Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with VNC Bearing, Inc. and VNAC Holdings LTD. 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.
VNC Bearing, Inc. (VNC) imports and wholesales industrial supplies, specializing in bearings. The company was founded in 1994 in Long Beach, California and relocated its headquarters to Columbus, Ohio in 1998.
VNC imports various types of bearings from around the world and supplies customers in the United States, Canada and Mexico. VNC supplies bearings for trailers, electric motors and pumps, material handling equipment and power equipment.
Due to an increase in business, VNC needs additional space. VNC's real estate holding company, VNAC Holdings LTD, is proposing to build a business condominium project consisting of 2 buildings with 11 units totaling 58,000 square feet on Paragon Drive. VNC will occupy 3 of the units, the other 8 units will be sold as industrial flex condos. The future business condo unit owners will sign a Partial Assignment Agreement to be eligible for their portion of the tax abatement.
The project will include an investment of $4.1 million in real property improvements and personal property, the creation of 21 new full-time permanent jobs and the retention of 7 full-time permanent jobs.
The Department of Development recommends a 65%/7 year Enterprise Zone tax abatement on real property improvements. The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects.
Emergency action is requested of City Council in order to facilitate a project start.
The Hilliard 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 VNC Bearing, Inc. and VNAC...
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