Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with ms consultants, 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.
ms consultants, inc. plans to build an additional 18,000 square feet at their current facility to accommodate expansion. The project will include an investment of $3,038,000 in real property improvements, furniture & fixtures and stand alone computers, the retention of 89 (eighty-nine) full-time permanent jobs and the creation of 69 (sixty-nine) full-time permanent jobs.
The Department of Development recommends a 65%/7 year tax abatement on real property improvements, furniture & fixtures, stand-alone computers and a 60%/6 year Jobs Creation Tax Credit. The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects.
The Columbus Public School District has been advised of the project.
Emergency action is requested by Columbus City Council to facilitate hiring and construction time schedules.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with ms consultants, inc. for an Enterprise Zone tax abatement of sixty-five percent (65%) for a period of seven (7) years for real property improvements, furniture & fixture, stand-alone computers and a Jobs Creation Tax Credit of sixty percent (60%) for a period of six (6) years on new full-time employees in consideration of a proposed $3,038,000 investment in real property improvements and personal property, the retention of 89 (eighty-nine) full-time permanent jobs and the creation of 69 (sixty-nine) full-time permanent jobs; and to declare an emergency.
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 and recertifed 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, ms consultants, inc. plans to add an additional 18,000 square feet to its current facility to accommodate expansion; and
WHEREAS, ms consultants, inc. agrees to invest approximately $3,038,000 in real property improvements and personal property within the City; and
WHEREAS, ms consultants, inc. agrees to retain 89 (eighty-nine) full-time permanent jobs and create 69 (sixty-nine) new full time permanent jobs; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with ms consultants, inc. to facilitate hiring and construction time schedules and 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 Director of Development is hereby authorized to enter into an Enterprise Zone Agreement and to provide therewith an exemption of sixty-five percent (65%) on real property improvements, furniture & fixtures and stand-alone computers for a term of seven (7) taxable years, and a Jobs Creation Tax Credit of sixty percent (60%) for a term of six (6) years with ms consultants, inc. in association with the project's proposed $3,038,000 investment, job retention, and job creation.
Section 2. 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 the passage if the Mayor neither approves nor vetoes the same.