Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Morrison Medical LTD. 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.
Morrison Medical LTD plans to build a 14,000 square foot facility on parcel 560-274685-00, a 2.120 acre site located in the Westbrooke Corporate Park on Paragon Drive, to accommodate future expansion. The project will include an investment of $1,250,000 in real property improvements, machinery & equipment and new inventory, the retention of 25 (twenty-five) full-time permanent jobs and the creation of 5 (five) full-time permanent jobs.
The Department of Development recommends a 60%/7 year tax abatement on real property improvements, machinery & equipment and new inventory. The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects.
The Hilliard 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 Morrison Medical LTD for a tax abatement of sixty percent (60%) for a period of seven (7) years in consideration of a proposed $1,250,000 investment in real property improvements, machinery & equipment and new inventory, retention of 25 (twenty-five) full-time permanent jobs and the creation of 5 (five) full-time permanent 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 Department of Development approved this designation under State of Ohio enterprise law, by letter dated June 12, 1985; and
WHEREAS, Morrison Medical LTD plans to build a 14,000 square foot facility to accommodate expansion and relocation; and
WHEREAS, Morrison Medical LTD agrees to invest approximately $1,250,000 in real property improvements, machinery & equipment and new inventory within the City; and
WHEREAS, Morrison Medical LTD agrees to retain 25 (twenty-five) full-time permanent jobs and create 5 (five) new full time permanent jobs; and
WHEREAS, the City desires to enter into such 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 Morrison Medical LTD and to provide therewith an exemption of sixty percent (60%) on real property improvements, machinery & equipment and new inventory for a term of seven (7) taxable years in association with the project's proposed $1,250,000 investment and job retention and creation.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period permitted by law.