Explanation
BACKGROUND: Community Reinvestment Areas have been designated by Columbus City Council under the general guidelines of Ordinance 1698-78. Such areas allow for the granting of real property tax incentives to encourage industrial, commercial and residential growth.
The Columbus City Council by Ordinance Number 0090X-2007, adopted on June 11, 2007, created the Rickenbacker Community Reinvestment Area (the Rickenbacker "CRA") to offer up to 100% for up to 15 years for the new construction of commercial or industrial facilities.
This Ordinance seeks to approve a 50%/15 year tax abatement for Whirlpool Corporation (Whirlpool), Penske Logistics (Penske) and RREEF in the Rickenbacker CRA and a 65%/7 year Jobs Creation Tax Credit for Whirlpool and Penske. The 50%/15 year Rickenbacker CRA tax incentive is contingent upon certification of the Rickenbacker Community Reinvestment Area by the Development Director of the State of Ohio Department of Development.
Whirlpool desires to consolidate two regional distribution centers and to create a new 1,560,000 square feet facility in the Rickenbacker CRA. This new Regional Distribution Center will be one of ten centers located throughout the United States. Whirlpool plans to invest a total of $162.8 million in the new facility. This investment includes $57.7 million in new construction. Whirlpool also plans to create approximately 301 full time permanent jobs with an estimated payroll of $8,772,284. Penske, one of the world's largest logistics companies, will assist Whirlpool with the creation of the 301 new jobs. RREEF will be the real property owner of the project site.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Rickenbacker Community Reinvestment Area Agreement with Whirlpool Corporation, Penske and RREEF for 50%/15 years contingent upon certification by the Director of the State of Ohio Department of Develo...
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