Explanation
BACKGROUND:
This legislation authorizes the Director of Development to dissolve the existing Enterprise Zone Agreement between the City of Columbus and Crane Plastics Company Limited Partnership, TimberTech Limited, CPC Tooling Technologies LLS, Crane Plastics Siding LLC, Crane Blending Center LLC, Crane Plastics Manufacturing Ltd., and Crane Products, Ltd (hereinafter, collectively, "Crane"). Columbus City Council approved the EZA by Ord. No. 1194-97. The Enterprise Zone Agreement granted Crane a 50%/10-year abatement on real property improvements and new machinery, equipment and inventory (1999-2008). Crane committed to invest $7.9 million in real property improvements, $13.1 million in new machinery and equipment, $2.8 million in new inventory, to retain the existing 675 jobs and create 95 new jobs. Crane is located at 2141 Fairwood Avenue in the city's Southside.
Crane has invested more than twice as much in real and personal property as the Enterprise Zone Agreement requires. At the same time, the company has fallen short of the job creation and retention goals. In December 2005, Crane was satisfying 100% of its job retention requirement but had created only 21 new jobs. In view of changes in economic and business conditions since 1997, Council approved an amendment in 2004 that allowed Crane the leeway to count contract employees towards the job goal. However, Crane's custom extrusion business continues to experience slower growth that what the company had anticipated in 1997. Crane has concluded that attaining the job creation goal is highly unlikely and has requested the City to dissolve its Enterprise Zone Agreement, with tax year 2004 to be the final year of the abatement period. Thus, the final year of the tax exemptions would be for real estate taxes paid in calendar year 2005, but based on the value of real estate owned in 2004 and for personal property taxes paid in 2005, which are based on the December 2004 balance shee...
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