Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to amend the Community Reinvestment Area Agreement with Schmidt Development LLC to require that at least seventy-five percent (75%) of the combined jobs commitment for created and retained jobs is attained by December 31, 2007, or one (1) year of the tax abatement will be eliminated. The combined jobs commitment is 275 jobs and seventy-five percent (75%) of that number is 206 jobs. If one (1) year of the tax abatement were eliminated, the final year for the real property tax exemptions would be 2010. This amendment reflects the recommendation made by the Tax Incentive Review Council (the "TIRC") on August 21, 2007.
Columbus City Council approved the Schmidt Development LLC Community Reinvestment Area Agreement on July 10, 2000 by Ord. No. 1661-00, the Agreement became effective September 27, 2000 and City Council subsequently approved an amendment to the Agreement on October 16, 2006 by Ord. No. 1789-06. The Schmidt Development LLC Community Reinvestment Area Agreement as amended in 2006 (the "CRA Agreement") provides a 50%/10-year tax abatement on real property improvements (2002-2011). The CRA Agreement requires $13,446,000 to be invested in real property improvements and for 210 jobs to be retained and 65 jobs to be created. The combined commitment of created and retained jobs is thus 275 jobs. The project site is known as the Market Exchange District and is located along several blocks of E. Main Street, just west of the I-71 underpass. Currently buildings on four different parcels are receiving real property tax abatement under the CRA Agreement. The annual amount of tax savings is estimated to be $62,318.
Project investment is satisfactory, albeit slightly low at $12,964,000 (96% of goal). The jobs goal has not been attained, however. As of August 2007, we have been able to verify only 157 jobs in the tax-abated buildings based on the job ...
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