Explanation
BACKGROUND: The AmerisourceBergen Drug Corporation Enterprise Zone Agreement was authorized by City Council on September 16, 2002 and was entered into effective July 14, 2003. City Council approved an amendment to The AmerisourceBergen Drug Corporation Enterprise Zone Agreement on December 6, 2004, which added The Fifth Third Leasing Company to the Agreement and allowed the personal property exemptions granted to the AmerisourceBergen Drug Corporation under the Enterprise Zone Agreement to extend to personal property leased from the Fifth Third Leasing Company and/or any assignee or successor lessor subsequently identified in writing to the City's Director of Development. The AmerisourceBergen Drug Corporation Enterprise Zone Agreement as amended (the "EZA"), provides for a 75%/10-year tax abatement on real property improvements and new personal property based on an investment of $43,275,000, including approximately $19.5 million in personal property. The project included the construction of a 314,000 square foot new facility at 6305 LaSalle Drive in the Rickenbacker area. The construction was complete in 2003 and the tax exemptions commenced in 2004. The jobs goal under the EZA is 200 jobs retained and 64 new jobs created by July 2006 (a total of 264 jobs). AmerisourceBergen has satisfied the investment goal but is short of the job creation goal. As of July 2007, 200 jobs had been retained and 17 new jobs created, with recruitment underway in July to fill 2 new job openings.
The Tax Incentive Review Council (TIRC) recommended on August 21, 2007 to amend the EZA to reduce the job creation requirement from 64 jobs to 19 jobs, to reduce the corresponding payroll commitment and to eliminate the personal property tax abatement for 2008, which is the final year for personal property tax in Ohio. This legislation will authorize amendment of the EZA to reflect the TIRC recommendation. It is anticipated that the company will be able to be mai...
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