Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with AMAMATA LLC. 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. Amamata LLC will invest $1.5 million in real property improvements and create 40 new positions.
Amamata LLC is a Limited Liability Corporation established for the purpose of creating state-of-the-art healthcare facilities in the State of Ohio. The partners in the project are physicians with extensive experience in real estate development and management.
The property located at 6400 Broad Street is a 50,000 square foot facility built in 1974. The facility, referred to as the Lucent Technology site, has been vacant for the past three years. AMAMATA LLC plans to renovate the exterior and interior of the building to make it more energy efficient and conducive to green standards.
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 Gahanna Jefferson 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 Enterprise Zone Agreement with AMAMATA LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a $1.5 million investment in real property improvements and the creation of 40 new full-time permanent positions.
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, AMAMATA LLC plans to invest $1.5 million in real property improvements to rehab an existing facility at 6400 E Broad Street to accommodate job creation; and
WHEREAS, AMAMATA LLC agrees to create 40 new full time permanent jobs; and
WHEREAS, the city desires to enter into such a binding formal agreement in order to foster economic growth; 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 AMAMATA LLC 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 $1.5 million in real property improvements, and the creation of 40 new full-time permanent positions.
Section 2. The Enterprise Zone Agreement will be signed by AMAMATA LLC 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 this ordinance shall take effect and be in force from and after the earliest period allowed by law.