Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Menard, 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. This ordinance authorizes the Director of Development to enter into an Enterprise Zone Agreement with Menard, Inc. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a $11.5 million investment in real property improvements and personal property and the creation of 80 new full-time permanent positions.
Menard, Inc., (Menards) is a Wisconsin Corporation, established for the purpose of home improvement and building supply materials. During the 1970s and 1980s, Menards opened building supply stores in a five-state area including: Wisconsin, Iowa, North and South Dakota, and Minnesota. By 1986, Menards ranked 15th among the top home improvement chains, with estimated sales from the 34 outlets approaching the half billion mark.
Menards celebrated the opening of its 150th store in early 2000. Columbus will be the home of the next Menard's facility. The redevelopment known as Northland Village will be site of the new store. The former Northland Mall is one of the targeted areas of redevelopment for the City of Columbus. The construction of the Menard's facility will continue to encourage growth and redevelopment for the Northland Village. The specific location is 1819 Morse Road.
The Department of Development recommends a 75%/10 year tax abatement on real property improvements. The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects. The Columbus School District has been advised of this project.
Emergency action is necessary to allow construction to begin immediately within Northland Village.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with Menard, Inc. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a $11.5 million investment in real property improvements and personal property and the creation of 80 new full-time permanent positions; and to declare an emergency. (AMENDED BY ORD. 1773-2010 PASSED 12/13/2010)
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, Menard, Inc. plans to invest $11.5 million in real and personal property to build their facility at 1819 Morse Road to accommodate job creation; and
WHEREAS, Menard, Inc. will create 80 new full time permanent jobs; and
WHEREAS, the Department of Development recommends an Enterprise Zone Agreement with Menard, Inc. for a 75%/10 year tax abatement on real property improvements; and
WHEREAS, emergency action is necessary to allow construction to begin immediately within Northland Village; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into an Enterprise Zone Agreement with Menard, Inc. 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 Menard, Inc. to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years in consideration of the proposed investment of $6.5 million in real property improvements and the creation of 80 new full-time permanent positions.
Section 2. The Enterprise Zone Agreement will be signed by Menard, Inc. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 3. That for the reasons stated in the preamble hereto, which is hereby make a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.