Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Enterprise Zone Agreement with Shonac Corporation to reflect the company's new name, which is DSW Inc. The company changed its name to DSW, Inc. on February 22, 2005. The legislation also authorizes the Director of Development to amend the agreement to reflect the transfer of 195 retained jobs from 4150 East 5th Avenue to the new corporate headquarters facility to be developed at 4300 East 5th Avenue. The transferred retained jobs shall become a part of the retained job commitment for the proposed DSW, Inc. Enterprise Zone Agreement. The original agreement was approved under Columbus City Council Ordinance No. 0994-00, passed April 24, 2000. The agreement provided a 50%/7 year tax abatement on personal property. The project involved an investment of $25,381,711, the relocation of 355 jobs from Watkins Road and the creation of 73 new jobs at the project site located at 4150 East Fifth Avenue in Columbus. Based on the 2005 annual Enterprise Zone Report, Shonac Corporation is in compliance with the Enterprise Zone Agreement.
This legislation also repeals Ordinance 2445-2003, passed on December 8, 2003, that authorized the Director of Development an amendment to the Shonac Corporation Enterprise Zone Agreement. Columbus City Council authorized the amendment to reflect the planned transfer of 203 jobs to the former Northland Mall site that was renovated by Retail Ventures, Inc. Because DSW did not move any employees to that site, the amendment became unnecessary and was not executed.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Enterprise Zone Agreement with Shonac Corporation to reflect the company's new name of DSW, Inc. and to transfer 195 retained jobs to the new proposed corporate facility; and to repeal Ordinance 2445-2003, passed December 8, 2003.
Body
WHEREAS, an Enterprise Zone Agreement was approved for Shonac Corporation under ordinance No. 0994-00, passed April 24, 2000; and
WHEREAS, on February 22, 2005, the name of the legal entity known as Shonac Corporation was changed to DSW, Inc.; and
WHEREAS, a need exist to amend the Enterprise Zone Agreement with Shonac Corporation to reflect the transfer of 195 (one hundred and ninety five) of the 355 (three hundred and fifty five) retained jobs to the new DSW, Inc. corporate headquarters facility to be located at 4030 East Fifth Avenue; and
WHEREAS, the City desires to amend the existing Enterprise Zone Agreement between the City of Columbus and Shonac Corporation 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 amend the Enterprise Zone Agreement between the City of Columbus and Shonac Corporation to reflect the new name, DSW, Inc. and to transfer one hundred and ninety five (195) of the three hundred and Fifty-five (355) retained jobs to the new DSW Inc. corporate headquarters facility to be located at 4030 East Fifth Avenue.
Section 2. That Ordinance 2445-2003, passed December 8, 2003, is hereby repealed.
Section 3. That this ordinance shall take effect and be in force from and after the earliest period permitted by law.