Explanation
BACKGROUND: This legislation will dissolve the City's Enterprise Zone Agreement with Superconductive Components, Inc. (the "EZA") at the company's request. The EZA, signed in October 2003, provides for a 50%/6-year abatement on personal property. Total project investment was to be $1.8 million, of which personal property comprised $1.5 million. The investment was scheduled to be completed by the end of April 2004 but delays occurred and at the end of 2004 only $810,000 had been invested. The first year of exemption was taken for the 2005 Tax Year and normally the abatement would run through the 2010 Tax Year. However, the Ohio personal property tax rates will be reduced over the next three years with the 2008 Tax Year to be the final year for the tax. The company has determined that as a result of the phase-out and elimination of the personal property tax and also due to delays in development of the project, the tax savings from the abatement would be much less than anticipated. Superconductive Components requested on August 11, 2005 that the City dissolve the EZA and several days later the City recommended this action to the Columbus Tax Incentive Review Council (TIRC). The TIRC voted on August 15, 2005 to accept the City's recommendation to dissolve the EZA.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Enterprise Zone Agreement with Superconductive Components, Inc. at the company's request, to end the tax exemptions, and to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved an Enterprise Zone Agreement with Superconductive Components, Inc. (the "EZA") by Ordinance No. 2182-2003 on September 29, 2003; and
WHEREAS, the EZA grants Superconductive Components, Inc. ("Superconductive") a 50%/6-year abatement on personal property, for a tot...
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