Explanation
Background:
The need exists to enter into an Enterprise Zone Agreement with Skybus Airlines, Inc., 4300 Venture 34922 LLC and 4300 Venture 6728 LLC, a Jobs Creation Tax Credit Agreement and a Jobs Growth Incentive with Skybus Airlines, Inc. Ohio Enterprise Zone law (O.R.C. Section 5709.62) and Jobs Creation Tax Credit law (O.R.C. Section 718.08) require the City to enter into a Council-approved agreement with a participating company.
Skybus Airlines, Inc. (Skybus Airlines) is a start-up airline company proposing to headquarter operations at Port Columbus International Airport. Operations are scheduled to begin in spring of 2007. The concept of Skybus Airlines was initially conceived by John Weikle and Ken Gile.
Skybus Airlines markets itself as the next generation of low-fare airlines, promising to reduce average fares by more than 50% and have the lowest price in all markets. The new airline will serve 16 top business and leisure markets in the United Sates with 62 daily departures using Airbus jets with GE engines. Skybus Airlines will utilize an all-new fuel-efficient fleet, single class seating, and approximately 150 leather seats and promote safety and reliability. Skybus Airlines has the support of the State of Ohio Department Development and the Columbus Regional Airport Authority.
The Columbus Department of Development is proposing a 10-year, 75% Enterprise Zone incentive on real property improvements and personal property under the City's Enterprise Zone Program, a 12-year, 65% Jobs Creation Tax Credit and a Jobs Growth Incentive equal to 50% of the amount of personal income tax withheld on new employees for a term of 7 years. The State of Ohio Tax Credit Authority has offered Skybus Airlines a 70%/10 year Jobs Creation Tax Credit to assist with the project.
This legislation is requested to be considered as an emergency in order to allow Skybus Airlines to begin investing and creating jobs as quickly as possible.
Fiscal Impact No fund...
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