Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. 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 project involves three separate entities that include: V&S Columbus Galvanizing LLC (V&S) - (galvanizing operation), Voigt & Schweitzer LLC (new operation involved in production of concrete barriers) and Hill & Smith, Inc. (Corporate Headquarters). V&S began operations in Germany in 1893 and today operates over 30 galvanizing plants in the United States and Europe (with 6 galvanizing locations in the U.S.) V&S has been involved in many projects - large and small - where hot dip galvanizing was the corrosion protection method of choice for major highways, professional sports stadiums, bridges, architectural buildings, railing, fasteners and the like.
V&S, Voigt & Schweitzer LLC and Hill & Smith, Inc. are proposing to construct a brand new facility directly across the street from its existing south side facility on Buckeye Park Rd. The project will also involve the acquisition of machinery, equipment, furniture and fixtures. A total capital investment of $10 million is proposed at the site, with $6.4 million toward building construction and $3.6 million for equipping the facility to meet the needs of all three entities. A total of 4 new full-time positions will be created as a result of the project and 74 full-time jobs will be retained (55 from V&S, 7 from Hill & Smith, Inc. and 12 from Voigt & Schweitzer LLC). The new site will allow for greater efficiencies in the workflow of the galvanizing process.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. This proposal is consistent with the Columbus Tax Incentive Policy under Central City projects.
The Columbus City Schools 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 Enterprise Zone Agreement with V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a proposed total investment of $10 million, retention of 74 full-time permanent jobs and the creation of 4 new permanent full-time positions.
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 Code and recertified 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, V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. are proposing to construct a brand new facility directly across the street from its existing south side facility on Buckeye Park Rd. on parcel number 010-247812; and
WHEREAS, V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. will make a total capital investment of $10 million at the proposed site, with $6.4 million toward building construction and $3.6 million for equipping the facility to meet the needs of all three entities; and
WHEREAS, V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. will create 4 full-time permanent jobs with an annual payroll of $120,000; and
WHEREAS, V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. will retain 74 positions with an annual payroll of $4.37 million; and
WHEREAS, the City is encouraging this project because of plans to redevelop urban commercial property in the central city; and
WHEREAS, the City desires to enter into such a binding formal agreement in order to foster economic growth 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 City hereby finds and determines that the project will (1) retain 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 abatement is a critical factor in the decision by V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. to go forward with the project expansion.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of Development is hereby authorized and directed to enter into and execute an Enterprise Zone Agreement with V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years in association with the project's proposed investment of approximately $6.4 million for building construction, $3.6 million for machinery, equipment, furniture and fixtures and the retention of 74 full-time employees with an annual payroll of approximately $4.37 million, and the creation of 4 new permanent full-time positions with an annual payroll of approximately $120,000.
Section 4. That the City of Columbus Enterprise Zone Agreement is signed by V&S Columbus Galvanizing LLC, Voigt & Schweitzer LLC and Hill & Smith, Inc. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.