Explanation
BACKGROUND: Columbus City Council (Council), by Ordinance No. 0230-2005, passed February 14, 2005, authorized the City to enter into an Enterprise Zone Agreement (the Agreement) with ms consultants, inc. (Enterprise) and 2 Generation LTD (Landlord) for a tax abatement of sixty-five percent (65%) for a period of ten (10) years in consideration of a $2,738,000 investment in real property improvements by Landlord, a $300,000 investment in personal property, the retention of 89 permanent full-time jobs, and the creation of 69 permanent full-time jobs by Enterprise related to a 16,000 square foot addition to their facility at 2221 Schrock Road in Columbus, Ohio and within the City of Columbus Enterprise Zone. The Agreement was made and entered into to be effective July 27, 2005 (EZA# 023-05-05).
The 2009 Columbus Tax Incentive Review Council (TIRC) reviewed the ms consultants, inc. and 2 Generation LTD Enterprise Zone project on August 18, 2009, and recommended that the Agreement be continued and that City send Enterprise a job creation warning letter, request a written job plan, and to allow for the possibility of amending the jobs numbers as per the Agreement. Both City and Enterprise have been compliant with the requests of the TIRC. This legislation seeks to authorize amendment of the Agreement to amend the job creation and job retention requirements as set forth in the Agreement, removing specific requirements for the creation and retention of jobs and replacing that with achieving and maintaining an overall job level of 105 jobs with a commensurate overall payroll of $3,675,000. It is anticipated that the company will be able to maintain good compliance in future years with the revised overall job level requirement. The terms of the property tax abatement are not modified by this amendment and it is expected to run through 2013.
This legislation is presented as an emergency measure in order for this amendment to be legislated prior to the 2010 TIRC.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Enterprise Zone Agreement with ms consultants, inc. and 2 Generation LTD; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved the Enterprise Zone Agreement with ms consultants, inc. and 2 Generation LTD (the "EZA") on February 14, 2005 by Ordinance No. 0230-2005 and entered into effective July 25, 2005; and
WHEREAS, the EZA grants ms consultants, inc. and 2 Generation LTD a 65%/7-Year abatement on real and personal property investment; and
WHEREAS, the EZA requires ms consultants, inc. and 2 Generation LTD to invest $2,738,000 in real property improvements, $300,000 in personal property, retain 89 permanent full-time jobs, and create 69 permanent full-time jobs at their facility to be expanded at 2221 Schrock Road; and
WHEREAS, the Tax Incentive Review Council (the "TIRC") met on August 18, 2009 and it was reported then that the project had met the real and personal property investment goals and the job retention goal of the EZA but job creation had fallen short, with 7 jobs created as of December 31, 2008, compared to the job creation goal of 69; and
WHEREAS, the TIRC recommended that the EZA be continued and that City send ms consultants, inc. (Enterprise) a job creation warning letter, request a written job plan, and to allow for the possibility of amending the jobs numbers as per the EZA; and
WHEREAS, an analysis of the Report Year 2009 Annual Report submitted to the City by Enterprise during the most recent reporting cycle indicated that again the project had met the investment goals and the job retention goal of the EZA but job creation continued to be low, with 26 jobs created; and
WHEREAS, as the City and Enterprise have been compliant with the recommendations of the TIRC, the City desires to amend the job creation and retention requirements of the EZA; 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 these agreements in order for this amendment to be legislated prior to the 2010 TIRC, and to preserve the public health, property, safety and welfare; 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 ms consultants, inc. and 2 Generation LTD Enterprise Zone Agreement (EZA) to amend the job creation and job retention requirements as set forth in the EZA, removing specific requirements for the creation and retention of jobs and replacing that with achieving and maintaining an overall job level of 105 jobs with a commensurate overall payroll of $3,675,000.
Section 2. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.