Explanation
BACKGROUND: The Tax Incentive Review Council (the "TIRC") recommended on August 25, 2006, that the City should seek recovery of a percentage of the 2005 personal property taxes that were exempted under the Enterprise Zone Agreement with Roanoke Furniture ("the EZA"). This legislation follows the TIRC's recommendation and authorizes the Director of Development to seek recovery of the exempted taxes in proportion to the deficit in the number of jobs retained by Roanoke Furniture ("Roanoke") at the project site as of December 31, 2005. Payment will be sought through the assistance of the Franklin County Auditor and the amount paid will be distributed in the same manner as personal property tax revenue.
Columbus City Council approved the EZA with Roanoke by Ord. No. 2291-99 on October 4, 1999. Roanoke is a division of American Signature Inc., the latter being a wholly owned subsidiary of the Schottenstein Stores Corporation. The tax incentive was a 50%/5 year abatement (2001-2005) on new inventory at the project site, with 2005 as the final tax year of the abatement. The project site is at 4030 E. 5th Avenue. 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. As of December 31, 2005, Roanoke had satisfied the real and personal property investment goals. The number of jobs at the Roanoke project site fell from 110 in 2000 to 42 jobs in July of 2004. As a result of the absence of job creation and the low job retention, the TIRC recommended in 2004 that the City amend the EZA. On November 1, 2004, Columbus City Council adopted Ord. No. 1922-2004 to amend the EZA by eliminating the job creation goal and requiring Roanoke to attain at least 75% of the job retention goal by December 31, 2005 (i.e, 56 jobs) or else repay a share of the 2005 savings from the tax exemption, proportional to the deficit in the number o...
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