City of Columbus - File #: 2237-2003

• File #: 2237-2003
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 9/26/2003
• In control: Development Committee
• On agenda: 10/6/2003
• Final action: 10/8/2003
• Title: To authorize the Director of Development to enter into agreements with Value City Department Stores Inc. and Northland Associates LLC for a tax abatement of seventy-five percent (75%) for a period of 10 (ten) years on real property improvements and personal property and a jobs creation tax credit of sixty percent (60%) for a period of fifteen years with Value City Department Stores Inc. in consideration of a proposed $19.5 million investment, the retention of 548 (five-hundred forty-eight) full-time jobs and the creation of 110 (one-hundred ten) new full-time positions; and to declare an emergency.

Date	Ver.	Action By	Action	Result
10/8/2003	1	CITY CLERK	Attest
10/7/2003	1	MAYOR	Signed
10/6/2003	1	Columbus City Council	Approved	Pass
10/6/2003	1	COUNCIL PRESIDENT	Signed
10/3/2003	1	City Clerk's Office	Sent back for Clarification/Correction
10/3/2003	1	Dev Drafter	Sent to Clerk's Office for Council
9/29/2003	1	DEVELOPMENT DIRECTOR	Reviewed and Approved
9/29/2003	1	Dev Drafter	Sent for Approval
9/29/2003	1	CITY ATTORNEY	Reviewed and Approved
9/29/2003	1	Dev Drafter	Sent to Clerk's Office for Council
9/26/2003	1	Dev Drafter	Sent for Approval

Explanation

BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Value City Department Stores Inc. and Northland Associates LLC. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) requires the City to enter into a Council-approved agreement between the City and participating companies. The need also exists to enter into a Jobs Creation Tax Credit Agreement with Value City Department Stores Inc. The Ohio Tax Credit Legislation (Section 718.08 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.

Value City Department Stores Inc. and Northland Associates LLC plan to renovate a 300,000 square foot facility to accommodate relocation and expansion. The project will include an investment of $19.5 million the creation of 110 (one-hundred ten) full-time positions and the retention of 548 (five-hundred forty-eight) full-time jobs. This is the first catalyst project in the overall $150 -$200 million redevelopment effort know as NorthlandPARK.

The Department of Development recommends a 75%/10 year tax abatement on real property improvements, machinery & equipment, furniture & fixtures and a 60%/15 year Job Creation Tax Credit. This proposal is consistent with Columbus Tax Incentive Policy under Core Central City projects. The Columbus Public School District has been advised of this project.

FISCAL IMPACT: No funding is required for this legislation.


Title

To authorize the Director of Development to enter into agreements with Value City Department Stores Inc. and Northland Associates LLC for a tax abatement of seventy-five percent (75%) for a period of 10 (ten) years on real property improvements and personal property and a jobs creation tax credit of sixty percent (60%) for a period of fifteen years with Value City Department Stores Inc. in consideration of a proposed $19.5 million invest...