Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with FlightSafety International 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.
FlightSafety International Inc. (FlightSafety) is the world's premier professional aviation training company and supplier of flight simulators, visual systems and displays to commercial, government and military organizations. The company provides more than a million hours of training each year to pilots, technicians and other aviation professionals. FlightSafety operates the world's largest fleet of advanced full flight simulators in its Learning Centers located in the United States, Canada, France, Japan, South Africa and the United Kingdom. The company is owned and backed by Berkshire Hathaway, Inc., an American multinational conglomerate holding company headquartered in Omaha, Nebraska that oversees and manages a number of subsidiary companies.
FlightSafety is proposing to invest approximately $113 million to expand its Columbus Learning Center. This investment amount includes $22.5 million in real property improvements, $88 million in machinery and equipment, $2.5 million furniture and fixtures. The company plans to construct a new Learning Center consisting of two separate buildings of approximately 54,000 and 90,000 square feet, respectively. Eventually, the two facilities will connect making it one large flight simulator Learning Center. This new Learning Center will house 18 new full flight simulators and will train pilots, technicians and other aviation professionals. FlightSafety will retain 137 full-time employees with an estimated annual payroll of $9.17 million and create 18 new full-time permanent positions with an estimated annual payroll of approximately $1.19 million.
The Department of Development recommends 75%/10-year Enterprise Zone tax abatement on real property improvements.
The Columbus City School District has been advised of this project.
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 FlightSafety International 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 approximately $113 million.
Body
WHEREAS, City Council subsequently amended the Columbus Enterprise Zone by Ordinance Numbers 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2249-92 and 2690-92 in 1992; 1079-94 and 1228-94 in 1994; 1274-95, 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; 0225-03 in 2003; and 0032-2012 in 2012; 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 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, August 19, 2003 and most recently on April 3, 2012 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, FlightSafety is proposing to invest approximately $113 million to expand its Columbus Learning Center, which includes $22.5 million in real property improvements, $88 million in machinery and equipment, $2.5 million in furniture and fixtures on Parcel Number 010-192066 010-254179 further known as 625 Hamilton Road 4010 Bridgeway Avenue, Columbus, Ohio 43219; and
WHEREAS, FlightSafety plans to construct a new Learning Center facility consisting of two separate buildings of approximately 54,000 and 90,000 square feet, respectively. Eventually, the two facilities will connect making it one large flight simulator Learning Center. This new Learning Center will house 18 new full flight simulators and will train pilots, technicians and other aviation professionals; and
WHEREAS, FlightSafety will create 18 new full-time permanent positions within the City of Columbus over a three-year period following construction completion with an estimated annual payroll of approximately $1.19 million; and
WHEREAS, FlightSafety will retain 137 full-time employees with an annual payroll of approximately $9.17 million; and
WHEREAS, the City is encouraging this project because of plans to redevelop an urban commercial property in the central city; and
WHEREAS, the City desires to enter in such a binding formal agreement in order to foster economic growth for the preservation of public health, peace, property and safety; and 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) 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 abatement and tax credit is a critical factor in the decision by FlightSafety International 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 the Department of Development is hereby authorized and directed to enter into and execute an Enterprise Zone Agreement with FlightSafety International 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 $22.5 million in real property improvements.
Section 4. That the City of Columbus Enterprise Zone Agreement is signed by FlightSafety International 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.