Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Chasm Industries. The Ohio Tax Credit Legislation (Section 718.08 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.
Chasm Industries plans to expand its business into the City of Columbus at 2626 Port Road. Chasm Industries does not currently have a location in Columbus. The project will include an investment of $3.5 million that will include $546,400 in real property improvements, $2,658,600 for machinery & equipment, $195,000 for furniture & fixtures, and $100,000 for stand-alone computers. The project also includes the relocation and retention of 21 (twenty-one) full-time permanent jobs, which will be new to Columbus, and the creation of 100 full-time permanent jobs. The anticipated annual payroll will be $3,320,240.
The Department of Development recommends a 65%/10 year Jobs Creation Tax Credit. Only jobs with an average hourly rate of $10.00 or more per hour will be eligible for the tax credit.
Emergency action is requested in order to allow Chasm Industries to make a decision on the location of the proposed project as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an agreement with Chasm Industries for a Jobs Creation Tax Credit of sixty-five percent (65%) for a period of ten (10) years; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish
the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the
purpose of granting these taxpayers job creation tax credits against their corporate f...
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