Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), on November 7, 2016, per Ordinance No. 0832-2015, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Hirschvogel Incorporated (the “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a total capital investment of approximately $50.35 million, which included $14.7 million in real property improvements, over $35.5 million in machinery and equipment, and $150,000.00 in land acquisition related to the construction and expansion of its North American manufacturing operation facility consisting of approximately 65,000 square feet at 2230 S. Third Street Columbus, Ohio 43207, parcel number 010-112778 (the “PROJECT SITE”), within the Columbus City School District and the Columbus Enterprise Zone (the, “PROJECT”). Additionally, the ENTERPRISE committed to the creation of 37 net new full-time permanent positions with an estimated annual payroll of approximately $1.3 million and the retention of 322 full-time jobs with an annual payroll of approximately $14.35 million at the aforementioned PROJECT SITE. The AGREEMENT was made and entered into effective August 24, 2015 (EZA #023-15-103). The AGREEMENT stated that construction, on the improvements, (the, “PROJECT”) was expected to begin September 2015, with all real property improvements expected to be completed by December 2017, and no real property exemption was to commence after 2018 nor extend beyond 2027.
Subsequently, on November 7, 2016, COUNCIL passed Ordinance No. 2693-2016 which authorized the Director of the Department of Development to amend the AGREEMENT. The ordinance reduced the proposed capital investment expenditure from $50.35 million to $28.88 million and reduced the new job creation commitment from 37 net new full-time permanent positions to 30 net new full-time permanent positions, the estimated annual payroll for those posit...
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