Explanation
BACKGROUND: The need exists to do an additional amendment of the Enterprise Zone Agreement with Brooks Beverage Management, Inc., as established under Ohio Enterprise Zone law, O.R.C. Section 5709.62(3). The original Agreement was approved under Columbus City Council Ordinance No. 2991-98, passed November 16, 1998. Columbus City Council authorized the First Amendment on May 15, 2000, by Ordinance No. 1159-00.
The original Agreement provided a 50%/10-year tax abatement for new machinery & equipment and a new warehouse to be constructed at the project site (950 Stelzer Rd). The new machinery & equipment had been purchased and installed, but the new warehouse construction scheduled for 1999 was delayed due to unexpected wetlands issue which has now been rectified Construction is scheduled to begin in late 2003 and end in 2004.
The company has requested a delay in its tax abatement on real property improvements due to the delay in construction of the new warehouse. This Amendment will shift the allowable period of tax exemption from 2000-2009 (original Agreement) to 2005-2014 (2nd Amendment) on real property improvements only. The Amendment will not change the percent of the tax exemption (50%) or the maximum number of years of the exemption (10 years).
Since the first agreement was signed in 1998 Brooks Beverage has also increased its automated technology thereby reducing the number of employees it needs to operate the warehouse. Subsequently, they are requesting to alter the job creation number from 115 to 69. The Economic Development Division would recommend offering the same incentive today in order to create 69 new jobs.
The Columbus Public School District has been advised of this proposed Amendment.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Enterprise Zone Agreement between the City and Brooks Beverage Management, Inc., changing the ...
Click here for full text