City of Columbus - File #: 1782-2006

• File #: 1782-2006
• Version: 2
• Type: Ordinance
• Status: Passed
• File created: 10/4/2006
• In control: Jobs and Economic Development Committee
• On agenda: 10/23/2006
• Final action: 10/25/2006
• Title: To authorize the Director of the Department of Development to amend the Enterprise Zone Agreement with COMTEX to reduce the goal for annual payroll creation to $1.35 million and to allow the jobs of subcontracted drivers and facility maintenance workers to be counted towards the job and payroll goals provided that the jobs are full-time to serve the COMTEX facility and providing that COMTEX provides the City with detailed annual information on the jobs, earnings and City income tax withheld. ; and to declare an emergency.

Date	Ver.	Action By	Action	Result
10/25/2006	2	CITY CLERK	Attest
10/24/2006	2	MAYOR	Signed
10/23/2006	2	Columbus City Council	Approved	Pass
10/23/2006	2	COUNCIL PRESIDENT PRO-TEM	Signed
10/16/2006	1	Columbus City Council	Amended to 30 day	Pass
10/5/2006	1	Dev Drafter	Sent to Clerk's Office for Council
10/5/2006	1	CITY ATTORNEY	Reviewed and Approved
10/4/2006	1	Dev Drafter	Sent for Approval
10/4/2006	1	Dev Drafter	Sent for Approval
10/4/2006	1	DEVELOPMENT DIRECTOR	Reviewed and Approved

Explanation

BACKGROUND: The Tax Incentive Review Council (the "TIRC") recommended on August 25, 2006, that the City should amend the Enterprise Zone Agreement with COMTEX to allow subcontracted drivers to count towards the Agreement's job and payroll goals if the jobs are full-time and serve the COMTEX facility exclusively and providing that COMTEX supplies the City with detailed annual information on the jobs, earnings and City income tax withheld. The TIRC also recommended that the City should meet with COMTEX to negotiate a realistic payroll goal and amend the EZA accordingly.

Columbus City Council approved the Enterprise Zone Agreement with COMTEX by Ord. No. 0464-02, adopted on April 8, 2002 and the Enterprise Zone Agreement with COMTEX was entered into effective August 14, 2002 (the "EZA"). COMTEX is also known as Central Ohio Medical Textiles. It is a joint venture of OhioHealth and Mount Carmel to provide clean linens for hospital use. COMTEX uses state-of-the-art automated equipment to efficiently collect, launder and deliver hospital textiles. COMTEX is located at 575 Harmon Avenue, in the WestEdge Business Center. The EZA grants a 75%/10-yr abatement on real property improvements and new personal property (2004-2013). COMTEX agreed to invest $6.2 million to build a new 67,700 square foot facility and $5.4 million to acquire new personal property. The company also agreed to retain 52 jobs and create new 79 jobs with an annual payroll of $2,078,492. The job creation was supposed to be attained by the end of 2005.

COMTEX has satisfied the real and personal property investment goal and has satisfied the job retention goal. As of August 2006, COMTEX had created 55 jobs, 24 jobs short of the goal (70% attainment). However, subcontractors employ approximately 10 drivers whose work serves COMTEX exclusively. In addition, several facility maintenance people are employed by a subcontractor and at least one may w...