City of Columbus - File #: 1911-2004

• File #: 1911-2004
• 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 accept the recommendation of the Columbus Tax Incentive Review Council with respect to the Amerigraph LLC Enterprise Zone Agreement and to authorize the Director of the Department of Development to notify Amerigraph that its Enterprise Zone Agreement with the City of Columbus is dissolved and the tax exemptions cancelled, and that the City is requiring repayment of the amount of taxes that would have been payable had the property not been exempted from taxation under the Agreement approved by Columbus City Council; 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 accepts the Columbus Tax Incentive Review Council's recommendation made August 30, 2004 regarding the Amerigraph LLC Enterprise Zone Agreement (EZA).

Columbus City Council authorized the EZA on January 22, 2001 by Ordinance 6-01, which granted a 40%/5-year tax abatement on new M & E (2001-2005). Amerigraph LLC ("Amerigraph") agreed to invest $7,150,000, of which $7 million was for new M & E and $150,000 for leasehold improvements, and to retain 16 jobs and create 40 new jobs with $1,664,000 in annual payroll for the new jobs. The project site is in the Hilliard School District on the west side of Columbus. Amerigraph reported that by the end of 2003 it had invested $6.5 million ($6.3 million in M & E), retained 16 jobs and created 76 new jobs, with a 2003 payroll of $2.4 million for the new jobs. At its August 12, 2004 meeting, the Columbus Tax Incentive Review Council (TIRC) recommended the abatement be continued, provided that City staff obtains clarification to explain a discrepancy in the information about the company's personal property investment.

On August 25, 2004, the Columbus Dispatch reported that Amerigraph plans to move out of Columbus and relocate to Gahanna, to a site that offers 100%/10-year tax abatement. Following this news, the TIRC Chair called an emergency meeting to revisit the earlier (August 12th) recommendation on Amerigraph. The TIRC met August 30th with Amerigraph representatives in attendance. The relocation to Gahanna is anticipated to occur in for the First Quarter of 2005, which is prior to when the tax abatement from Columbus expires (December 31, 2005). Following statements by the Amerigraph attendees, and discussion by TIRC members, the TIRC voted to recommend that the City dissolve the EZA, cancel the exemptions and require repayment of the taxes that had been exempted under the EZA.

Emergency action is requested to meet the new deadline under State law for C...