Explanation
BACKGROUND: Columbus City Council (Council), by Ordinance 0639-2008, passed July 7, 2008, authorized the City of Columbus (City) to enter into an Enterprise Zone Agreement (the Agreement) with American Signature, Inc. and JAL Realty Co. (together "Enterprise") for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of an investment of up to $3,200,000 in real property improvements, an investment of up to $8,500,000 in personal property, and the retention of 178 existing full-time permanent positions related to the renovation of an existing distribution center facility located at 3080 Alum Creek Drive (The Project Site), parcel number 530-156597, in Columbus, Ohio, within the City of Columbus Enterprise Zone (Zone #023) and within the Groveport Madison Local School District. The Agreement was made and entered into to be effective September 17, 2008 (EZA #023-08-03).
The Agreement was subsequently authorized by Council to be amended for the first time to remove any and all language pertaining to personal property investment and tax abatements related to this personal property investment from the Agreement by Ordinance 0614-2009, passed May 11, 2009, with this first amendment made and entered into effective January 1, 2009 and executed on January 30, 2012; and that this Agreement was subsequently authorized by Council to be amended for the second time to revise the job retention requirement as set forth in the Agreement from 178 to 126 jobs with a commensurate retained job payroll of $5,400,000 by Ordinance 1989-2011, passed November 21, 2011, with this second amendment made and entered into effective January 1, 2011 and executed on January 30, 2012.
As per the annual report submitted for Report Year 2011, Enterprise reported 86 retained jobs with a payroll of $4.3 million, sixty-eight percent (68%) and seventy-nine percent (79%) attainment respectively as per the Agreement. Additionally, the Franklin County...
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