Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with The Durable Slate Company/DSC Holdings, Ltd. 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.
The Durable Slate Company/DSC Holdings, Ltd. is one of the largest installers and restorers of slate roofs in North America. The main office in Columbus, Ohio, and satellite offices in Cincinnati and Cleveland service slate and clay tile roofs throughout Ohio and surrounding states. For major restorations and installations, The Durable Slate Company services the entire Eastern United States.
The Durable Slate Company/DSC Holdings, Ltd. plans to construct a single new facility at 1080 Camden Avenue, consolidating their current five (leased) locations into a single location. This facility will serve as the corporate headquarters, production facility, and possibly a storage shelter for inventory. The project will include an investment of $1,360,000 in real property improvements, the retention of 97 full-time permanent jobs, one permanent part-time job, and the creation of 22 new full-time permanent jobs.
The Department of Development recommends a 60%/6 year tax abatement on real property improvements. The proposal is consistent with Columbus Tax Incentive Policy under Core Central City projects.
This legislation is being submitted as an emergency in order to allow The Durable Slate Company/ DSC Holdings, Ltd. to move forward with construction.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with The Durable Slate Company/DSC Holdings, Ltd. for a tax abatement of 60% for a period of six years in consideration of a proposed $1,360,000 investment in real property improvements, the retention of 97 full-time permanent jobs, one part-time permanent job, and the creation of 22 full-time permanent jobs; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance No. 779-85, dated April 22, 1985; and
WHEREAS, the Ohio Development Director approved this designation under State of Ohio Enterprise Zone law, by letter, dated June 12, 1985; and
WHEREAS, The Durable Slate Company/DSC Holdings, Ltd. plans to construct a single new facility at 1080 Camden, consolidating their current five (leased) locations into a single location for their corporation headquarters, production facilities for the Columbus Division, and one possibly or more storage shelters for inventory; and
WHEREAS, The Durable Slate Company/DSC Holdings, Ltd. agrees to invest approximately $1,360,000 in real property improvements within the City; and
WHEREAS, The Durable Slate Company/DSC Holdings, Ltd. agrees to retain 97 (ninety-seven) full-time permanent jobs, 1 (one) part-time permanent job, and create 22 (twenty-two) new full time permanent jobs; and
WHERREAS, it is required by law to enter into a binding, formal agreement in order to obtain State of Ohio incentives; and
WHEREAS, the City desires to enter into such agreement in order to foster economic growth; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to enter into an Enterprise Zone Agreement with The Durable Slate Company/DSC Holdings, Ltd. 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 Development is hereby authorized to enter into an Enterprise Zone Agreement with Durable Slate Company/DSC Holdings, Ltd. and to provide therewith an exemption of sixty percent (60%) on real property improvements for a term of six (6) taxable years in association with the project's proposed $1,360,000 investment and job retention and creation.
Section 2. 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 the passage if the Mayor neither approves nor vetoes the same.