Explanation
BACKGROUND: This legislation authorizes the Director of Development to dissolve the Community Reinvestment Area (CRA) Agreement with United HealthCare Services, Inc. (UHC) and end the exemptions effective the end of 2004. The property would be fully taxable for 2005 (payable 2006). Columbus City Council approved the CRA Agreement by Resolution No. 109X-98, adopted July 27, 1998. The CRA Agreement provided UHC with a 70%/10-year abatement on real property improvements (2000-2009). UHC's commitment was to invest $23.8 million for the construction of a 4-story Class A office building at 9200 Worthington Road (Polaris), to retain 332 jobs and create 208 jobs by the end of 2008. As of December 2003, UHC had completed the $23.8 million investment, but job retention had fallen to 292 and no new jobs had been created. UHC has sub-let unused space in the facility and the Columbus Tax Incentive Review Council (TIRC) recommended on August 12, 2004 that UHC agree to an amendment allowing the tenant jobs and payroll to be counted towards the Agreement's job goal and to move up the deadline for job creation to December 2006. The TIRC recognized that UHC was still in compliance since the deadline for the job creation is December 2008.
Due to unexpected economic and market conditions, job growth that UHC projected in 1998 has not occurred and is not anticipated to occur. UHC has determined that it would not be feasible for the company to obtain from tenants the type of annual information on jobs and payroll the City needs for school revenue sharing and for compliance reviews. UHC has respectfully requested the City to dissolve its CRA Agreement, making 2004 the final year for abatement and without applying clawback. The property would be fully taxable in 2005 (payable in 2006). UHC is appreciative of the City's support and assistance and hopes the positive relationship continues. The City agrees with the course of action UHC has requested and wishes ...
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