Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Central Ohio Welding Industries, Inc. Enterprise Zone Agreement (EZA). Columbus City Council approved the EZA by Ordinance No. 35-00, adopted January 10, 2000. The project is located at 1875 Progress Avenue. The Columbus Tax Incentive Review Council recommended on November 13, 2003 that the City amend the EZA to reduce the job requirement and to extend the period of time to meet the job requirement.
The tax incentive is 50% on real and personal property tax for five (5) taxable years. The City granted the tax incentive in order for Central Ohio Welding Industries, Inc. to invest $550,000 in real property improvements and $1.3 million in personal property. The company has met its investment commitment.
Due to the economic recession and subsequent loss of customer base, Central Ohio Welding Industries, Inc. has not been able to fulfill its job retention and creation goals. The EZA states that 118 jobs would be retained and 30 would be created. At the end of 2002 the total number of retained employees was 23 and jobs created were 0.
The 5-yr/50% tax abatement is on real property improvements and personal property and will run through 2005. The rate and years of the tax abatement will not be modified.
The EZA will be modified to reduce the number of jobs retained/created to 38 (thirty-eight) and extend the period of time to meet this requirement to 12/31/05.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Central Ohio Welding Industries, Inc. Enterprise Zone Agreement to reduce the number of jobs retained/created from 148 to 38 and to extend the period of time to meet this requirement to 12/31/05; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved the Central Ohio Welding Industries, Inc. Enterprise Zon...
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