Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Budenheim USA Inc. The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
This legislation authorizes the Director of Development to enter into an agreement with Budenheim USA Inc. for a Jobs Creation Tax Credit of 65% for a period of 8 years in consideration of the company's investment of $3 million in leasehold improvements and personal property, which includes machinery and equipment, furniture and fixtures, and the creation of 40 new permanent full-time jobs. Budenheim is proposing to relocate its distribution center from Plainview, New York to Columbus, Ohio and enter into a 5-year lease agreement on the property located at 2219 Westbrooke Drive, Bldg M. This operation will support manufacturing, distribution, research and development. The State has approved a Jobs Creation Tax Credit of 45% for 5 years for Budenheim.
Chemische Fabrik Budenheim was founded in 1908 in Germany and is a major producer of phosphates. Budenheim USA Inc. is a subsidiary of Budenheim Germany. Budenheim developed its own process producing pure phosphoric acid, which is the basis for the production of their phosphates. This technology has made them one of the leading manufacturers of phosphates and phosphate specialties throughout the world. Budenhiem is not only in Germany, but have subsidiaries in Monterrey, Mexico, La Zaida and Valencia Spain as well as the United States. Budenheim phosphates are used in a variety of applications such as food & beverage, meat, seafood & poultry, health & nutrition and industrial.
Emergency action is necessary in order to allow Budenheim to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislati...
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