Explanation
BACKGROUND: The Tax Incentive Review Council (the "TIRC") recommended on August 25, 2006 to dissolve the Enterprise Zone Agreement with Hood Dialysis, LLC (the "EZA") unless the delinquent real property taxes are paid by October 31, 2006 and the job creation goal (30 jobs) is met by October 31, 2006. The City concurs with the recommendations of the TIRC that the EZA be dissolved if the above conditions are not met, except that if the facility is leased or sold the Development Director is authorized to amend the EZA if (1) the delinquent real property taxes are paid in full by October 31, 2006, and (2) the new operator or owner agrees by October 31, 2006 to be added to the EZA, and (3) the new operator or owner agrees to create, by June 30, 2007, the 30 jobs called for in the EZA.
If the EZA is dissolved, 2006 will be the final tax year for the exemptions and the City will not seek repayment of the exempted taxes from prior years.
Columbus City Council approved the EZA by Ordinance 0835-02 adopted on June 10, 2002. The tax incentive was 50% on real property improvements and personal property for five taxable years (2004-2008). Hood Dialysis agreed to invest $1,650,000 in real and personal property, to build a new facility for dialysis services at 2360 CityGate Dr., and create thirty (30) new full-time jobs with an annual payroll of approximately $1,365,800.
Hood Dialysis built the new facility, is providing dialysis services at the site and has met its investment goal in real and personal property. As of August 2006, however, Hood dialysis had created only 15 jobs (50% attainment) and in 2005 generated an annual payroll of only $542,652 (40% attainment).
The owner of Hood Dialysis died within the past year and the new owner, a family member, is attempting to either sell or lease the facility to a company that would continue to provide dialysis services at the project site.
This legislation is presented as an emergency measure...
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