Explanation
BACKGROUND: The need exists to enter into a Job Creation Tax Credit Agreement with Midwest Motor Supply Co., dba Kimball Midwest. The Ohio Tax Credit law (Section 718.15 of the Ohio Revised Code) requires the City to enter into Council-approved agreements between the City and participating companies.
In business since 1923, Midwest Motor Supply Co. is a major force in the industrial maintenance aftermarket. The company’s product offering includes fasteners, hoses and fittings, drill bits, chemicals, electrical connectors and shop supplies.
PEDC Property Management, Inc. is proposing to expand the existing 226,000 square-foot facility, currently occupied by Midwest Motor Supply Co. as part of a lease arrangement, located at 4800 Roberts Rd., Columbus, Ohio 43228 (parcel numbers: 560-193791, 560-193792, 560-273578, and 560-273579) by approximately 163,000 square feet to meet the needs of Midwest Motor Supply Co. The Roberts Rd. location serves as Midwest Motor Supply Co.’s corporate office and largest distribution center. Additional distribution centers are located in Grand Prairie (Dallas), Texas and Reno, Nevada. The four owners of PEDC Property Management, Inc. also own Midwest Motor Supply Co.
Midwest Motor Supply Co. will retain 307 full-time permanent positions with an associated annual payroll of approximately $18,161,000 and create 60 new full-time permanent positions with an associated new annual payroll of approximately $2,248,800.
PEDC Property Management, Inc. will invest approximately $7,800,000 in real property improvements related to new building construction and Midwest Motor Supply Co. will invest approximately $775,000 related to the acquisition of machinery and equipment, furniture and fixtures, and stand-alone computers.
The Department of Development recommends a Job Creation Tax Credit equal to fifty percent (50%) of the amount of new employee’s city income tax withholdings for a term of five (5) years.
FISCAL IMPACT: No f...
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