Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Abbott Laboratories, Ross Products. The Ohio Tax Credit Legislation (Section 718.08 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
The Ross Products Division, Columbus Manufacturing Site has been located in Columbus since 1903. The current location was originally the site of the Franklin Brewery which was used by the Moores and Ross Milk Company and subsequently became Ross Laboratories. Ross Laboratories was created to continue the development of Similac Infant Formula, which continues to be their flagship brand. Ross Laboratories was purchased by Abbott Laboratories in 1964 and became the Ross Products Division of Abbott Laboratories. Abbott is a broad-based health care company based in north suburban Chicago.
Abbott Laboratories, Ross Products plans to expand a manufacturing line to accommodate expansion. The project will include an investment of $58,650,000.00, retention of 1856 full-time jobs and the creation of 92 full-time jobs.
The Department of Development recommends a 65%/8 year Jobs Creation Tax Credit.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with Abbott Laboratories, Ross Products for a Jobs Creation Tax Credit of 65% for a period of 8 years in consideration of a proposed $58,650,000.00 investment, the retention of 1856 new full-time jobs and the creation of 92 new full-time jobs; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these taxpayers job creation tax credits against their corporate franchise or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, the State of Ohio Tax Credit Authority has granted Abbott Laboratories, Ross Products a 65% 8 year Jobs Creation Tax Credit; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, the granting of the tax credit by the City for the proposed expansion project by Abbott Laboratories, Ross Products will create 92 full-time permanent jobs and increase opportunities for employment and strengthen the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in Abbott Laboratories, Ross Products's decision to go forward with the project; and
WHEREAS, Abbott Laboratories, Ross Products plans to a manufacturing line
to accommodate ; and
WHEREAS, the expansion will add approximately $58,650,000.00 in investment within the City; and
WHEREAS, emergency legislation is requested to allow the company to receive the incentive as soon as possible; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into an agreement with Abbott Labs, Ross Products all 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 the 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 credits is a critical factor in the decision by Abbott Laboratories, Ross Products to go forward with the project.
Section 2. That the Director of the Department of Development is hereby authorized and directed to enter into and execute a 8-year, 65% Jobs Creation Tax Credit Agreement with Abbott Laboratories, Ross Products.
Section 3. That the City of Columbus Jobs Creation Tax Credit Agreement be signed by Abbot Laboratories, Ross Products within ninety (90) days of passage of this ordinance, or this ordinance and credits authorized herein are null and void.
Section 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.