Explanation
Background: The need exists to enter into an Enterprise Zone Agreement with Farber Specialty Vehicles, Inc. and its affiliate Farber Development I LLC, collectively known as Farber Specialty Vehicles, Inc. Ohio Enterprise Zone law (O.R.C. Section 5709.62) requires the City to enter into a Council-approved agreement with a participating company.
Farber Specialty Vehicles, Inc., located in Columbus, started over 25 years ago building custom mobile units using the latest in advanced technologies. The specialty vehicles the company builds include Bookmobiles, mobile mammography, dental and medical vehicles, laboratories, Bloodmobiles, computer labs and mobile classrooms, crime scene labs, bomb trucks, S.W.A.T. and Command Post vehicles.
The company is proposing to invest $2.7 million in an expansion project at its Americana Parkway location. The investment will include $2.5 million in real property improvements and $250,000 in personal property. The company will retain 95 permanent full-time jobs and create 20 new permanent full-time jobs at the project site.
Columbus Department of Development is proposing a 7-year, 65% Enterprise Zone incentive on real property improvements.
This legislation is submitted as an emergency in order to allow Farber Specialty Vehicles, Inc. to make a decision on the location of the proposed project as quickly as possible.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a 7 year/65% Enterprise Zone Agreement on real property improvements, in consideration of Farber Specialty Vehicles, Inc.'s proposed investment of $2.7 million, retention of 95 full-time permanent jobs and the creation of 20 permanent full-time jobs; and to declare an emergency.
Body
WHEREAS, the City has established the Southeast Enterprise Zone pursuant to Sections 5709.61 to 5709.632 of the Ohio Revised Code ("O.R.C.") which has been certified by the Director of the Department of Development of the State of Ohio as required by the O.R.C.; and
WHEREAS, Farber Specialty Vehicles, Inc. has submitted a proposal to the City as required by, but not limited to, Section 5709.62, O. R. C. including all of the information required by Section 5709.62; and
WHEREAS, Farber Specialty Vehicles, Inc. proposes to invest $2.7 million in real property improvements and personal property, retain 95 full-time positions and create 20 new jobs, and is located within the Southeast Enterprise Zone and is qualified for consideration of Enterprise Zone; and
WHEREAS, Farber Specialty Vehicles, Inc. has indicated that a tax incentive is crucial to its decision to locate the aforementioned expansion at the Columbus site; and
WHEREAS, the Columbus Department of Development has investigated Farber Specialty Vehicles, Inc.'s proposal and application for tax incentives and has determined that Farber Specialty Vehicles, Inc. has the financial ability to undertake the proposed project in Columbus; and
WHEREAS, it is required by law to enter into a formal, binding agreement in order to provide and obtain Enterprise Zone incentives in the State and City; and
WHEREAS, the City desires to enter into such agreement with Farber Specialty Vehicles, Inc. to foster economic growth; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to enter into agreement with Farber Specialty Vehicles, Inc. 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 the Director of the Department of Development be and is hereby authorized to enter into an Enterprise Zone Agreement with Farber Specialty Vehicles, Inc., and to provide therewith an exemption of 65% on real property improvements for a term of seven (7) taxable years, in association with Farber Specialty Vehicles, Inc.'s proposed expansion.
Section 2. That the City of Columbus Enterprise Zone Agreement shall be signed by Farber Specialty Vehicles, 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 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the 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 passage if the Mayor neither approves nor vetoes the same.