Explanation
BACKGROUND: Columbus City Council approved an Enterprise Zone Agreement with Roxane Laboratories, Inc., renamed Boehringer Ingelheim Roxane, Inc. in April 2005, and seven of it's affiliated entities (collectively, "Roxane") on July 29, 2002 by Ord. No. 1195-02 and amended the Enterprise Zone Agreement on July 28, 2003 by Ord. No. 1915-03. The Enterprise Zone Agreement, as amended (the "EZA"), grants a 75%/10-yr abatement on real property improvements (2006-2015) and personal property (2005-2014) including new machinery & equipment, and inventory. The Roxane EZA project sites are located at 1809 Wilson Road and at 700 Manor Park Road, on the west side of Columbus.
The Tax Incentive Review Council recommended on August 24, 2006, that the City amend the EZA to eliminate the requirement for inventory investment, the exemption on inventory, and the annual reporting requirements that relate to inventory, thus easing the reporting and monitoring burden on the company and City. The reason is that the 75% exemption on inventory provided by the EZA is no longer need by Roxane because its project sites in Columbus were approved for inclusion in Foreign Trade Zone No. 138 as of November of 2005. The 100% inventory tax exemption in Foreign Trade Zone locations is a benefit the State has conferred. Moreover, the State is eliminating the personal property tax in Ohio as of tax year 2009. The City desires to follow the TIRC recommendation and to amend the EZA to remove the inventory element, which will ease the reporting and monitoring burden on Roxane and the City. The EZA will continue, without the inventory element. The real and personal property investment goals and exemptions, except for inventory, will continue unchanged, as will the job retention, creation and payroll goals.
Roxane committed to invest a total of approximately $245.5 million, including $10 million in real property improvements, $35.5 million in machinery & equipment and $200 ...
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