Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Enterprise Zone Agreement (EZA) with Coca-Cola Fountain, Inc. Columbus City Council approved the EZA by Ordinance No. 1154-96 on May 20, 1996. The Columbus Tax Incentive Review Council (TIRC) recommended on November 13, 2003 that the City amend the EZA because the company was not able to achieve the machinery and equipment investment as well as the job creation/retention goals. The City concurs with the TIRC's recommendation.
The tax incentive, which was granted in 1996, is a 50%/5 year incentive with staggered investment.
After additional review and discussions with the company, the Development Department agrees that the EZA should be amended as follows: (1) reduce the machinery and equipment investment from $37 million to $25 million; (2) extend the allowable time of investment to 12/31/05 (the machinery and equipment investment was originally to have been completed by 2001. The machinery and equipment investment made in 2003-2005 is not eligible for the incentive); (3) eliminate the requirement for creating 10 new jobs and (4) reduce the job retention requirement from 138 jobs retained to 132 jobs retained. Coca-Cola Fountain, Inc. has not met the investment requirement for machinery and equipment and job creation because of the economic slowdown experienced by many manufacturing companies and the decrease of demand for their product in the travel and tourism industry. The job retention reduction reflects retirement and attrition.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the existing Enterprise Zone Agreement (EZA) with Coca-Cola Fountain, Inc. and to reduce the requirement of machinery and equipment, extend the allowable time of investment, eliminate the requirement for job creation and reduce the job retention requirement; and to declare an em...
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