Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Terminal Warehouse, 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.
Terminal Warehouse, Inc plans to lease 172,800 square feet of a facility to accommodate expansion. The project will include an investment of $12,850,000 and the creation of twenty-four (24) full-time jobs.
The Department of Development recommends a 75%/10 year tax abatement on real property improvements, machinery & equipment, furniture & fixtures, and inventory. The proposal is consistent with Columbus Tax Incentive Policy under Edge City Area 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 agreement with Terminal Warehouse, Inc. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed $12,850,000 investment in real property improvements, machinery & equipment, furniture & fixtures, inventory and the creation of twenty-four (24) new jobs; and to declare it 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
WHEREAS, the Ohio Development of Department approved this designation under State of Ohio enterprise law, by letter dated June 12, 1985; and
WHEREAS, Terminal Warehouse, Inc plans to lease 172,800 square feet of a facility to accommodate expansion; and
WHEREAS, the expansion will add approximately $12,850,000 in investment within the City; and
WHEREAS, the expansion will create 24 (twenty-four) new full time jobs; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter an Enterprise Zone Agreement in order to preserve the public health, peace, property, safety and welfare; 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 Terminal Warehouse, Inc and to provide therewith an exemption of seventy-five percent (75%) on real property improvements, machinery & equipment, furniture & fixtures, and inventory for a term of ten (10) taxable years in association with the project's proposed $12,850,000 investment.
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.