Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to dissolve the existing Enterprise Zone Agreement (EZA) with Edwards Companies. Columbus City Council approved the Enterprise Zone by Ordinance No. 2611-96 on November 11, 1996. The Columbus Tax Incentive Review Council (TIRC) recommended on November 13, 2003 that the City dissolve the EZA and end the associated tax incentives because the company is unable to meet their personal property and job creation goals. The City concurs with the TIRC's recommendation.
The tax incentive, which was granted in 1996, is a 50% 5 years Personal Property.
The City granted the tax incentive in order to capture a proposed relocation and expansion by Edwards Companies at its 1320 McKinley Avenue facility. The project called for the creation of 40 new full time jobs; retention of 125 full time jobs; annual payroll of $860,000; and an investment of $4,600,000. Edwards met their job retention goals, however the company has been unable to attain their personal property investment or job creation goals.
Edwards has been hit hard by the poor economy that resulted in one of their two parties filing bankruptcy. The abatement is due to expire at the end of 2003, however the company has issued a written statement that they will not use the abatement for tax years 2002 or 2003.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to terminate the existing Enterprise Zone Agreement with Edwards Companies and to end the related property tax exemptions.; and to declare an emergency.
Body
WHEREAS, by authority of Columbus City Council Ordinance No. 2611-96, the City entered into an Enterprise Zone Agreement with Edwards Companies on November 11, 1996; and
WHEREAS, the tax incentive agreements called for Edwards Companies to invest approximately $4,600,000 in new personal property at 1320 McKinley Aven...
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