Explanation
BACKGROUND: Columbus City Council (Council), by Ordinance No. 0069-2008, passed January 28, 2008, authorized the City to enter into an Enterprise Zone Agreement (the Agreement) with Capital City Group, Inc. (Enterprise) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a $2,500,000 investment in real property improvements and the retention of 147 permanent full-time jobs related to the construction of an approximately 25,146 square foot facility on parcel numbers 010-112491 and 010-233210 at 2299 Performance Parkway in Columbus, Ohio and within the City of Columbus Enterprise Zone. The Agreement was made and entered into to be effective February 29, 2008 (EZA# 023-08-04).
The 2010 Columbus Tax Incentive Review Council (TIRC) reviewed the Capital City Group, Inc. Enterprise Zone project on August 19, 2010, and recommended that the Agreement be continued and that City send Enterprise a job creation warning letter and request a meeting with Enterprise to (1) discuss the job situation, (2) discuss likely job retention goals in light of the nature of employment needs, and (3) amend the Agreement if need be to reflect revised job numbers. Both City and Enterprise have been compliant with the requests of the TIRC. This legislation seeks to authorize amendment of the Agreement to amend the job retention requirements as set forth in the Agreement to maintain a retained job level of 60 jobs with a commensurate retained payroll of $2,475,104. It is anticipated that the company will be able to maintain good compliance in future years with the revised retained job level requirement. The terms of the tax abatement are not modified by this amendment and it is expected to run through 2018.
This legislation is presented as an emergency measure in order for this amendment to be legislated prior to the end of 2010 so that this amendment to the Agreement can be reported to the necessary local and state agenci...
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