Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with American Signature, Inc and JAL Realty Co. to provide therewith an exemption of 75% on real property improvements for a term of ten taxable years in association with the project's proposed $9.7 million investment and job retention. 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.
American Signature, Inc. manufactures and sells hand-carved quality furniture. American Signature, Inc. is a subsidiary of Schottenstein Stores Corporation and employs over 7,000 people in the United States. The company has four distribution facilities and manufactures products at three US facilities, in West Virginia, Georgia and North Carolina.
American Signature, Inc. and JAL Realty Co (the real estate holding company) propose to renovate its current Warehouse/ distribution center facility located at 3080 Alum Creek Drive. The total investment will be approximately $9.7 million in real and personal property and the retention of 178 employees. American Signature, Inc. recently opened a distribution center in the Philadelphia/York area, making that area a possible location option for this project.
American Signature, Inc. and JAL Realty Co. are requesting Enterprise Zone tax abatement from the City of Columbus to assist in the development of this project. The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects.
Emergency action is requested in order to facilitate the project start date.
The Groveport Madison School District has been advised of this project.
FISCAL IMPACT: No funding is needed for this project.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with American Signature, Inc and JAL Realty Co. ; and to declare 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 subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2609-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 in 2003; 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 and recertifed 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 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, JAL Realty Co. plans to invest $2.6 million in real property improvements on parcel# 530-156597; and
WHEREAS, American Signature, Inc will invest $7.1 million in personal property and retain 178 full-time permanent positions within the City; NOW, THEREFORE, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with American Signature, Inc and JAL Realty Co. in order to facilitate the project start date, all for the preservation of public health, peace, property and safety, 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 American Signature, Inc and JAL Realty Co. 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 $9.7 million investment and job retention.
Section 2. That the City of Columbus Enterprise Zone Agreement be signed by American Signature, Inc and JAL Realty Co. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements authorized herein are null and void.
Section 3. 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.