Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Enterprise Zone Agreement (EZA) with Roanoke Furniture. The Roanoke project site is at 4030 E. 5th Avenue. Roanoke Furniture is a division of American Signature Inc. (part of Schottenstein Stores Corporation). Columbus City Council approved the EZA by Ord. No. 2291-99 on October 4, 1999. The tax incentive is a 50%/5 year abatement on new inventory at the project site (2001-2005). Roanoke agreed to invest $50,000 in real property improvements, $2 million in new inventory, $125,000 in other personal property, to retain 75 existing jobs and to create 20 new jobs. In December of 2003, Roanoke had exceeded its investment commitment and had retained 37 jobs, though by July 2004 the number of jobs had increased to 42. Despite low job numbers at the Roanoke project site, approximately 40 administrative and sales positions were created at the corporate home office in Columbus (1800 Moler Rd) to help serve Roanoke's business operations here and in other states. The Columbus Tax Incentive Review Council (TIRC) recommended on August 11, 2004 that the City amend the EZA because the company has not been able to achieve the job creation/retention goals at the project site. The City concurs with the TIRC's recommendation.
After additional review and discussions with the company, the Department of Development agrees that the EZA should be amended as follows: (1) eliminate the job creation (20) requirement; (2) require the retention of the 42 full-time permanent jobs that existed at the project site in July 2004 and (3) require that a minimum of 75% of the original job retention requirement be attained by the end of 2005 (i.e., a total of 56 permanent full-time jobs) or the company shall repay the amount of taxes for the number of jobs short of the retention goal that were exempted for 2005 that would have been payable had the property not been exempt fro...
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