to 29,000 square feet with the possibility of adding another 9,000 square feet, investing approximately $8,940,000.00 in new construction and $2,300,000.00 in real property improvements. Both facilities will be located on parcel number 560-179824 further known as 2700 Scioto Parkway, Columbus, Ohio 43221; and
WHEREAS, Allied Mineral Products, Inc. will create 58 new full-time permanent positions within the City of Columbus over a three-year period following construction completion with an estimated annual payroll of $1,840,000.00; and
WHEREAS, the City is encouraging this project because of plans to redevelop an urban commercial property in the central city; and
WHEREAS, the City desires to enter in such a binding formal agreement in order to foster economic growth for the preservation of public health, peace, property and safety; and 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 and tax credit is a critical factor in the decision by Allied Mineral Products, 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 Allied Mineral Products, 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 total investment of approximately $12,690,000.00 which includes, $8,940,000.00 in new construction, $2,300,000.00 in real property improvements, $1,150,000.00 in machinery and equipment, $300,000.00 in furniture and fixtures.
Section 4. That the City of Columbus Enterprise Zone Agreement is signed by Allied Mineral Products, 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.