Explanation
Background: The need exists to enter into an Enterprise Zone and Jobs Creation Tax Credit Agreement with Hirschvogel
Incorporated. Ohio Enterprise Zone law (O.R.C. Section 5709.62) and Jobs Creation Tax Credit law (O.R.C. Section 718.15) requires the City to enter into a Council-approved agreement with a participating company.
Hirschvogel is located at 2230 South Third Street on Columbus' Southside. The company was established at that site in 1988 where it currently has 134 full-time and 22 part-two employees engaged in the manufacture of forged metal parts for the automotive industry. Hirschvogel is headquartered in Denklingen, Germany and has facilities worldwide in China, South America and parts of the United States and Germany.
The company proposes to construct a new building to house both warm and cold forged press operations to add to its existing facilities. Total investment in both real and personal property will be between $8.6-$10 million with the creation of at least 46 new manufacturing jobs to add to its existing employment base. The Ohio Department of Development has obtained a 7-year, 55% Jobs Creation Tax Credit for this project to help secure the jobs and investment for Ohio.
The Columbus Department of Development is proposing a 10-year, 75% real and personal property abatement under the City's Enterprise Zone Program with a 7-year, 55% Jobs Creation Tax Credit to capture this project for Columbus.
Emergency action is requested in order to allow Hirschvogel to make its decision on where to locate its proposed project as quickly as possible.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize and direct the Director of the Development Department to enter into an Enterprise Zone and Jobs Creation Tax Credit Agreement with Hirschvogel, Incorporated to provide a 10-year/75% real and personal property tax exemption on the company's proposed minimum investment of $8.6 million and a 7-...
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