Explanation
Background: This legislation authorizes the Director of Development to amend the City's Enterprise Zone Agreement (EZA) with Carr Supply ("Carr"). When creating the EZA, an inadvertent error was made in listing the dates for abatement. The investment period in Section 1 correctly states that the project investment will begin in April 2005 and be complete by April 2008. Section 4 of the EZA, however, does not allow any exemption to commence after tax return year 2008 for personal property and 2006 for real property. Without amending the agreement, Carr will be unable to obtain the majority of the agreed upon tax abatement. This amendment will allow tax abatement to commence as late as 2009 and extend as late as the end of 2015 and will also clarify that the tax abatement for real property is for seven (7) years, which is the same number of years as the tax abatement for the personal property.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Enterprise Zone Agreement with Carr Supply to allow tax abatement to commence as late as 2009 and extend as late as the end of 2015 and to clarify that the tax abatement for real property is for seven (7) years.
Body
WHEREAS, the Columbus City Council approved an Enterprise Zone Agreement (EZA) with Carr on March 9, 2005, by Ordinance No. 0348-2005, and the EZA was entered into effective November 16, 2005; and
WHEREAS, the EZA provides for a 65% /7-year tax abatement on project investment, including real property improvements, new machinery & equipment, and new furniture & fixtures; and
WHEREAS, Section 1 of the EZA allows the investment period to extend to April 2008, but Section 4 of the EZA erroneously provides for personal property tax exemptions to commence not later than tax return year 2008 and extend only through tax return year 2014 and for real property exemptions to commence not later than 2006 and extend only through 2014; and
WHEREAS, for Carr to receive the full benefit of its tax abatement as intended by the City, the tax exemptions for real property should be allowed to commence no later than tax year 2009 and to extend through tax year 2015 and the tax exemptions for personal property should be allowed to commence no later than tax return year 2009 and extend through tax return year 2015; and
WHEREAS, Section 4 of the EZA is not clear in the period allowed for real property exemption but should be the same period as allowed for personal property (7 years); and
WHEREAS, the City wishes to allow Carr to receive the full amount of abatement agreed upon; and
WHEREAS, both the City and Carr desire to amend the existing EZA so that Carr may secure the expected tax benefits from its expected real property and personal property investment; 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 amend the Enterprise Zone Agreement with Carr Supply by allowing the tax exemptions for real property to commence no later than tax year 2009 and to extend through tax year 2015 and allowing the tax exemptions for personal property to commence no later than tax return year 2009 and to extend through tax return year 2015 and to clarify that real property tax exemptions are for a period of 7 years.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.