Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with the Boehringer Ingelheim Roxane, Inc. and it's US Affiliated Companies (Roxane Labs). 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 Department of Development is proposing to enter into an Enterprise Zone Agreement with Boehringer Ingelheim Roxane, Inc. and its U.S. Affiliated Companies to provide therewith an exemption of one-hundred percent (100%) on real property improvements for a term of fifteen (15) taxable years in consideration of the proposed investment of $41.2 million in real property improvements and the retention of 948 full-time permanent positions.
Roxane Labs is a subsidiary of Boehringer Ingelheim, one of the world's leading pharmaceutical companies. The parent company, headquartered in Ingelheim, Germany, is privately owned and currently has over 41,000 employees and 138 affiliated companies located throughout the world.
Boehringer Ingelheim is research driven and dedicated to the discovery, development, manufacture and marketing of innovative human and animal health care products.
Roxane Labs is proposing to expand its Columbus Wilson Road Campus facility by renovating an existing 60,000 square foot building and constructing a 23,600 square foot addition for its High Containment Operations. The project plans to close the Oak St. location and relocate the 46 employees to Wilson Road. The company is also considering other locations outside Ohio for this expansion.
Emergency action is requested of City Council in order to accommodate a project start date.
The Hilliard School District, pursuant to Ohio Revised Code 5709.62(D)(1), has approved the 100%/15 year abatement for Roxane Labs.
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 Boehringer Ingelheim Roxane, Inc. and its US Affiliated Companies for a tax abatement of one hundred percent (100%) for a period of fifteen (15) years in consideration of the proposed investment of $41.2 million in real property improvements and the retention of 948 full-time permanent positions; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2609-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 in 2003; 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 recertifed 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 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Boehringer Ingelheim Roxane, Inc. and its US Affiliates plan to invest $41.2 million in real property improvements renovate and expand an existing facility at 1809 Wilson Road to accommodate expansion and job retention; and
WHEREAS, Boehringer Ingelheim Roxane, Inc. and its US Affiliates will retain 948 full-time permanent positions; and
WHEREAS, pursuant to Section 5709.62 (D)(1) of the Ohio Revised Code, school board approval must be granted for an incentive that exceeds 75%; and
WHEREAS, the Hilliard City School District approved the incentive on August 24, 2009; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with Boehringer Ingelheim Roxane, Inc. and its US Affiliates in order to accommodate a project start date, all 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 is hereby authorized to enter into an Enterprise Zone Agreement with Boehringer Ingelheim Roxane, Inc. and its U.S. Affiliated Companies to provide therewith an exemption of one-hundred percent (100%) on real property improvements for a term of fifteen (15) taxable years in consideration of the proposed investment of $41.2 million in real property improvements and the retention of 948 full-time permanent positions.
Section 2. The Enterprise Zone Agreement will be signed by Boehringer Ingelheim Roxane, Inc. and its US Affiliates within sixty (60) days of receiving the agreement, or this ordinance and the abatements 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.