Explanation
Background: This legislation authorizes the Director of Development to amend the City's Enterprise Zone Agreement (EZA) with Carr Supply ("Carr"). When creating the EZA, an inadvertent error was made in listing the dates for abatement. The investment period in Section 1 correctly states that the project investment will begin in April 2005 and be complete by April 2008. Section 4 of the EZA, however, does not allow any exemption to commence after tax return year 2008 for personal property and 2006 for real property. Without amending the agreement, Carr will be unable to obtain the majority of the agreed upon tax abatement. This amendment will allow tax abatement to commence as late as 2009 and extend as late as the end of 2015 and will also clarify that the tax abatement for real property is for seven (7) years, which is the same number of years as the tax abatement for the personal property.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Enterprise Zone Agreement with Carr Supply to allow tax abatement to commence as late as 2009 and extend as late as the end of 2015 and to clarify that the tax abatement for real property is for seven (7) years.
Body
WHEREAS, the Columbus City Council approved an Enterprise Zone Agreement (EZA) with Carr on March 9, 2005, by Ordinance No. 0348-2005, and the EZA was entered into effective November 16, 2005; and
WHEREAS, the EZA provides for a 65% /7-year tax abatement on project investment, including real property improvements, new machinery & equipment, and new furniture & fixtures; and
WHEREAS, Section 1 of the EZA allows the investment period to extend to April 2008, but Section 4 of the EZA erroneously provides for personal property tax exemptions to commence not later than tax return year 2008 and extend only through tax return year 2014 and for real property exemptions to commence not later than 2006 and...
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