City of Columbus - File #: 1919-2004

• File #: 1919-2004
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 10/21/2004
• In control: Jobs and Economic Development Committee
• On agenda: 11/1/2004
• Final action: 11/4/2004
• Title: To authorize the Director of Development to amend the existing Enterprise Zone Agreement with Columbus Urban Growth Corporation to eliminate the requirement for personal property investment; and to declare an emergency.

Date	Ver.	Action By	Action	Result
11/4/2004	1	ACTING CITY CLERK	Attest
11/3/2004	1	MAYOR	Signed
11/1/2004	1	Columbus City Council	Approved	Pass
11/1/2004	1	COUNCIL PRESIDENT	Signed
10/28/2004	1	Dev Drafter	Sent to Clerk's Office for Council
10/27/2004	1	City Clerk's Office	Sent back for Clarification/Correction
10/25/2004	1	Dev Drafter	Sent for Approval
10/25/2004	1	CITY ATTORNEY	Reviewed and Approved
10/25/2004	1	Dev Drafter	Sent to Clerk's Office for Council
10/22/2004	1	DEVELOPMENT DIRECTOR	Reviewed and Approved
10/21/2004	1	Dev Drafter	Sent for Approval

Explanation

BACKGROUND: This legislation authorizes the Director of the Department of Development to amend the Enterprise Zone Agreement with Columbus Urban Growth Corporation to eliminate the requirement for personal property. The project is located at 1407 and 1393 Cleveland Avenue (Four Corners). Columbus City Council approved the Enterprise Zone Agreement (EZA) by Ordinance No. 1100-00 on May 15, 2000.

The project committed to the construction of two facilities consisting of 15,000 and 52,000 square feet. The investment commitment included $450,000 for acquisition of building, $1.3 million for additions/new construction, $160,000 for machinery and equipment, $500,000 for improvements to existing building and $100,000 for furniture and fixtures. The project also was expected to create 41 new full-time jobs. The EZA provided for a 75%/10 year tax abatement on the real property improvements. Columbus Urban Growth has met its real property investment goal and 90% of its job creation goal. The project also reported $301,000 in personal property investment for the multiple small businesses that comprise the project. However, it is impossible to verify this personal property investment information by cross-checking against personal property returns because returns could not be identified for the businesses. Personal property tax is not required for businesses with listed value of $10,000 or less, or for certain types of businesses such as insurance. Since it is not possible to verify the personal property investment information, the Columbus Tax Incentive Review Council (TIRC) recommended on August 11, 2004 to eliminate the requirement for the $260,000 personal property investment.

The Development Department concurs with the TIRC's recommendation. Emergency action is requested in order to meet the new deadline under State law for City Council to vote on TIRC recommendations.

FISCAL IMPACT: No funding is required for this legislation.
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