Explanation
BACKGROUND: The AmerisourceBergen Drug Corporation Enterprise Zone Agreement (EZA) was authorized by City Council on September 16, 2002, and was entered into effective July 14, 2003. City Council approved the first amendment to the AmerisourceBergen EZA on December 6, 2004, which added the Fifth Third Leasing Company to the EZA and allowed the personal property exemptions granted to the AmerisourceBergen Drug Corporation under the EZA to extend to personal property leased from the Fifth Third Leasing Company and/or any assignee or successor lessor subsequently identified in writing to the City's Director of Development. City Council approved the second amendment to the AmerisourceBergen EZA on November 12, 2007, which reduced the job creation requirement from 64 jobs to 19 jobs, to make a commensurate reduction in the payroll requirement for the new jobs, and to eliminate the personal property tax abatement for 2008.
The 2008 Columbus Tax Incentive Review Council (TIRC) reviewed the AmerisourceBergen Enterprise Zone project on August 19, 2008, and recommended that the City (1) amend the overall job level to 204 from the current level of 219 with 8 of those being new and 196 being retained with commensurate modification of new job payroll; and (2) should the new level of total jobs (204) not be achieved by the end of 2008 (as per their 2008 Annual Report) then the abatement will be reduced to 50% from the current 75%. This legislation will authorize amendment of the EZA to reflect the TIRC recommendation. It is anticipated that the company will be able to maintain good compliance in future years with the reduced overall job level requirement. The term of the real property tax abatement is not modified by this amendment and is expected to run through 2013.
This legislation is presented as an emergency measure in order to meet the deadline under state law for City Council to vote on TIRC recommendations.
FISCAL IMPACT: No funding is required for ...
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