Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend an existing Enterprise Zone Agreement with AmerisourceBergen Drug Corporation (EZA) so that the company may secure the anticipated tax benefits for its personal property investment. Columbus City Council approved the EZA on September 16, 2002, by Ord. No. 1350-02. The EZA grants a 75%/10-year tax abatement on real property and new machinery & equipment and furniture & fixtures (M & E and F & F). The project committed to retain 200 jobs, create 64 jobs and invest a total of $43 million (including $19.5 million in M & E and F & F). The project's new 283,000 square foot facility at 6305 LaSalle Drive in Columbus has now been completed.
The Ohio Department of Taxation requires that leased personal property subject to abatement under an Enterprise Zone Agreement be specifically identified and the lessor included as a party to the EZA. The AmerisourceBergen EZA will be amended to clarify that personal property eligible for abatement under the EZA includes property leased from Banc of America Leasing & Capital, LLC and any assignee or successor subsequently identified in writing by AmerisourceBergen Drug Company to the Director of the Department of Development, by making the lessor and any such assignee or successor a party to the EZA, by describing the specific property that will be leased, and by requiring the tax savings received by a lessor under the EZA to be passed on to AmerisourceBergen.
Emergency action is requested to avoid delays for AmerisourceBergen in gearing up its facility to full production.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Enterprise Zone Agreement (EZA) with AmerisourceBergen Drug Corporation by clarifying that leased personal property is eligible for abatement under the EZA and by adding information to identify the leased pr...
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