Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Development to amend the existing Enterprise Zone Agreement (EZA) with Northland Associates LLC, Retail Ventures, Inc. and three of its subsidiaries, including, Value City Department Stores LLC (fka Value City Department Stores, Inc.,) Retail Ventures Services, Inc., and DSW, Inc. (fka Shonac Corporation) (collectively the "Retail Ventures Entities").
Columbus City Council approved an EZA and a Jobs Creation Tax Credit Agreement (JCTCA) by Ordinance No. 2237-2003 on October 6, 2003. The legislation authorized the Director of the Department of Development to enter into an EZA with Value City Department Stores, Inc. and Northland Associates LLC for a tax abatement of 75% for a period of ten years on real property improvements and personal property as well as a JCTCA of 60% for a period of 15 years with Value City Department Stores, Inc. in consideration of a proposed $19.5 million investment, the retention of 548 full-time jobs and the creation of 110 new full-time positions. Subsequent to the authorization by Columbus City Council, an amendment was approved on January 12, 2004 by Ordinance No. 0053-2004 to change the name of Value City Department Stores, Inc. to reflect the new parent company, Retail Ventures, Inc. and three of its subsidiaries including Value City Department Stores, Inc., Shonac Corporation and Retail Ventures Services, Inc.
Due to economic conditions, Retail Ventures Entities did not invest in personal property, nor retain 548 jobs nor create 110 jobs. Therefore, City of Columbus did not enter into a JCTCA with Retail Ventures Entities because of the lack of job creation.
However, Retail Ventures did create two jobs (making them eligible for an incentive) instead of 110 jobs they had hoped would have been created under the original deal. Under the new deal, Retail Ventures Entities has subleased the project space to the State of Ohio. The State...
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