Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with the Columbus Compact Corporation. 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 Columbus Compact Corporation plans to renovate a 19,000 square foot former grocery store building where the applicant has negotiated a lease agreement with a Sav-A-Lot grocery store franchisee. This project is expected to be a catalyst for future retail goods and services development in the neighborhood. The project is a part of the Compact's Retail Development Plan for property it owns on a three block long portion of E. Main Street. The project includes the following parcels: 010-014373, 010-012636, 010-047166, 010-044753, 010-032101, 010-032102 and 010-182471. The addresses are 1170-1181 E. Main St. and 411-423 Wilson Ave., Columbus, Ohio. The project will include an investment of $2.5 million and the creation of sixteen (16) new full-time jobs.
The Department of Development recommends a 75%/10 year tax abatement on real property and 75%/2 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 Enterprise Zone Agreement with the Columbus Compact Corporation for a tax abatement of 75% for a period of ten years for real property improvements and 75% for a period of two years for personal property in consideration of a proposed $2.5 million investment and the creation of 16 new jobs.
Body
WHEREAS, the City has established an Enterprise Zone pursuant to Section 5709.61 to 5709.66 of the Ohio Revised Code (O.R.C.) which has been certified by the Director of the Department of Development of the State of Ohio as required by the O.R.C.; and
WHEREAS, Columbus Compact Corporation has submitted a proposal to the City as required by, but not limited to, Section 5709.62 O.R.C. including all of the information required by Section 5709.62; and
WHEREAS, the Columbus Compact Corporation plans to renovate a 19,000 square foot facility to accommodate expansion; and
WHEREAS, the expansion will add approximately $2.5 million in investment within the City and create 16 new full-time jobs; and
WHEREAS, the Columbus Compact Corporation has indicated that tax incentives are crucial to its decision to locate the aforementioned expansion at the Columbus site; and
WHEREAS, the Department of Development has investigated Compact's proposal and application for tax incentives and has determined that the Columbus Compact Corporation has the financial ability to undertake the proposed project in Columbus; and
WHEREAS, it is required by law to enter into a formal, binding agreement in order to provide and Enterprise Zone tax incentive in the State and City; and
WHEREAS, the Columbus Compact has submitted the following documents to the City; Building Elevations, Site Elevations, Enlarged Site Plans and Landscape Plans ('plans') for Heritage Square; and
WHEREAS, conceptually, those plans are acceptable to the City; and
WHEREAS, the Columbus Compact intends to construct Heritage Square in accordance with those plans and the concepts in those plans; 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 the Columbus Compact Corporation and to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years and seventy-five percent (75%) on personal property for the term of two (2) years in association with the project's proposed $2.5 million investment.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period permitted by law.