City of Columbus - File #: 1912-2004

• File #: 1912-2004
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 10/21/2004
• In control: Jobs and Economic Development Committee
• On agenda: 11/1/2004
• Final action: 11/4/2004
• Title: To authorize the Director of the Department of Development to dissolve the Commercial Movers, Inc. Enterprise Zone Agreement and end the tax abatement one year early (the final year of exemption will be 2003 instead of 2004 -- the property will be fully taxable for 2004 and payable in 2005); and to declare an emergency.

Date	Ver.	Action By	Action	Result
11/4/2004	1	ACTING CITY CLERK	Attest
11/3/2004	1	MAYOR	Signed
11/1/2004	1	Columbus City Council	Approved	Pass
11/1/2004	1	COUNCIL PRESIDENT	Signed
10/28/2004	1	Dev Drafter	Sent to Clerk's Office for Council
10/27/2004	1	City Clerk's Office	Sent back for Clarification/Correction
10/25/2004	1	Dev Drafter	Sent for Approval
10/25/2004	1	CITY ATTORNEY	Reviewed and Approved
10/25/2004	1	Dev Drafter	Sent to Clerk's Office for Council
10/22/2004	1	DEVELOPMENT DIRECTOR	Reviewed and Approved
10/21/2004	1	Dev Drafter	Sent for Approval

Explanation

BACKGROUND: This legislation authorizes the Director of Development to dissolve the Enterprise Zone Agreement with Commercial Movers, Inc. (EZA) and end the abatement one year early. Thus, the final year of abatement will be 2003 instead of 2004. The property would be fully taxable for 2004 (payable 2005). Columbus City Council approved the EZA by Ordinance No. 1146-99, adopted May 10, 1999. The tax incentive is 50% on real property improvements for five (5) taxable years (2000-2004). As of December 2003, Commercial Movers, Inc. had constructed a 150,000 square foot facility at 1299 Boltonfield Street and completed its real property investment of $6 million. The personal property investment is somewhat short of the $1 million that had been committed. The lack of attainment is that Commercial Movers has not been able to fulfill the EZA's job commitment. The EZA states that 200 jobs would be retained and 100 would be created. As of December 2003, the total number of retained jobs was 102 and no new jobs had been created.

Commercial Movers is a successful and valued member of the business community. In recent years the company's business model shifted away from the labor-intensive segments of the commercial moving industry and towards the more profitable segments, such as interior design, space planning and professional project management services for corporate moves. This shift makes business sense for Commercial Movers but has resulted in fewer jobs than had been anticipated in 1999 when the company applied for the Enterprise Zone tax abatement.

The TIRC recommended on August 12, 2004 that the City dissolve the EZA and end the tax abatement one year early due to the lack of attainment in job retention and creation. The City concurs with the TIRC's recommendation to dissolve the EZA and end the abatement one year early, i.e., as of December 31, 2003. The City will not seek repayment of the exempted taxes from 2000-2003. ...