Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Enterprise Zone Agreement (EZA) between the City of Columbus and seven Crane entities that operate divisions: Crane Plastics Company Limited Partnership, TimberTech Limited, CPC Tooling Technologies LLS, Crane Plastics Siding LLC, Crane Blending Center LLC, Crane Plastics Manufacturing Ltd., and Crane Products, Ltd (hereinafter referred to as "Crane"). Columbus City Council approved the EZA by Ord. No. 1194-97, passed May 12, 1997, and approved an amendment to the EZA by Ord. No. 917-00, passed April 17, 2000. The EZA granted Crane a 50%/10-year abatement on real property improvements and new machinery, equipment and inventory (1999-2008). Crane committed to invest $7.9 million in real property improvements, $13.1 million in new machinery and equipment, $2.8 million in new inventory, to retain the existing 675 jobs and create 95 new jobs. Crane is located at 2141 Fairwood Avenue in the city's Southside. Crane had invested more than twice the EZA goal by December 2003. At the same time, however, the number of jobs was 147 jobs short of the goal (job retention was short by 52 jobs and job creation was short by 95 jobs). Only full-time permanent jobs were counted as per the EZA, though 73 full-time equivalent (FTE) Remedy contract workers were employed at Crane in 2003.
The TIRC recommended that the City amend the EZA to require that in the last 4 years of the abatement (2005-2008) the job retention goal must be met (675 jobs) and the number of new jobs must average at least 71 for each of the 3-year periods after 2004 (i.e., 2005-2007 and 2006-2008). Seventy-one (71) jobs equals 75% of the original goal of 95 new jobs. Only full-time permanent jobs would be counted. If this minimum goal is not met in a 3-year period, the company will repay the amount of property taxes exempted in those 3 years. The City wishes to modify the TIRC recommendation to allow Crane's Remedy contract employees to be counted in terms of FTE. Other than this modification, the City concurs with the TIRC recommendation for amending the EZA.
This legislation is presented as an emergency measure in order to meet the new deadline under State law for City Council vote on TIRC recommendations.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Enterprise Zone with Crane to allow the Remedy contract workers to be part of the job count and to require that the job retention goal must be met and that the number of new jobs must average at least 71 for each of the remaining 3-year periods after 2004 (i.e., 2005-2007 and 2006-2008) or the company will repay the amount of property taxes exempted in those 3 years. ; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved an Enterprise Zone Agreement with Crane Plastics by Ordinance
No. 1194-97, passed May 12, 1997; and
WHEREAS, Columbus City Council approved an amendment to the Crane Plastics Enterprise Zone Agreement by
Ordinance 917-00, passed April 17, 2000, to include in the Agreement seven Crane entities that operate divisions:
Crane Plastics Company Limited Partnership, TimberTech Limited, CPC Tooling Technologies LLS, Crane Plastics
Siding LLC, Crane Blending Center LLC, Crane Plastics Manufacturing Ltd., and Crane Products, Ltd (hereinafter
referred to as "Crane"); and
WHEREAS, the Crane Enterprise Zone Agreement (EZA) calls for an investment of approximately $23.8 million in
real and personal property, the retention of 675 jobs and the creation of 95 new job; and
WHEREAS, the EZA granted Crane a 50%/10-year abatement on real property improvements and new machinery,
equipment and inventory; and
WHEREAS, as of the end of 2003 Crane had invested $56 million but was 147 jobs short of the EZA's job goal; and
Whereas, the Columbus Tax Incentive Review Council (TIRC) recommended on August 11, 2004 that the City amend
the EZA to require that in the last 4 years of the abatement (2005-2008) the EZA job retention goal must be met and 75 %
of the job creation goal met, that only full-time permanent jobs would be counted, and that exempted taxes would be
repaid if the goal was not met; and
WHEREAS, Crane uses Remedy contract workers who are paid at the same rates as Crane regular employees, are
offered medical insurance and other benefits, and receive the same job training as Crane employees; and
WHEREAS, contract work has been a bridge to a Crane regular job for many of Remedy employees and also is an
efficient system that helps Crane adjust to the seasonal fluctuations which affect its industry; and
WHEREAS, the City desires to modify the TIRC recommendation to allow the Remedy contract workers to be counted
as full-time equivalents and in all other respects concurs with the recommendation; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately
necessary to obtain City Council's vote in order to meet the new deadline under State law for voting on the TIRC
recommendations, thereby preserving the public health, peace, prosperity, safety and welfare; 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 Crane
Enterprise Zone Agreement to require that in the last 4 years of the abatement (2005-2008) the job retention goal
must be met (675 jobs) and the number of new jobs must average at least 71 for each of the 3-year periods after 2004
(i.e., 2005-2007 and 2006-2008), that Crane's Remedy contract employees may be counted as full-time equivalents,
and that exempted taxes would be repaid for a period if the job goal as amended was not met for that period.
Section 2. That for the reasons stated in the preamble thereto, which is made a part hereof, this Ordinance is
declared to be an emergency measure and shall 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.