Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement on real property improvements with Republic Airway Holdings and its lessor, 4300 East Fifth Avenue LLC. The need also exists to enter into an Enterprise Zone Agreement for a personal property incentive and a Jobs Creation Tax Credit Agreement with Republic Airway Holdings. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) and the Ohio Tax Credit Legislation O.R.C. Section 718.08 requires the City to enter into a Council-approved agreement between the City and participating companies.
Republic Airways Holdings plans to renovate an 180,000 square foot facility on parcel #010-268722-00 to accommodate future expansion. This facility is part of the redeveloped McDonnell Douglas facility. The project will include an investment of $17,075,000 in real property improvements, machinery & equipment, furniture & fixtures and new inventory. The company will also retain 277 (two hundred seventy-seven) full-time permanent jobs and the create 98 (ninety-eight) full-time permanent jobs.
The Department of Development recommends a 75%/10 year tax abatement on real property improvements, machinery & equipment, furniture & fixtures, new inventory and a 65%/10 year Jobs Creation Tax Credit. The proposal is consistent with the Columbus Tax Incentive Policy under Central City projects.
The Columbus Public School District has been advised of this project.
Emergency action is requested by City Council to facilitate hiring and construction time schedules.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with Republic Airways Holdings and its lessor, 4300 LLC, for a tax abatement of seventy five percent (75%) on real property improvements for ten (10) taxable years as well as a tax abatement of seventy five percent (75%) for ten (10) years on new personal property; to a...
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