Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with four related enterprises, Columbus Wood Products, LLC, Continental Millworks Company, LLC, 1800 Fifth Ave. Holdings, LLC and Nacht Holdings, LLC. 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.
1800 Fifth Ave. Holdings, LLC plans to renovate 117,000 square feet of a facility located at 1800 Fifth Avenue to accommodate the relocation and expansion of Columbus Wood Products, LLC and Continental Millworks, LLC. Nacht Holdings LLC will be the employer of record for all the retained and newly created jobs. The project will include a total investment of $2,560,000. This investment will include $2,400,000 for real property improvements, $50,000 for machinery & equipment, $10,000 for furniture & fixtures, and $100,000 for new inventory. The project will also include the retention of 98 (ninety-eight) full-time permanent jobs and the creation of 21 (twenty-one) full-time permanent jobs. Eighty-nine (89) of the retained jobs will be relocated to Columbus from Clinton Township and seven (7) will be relocated from Mount Vernon, Ohio.
The Department of Development recommends a 65%/7 year tax abatement on real property improvements, machinery & equipment, furniture & fixtures, and new inventory. The proposal is consistent with the Columbus Tax Incentive Policy under Central City Area projects.
The Columbus School District, the Clinton Township Trustees, and City of Mount Vernon, Ohio have been advised of this project.
Emergency Action is requested of Council in order to facilitate a project start.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with Columbus Wood Products, LLC, Continental Millworks Company, LLC, 1800 Fifth Ave. Holdings, LLC and Nacht Holdings, LLC for a tax abatement of sixty-five percent (65%) for a period of seven (7) years in consideration of the companies's $2,560,000 investment, relocation/retention of 98 (ninety-eight) jobs, the creation of 21 (twenty-one) new jobs; 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, 1800 Fifth Ave Holdings, LLC plans to renovate 117,000 square feet of a facility located at 1800 Fifth Avenue to accommodate the planned expansion and relocation of Columbus Wood Products, LLC and Continental Millworks, LLC; and
WHEREAS, Columbus Wood Products, LLC, Continental Millworks Company, LLC, and 1800 Fifth Ave Holdings, LLC agree to invest approximately $2,560,000 in real property improvements, machinery & equipment, furniture & fixtures, computers and new inventory within the City; and
WHEREAS, Nacht Holdings, LLC agrees to relocate and retain 98 (ninety-eight) full-time permanent jobs, 97 (ninety-seven) of which are new to Columbus, and create 21 (twenty-one) new full time permanent jobs; 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 Columbus Wood Products, LLC, Continental Millworks Company, LLC, 1800 Fifth Ave. Holdings, LLC and Nacht Holdings, LLC 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 four related enterprises, Columbus Wood Products, LLC, Continental Millworks Company, LLC, 1800 Fifth Ave. Holdings, LLC and Nacht Holdings, LLC and to provide therewith an exemption of sixty-five percent (65%) on real property improvements, machinery & equipment, furniture & fixtures and new inventory for a term of seven (7) taxable years in association with the project's proposed $2,560,000 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.