Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Heartland Refinery, 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.
Heartland Petroleum, parent company of Heartland Refinery, LLC, originated as a petroleum recycling company in Columbus, Ohio in 1948. The first company's founder was Rex Snedegar, Sr. Mr. Snedegar's goal was to service the entire central Ohio area with environmentally safe used oil collections. He built the organization with a sound business philosophy of customer service and eventually expanded the operation to include not only the private sector, but also local, state, and federal agencies.
Heartland Refinery, LLC plans to build a recycled oil refinery to accommodate expansion. The project will include an investment of $10,000,000 and the retention of 11 full-time jobs and creation of 20 new full-time jobs.
The Department of Development recommends a 75%/ten year tax abatement on real property improvements and a 75%/two year tax abatement on personal property. The proposal is consistent with Columbus Tax Incentive Policy under Core Central City projects.
The Columbus Public School District has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with Heartland Refinery, LLC for a tax abatement of 75% for a period of ten years for real property improvements and a tax abatement of 75% for a period of two years for personal property in consideration of a proposed $10,000,000 investment, the retention of 11 jobs, and the creation of 20 new full-time 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
WHEREAS, the Ohio Development Department approved this designation under State of Ohio enterprise law, by letter dated June 12, 1985; and
WHEREAS, Heartland Refinery, LLC plans to build a recycled oil refinery to accommodate expansion; and
WHEREAS, the expansion will add approximately $10,000,000 in investment within the City; and
WHEREAS, the expansion will create 20 new full time jobs; and
WHEREAS, emergency legislation is requested to allow the company to receive the incentive as soon as possible; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into an agreement with Heartland Refinery, LLC, 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 City hereby finds and determines that the project will (1) create jobs in the State and City; (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credits is a critical factor in the decision by Heartland Refinery, LLC to go forward with the project.
Section 2. That the Director of the Department of Development is hereby authorized and directed to enter into and execute a ten-year, 75% real property and a two-year 75% personal property Enterprise Zone Agreement with Heartland Refinery, LLC.
Section 3. That the City of Columbus Enterprise Zone Agreement must be signed by Heartland Refinery, LLC. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements authorized herein are null and void.
Section 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.