Explanation
BACKGROUND: Columbus City Council, by Ordinance 1372-2006, passed August 2, 2006, authorized the City to enter into a Job Creation Tax Credit Agreement (the Agreement) with Action Group, Inc. (Enterprise) for sixty percent (60%) for a period of six (6) years in consideration of a $1.3 million investment in machinery and equipment and for the retention of 69 full-time permanent jobs and the creation of 25 full-time permanent jobs related to property at 411 Reynoldsburg-New Albany Road within the City of Columbus (Project). The Agreement was made and entered into to be effective March 30, 2007.
As per a letter dated June 10, 2011, Enterprise requested to withdraw from the Agreement due to low employment numbers which were below the retained jobs for the second consecutive year as per the Agreement, and Enterprise does not foresee additional job growth in the future. As the Agreement is now out of compliance and both the City and Enterprise have agreed to dissolve the Agreement.
This legislation is presented as an emergency measure.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to dissolve the Job Creation Tax Credit Agreement with Action Group, Inc.; to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved the Job Creation Tax Credit Agreement with Action Group, Inc. (Agreement) on August 2, 2006 by Ordinance 1372-06 and entered into effective March 30, 2007; and
WHEREAS, the Agreement grants Action Group, Inc a 60%/6-Year Job Creation Tax Credit; and
WHEREAS, the Agreement requires Action Group, Inc. to invest $1.3 million in real property, improvements, machinery and equipment and to retain 69 full-time permanent jobs and create 25 new full-time permanent jobs at the facility at 411 Reynoldsburg-New Albany ...
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