Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with DSW Inc. and 4300 Venture 34910 LLC (lessor) and to enter into a Jobs Creation Tax Credit Agreement with DSW Inc. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (C) and Jobs Creation Tax Credit law (O.R.C. Section 718.158) require the City to enter into a Council-approved agreement between the City and participating companies.
DSW Inc. (DSW) is one of the fastest growing retailers in the country. DSW currently operates 204 retail stores in 33 states with plans to open 200 more stores in the near future. In order to accommodate this growth, DSW needs to expand its current headquarters.
DSW is proposing to build a new headquarters in Columbus. This new location is currently being used as warehouse space and is located at 4030 East Fifth Avenue, approximately 100 yards from their current headquarters located at 4150 East Fifth Avenue. The proposed project will convert 147,000 square feet of current warehouse space into a new headquarters. The project will include an investment of $6,500,000 in real property improvements, an investment of $2,000,000 in personal property (machinery & equipment, furniture & fixtures, and stand-alone computers), the retention of 195 (one hundred ninety-five) full-time permanent jobs, and the creation of 75 (seventy-five) new full-time permanent jobs.
The Department of Development recommends a 75%/10 year Enterprise Zone tax abatement on real property improvements, a 75%/3 year Enterprise Zone tax abatement on personal property under the City's Enterprise Zone Program and a 65%/8 year Jobs Creation Tax Credit.
The Columbus Public School District has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with DSW Inc. and 4300 Venture 34910 LLC (lessor) for a real estate tax abatement of 75% for a period o...
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