Explanation
BACKGROUND: The Tax Incentive Review Council (the "TIRC") recommended on August 25, 2006, that the City dissolve the Enterprise Zone Agreement with Safety Today, Inc. and Meritex Columbus, LLC (the "EZA") as of December 31, 2006, with 2006 as the final tax year for the exemptions on real and personal property under the EZA, unless Meritex's tenant at the project facility, Kumho Tire USA, converts eight (8) of its temporary jobs to full-time permanent jobs, with the conversion accomplished or imminent by October 7, 2006. The City concurs with the TIRC's recommendation.
Columbus City Council authorized the EZA initially in March 2001 with Safety Today, Inc. ("Safety Today") and the Daimler Group, Inc. and in September 2001 approved Spiegel Drive, LLC to replace The Daimler Group, Inc. in the EZA. The companies entered into the EZA effective January 1, 2002. Meritex Columbus, LLC ("Meritex") succeeded to the interest of Spiegel Drive, LLC in December 2004 with the approval of City Council. The project site is located at 2425 Spiegel Drive in the Rickenbacker area. The EZA granted a 60%/7-year tax abatement on real property improvements and new personal property and required real property investment of $4.8 million to construct a 225,000 square foot facility of which Safety Today would lease approximately 40%. Safety Today committed to invest $1,550,000 in new personal property, of which $1 million was for new inventory. It was later determined that the project site is within the Foreign Trade Zone (100% inventory exemption) making the EZA exemption on inventory superfluous. The project has met most of the real and personal property investment goals. The EZA required Safety Today to retain 43 existing jobs and for a total of 48 new full-time permanent jobs to be created, of which Safety Today was responsible for 23 jobs and Meritex was responsible for securing a tenant(s) that would create 25 new jobs. Meritex secured Kumho Tire USA ("Kumho...
Click here for full text