Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Gowdy Partners LLC and Gowdy Partners II LLC and a Jobs Creation Tax Credit Agreement with Time Warner Cable, Inc. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) and Jobs Creation Tax Credit law (O.R.C. Section 718.08) requires the City to enter into a Council-approved agreement between the City and participating companies.
Gowdy Partners LLC plans to construct a 140,000 square foot facility to accommodate relocation and expansion of Time Warner Cable, Inc. The project will include an investment of $20,000,000, the retention of 450 full-time jobs and the creation of 153 new full-time jobs. Gowdy Partners II LLC will also develop a 60,000-75,000 square foot speculative office building with an investment of $7.5 million and the creation of 50 new full-time jobs.
The Department of Development recommends a 75%/10 year tax abatement on real property improvements under the City's Enterprise Zone Program for Gowdy Partners LLC and Gowdy Partners II LLC and a 65%/10 year Jobs Creation Tax Credit for Time Warner Cable, Inc. 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 Gowdy Partners LLC and Gowdy Partners II LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years; and to authorize the Director of Development to enter into a Jobs Creation Tax Credit Agreement with Time Warner Cable, Inc. to provide therewith an exemption of sixty-five percent (65%) for a period of ten (10) years in consideration of a proposed $27,500,000 investment, the retention of 450 (four hundred and fifty) jobs and the creation of 203 (two hundred and three) new jobs. (AMENDED BY ORD. 1343-2013 PASSED 6/10/2013)
Body
WHEREAS, the City has established an Enterprise Zone pursuant to Sections 5709.61 to 5709.66 of the Ohio Revised Code ("O.R.C.") which has been certified by the Director of the Department of the State of Ohio as required by the O.R.C; and
WHEREAS, Gowdy Partners LLC, Gowdy Partners II LLC and Time Warner Cable, Inc. 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, 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, on August 29, 2005, granted a 65%/8 year Jobs Creation Tax Credit to Time Warner Cable Inc; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, Gowdy Partners LLC and Gowdy Partners II LLC plans to construct a 140,000 square foot facility to accommodate relocation and expansion of Time Warner Cable, Inc and a 60-75,000 square foot speculative office building; and
WHEREAS, the expansion will add approximately $27,500,000 in investment within the City; and
WHEREAS, the relocation and expansion of Time Warner Cable, Inc. will create 153 new full-time jobs and retain 450 full-time jobs; and
WHEREAS, Gowdy Partners II LLC will create an additional 50 new full-time jobs; and
WHEREAS, Gowdy Partners LLC, Gowdy Partners II LLC and Time Warner Cable, Inc. has indicated that tax incentives are crucial to its decision to locate the aforementioned project to the Columbus site; and
WHEREAS, the Columbus Department of Development has investigated Gowdy Partners LLC, Gowdy Partners II LLC and Time Warner Cable, Inc's proposal and application for tax incentives and has determined that Gowdy Partners LLC, Gowdy Partners II LLC and Time Warner Cable, Inc. 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 with Gowdy Partners LLC and Gowdy Partners II LLC in order to obtain an Enterprise Zone incentive and to enter into a formal, binding agreement with Time Warner Cable, Inc. in order to obtain a Jobs Creation Tax Credit tax incentive in the State and City; and
WHEREAS, the City desires to enter into such binding, formal agreements 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 the Department of Development is hereby authorized to enter into an Enterprise Zone Agreement with Gowdy Partners LLC and Gowdy Partners II LLC and 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 $27,500,000 investment.
Section 2. That the Director of the Department of Development is hereby authorized to enter into a Jobs Creation Tax Credit Agreement with Time Warner Cable, Inc. and to provide therewith an exemption of sixty-five percent (65%) for a term of ten (10) taxable years in association with the creation of 203 new full-time jobs.
Section 3. That the City of Columbus Enterprise Zone Agreement shall be signed by Gowdy Partners LLC and Gowdy Partners II LLC. The Jobs Creation Tax Credit Agreement shall be signed by Time Warner Cable, Inc. Each agreement shall be signed within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period permitted by law.