Explanation
BACKGROUND: Columbus City Council, by Ordinance 0863-2007, passed June 11, 2007, authorized the City to enter into an Enterprise Zone Agreement (the Agreement) with DCT Mohawk, LLC (Enterprise) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a $6,115,000 investment in real property improvements and the creation of 20 permanent full-time jobs related to a 180,000 square foot expansion of their existing 350,000 square foot facility on parcel number 495-269365 at 6450 Lasalle Drive within the City of Columbus Enterprise Zone (Project). The Agreement was made and entered into to be effective November 7, 2007 (EZA# 023-07-06).
At the 2009 Columbus Tax Incentive Review Council (TIRC) held on August 18, 2009, the DCT Mohawk, LLC Enterprise Zone project was recommended to be continued as part of the Consent Agenda, as the project was in compliance as of December 31, 2008. The project was listed as a Future project on the Consent Agenda as the construction window was to be no later than the January 2009 to July 2009 time frame and the job creation window was the 2009 through 2011 time frame. As per the most recent reporting period ending December 31, 2009, Enterprise had not yet begun construction and no new jobs had been created. Enterprise has related through communication with the City that market conditions have resulted in the inability to initiate construction and begin new employment at this facility as per the Agreement, and that this time Enterprise has no immediate plans to do so. As the Agreement is now out of compliance both the City and Enterprise have agreed to dissolve the Agreement.
This legislation is presented as an emergency measure in order for this amendment to be legislated prior to the 2010 TIRC.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Enterprise Zone Agreement with DCT Mohawk, LLC; to direct the Director of the Department...
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