Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with ADS Alliance Data Systems, Inc. and Duke Realty Corporation, and a Jobs Creation Tax Credit Agreement with ADS Alliance Data Systems, Inc., and Ohio Enterprise Zone law (O.R.C. Section 5709.61 et seq.) and Jobs Creation Tax Credit law (O.R.C. Section 718.15) require the City to enter into a Council-approved agreements with the participating companies.
Duke Realty Corporation proposes to build a 200,000 square foot office building that ADS Alliance Data Systems, Inc. will occupy under a net lease arrangement with Duke Realty Corporation. The project will be located on Stelzer Road in the Easton area in Columbus' North Enterprise Zone. The project will include an investment of $24,700,000. Included in this investment will be $23,650,000 in real property improvements, $250,000 in machinery & equipment, $750,000 in furniture & fixtures and $50,000 in stand alone computers. ADS Alliance Data Systems, Inc. will relocate and retain 529 full-time permanent employees, which will be new to Columbus, with an annual payroll of $40 million and create 54 full-time permanent jobs with an annual payroll of $2.7 million. Columbus will revenue share with the Columbus Public Schools under O.R.C. Section 5709.82. The 529 jobs will be relocated from the City of Gahanna, which has been notified of the proposed relocation. The Ohio Department of Development, pursuant to O.R.C. Section 5709.633 (B), has waived the relocation restrictions.
The Department of Development recommends a 100%/10 year tax abatement on real property improvements, machinery & equipment, furniture & fixtures and stand-alone computers, contingent on prior approval by the Columbus Public Schools. The Department also recommends a 65%/15 year Jobs Creation Tax Credit.
The Columbus Public School District has been advised of the project and will approve the Enterprise Zone tax abatement prior to this Council's approval o...
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