Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with JBG Enterprises LLC and America's Floor Source 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.
JBG Enterprises LLC and America's Floor Source LLC plans to construct a 50,000 square foot facility to accommodate relocation and expansion. The project will include an investment of $2,100,000, the retention of 24 (twenty-four) full-time jobs and the creation of 5 (five) new full-time jobs.
The Department of Development recommends a 60%/6 year tax abatement on real property improvements for JBG Enterprises and 60%/6 year tax abatement on personal property for America's Floor Source LLC. 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 JBG Enterprises LLC and America's Floor Source LLC for a tax abatement of 60 (sixty) percent for a period of 6 (six) years in consideration of a proposed $2,100,000 investment in real property improvements and personal property, the retention of 24 (twenty-four) jobs and the creation of 5 (five) new jobs.
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, JBG Enterprises LLC and America's Floor Source LLC plans to construct a 50,000 square foot facility to accommodate relocation and expansion; and
WHEREAS, the expansion will add approximately $2,100,000 in investment within the City; and
WHEREAS, the expansion will create 5 new full time jobs; and
WHEREAS, the City desires to enter into such a binding, formal agreement in order to foster economic growth; 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 JBG Enterprises LLC and America's Floor Source LLC and to provide therewith an exemption of sixty percent (60%) on real property improvements and personal property for a term of six (6) taxable years in association with the project's proposed $2,100,000 investment.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period permitted by law.