Explanation
BACKGROUND: The City of Columbus (City) entered into a Job Creation Tax Credit Agreement (Agreement) with Whirlpool Corporation (Enterprise) and Penske Logistics (Employer) effective May 13, 2008. Columbus City Council (Council) approved the Agreement by Ordinance 1212-2007, adopted July 23, 2007, and granted a non-refundable tax credit in an amount of sixty-five percent (65%) of the new municipal income tax revenues generated by new employees at the project site for seven (7) years, to commence no later than January 1, 2009 and for a period of seven (7) consecutive taxable years in consideration of a total investment of $162.8 million and the creation of 301 permanent full-time jobs related to the construction of a new 1,560,000 square foot facility at 1912 London-Groveport Road with the actual physical address of the project site being 6241 Shook Road, Lockbourne, Ohio 43127 (Project Site).
The Agreement was subsequently authorized several times by Council by Ordinance 1868-2008, passed December 1, 2008, Ordinance 1751-2010, passed December 6, 2010, Ordinance 1350-2013, passed June 10, 2013, and Ordinance 1558-2014, passed July 14, 2014 to be amended regarding Employer and job creation issues, the results of which were the First Amendment made and entered into effective January 7, 2010 and the Second Amendment made and entered into effective October 14, 2014.
In a letter from the Enterprise dated May 6, 2015 and received by the City shortly thereafter, the City was advised that “since the agreement was executed in 2008, Whirlpool has been unable to meet the headcount requirements of this tax credit, and has therefore received no value from this incentive,” and so requests “the termination of the Job Creation Tax Credit Agreement Whirlpool Corporation currently has with the City of Columbus for our regional distribution facility in Columbus, Ohio.” This legislation is to dissolve the Agreement between the City of Columbus and Whirlpool Corporation...
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