Explanation
BACKGROUND: The 2008 Columbus Tax Incentive Review Council (TIRC) reviewed the Columbus Wood Products Enterprise Zone project on August 19, 2008, and recommended that the City should consider amending the Enterprise Zone Agreement (EZA) between the City and Columbus Wood Products LLC, Continental Millworks Company, LLC, 1800 Fifth Ave. Holdings, LLC, and Nacht Holdings, LLC (EZA# 023-05-06) - collectively known as "Enterprise" - to allow the full time jobs that are generated by tenants at the project site to be counted towards the full time job creation commitment set forth in the EZA.
Columbus City Council approved the EZA by Ordinance No. 1082-2005, adopted June 23, 2005. The project entailed the renovation of an 117,000 square foot facility located at 1800 East Fifth Avenue to accommodate the relocation and expansion of Columbus Wood Products, LLC and Continental Millworks, LLC. Nacht Holdings, LLC, is the employer of record for all of the retained and newly created jobs covered under the current EZA. The EZA granted a 65%/7-Year abatement on real property improvements and personal property investment with a commitment of $2.4M in for real property improvements, $70K for personal property investment, the retention of 98 full-time jobs, and the creation of 21 new permanent full-time jobs.
Enterprise has satisfied the real and personal property investment goals but due to soft market conditions is facing job retention and creation difficulties. Their job creation timeframe runs to the end of 2008 with a job creation goal at that time of 21 new permanent full-time jobs. As of December 2007, Enterprise had created 5 jobs, 6 jobs short of the interim end-of-2007 goal of 11 (45% attainment), and had retained 81 jobs, 17 jobs short of the retention goal of 98 (83% attainment), for an overall level of 86 jobs, 23 jobs short of the overall (interim) goal of 109 (79% attainment). However, as of August 2008, Enterprise reported 103 jobs at the ...
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