Explanation
BACKGROUND: The 2008 Columbus Tax Incentive Review Council (TIRC) reviewed the General Products Corporation Enterprise Zone project on August 19, 2008, and recommended that the City should consider dissolving the Enterprise Zone Agreement (EZA) between the City and General Products Corporation (EZA# 292-05-01). The City concurs with the recommendation of the TIRC.
Columbus City Council approved the EZA by Ordinance No. 1822-2005, adopted November 14, 2005. The EZA was entered into effective December 5, 2005 and granted a 75%/10-Year abatement on real property improvements and personal property investment with a commitment of $300,000 in real property improvements, $6.48M in personal property investment, and the creation of 80 new permanent full-time jobs related to the expansion of approximately 125,000 square feet at their facility located on parcel number 010-0097789 at 3985 Groves Road within the Columbus Southeast Enterprise Zone.
Additionally, the City of Columbus entered into a 60%/10-Year Jobs Creation Tax Credit (JCTC) Agreement with General Products Corporation (Enterprise) effective December 9, 2005, approved by Ordinance No. 1822-2005, adapted November 14, 2005.
If the EZA and JCTC are dissolved, 2007 will have been the final tax year for the incentives and the City will not seek repayment of the exempted or credited taxes from prior years.
As of the TIRC review on August 19, 2008, Enterprise had exceeded their real property investment goal with a reported $3.29M investment, had exceeded their personal property investment goal with a reported $13.39M investment, and had exceeded their interim end-of-2007 new job creation goal of 60 with a reported 76 new full-time jobs. Enterprise has fulfilled all of the terms of their EZA thus far but market conditions - the loss of a contract with a major automotive manufacturer - has lead the Enterprise to consolidate operations at another facility in Indiana.
This legislation is pre...
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