Explanation
BACKGROUND: The need exists to amend the Enterprise Zone and Jobs Creation Tax Credit legislation with DSW Inc. and 4300 Venture 34910 LLC. Columbus City Council approved an EZA and a JCTCA by Ordinance No. 1364-2006 on July 24, 2006. The legislation authorized the Director of Development to enter into an Enterprise Zone Agreement with DSW Inc. and 4300 Venture 34910 LLC (lessor) for a real estate tax abatement of 75% for a period of ten years and a personal property tax abatement of 75% for a period of three years and to enter into an agreement with DSW Inc. for a 65%/8 year Jobs Creation Tax Credit in consideration of a proposed $6,500,000 investment in real property improvements, the investment of $2,000,000 in personal property, the retention of 195 full-time permanent jobs and the creation of 75 full-time permanent jobs.
The project site is currently warehouse space located at 4030 East Fifth Avenue and is approximately 100 yards from their current headquarters site located at 4150 East Fifth Avenue. The project will convert 147,000 square feet of current warehouse space into a new headquarters. This amendment is needed so as to clarify the fact that (i) some of the retained jobs may from time to time be physically located at the DSW facility that is adjacent to the project site, and (ii) that the agreed upon number of jobs that DSW Inc. shall create or cause to be created will be created through DSW Inc., its subsidiaries, and/or affiliates.
This legislation is submitted as an emergency in order to allow DSW to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance No. 1364-2006, passed on July 24, 2006, that authorized the Director of Development to enter into agreements with DSW Inc. and 4300 Venture 34910 LLC for tax abatements in order to clarify the jobs retention requirement and that the agreed upon number of jobs will be created ...
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