Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with SEA, Ltd. 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.
SEA, Ltd. is worldwide leader in forensic research, testing and analysis, providing expert witness testimony to manufacturers, insurance companies, law firms and municipalities. SEA, Ltd.'s core disciplines include electrical engineering, mechanical engineering, civil engineering, fire investigation, industrial hygiene and environmental analysis. The company has ten offices throughout the United States, with a full-time staff of engineers, investigators and chemists that are court-qualified experts in their respective fields.
SEA, Ltd. will construct a new global corporate headquarters that will include a state-of-the-art scientific research and development facility. A new 90,000-100,000 square foot facility will be constructed on Schrock Road near the Anheuser Busch site. A total investment of $9.4 million is proposed at the site with $9 million toward building construction and $400,000 in machinery, equipment, furniture and fixtures. A total of 30 new full-time permanent positions will be created and 96 existing full-time positions will be retained.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements.
The Worthington City Schools has been advised of this project.
Emergency action is necessary in order for this project to move forward with its initial permitting process in order to meet completion deadlines.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with SEA, Ltd. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a proposed total capital investment of $9.4 million with $9 million toward new construction and $400,000.00 for equipment, furniture and fixtures; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the Central 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, 2690-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; 0225-03 in 2003; and 0032-2012 in 2012; 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 Code and recertified 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, August 19, 2003 and most recently on April 3, 2012 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, SEA, Ltd. proposes to construct and equip a new facility on Schrock Road, parcel number 610-291371; and
WHEREAS, SEA, Ltd. will make a proposed total capital investment of $9.4 million, with $9 million toward the new construction of a 90,000-100,000 square foot facility and $400,000 for equipment, furniture and fixtures; and
WHEREAS, SEA, Ltd. will create 30 new full-time permanent jobs with an annual payroll of $3 million and will retain 96 full-time positions at the project site; and
WHEREAS, the City is encouraging this project because of plans to redevelop urban commercial property in the central city; and
WHEREAS, the City desires to enter into such a binding formal agreement in order to foster economic growth for the preservation of public health, peace, property and safety, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to take action on this agreement in order for this project to move forward with its initial permitting process in order to meet completion deadlines, all for the preservation of the public health, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That 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 abatement is a critical factor in the decision by SEA, Ltd. to go forward with the project expansion.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of Development is hereby authorized and directed to enter into and execute an Enterprise Zone Agreement with SEA, Ltd. 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 investment of approximately $9.4 million at the site; with $9 million toward new construction and $400,000 for equipment, furniture and fixtures; and the creation of 30 new permanent full-time positions with an annual payroll of approximately $3 million and the retention of 96 full-time positions.
Section 4. That the City of Columbus Enterprise Zone Agreement is signed by SEA, Ltd. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this 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.