Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to amend the existing Enterprise Zone Agreement with Ohio Transmission Corporation. Columbus City Council, by Ordinance No. 1671-2002, passed on November 18, 2002, approved a 50% 5 year tax abatement on real property improvements for Ohio Transmission Corporation to invest $2,750,000 in real and personal property and create 10 new full-time jobs.
The need exists to amend the Enterprise Zone Agreement to include Carstens-Derrow Realty Co. as the owner of the real property and to commit Ohio Transmission Corporation to 79 jobs for retention. Subsequent to the approval of the incentive by Council, Ohio Transmission Corporation created Carstens-Derrow Realty Company as the real estate holding company.
The name of the new entity needs to be added to the Enterprise Zone Agreement to reflect the new property owner and to allow the Ohio Department of Taxation to proceed with approval of the tax abatement granted by council. In addition, the amendment will include a job retention commitment of 79 jobs retained by Ohio Transmission Corporation at the time the company entered into the Enterprise Zone Agreement.
Ohio Transmission Corporation has made progress on the commitments in the Enterprise Zone Agreement including the completion of a new 32,000 square foot facility. The Corporation has already surpassed its investment and job creation goals as of December 31, 2005.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the existing Enterprise Zone Agreement with Ohio Transmission Corporation to include Carstens-Derrow Realty Co. as the property owner and to establish 79 as the job retention commitment for the company.
Body
WHEREAS, Columbus City Council, by Ordinance No. 1671-2002, passed November 18, 2002 authorized the Enterprise Zone Agreement; and
WHEREAS, the City entered into an Enterprise Zone Agreement with Ohio Transmission Corporation, effective February 10, 2003; and
WHEREAS, the Enterprise Zone Agreement provided a real property tax exemption of 50% for 5 years to Ohio Transmission Corporation based on an investment of $2,750,000 in real property improvements and the creation of 10 (ten) full time jobs; and
WHEREAS, Ohio Transmission Corporation created Carstens-Derrow Realty Co., an affiliate under common family ownership and common management to serve as a real estate holding company and owner of the real property at the project site; and
WHEREAS, Ohio Transmission Corporation has fulfilled and exceeded their investment and job creation commitment, and
WHEREAS, the Ohio Transmission Corporation and the City intended the Enterprise Zone Agreement to include a job retention commitment for the 79 existing jobs; and
WHEREAS, the Enterprise Zone Agreement should be amended to include Carstens-Derrow Realty Co. as the property owner and establish an employee retention number of 79 employees; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to amend the Enterprise Zone Agreement with Ohio Transmission Corporation to include Carstens-Derrow Realty Co. as the property owner and to establish an employee retention commitment of 79 (seventy-nine) full-time permanent jobs.
Section 2. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.